Research reveals cost benefits to tenants of living in an HMO

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Renters living in a one-bedroom flat can combat the cost of living by moving into an affordable shared house, while HMOs provide landlords with a confidence-building financial buffer against increasing portfolio expenses.

We recently conducted an analysis which revealed that renting a high-quality room in an HMO is more than 50% cheaper compared to single-tenancy letting.

View Full Article: Research reveals cost benefits to tenants of living in an HMO

Selective licensing for landlords is a massive rip-off

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Let’s call selective licensing for landlords what it is: an unfair mandatory tax that is a massive rip-off.

Sure, council officers and councillors will tell everyone how they are going to crack down on rogue landlords, but they don’t actually do that.

View Full Article: Selective licensing for landlords is a massive rip-off

LATEST: Savills predicts 8% of all rented homes will be build-to-rent by 2032

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The number of build-to-rent (BTR) homes is set to increase five-fold in the next decade – from 76,800 to more than 380,000 – according to research from the British Property Federation and Savills.

They predict that the sector could be worth £170 billion by 2032 when 8% of UK homes for rent will be purpose-built, up from 1.5% today. Single-family homes are set to make up almost a fifth (18%) of BTR stock in ten years’ time, up from 12%.

Since the UK’s pilot scheme opened at the Stratford Olympic Village in 2012, the neighbourhood has become a BTR success story and home to 7,000 residents. Ten years on, £30 billion has been invested in the sector nationwide, which now has 163,400 homes in the planning and delivery pipeline.

Fans of the model

While developers and investors initially focused on London, since 2017 there has been a shift towards other cities led by Manchester, Birmingham and Leeds. Many local authorities are now fans of the model, with 47% having BTR in their housing pipelines, compared with just 20% five years ago.

Jacqui Daly, director of residential research at Savills, believes that the demand for high-quality, professionally managed homes for rent is only going to increase, not only for the core demographic of graduates and young professionals but also for single families, couples and individuals of all ages.

Ian Fletcher (pictured), British Property Federation’s director of policy, adds: “The current market conditions underline that we must continue to diversify housing supply in order to drive economic growth, and the government must continue to look at how planning reform, more support for local authorities and the release of land for development can enable the sector to continue its upward trajectory.”

View Full Article: LATEST: Savills predicts 8% of all rented homes will be build-to-rent by 2032

LATEST: Letting agents report ‘rapid rise’ in tenants seeking properties to rent

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The number of home-hunting tenants has continued to climb rapidly this year while the number of available homes to rent has come to a standstill.

Propertymark’s latest housing insight report reveals that since February, letting agents have seen an 88% increase in new tenants wanting to register, reaching a new peak of 147 in September, despite rising rents.

In contrast, each member branch reports having just 11 properties available since June. This means an average Propertymark letting agent would have had one property available for 13 new registrants in September – and that’s on top of those already registered.

Rising rents

It found that 74% of agents reported month-on-month rent prices increasing last month, down slightly from 82% in July but still much higher than the pre-pandemic average for September of 34%.

Propertymark CEO Nathan Emerson (pictured) says the UK sector’s reform continues to affect the sentiment of landlords who have also been hit with rising costs, impacting their annual yields. As a result, the trade body believes there will be no end to affordability issues until many more homes are added to the market.

“The pressure is on for private landlords, and the situation is not improving,” adds Emerson. “Raising interest rates, increasing legislation and tax burdens mean that many landlords are faced with increasing their rent to cover their rising costs or to cut their losses and sell.

“Landlords have been demonised recently, but in truth they provide homes for those who can’t be served by social housing or afford to buy.”

Read more: Complete 2022/2023 tax guide for landlords.

Pic credit: TheConnorFinn/Twitter

View Full Article: LATEST: Letting agents report ‘rapid rise’ in tenants seeking properties to rent

Major bank inks deal with Shelter to help customers fight their landlords

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HSBC banking brand First Direct has signed up Shelter to offer its customers living within the private rental sector advice to fight their landlords.

This includes help on how to fend off unaffordable rent increases and eviction notices.

The deal is to last for 12 months and will see tenants offered the service for free via a dedicated team within First Direct who will work alongside experts from Shelter.

First Direct says the backdrop of fast-rising rents within the UK private rental sector and the wider cost-of-living crisis prompted it to set up the partnership with Shelter, which will also offer debt and welfare support as well as housing advice.

Chris Pitt (pictured), CEO of First Direct says: “No-one should face the prospect of homelessness. Our partnership with Shelter aims to support private renters who find themselves in difficulty.

“We believe that our customers should feel they can come to us for help when they need it.  

“Our dedicated team and the experts from Shelter will be taking a hands-on approach to tackling the difficulties many private renters are facing as landlords pass on the costs of rising bills and mortgage payments.

“This is just part of the support we’re offering customers during this difficult time.” 

First Direct is freer than many other banks to sign this sort of deal because it does not offer landlords insurance or buy-to-let mortgages.

Frontline services

Polly Neate, Chief Executive of Shelter, adds: “Our partnership with first direct will help their customers access vital housing advice and support at a time when they need it most.

“It will also help our frontline services continue providing free and expert support to thousands of other people facing homelessness, as well as helping us campaign for lasting change.” 

View Full Article: Major bank inks deal with Shelter to help customers fight their landlords

Rising interest rates and tax changes – finding certainty in uncertain times

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Manoj Varsani, founder and CEO at Hammock, the property finance platform for landlords, looks at the implications of the government’s Making Tax Digital initiative.

Everywhere you look and in everything you do, it’s seemingly impossible to avoid reminders of the wider economic downturn and the likelihood of an upcoming recession.

View Full Article: Rising interest rates and tax changes – finding certainty in uncertain times

Should empty homes be taxed?

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Hi everyone, Would it not be a good idea to tax properties that are left empty and disincentivise them from remaining outside the available housing stock?

A residential property, in my opinion, should not be used purely as an investment as it should be used firstly as a home while the housing crisis is at such a peak.

View Full Article: Should empty homes be taxed?