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Political Parties Focus On Housing To Win Election

Political Parties Focus On Housing To Win Election

Political Housing Policies Could Have A
Major Impact On Landlords

The May 2015 General Election could have a major impact on the UK’s private rental sector (PRS), with each political party promising something different for the reform of the UK housing market and the private rental sector.

Each political party has their own propaganda to attempt to influence voter sentiment ahead of the May 2015 General Election, but do they really have landlord and tenant interests at heart?

All political campaigning promises something different for home owners and landlords with some political parties focussing on real issues that could make a difference whilst others continue to apportion blame and responsibility on to local authorities and private rented sector landlords.

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Portfolio Buy-To-Let Landlords Are A Minority

Portfolio Buy-To-Let Landlords Are A Minority

Only 6% Of UK Buy-To-Let Landlords Own More
Than One Rental Property

New data from the latest Countrywide Residential Lettings Index shows that portfolio landlords with multiple rental properties are the minority of the UK’s private rental sector.

According to the research data, the average the size of a UK landlords’ buy-to-let portfolio tends to be small, with only 6% owning more than a single rental unit, however in London this figure reduces to just 4%.

Countrywide also report that 56% of private rented sector landlords own at least 1 rental property within 10 miles of their own residential properties.

When the data is expanded to account for buy-to-let landlords who live within 25 miles of their rental properties, the North East recorded 83%, followed by 81% in the North West and 71% in East Midlands. Landlords who live within 25 miles of their rental properties in London average just 60%.

London has the highest proportion of landlords who live more than 100 miles away from their rental properties, with over 20% of UK PRS landlords doing so, twice the UK average.

Wales and the East of England are more rural than other regions of the UK with less dense population clusters, so many landlords purchase properties in busier areas and choose to live within a commutable distances in order to keep an eye on their rental assets. The proportion of landlords living between 10 and 25 miles away in Wales and the East of England is the largest in the UK.

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Good news for landlords

Good news for landlords

There is a lot of Good News For Landlords Around As PRS rents Increase, Tenancies Last Longer And Demand Remains Strong

Good news for landlords as monthly PRS rents have increased by 1.1% year on year to average £845 (GBP) per calendar month (pcm). Scotland has witnessed the greatest rental price increase at 6.7% compared with the first quarter of 2013.

There has also been an increase in the number of older private rented sector tenants according to the latest quarterly index published by Countrywide lettings agency, who noted a 6% annual growth in the number of tenants over the age of 50 renting property in the UK private rented sector (PRS). The lettings agency also report that there has been a 7% annual decline in the number of tenants aged under 25 in the second quarter of 2013.

Buy-To-Let yields are strengthening across the UK, with the average yields being recorded in 3 regions:

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Rental Yields Drop As UK Residential Property Prices Rise

Rental Yields Drop As UK Residential Property Prices Rise

Property Price Increases Wipe Out Landlord Rental Yields

Residential property prices are rising so fast that they are outstripping rental price increases and some private sector landlords’ rental yields are suffering.

Landlord rental yields in the UK private rented sector (PRS) have fallen almost everywhere in the UK, and any rise in the rental prices are being outpaced by rising residential property prices.

Countrywide have said that in May 2013, rental yields declined everywhere in the UK except in the East of England (up 0.2% to 6.2%) and Scotland (up 0.1% to 5.8)

Rental yields in the South-West and the Midlands remained the same at 5.7% and 6.5% respectively. The greatest rental yields in the UK PRS are being achieved by landlords who own rental properties in Wales (6.6%), the Midlands (6.5%) and the North (6.4%).

Average monthly rents on two- and three-bedroom properties in the UK private rented sector increased up by 0.5% and 0.3% in May to £770 (GBP)and £884 (GBP) respectively, but rental prices for one-bed properties fell by 0.6% to £674 (GBP) and rents on four-bed properties were also down by 2.1% to £1,363 (GBP).

Wales had the greatest increase in average monthly rental prices, up 4.9% on April 2013, followed by Scotland (up 2.2%), the North (up 1%) and South-West (up 0.5%).

Despite some regional increases, the average monthly rental price in England, Scotland and Wales fell by 0.2% in May 2013, but rents are still 0.8% higher when viewed year-on-year.

