Average house price to rise by 17% to £400,000 over next decade

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UK house prices could surge by 17% in the next decade, based on historical data from the past 40 years.

Property buying firm Good Move has studied house prices in the UK since 1980 to predict what the market might look like up until 2050.

Although it admits it can’t do this with complete certainty, it’s come up with a ‘line of best fit’, which could give landlords an idea of how their assets will rise in value.

It predicts that by 2025, average house prices will rise by 5% to £251,476, increasing to £279,641 in 2030 and to £392,301 by 2050 – a total increase of 64% if this continues at the same rate.

Good Move based the calculations on data from Gov.UK to show how average house prices in the UK went from £19,273 in 1980 to £239,927 in 2020 – an incredible 1,145% jump.

The largest five-year increase came between 1985 to 1990, where prices soared by 109% to reach £58,250. What followed was the only dip to £55,437 in 1995.

Unprecedented increases

Director Nima Ghasri says house prices in the UK have increased at an unprecedented rate this year, up by 26% compared to 2015 and 7% compared to 2019.

She adds: “If our predictions are correct, we can expect house prices to soar in the future, nearly reaching an eyewatering £400,000 by 2025. However, many things impact house prices, and nobody can predict for certain what the economy and property market might look like in the future, so this doesn’t mean that our predictions are correct.”

Good Move sourced average house price data from 1980 to 2015 from Land Registry data with recent figures taken from The Guardian/Halifax.

Read more about house price rises.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Average house price to rise by 17% to £400,000 over next decade | LandlordZONE.

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NRLA wants Holiday Lets to be hammered the same way as BTL?

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Rather than campaign against the unfair imposition of section 24 mortgage interest relief restrictions and the discrimination against BTL landlords the NRLA would prefer short term holiday lets and Airbnb to suffer the same fate.

The NRLA press release says it: “Wants to ensure the tax system encourages the provision of longer-term rental property over short-term holiday lets.

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BREAKING: ‘Scrap the 3% second-home stamp duty levy’, landlords tell Chancellor

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Landlords have called on the Chancellor to remove the 3% additional stamp duty they pay on property purchases in his next budget due on March 3^rd or risk a supply crisis in the rental housing market.

The National Residential Landlords Association (NRLA) is calling on the Chancellor to scrap the duty on the purchase of homes to rent where landlords invest in properties that add to the net supply of housing.

This would include new homes, converting large properties into affordable units, changing the use of a property from commercial to residential or bringing empty homes back into use.

Citing Rightmove and RICS figures, the NRLA says the market is already showing signs or rising rents and supply dwindling.

Ben Beadle, Chief Executive of the NRLA, says: “To have a tax on developing new housing is completely nonsensical at a time when more is needed.

“Supporting growth in the private rental market, alongside all other housing types, would provide a significant boost to the economy in the midst of the COVID-19 pandemic.

“Research published last year suggests that landlords inject over £3.5 billion into local businesses across the UK.”

Level playing field

Beadle (pictured) also wants a level tax level playing field between traditional landlords and Airbnb operators who, once the mortgage interest relief is finally abolished this year, will have a tax advantage over their longer-term renting counterparts.

“To be taxing long term homes to rent less favourably than holiday lets is simply bizarre. It completely undermines efforts by the Government to encourage the provision of long term, secure housing,” he says.

“It is time for the Government to realise that its tax policies have created a shortage of rented housing. This can only mean higher rents and reduced choice for renters. This is not going to do much for the levelling up agenda.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: ‘Scrap the 3% second-home stamp duty levy’, landlords tell Chancellor | LandlordZONE.

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EXCLUSIVE: Fergus Wilson talks about his High Court run-in with local council

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Multi-millionaire landlord Fergus Wilson says scores of tenants face re-homing difficulties after Ashford Council’s actions precipitated his decision to sell off his huge portfolio.

It is currently applying to the High Court for a permanent injunction to end harassment that it claims has been ongoing since 2011.

The council has alleged the 72-year-old would send a huge number of letters and emails, and make phone calls and formal complaints against officers, councillors and legal representatives.

However, Wilson tells LandlordZONE: “They’re putting the boot in after I put someone’s nose out of joint. If they win, it will be a pyrrhic victory.”

