Tag Archives: london
UK residential landlords see lowest void periods for 13 years
The average annual void period for residential landlords in the UK has dropped to its lowest level since 2002, new research shows. Indeed, the average void period, which is the length of time between rental property tenancies, reported in the first quarter of 2015 was just 2.4 weeks, the lowest since the Paragon Mortgages survey began. In the last quarter of 2014 the average void period was 2.6 weeks, and comparing the first quarter of this year against the first quarter 2014, the length of time a landlord has experienced a void has fallen by 14% from 2.8 weeks. Landlords have been reporting low or falling void periods since 2013, with only a slight fluctuation in the middle 2013 when the average climbed marginally to three weeks. ‘Void periods have been consistently low for some time, which is not unexpected when you also look at what landlords are telling us about the level of demand from tenants,’ said John Heron, director of mortgages at the specialist buy to let mortgage lender. The survey also found that in the first quarter of 2015 some 42% of landlords said in their view tenant demand was either growing or booming and 54% felt demand was stable. ‘The housing market is currently experiencing a shift, with more people choosing to live in the private rented sector. This is supported by the figures released this month by the English Housing Survey which show 4.4 million households are now privately rented, compared with 3.9 million households in the social rented sector. This change in housing dynamics appears to be a continuing and long term trend,’ added Heron. Continue reading
New accreditation standard for London lettings hailed a success
More than 115,000 rented homes across London are now badged under the Mayor's Rental Standard accreditation system launched last year to improve the experience of landlords and tenants. Less than a year since its launch in May 2014, the London Rental Standard is going from strength to strength with 307 letting agent firms signed up and eight accrediting bodies licensed under the scheme. It has been adopted by 10 of the biggest names in the lettings industry, including Spicerhaart, Andrews, CBRE, Chestertons, Douglas and Gordon, Savills, Knight Frank, Leaders, Foxtons and Stirling Ackroyd. Londoners either letting or renting through every London branch of these firms are assured that they, and every landlord or agent displaying the London Rental Standard badge, have met the Mayor's set of core commitments and training levels to offer tenants a better, more professional service. These include transparent fees, better property conditions, better communications between landlords and tenants, improved response times and repairs, and protected deposits. Some 30% of London's households now live in rented homes, and by the middle of the 2020s the number of renters is predicted to overtake the number of home owners in the capital. In the last 10 years the number of families with children renting in London has risen 10% to almost a third yet 85% of landlords are not aware of core legislation that protects renters and 61% have no professional management training. The London Rental Standard is fast becoming an important feature of London's lettings industry, helping Londoners to pick between the huge array of landlords and agents on offer in the capital. It helps landlords and agents to understand their responsibilities to their tenants and to equip them with the knowledge they need to protect themselves from mistakes which can incur hefty costs and leave tenants disgruntled. The standard is one of a raft of measures the Mayor Boris Johnson has supported to improve the experience of London's two million private rented sector tenants. This includes successfully lobbying for legal changes to make it compulsory for letting agents to join an independent consumer complaints scheme to help protect tenants and landlords, and banning retaliatory evictions. He has also created a search engine where Londoners can compare average market rents, secured significant sums from the Government to help provide greater enforcement against criminal landlords including those who rent out beds in sheds, and pioneering thousands of new high quality, purpose built homes to rent with large scale schemes on public land in Elephant and Castle and the Stratford, supported by long term institutional investment. The Mayor is also helping renters who want to buy through his First Steps scheme, with more than 46,000 Londoners already supported to buy their home through shared ownership and other products. The Mayor is now calling on all remaining letting agents and landlords to sign up to the London Rental Standard, and help to stamp out rogue agents or landlords in every corner of… Continue reading
UK house price optimism rebounds, latest index suggests
House price optimism in the UK rebounded in February as inflation continued to fall and the expectation of an interest rate rise receded further. According to the Halifax Housing Market Confidence Tracker report last month saw a rallying of house price optimism among consumers, from an 18 month low of +52 at the start of the year to +60 in February. It was +62 December 2014. This optimism is reflected in the outlook for both buyers and sellers, with buying sentiment up to its highest level since the Confidence Tracker launched in 2011 at net +35. At the same time selling sentiment has reached an all-time high and now stands at +27. However, this still this doesn’t tell the whole story as the underlying picture is a cautious one, with 57% predicting flat or modest house price increases of less than 5% at best over the next 12 months. And despite inflation falling to 0% in February and various MPC members saying the next interest rate move is as likely to be down as it is up, 43% of consumers believe mortgage interest rates will be higher than they are now in a year’s time. ‘With inflation now at its lowest level since records began and the chances of the next interest rates change reportedly just as likely to be down as up, consumers are feeling more optimistic about the housing market again,’ said Craig McKinlay, mortgages director at the Halifax. ‘The traditional slow start to the year for the housing market has already begun to give way to increased activity, but consumers remain relatively cautious. For sustainable long term growth we need a period of stable growth and a more comprehensive house building programme,’ he added. Continue reading
