Tag Archives: crisis
Scottish residential tenants are generally happy with the PRS property mark
Over 35% of tenants in Scotland have lived in their current home for longer than a year with 10% living longer than three years, a new survey has found. The poll by Lettingweb, described as the largest ever undertaken in Scotland, shows that 88% of tenants believed they had been treated fairly during their current tenancy. It also found that 86% reported that there had been no increase in rent during their tenancy, with over 90% believing the frequency of rent reviews being reasonable in their experience. Almost 95% had never been asked to leave a tenancy for an unexplained or unreasonable reason but tenants are concerned by the lack of supply of properties to let with only 42% being confident of finding another suitable home if they had to. The firm says that the overall picture is in stark contrast to moves in the Scottish Parliament to control rents. It indicates that tenants welcome the flexibility of the private rented sector (PRS), whilst appreciating that they have considerable security of tenure and are generally able to stay as long as they want. That accords with a long term growth in the Scottish PRS, which has doubled in size over the past decade, with significant increases in the numbers of prospective tenants looking for affordable, high quality property to let. ‘This is a myth buster report as it destroys many preconceptions of the sector. The overwhelming picture is that rents are unlikely to rise during leases and that landlords treat their tenants well. The private rented sector can be proud of their ability to supply good property at a price tenants are willing to pay, and increases have been less than inflation for a period of over eight years,’ said Dan Cookson, head of research at Lettingweb. ‘The stand out figure for me is that only 42% of tenants are confident of finding alternative rented accommodation if they had to. That’s a consequence of limited supply, and more needs to be done to bring greater investment into the sector to meet that demand, and widen confidence that alternatives are available,’ he explained. ‘Our market reports indicate that the time taken to re-let properties at the end of each lease are very short indeed. The market is demanding an expansion of the private rented sector. Government needs to respond by creating conditions for increased supply to come forward,’ he added. According to Malcolm Warrack, chairman of Letscotland, it is a significant survey and as the Scottish Government moves towards legislating for a new type of tenancy agreement for use in the private rented sector, they must listen to the voices of tenants, who are overwhelmingly well served by landlords and letting agents. ‘The challenge must be to implement change in a way which increases the supply of rented accommodation reaching the market. Any reforms brought forward must not lead to reductions… Continue reading
Report reveals key sites in London that could realise at least 100,000 new homes
At least 100,000 homes could be built on public land in London but sites will need co-ordinated planning to maximise delivery, a new analysis suggests. London needs tens of thousands of new homes to be built every year to cope with demand for both owners and tenants as steep population growth coupled with years of undersupply of new homes means that London is bearing the brunt of the UK’s housing crisis. With the city’s population expected to surpass its previous 1939 peak of 8.9 million early next year and continue climbing to 11.3 million by 2050, the need to make full use of public sector assets is pressing, according to the report from real estate firm Savills. It reveals that the process of identifying and co-ordinating the delivery of sites is more advanced in London than in other part of the country. ‘The position of the Greater London Authority (GLA) as a major landowner as well as Mayoral powers to facilitate land assembly are key to delivering more homes. Boroughs are also becoming more proactive at managing their assets and building more homes,’ said Susan Emmett, director of residential research at Savills. The firm’s analysis of the GLA’s asset database, which includes land belonging to Transport for London (TfL), London Legacy Development Corporations (LLDC), London Fire Brigade (LFB) and the Metropolitan Police Service (MPS), has identified enough public land for at least 100,000 new homes in London. Many of these sites are operational. However, this number also includes sites for the 40,000 new homes previously earmarked by the GLA when it acquired the London property assets of the Homes and Communities Agency (HCA) worth £365 million in 2012. Of the 635 hectare portfolio inherited at that time, 85% has been developed, committed for development, or is being marketed. Since April 2012 contractual commitments have been entered into for over 145 hectares of land, with an estimated gross development value in excess of £3.6 billion. The Mayor is committed to having an exit strategy in place for all of the GLA’s current landholdings by 2016 and the process is well advanced, the report explains. The analysis of GLA sites marked for disposal showed that many of the saleable sites are grouped in lower value areas to the east of Canary Wharf. ‘Lower value, post-industrial land with poor infrastructure links can be difficult to bring forward through traditional development routes. A co-ordinated approach with the Mayor at the centre is essential to open up new neighbourhoods,’ it adds. It points out that the GLA aims to assist in the regeneration of areas by investing in infrastructure and site decontamination and better transport links and investment in the public realm are also important to encourage development, especially in new areas. ‘There are some good examples of public land already being used in regeneration schemes to bring forward more homes. One major site delivering a substantial number of homes is Barking Riverside with plans for up to… Continue reading
UK retail property market needs to take online shopping into account in 2015
A dwindling supply of well-located retail property stock in the UK will continue to drive South East and London rental growth, which will be factored into pricing by investors, according to a new analysis. Well-placed good secondary retail assets with solid demographics, will sell well and overall schemes with the broadest consumer appeal will thrive at the expense of the poorer quality ones, says the latest UK retail property market outlook 2015 report from Knight Frank. Key attributes could be the quality of tenant mix and accessibility, although the out of town market has moved steadily towards fun shopping, the report suggests. ‘As we have seen with high streets and shopping centres, the best out of town parks now provide an increased focus on a strong leisure and catering offer aimed at prolonging dwell times and boosting expenditure, the report explains. One potential cloud on the horizon, with the growth of online sales bringing store networks under ever increasing scrutiny, is the forthcoming rush of lease expiries will provide retailers with an unprecedented opportunity to reduce property costs by downsizing their portfolios. ‘This is likely to reinforce the polarisation already being seen in the market, with secondary/weaker schemes suffering at the expense of the better schemes, bringing with it greater divergence in investment performance. That said, while the rise of online shopping may result in smaller store portfolios, the growth in click and collect is helping to maintain the importance of the store,’ the report adds. Knight Frank predicts that omni channel retailing will become the dominant norm in 2015. Occupiers will need to implement in store technology advancements in order to keep the consumer engaged and enhance the customer experience. Retailers should embrace strategies in which mobile, online and in-store experiences should complement, rather than compete with, one another. The firm also predicts that the first half of 2015 is likely to be dominated by uncertainty surrounding the general election. However, retail sales will receive a boost from a buoyant labour market, lower inflation on the back of the fall in oil prices. Slower but still positive house price growth will continue to support strong consumer confidence. But the retail market continues to be driven by structural change due to the growth of online shopping and profit margins for bricks and mortar retailers will continue to be squeezed by non-store sales and an increasingly internet savvy population. The news that the Chancellor in his Autumn budget will cap the inflation linked increase in business rates to 2% and undertake a full review of the structure of business rates is welcome news to the retail sector, according to the report. ‘However, fundamental changes need to be implemented going forward especially with consumer’s increasing preference to shop and buy online rather than in store,’ it adds. Continue reading
