NEW: Shocking lack of rental supply now dogging the ‘spare room’ market too

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Demand for shared rooms is at an all-time high, while supply has hit a nine-year low, according to flat share site SpareRoom.

The shocking figures have also led to average monthly room rents reaching record highs and increasing across every UK region in Q3 2022; Scotland is up 20%, Northern Ireland up 16% and London up 18% where tenants are now forking out £857 a month.

Its poll also revealed that 40% of renters have had to pay over the advertised price for their room, rising to 47% for London renters, with 37% ending up in a bidding war.

SpareRoom says it found 94% of landlords have no confidence in the government’s approach to housing, making it no surprise that 36% plan to reduce their portfolio this year and a further 16% plan to leave the rental market by the end of the year, reducing supply even further.

It points the finger at Section 24, which stopped landlords claiming tax relief on their mortgage interest, alongside a 3% stamp duty surcharge for second properties which has also made it harder for many smaller landlords to make ends meet.

Real worry

SpareRoom director Matt Hutchinson (pictured) says he’s never seen the market like this. “The spike in demand will ease over time, but the real worry is the continued drop in supply. Landlords are leaving the market in alarming numbers and renters are facing an incredibly tough time,” he adds.

“One silver lining is that homeowners are starting to look at renting out their spare rooms to make a little extra cash and help with the cost-of-living crisis. That could provide much-needed supply far quicker than anything government can do and will bring rents down, while helping struggling homeowners too.”

View Full Article: NEW: Shocking lack of rental supply now dogging the ‘spare room’ market too

Council fines HMO landlord £60,000 and directly manages property

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A landlord who left his tenants without gas or electricity in an unlicensed HMO has been fined a whopping £60,000.

Coventry Council made its first Interim Management Order after the landlord persistently failed to licence the property in Monks Road, despite being asked to do so for several months.

Following a complaint from the tenants, environmental health officers discovered it was operating without a licence and that there were multiple breaches of the HMO management regulations.

It made the order as it believed there was no reasonable prospect of the HMO being licensed in the near future.

Tenants will now pay their rent to the council – whose housing and homelessness team is managing the HMO – while the landlord is still responsible for any mortgage payments.

Severe punishments

David Welsh (pictured), cabinet member for housing and communities, says it sends a clear message to landlords.

“The level of the financial penalty notice highlights the severe punishments that can be levied to those who flout the law,” he says.

“These fines are then ring-fenced for use by the team to further their enforcement work.”

Adrian Chowns, property licensing and housing enforcement manager, adds: “Our officers have worked tirelessly in the city to promote the HMO licensing scheme and to ensure that where landlords abandon their duties and responsibilities, the team is ready to step in to protect tenants and use the full range of enforcement powers at their disposal.”

Read more about Coventry’s HMO regulations.

View Full Article: Council fines HMO landlord £60,000 and directly manages property

LATEST: ‘Landlords quitting Airbnb short-lets as strict Scots rules kick in’

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AirBnb owners are switching to long term lettings following changes to Scotland’s short-term lets laws, according to a leading property firm.

In a reverse of the recent trend that’s seen scores of landlords ditch tenancies for holiday lets, DJ Alexander says it has been approached by many of those who are deterred by costs and uncertainty around more stringent regulations.

The rules, which take effect from this month for new properties and from April 2023 for existing lets, mean landlords must apply for planning permission to operate a holiday let – incurring fees and legal costs – and there is no guarantee that it will be approved. Some have also complained that they don’t have clear guidance on how to comply with the new rules.

Breaking point

Chief executive David Alexander (pictured) says it’s welcome news for the long-term residential sector, which is at breaking point, with demand far outstripping supply.

He adds: “While the holiday market may suffer from this loss of accommodation, the long-term rental market welcomes this much-needed addition of housing stock to what is already a market with a severe shortage of properties. I think this trend will accelerate as we head toward next April’s deadline.”

DJ Alexander recently introduced an online system for property viewing requests and in the first month, received 51,887 requests in Edinburgh where there are usually between 100-150 properties available, and 27,601 requests in Glasgow where the firm usually has 40-60 properties.

The longest waiting list for a two-bedroom property in Edinburgh is 788 people and there are up to 900 groups of students on a waiting list for every property.

Read more: New short-lets charter introduced in Devon.

View Full Article: LATEST: ‘Landlords quitting Airbnb short-lets as strict Scots rules kick in’

Bad tenants, worse politicians, S21 – is it over for landlords?

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It’s not looking good for landlords, is it? What with rising interest rates, mortgage availability and the government handing bad tenants an opportunity to live rent-free in our homes!

That’s right. Liz ‘Blundertruss’ has struck again.

First

View Full Article: Bad tenants, worse politicians, S21 – is it over for landlords?

Splitting property to address covenant for single dwelling house?

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I need some advice for a property I am buying, please. It is a corner plot house with an extra large garden extended to one side and back. Apparently, it is an ex-council property with a restrictive covenant of single private dwelling 1980 from the city council.

View Full Article: Splitting property to address covenant for single dwelling house?