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UK landlords should be prepared to offer longer tenancies, says inventory organisation
UK landlords and property managers should consider offering long term tenancies as there is increasing demand but it means a different approach, according to the Association of Independent Inventory Clerks (AIIC). The organisation said that heightened preparation must include thorough administration and more thought about the choice of furniture and interior design themes. The AIIC points out that in the recently released English Housing Survey 2014/2015 showed that the average private tenancy length is now four years, up from three and a half years in the previous survey. It also found that some 46% of 25 to 34 year olds lived in the private rented sector in 2014/2015, up from 24% in 2004/2005. ‘Despite numerous reports suggesting that the average tenant doesn't want a long term contract, the official statistics show that average tenancy lengths are increasing, particularly among families, as people rent for longer,’ said Patricia Barber, chair of the AIIC. The organisation explained that these figures should encourage landlords to think harder about what will make their rental property feel more like a home and what can be done to facilitate renters staying in their property for longer. Barber also pointed out that the phenomenon of long term renting highlights how important it is for landlords to be organised and make sure they're on top of their administration duties. ‘When tenants stick around for longer, often the chances of confusion and disagreement over certain issues are increased when the tenancy does eventually come to an end,’ she said. ‘The longer time goes on, the more likely landlords and tenants are to forget details from the tenancy agreement or important information about the deposit, and that's why stringent administration, including keeping copies of everything and organising it accordingly, is so important,’ she added. The AIIC also highlighted that landlords should be aware of the need for evidence and records, especially for long term tenancies, and this again demonstrates the value of a thorough and professionally prepared inventory carried out at the start of the rental. ‘There are more grey areas over the condition of a property the longer a tenancy goes on. A detailed inventory will help landlords and tenants to determine exactly how the property's condition has changed over the course of the tenancy, what can be deemed fair wear and tear and what needs to be replaced and therefore deducted from the tenant's deposit,’ Barber explained. Should a dispute arise at the end of a tenancy, the AIIC maintains that a detailed inventory, which has been signed and agreed by the tenant, is the most important piece of evidence available to a landlord or letting agent. Continue reading
Homes in national parks and outstanding rural spots still command a price premium
Despite the rise of urban living in the UK, many home buyers are still searching for the ultimate period property in an idyllic green setting, research suggests. In particular, the country’s 15 designated green breathing spaces or National Parks along with 45 smaller Areas of Outstanding Natural Beauty (AONBs) often appeal to many. A new analysis from real estate firm Savills of these areas across the country, excluding coastal locations, shows that the average sale price for a detached house within a National Park or AONB is £450,000. This compares with a value of £347,000 for properties in the same county not within the park or AONB and represents a hefty 29.7% premium for buyers seeking their perfect property in these locations. The research report identifies key established prime and emerging prime hotspots throughout the UK and the most expensive areas were found to be in the south of the country. Surrey Hills is the most expensive green location in the prime market while Snowdonia National Park in Wales is the cheapest. The established prime areas are named as Surrey Hills where the average sale prices in 2015 was £963,000, some 82.4% over the rest of the county and up 9% compared to five years ago. Next is the South Downs with an average 2015 sale price of £721,000, some 57.6% above the rest of the county and up 20.1% over five years. Then it is the Cotswolds with an average price of £558,000, some 47% more than the rest of the area and up 9.8% over five years. Emerging prime areas are topped by Cranborne Chase and West Wiltshire Downs with an average sale price of £507,000 in 2015, some 26.5% more than the rest of the area and up 10.9% over five years. Next is the Kent Down with an average of £565,000 but this is 4.4% less than the rest of the country although average prices are up 8.4% over five years. Then is High Weald with a 2015 sales price average of £570,000, some 7% above the rest of the area and up 5.7% over five years. In the emerging prime market, the Midlands and Wales saw strong growth, with the Lincolnshire Wolds showing an 11.9% increase over a five year period, attracting a premium of 25.8% above county averages. Clwydian Range and Dee Valley in Wales has an average sale price of just £272,000 but this is some 26.2% over the country average and up 9.6% over a five year period. In the North of the country the Howardian Hills, populated with scenic villages and historic houses, maintained a 36.9% premium over the surrounding county. In the Yorkshire Dales the average 2015 sales price at £380,000 is some 27.2% compared with the rest of the country but is down 2.6% over five years. In Scotland in the Cairngorms National Park the average price of £250,000 is some 0.8% below the average and up just… Continue reading
Figures confirm UK landlords rushed to beat April stamp duty surcharge
Some 50% of homes sold in the UK in the last two weeks of March were bought by landlords as they sought to beat the new stamp duty deadline on 01 April, new research shows. There has been a lot of anecdotal evidence that buy to let landlords had been rushing to beat the additional homes surcharge of 3% but the monthly lettings index from Countrywide confirms this. It says that 50% of homes were bought by landlords in the final 15 days of March compared to 18% during the same period in 2015. Countrywide’s whole market estimates also show that £28 billion worth of home sales were completed in March, a 76% increase on the previous year, and overall landlords accounted for 23% homes sold in March compared to 13% in the previous year. This surge in landlord activity means more housing has been made available for tenants to rent and some 22% more homes were brought to the rental market in the first quarter of 2016 than in the same quarter in 2015 and has contributed to lower rental growth rates compared to last year. The percentage increase in the number of homes to rent has not been matched by the increase in the number of prospective tenants looking for a home which has put further downward pressure on rents. The number of tenants registering was up 16% in the first three months of 2016, compared to the same time last year. London experienced the largest increase in new rented homes, up 40% on the first quarter of 2015, but lower growth of tenant numbers, up only 8% over the same period. This has resulted in a rapid deceleration in rental price growth with rents in Greater London growing 2.9% in March, less than half the 7.4% recorded in 2015. The average UK rent rose 3.4% in the year to March 2016, two thirds of the rate in March 2015. Rents grew fastest in the East of England, increasing by 8.5% over the year. Growth in the East of England was driven by increasing numbers of new tenants registering in the first three months of the year, up 34% year on year, the highest increase of any region. ‘Quite at odds with the intentions of the policy, the first measurable effect of the introduction of the new stamp duty rate has been to increase the number of homes owned by landlords, although this will likely be a temporary affect as we see reduced investor activity in future months,’ said Johnny Morris, Research Director at Countrywide. ‘The increase in supply of homes to rent from landlords bringing forward purchases seems to have taken the edge off rental growth. A similar increase in tenants looking for a home to rent though would indicate this may not persist,’ he pointed out. ‘The large number of sharers, and people living with parents means there is a big store of pent up demand in the… Continue reading
