BREAKING: Rents across the UK rising fastest for 14 years, reports Zoopla

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Annual rental growth has reached a 14-year high, pushing UK monthly rents up to £995, an increase of £88 a month compared to the start of the pandemic.

Zoopla’s quarterly Rental Market Report reveals a strong bounce-back from last year when average UK rents were down by more than 1%.

While London had seen falls of 10% last year, demand for flats from students, office workers and international tenants pushed growth to an extraordinary 25% in Q1.

Rental demand is now strongest there, as well as in Scotland and Wales, with levels more than 65% above the five-year average, according to Zoopla.

London’s market is also one of the most constrained when it comes to stock levels, with homes available to rent at just over half the five-year average, creating conditions for the sharp rises in rents.  

Longer tenancies

It reports that with renters facing increased pressure on their disposable income, there’s been a marked increase in those deciding to live in their rental property for longer; tenants are staying on for an extra five months compared to five years ago, taking the average tenancy to 75 weeks.  

However, affordability considerations will start to put a limit on further rental growth, says Zoopla’s head of research, Gráinne Gilmore (pictured).

She says: “Rents are likely to continue rising for longer in areas which have the most constrained stock levels – currently London, Scotland and the South West.” 

Gareth Atkins, lettings MD at Foxtons, adds that steadily increasing demand, severely limited stock and a swift rise in rental prices are all proving to be compelling reasons to renew.

“Through Foxtons’ renewals department, we have seen a 29% rise in renewals year-on-year vs 2021. Renters are also choosing longer tenancies to avoid a market in flux.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Rents across the UK rising fastest for 14 years, reports Zoopla | LandlordZONE.

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LATEST: Landord to pay £230,000 after ‘squashing’ unauthorised flat into building

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A landlord in London has three months to pay a ‘proceeds of crime’ confiscation order totalling £230,000.

The eye-watering sum follows an investigation by Southwark Council into a block of flats on Boyson Road in Walworth (main pic) operated by Highbrow Properties Limited, whose sole director is Iftikhar Ahmed (54) of Mount Drive, Wembley.

This investigation found that Ahmed had illegally ‘squashed’ seven flats into a development that only had planning permission for six units, while three of the flats featured additional unauthorised bedrooms that added to the already ‘cramped and sub-standard conditions’.

All of the units were also let as unauthorised temporary accommodation and short-term holiday lets which led to constant comings and goings at the flats, parties and general disturbance to local residents.

After the council launched a prosecution, Ahmed pleaded guilty to the charges and has now faces confiscation proceedings, under the Proceeds of Crime Act.

Demolish

The council has ordered Ahmed to demolish the unauthorised flats or correct the development so that it met with the original planning permission and told to stop using the properties for temporary accommodation.

Following the guilty pleas, the court agreed that Ahmed had illegally gained £230,000 in rent, as established by specialist financial investigators from Southwark’s Trading Standards team.

Ahmed faces two years in prison if the confiscation order is not paid within three months, and his company must pay fines and costs of £25,000, while Ahmed must pay fines and costs of £13,000.

“This blatant attempt to shoehorn an extra flat and additional bedrooms, compromised the entire block,” says Cllr Darren Merrill (pictured), Cabinet Member for a Safer, Cleaner Borough.

“This court result serves as warning that planning control breaches will not be tolerated and supports the council in cracking down on those who try to benefit from renting illegal and sub-standard properties in Southwark.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Landord to pay £230,000 after ‘squashing’ unauthorised flat into building | LandlordZONE.

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LATEST: Landord to pay £230,000 after ‘squashing’ authorised flat into site

admin    Uncategorized     agents

A landlord in London has three months to pay a ‘proceeds of crime’ confiscation order totalling £230,000.

The eye-watering sum follows an investigation by Southwark Council into a block of flats on Boyson Road in Walworth (main pic) operated by Highbrow Properties Limited, whose sole director is Iftikhar Ahmed (54) of Mount Drive, Wembley.

This investigation found that Ahmed had illegally ‘squashed’ seven flats into a development that only had planning permission for six units, while three of the flats featured additional unauthorised bedrooms that added to the already ‘cramped and sub-standard conditions’.

All of the units were also let as unauthorised temporary accommodation and short-term holiday lets which led to constant comings and goings at the flats, parties and general disturbance to local residents.

After the council launched a prosecution, Ahmed pleaded guilty to the charges and has now faces confiscation proceedings, under the Proceeds of Crime Act.

Demolish

The council has ordered Ahmed to demolish the unauthorised flats or correct the development so that it met with the original planning permission and told to stop using the properties for temporary accommodation.

Following the guilty pleas, the court agreed that Ahmed had illegally gained £230,000 in rent, as established by specialist financial investigators from Southwark’s Trading Standards team.

Ahmed faces two years in prison if the confiscation order is not paid within three months, and his company must pay fines and costs of £25,000, while Ahmed must pay fines and costs of £13,000.

“This blatant attempt to shoehorn an extra flat and additional bedrooms, compromised the entire block,” says Cllr Darren Merrill (pictured), Cabinet Member for a Safer, Cleaner Borough.

“This court result serves as warning that planning control breaches will not be tolerated and supports the council in cracking down on those who try to benefit from renting illegal and sub-standard properties in Southwark.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Landord to pay £230,000 after ‘squashing’ authorised flat into site | LandlordZONE.

View Full Article: LATEST: Landord to pay £230,000 after ‘squashing’ authorised flat into site

The days of ballroom auctions could be over, says leading industry figure

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Traditional property auctions may never return after being scrapped during Covid, according to one top auctioneer, who says going virtual has led to many more people wanting to take part.

Director of Auction House London, Andrew Binstock (main picture), believes there is no real appetite to rush back – although that could change.

“Auctioneers see the current model as so much more effective and so much easier than the old model of bidding,” he tells LandlordZONE. “No one has yet worked out how you can have a ballroom auction with all the best bits of live-stream auction.”

With live-stream, bidders have to pre-register so an auction house knows what the bidding will be and can advise vendors to drop the reserve price or even withdraw a lot, saving everyone time.

“Previously you’d get 500 people turn up and no idea who was bidding,” he explains. “Now, everyone has got so used to doing in-depth analysis.

Vendors get a full report about the interest, while a buyer can sit in their pants and go on their laptop for a few minutes, rather than spend hours coming up to London, trying to park and then losing out on a bid.”

Stock volume has increased by 50% post-Covid and lots are up from 120 to 180 at each event.

Landlord exodus?

About half its properties are bought by cash buyers, probably professional investors, however, Binstock doesn’t believe landlords are off-loading their properties, just that there has been an increase in traders – those who buy a property and then sell it straight on through an auction.

Binstock admits that these dealers and traders would love to go back to how it was. “When a property went unsold they made a beeline for the contact desk to target the vendor when they were at their most vulnerable. Now, they have to call the office – that sense of immediacy has gone.”

Although the auction house has embraced the change, Binstock doesn’t believe another development, the Modern Method of Auction – a conditional sale where either party can renege on the deal – will take off in the capital. “Most people going to auctions want a certain sale,” he adds.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The days of ballroom auctions could be over, says leading industry figure | LandlordZONE.

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Listed Building work conversion of Grade 2 listed use class E to Takeaway?

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Permitted Development PD and listed building conversion work. Linda Wright and Andrew Roberts are back answering Planning Permission questions and Gorilla investor poses some great ones today.

Today we seek to answer the following questions.

1) Can you use permitted development to undertake a commercial conversion on a listed building?

View Full Article: Listed Building work conversion of Grade 2 listed use class E to Takeaway?