NEW: 36% of tenants would accept a rent increase from a good landlord

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New research within the private rented sector has unearthed surprising attitudes to rent increases among tenants.

Uswitch asked 2,000 renters whether they would accept an increase when renewing their rental contract and found that on average 36% would accept an increase while 50% said they would not.

The others, some 10% of those surveyed by the mortgage and insurance platform, said they would quit their home rather than face an increase in the hope of finding somewhere cheaper.

Tenants reported that they were more likely to accept an increase if they had a good relationship with their landlord with older renters more likely to accept a rent increase than younger ones.

By ‘good relationship’ tenants said they meant landlords who were good at communication, upkeep of the property, those who abided by the terms of the rental contract and who were aware of their responsibilities.

Positive values

“It is clear from our survey data that tenants place a lot of importance on the positive values that go into a successful landlord-tenant relationship,” says Uswitch spokesperson Kellie Steed (pictured).

Tenants who do not accept rent increase demands from landlords will soon have extra tools at their disposal when the Government’s Renters’ Reform Act becomes law, most likely next year.

This aims to prevent landlords in England increasing their rent more than once a year, and make it easier and quicker for tenants to challenge unjustifiable or excessive rent increases through the First Tier Tribunal system.

The most recent English housing survey found that almost 11,000 households in the private rented sector reported moving recently because their landlord put up the rent.

Read more about rent increases.

View Full Article: NEW: 36% of tenants would accept a rent increase from a good landlord

Be wary of property courses offering ‘quick routes to success’ says expert

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Leading landlord and evictions figure Paul Shamplina has warned those seeking property investment training to be “wary of courses which seem to provide easy shortcuts to success”.

His comments were made over the weekend within an investigation by The Telegraph newspaper into the ‘no money down’ property investment training sector.

As LandlordZONE has reported many times, these courses encourage investors to become rent-to-rent landlords by sub-letting properties through ‘property deals’ from superior landlords/legal owners and then renting them usually as HMOs for a profit.

What some of these courses fail to highlight is the inherent financial risk of doing this, the difficulty of sourcing deals or the increasing property licencing regulation that now covers many rented properties.

Money

“The reality is to get into property you have to have some money,” says Shamplina.

“The no-money-down dreams seldom come true. Education is absolutely imperative for investors but you can get a lot of the information for free online or at landlord events.”

The Telegraph article focusses on one such ‘no money down’ trainer, who charged one student – a nurse – £7,254 including a £3,000 course sign-up fee, nearly £600 in management fees and £3,666 to be mentored all for minimal return on the outlay.

Investors looking for trustworthy and ethical operators should turn to the PEAS or Property Educators Accreditation Scheme.

Launched in 2021 and backed by LandlordZONE, its founder Cyril Thomas said at the time: “PEAS will help future students looking for a property educator to discover ‘the good guys’ who have signed up to be ethical and transparent, and that it will strike a balance between cooperation and enforcement”.

View Full Article: Be wary of property courses offering ‘quick routes to success’ says expert

BREAKING: £17.9 billion landlord bill for EPC upgrades revealed

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Private landlords face a combined bill of £17.9 billion to upgrade their properties to a minimum EPC band C by 2025, with landlords in the capital facing the largest bill at £3.2 billion.

Knight Frank’s figures highlight the looming crunch within the private rented sector presented by the EPC upgrade requirements, funding details of which the Government in England and Wales has yet to publish following its recent consultation.

Flora Harley (pictured), Head of ESG Research at Knight Frank, points out that while 13% of renters are willing to pay a premium for a low carbon property, the average annual rent in 40% of local authorities wouldn’t cover the £9,260 required spend to bring a property up to EPC band C.

She says her new EPC upgrade cost data is based on the expenditure cap of £10,000 per property.

This is the figure over which Ministers have decided landlords can apply for an exemption because the expense would make rental properties uneconomic to upgrade.

Average cost

Despite sounding high, previous research has highlighted that the average cost of upgrading a dwelling previously rated EPC band D or below to a band C is £9,260.

Although this varies, landlords with a property in EPC rating band D, for example, typically spent £5,500 on the necessary improvements to move to band C, with this figure doubling to over £10,000 on average for properties in bands F and G.

“If legislation is passed, the additional cost pressures placed on landlords – which come on top of rising mortgage costs, changes to mortgage interest relief and the erosion of capital gains tax allowances – may lead some landlords to look to rationalise portfolios or leave the sector entirely,” says Harley.

Pinch points

This map shows the local authorities with a high proportion of PRS propeties that would need upgrading to reach an EPC band C certificate.

View Full Article: BREAKING: £17.9 billion landlord bill for EPC upgrades revealed

Council’s selective licensing scheme slammed by tribunal

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A council’s selective licensing scheme has been criticised by a First-tier Tribunal (FTT) for covering a wide area rather than focusing on areas with rogue landlords and anti-social behaviour.

The comments come in a Rent Repayment Order (RRO) decision after a case was brought by Justice for Tenants to support a claim by a tenant couple.

View Full Article: Council’s selective licensing scheme slammed by tribunal

Rent increase – tenant won’t pay?

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Hello, Today I increased the rent on a flat from £1,400 to £1,600, effective 1 June 2023, which is the tenancy anniversary date.

I advised the tenant verbally and also sent the new agreement.

The tenant has stated he won’t pay.

View Full Article: Rent increase – tenant won’t pay?

Average holiday home investor income rises by 59% since 2019

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The UK’s largest holiday home rentals website has published shocking figures that reveal the average income earned by property investors on its platform.

Sykes Holiday Cottages’ Holiday Letting Outlook Report 2023 reveals that its average owner saw an income of £24,000 last year, 59% up on 2019.

This rose to £33,000 for a three-bedroom property, and £57,500 for a let with five beds or more.

These figures would suggest that the pandemic boom in staycations continues, helped by the cost of living crisis and Sykes says the Easter weekend saw a year-on-year 16% rise in bookings.

But the ongoing boom in holiday home investment will add fuel to an already raging debate around the effect of holiday homes on housing markets in vacation hotspots such as Cumbria and the South West of England, and the need for more regulation, including a national licencing scheme.

Graham Donoghue (pictured), the firm’s CEO, says:  “We’re still seeing a significant number of new holiday home owners join us despite the rising cost of living, and positively for owners, bookings and income levels are continuing to grow.

“The government’s impending review into the sector can’t be ignored and our research would suggest that this is on holiday let owner’s radars too.

“However, at this stage, our view is that any immediate changes for the sector are quite unlikely amid other priorities in government.”

Read more: ultimate guide to short-let properties.

According to a poll of UK holiday home owners commissioned for the report, 25% are very worried about the potential of new regulations or fees being enforced, with a further 52% somewhat worried.

Read the report in full.

View Full Article: Average holiday home investor income rises by 59% since 2019