Tag Archives: Rent

UK’s private rental sector set to expand

The UK’s private rental sector will continue to grow because there is a shortage of affordable property leaving many people with little option but to live in rental accommodation, according to a report. The findings come from research carried out by insurance specialists Cover4LetProperty which found that 28% of adults in the UK are living in social or privately rented homes. They also found that with fewer people able to gain access to social housing, more than half of those aged over 40 will be living in a property owned by a private landlord. In addition, 57% of people aged over 60 will also be living in a private rented property. Those who earn between £10,000 and £20,000 will be the most prolific renters with two in three people in this income band having to rent. A report from housing charity Shelter also highlights that younger people have now given up hope of owning their own home because of unaffordable property prices. The insurance firm’s report also points to a study carried out by accountancy firm PwC which stated that the number of first time buyers will continue falling over the coming 10 years because they are struggling to raise […]

Landlords say they will not be increasing rents

The vast majority of landlords in the UK say they have no plans to increase rents over the next six months, according to a survey. The HomeLet Rental Index has revealed that 91% of landlords will not be charging their tenants more to rent their home. However, 34% of landlords said they would increase rents within the next year. The chief executive of Barbon Insurance which owns HomeLet, Martin Totty, said: “Our landlord clients tell us they would prefer to retain tenants for a long period rather than receive extra income. This attrition of tenants is not something that landlords want.” Rents on new tenancies being charged has fallen   The index has also revealed that 10 out of the 12 regions they analyse, the rents on new tenancies being charged has fallen slightly or remained static in the third quarter of 2015. Excluding new tenancies in London, landlords around the UK saw average new rents of £743 a month, that’s a 0.7% fall on the previous quarter. Landlords in Greater London saw the average rent falling 1% to £1,544. However, landlords in the East Midlands saw rents rise by 1.2% to £635 while landlords in Yorkshire and Humberside saw […]

Landlords increasingly looking to sell up

A new sentiment survey of landlords has revealed that a growing number of them are looking to sell their properties because of the upcoming buy to let tax relief changes. The sentiment survey from Your Move and Reeds Rains says that the tax change is a ‘major concern’ for landlords and 23% say that now is a good time to sell their rental properties. In addition, landlords also say that letting a property will be less profitable when the tax reforms take effect from April 2017. However, 31% of landlords believe that now is a good time to expand their buy to let portfolio though 44% say that buying rental properties is now more complicated. With the ‘Right to Rent’ checks coming in next year, nearly 20% of landlords said they would be daunted by the prospect and don’t feel experienced enough to let their properties without the support from a letting agent. Landlords say that the laws for rental properties have become more confusing   Another 24% of landlords say that the laws for rental properties have become more confusing and, alarmingly, 11% say they do not understand current regulations. A director of Reeds Rains and Your Move, Adrian […]

Are landlords in the UK ethical?

With so much publicity in recent months about the activities of rogue landlords around the UK, Saga Home Insurance decided to find out whether the UK’s landlords are ethical. Their findings will not come as a surprise to the majority of landlords with rental properties since most tenants (77%) said their landlord was either ‘excellent’ or ‘good’. Just 8% of tenants said their landlord was ‘poor’. The survey shows that landlords are not only ethical but reliable as well and their survey also looked into the cause of most complaints. Landlords complain about tenants for the late payment of rent, 37%, another 32% complained of property damage and 20% said they were unhappy about tenants who left without giving notice. Landlords ‘hard to reach’   When asked, tenants said that most common complaint was that landlords were hard to reach, 23%, and the use of substandard tradesman for carrying out repairs was a cause of complaint for 21% of tenants. However, Saga also reveals a worrying statistic in that one in 10 landlords apparently does not pay a tenant’s deposit into a protected scheme. The survey results have now led to the publication of a leaflet aimed at existing and […]

The most profitable areas for landlords are in…

The top 10 areas that provide landlords with the most profit in England have been revealed in a new survey. Towns in Hertfordshire and Essex dominate the list to give the best returns on property outside London. The survey has been published by property website Rightmove who say that the best area for an investor is Halstead in Essex. The website says that the average price for a property grew from £150,000 last summer to nearly £182,000 in just 12 months. Landlords also collected an average rent of around £7,830 – which means those landlords who bought a property in the town last year have enjoyed investment returns of 26.3%. Provides landlords with a rental income   Second on the list is Borehamwood in Hertfordshire which provides landlords with an average rental income of £13,691 and a growth in the property’s asking price of £56,300. Rightmove have put the figures together on all properties that have been listed for rent and sale in England and Wales but they have not made any deductions for tax and other costs. The only town in the top 10 from the North is Cottingham in East Yorkshire. The survey also reveals that the average […]

