Archive for the ‘Misc’ Category

‘Unprecedented Demand’ From Prospective Tenants: Countrywide

Tuesday, July 20th, 2010

Countrywide has reported record demand saw 50,480 new tenants registered for rental accommodation in the second quarter of the year, which represents a 16% increase since the start of the year.

June saw the sharpest increase with over 18,000 new tenants registering, the highest number in a single month since records began, 22% more the previous month. The rise in demand is a sharp contrast to the fall in the number of new properties being offered, which has fallen 6% in the last three months.

The government’s increase in capital gains tax does not appear to have deterred new first time landlords coming to the market, which has increased by 6% since the last quarter. Countrywide says that fears that London landlords would be hit most by capital gains tax appear unfounded with a 4% increase in new landlords letting their properties.

The excessive level of demand has led to marginal increases in rental prices. As more families turn to renting, four bedroom properties have seen the highest increase, with the average rent rising to £1,090 per calendar month – a 4% increase compared to Q1 2010.

There is now an average of 5.5 tenants vying for each property compared to 4.9 tenants in the first three months of the year. The highest demand remains for two bedroom houses in the South West with 8.9 tenants vying for each property. This level of demand is having a significant impact on the market, with properties being snapped up within on average of two weeks – 3 days less that in Q1 and 6 days less in Q4 2009.

John Hards, Countrywide Residential Lettings, co-managing director, said: “The number of tenants’ entering the market is at unprecedented levels – and we have yet to enter the peak season. Student demand for private rental accommodation will increase further with university applications at record levels.

“The buy-to-let sector remains a good source of investment, however, the government need to do more to incentivise new landlords in order to appease the current shortage of properties. If tenant levels continue to rise at the same rate, this will be further exacerbated.”

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Rents Predicted To Rise 10% In Next Two Years

Monday, July 12th, 2010

York has been named the most affordable city in the UK to share a flat, according to flatsharing website Easyroommate.co.uk, as it forecast that rents will continue to soar along with rising demand.

Research by Easyroommate.co.uk showed that the average amount people will pay in York to rent a room is £270 per month or 14% of the average monthly wage in the city.

Easyroommate.co.uk compared rents and earnings across the 55 largest cities in the UK and revealed that the average UK rent is £348 per month or 16% of the national average monthly income.

Southampton was shown to be the least affordable city to rent in, with 27% of the average income of £1914 being spent on rent which comes in at an average £516 per month.

Despite London having the most expensive rent in the UK at £551 per month, proportionally, it comes in as the second leas affordable city. With the average income in the city clocking in at £2594, flatsharers are paying around 21 % of their wage on rent.

All five of the most expensive cities to rent in were located in the South East, with Southampton and London followed by Guildford (£505 per month), Cambridge (£418) and St. Albans (£410).

However, St Albans was found to be the third most affordable city to live in due to the average monthly income of £2932.

The three northern cities of York (£270 pcm), Stoke (£275) and Hull (£287) were amongst the cheapest cities to rent in.

Jonathan Moore, director of Easyroommate.co.uk, said: “There’s a clear split between the North and South, but the South East is looking increasingly like a separate market entirely. The squeeze in supply of properties has been felt more keenly in London and its outlying satellite towns, where demand is highest and rents are in London have soared to double those seen in York. For the price of renting a room in the South East, prospective flatsharers could rent whole properties elsewhere in the UK.”

Moore predicted that demand for flatshare will increase as first-time buyers continue to struggle to access mortgages and unemployment rises with public sector cuts.

He said: “We expect the monthly rents to rise by 10% across the UK over the next two years, with an increasing gulf between the rental market in the South East and the rest of the UK. But despite the imminent public sector job losses, the financial services sector shows signs of recovery and more jobs are becoming available in London. As demand for accommodation from young professionals grows, we anticipate the cost of room rental in London to top £600 per month.”

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Orchard Now Uploading To Property Live.co.uk

Tuesday, June 15th, 2010

Orchard Property Services now using Propertylive.co.uk

Property Live

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Landlord Optimism Highest Since 2007

Wednesday, May 19th, 2010

Landlord optimism is at its highest since 2007 but remains fragile, according to the NLA Landlords’ Optimism Index, published for the first time today.

57 per cent of landlords rate overall prospects for their lettings business over the next three months as good or very good. This is, in part, due to increased tenant demand but also because of property value increases across the UK resulting in better capital gains.

Increased optimism levels can also be at least partially explained by stronger profitability, with portfolio landlords back on track to generate sufficient revenue to ’save income’ each month.

There has also been a slight improvement on how landlords perceive the UK financial markets. 28 per cent said they expect markets to improve further over the next three months which is a five per cent improvement on this time last year.

Chris Norris, Policy Manager, NLA, commenting on the Index, said:

“Landlords have faced considerable challenges recently. Everything from longer void periods to an increase in rental arrears have taken their toll on landlords’ optimism. However, it is good to see we may well have turned a corner.

“Alongside a more positive outlook for their own lettings businesses, landlords are beginning to think more actively about possible acquisitions in the next quarter. This should be further encouraged by an increase in the level of available buy-to-let mortgage finance on offer.

“With rent arrears and void periods both stabilising, 2010 could prove to be a real catalyst for landlords who are looking to expand their portfolios.

“However, it remains to be seen whether recent Government leaks about possible increases in Capital Gains Tax will see off any landlord confidence in the coming months.”

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Protect Your Property With The Land Registry

Thursday, January 14th, 2010

Protect your most valuable asset with The Land Registry
http://www.landregistry.gov.uk/

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Buy To Lets Becoming a Market of Professional Landlords

Thursday, January 7th, 2010

A survey from specialist lender, CHL Mortgages, revealed landlords think buy-to-let is increasingly becoming a market of professional landlords.

A CHL survey showed 81 per cent of landlords are positive about the future for buy-to-let with 38 per cent planning to buy further properties, 13 per cent ready to sell and 53 per cent happy to sit tight with the properties they own already.

A majority of respondents manage their properties themselves suggesting their role as buy-to-let landlord is a profession rather than a hobby, with 34 per cent using the services of a lettings agent.

Of those surveyed, 71 per cent of landlords say the rental money they gain from their buy-to-let properties is sufficient to cover the mortgage payments, management and maintenance fees, while 15 per cent say it is only enough to cover the mortgage. However, 6.1 per cent are losing on their investment with a rental income insufficient to cover their outgoings.

Rental voids are clearly an ongoing problem with just 55 per cent of landlords reporting no rental voids in the last 12 months but 28 per cent seeing inconsistent payments in the last six months. Only 12 per cent of respondents said they were using Rental Guarantee Insurance to protect against voids and rent arrears.

Bob Young, managing director at CHL Mortgages, said: “Our first quarterly survey of CHL landlord customers seems to show growing confidence in the buy-to-let sector and an overwhelming feeling that the market pain we have all felt over the last couple of years is starting to subside.”

He added that motivated by short-term ambitions are less prevalent as they attempted to make money quickly from property.

“Fuelled by some less than responsible lending these ‘landlords’ on the whole have been forced out of the market and the sector has returned to the hands of those looking for long-term returns,” said Young.

“It is encouraging that for the majority, rental income is sufficient to cover all outgoings and in most cases deliver a yearly profit. In this current economic environment we are somewhat surprised to see the relatively low numbers using Rental Guarantee Insurance however we will track this in future surveys to see if take-up increases over the coming months.”

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