LATEST: Average rent hits highest EVER record of £1,199 a month

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The average monthly rent in the UK is now a record-breaking £1,199, according to HomeLet, which advises landlords to prepare for more tenants being unable to pay.

Its rental index figures for April – using data on achieved rental values from 5,000 letting agents – show rental prices continuing to rise, up 1.3% from the previous month’s average of £1,184. When London is excluded, the average rent is £1,006, up 1.3%. 

The South East and Scotland both saw the largest monthly variance – a 2.1% increase – with average rents rising to £1,277 and £868 a month respectively. London rental prices continue to increase, with prices hitting £2,003 in April, 1.2% above the previous month.

Spiralling

Andy Halstead, HomeLet  & Let Alliance CEO, says with every region showcasing a monthly and annual rise, it regularly hears about tenants struggling to find available rental properties. Offers for rental properties were often rising above the asking price, with many landlords receiving multiple offers for their properties. 

He says: “The quantity of rental properties on the market is showing no signs of a sudden rise, so prices are likely to continue to rise, with prospective tenants left with a battle on their hands to secure a suitable property.” 

Rising rents coupled with the continued high cost of living means that rent guarantee insurance should be a serious consideration for all landlords, advises Halstead.

“Spiralling rental costs and dwindling disposable income is sure to result in more tenants finding themselves unable to pay their rent, and landlords must be prepared for this.”

View Full Article: LATEST: Average rent hits highest EVER record of £1,199 a month

EPC upgrades and tenants ‘terrified’ of bills creating more damp, politicians told

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Increasing numbers of landlords are reporting damp and mould problems after forking out for energy efficiency work, it has been claimed.

John Blackwood (pictured), chief executive of the Scottish Association of Landlords, told MSPs that it had seen a significant increase in calls about damp and mouldy properties from members, particularly those who had not previously had an issue.

“Members are finding problems with homes as a direct result of putting insulation into a property,” he explained. “This is due partly to issues with insulation and fitters doing the work – you don’t know how good or bad these people are until you get a problem.”

Terrified

Giving evidence to the Scottish Parliament’s housing committee, Blackwood said tenants reported that they weren’t switching on their heating because they were terrified of bills, which had also caused problems.

Groups giving evidence said tenants should not automatically be blamed for issues in their homes or criticised for not knowing how to cook potatoes and showering too frequently. Instead, fuel poverty and under-investment in social housing had to be addressed.

Aoife Deery, social justice policy officer at Citizens Advice, added: “Clients get blamed for their lifestyle, but it often links back to fuel poverty and high energy costs – they can’t afford to lose heat through proper ventilation.

“It’s often expensive and difficult to diagnose damp and mould – that’s why we see delays of months or years.”

Housing and tenant bodies were generally supportive of private landlords, with Debbie King, head of advocacy at Shelter Scotland, saying they needed support and funding to upgrade current homes.

Living Rent agreed that there should be a funding pot around retrofit and Shona Gorman, of Central Scotland Regional Network of Tenants, agreed: “We can’t just say to landlords ‘you have to deal with this’ and walk away – they need support.”

Watch the session in full.

View Full Article: EPC upgrades and tenants ‘terrified’ of bills creating more damp, politicians told

Tax to double for Airbnb rental properties in Scots holiday hotspots

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The Scottish Government has followed its English counterpart and revealed plans to manage the number of second homes and holiday rentals more aggressively within the country’s key tourism hotspots.

Its proposals include enabling local authorities to either double or more than double council tax in these areas for second homes in order to encourage ‘more residential accommodation to be used for living in and for these to be occupied for more of the time’, the document says.

It is also seeking landlords and owners’ views on increasing the ‘non-domestic’ rates charged on self-catering accommodation.

“Local areas need to decide how to achieve the right balance in the use of housing to meet local needs and to support thriving communities,” the official announcement adds.

“That is why we are also asking for views on whether the current non-domestic rates thresholds for self-catering accommodation should change, and/or if councils should have discretion to set them.”

The three MSPs backing the consultation, which include housing minister Paul McLennan (pictured), say that over the past decade the growth of online platforms like Airbnb and Booking.com has fueled the trend for residential homes, particularly in tourist hotspots, to be changed from primary homes to be used for short-term lets or second homes.

