Tag Archives: housing
Tenants who want to buy a home are prepared to make sacrifices, new study finds
Over two thirds of tenants in the UK are saving for a deposit and are prepared to move away from family and friends so they can afford to buy a property, new research has found. The research study by online letting agent PropertyLetByUs, also shows that just under a third of tenants have given up hope of ever buying their own property. Some 46% of tenants can only afford to purchase a property if they move to a cheaper area and one in six tenants would consider taking in a lodger to help with the mortgage payments. Tenants were also asked how long they thought it would take to buy their own home and a third said within the next two years, almost 20% said within the next three years and 4% believe it will take them five years while 1.5% said that it would take them over 10 years. However, tenants do aspire to move up the rental ladder before they purchase their own home, with 51% saying that they are hoping to move into a nicer property when they can afford to. ‘Savvy tenants recognise that they may have to look further afield for properties they can afford. Many are prepared to move to areas that are some distance from their friends and families,’ said Jane Morris, the firm’s managing director. She pointed out that the latest data shows that a growing number of young people are renting for longer. According to PwC, almost 60% of 20 to 39 year-olds in England will rent their homes by 2025, while just 26% will have got on the housing ladder. This younger age group will find it increasingly difficult to buy and are likely to be older than previous generations, before they can afford their own home. ‘What is clear is that the majority of tenants still aspire to purchasing a property. But many tenants recognise that they will have to make sacrifices and compromise, so they can afford to buy a home of their own,’ said Morris. Continue reading
Amendments to tenancies bill in Scotland could hit provision of rural homes
New amendments to the Private Housing (Tenancies) Bill in Scotland have the potential to create significant problems for the provision of rural homes, it is claimed. The Bill has reached its stage two process within the Scottish Parliament with the Infrastructure and Capital Investment Committee meeting to discuss amendments that have been lodged. In total, 198 amendments had been submitted to the original draft Bill, demonstrating the depth of feeling regarding the future of the private rented sector and perhaps indicating there has been a lack of thorough consideration due to rushed timescales. However, Scottish Land and Estates said that it was particularly concerned that an amendment by Alex Johnstone MSP to allow a landlord to ask a tenant to leave in order to accommodate a new or retiring employee had been rejected. ‘The Scottish Government has stated repeatedly that the aim is for a simpler tenancy which strikes a fair balance by offering tenants more security and giving landlords robust and comprehensive grounds so they have the confidence to let without fear of not being able to recover possession under reasonable circumstances,’ said Katy Dickson, policy officer for business and property at Scottish Land and Estates. ‘The drafted legislation went some way towards this balance point but disappointingly a number of amendments which were approved will leave landlords dismayed that the new tenancy will bring the uncertainty and imbalance that they feared at the outset of the Bill,’ she explained. One of the main concerns for rural landlords is the rejection of Alex Johnstone’s amendment to allow a landlord to repossess a property in order to house a new employee or retired employee. ‘This ground would come with a full notice period and prior notification at the outset of the lease so that security was not lessened on all let property. Without this ground the ability for rural businesses to grow is restricted and landlords may well choose to move property out of the long term letting market into a holiday home or decide to leave it empty,’ Dickson explained. She said that frustration is growing at the Scottish Government’s continued lack of appreciation of the importance of this ground. ‘The Housing Minister repeatedly stated that a family should not be moved out to allow an employee to move in but has failed to recognise that an employee often comes with a family. The fact that there is similar uncontested ground for religious workers adds further confusion as why can tenants’ security be lessened for religious workers but not farm workers?’ added Dickson. She accused the Scottish Government of making a surprising U-turn by proposing an amendment to remove the initial period when they had previously stated that this provided landlords and tenants with security. ‘This was a disproportionate reaction to some campaign groups raising fears that it may be problematic for a limited number of people… Continue reading
Buy to let investors pushing up property prices in UK ahead of tax change
The UK residential property market saw a modest rise in new instructions in January but despite higher supply there is still considerable demand due to buy to let investors seeking to avoid Aprils stamp duty change. The latest residential market survey from the Royal Institution of Chartered Surveyors also says that this means that the near term pressure on prices is intensifying despite a higher level of supply. Feedback to the survey continues to suggest that the recent increase in demand is due to a rush of buy to let investors looking to buy before the 3% stamp duty surcharge comes into effect in April. Some 74% of respondents expect there will be an increase in buy to let purchase as supply picked up across UK, most notably in London where the increase has been significant with a net balance of +58% more noting an increase. Elsewhere, sales instructions across the UK were much flatter. New buyer enquiries rose for the tenth successive month in January, with the pace of growth in enquiries accelerating for a second consecutive report. As activity in the housing market gathers pace overall, agreed sales have risen over the month at the fastest pace since April 2014. The picture across the UK is mixed but most areas have seen a rise in sales since the start of the year and further increases are expected. Supply has also gathered pace in the past two months but stock remains low with 46 properties per branch from 44.5, which is still 21% down compared to a year ago. Even with an improvement in supply, the rush to acquire buy to let property is pushing prices up, with 49% more surveyors reporting prices to have risen in January. Looking ahead, house prices are projected to rise further over the next 12 months, with 72% more contributors expecting prices to increase rather than fall. In the lettings market, tenant demand increased once more, with all areas of the UK seeing a rise in interest from prospective tenants during the three months to January and at the same time, landlord instructions were broadly flat. This extends an uninterrupted run in which supply has failed to keep pace with demand stretching back to 2009. As a result, expectations point to continued rental growth in all parts of the UK both at 12 month and five year time horizons, the report says. ‘How the tax changes planned for the buy to let sector over the next few years plays out remains to be seen, but there are concerns raised in the survey that existing landlords will look to either gradually scale back on their portfolios or exit the market altogether as the more penal regime begins to bite,’ said Simon Rubinsohn, RICS chief economist. ‘Against this backdrop, it is perhaps not surprising that our key indicators point to further rent, as well as house price increases. Steve Bolton, founder of Platinum Property Partners, pointed out that those investors… Continue reading
