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Landlords get most stressed about late rent payments, survey shows
Late rent payments cause the most stress for buy to let landlords in the UK followed by badly behaved tenants, new research has found. A quarter of landlords emerged as the top cause of concern with ‘tenants from hell’ cited by 20%, property damage at 18%, deposit disputes 13% and dealing with evictions 7%. The research by online letting agent PropertyLetByUs also found that despite the recent HMRC crackdown on landlords’ undeclared income, only a tiny percentage, 1%, are stressed by tax issues. It also appears that the sharp rise in the number of tenants looking for rented property in 2014 is making life a lot easier for landlords who are looking for new tenants as only 1% say this is stressful. However, void periods are still bothering some landlords, with 4% citing this as a major cause of stress. ‘On the whole, 2014 was a good year for landlords, with increased tenant demand, rising rental income and asset value growth but late payment of rent is still a big issue for landlords,’ said Jane Morris, managing director of PropertyLetByUs. Indeed, the latest research from the National Landlords Association (NLA) showed that 32% experiencing rent arrears in 2014. Landlords could see a spike in the problem this month as households struggle to keep up with payments after the expense of Christmas. ‘But all the signs are showing that 2015 could be another bumper year for landlords, with the rental market set to continue its growth, from the current nine million tenants renting in the UK. The good news is that the stress of void periods and finding new tenants will further diminish, as demand starts to outstrip supply,’ added Morris. Continue reading
UK housing price growth slowed at end of 2014, index data confirms
House prices in the UK in the last three months of 2014 were 0.3% higher than in the previous quarter and are expected to increase by up to 5% in 2015, according to the latest index report. A monthly rise of 0.9% took the average price of a home to £188,858, the data from the Halifax shows. However, growth is clearly slowing. The quarterly rate of increase declined for the fifth consecutive month and was the lowest since November 2012 when it was 0.3%. Prices in the three months to December were 7.8% higher than in the same three months a year earlier and based on this annual house price growth has fallen from a peak of 10.2% in July and is now at its lowest rate since January 2014 when it was 7.3%. The Halifax expects a further moderation in house price growth over the coming year. House prices nationally are predicted to increase in a range of 3% to 5% in 2015. The index points out that home sales at 98,490 in November were below 100,000 for the first time since November 2013.Overall, sales in the three months to November were 1% lower than in the previous three months. Despite this recent modest decline, sales during September to November were 5% higher than in the same period last year. ‘The deterioration in housing affordability as a result of rising house prices, earnings growth that has been consistently below consumer price inflation until very recently and speculation of an interest rate rise, have combined to temper housing demand since the summer. The weakening in housing demand has led to a reduction in both price growth and sales in recent months,’ said Halifax housing economist Martin Ellis. ‘We expect a further moderation in house price growth over the coming year with prices nationally predicted to increase in a range of 3 to 5% in 2015. Housing demand, however, should continue to be supported by a growing economy, rising employment levels, still low mortgage rates and the first gain in real earnings for several years,’ he added. Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), said that the falling rate of house price increases at the end of 2014 might suggest greater market stability. 'But this should not disguise the need for ground breaking action on housing policy in the upcoming election. Declining affordability has tempered demand and the housing market in its present state is still a long way from supporting the nation’s home owning ambitions,' he pointed out. 'Housing policy is in need of fundamental reform rather than short term voter appeasement that has brought a host of temporary measures and tinkering at the edges without a long term plan. Successive governments have failed to address changing housing needs and left us on a downwards trajectory that will see owner occupation drop to 59% by 2020 if current trends continue,' he explained. … Continue reading
New UK stamp duty rates subdue sentiment in high value home markets
Prime London house prices rose by an average of 2.6% in 2014, but for the first time since the credit crunch the UK’s prime regional markets marginally outperformed the capital with growth averaging 3.2%. According to the latest analysis from Savills 2014 was a year of two halves for the prime London residential market. Prices rose by 4.9% on average in the first half of the year and fell by a net figure of 2.2% in the second half, its prime London index shows. The firm says that the increased rates of stamp duty introduced by the Chancellor in his Autumn Statement resulted in an adjustment in values at the top end of the market, most notably in prime London and parts of its high value extended commuter belt. As a result, the average all prime London index where values average £2.6 million recorded a 2.6% fall in the final quarter of 2014. However, London’s prime markets up to £1 million and in the £1 million to £2 million range were less adversely affected by the stamp duty changes and would also be less affected by opposition proposals for a mansion tax. As a result, they saw annual price growth of 6% and 2.5% respectively. The greatest impact of the stamp duty increase was seen in the most valuable markets of prime central London, which have seen the strongest price growth in recent years. In these central markets, where prices average £4 million, values fell by 4.2% in the last quarter of the year, contributing to small falls of 1.3% year on year. ‘It will take time for the effect of the stamp duty changes on prices to become clear, early signs are that the additional cost is predominantly being borne by sellers through price adjustments at a level similar to the extra stamp duty,’ said Lucian Cook, Savills UK head of residential research. ‘Prices were easing before the Autumn Statement, so for the very top end of the market the stamp duty rise coincided with some of the froth coming off pricing earlier in the quarter. Our analysis suggests that even without the stamp duty changes, values were on track to soften by around 1% in this last quarter, in part due to general pre-election uncertainty around high value property taxation,’ he explained. Early indications are that the prime markets outside London have been less impacted by the new stamp duty rates and would also be less affected by further taxation in the form of a mansion tax. In the sub £1 million prime market across the UK, average prices rose by 4.6% in 2014, fuelled by particularly strong growth in the first six months of the year. These lower value prime markets, particularly those that are well-connected to London, are forecast to see the strongest growth over the next year and… Continue reading
