Tag Archives: guides
A rent freeze in London could seriously reduce number of properties available, study finds
Some 60% of London landlords would reduce the size of their property portfolios in the event of a rent freeze, new research has found. The report commissioned by the London Assembly Housing Committee carried out by the Cambridge Centre for Housing and Planning Research (CCHPR), surveyed amateur landlords with just a few properties as well as commercial build to rent landlords and investors. CCHPR put forward six potential scenarios of rent stabilisation, from a one off rent freeze for three years, through to linking rent rises to wage rises. The study found that the majority of landlords would continue as they are if rents could only be increased in line with inflation, although 40% of participants stated that they would sell some or all of their properties if this measure was introduced. What's more, the report claims that on the whole landlords taking part are not keen to offer longer tenancies but 52% said they would be more inclined to do so if tax incentives were available for doing so. ‘Much has been said from all sides about rent controls but the debate has been sorely lacking in facts, so it's incredibly useful to have these set out in this report,’ said Tom Copley, chair of the London Assembly Housing Committee. ‘The choice is not simply between regulating rents and not regulating rents. There is no one size fits all system of rent control, with many cities around the world adopting different models. Each system has upsides and downsides,’ he explained. ‘In terms of what would work for London we need solutions that work for the millions of Londoners, especially families, in the rental sector. For families, the prospect of having to up sticks with very little notice often means disruption to many aspects of their lives, including schooling and employment,’ he added. According to David Smith, policy director for the Residential Landlords Association, it is clear that the country will need more homes to rent, if it is to address the housing crisis. ‘This report reminds us of the dangers of rent controls which would in fact reduce supply, thereby increasing rents. Rent controls would also severely reduce standards in rented housing as investment dries up,’ he said. Continue reading
Tenant demand remains strong for UK residential landlords
Tenant demand in the UK’s private rented sector remains strong, with four in 10 landlords reporting an increase in the areas where they operate, new research shows. While one in five are uncertain about demand in the areas they own property, on average 40% of landlords have seen an increase, according to the latest monthly survey report from the National Landlords Association (NLA). The East of England saw the biggest net growth in tenant demand with a 48% increase. This was closely followed by the South West at 45% and the South East and Outer London at 41% and 40% respectively. The research also found that on average just 6% of landlords reported a decrease in tenant demand in the last three months. Landlords in the North East reported the largest net decrease in tenant demand of all the regions with a 15% decline in demand, closely followed by 12% in Wales and Yorkshire and 11% in the North West. ‘These figures demonstrate just how important the private rented sector is in housing a growing number of people. Our research indicates that 5% of landlords will sell up following the Government’s plans to remove mortgage interest relief for landlords, which could affect some 600,000 tenancies,’ said Carolyn Uphill, NLA chairman. ‘The Government’s planned changes, which will be phased over a period of years, gives landlords effected time to review their finances, but some will still be forced to sell or trade at a loss which is unsustainable and the projected impact will mean that ultimately renters will lose out as a dwindling stock drives up prices and competition for homes,’ she added. Continue reading
Scotland sees strong rise in property sales in third quarter of 2015
Residential property sales in Scotland increased by 6.5% in the third quarter of 2015 and the total value of sales by 6% compared to the same period in 2014, the latest index data shows. This is the highest volume and total value of quarterly sales in Scotland since 2009, according to the figures published by the Registers of Scotland. The highest rise in volume of sales was recorded in West Lothian, with an annual increase of 23.1% compared with the same quarter the previous year while Aberdeenshire saw a drop of 13.5%, the steepest fall. The data also shows that Edinburgh was the largest market with sales of over £805 million for the quarter, an increase of 6.2% on the previous year. But prices have dipped slightly. The average property price in the quarter was £169,397 a drop of 0.5% compared to the previous year. Semidetached properties showed an increase of 2% to £159,854 on the previous year while detached, terraces and flats saw decreases in average prices of 0.9%, 3.1% and 2.4% respectively. Overall the Scottish property market is demonstrating healthy growth and stability with good quality properties selling quickly, according to Simon Brown, partner and head of residential sales at CKD Galbraith. ‘These are very encouraging signs for the final months of year and moving into 2016. Success in the current market comes down to a number of key ingredients: sensitive pricing, demand for high quality property and effective marketing,’ he added. Michelle Grant, investment director at Grant Property, believes that the outlook for the market continues to be positive. ‘This signals growing confidence and has created a more competitive environment for buyers and investors,’ he said. ‘Glasgow and Edinburgh are proving particularly popular with most properties selling for more than the Home Report valuation, on some occasions up to 15% more. It is also not uncommon to be bidding against up to eight to 10 people for a property in sought after areas of the capital,’ he pointed out. ‘From a buy to let perspective we are experiencing 100% occupancy eight out of 12 cities in which we operate with high levels of demand from tenants. This is great news for investors looking to secure assets with long term yield prospects,’ he added. Continue reading
