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Majority of UK private rented sector tenants don’t want long leases, research shows
Almost 80% of tenants in the UK want a lease that is between six months and two years, with just one in five tenants wanting longer leases of two to five years, new research has found. Over half of tenants are hoping to move up the rental ladder and rent a nicer property when they can afford to, according to the study by online letting agent PropertyLetByUs. It also found that over 60% of tenants would like to redecorate their property and over half of tenants want to change the carpets and floorcoverings a further 23% want to install decking, 18% want to add a hot water tub and 13% want to create a patio. ‘Clearly tenants don’t want long leases. For many, longer than two years does not give them the freedom and flexibility they need. They may find a job, then move on to another one, start out living with friend and then want to move in with a partner,’ said Jane Morris, the agent’s managing director. ‘However, landlords like longer leases as they get charged fees each time their agent needs to find new tenants. Our research also shows that many tenants do aspire to owning their own home and a large proportion of them want to redecorate their rental accommodation,’ she explained. But she pointed out that this can cause a major headache for landlords, with many facing redecorated properties at the end of the lease, with no prior approval secured by the tenant. The latest Tenant Deposit Scheme report shows that redecoration is a major cause of dispute, taking 32% of the share. ‘We have seen properties with walls painted in bright colours, despite landlords specifying that the décor must be a neutral and standard lettings property colours, from off-whites and beige to magnolia. One tenant decided to decorate the whole house black and white. Another tenant chose a dark burgundy for all the walls, throughout the property,’ said Morris. ‘Even when a tenant repaints in the correct or authorised colour scheme, there are still problems. We have seen instances of bad paint application, patchy walls, paint spills on carpets, curtains, fixtures and fittings, all of which the tenants will be responsible for at the end of the tenancy,’ she added. The firm says that it is vital that landlords carry our mid-term property inspections and ensure the inventory and check-in stipulates the colour and quality of the decoration. If tenants do want to decorate, they should be given colour swatches to choose from and clear instructions on what can be painted and how. Continue reading
House price growth slows in Auckland
Residential house price growth in Auckland, New Zealand, slowed in the second half of 2015 but are still higher than where they were at the same time last year. The latest data show that average price at $822,024 in February was up 1.3% on the average price for January and up 10% year on year while the median price at $738,000 was down 2.9% on January but up 7.5% on last February. ‘While prices are down from their record highs, based on past trends, prices in coming months are most likely to build modestly,’ said Peter Thompson, managing director of agents Barfoot & Thompson. ‘This trend has occurred over the past nine years where Auckland house prices have followed a cycle of falling in the first quarter of the year and then rising from autumn on. We have now had two months of trading where prices have been higher than they were in their equivalent months last year, and in the past that has meant prices have risen throughout the year,’ he explained. He added that the most significant figures in February’s data were that sales numbers stalled and new listings doubled while the number of properties sold at 698 was the lowest in any month for three years. ‘The reason was that at the start of February the number of properties on the market was at its lowest number for 20 years, and buyers had limited choice. However, as the month progressed more properties were listed, and we finished the month with 2,060 new listings, the highest number in the past six months. There are currently an extremely high number of properties in the pipeline for settlement in March and April,’ Thompson pointed out. ‘At month end, we had 3,318 properties on our books, the highest since March last year, and we anticipate an extremely busy period through autumn. Another factor that affects the average and median sales price in the early part of the year, is the summer break results in a relatively low number of sales in the $1 million plus price category,’ he added. The data shows that throughout last year, on average, some 332 properties a month were sold in the $1 million plus price category, but in February the sales in this price category was just 187. Sales of properties for under $500,000 in February made up 20.6% of all sales, whereas throughout last year they averaged 14.9% of sales. Meanwhile, the latest data from Statistics New Zealand show that building activity reached a record high in the last quarter of 2015, with an increase from the previous quarter in Auckland but a decrease in Canterbury. The total volume of building work rose 2.5% from the previous quarter, with rises of 2.8% for residential buildings and 2.3% for non-residential buildings. ‘This is the most building activity we’ve seen since the series began 26 years ago, with total activity slightly higher than the previous record,’ said Statistics New Zealand… Continue reading
£25 million made available for affordable homes in rural Scotland
Some £25 million has been made available in Scotland to fund an estimated 500 new and refurbished affordable homes in rural areas. The new Rural Housing Fund aims to increase the supply of long term affordable housing in rural areas over the next three years through grants for building of new homes and refurbishing existing buildings. The funding is split into two parts. The main fund will offer grant and loan support. There will also be a feasibility fund offering up to £10,000 grant to help developers scope out potential projects and develop robust, fully evidenced, applications for main funding. Support will be available for new build, refurbishment of empty properties and conversion of commercial and non-domestic properties for residential housing. The resulting properties will have to be offered either for sale or rental at an affordable level. The fund will be available to legally constituted bodies which may include private landowners, private developers, community development trusts and housing trusts amongst others and collaboration is encouraged between different providers. ‘Good quality, affordable housing is essential to help attract and retain people in Scotland’s remote and rural communities. We are committed to improving lives across all areas of Scotland by making sure homes are affordable, attractive, and warm,’ said Housing Minister Margaret Burgess. ‘We know building affordable housing in rural areas presents different challenges compared to urban areas which is why we are ensuring this fund is open to rural interests, including community bodies, private landlords and landowners,’ she added. The move has been widely welcomed. Derek Logie, chief executive of Rural Housing Scotland, said that it has the potential to offer a huge boost to the delivery of affordable rural housing. ‘We are particularly pleased that community organisations can apply to the fund and access feasibility support. Developing affordable rural housing has many challenges. We hope the Rural Housing Fund will help rural communities to overcome these and deliver good quality, warm and affordable housing,’ he added. Scottish Land and Estates also welcomed the move but warned that a consistent private housing policy is still required to rejuvenate the sector. ‘We are delighted that recognition has been given to the additional problems and costs that developing new housing in rural areas brings,’ said Katy Dickson, policy officer for business and property at Scottish Land and Estates. ‘Previous schemes such as Rural Homes for Rent, which we were at the forefront of developing, were pioneering in their delivery of affordable rural housing but it should be recognised that many land-based businesses are consistently delivering homes at an affordable level without the help of public money,’ she explained. ‘We now need to see consistent private housing policy. The Scottish Government is providing this fund to assist the development of rural affordable housing while also taking the Private Tenancies Bill through parliamentary process. The Bill may result in a reduced number of landlords willing to… Continue reading
