• Slowing? Growing? What’s really happening in today’s property market?

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    The sun has finally returned to ours skies and you’re on the lookout for a little bit of summer reading. As keen follower of the property market, you’ve naturally signed up for all the daily newsletters charting the goings on in the market to make yourself a property whizz by autumn. 

    But after reading all the different articles and opinions, you soon become confused. Very, very confused!

    One day you read that property prices are slowing, that the time to secure a sale is getting longer and that purchaser demand is in decline.  

    The next day you see there’s been a surprise rise in mortgage applications; that asking prices are on the up and that more properties are being placed on the market than in recent times. It doesn’t exactly lead to a clear view of reality, does it?

    In the industry, we’re coming into contact with Joe Public each and every day and for a great many ‘normal people’, news headlines can lead to a huge amount of confusion and it’s our job, I believe, to instil some clarity and honesty.

    But what is that reality?

    Well, in my view it’s that things are all pretty positive. Rightmove recently reported that prices are at an all-time high, whilst Property Week highlighted that the number of properties being marketed across the UK’s top towns and cities is significantly up compared to last year.  

    At its most basic, that means that average prices are up at the same time as transactions are increasing – that’s surely a win, win situation and I believe it demonstrates that green shoots really are out there.

    Of course, reports and indices are all well and good, but they’re often measured using different criteria in different places at different times and, therefore, don’t provide useful points of comparison.  

    And indeed, ‘the’ property market probably isn’t, in all honesty, a single entity in any case. The market is more likely a combined mixture of many micro markets, not just based on regions but on localised need, suburban nuances and individual circumstance.

    For a business such as Andrews, however, we do gain a pretty good insight into what’s happening out there. Our branch network extends across a diverse geographical landscape and while that is, admittedly, just across the South of the UK, there’s no denying the stark differences that can be seen between South London suburbia and rural Gloucestershire – no-one would expect a one-bedroom flat in Stroud, Gloucestershire to command a similar value to its counterpart in South West London, would they?

    Naturally, there has been some cooling off in recent times and the speed of recovery varies from one area to another. What appears consistent, however, is that demand is encouragingly high across the board, albeit with purchasers and renters alike being increasingly discerning.

    In London (where some would lead you to believe the market is in freefall), our sales teams report a cooler market but one which remains encouragingly active. Similarly, sales demand in the South West remains high and the teams there anticipate price increases during the remainder of this year, albeit at a slower pace than they’ve witnessed before.  

    And it’s a positive message in the lettings sector too where all our key markets are reporting an increasingly buoyant market where quality property stock is letting faster than ever. 

    These aren’t areas that we’re comparing against one another. They’re simply places where confidence in property is buoyant and as an industry, it’s that which we need to remain focused on.  

    I honestly believe that confidence is key and right now, there’s little reason not to be confident… unless you allow yourself to be too swayed by some headlines, of course!

  • https://www.estateagenttoday.co.uk/features/2018/4/slowing-growing-whats-really-happening-in-todays-property-market

• Some landlords struggling with ‘complex’ BTL legislation

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    New buy-to-let regulations are making it harder for landlords to keep up to speed with complex compliance responsibilities, as the government drives to improve standards in the private rented sector, according to a new survey.

    There are now no fewer than 145 individual laws and more than 400 regulations to follow, which means that it is surprisingly easy for even the most well-meaning landlord to end up breaking the law.

    A new survey by TheHouseShop has found that almost one in five landlords - 18.2% - now find it “impossible” to keep up with constant regulation changes, with a further 29.9% saying they find it “very difficult” and another 31.2% finding it “quite difficult”.

    The study suggests that some landlords are being overwhelmed by the sheer volume and complexity of rules and regulations in the rental market.

    In fact, compliance with law and legislation was listed as the most challenging aspect of managing a rental property by 63.4% of landlords surveyed.

    Nick Marr, co-founder of TheHouseShop, commented: “It’s a really difficult environment that landlords are operating in at the moment. The government have undertaken a range of measures to try and drive up standards in the rental industry, and while this is by no means a bad thing, it does mean that landlords have increasingly complex and wide-ranging responsibilities to deal with.”

  • https://www.landlordtoday.co.uk/breaking-news/2018/4/some-landlords-struggling-with-complex-btl-legislation

Britain’s housing market is broken. Here’s how Labour will fix it

We plan to build genuinely affordable homes for the millions of people priced out of the system

The housing market is broken, and, after eight long years it is clear that current Conservative housing policy is failing to fix it. Ministers talk big about housebuilding targets to be reached some time in the next decade. But what new homes we build, and who they’re for, matter just as much as how many we build.

To make housing more affordable, we need to build more affordable homes, and to hardwire housing affordability through the system, from planning to funding to delivery. The public know this: eight in 10 people think ministers should be doing more to get affordable housing built.

