Posts Tagged ‘tenants’

Tenants Hit Record Levels

Wednesday, July 21st, 2010

New tenant numbers have risen 16% since the beginning of the year, reaching a record 50,480, according to Countrywide.

June had the sharpest rise in new tenants registering for rental accommodation, increasing by 18,000, up 22% on the month before.

This is the highest number of new tenants Countrywide has recorded in a single month since its records began in 2003.

However, the sharp rise in demand is in stark contrast to the number of new properties being offered, which fell 6% in the last three months.

There are no an average of 5.5 tenants for every property available compared to 4.9 tenants in the first three months of 2010. The greatest demand is for two-bedroom houses in the South West, with 8.9 tenants for each property and homes being snapped up within an average of two weeks, three days less than in Q1 and six days less than in Q4 2009.

John Hards, co-managing director for Countrywide Residential Lettings, says: “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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‘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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Tenants Late In Claiming Deposits Back

Wednesday, November 25th, 2009

Almost £5 million of deposits are still waiting to be claimed by tenants, according to the Deposit Protection Service.

The DPS protects more than 480,000 of UK deposits. However, more than 8,000 of them are waiting for the response of the lead tenant before they can be repaid.

Kevin Firth, director of the DPS, said: “We are committed to repaying deposits as quickly as possible, but unfortunately, some tenants are not keeping their contact details up to date – resulting in this large number of unpaid deposits. Once the tenancy has been registered with us, only the tenant can update their details, for security reasons.

“I must urge tenants to give us accurate and up to date information to ensure that their deposit money can be returned as quickly as possible at the end of the tenancy.”

The DPS has undertaken a review of its processes in order to make it easier to avoid deposits being held in limbo due to tenants not responding.

Firth added: “The review highlighted that if we had either a mobile number or valid email address for the lead tenant from the outset, the number of deposits held in limbo would be dramatically reduced, providing a better service for both landlords and tenants. This is part of our continuous efforts to speed up the repayment process and reduce the number of outstanding deposits.”

In order to make a deposit repayment The DPS needs agreement from both the landlord or letting agent and the lead tenant, along with details of the correct payment method.

The DPS will be introducing changes to the on-line service. From 26 November, landlords will be required to provide either a UK mobile phone number or a valid email address for the lead tenant. One of these will be required as a minimum (both would be ideal). However, if tenants do not have any of this information then they should apply for a paper deposit submission form.

Early next year the DPS will also be introducing SMS text messaging to alert tenants when a deposit repayment has been initiated by their landlord or letting agent.

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