Homes for Ukraine scheme: FAQs

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This has been a very widely commented on topic with Mick Roberts’s article, Can I really house the Ukrainian People? I want to, however….., so the latest government FAQs have been included below: Click here

For sponsors:

Anyone registering online on Homes for Ukraine will be kept updated.

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Isn’t it the same for Private Landlords?

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Interesting article stating that social housing providers are having to divert money put aside for essential property maintenance to adhere to safety reforms: Click here

Have they forgotten about private landlords here too? This is going to cripple the private sector without adding in the fear of heavy fines and prosecution (for which SHP’s seem immune).

View Full Article: Isn’t it the same for Private Landlords?

NRLA mourns loss of John Stewart

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The National Residential Landlords Association is sad to confirm that its Deputy Director for Policy and Research, John Stewart, passed away over the weekend after being diagnosed with cancer.

Ben Beadle, Chief Executive of the NRLA said: “We are desperately sad to learn of John’s passing.

View Full Article: NRLA mourns loss of John Stewart

Specialist mortgage lender sees green shoots appearing

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Managing director Lucy Barrett told MortgageStrategy that confidence is retuning to the lending market and especially for specialist lending products such as bridging loans.

Barrett says that the market has been highly unpredictable over the last couple of years, yet now, with most restrictions being lifted, and the experience of 12 months of lending in the specialist commercial finance market, confidence and predictability is beginning to return for 2022.

Overall lending levels are still down compared to pre-pandemic levels, but the way the housing market bounced back driven predominantly by stamp duty relief, specialist finance provided by Barrett’s company, she says, came into its own, seeing in particular in “bridging” lending “a huge resurgence, helping buyers who needed money quickly.”

Surging demand

The fallout from the past 24 months, Barrett says, is likely to bring demand for more complex financing cases, which is where the specialist market excels. And the surging demand in the residential sector is now impacting on the commercial property market as well.

According to Vantage, in 2021 their bridging business was up 38% year on year. “I don’t think this demand will diminish soon,” she says. The housing shortage, exacerbated to some extent by the stamp duty holiday, has resulted in the current housing crunch, with demand outweighing supply and residential property price wars.

Such a situation has led to an increased demand for bridging loans. They’re one way to beat the homebuyer chains and delays in the market. Barrett sees bridging, and in particular regulated bridging, being in continued demand.

In 2021 it seems, regulated bridging loans accounted for an average of over 40% of all contributor transactions, while using the facility as a way to fund “a chain break’ was the second most popular use of bridging finance. It represented 18% of all lending, a figure that was up from 17% over the previous year.

With potential buyers currently significantly outnumbering sellers, therein lies the clear reason why residential bridging has come to the fore. To avoid missing their dream purchase, some buyers are willing to take that extra bit of risk and they are using bridging loans to purchase their next property before their own home is sold.

With house prices in some sought after locations rising at rates not seen for many years, it’s no wonder that some private buyers are willing to look to less conventional methods to secure their next home – the average advertised price of a home has risen by £40,000 since the pandemic started. This compares to just £9,000 in each of the previous two years.

A shortage of land

The UK market is not only suffering a housing shortage, there’s a land shortage as well. The inflated cost of building land has slowed the pace of new developments, limiting supply that would otherwise stabilise prices.

A Federation of Master Builders survey reveals that 63% of small builders are struggling to find viable building plots, and with planning system delays and materials shortages their ability to build the number of homes they would like is severely limited.

Home working along with remote working has increased the demand for homes with more space, but at the same time they have reduced the demand for office space. This has led to more re-purposing of commercial units, helped by changes in permitted development rights, the converting of offices and commercial premises into residential properties has seen a boom.

Many commercial buildings are currently for sale at reasonable prices says Barrett, and “although I think the property market will begin to settle this year in the wake of the impact of the stamp duty holiday, I also believe the specialist finance market will return to pre-pandemic levels of lending.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Specialist mortgage lender sees green shoots appearing | LandlordZONE.

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Signs of post-Covid normalisation in retail and leisure activity

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According to research data released by the Local Data Company (LDC), Britain’s retail and leisure sector is beginning to stabilise, suggesting that the worst of the pandemic impact is over. Their figures show that as vacancy rates rose slightly in the first half of 2021, in the second half this trend was reversed, most noticeably in the leisure sector.

