UK Mortgage & Property Related News
Average monthly rents in Great Britain have increased by £74 in the last year, as landlords continue to exit the market.
A new report shows that landlords are buying far fewer homes than before, resulting in tenants having less choice and facing higher costs.
Read on for more about what’s happening to rent prices, and how the new government plans to overhaul the rented sector.
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The market is witnessing a significant shift as a number of landlords exit due to increasing legislative pressures, tax liabilities and the removal of mortgage relief, says Antony Lark, joint CEO of estate agency and lettings group Spicerhaart.
Rents have begun to stabilise, despite the exodus of landlords from the sector and resistance over rent reductions, says Lark.
He explained: “We’re noticing that the level of landlords leaving is higher than anticipated – particularly among those who’ve retired, who need the money to meet rising living costs, or are helping children buy first homes, or who’ve concerns over inheritance tax.
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Falling property values and soaring rents make flats the most profitable option for landlords, according to new research.
The findings from Inventory Base show that flats currently offer the highest returns for BTL investors.
Despite a slight decrease in average flat prices, rental values for flats have surged by 9.3% annually, outpacing all other property types.
The property inventory specialist compared average yields across flats, terrace homes, semi-detached and detached properties.
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Thousands of landlords in England are facing increasing costs due to selective licensing schemes imposed by local councils, according to a Freedom of Information request.
The FOI request by insurer Direct Line revealed that landlords in areas which require a licence are being charged £700 on average to get one.
Councils in certain parts of England require landlords to get the selective licences in order to to rent out property, in the hope that this will improve standards and quality.
The schemes require landlords to meet certain standards of management and maintenance and are often accompanied with regular property checks.
A licence typically lasts for a maximum of five years once granted, but councils can opt to issue them for a shorter period.
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In a statement which appears to go against the trend of much of the lettings sector, Connells says it sees no sign of landlords quitting the buy to let sector.
This appears at odds with data from some organisations and agencies – including Hamptons, owned by Connells – which appear to show fewer landlords in the sector now than in recent years.
But the Connells Group – in its trading statement for the first half of 2024 – says rental supply ended June with 24% more properties available than at June 2023.
And it says that the company “saw no significant signs of landlords exiting the market” with some 77% of properties re-let at the end of their tenancies. That’s the same figure as last year.
The average tenancy length was 30.9 months, about 10% up on a year ago.
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Successive tax raids on buy-to-let investors have fuelled Britain’s rental crisis, the boss of Foxtons has said.
Guy Gittins, who heads up the London-focused estate agent, said private landlords have been driven away by a dearth of government incentives, which has reduced the number of available properties to rent.
The UK’s housing crisis has only worsened since the pandemic, he said, prompting the recent surge in rental costs.
According to Mr Gittins, the previous Conservative government “created an environment that was not attractive or profitable” for new landlords to enter the market.
He said: “It needs to be taken very seriously. We need anything that will encourage people back into the private rented sector.
“Ultimately, the UK needs tens of thousands, if not hundreds of thousands, of extra rental [homes] to manage the price growth and make sure it is tempered as much as possible in the medium term.”
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A rogue landlord who was also a letting agent in Essex has been banned from being a landlord for three years.
Ruhul Mohammed Shamsuddin is now prevented by law from letting houses, engaging in letting agency work or managing properties, and could face both imprisonment and a fine of up to £30,000 if he breaks the banning order, which applies to England only.
He is also prevented from being involved in any company that carries out any of the duties outlined above.
His banning order has been secured via a First Tier Tribunal Property Chamber after Shamsuddin was convicted last year of half a dozen offences in relation to a property at 12, Clifftown Road in Southend-on-Sea (main image) at Colchester Crown Court.
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Average buy-to-let (BTL) mortgage rates have fallen to the lowest levels since September 2022, but remain well above 5%.
While falling rates are good news for landlords, those due to remortgage will face higher repayments, and investors might still think twice before expanding their portfolios.
Here, Which? explains what’s happening to BTL rates and reveals the cheapest deals currently on the market.
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New research reveals three in 10 Brits aged 18-34 can afford to buy a home but choose to rent, with renting a big topic of focus for the Labour party following their landslide victory, which includes plans to protect tenants more and new energy efficient targets.The research, conducted by popular rental brand UNCLE, has delved into British renters’ stance on renting vs homeownership. Being financially stable enough to get a foot on the property ladder is a huge factor when it comes to buying a home. However, UNCLE’s research found…
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Strong rental demand and lending standards could mean the buy-to-let sector emerges from the downturn sooner than expected, UK Finance said.
The volume of lending for buy-to-let (BTL) house purchases more than halved over the course of 2023, according to a banking and finance industry body.
The number of new mortgage deals being granted for this purpose fell from 25,280 in the fourth quarter of 2022 to 12,422 in the first quarter of this year.
Rapidly rising interest rates played a major role in this trend, making it harder for those looking to buy a BTL property to pass lenders’ affordability tests, UK Finance said.
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