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Landlords more ethical than many might think, new poll finds
Like estate agents, landlords often get a bad press but new research has found that they are more ethical that they are given credit for. Indeed, tenants rate their landlords highly but think more could be done, according to new research from Saga Home Insurance. In a poll of UK adults, 77% of tenants rated their current landlord as good or excellent, with just 8% giving a poor rating. Despite this 56% of tenants said that their landlord should do more to help them. The research also revealed the top complaints experienced by both landlords and tenants. Landlords were more likely to complain about late rent payments (37%), damage to the property (32%) and even tenants who vacated the property with little or no notice (20%). Tenants were most likely to complain about hard to reach landlords (23%) and poor quality tradesmen used for repairs (21%). However, the firm found it worrying that one in 10 landlords don't pay the deposit in to the Deposit Protection Scheme. This can cause issues with eviction, requiring landlords to pay tenants the full deposit before serving notice and starting the eviction process. The research also found that many landlords understand the value of responding to tenant enquiries more quickly (55%), or having home emergency cover that the tenant can call upon 24/7 (32%). However just 19% believed they should provide alternative accommodation when a property is made uninhabitable by an insured event such as flooding or fire, something they would get as standard with a Saga policy. ‘In the age of housing shortages and escalating rents, landlords have been getting some bad headlines, but the research shows the extent to which this portrayal is unfair,’ said Sue Green, head of home insurance at Saga. ‘The vast majority of landlords are conscientious and ethical, although tenants do believe more can be done which is why we have released our guide with practical tips to help them improve their ethical credentials,’ she pointed out. ‘Anyone who is a landlord should consider whether there might be more that they could do to make things easier for their tenants, which will be beneficial to all involved,’ she added. To coincide with the research, Saga Home Insurance has released a free Guide to Being an Ethical Landlord which offers insight on the benefits of being an ethical landlord, as well as advice on how to become one. Continue reading
Concerns over watering down of affordable housing commitments
Property experts are warning of an affordable housing time bomb in the UK which needs addressing to ensure enough homes are not only built but in the pipeline to cover future demand. It follows a recent case where a new appeal mechanism to remove the obligation of a developer to provide affordable housing was implemented and may open the flood gates for others to follow suit. Prior to the recession, many property developments were granted consent on the basis that, under section 106 agreements, a certain percentage of what was to be built would be earmarked for social housing. However, as the downturn began to bite, many developers found that the projects they were involved in were becoming increasingly unviable and sought to reduce the number of these properties and replace them with dwellings for private sale. Before 2008, local councils were able to stand their ground with regard to social and affordable housing requirements. But as the recession took hold and developers started to withdraw on their affordable housing commitments, councils were held over a barrel. It now seems that a new mechanism introduced through the Growth and Infrastructure Act 2013 is being used by developers to reduce their affordable housing commitments and follows a number of recent cases where the affordable housing requirements were reduced. This includes a development in Gloucestershire where the affordable housing commitment went from 20% on one site and 30% on a second site to 14.1% across the two. Another case in Exeter resulted in the affordable housing provision being reduced to zero. Angus Taylor from property consultants Bruton Knowles now believes that developers and councils need to work closely together before committing to a scheme so that a reasonable balance is struck between the provision of affordable housing stock while allowing developers to make any scheme viable and profitable. ‘Although we’re coming out of the recession, I believe there is going to be more cases where developers appeal on their affordable housing commitments. Coupled with a reduction in the number of affordable houses being built during the recession has made for a perfect storm in affordable housing provision,’ he said. ‘What’s key is that developers undertake stringent viability studies prior to the submission of any planning application. That way they know what the bottom line will be before any work is carried out,’ he explained. ‘Councils also have to be reasonable in their demands on what they’re asking developers to provide, otherwise nothing will get built leaving a shortfall of both private and affordable housing. What we don’t want is for this ruling to turn into a free for all where developers en masse appeal against their prior commitments,’ he added. Continue reading
UK buyers better off than renters after five years, new study has found
Buyers in the UK are better off than renters within five years on average as a result of equity outstripping the value of savings, new research has found. While home owners with mortgages pay £316 more on average per month compared to those renting equivalent properties, they become better off after a few years, according to the study from property website Zoopla. The research also shows that the average monthly rental across the UK currently stands at £865 per month versus an average monthly mortgage repayment of £1,181. But while renters may pay less each month, owners recoup their initial costs and become better off than renters within five years on average as a result of the value of equity outstripping the value of savings. And after seven years, the average owner is £13,850 better off compared to an equivalent tenant. Aberdeen, Dundee and Glasgow are currently the most cost effective towns for buying versus renting, as the average monthly mortgage repayment is less than the average rent. At the other end of the scale, Bournemouth, London and Huddersfield are the most cost-effective places for renters due to higher property prices relative to rents for equivalent properties. London owners pay nearly £1,790 more a month than the average renter in the capital. ‘People who invest in property are playing the long game. While buyers have to swallow the initial upfront costs of purchasing a property, they ultimately reap the benefits over renters down the line,’ said Lawrence Hall of Zoopla. He explained this is due to building up equity in an asset that they will own by the end of the mortgage term. ‘With the strong house price growth we’ve experienced this year and interest rates still low, saving for even a 10% deposit takes its time,’ he added. Continue reading
