Tag Archives: guides
Almost a third of UK landlords have seen rent arrears in 2014, new research shows
Almost a third of landlords in the UK, approximately 500,000, say they have experienced rent arrears in the last 12 months, according to new research. The research from the National Landlords Association (NLA), shows that a typical landlord faces £1,649 of outstanding rent each, totalling £850 million worth of rent arrears across the UK. The findings also show that 22%, approximately 300,000, are worried that their tenants won’t be able to keep up rental payments over the next year. The research supports the launch of the NLA’s latest campaign called Rent, Risk Resolve which aims to highlight four of the biggest risks facing landlords and help them to minimise the impact on their lettings business. The biggest risks are named as rent arrears, rising interest rates, local landlord licensing and regulation and the introduction of rent controls. ‘All landlords will be affected by one or more of these issues to some extent somewhere down the line and it’s vital for them to keep in mind the major threats to the success of their business,’ said Carolyn Uphill, NLA chairman. Regardless of the size of a portfolio the potential impact of these risks can be devastating on both the business and personal life. As the largest landlord association in the UK, we have a duty to support and advise on how to plan ahead effectively and manage these risks,’ she explained. The first focus of the NLA’s campaign will be the risk of rent arrears. The NLA has produced a guide to support landlords to deal with the problem. Continue reading
Buyers pay premium of 21% to live within a UK National Park
The price premium for properties within a National Park in the UK has increased from 18% to 21%, new research shows. And the premium for a property within five kilometres of a National Park is 8%, according to the research by the Nationwide Building Society. Around 190,000 households are located within the boundaries of National Parks, and the research suggests that this factor alone attracts a significant price premium. Indeed, a property located within a National Park attracts a 21% price premium over an otherwise identical property. This is around £39,000 in cash terms based on the current average house price of £188,810 and the data also shows that the price premium for being within a National Park has increased slightly from 18% a year ago, when the research was last conducted. Moreover, the premium is not limited entirely to properties located within the boundaries of the National Park. There is also evidence of a ‘fringe benefit’ for properties located just outside the boundaries of National Parks. ‘National Parks are highly desirable areas in which to live thanks to the beautiful countryside. Development is also strictly controlled, with very little in the way of new housing construction, which also helps to explain why prices are relatively high,’ said Robert Gardner, Nationwide's chief economist. The South Downs has overtaken the New Forest as most expensive National Park to buy property within and this is due to stronger price growth over the last year. It is England’s newest National Park, spanning 1,624 square kilometres across Hampshire and Sussex and contains the highest number of households at around 47,000. It includes a number of towns situated in the western Weald, including Petersfield, Liss, Midhurst and Petworth. The Peak District serves the highest number of people, with around 5.9 million living within 25 kilometres of its boundary. Its central location makes it accessible from major population centres such as Derby, Sheffield and Manchester. It is also a desirable place to live and average prices within the park have increased by 11% over the past year. The Cairngorms in Scotland is the largest National Park by land area, but is located within a very sparsely populated part of Scotland. Loch Lomond and the Trossachs are closest to major cities such as Glasgow and Edinburgh, with 1.1 million people within 25 kilometres. National Parks cover 20% of the land area in Wales, the highest proportion of the home nations. The largest of these is Snowdonia, covering 2,176 square kilometres. Snowdonia remains the least expensive National Park to live within, although did see the strongest growth over the last year. Continue reading
Rents in England and Wales down for first time in eight months
Residential rents across England and Wales fell to a new average of £768 per month in November, down 0.2% month on month, the latest index shows. It is the first time in eight months that rents have fallen on a monthly basis, according to the buy to let index from the UK’s largest lettings agent networks, Your Move and Reeds Rains. However, despite the month on month fall rents are 2% higher than a year ago, or £15 higher than November 2013. Also, the East of England, the East Midlands and London have actually posted new all-time record rents. The firm says that the fall follows the usual seasonal trend as landlords keen not to have vacant property over the colder months reduce rents to attract tenants. A breakdown of the figures show that five out of 10 regions have seen lower rents in November than in October with the South East seeing rents fall by 2.1% drop, the North West down 1.2% and the North East down 0.6%. By contrast, the East Midlands has defied the overall trend, seeing rents increase by 1.7% between October and November. This monthly change is four times faster than experienced in both London and the neighbouring East of England, both of which saw rents rise 0.4% on a monthly basis. Despite monthly dips, rents in eight out of 10 regions remain higher than in November 2013, with one other region seeing no significant change. Far above the overall average, three neighbouring regions stand out on an annual basis. Rents in the East of England have grown by 6.7% since November 2013. This is followed by 5.5% in the East Midlands and 3.9% in the West Midlands. At the other end of the spectrum, rents in the South West are now 0.2% lower than in November 2013, the only region to see a fall while the North West has seen zero rental inflation over the last twelve months. The index also shows that the gross rental yield on a typical rental property in England and Wales now stands at 5.1% as of November, the same as in October 2014, but a 0.3% drop from last year, when yields in November 2013 stood at 5.4%. However, alongside this stability, total returns improved in November. Taking into account price growth and void periods between tenants, but before costs such as mortgage repayments or maintenance, total annual returns on an average rental property are 12.8% over the 12 months to November. This compares to 12.7% over the 12 months ending October 2014. In absolute terms this means the average landlord in England and Wales has seen a return, before deductions such as mortgage payments and maintenance, of £21,512 over the last twelve months. Within this figure rental income makes up £8,305 while the average capital gain amounts to £13,207. ‘Property prices have shifted to a more… Continue reading