The Midlands has seen the greatest decrease in average monthly rents, down 1.4% month-on-month, followed by the South-East and central London, both down 1.3%. Scotland has the lowest average monthly rent at £617 (GBP) per calendar month (pcm) and central London the highest at £2,340 (GBP) pcm.

Countrywide have taken their data from over 5,000 rental properties in the UK.

Nick Dunning, Commercial director at Countrywide said: “Despite the decrease in yields in May, rental yields remain strong and are providing attractive returns for buy-to-let property investors compared to other types of investment.”

Smaller Buy-To-Let Properties Provide The Best Rental Yields

Smaller Buy-To-Let Properties Provide The Best Rental Yields

Smaller Buy-To-Let Properties Provide

 The Best Rental Yields

A one-bedroomed rental property in Wales may not sound like the most glamourous of property investments but it could deliver the best rental returns for landlords according to a new in-depth buy-to-let report by the UK’s largest lettings agency Countrywide.

A survey of more than 50,000 Private rented sector property owners has revealed Buy-to-let landlords are getting excellent rental yields in Wales, the North of England and the Midlands from 1 and 2 bedroom rental properties.

Landlords in many parts of Wales are achieving an average 6.7% rental yield (rent measured as a percentage of the property price), beating the North of England and the Midlands, which both average a 6.5% rental yield.

These figures are substantially higher than the average 4.6% rental yield observed in parts of Central London, regarded as the red hot heart of the UK’s property market.

One and two-bedroom rental properties have seen the greatest increase in average monthly rental prices in April 2013, with a 1.4% and 1.3% month-on-month increase to £679 (GBP) and £766 (GBP), respectively.

The detailed report into buy-to-let rental returns was conducted by Countrywide, who found that average monthly rental prices in England, Scotland and Wales have continued to increase for six consecutive months to reach an average of £842 (GBP) in April 2013.

But rent increases remain below the increased cost of living, with an annual average increase of just 0.8% measured against Consumer Price Index inflation of 2.8%.

However, average monthly rents have fallen within Central London, the South East, Wales and parts of Greater London.

The biggest rental price drop of 6.3% was seen in Central London, where average monthly PRS rental prices average £2,371 (GBP), more than double the £1,106 (GBP) recorded in parts of Greater London.

Rental returns by location

 

Rental returns by location - Source: Countrywide

Rental returns by location – Source: Countrywide

 

Nick Dunning, from Countrywide, said: “With renting for longer now the norm for many people as they save for a deposit to buy their first home, we are seeing more young families looking to rent cheaper accommodation, hence the increase in demand for smaller rental properties. While prime Central London has seen the greatest fall at 6.3%, this is simply reflecting the fact that in April stock levels in prime Central London were very high compared to last year which benefited from the Olympics. As a result this April, tenants tended to view multiple properties putting in lower offers, which some landlords accepted. However, as demand picks up into the summer, and supply and demand becomes more balanced, the same property could easily rent for more in August than in April.”

Returns by property type

 

Rental returns by property type - Source: Countrywide

Rental returns by property type – Source: Countrywide

 

Source: Countrywide

Countrywide’s Quarterly Lettings Index Results

Survey Reveals Favourable Rental Market For UK Landlords

Survey Reveals Favourable Rental Market For UK Landlords

Results from the latest Countrywide Quarterly Lettings Index has revealed a favourable UK lettings market for buy to let landlords.

Countrywide’s Quarterly Lettings Index analyses rental prices, rent arrears and gross rental yields in the UK private rented sector and is the UK’s largest national lettings index based on over 50,000 properties across England, Scotland and Wales and the latest survey has uncovered a number of interesting statistics:

  • Average monthly rents in Inner London are the highest in the UK and four times more than in Scotland
  • Scotland has the cheapest rental accommodation in the UK and is the only region where arrears have increased
  • Average monthly rents increased the most in Wales and the East of England at 5.5%, followed by Outer London at 5.4%
  • Average UK rental yields of 6.2%, with Wales topping list at 6.7%
  • Rising rents, falling arrears and fast letting times provide perfect recipe for buy-to-let investors
  • Average rents have risen and rental payment arrears have fallen in Q1 2013 compared to the prior year.

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275,000 new tenants flooded the UK Private Rental Sector in 2011 – a 24% increase on the previous year.