“This can cause problems for neighbours and make it harder for local people, particularly young people or those with fewer resources, to find homes to live in,” says McLennan.

“We also remain concerned about the number of empty homes in Scotland, which could potentially be brought back into use for people to live in.”

Second homes

Definitions are important in the debate, and the MSPs say a ‘second home’ is an additional residence not used as a main home but lived in for at least 25 days a year.

An ‘unoccupied home’ is a property not used as a main residence or a second home.

Such properties will have the increased council tax applied if they are offered to rent commercially for more than 140 days a year, and rented for more than 70 days a year.

The main thrust of the new proposed tax policies is that, if a property is not used for whatever reason (i.e. as a second home or simply not used) then the owners will be required to contribute more to the local economy, not less.

Read the consultation document, which includes detail on how to respond.

View Full Article: Tax to double for Airbnb rental properties in Scots holiday hotspots

Rising rents force tenants to become first time buyers

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While house price growth has slowed to 3%, the country’s high rents mean it is cheaper for tenants to buy, research from Zoopla reveals.

The platform says that the worst of the house price falls ‘is over’

View Full Article: Rising rents force tenants to become first time buyers

National Grid insulation scheme?

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Hello, has anyone had any dealings with any contractors who are applying for government funding for insulation under the National Grid insulation scheme?

I have a flat that is a bit low on insulation. It has been agreed by the surveyor it can be topped up for free and they have put me in touch with the actual company that will be doing the work.

View Full Article: National Grid insulation scheme?

Women renters welcome at novel new block – but men shown the door

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Britain’s first women’s-only tower block has been given the green light by planners in west London.

The scheme for 102 flats will be available to single women renters at low social rents for those who face inequality, abuse and disadvantages in the housing market.

Men will only be able to live in the block if they become a tenant’s partner or if they are the adult child of a female tenant and inherit the tenancy. Transgender women, including people intending to undergo gender reassignment, will be allowed, but men who cross-dress, transgender men, and anyone with a known history of male violence against women or children will not.

Ealing block

Design details at the 15-storey block in Ealing could include slightly lower kitchen work surfaces and careful attention to ventilation to ensure comfort for menopausal women, according to landlord Women’s Pioneer Housing (WPH), which also plans to build another low-rise women’s-only complex in Shepherd’s Bush. The scheme is being developed in partnership with L&Q, one of London’s largest housing associations.

Domestic violence

WPH chief executive Tracey Downie told The Guardian that the block would be home to women who “have been unable to afford good affordable housing themselves because of their level of income or vulnerability”. This may be because they have been sexually harassed by a private landlord, are full-time mothers relying on income from a partner from whom they are now separated or have been the victim of domestic violence.

However, the plan sparked a flurry of comments on social media from those who feared vulnerable women would be at risk from biological men who identify as women, while others accused it of discriminating against men.

View Full Article: Women renters welcome at novel new block – but men shown the door

Landlords must ACT NOW to reduce tax payable on account this JULY

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Payments on account are advance payments towards your tax bill for the following year based on the tax you owed in the previous year. These payments are due in two instalments, one on January 31st and the other on July 31st.

View Full Article: Landlords must ACT NOW to reduce tax payable on account this JULY

Guarantor for tenants?

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Hello, If anyone has children in university, they’ll be familiar with the annual signing of the guarantor agreement, promising to pay the rent should your young student fail to do so themselves – and, if you don’t read the agreement carefully

View Full Article: Guarantor for tenants?

Airbnb scam alert? A landlord’s tale of deceit, tenant troubles and growing costs

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Hello, I am writing to report a situation regarding the leasing of my flat in South West London. I enlisted the services of a small local agency and we eventually found a tenant, a Canadian citizen who visited the property with his girlfriend.

View Full Article: Airbnb scam alert? A landlord’s tale of deceit, tenant troubles and growing costs

How We Escaped The Landlord Tax Trap

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On paper my spouse and I were worth £3,000,000 but the reality was that we had no savings, no money whatsoever to live on after paying our tax bills, and this was despite having rental income of £300,000 a year coming in.

View Full Article: How We Escaped The Landlord Tax Trap