News
Survey reveals gifts landlords give to tenants
Bad news stories tend to dominate the headlines when it comes to relationships between tenants and landlords in the UK but new research reveals that the relationship is often much more convivial. Indeed, some 34% of landlords have given a welcome or farewell gift to a tenant and 30% of tenants have received an act of kindness, according to a survey from tenant insurance provider Endsleigh. It shows 54% of tenants received help with DIY and 29% a bottle of wine as a result 72% of tenants said such acts positively changed their perception of their landlord. A positive relationship seems to have an impact on the length of tenancy too with 70% of tenants who receive an act of kindness staying in their property for 24 months or more, compared to just 53% who didn’t receive an act of kindness. Landlords were most likely to give a gift of a bottle of wine with the survey finding that 59% did so, followed by 49% giving cards and 25% plants and flowers. However, qualitative data shows landlords have given everything from Christmas hampers, home grown vegetables and gifts for children through to rent free months during periods of unemployment and topped up gas and electricity meters. The survey also investigated what the ideal relationship should be between the two parties. Half of the landlords surveyed said a professional relationship with a tenant is preferable and 49% of tenants agreed. More than a third, 36%, of tenants wanted a friendly relationship with their landlord compared with just 21% of landlords. However, of the landlords and tenants that answered ‘other’ to this question, many said they would prefer both a professional and friendly relationship. ‘The easiest and most stress free lettings come when there’s a good working relationship between the landlord and the tenant. Our survey results show it’s important to remain professional as a landlord, but also that tenants appreciate help getting settled into a property,’ said Endsleigh's lettings and landlords manager Marcus Latchford. ‘Providing a welcome hamper when a new tenant moves into a property will go a long way to setting the relationship off on a good foot. However, the thoughtful, practical gifts and gestures like offering to hang pictures on the wall or letting the tenant select flooring when redecorating add the most value,’ he added. The survey is part of Endsleigh’s 2015 ‘Better Relations’ campaign, which aims to encourage stress free lettings for both tenants and landlords. Continue reading
Gap between residential rents and income widens in the US
The gap between rental costs and household income is widening to unsustainable levels in many parts of the United States and the situation could worsen unless new home construction meaningfully rises, it is claimed. According to new research by the National Association of Realtors which reviewed data on income growth, housing costs and changes in the share of renter and owner occupied households over the past five years, renters are being squeezed in many metro areas. This is due to the disproportionate growth in rental costs to incomes and New York, Seattle and San Jose, California, are among the cities where combined rent growth is far exceeding wages. Lawrence Yun, NAR chief economist, said that the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become home owners. ‘In the past five years, a typical rent rose 15% while the income of renters grew by only 11%. The gap has worsened in many areas as rents continue to climb and the accelerated pace of hiring has yet to give workers a meaningful bump in pay,’ he explained. He also pointed out that the share of renter households has been increasing and home ownership is falling. Those financially able to buy a home in recent years were insulated from rising housing costs since most take out 30 year fixed rate mortgages with established monthly payments. Furthermore, a typical home owners’ net worth climbs because of upticks in home values and declining mortgage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year. ‘Meanwhile, current renters seeking relief and looking to buy are facing the same dilemma: home prices3 are rising much faster than their incomes. With rents taking up a larger chunk of household incomes, it’s difficult for first time buyers, especially in high cost areas, to save for an adequate down payment,’ added Yun. NAR’s research analysed changes in the share of renters and home owners, mortgage payments, median home prices, median household income for renters and the rental costs in 70 metro areas. The top markets where renters have seen the highest increase in rents since 2009 are New York with growth of 50.7%, Seattle up 32.38%, San Jose up 25.6%, Denver up 24.14% and St. Louis up 22.26%. Looking ahead, Yun says a way to relieve housing costs is to increase the supply of new home construction, particularly to entry level buyers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers. Yun estimates housing starts need to rise to 1.5 million, which is the historical average, yet housing starts have averaged about 766,000 per year over the past seven years. ‘Many of the metro areas that have experienced the highest rent increases are popular to millennials because… Continue reading
Demand for property in City of London pushes up home prices
The City of London and its surrounds are now firmly part of the prime central London residential property market as increased job creation, coupled with strong buyer demand, has underpinned property price growth. In fact, a number of economic and cultural factors have transformed the areas surrounding the City of London into some of the capital’s most active prime residential areas, according to a new report from real estate firm Knight Frank. Its latest analysis shows that transaction levels in the area, which runs from Farringdon in the West to Whitechapel in the east, were 19% higher in 2014 compared to 2012, and 42% higher than in 2011. ‘Growing demand has underpinned price growth, which has outperformed prime central London over the last three years and demand for housing has also been spurred by the relative value that is on offer, in terms of price per square foot, compared to the more traditional prime areas,’ said Oliver Knight of the firm’s residential research team. The report points out that the area benefits from existing high quality property stock including Georgian terraces as well as period commercial buildings, some of which have already lent themselves to conversion into large scale, open plan residential buildings not dissimilar to Tribeca in New York. The northern central quarter encompasses City Road, Old Street and Shoreditch and to the south it runs through the City of London as far as Tower Bridge and the outskirts of Midtown. The area boasts a wide cultural offering which includes Smithfield Market, Columbia Road Flower Market, Whitechapel Art Gallery and Brick Lane. Proximity to these, as well as a host of other landmarks, has helped contribute to rising demand from buyers for property in the area. In addition, the report points out that the evolution of new commercial areas has bought many thousands of new workers to the area, acting as a further boost to demand. This has tempted developers to tap into a need for supply of new residential space. ‘The activity in the area, in economic terms as well as development, is also helping to feed the demand for property. The fact that the City and its surrounding areas will be served by three Crossrail stations at Farringdon, Liverpool Street and Whitechapel, with extra station entrances at Barbican and Moorgate, is only likely to add to its appeal to both commercial and residential occupiers,’ explained Knight. ‘We expect that the mix of development, job creation and regeneration in the area means that its draw to homebuyers and investors is likely to continue to grow in the coming years. Further improvements to infrastructure and continued re-generation of the area will result in new amenities being delivered, as well as improvements to the public realm. This is likely to increase buyer demand for residential property in the area and could underpin future price rises,’ he said. The report also explains that transport is a key factor as it not only strengthens… Continue reading
