Tag Archives: middle-east
Vote on UK in the EU unlikely to have much impact on rental market
On the eve of the historic referendum in the UK on the future of the country in the European Union research shows that letting agents do not anticipate a major shift in the rental market. Whatever the outcome of the vote, lettings agents do not believe supply, demand, or rental costs will be significantly affected, according to the latest sector report from the Association of Residential Letting Agents (ARLA). Some 65% of ARLA agents expect supply to stay the same if the UK votes to leave the EU, compared to just a fifth 22% who predict it will fall as international landlords pull out of the market. The research also found that 31% see demand decreasing, as relocating to the UK becomes a less attractive prospect, but over half, 55%, think it will remain as high as it currently is. In London, however, almost half, 43%, of agents expect the number of prospective tenants per property to fall in the event of a ‘Brexit’, as international demand weakens. While 19% of agents expect a Brexit result will cause upward pressure on rent costs, the majority don’t imagine a massive change for tenants’ rents, should Britain leave the EU. ‘There is no avoiding the EU Referendum at the moment; and whatever the outcome, we are likely to feel the impact of the fallout of this debate in different ways,’ said David Cox, managing director of ARLA. ‘However, it’s important to put this into perspective and not get carried away in a zeitgeist. As outlined in our recent Brexit Report, the lettings market hosts a large number of non-UK born citizens and any change in migration policy is likely to have an impact down the line, especially in London. However, our monthly report clearly shows the sentiment amongst members is that the immediacy of this effect is likely to be minimal,’ he pointed out. The monthly report also looked at the issue of stamp duty reforms. Two months since the extra 3% was added to buy to let and second homes some 37% of agents reported a fall in supply of buy to let properties. This figures was much higher in Wales, where 80% of agents saw a dip in supply in May, as well as East Midlands and Yorkshire where 50% of ARLA agents have seen a decline. Looking forward, nearly half, 48%, of agents expect supply will continue to fall as more landlords walk away from the market as a result of the mortgage interest relief changes coming into force next year. The research shows that month on month supply is consistently lower than in 2015. The number of properties managed per branch dropped in May, with agents recording an average 171 properties on their books. Demand also fell marginally last month, as agents registered 33 prospective tenants per branch, compared to 34 in April. ‘The EU… Continue reading
More families renting homes in the UK, research shows
Families are the most common household type in the private rented sector in the UK for the first time, according to the latest research from the National Landlords Association (NLA). The findings show that more landlords now let to families with children, making up 48% of the sector, overtaking young couples with 47%. This represents a shift compared to four years ago, when young singles made up the largest group with 53% followed by young couples at 51% and then families with children at 51%. Indeed, the PRS now accounts for approximately five million households in the country United Kingdom and, according to the latest English Housing Survey, the proportion of families in the PRS has increased from 30% in 2004/2005 to 37% in 2014/2015, an increase 912,000 households in 10 years. For the majority of families surveyed, renting privately is a stable option, with 76% reporting they were happy with the length of their tenancy, and a similar proportion, 79%, reporting their tenancy was renewed or stayed the same at the end of the initial fixed term. As a result, the perception of renting as a barrier to family life is breaking down, with 60% of renting families saying that it was not while 77% of families considered their rented accommodation to be home, and the majority, 65%, reported that they were free to personalise it however they chose. ‘There is a genuine contrast between the experience of renting in the 21st century shown in this research and the prevailing housing culture in Britain that only views it as a stopgap, something to be tolerated while waiting for the opportunity to buy your own house,’ said Richard Lambert, chief executive officer at the NLA. ‘There is a rogue element to private housing that ruins the experience for far too many people, but for the majority of the 11 million private renters, renting offers an inclusive and flexible option which works for them in their current circumstances,’ he pointed out. ‘Contrary to popular perception, there’s growing evidence that renting is no obstacle to putting down roots and calling somewhere home. The majority of landlords want good, stable, long term tenancies, and these findings show that more and more are becoming receptive to helping families make a home in the private rented sector,’ he added. Continue reading
Cost of winter storms in UK revealed by ABI
Residential and commercial property owners in the UK are being urged to make sure they understand flood insurance cover after the full cost of the latest winter storms were revealed. The number of insurance claims for flooded homes and businesses made in the wake of December’s storms has climbed to more than 15,000 with 85% of these either fully or partly paid out so far, according to the Association of British Insurers (ABI). The average cost of each domestic claim for the floods caused by Storms Desmond, Eva and Frank is around £50,000 which is higher than usual and reflects the extensive damage caused by the flood waters in some locations. Insurers are spending nearly £27.5 million on alternative accommodation for affected families while their properties are repaired. The final bill for all repairs is expected to reach £1.3 billion. ‘Being flooded is horribly traumatic, not only because of the initial devastation but also because of the time it can take to get your home and business fully repaired and back in working order,’ said Mark Shepherd, manager of General Insurance Policy at the ABI. ‘Insurers are committed to getting all customers back in their properties as safely and as quickly as possible and it’s good to know that thousands of homes and businesses are getting back to normal nearly six months on. Small businesses are the lifeblood of many local economies and insurers have been working flat out to get many open and trading again,’ he explained. ‘Repairing a flooded building cannot be rushed because of the importance of making sure it is properly dried out before repairs are done. The work needed to fully restore every single property affected in December continues with the same sense of urgency as in the immediate aftermath,’ he added. According to the ABI the drying stage is one of the most important parts of the repair process, and it can take a significant amount of time. When properties are flooded by several feet of water, it gets deep into the brickwork and structure of the building. The building needs to be completely dried out before repairs and rebuilding start, and that means dry deep into the walls, not just dry at the surface. It added that although new technology is being used more often to speed this process up where possible but it isn’t always suitable for all properties and repairs done to a property which isn’t completely dry may create future problems for the owner or resident. There also needs to be full decontamination to ensure the property is safe to return to. Where properties aren’t ready for people to return to them, insurers will be funding alternative accommodation as required. Some people may choose to live in the upper storeys of their property or to stay with friends or family members instead. Businesses may also be offered alternative premises to trade from for a period. Payments have been made towards 85% of claims. Where payments… Continue reading
