RICS: ‘Rents to rise even more as tenant demand jumps but landlords leave’

admin    Uncategorized     agents

The rental market continues to race huge structural problems including low supply, high demand and rising rents, the latest housing market survey by RICS has revealed.

Its surveyors reported that last month tenant demand continues to rise at a ‘solid pace’ including a significant number of estate agents taking part in the survey reporting noting more enquiries from prospective tenants.

Set against this, RICS says landlord instructions to market properties dropped again last month and, given this mismatch of supply and demand, rents are expected to rise across the UK even more in the coming months, agents reported.

Rents are expected to rise by 4% on average nationally over the next 12 months, the report reveals.
Chris Baker of London firm McDowall’s, says: “The lettings market is suffering from a contin­ued lack of supply with tenants staying far longer in their homes.

“Some experienced landlords are keeping rents steady, preferring to allow good quality tenants to remain in their homes.”

John Chappell of Skegness firm, Chappell & Co, says: “Despite growing demand from prospective tenants, our landlords have all instructed us to hold back on rent reviews until at least Spring 2023, to see what effect the current crisis has on tenants’ ability to afford their rent this winter.

“More landlords are selling up due to uncertainty in the market.”

Simon Rubinsohn (pictured), Chief Economist at RICS, adds: “The imbalance between demand and supply still appears unusually extended leading to rent expectations in the survey remaining at elevated levels and it is difficult to see this changing anytime soon in the current environment.”

View Full Article: RICS: ‘Rents to rise even more as tenant demand jumps but landlords leave’

Scots eviction and rent-rise ‘ban’ legislation will just cost landlords more money – claim

admin    Uncategorized     agents

Property solicitor David Smith has cast doubt on the effectiveness of Scotland’s Cost of Living (Tenant Protection) Bill, which he believes could end up forcing landlords to bear more of the debt burden and direct them towards quitting the sector.

The Bill creates third-generation rent control, meaning that rents are controlled – but float freely – within tenancies, explains legal firm JMW’s Smith, who adds that this does not really reduce overall rent increases in the long term as they will eventually rise to the market level.

“It motivates tenants not to leave properties, even where they might be better served by moving because while in tenancy their rent is restricted, by moving they will have to pay the (often higher) market level,” he says.

“That means that there is less property churn and lower availability for those coming into the market looking for properties. Given that Scotland is already suffering from a shortage of available rented property it seems likely that this Bill will make that problem worse rather than better.”

Longer notice period

The Bill also prevents anyone from being evicted by prohibiting a decree of removing (the Scots’ version of a warrant of possession) which actually gives a tenant six months’ notice of the making of the decree.

There are exemptions for criminal and anti-social behaviour, substantial arrears and landlords needing property back to sell due to financial hardship or to occupy themselves.

“However, it is worth noting that the Bill also amends previous legislation such that substantial rent arrears means that the tenant is in six months of arrears, which is rather higher than now,” adds Smith. “The clear direction of travel is to force landlords to bear more of the debt burden and to give them options to leave the sector if they want out.”

Read more about the new Scots legislation.

View Full Article: Scots eviction and rent-rise ‘ban’ legislation will just cost landlords more money – claim

Alphaletz free webinar with Mark Alexander – is a Limited Company right for you?

admin    Uncategorized     agents

Alphaletz will be hosting a free webinar with Mark Alexander (Founder of Property118) on  Tuesday the 15th and Wednesday the 16th of November to outline the benefits of a company structure and see if it’s right for you.

Richard Jackson

View Full Article: Alphaletz free webinar with Mark Alexander – is a Limited Company right for you?

Rental market picks up steam while house sales stall

admin    Uncategorized     agents

Demand across the lettings market is high and continues to push rents up, the latest surveyors’ report reveals.

RICS says that tenant demand continues to rise at a ‘solid pace’, with a net balance of +46% of survey participants noting an increase in October.

View Full Article: Rental market picks up steam while house sales stall