Modest drop in rental costs heralds busy start to the year

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The average cost of rent fell slightly during December, dropping 1.47% to £1,071, according to the latest Rental Index from Goodlord.

The South West saw the largest reduction of 2.68% to £1,066 while the only region to see an increase was the North East, where prices moved up 1.36% to £800. Average rental costs are now at their lowest since June 2022, however, the year ended with rents up by 8.7% across England compared with 2021. 

Highest prices

The highest rental prices were found in Greater London (£1,796) and the lowest in the North East (£810), the same regional split as Goodlord recorded in 2021.

It reports that the average void period remained unchanged at 20 days during last month as tenant demand continues to come up against lack of stock. The most significant shift was seen in the South West, with a 8.7% decrease, followed by the East Midlands, which experienced a drop of 8%. Greater London had the highest percentage increase in voids up from 12 days to 13 days – a jump of 8.3%. This was followed by the South East, which saw a 5.6% rise in voids, and the West Midlands, with a 4.8% increase. 

Incomes rise

Meanwhile, tenants’ average income fell 2.4% to £30,346 in December, although there was an average 11.1% increase across all regions during 2022. With rental costs rising by 8.7% during the same period, the average increase in tenant incomes outstripped the pace of rent rises.  

Goodlord COO Tom Mundy says: “We always expect to see a dip in activity and a drop in rental averages during November and December, so the steadiness of voids and the very marginal shift in rental costs this month mean we’re likely to see a very brisk pace across the lettings market in the early months of 2023.”

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Ban for letting agent who claimed £100K in Bounce Back loans

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A letting agency boss has been hit with an 11-year ban after repeatedly abusing the Bounce Back Loan scheme.

Laszlo Szabo, the sole director of Letting Base Ltd in London’s Holloway Road, applied for – and was granted – a Bounce Back Loan of £38,000 to support his business, which had formerly traded as Hungarian Lettings Ltd. Five days later he applied for another Bounce Back Loan of £50,000, this time from a different bank. Ten days after this he applied for a £12,000 top-up to the first loan, taking the total borrowed up to £100,000.

Rejected application

The following day he returned to the second bank, seeking a further top-up of £50,000 to the second loan. This time the application was rejected. Under the rules of the government scheme, which aimed to keep companies afloat during the pandemic, a business could only take out one loan, although they could apply for a top-up if the original loan was less than the maximum to which they were entitled.

Letting Base Ltd went into liquidation in January 2022 owing more than £243,000, triggering an investigation by the Insolvency Service. Szabo’s disqualification prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Blatant abuse

However, due to Szabo’s personal circumstances, it is unlikely that repayment of the Bounce Back Loans will be made, says Nina Cassar, deputy head of investigations at the Insolvency Service. She adds: “His blatant and repeated abuse of taxpayer’s money has resulted in a lengthy disqualification, which will serve to safeguard the economy from traders who exploit financial support packages designed to help UK businesses.”

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Demand for London’s rental homes is ‘unseasonably high’

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Tenant demand for homes to rent in London is ‘unseasonably high’ but rent rises are beginning to slow down, one agent reveals.

According to Chestertons, they saw the first signs of the capital’s rental market cooling down in October –

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Replacement guarantor?

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Hello, We rent a house to a young family who have been tenants for 2 years. At the time we asked for a guarantor, which they were happy to provide by way of a family member.

The tenants are now saying that they have had a fallout with the guarantor and would like them removed from the agreement.

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