LETTING & ESTATE AGENT

Following the government’s update on 13th May 2020 regarding home moving in England during the Covid-19 outbreak, we are pleased to announce our branches in England will start re-opening their doors for booked appointments over the coming weeks. Health and safety remains our main priority, and a number of strict measures will be put in place to protect our staff and customers. Our offices in Scotland and Wales will continue to support customers from home. Visit our branch page to find contact details for your local office.

The Industry In A Nutshell

The Industry In A Nutshell

HMOs subject to further change

The government has proposed an extension to the current HMO licensing regulations. Under a new consultation, two-storey houses and bungalows, with particular bedroom measurements and five or more sharers, will be mandatorily licensed as an HMO. The proposal still requires two or more households of five or more people to qualify as an HMO. The government will crack down on landlords who are exploiting too many tenants in too-small and unsafe properties, particularly when fostering migrant tenants in houses that are not specifically designed to be used as an HMO.

Buy-to-let lending keeps going up, despite media attention

Buy-to-let lending is at its highest rate since 2007. September 2015 saw a 62pc increase in buy-to-let remortgaging over the same month last year, and a 36pc increase for buy-to-let purchases from the same period. There has also been a month-by-month increase in lending. August 2015 saw 22,200 buy-to-let loans issues and 24,100 in September. Of these, more than 11,000 were for buy-to-let purchases. Source: Council of Mortgage Lenders

Target

Homes shifting to private rental sector

More than 2,000,000 homes have changed tenure in the last decade. Three times as many properties (over 1,550,000) went from owner-occupied to rental as rental to owner-occupied (550,000). The number of home-owners has fallen in each of the last ten years. Media coverage will lead us to believe that a significant reversal is about to take place, but the lack of new houses means that the industry will rely on major landlord action to drive a tip of the scales. Source: Countrywide

Tenancy agreement

Rents rise as tenants give up on homeownership

Two-thirds of tenants say that deposits for buying a property are unaffordable. Excluding London, the average national rent is £729pcm, which is not sufficiently above the rate of inflation to make saving for deposits feasible. Renting is becoming the only realistic option for many people as demand continues to heavily outweigh supply. PwC forecast that more than half of 20-39-year-olds will be renting privately by 2025. Rents for new tenancies rose in nine out of 12 regions in the last two months (the exceptions being North West, East Anglia and Northern Ireland). PwC also predict that housing and utility bills will make up more than 25pc of UK consumer spending by 2020. Household expenses is the fastest-growing sector for spending, and is due to increasing rents and lower housing supply. In comparison, spending on food and clothing will go down by 2020. Source: http://www.cityam.com/228456/rising-rents-mean-that-by-2020-over-25-per-cent-of-consumer-spending-will-be-on-household-and-utility-bills Source: Homelet