The second half of 2021 saw the first vacancy rates in retail and leisure decline for the first time since the first half of 2018, a sure sign says LDC that the market is stabilising. Over the full year 2021, however, national vacancy rates increased by 0.7%, though this figure is still lower than expected given the lack of activity in the first 3 months, due to the lockdown – see the chart below.

The retail vacancy rate hit a record high in 2021, but peaking in the first half of the year at 15.8%, coming down again in the second half, with a 0.1% decrease. The retail vacancy rate currently sits at 15.7%, a figure that now looks set to decline further as more retail and leisure units are taken off the market, converting to other uses. Businesses are also returning to acquiring new sites.

The leisure sector is showing the most promise, with definite signs of recovery, despite restrictions on hospitality continuing well into 2021. The leisure vacancy rate figure has dropped from 11.3% to 11.0% over 6 months— the largest decrease says LDC since its records began in the first half of 2013.

Expanding chains and independent food and beverage operators are assisting growth, while increasing freedom from Covid, pent up demand from the various lockdowns, national sports activity such as England’s run in the Euros, and the return of office workers later in the year have all contributed to boosting demand in hospitality venues.

Shopping centres, hit hard by the Covid lockdowns and online shopping, previously seeing the greatest increase in vacancies since the onset of the pandemic, saw a reduction in vacancy rates of 0.3%. It brought the shopping centre vacancy rate figure down to 19.1% at the end of 2021.

Out of town and edge of town retail parks are continuing their trend of carrying the lowest vacancy rates of any retail / leisure location type since 2013, seeing a 0.2% decline in vacancy rates in the second half of 2021.

Britain’s High streets continued to prove more stable than other location types. The vacancy rate for high streets fell by 0.1% in the second half of 2021. However, high street vacancy rates were only up 2.3% on H2 2019, compared to increases of 3.2% for retail parks and 4.8% for shopping centres over the same period.

These figures suggest that high streets were not as heavily impacted by Covid as the other location types due to being less exposed to “at-risk” brands and having a higher percentage of independent occupiers who benefited from additional government support throughout the pandemic.

Vacancy rates are not expected to return to pre-pandemic levels yet though, but they are projected to continue to decline further over 2022, due to the continuing redevelopment and repurposing of retail space.

The year 2021 saw a record increase in the amount re-purposing and redevelopment activity, with an increase of 49%, suggesting that the worst of the pandemic-related closures is over and the industry has shifted its focus from survival to recovery, says LDC.

Lucy Stainton, Commercial Director, Local Data Company says:

“This latest analysis is significant because the figures finally point to a reversal of the structural decline we had seen accelerate with the onset of the COVID-19 pandemic. Going into this, the physical retail market had already been plagued by a number of other headwinds such as online and digital adoption, but the coronavirus brought about long periods of restricted trading and this proved insurmountable for many chains across both retail and hospitality.

“Vacancy rates peaked halfway through 2021 as a result of this but, as we come into 2022, these latest statistics are cause for cautious optimism, with the number of empty shops finally coming down as consumers return to high streets and shopping centres.

“Our analysis points towards this trend continuing as the final shakeout from various CVAs and insolvencies is hopefully behind us and independent operators continue to open new sites. With many chains re-looking at their strategy for growth, the independent sector proving buoyant and an unprecedented level of repurposing and redevelopment, we could be seeing the start of a new phase of physical retailing and we will be tracking this very closely.”

Below – Historical vacancy rates by occupier type across GB, 2013-2021 (Source: Local Data Company)

Below – Redevelopment activity across GB, 2015 – 2021 (Source: Local Data Company)

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Signs of post-Covid normalisation in retail and leisure activity | LandlordZONE.

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LATEST: Trade body launches bid to head off rent controls in Wales

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The National Residential Landlords Association (NRLA) has launched an initiative to try and head off expected rent controls in Wales.

Its Shadow Wales White Paper sets out how the trade body believes the Welsh private rented sector could be improved, as well as pointing out the defects in the coalition government’s proposed restrictions to rent rises.

These were revealed in November last year but Welsh landlords are still waiting to hear the details of how rent controls would work. This includes whether they would be a rent ‘cap’ or restrictions on rises bound to inflation, the most common types proposed by campaigners.

“The NRLA has long held the view that rent controls of any kind simply do not work and do not have the intended effect of addressing affordability in the private rented sector,” the NRLA document says.

The rent control proposals are an output of the country’s Labour and nationalist party Plaid Cymru coalition, as both parties are keen on rent controls, although recent media coverage points to both sides not seeing eye-to-eye on how they should be implemented.

