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Recent Survey Discovers UK Landlords And Tenants are happy!

Recent Survey Discovers UK Landlords And Tenants are happy!

Four Out Of Five Tenants Happy
With Their Landlords

The majority of tenants living in private rental sector (PRS) rented properties have nothing but good things to say about their landlords, according to a survey conducted by Saga Home Insurance.

In a poll of UK tenants conducted by the insurance company, 77% of tenants who responded rated their landlord as either ‘good’ or ‘excellent’.

Fewer than 8% of tenants, (1 in 10) described the quality of service they received from their landlords as ‘poor’, which the insurance firm claimed to be contrary to popular stereotypes.

The survey surmised that UK landlords are largely a morally sound, ethical group of business people!

However, 56% of the tenants polled by Saga still identified room for improvement in their tenant-landlord relationships. With:

  • 23% of tenants complaining about hard-to-reach landlords
  • 21% of tenants had reservations about the quality of tradesmen used for repairs.

The insurance firm also spoke to landlords themselves about their relationships with tenants, and the biggest obstacles to a cordial co-existence with their tenants were:

  • Late rent payments cited by 37% of landlords,
  • Damage to rental property – 32%
  • Failure to provide notice when vacating rental property – 20%.

Finally, the insurance company also discovered that at least 10% of landlords, an alarming one in ten,  had not paid tenants’ deposits into one of the three the Deposit Protection Schemes currently in operation, which as well as being illegal, can result in problems when tenant eviction becomes necessary.

Saga’s head of home insurance, Sue Green, commented on the survey results, saying “In the age of housing shortages and escalating rents, landlords have been getting some bad headlines, but the research shows the extent to which this portrayal is unfair. The vast majority of landlords are conscientious and ethical, although tenants do believe more can be done which is why we have released a guide with practical tips to help them improve their ethical credentials.”

Renting Costs Outstrip Buying

Renting Costs Outstrip Buying

Another new study by mainstream mortgage lender the Halifax has revealed that renting a property now costs over £130 per month more than the monthly cost of buying a home.

Halifax’s latest research has shown that owning property was more affordable than renting in the UK Private Rental Sector (PRS) in all 12 of the UK regions.

On average, people buying property pay 18%, (£132, per month) less on average than those renting, due to rental prices increasing and the perceived fall in property prices and the rates of UK mortgage approvals having fallen.

However the revelations seem to be falling on deaf ears as demand for rental property in the PRS is at an all time high with up to 10 tenants competing for a single tenancy.

So why the demand?

Obtaining a mortgage can be difficult for many people and with lenders tightening both financial and personal criteria for lending, leaving the majority of renters unable to apply or afford a mortgage.

The average monthly costs for buyers of a typical three-bedroom house, including maintenance and repair as well as the mortgage, was £600 (GBP) in June 2012 compared with £732 (GBP) in rent payments on the same type of house.

The Halifax said “Rent payments have risen steadily over the last few years, increasing by 5% in the last 12 months, as buying costs fell by 3%. Four years ago the average cost of buying and owning was 45% – £324 – more than the average monthly rent paid”.

However, there has been a 33% drop in new buyers in four years as lenders push for ever higher deposits with £40,526 (GBP) being the average loan-to-value at roughly a quarter of the property price.

Private Rental Sector landlords are urged to act now to secure the tenant’s rental payments or prepare for the worst this year as tenant default rates have already increased by 8%, in the second quarter of 2012, and are still rising.

The number of private sector tenancies in severe rent arrears climbed by over 7,000 in the 3 months to June 2012 putting severe pressure on many landlords’ finances as well as adding to the tenants problems.

In the second quarter of this year over 100,400 tenants in England and Wales were in severe arrears, an increase of 24% compared to 2011.

Tenancies in severe arrears represented 2.6% of all tenancies in the UK private rented sector (PRS), up 0.2% on the previous quarter.

Tenant arrears are a serious issue for landlords, and private rental sector landlords need to take steps to ensure rent payments are assured.

Rent Guarantee Insurance protects landlords from defaulting tenants by ensuring that rental payments are made direct to the landlord in full.

If you are a Landlord who lets a buy to let property then there is always the risk of rent default by tenants. Even the best checks and references cannot predict a tenant falling on hard times and not being able to pay their rent, that’s where Rent Guarantee Insurance comes in.

Despite the number of severe rent arrears cases (tenants with rent arrears of more than 8 weeks) continuing to climb, the use of Rent Guarantee insurance products has already started to have an effect on the general level of tenant rent arrears with 8.9% of all rent in the private rented sector late or unpaid by the end of May, a decrease from 9.9% at the end of April 2012.

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