He explains that the problem stemmed from enquiries he made to the council about housing a woman with Downs Syndrome from Romania who had joined her family in one of his properties.

“When I didn’t get a reply, I wrote to the Information Commissioner and then got a letter from the council complaining about me. Then when I referred to someone as a ‘Michelin Lady’ I was asked to apologise, but I wouldn’t as I didn’t think it was abusive.”

Profanity

The court heard that council leader Gerry Clarkson reportedly received a large number of letters to his home address, one of which – amongst a large amount of profanity – told him to, “do all of the young people in Ashford a favour and commit suicide”.

Defending, Andrew Deakin argued that the communications the landlord sent out, “didn’t cross the threshold of what would be considered harassment”.

The outspoken landlord is unrepentant as he believes his tenants will lose out, whatever the outcome.

Last August, LandlordZONE reported that Wilson had decided to retire and sell off his hundreds of properties around Ashford and Maidstone, only leaving himself 10 houses.

“I’m leaving the market years earlier than I’d planned to,” he says. “I wanted to try and minimise the impact by selling my portfolio over a longer period but Ashford Council are now having to house people in shipping containers while they wait to be re-homed.”

A ruling is expected this evening.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Fergus Wilson talks about his High Court run-in with local council | LandlordZONE.

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Application forms – got it ALL covered?

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In light of yet another BS initiative ironically called BS (Breathing Space), it is time I reviewed my tenant Application Form with a fresh pair of eyes.

This seems the only way to be able to try and head off

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Landlord launches e-petition to challenge ‘flawed’ EPC upgrade rules

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Changes to Energy Performance Certificate (EPC) ratings penalise landlords and are set to decimate the private rented sector says a leading landlord, who’s set up an online petition calling for an overhaul of the system. 

Nottingham landlord Tricia Urquhart is so frustrated about unfair government plans to raise the minimum energy efficiency rating from Band E to Band C for new tenancies from 2025 and for all existing tenancies from 2028 that she’s urging other landlords to add their names in protest.

Tricia says under the current rating system it will be difficult to improve a rating from an E to a C in many homes and could result in thousands of inefficient properties being dumped.

She tells LandlordZONE: “I’ve always looked after and invested in my properties, and I understand we need to improve energy efficiency in our homes, but these EPC regulations are flawed.”

Urquhart adds that the problem affects urban as well as rural areas.

“Several of my eight properties in areas without a gas supply had storage heaters so I bought top-of-the range modern radiators, but for an EPC assessment, that’s the same as buying a £25 convection heater that huffs out hot air.”

The assessment also makes assumptions based on the age of a property, explains Tricia.

“My sister had floor insulation fitted in a house she bought years ago, but the assessment would assume it isn’t fitted because of the property’s age – but she won’t be able to prove to an assessor that she’s had this done without destroying the floor in the process.”

Landlords will inevitably put up rents to cover the amount they’ve had to fork out for any improvements – up to £10,000 a house – which will result in a two-tier system where those who can’t afford higher rents end up renting potentially dangerous properties from rogue landlords, predicts Tricia, who adds: “I was thinking of selling up in about 15-20 years but I’ll now do it much sooner.”

Sign the petition here: https://petition.parliament.uk/petitions/559700

Read more about EPCs.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord launches e-petition to challenge ‘flawed’ EPC upgrade rules | LandlordZONE.

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Is it worth it?

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Has anyone had experience in using DPS deposit dispute resolution services?

After I had a dispute, claim for £316.50, I got awarded £80.00. It just to makes you think it is not worth having a deposit and wasting my time to prepare and submit evidence.

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£2m government-backed pilot mediation service for evictions begins

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The government has launched its much-anticipated Housing Possession Mediation Scheme for landlords and tenants, provided by The Society of Mediators (SoM) at a cost of £2 million.

It will last for between six and nine months and is being operated jointly by the Ministry of Justice and Ministry of Housing, Communities and Local Government.

It will offer a free, dedicated service staffed by seven clerks to engage with possession claims as they progress through court and facilitate settlement without a substantive hearing, where possible.

The service is understood to be voluntary and both landlord and tenants must agree to take part in the mediation process, although landlords may feel obliged to use it as judges making possession decisions are likely to look favourable on those who do.

