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UK PRS Landlords Expect Tenant Demand To Increase

UK PRS Landlords Expect Tenant Demand To Increase

42% Of UK PRS Landlords Plan 2014 Rent Increases

According to the latest survey by specialist house share website, Spareroom.co.uk, 42% of UK private rented sector landlords expect to increase rental prices over the next 12 months and of those some 26% are planning to increase rents by more than 3%, which is significantly higher than inflation.

In their latest Rental Index, Spareroom revealed the average cost of a double bedroom in a shared house increased by 4.5% in the final quarter of 2013, reaching a new average of £507 (GBP) per calendar month.

Room rents in London also saw a rise in prices, with an increase of 2% over the same time frame, meaning the average cost of a double room in a shared house in the nation’s capital is now at an average cost of £676 (GBP) per calendar month.

Whilst some landlords plan to increase rental prices, 58% of Spareroom’s Rental Index respondents stated that they will not be raising rents and 5% of UK PRS landlords claimed that they intend to reduce rents during 2014. 

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Homelessness is a real threat for young families in the UK

Homelessness is a real threat for young families in the UK

An extra 1.5 million 18 to 30-year-olds are expected to apply for private rented sector (PRS) properties over the next eight years.

The influential Joseph Rowntree Foundation says that one risk is that pressures on private rental accommodation could force young families out of the sector and into homelessness. The foundation forecasts that around 310,000 more young families will be looking for private rented housing in 2020 compared with today.

In a new report, ‘Housing options and solutions for young people in 2020’, it warns that the influx of youngsters chasing a private rental home will see young families, poorer and vulnerable people finding it hardest to compete for tenancies.

As previously reported by Legal 4 Landlords News on Friday 15th June 2012, an additional 500,000 young people will be forced to stay with their parents into their thirties, taking the total number of young people still at home to 3.7 Million by 2020.

Read the full story here http://blog.legal4landlords.com/index.php/property-renting-set-to-be-way-of-life-for-young-families/

The report is just the latest in a series of similar documents warning of the growing pressures on the private rented sector as increasing numbers of people are locked out of residential property ownership.

It warns of a three-tier race to find rented accommodation, with those at the top who can afford to pay rents, a ‘squeezed middle’ group who struggle to pay, and a bottom rung of 400,000 who risk being excluded completely.

However, there is hope for the lower tiers as leading landlord services provider Legal 4 Landlords can offer Rent Guarantee Insurance to landlords and tenants providing that the applicants pass the L4L Tenant Referencing criteria.

Kathleen Kelly, programme manager at the Foundation, said: “Our badly functioning housing system will see those on the lowest incomes really struggling to compete in the competitive rental market of 2020. Renting is likely to be the only game in town and young people are facing fierce competition to secure a home in what is an already diminished supply of housing. With 400,000 vulnerable young people, including families, on the bottom rung of a three-tier private renting system, we need to avoid turning a housing crisis into a homelessness disaster.”

The Foundation wants to see more homes built, longer tenancies at affordable rents – with the incentive of tax breaks for landlords – and the expansion of local letting agencies to find suitable homes for vulnerable young people.

David Clapham, lead author of the report, added: “With 1.5 million more young people no longer able to become home owners by 2020, it’s vital we take the opportunity to make renting work better.”

There are always a number of property related studies, research and data gathering exercises going on within the UK property industry and the latest research carried out by Online bank – First Direct, (a division of HSBC bank and member of the HSBC Group), has shown that some adults in the UK regret the fact that they have not yet purchased property.

The study revealed 12% of those questioned in 2011 believe they have been living in their rented property for too long.

The same proportion of individuals stated they should have attempted to purchase a property of their own during the last 12 months, while just 4% of respondents said they wished they had not bought a residential dwelling in this time.

Bruno Genovese, Head of savings at the organisation noted January can be a great time for people to start getting their money matters in order for the coming year. “The earlier people start to plan their finances and look to the future, the better their long term financial position will be.”

However you look at the data it seems clear that the largest barrier to many people wishing to purchase property is that of available finance. First Time Buyers (FTBs) need a substantial deposit to be able to afford the purchase of a home and property investors are becoming increasingly limited in their options for finance as the banks are still edgy about lending and continue to limit the number of mortgage products property investors can have at any one time.

Savvy and educated property investors who have already negotiated a BMV purchase may have structured their property purchase by borrowing the necessary funds from a Bridging Finance specialist.

If you are looking for Bridging Finance to enable a property purchase or would like to find a mortgage broker then please follow the links

the number of empty UK properties still increasing

The Number of UK Empty Properties Continues To Rise

Despite campaigns from all quarters of the media and industry bodies, the number of empty homes in the UK increased significantly in 2011, new research has shown.

Data from the Communities and Local Government department, (CLG),the Office for National Statistics, (ONS), and Halifax’s own housing statistics database, the study revealed a 1.8% rise in empty residential dwellings.

According to the Halifax Empty Homes survey, which takes into account all private and public empty residential abodes, including those that have been vacant for under six months – leapt from the 650,127 recorded in April 2010 to 662,105 for the same period earlier this year.

Despite this trend, the study also revealed some more positive movement, with the amount of long-term empty private homes, those that have been without occupants for at least 6 months, dropping to the lowest levels since 2008.

These properties account for 44% of all empty residences, underlining the significance of the improvement.

It was shown that April 2011 that there were 292,313 examples of this kind of home, which represented a 1.1% decline on the 295,519 reported in the same four-week period 12 months earlier.

Stephen Noakes, Mortgage Director at Halifax,(a division of Bank of Scotland), said: “The findings show the considerable impact empty properties can have on the overall housing market, claiming it is therefore necessary for action to be taken to address the issue. Long-term empty homes account for about 1.6% of all private homes in England. And at a time when first-time buyers are still facing numerous obstacles to getting on the ladder, it is imperative we look further at the issue as an industry.”

The issue of empty homes that are fit for purpose remains a particular problem in a number of areas across the UK, where the proportion of void occupancy is double the national average. Even the UK’s Private Rented Sector is not unaffected. Landlords with properties requiring substantial improvements are lying empty due to the current lack of available finance.

UK property owners and landlords are reminded that they should have appropriate <a href=”http://www.legal4landlords.com/insurance-services/”>insurance</a>, in order to protect their property assets. However, that insurance may still be invalid if the property is unoccupied for a lengthy period of time (see the small print) and specialist insurance may be required.

<a href=”http://www.legal4landlords.com/”>Legal 4 Landlords</a> offer <a href=”http://www.legal4landlords.com/insurance-services/”>Un occupied BTL</a> insurance for Buy To Let Landlords with empty properties.

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