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PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

Housing Minister, Brandon Lewis

Housing Minister, Brandon Lewis

Government Housing Minister, Brandon Lewis MP (pictured right), has announced that the selective licensing of private rental sector (PRS) landlords by Local Authorities will require Government approval from 1st April 2015, if they plan to license a large geographical area within borough or city boundaries.

Local authorities have had the power to licence landlords across an entire borough since 2010, in an attempt to combat community issues, such as anti social behaviour in troublesome areas. This blanket approach has seen a sharp increase in the number of selective licensing schemes being introduced by local authorities across the UK, much to the chagrin of landlords.

The changes to local authority selective licensing powers mean that councils will now need Government approval before they are allowed to implement a selective licensing scheme that covers a large geographical area of their council borough or covers an area that contains a proportion of private rented properties, expected to be around 20% of the local private rental market.

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RLA Hit Back At Rent Control Calls

RLA Hit Back At Rent Control Calls

Rent Controls Are Not The Answer
To The UK Housing Shortage

The Residential Landlords Association (RLA) have hit back at politicians and housing and homeless pressure groups who are openly calling for rent controls in the UK’s private sector by claiming that private sector rents are falling in real terms following analysis of the official English Housing Survey (EHS).

The English Housing Survey (EHS) results are taken from a continuous survey conducted by the Department of Communities and Local Government (CLG) and show that average private sector rents increased by just £10 from £153 to £163 (GBP) per week in 2014, representing a rise of 6.5%.

In contrast, average weekly rents in the UK’s social sector increased by more, with weekly rental prices increasing 25.4%, rising by £18 from £71 to £89 (GBP).

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UK Rental Prices Have Not Grown As Much As The Media Hype Suggests

UK Rental Prices Have Not Grown As Much As The Media Hype Suggests

UK Rental Price Growth Has Slowed Down
Everywhere Except London

The hype suggesting spiralling rental prices in the UK’s private rental sector (PRS) are out of control, has been previously used by tenants and even some agents to brow beat private sector landlords into lowering the expected monthly rental prices has been exposed as a myth by the Office for National Statistics (ONS).

Apart from the ridiculous rental situation in London, where rental prices for single dwellings are getting beyond affordable, landlords across the rest of the UK are lucky if property rental prices just about keep pace with inflation.

Private rental sector rental prices are flat in monetary terms when viewed year on year even if there has been some seasonal adjustment for the Spring & Summer lettings market.

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UK Index of Private Housing Rental Prices

UK Index of Private Housing Rental Prices

Experimental Statistical Data Released For January To March 2014 For Rental Prices Paid By Tenants In UK Private Rental Sector

The office for National Statistics (ONS) have released experimental statistical data covering the change in rental prices paid by tenants in the UK’s private rental sector (PRS).

Private rental prices paid by tenants in the UK increased 1.0% in the 12 months to March 2014, unchanged from a 1.0% increase in the 12 months to February 2014.

  • In the 12 months to March 2014  rental prices in the private rental sector increased by:
    • 1.0% in England
    • 1.3% in Scotland
    • 0.6% in Wales
  • Rental prices increased in all UK regions over the year to March 2014, with rental prices increasing by the most in London reaching 1.4%

The Index of Private Housing Rental Prices (IPHRP) measures the change in price of renting property in the UK’s private rented sector and is published as a series of price indices covering UK regions.

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HMRC want to sell tax details to private sector companies

HMRC want to sell tax details to private sector companies

HMRC Want To Share Your Data With Private Companies …For A Fee, Of Course

New proposals could see HMRC sharing personal tax data with private sector companies, if the plans being considered by Her Majesties Revenue & Customs (HMRC) come to fruition.

If the proposal gets the go-ahead from the Government it would allow HMRC to lease  tax data to third party companies including private firms, researchers and even public bodies, earning them a nice amount of additional revenue.

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More Home Owners Move To Private Rental Sector

More Home Owners Move To Private Rental Sector

Many new tenants in the private rental sector are former home-owners who have opted to become tenants due to the increasing financial pressures associated with home ownership.