275,000 new tenants flooded the UK Private Rented Sector in 2011

Latest Government Figures Confirm What savvy UK Property Investors & Landlords already knew

Latest Government figures confirm the steady decline of UK Home ownership and the social rented sector, (Council Houses), together with the indisputable rise of the Private Rented Sector (PRS) following the credit crunch.

The figures confirm what property investors who have been expanding their rental property portfolios already know, Buy-To-Let in the UK is BOOMING!

The new 2010-2011 English Housing Survey shows that in that period;

  • 66% of households (14.5 Million) were owner occupiers, down 1% from the previous year, continuing the downward trend observed since 2007.
  • The social rented sector last year accounted for 17.5% (3.8 Million households)
  • The private rented sector accounted for 16.5% (3.6 Million households).
  • Thirty years ago, there were over 3 Million more tenants in the social housing sector than in the private rented sector.

Now the gap is just 200,000.

Last year, a total of 394,000 new households were formed in England

  • 68% were private tenants forming 268,000 of the new households
  • 14% were owner occupiers (55,000 households)
  • 18% were social renters (71,000 households).

One key difference is that couples with no dependent children were the most common type of household in 2010-11 with 35% in the owner occupied and 43% in the private rental sector.

However, the most common type of household in the social rented sector was a single person aged 60 or over (24%).

17% of tenants in the social sector, were lone parents with dependent children, compared to 12% of tenants in the private rented sector with the same status. The figures compared to just 3% of owner occupiers.

In 2011, private sector rent was around twice that of social rents (an average weekly £160 compared to £79).
In the same period, 63% of social renters and 25% or private tenants received Local Housing Allowance (LHA) or Housing Benefit.

Another key difference is in length of tenure: 54% of private tenants had been in their home for under two years, whilst 59% of owner occupiers and 43% of social tenants had been in their home for ten years or longer.

Chief Executive of Countrywide, Grenville Turner, said of the survey: “Successive governments have widely encouraged home ownership but the impact of the recession has led to a structural change in the property market. The impact of this has caused an additional 275,000 new tenants to flood the private rental sector in 2011 – a 24% increase on the previous year. Current demand levels indicate that there will soon be more people in the private rental sector than social housing, which will only add to the already saturated demand and supply imbalance in the market.”

BTL landlords can cash in on the current rental property boom by utilising the wide range of landlord and letting agent services offered by Legal4Landlords.com to ensure thorough tenant vetting and cashflow, including Tenant Referencing, Landlord Insurance, Rent Guarantee Insurance as well as Debt / Rent Recovery and Eviction services.The full report contains information about overcrowding, occupancy patterns, energy use and decent homes and can be found at the link below.

http://www.communities.gov.uk/publications/corporate/statistics/ehs201011headlinereport

UK tenants competing with at least 5 others for property

Competition for UK rental properties is fierce

Demand for UK Rental Property continues to soar, with lettings agreed within a record low of 12.7 days and up to 5 tenants competing for each private sector (PRS) rental property.

Since the beginning of 2011 there has been a significant increase in tenant demand for private rented sector property. UK residents are adopting the European style of living choosing to rent rather than buy and this trend looks set to continue.

Even with a slight seasonal fluctuation, demand for residential rental property has risen rapidly throughout the year.

Tenant demand has increased by 10.8% in the 3rd quarter of this year, compared with the same period last year, and is also up by 11.9% from the 2nd quarter of this year.

The data comes from the Countrywide group’s quarterly research into the private rental sector, who also found that the volume of property viewings increased by 17.8% compared to the previous quarter, an annual increase of 8.2%.

Demand from investors is also strong, with an increase in the first-time investor category.

In the 3rd quarter of this year, 23.5% of all landlords were investing in property for the first time, compared to 18.7% in January 2011.

Many people see renting property as a realistic alternative to home ownership, either because they are unable to get a mortgage or are waiting for further house valuation falls or they are attracted to the flexibility that renting offers.

First time investors mean inexperienced landlords and rather than taking a chance based on applicant numbers, they should obtain a comprehensive tenant reference for all applicants and make sound decisions about their future tenants based on factual evidence.

In addition to Tenant Referencing Legal 4 Landlords offer a wide range of services for all landlords including insurance and debt / rent recovery and tenant eviction.

There Will Never Be A Better Time To Invest In Property

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