TSI
Research paints a generally harmonious tenant/landlord relationship
Tenants in the UK believe that landlords are fair and helpful but there’s room for improvement on safety issues according to new research. Overall a harmonious, friendly and respectful relationship exists between landlords and tenants, with 59% of people surveyed saying they believe they pay a fair price in rent and 48% saying they have a good or very good relationship with their landlord. The research from AXA Business Insurance also shows that only 6% of tenants feel their relationship with their landlord is bad or very bad, and good will and acts of kindness are common between property owners and the people who rent from them. But it also highlights significant room for improvement when it comes to safety and security. Some 43% of landlords have failed to arrange the legally required annual gas safety check, 54% have neglected to install a fire alarm, 68% have not organised an annual electrical safety inspection, and 71% have not organised a carbon monoxide alarm. In addition, 74% of landlords have failed to put locks on all external windows and doors and 78% of landlords have not arranged a door chain or spyhole to keep their tenants secure. Despite these important oversights, people up and down the country generally paint a positive portrait of the person who owns their rented home. Some 30% of tenants most commonly describe their landlords, 23% as helpful, 20% as responsible, 19% as trustworthy and 15% as caring. In the small number of cases where the relationship is more difficult, some 2% of tenants say their landlord is creepy, 3% think they’re seedy and 3% describe them as dishonest. Some 28% of tenants say their landlord has done something ‘nice’ for them and 20% say they have done something ‘nice’ for their landlord in return. Many swap cards on special occasions, while the most common acts of kindness on the landlord’s side include gift giving, forgiving a late payment in difficult times and offering help above and beyond what might be reasonably expected in a tenant’s agreement. In return, tenants are happy to arrange small decorating or DIY jobs and even do a bit of home baking when they expect a landlord visit. And while 35% of tenants admit they’d take more care of a home they owned themselves, most make a special effort to look after the property and aim to have it clean and tidy before the landlord pops round. Cleaning floors and bathrooms, making beds, spraying air-freshener or lighting candles and taking the bins out in advance of a visit are common. Yet even those people who enjoy a positive rental experience recognise that not everyone is as lucky, and 85% agree that the government should do more to protect people who rent from private landlords. ‘There’s clearly a lot of good will between landlords and their tenants and our research shows that rental home horror stories and negative stereotypes… Continue reading
UK mortgage activity improved in second quarter of 2015, CML data shows
The London property market saw increased mortgage lending in the second quarter of 2015 but levels were still down compared to the same quarter last year. The latest quarterly data from the Council of Mortgage Lenders shows that home owner house purchase activity in Greater London came out of the traditional seasonal dip to show growth in the second quarter by volume and value. First time buyer activity saw similar trends with an increase in levels on the first quarter of the year, but this sector was also down on the same quarter last year. Unlike house purchase activity, remortgage lending had quarter on quarter and year on year growth in both volume and value. ‘As in the UK overall, the London market came out of the usual seasonal dip in the first few months of the year and saw increased activity but volumes are still on the same period last year,’ said Paul Smee, director general of the CML. ‘Remortgage activity has shown quarterly and year on year growth after a period of stagnation. Borrowers appear to be taking advantage of competitive mortgage rates, ahead of a potential future interest rate rise,’ he added. In Wales house purchase activity saw large quarter on quarter increases compared to the first quarter of the year, but a slight decline in volume of loans compared to the second quarter in 2014. First time buyers increased significantly from the first quarter, but decreased in amount borrowed and number of loans compared to the second quarter of 2014. Home movers went up in volume and value quarter on quarter, and while number of loans remained unchanged year on year the amount borrowed by home movers increased. The data also shows that remortgage activity increased compared to the first quarter and on the same quarter last year. ‘House purchase activity appears to have woken up in Wales after traditionally slower levels in the winter months,’ said Julie-Ann Haines, CML chair for Wales. ‘The uptick in remortgage is, in particular, striking as levels had remained relatively identical over the previous four quarters. With the current low rates of interest unlikely to continue, it seems that borrowers are now taking advantage of competitive mortgage rates before a rise,’ she added. Continue reading
Rents in Scotland show no rise, latest index shows
Residential rents in Scotland have begun to plateau as growth cools off in urban centres but are still at an all-time record high of £549 per month. In July there was no change in the average rent and there has been a down turn in annual growth, according to the latest buy to let index from lettings agent network Your Move. Scottish rents are now 2.8% higher than a year ago, however this slowed from 3.1% in the year to June, after a prolonged period of accelerating rent rises in the first half of the year. ‘We reached a tipping point in July. Rents in Scotland have been building to a crescendo so far in 2015, and rent rises have been quickening their step. But now we’ve reached a mid-point in the year, the rental market has clearly paused for breath,’ said Brian Moran, lettings director at Your Move Scotland. ‘Tenants will be relieved for now, but only time will tell whether we’ve reached a fork in the road for the private rented sector, or whether rent growth will start to ramp up again as autumn approaches, and the age old disparity between available homes and those looking to rent rears its head again,’ he pointed out. He explained that the record rents are not necessarily found in areas where they would expect to be. ‘With the severe squeeze on housing in the cities, households are casting their nets much more widely for places to live, which is driving somewhat of a renaissance in the more affordable areas of Scotland. And rental prices are holding up a mirror to this nationwide demand for homes,’ said Moran. A regional breakdown of the figures show that rents are higher than a year ago across the country while they are at an all-time high in the East, the Highlands and Islands and the South of Scotland. The average monthly rent in the Highlands and Islands has increased at the fastest rate over the past year, up 5.4% since July 2014 to reach a record £568 per month. Compared to a year ago, the East of Scotland has witnessed a 3.8% rise, bringing the average monthly rent to a historic peak of £531. Rents in the South, while still the cheapest location in Scotland to rent, now stand at £513 per month on average, after a 2.7% rise year on year. But rent growth in Scotland’s foremost urban centres appears to be on a cooler trajectory. In Edinburgh and the Lothians the typical monthly rent is now 1.8% higher than in July 2015, while Glasgow and Clyde has witnessed a 1.7% yearly climb in rental prices. Average rents in both these regions are below past peaks. On a monthly basis, rents have increased across four of the five regions of Scotland, one fewer than last month. The only region to experience a fall in rents during July was Glasgow and Clyde, where average rents dropped 1.5% during the… Continue reading
