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Research suggests a third of UK tenants sublet without consent
Around a third of private rented sector tenants in the UK say they are currently subletting without the landlord’s consent and four out of 10 tenants plan to do so in the near future, new research has found. The survey from online lettings agents PropertyLetByUs, also shows that the vast majority of tenants, 96%, are subletting the property for short time to help a family member or friend out and 82% claim they are subletting to help pay the rent. Over half of tenants, 52%, say that they planning to sublet their property in the near future, with the landlord’s consent and 78% think they should be able to sublet the property without the landlord’s approval. According to Landlord Action, there is a growing number of instructions from landlords who want to start possession proceedings against tenants who have sublet, via Airbnb, without their consent. Subletting is fast becoming one of the leading grounds for a tenant eviction. According to Jane Morris, managing director of PropertyLetByUs, it is very worrying that so many tenants are subletting without telling their landlords. ‘It is imperative that landlords make regular checks on the property to check for additional occupants. Many tenants will try to hide the fact they are subletting, so the warning signs can be excessive rubbish and accelerated wear and tear,’ she said. ‘When there is multiple occupancy in a property, wear and tear and damage is dramatically accelerated. There can be increased mould and condensation with more occupants. Landlords can also face expensive repairs for damage and redecoration costs, to bring the property up to the standard it was at check-in,’ she pointed out. Morris also pointed out that illegal subletting falls under tenant fraud and renting a property makes landlords vulnerable to fraud. ‘It is vital that landlords and agents carry out thorough pre-letting checks. The purpose of referencing a tenant is threefold; to check the person is who they say they are, that they can afford the rent and that they have honoured past commitments,’ she explained. Last year, the government said it planned to make it easier for tenants to sublet a room by legislating against the use of clauses in private fixed term tenancy agreements that expressly rule out subletting, or otherwise sharing space on a short term basis. However, it has not yet set a date for a consultation on the plans. PropertyLetByUs recommends that landlords make regular checks on their property, ideally every three to six months and when doing so should look out for additional clothing and shoes, excessive rubbish for the number of registered tenants, additional bedding like sleeping bags and pillows, suitcases and rucksacks and extra toothbrushes ‘Before taking on a new tenant, make sure you carry out a thorough reference to ensure you know who your tenant is,’ added Morris. Continue reading
Property prices up modestly in UK in May but now likely to see fall due to Brexit
Residential property prices in the UK saw modest growth in May but central London experienced a fall in values, according to the latest market survey report. UK house prices are now expected to experience a short term drop for the first time since 2012, according to the monthly report from the Royal Institution of Chartered Surveyors (RICS). House prices in central London are already falling, according to the survey with 35% more property professionals reporting that prices had fallen rather than risen over the past month. While prices are continuing to climb modestly across the rest of the UK, this trend looks set to fade, with 10% more respondents predicting that prices would fall rather than rise over the coming three months. This is the first time that a fall in prices has been predicted since 2012. London and East Anglia are expected to be worst hit with 43% and 33% of respondents saying that prices will fall over the next quarter. ‘Sadly, for the many young people looking to enter the property market, it is unlikely that we are seeing the emergence of a more affordable market,’ said Simon Rubinsohn, RICS chief economist. ‘Instead, it appears to me that what we are looking at is a short term drop caused by the uncertainty resulting from the EU referendum coupled by a slowdown following the rush to get into the market ahead of the tax change on the purchase of investment properties,’ he explained. ‘Certainly, that’s the story we are hearing from our members. There is not at this point a sense that a fundamental shift is taking place in the market,’ he added. The market report also shows that buyer demand fell across the UK for the second consecutive month and at the fastest pace since 2008, with 33% more property professionals saying that demand decreased last month. The survey revealed that in the longer term, while house prices are thought likely to regain momentum, rents look set to outpace them, with UK rents predicted to increase by 4.7% year on year for the next five years, compared to house price increases of 4.1%. The number of agreed sales also fell for the second consecutive month with a net balance of 22% of respondents reporting a fall rather than a rise in activity. Continue reading
Housing market demand rises in UK, but falls in London
Demand for homes in the UK has increased by 3% since the first quarter of the year but in London it is a different picture with demand falling by 2%, the latest research shows. Overall, national demand now stands at 40% but it 39% in London but excluding London the demand has grown by 8% since the first three months of the year, according to the hot spot index from eMoov. Despite demand cooling in London the borough of Bexley remains the hottest spot in the UK for property demand at 71%, but this has fallen by 7% since the start of the year. Bristol remains the hottest spot outside of London with demand at 69%, followed by Bedford at 67%, Aylesbury and Medway both at 64%, and Ipswich, Sutton and Watford all at 61%. Both Cambridge and Milton Keynes are no longer in the top 10, replace by Northampton and Coventry at 64% and 58% respectively. While in Scotland Edinburgh is top with 54% and Glasgow at 48%. In Wales Cardiff is at 48% and Swansea 27%. In London some locations are seeing growth with Kingston Upon Thames seeing demand rise to 59% and Southwark 47%, the first and second largest increases across the UK respectively. There has also been a resurgence for property demand across the North East. Stockton-on-Tees at 47%, North Tyneside at 46%, Gateshead at 42%, Durham at 37% and Newcastle at 32% have recorded some of the biggest increases in property demand since the first quarter of 2016. The coldest spot for demand is the London borough of Westminster at 12% along with Kensington and Chelsea, with Hammersmith and Fulham at 17% and Camden at 20%. Aberdeen is also in the bottom group at 13%. ‘The changes to stamp duty tax brackets for those looking to secure a second home or buy-to-let property seem to have hit the London market harder than the rest of the UK. Despite London tending to drive the UK market as a whole, it would seem for once, it has taken a back seat whilst the rest of the UK has enjoyed upward growth on the first quarter of this year,’ said Russell Quirk, chief executive of eMoov. ‘That said national demand is still lower than the levels seen at the back end of last year and the big decider on which way it goes now will be Britain's choice to leave the European Union. There has been a lot of talk about the consequence of this vote on the UK property market with many forecasting a detrimental impact on house prices. We don't believe this to be the case and I'm certain that our third quarter index will show a further increase in property demand across the nation,’ he added. Continue reading
