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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
Property sales in Scotland up 4% in 2015, down from 11% the previous year
Residential sales in Scotland increased by 4% in 2015, well below the 11% recorded in the previous year, a new analysis report points out. Tougher mortgage lending conditions during the first half of 2015 impacted the recovery of Scotland’s housing market, according to the report from real estate services firm Savills. However, the market adjusted during the second half of 2015 due to a recovery in mortgage lending for house purchases across Scotland, which increased by 9% from 59,500 in 2014 to 64,800 in 2015. On a Local Authority level, East Renfrewshire witnessed the strongest annual growth in the number of transactions during 2015 at 13% which the report says was boosted by the good schools effect. Other star performers include Glasgow City, West Dunbartonshire and West Lothian, where annual transactional growth in 2015 was higher than Scotland as a whole. Considering 2015 as a whole, prime sales, transactions at £400,000 and above, outperformed the overall market, with an 8% annual increase and much of this activity took place prior to the introduction of LBTT which brought higher rates of taxation to the prime market. Furthermore, the number of transactions at £1 million and above reached its highest level since 2008. Prime markets in suburban and commuter areas across Scotland’s Central Belt performed strongly during 2015, with growth spreading out from core urban hotspots. ‘This upturn in demand is driving an improving development land market. Sentiment for development land in Scotland’s cities remains positive,’ said Faisal Choudhry, director of Savills Scottish Research. With strong annual growth in the Savills Residential Development Land Index, particularly for greenfield land around Edinburgh, Perth and Stirling. The overall Savills index for greenfield land in Scotland increased year on year by 9.6% during December 2015 compared with December 2014. Choudhry explained that the development market has been further supported by Government incentives, such as the Help to Buy Mortgage Guarantee and new build schemes, which made up 8% of all residential activity in Scotland between October 2013 and September 2015. The recently announced extension of Help to Buy (Scotland) scheme to 2019 is expected to further support Scotland’s new home sales. The overall Savills index for urban land in Scotland increased year on year by 20.4% during December 2015 compared with December 2014.The increase in values, particularly in Edinburgh and Glasgow, reflects a rise in demand from housebuilders and developers, due to an improved economy, stronger markets and increased viability, Choudhry pointed out. However, he also pointed out that the fall in sentiment within the Aberdeen development land market, due to the continued low oil price and uncertainty over the future of the industry, has impacted negatively on the overall Scottish development land index. 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