Longer notice periods

The coalition has also been instrumental in shaping other even more radical measures including new, longer ASTs and longer notice periods, announced earlier this year.

But the NRLA says its own research shows that only 11 per cent of landlords said they planned to increase the number of properties they let out whilst far more, 37 per cent, plan to cut the number they rent out.

“Our White Paper sets out what must be done in Wales to build a fairer, more inclusive PRS for both tenants and landlords and the damage that outmoded notions of rent control could have on the market,” says Ben Beadle, Chief Executive of the NRLA.

“Ultimately, with affordability and supply issues continuing to dog the Welsh private rented sector, rent controls would exacerbate these ongoing problems and fail to provide a solution fit for the twenty-first century.”

The social sector is already subject to a rent rise cap, which sets out how much social landlords can increase rents each, subject to an annual review, the most recent of which was published recently.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Trade body launches bid to head off rent controls in Wales | LandlordZONE.

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Landlords urged to help tenants to take in Ukraine refugees as thousands apply

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Huge numbers of tenants are keen to sign up for the Homes for Ukraine scheme, says the Guild of Property Professionals, which has urged them to work closely with landlords.

It says there have been growing numbers of enquiries from tenants who are unsure about the rules, while several lettings agents have asked for guidance about the scheme, which launches today.

Compliance officer Paul Offley explains that if a tenant wants to offer accommodation, they will need to have a spare room available in their property and would also need the landlord’s consent.

“The DLUHC have stated that sponsors will be asked to offer a minimum of six months’ accommodation, which would need to be taken into consideration by both the tenant and the landlord before agreeing to be a host,” says Offley.

This means that a landlord might have a problem if they wanted to end the tenancy at an earlier date, he adds.

The government is currently in the process of providing more detailed guidance, which should be published within the next day or two, according to the Guild.

“This guidance will include information around the status of the arrangement, required accommodation standards and the checks that will be done on the sponsor, as well as the person they will be hosting,” he explains.

“It is important to remember that the sponsor will have to be matched to the person they are hosting.”

While tenants will not be able to charge rent, the government will hand out an optional ‘thank you’ payment of £350 per month to hosts.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords urged to help tenants to take in Ukraine refugees as thousands apply | LandlordZONE.

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Shadow White Paper for Wales

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Today, in its Shadow Wales White Paper, the National Residential Landlords Association (NRLA) sets the future direction necessary for a fairer, more inclusive PRS in Wales.

The Shadow White Paper, entitled “The Future of Private Renting in Wales”

View Full Article: Shadow White Paper for Wales

LATEST: London council launches own private renters’ union with Generation Rent

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Lewisham Council is working with tenants to launch a dedicated private renters’ union, understood to be the second of its kind in the UK after Southwark set one up during the pandemic.

It wants to give private tenants in the London borough a stronger voice to raise issues and help them access support and advice, and is working with tenants’ advocacy group Generation Rent to find out more about the issues they face by conducting a survey and holding focus groups.

Generation Rent director Alicia Kennedy(pictured) tells LandlordZONE it is organising events that explore private renters’ experience in Lewisham and how they feel they could have a stronger voice in the council.

“As part of this we will encourage participants to consider how they want to engage with Lewisham Council and all options that might improve tenants’ experiences, including support from and engagement with existing groups such as London Renters Union, ACORN and Citizens Advice,” she says.

“We will be sharing the findings of our conversations with private renters in Lewisham and their feedback with Lewisham Council to inform their future decisions.”

The concept has the approval of Shadow Justice Minister Ellie Reeves who flagged it up during a debate this week on housing standards.

Criticised

She told the Commons: “The aim is to provide a link between renters and councils, help the local authority become better informed about the issues that private renters face and what it can do to support them, and help renters to become more knowledgeable about the council services available to them.”

However, the plan has been criticised on social media for trying to undermine current unions such as Acorn and London Renters Union. One Tweet says: “I recommend people join this lovely bunch rather than put themselves at the whims of the same council that leaves so many suffering in poor conditions.”

LandlordZONE has approached Lewisham Council for comment.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: London council launches own private renters’ union with Generation Rent | LandlordZONE.

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Wear and tear or?

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I have just had a tenant move out. My understanding is they should leave a place as they found it.

Immaculate when she got it, but now it’s a dirty tip, belongings everywhere (which I can deal with no problem) looked like it hadn’t been hoovered or cleaned in over a year.

View Full Article: Wear and tear or?