East Midlands leads growth in existing tenancy rent bills

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UK rents are rising at their fastest since 2016, according to the latest ONS Index of Private Housing Rental Prices.

In the 12 months to April, excluding London, rental prices increased by 3.4%, while in the capital, they increased by 1.1%, up from an increase of 0.4% in March – the strongest annual growth there since November 2020. Private rental prices have grown by 2.5% in England, by 1.7% in Wales, and 2.9% in Scotland in the last year, with the East Midlands seeing the highest annual growth in prices (4%), and London the lowest.

New tenancies

While the latest Zoopla figures showed rents on new tenancies rising by 11% to hit a 14-year high, the ONS index looks at all tenancies, where rents are rising more slowly. Zoopla’s figures also revealed that rental growth in London had risen by a staggering 25% in the first quarter of the year.

Tenants flocking to the capital are driving up rents, according to estate agent Hamptons, which reports that a record 30% of homes let in London this year went to people who previously lived outside the city; those from the Home Counties now account for more than half of tenants moving in. 

Rents surging

Dan Wilson Craw, deputy director of Generation Rent, says rents have been surging since offices and universities opened back up last year, and more people moved back to cities than there were homes available. He adds: “Now landlords are trying to raise rent on existing tenants knowing that if they can’t afford it, it won’t be hard to find a new tenant. This is unsustainable, particularly for the 39% of private renters who rely on Local Housing Allowance which has been frozen.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – East Midlands leads growth in existing tenancy rent bills | LandlordZONE.

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CPI inflation rate hits 9% in the 12 months to April 2022 – Bank of England gives up?

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The latest inflation figures released today by the Office of National Statistics indicate CPI inflation has reached 9.0% in the 12 months to April 2022, the highest rate since recording started in 1997, and up from 7.0% in March. CPI monthly inflation increased dramatically in April to 2.5%

View Full Article: CPI inflation rate hits 9% in the 12 months to April 2022 – Bank of England gives up?

Commercial Rent (Coronavirus) Act 2022 ends government interventions

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The government recently passed into law the much-anticipated Commercial Rent (Coronavirus) Act 2022. This effectively ends government interventions to prevent tenant insolvencies during the pandemic, largely in the form of the extended moratorium on tenant evictions for non-payment of rent.

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Can they build another 2 storeys on top of my block?

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Hi everyone, I own a top floor flat in a 3 storey flat roof 1960’s Block and the new freeholders have sent us all a letter saying they intend to build a further two storeys of flats on top of the building.

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Ignore new fire safety regulations at your peril, HMO property managers warned

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Property managers have been urged to get up to speed with new fire safety rules and regulations that put more responsibility on them to protect tenants in HMOs.

As part of the Fire Reform White Paper, the Fire Safety Act will ensure all blocks of flats are properly assessed for fire safety risks and the Fire Safety (England) Regulations will help people feel safe in their homes.

Grenfell Inquiry

It paves the way for meeting many of the remaining Grenfell Tower Inquiry recommendations and aims to deliver fire safety improvements in multi-occupied residential buildings by making sure fire and rescue services have the information they need to plan their response to a fire and by imposing a minimum frequency for checks on all fire doors in mid and high-rise blocks of flats.

The government has launched a new consultation on its plans to support residents who would find it difficult to evacuate a building. It includes a proposal known as Emergency Evacuation Information Sharing which would require someone to be responsible for fire safety in their building, who could also assess the needs of the most vulnerable residents and consider what might reasonably be done to mitigate any risks to fire safety. 

Risking lives

HMOs sometimes hit the headlines for not considering residents. Last year, landlord Thirunaukkarsu Kulandaisamy, of Littleover, who risked his tenants’ lives at an HMO by failing to protect them from a fire, narrowly avoided jail. Firefighters discovered the power to the fire alarms was switched off, fire doors were inadequate, tenants did not have any means of escape and the emergency lighting was not working. 

Sean Hooker, head of redress at Property Redress Scheme, says a good number of property managers are not ready, or have yet to even start, their preparations. “Hopefully this White Paper process…will help the smooth implementation of the new regime,” he says. “Ignoring these changes will lead to claims for redress and in the extreme cases, a criminal prosecution – so do not take these responsibilities lightly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Ignore new fire safety regulations at your peril, HMO property managers warned | LandlordZONE.

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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?