Rent arrears hit a two-year high

The number of tenants in the UK’s rental properties with severe rent arrears has reached a two year high, according to a new report. In the Tenant Arrears Tracker, which is put together by Your Move and Reeds Rains, found that there are more than 74,000 tenants who owe more than two months’ rent. The number is up 4.4% on the previous quarter and 7.2% higher than the same period last year. The figures suggest that there are now more than 5,000 households struggling with significant arrears than there were 12 months ago. However, the report also points out that while this situation appears to be serious the level of rent arrears is better than it has been historically. The worst peak of rent arrears recorded by the index   The report points to the third quarter in 2012 when there were more than 160,000 households classed as being in severe arrears. This was the worst peak of rent arrears recorded by the index. In addition, the report also highlights that the probability of a tenant falling into serious arrears is ‘extremely low’ and that the number of households in serious arrears constitutes 1.4% of all private rental tenancies. To […]

Letting agents say rent rises are falling

Letting agents from around the UK are reporting that the rate of rental increases is beginning to fall for the first time in 2015, according to research. The Association of Residential Letting Agents (ARLA) is also saying that following a surge in supply of rental property in July, accommodation has fallen to June levels. On average, ARLA members had 178 rental properties on their books in August, a fall from 189 recorded in July. Despite this fall, the number of tenants registering with letting agents rose in August, up to 36 from the 35 average recorded in July. However, just one in three letting agents said they had seen rent increases in August. Landlords had increased rents in August   Of all the regions, 40% of agents in the south-west said landlords had increased rents in August compared with just 12% of letting agents in the north-west. Letting agents in Wales said that rents have increased for 36% of them. Tenants looking for rental property London are also struggling to find suitable homes with the number available for renting continuing to fall. Of the London-based letting agents, the average number of registered properties is 110, a fall from July’s figure […]

Benefit payment delays hit landlords

Delays in housing benefit payments from local authorities have affected more than half of landlords in the private rental sector, says the National Landlords’ Association (NLA). The NLA has published the results of its research which shows that nearly 3.3 million tenants were affected by late benefit payments last year which meant around one third of them had issues paying their rent on time. The NLA’s chief executive, Richard Lambert, said: “Local authorities are not supporting tenants in need of a home while the number of landlords who are willing to have tenants who receive benefits has fallen in recent years. Landlords with tenants on benefits   “Landlords believe that the risk (of having tenants on benefits) is just too great and that’s easy to see when payment delays seem to be inherent within our benefit system.” Mr Lambert added that private landlords are also facing the added pressure with the upcoming government freeze on benefits and the ‘devastating changes’ that are being made to mortgage interest relief. The NLA’s research reveals that 27% of landlords with tenants on benefits are paid directly from a council while the remainder are paid by their tenants after they receive their money from […]

Landlords over 50 “make no profit”

An investigation has revealed that for landlords aged over 50, around 10% of them do not make any profit whatsoever from their rental property investment. The findings come from Saga Landlord Insurance who say that many landlords have gained ‘substantial’ financial awards since entering the UK’s private rental sector though another 25% said they had found being a landlord more difficult than they had anticipated. The firm interviewed more than 10,000 landlords over 55 and found that nearly 10% are making the most of their opportunity in the buy to let market. They also rated highly for their optimism of the market’s future. The survey also revealed that the average income per month for a landlord is £700 with one in 10 saying they were running at a loss or just breaking even. One third of those responding said they had entered the buy to let market since 2010 and 10% said that the job of running the business was easier than they had expected. Bought their property to rent out   One reason given by Saga for this response is that 45% of those asked said they had specifically bought their property to rent it out. Another 14% said […]

Landlords can boost rental property desirability

Research has revealed that landlords can boost their rental property’s desirability by installing a modern kitchen, according to estate agents. The survey also reveals that a back garden and off-street parking are also highly influencing factors in tenants choosing a property. The results of the survey also mirror the needs of home buyers too. When questioned, 28% of potential tenants said a modern kitchen would be attractive, while 23% said that off-street parking or a driveway would be their choice. Another 17% opted for an open plan diner/kitchen and 40% said they wanted a back garden. The survey was undertaken by OnTheMarket, a property portal, and those looking for a modern kitchen were found mainly in the South East. Tenants inspired by culinary TV shows   Estate agent Martin Flashman said: “The kitchen has always had a central role in the British home but its popularity has increased with tenants and buyers, in part, by culinary TV programmes.” He said that more people are now looking to spend quality time in their kitchen, and families now bake and cook together and enjoy being ‘foodies’. The survey also find that tenants and homebuyers wanting off-street parking was not just confined to […]