Manage capacity

“This service aims to help further promote compromise to the benefit of all parties, sustain tenancies and manage capacity in the court system,” the tender notice outlines.

The Society of Mediators, which is a charity, will have a significant operation on its hands – the service is designed to offer an online mediation service for all of the 170 county courts around the UK where possession cases are heard.

The new mediation service will offer landlords mediation with tenants they are seeking to evict during the 28 days between a court’s review of the files and the possession hearing.

The mediations are being conducted by telephone, WhatsApp or Zoom and both parties will also need email access.  

The SoM claims its mediation is simple, fast and efficient and that 84% of cases lead to a settlement.

But many eviction experts are sceptical and say that, although well intentioned the new service is too little, too late in most possession proceedings, and that mediation achieves more when completed much earlier on in a dispute.

Visit the new website to find out more about the service.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – £2m government-backed pilot mediation service for evictions begins | LandlordZONE.

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Build-to-rent operator launches ‘portable tenancies’ at London developments

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A build-to-rent operator in the capital is trying out a new concept in the UK private rental market – portable tenancies.

Residential management company Apo’s new development in London’s East End (pictured) allows tenants to live, work and play in one location, offering services and amenities to take the hassle out of everyday life.

Dubbed ‘rental-meets-living’, its target audience of mainly young professionals will get a sense of community in Barking, but if they fancy a change, can up sticks and move into a partner development currently being built in Kew, just by giving a month’s notice.

‘Life admin’ is made easier, promises Apo, as tenants get a single monthly bill for all utilities and can access the co-working space, roof terrace, studios and private gym.

The site has its own apiary and home-made honey, bike club, handyman for DIY tasks and a guest apartment for visiting friends and family. Members can opt in and out of perks at any time, only paying for what they need.

Matthew Pullen, CEO of Apo, says the offer addresses common concerns about renting and creates an easier and more enjoyable way of living.

“Our mission at Apo is to constantly evolve our offering by working closely with our members to bring fresh ideas to the table and adapt to their growing needs,” says Pullen.

“We are all about inclusivity and putting the fun back into London living.”

The 597 flats start at £1,200 per month for a studio, £1,300 for a one-bedroom apartment and £1,585 for two-bedrooms.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Build-to-rent operator launches ‘portable tenancies’ at London developments | LandlordZONE.

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‘DWP’s faltering payments system is forcing landlords to consider eviction’

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Problems with the DWP’s Alternative Payments Arrangement (APA) system for landlords with tenants in receipt of Universal Credit (UC) is helping make the homelessness problem worse, it has been claimed.

Benefits advisory firm Caridon Landlord Solutions says the DWP’s recent decision to close its online APA portal to new applicants means landlords with financially vulnerable tenants who want to be paid the rent directly are struggling to get APAs set up and are being force to consider eviction instead.

As LandlordZONE has reported on numerous occasions, landlords wishing to set up APAs have been frustrated by the bureaucracy that they must overcome to get rent paid directly to them.

Caridon’s MD Sherrelle Collman (main pic), says she understands the huge pressure DWP is under as the number of UC claimants have risen from 2.9 to 5.9 million during the pandemic.

“But when tenants are struggling to meet their rent payments, we know that APAs not only have a significant impact on limiting arrears, they also help to sustain the tenancy,” she says.

“The Government wants landlords to support tenants, but there has to be a middle ground.”

“The landlords we are speaking to say they are going back and forth on the phone, only to be told they will be called back by a case manager, then hearing nothing.

“We’ve seen a 20 per cent uplift in landlords wanting our assistance to set up APAs, and all were at the point where they were considering serving notice to their tenants because they had no other choice.”

Paul Shamplina of Landlord Action (pictured) says his company is inundated with calls from desperate landlords.

“If landlords are now confronted with yet another barrier to access direct payments, it is inevitable that many more landlords will be encouraged to serve notice on those tenants in receipt of Universal Credit, which goes against the government’s intensions,” he says

“Ministers needs to provide more resource to facilitate the onboarding and management of the Universal Credit system so that landlords and tenants can work together. 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘DWP’s faltering payments system is forcing landlords to consider eviction’ | LandlordZONE.

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