Uk
Fewer UK landlords putting up rents, latest monthly data shows
The number of letting agents in the UK reporting rent increases for tenants has fallen, with only 33% putting up rents, the lowest amount since April. For the first time this year, the number of lettings agents seeing rent hikes for tenants has decreased from the previous month, with just 33% of landlords putting up rents in August, according to the latest survey. Data from the monthly Private Rental Sector report from the Association of Residential Letting Agents (ARLA) shows that it has dropped from 37% in the previous month and is the lowest since April this year. But it is not a universal trend. Tenants in the South West are not benefiting with 42% of agents in the region continuing to see rent prices hiked, up 4% from the previous month. This is compared to only 12% of agents in the North West who have witnessed a rent increase. In Wales, tenants are worse off too. The number of landlords putting rents up for their tenants has increased threefold from July. This month 36% of letting agents in Wales saw increases, up 25% from July when just 11% agents reported rent hikes. The report also shows that after a spike in the number of houses available to rent last month, supply has fallen back down to levels seen in June 2015. ARLA letting agents managed an average 178 properties per branch in August, compared to 189 in July. The report found the number of house hunters in the rental sector increased marginally in August. Letting agents reported an average 36 prospective tenants registered per branch, compared to 35 in July. The number of properties available to rent in London continued to fall in August, pushing demand for housing even harder in the capital and putting further pressure on house hunters. With 110 properties registered per branch, compared to 117 in July, the task of finding a property in the capital’s rental sector is becoming increasingly difficult. ‘Our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market,’ said David Cox, ARLA managing director. ‘With increasing pressure on the dwindling supply of housing, and the number of house hunters growing, rent increases are unfortunately very common as one in three tenants are experiencing. Despite the fact they have fallen this month, it’s likely they will go back up again over the next few months,’ he added. Continue reading
Underlying rate of house price growth in UK peaks
There are signs that the underlying rate of house price growth has peaked in UK cities despite many having average prices below levels recorded in 2007. Some 13 of the 20 cities tracked by the latest Hometrack Cities Index have registered a slower rate of growth in the third quarter of the year but annual growth is 8.4%, up from 6.6% in May. However, this year on year rate of house price growth masks more volatility in the underlying rate of growth, the report points out. The three month rate of growth expressed on an annualised basis appears to have plateaued. The firm says that this is in part due to seasonal factors, as well as mortgage approvals increasing over June and July and then falling by almost 20% in August. Overall city level house price growth is still running ahead of earnings and the UK as a whole. Average house prices are below the levels recorded eight years ago in nine cities with Belfast still 46% lower than in 2007 followed by Liverpool where prices are still 14% lower over the same period. The outlook for housing demand remains positive against the backdrop of lower mortgage rates and rising consumer confidence however the latest mortgage data raises questions over whether the rate of growth since the May 2015 election can be sustained. The report suggests that demand is expected to moderate in the final quarter of 2015, with a modest slowdown in the pace of house price growth likely in the run up to the year end. ‘It is important not to read too much into one month’s headline results but there are signs that the pace of city level house price growth is likely to continue slowing. There has been a surge of demand since the election in May but weaker mortgage approvals and evidence from survey data suggests less frenetic demand in the final quarter of the year,’ said Richard Donnell, director of research at Hometrack. ‘Putting the relative performance of UK cities into wider perspective shows a wide variation in performance from city to city emphasising that there is no single UK housing market, for example, house prices in Belfast prices still remain almost half the level seen in 2007 while those in London are 43% higher,’ he explained. ‘The variation in growth reflects the strength of underlying demand for housing and the health of the local economy with the index throwing light on these localised trends at a granular level,’ he added. Continue reading
Landlords immigration checks to be rolled out UK wide next year
The UK government has confirmed that all landlords in England will have to check new tenants have the right to live in the UK before renting out their property from February next year. It means that the pilot study on immigration checks which has been ongoing in the West Midlands will now be rolled out across England from February and in other parts of the country at a date yet to be announced. Under the new rules, landlords who fail to check a potential tenant’s Right to Rent will face penalties of up to £3,000 per tenant. According to Immigration Minister James Brokenshire right to rent checks are quick and simple. ‘Many responsible landlords already do them as a matter of routine. We are providing landlords with all the advice and support they need before the checks go live on 01 February 2016,’ he said. He explained that the rules are part of the Immigration Act 2014 which introduced measures to reform the immigration system. ‘Right to rent is about deterring those who are illegally resident from remaining in the UK. Those with a legitimate right to be here will be able to prove this easily and will not be adversely affected,’ he added. Richard Lambert, chief executive officer of the National Landlords Association said that the policy has been causing great concern among landlords so a date for the roll out is welcome. ‘The Home Office’s evaluation of the scheme so far seems to show that landlords’ experience of carrying out right to rent checks is not as bad as the perception of the problems they will cause,’ he pointed out. ‘However, with just over three months to go it’s vital landlords familiarise themselves with what they will need to do to properly check their tenants and steer clear of breaking the law come February, especially because those who fail to do so could wind up in jail,’ he added. It is also hoped that the new rules that anyone renting a property in the UK has to see and make a copy of a passport or residence permit will act as a deterrent to rogue landlords who rent substandard properties and to more people that the building can adequately house. ‘Hopefully this will assist with the regulation of rental property standards and help clamp down on some of the landlords who believe it is acceptable to rent sub-standard properties. If this happens, the industry will be more regulated for both landlords and tenants and, in turn, a better environment for all,’ said Adam Male, found of online estate agent Urban. ‘It is also good news that any landlords who are not making the appropriate checks on immigration status will now face a penalty of up to £3,000 per tenant if they are found to be renting out a property to someone who is in the UK illegally,’ he pointed out. ‘Anyone found to be abusing the system should be punished, it… Continue reading