In fact more people are quitting home ownership to become private tenants, than are leaving the private rental sector to become home-owners.

The “Generation Rent” trend was identified by the English Housing Survey, which estimated that there were 22 Million households in England in 2011/12.

The trend underlines the fact that home ownership levels in the UK have continued to fall over recent years as the number of households in private rental sector accommodation has increased.

  • 65% of property in the UK is owned by the occupiers
  • 17% are private rental sector properties
  • 17% are social housing

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Are Landlords Sure Thay Are Not Victims Of A Rent To Rent Scam?

Are Landlords Sure Thay Are Not Victims Of A Rent To Rent Scam?

There are more worrying developments in the UK PRS, as the practice of Rent To Rent within the UK residential lettings market is causing increasing concern among industry professionals.

The practice of Rent To Rent, sees one set of individuals renting a privately owned residential property within the UK private rented sector (PRS) and then sub-letting it to another tenant for profit, as a business.

It is widely believed that many Rent To Renters are operating without the landlord’s knowledge or consent.

Professional tenants have reportedly accepted a tenancy, signed agreements of multiple properties, then they have proceeded to sublet the properties to unsuspecting third parties, unaware of the true situation.

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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 Private Rented Sector Survey by MyPropertyPowerTeam.co.uk

UK Buy To Let Landlords Want More Properties But Are Unable To Get Mortgage Finance

A new survey of Landlords in the Private Rented Sector (PRS) has discovered that only 20.2% ( 1 in 5 landlords) in the UK, were able to add fresh residential properties to their existing residential portfolio stock during 2011.

Property value growth expectations and the prospect of a regular income were the key drivers behind the property investment trend and only the lack of available mortgage finance, and/or financial know how, held back even more landlords from adding to their property portfolios.

Out of all the landlord insurance customers interviewed, 85% predicted that residential property values in the UK would remain the same for at least the next 12 months and private sector residential rents were expected to be considerably higher in 2013.

London led the way, after 87% of respondents said they believed that rents in the UK capital would continue to rise throughout 2012.

The data is from the PRS Landlord Survey carried out among subscribers by MyPropertyPowerTeam.co.uk during the last quarter (Q4) of 2011.

The data also showed that 59% of landlords have been investing for more than 5 years would hold onto their property until around the year 2025, however, the average holding period for UK PRS properties was around 15 years.

The appetite from property investors in the UK PRS for additional property assets is still extremely strong and the UK rental market is seeing demand outstrip supply as private tenants seek quality PRS accommodation. The current rental trend shows little sign of abating at present, despite all the UK Governments welfare reforms.

The UK Private Rented Sector is currently buoyed up by a growing population that is spending longer periods than ever living in rented homes, similar to the continental norm.

Landlords are making use of insurance products to protect their property assets and even Rent Guarantee insurance to ensure regular monthly rental income.

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UK property repossessions increase

UK Property Repossessions are forecast to increase 22% in 2012

UK Property Repossessions are forecast to increase 22% in 2012

Economists expect the recession and rising unemployment to squeeze the already stretched household finances of thousands of struggling families this year and are warning UK homeowners and landlords of a sharp rise in residential property repossessions.

Record low Bank of England (BoE) interest rates and lower than expected unemployment figures kept property repossessions to relatively small numbers through the worst days of the first half of the recession and they eased again as the country struggled into a tepid recovery.

However, with a double dip recession inevitably looming, workers incomes failing to cover spiralling household costs, the Government’s economic cutbacks and welfare reforms starting to bite whilst the beleaguered private sector fails to replace jobs lost in the public sector, economists are fearing the worst.

The Council of Mortgage Lenders (CML) had already forecast a 22% rise in UK property repossessions for 2012 increasing the annual property repossession figures to around 45,000.

The property repossession figures include private residential properties where mortgage payments have lapsed and Buy-To-Let properties where landlords did not have <a title=”Landlord Insurance” href=”http://www.legal4landlords.com/rent-guarantee/” target=”_blank”>Rent Guarantee Insurance</a> and have been unable to keep up with their buy-to-let mortgage repayments due to their tenants not paying the rent.

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