We will build for those who need it, including the very poorest and most vulnerable, with a big boost to new social rented homes. And we will also build Labour’s new affordable homes for those in work on ordinary incomes who are priced out of the housing market and being failed by housing policy. This is the “just coping” class in Britain today, who do the jobs we all rely on – IT workers, HGV drivers, joiners, warehouse managers, lab technicians, nurses, teaching assistants, call centre supervisors, shop staff.That’s why Jeremy Corbyn and I are launching Labour’s green paper: Housing for the Many. It will be Labour’s lodestar as we set out our ambition to build 1m genuinely affordable homes over 10 years, including the biggest council housebuilding programme for over 30 years. In the past, this scale of ambition was seen as common sense – a Labour government will show that it still makes sense. Because even the word “affordable” has been corrupted and discredited under the Tories, we will redefine and reclaim affordable housing – doing away with the Conservatives’ bogus “affordable rent” at up to 80% of market rates and replacing it with genuinely affordable homes to rent and buy linked to average incomes.

We must start by halting the huge loss of the vital affordable homes we already have. So we’ll stop the sell-off of 50,000 social rented homes a year by suspending the right to buy, ending all conversions to “affordable rent” and scrapping the government’s plans to force councils to sell the best of their homes. We will transform the planning system with a new duty to deliver affordable homes, an English Sovereign Land Trust to make more land available more cheaply and an end to the “viability” loophole that lets commercial developers dodge their obligation to deliver affordable homes. And we will back councils, housing associations and community providers with the funding and flexibility to build big for their communities. 

Our efforts to transform affordable housing has been redoubled after the terrible fire at Grenfell Tower, a tragedy that shocked the nation. When a country as decent and well-off as ours cannot ensure something as basic as a safe home for all its citizens, things must change. And when Grenfell survivors contributing to our green paper say that “tenants were victims before the fire” and “we’re treated as second-class citizens in social housing”, then radical, root-and-branch reform is needed. So we will make safe homes for all the very highest priority, with sprinklers fitted in high-rise blocks and fire safety the first standard in a new decent homes programme. And we will give new rights for affordable housing residents, including tenants on boards, a new national tenants’ commissioner, new transparency standards and a vote on estate regeneration schemes.

The green paper is a signal of our intent and ambition to fundamentally change the housing prospects for millions of people in this country – and to lead a new national debate about how we can finally bring an end to Britain’s housing crisis.

-John Healey is shadow secretary of state for housing and planning.

https://www.theguardian.com/commentisfree/2018/apr/19/britain-housing-market-broken-labour-council-houses

Research reveals many tenants in England don’t complain over fear of eviction

Quarter of a million households in the private rented sector in England put up with shoddy or unsafe homes and don’t complain as they fear eviction, new research suggests.

Overall some 28% of tenants who have experience problems do not complain and also fear that if they do their landlord might increase their rent, according to the report from Citizens Advice.

The research also found that repairs and maintenance is the most common issue that private tenants needed help for with more than 13,000 issues about problems such as mould, electrical faults and pest infestation dealt with by advisers last year.

The national charity is calling on the Government to use the planned introduction of an ombudsman for private landlords to further protect tenants from what it calls ‘revenge eviction’.

Last year Citizens Advice recommended all private landlords be required to join a dispute resolution scheme after it found 41% of tenants waited longer than is reasonable for repairs to be carried out. As a result 33% of people gave up, 13% paid out of their own pocket and 7% relocated.

The report says that tenants who rent privately face a complicated path for redress against their landlord when they have a problem with their home. Some 48% did not think their landlord or agent had a complaints process.

The vast majority, almost nine in 10 Citizens Advice staff interviewed for the research said people most often come for support after reporting the issue to their landlord or letting agent several times and 13% of tenants who experienced a problem didn’t complain because they were unable to contact their landlord or didn’t know how to.

The charity says any redress scheme for private renters should be simple to use, with a single, recognisable portal through which tenants can register complaints and it should have the enforcement powers to punish rogue landlords and mandatory membership so all renters are protected and landlords who ‘let and forget’ are included.

Landlords who receive the most complaints should pay more towards the running of an ombudsman, keeping the costs low for the majority, the charity added.

‘People who rent shabby or unsafe homes have few options when landlords let them down. Resolving disputes can be risky, costly and complicated. Our research shows many of these tenants fear eviction or rent hikes if they make a complaint about a problem including repairs, letting agents fees or deposit returns,’ said Gillian Guy, chief executive of Citizens Advice.

‘We welcome the Government’s proposal to extend redress to all private renters, bringing it into line with other consumer markets. However, for any scheme to be successful it must be simple, free and ensure renters are protected from losing their homes simply for raising a complaint,’ she added.

https://www.propertywire.com/news/uk/research-reveals-many-tenants-england-dont-complain-fear-eviction/

• PropTech start-up wants progress on counting rent towards creditworthiness

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    One of the six PropTech start-ups shortlisted to develop a system allowing tenants’ rental histories to count towards their creditworthiness says it welcomes industry support for the change. 

    RentalStep has thrown its weight behind the Creditworthiness Assessment Bill, put forward last year by Big Issue founder Lord John Bird; it is currently awaiting a third reading in the House of Lords before being debated in the House of Commons.

    "We are delighted to see the cross-party and property industry support this movement has received so far and we relish the opportunity to continue working with the government to make this much-needed requirement a reality for all tenants" says Mike Georgeson, founder and chief executive of RentalStep.

    RentalStep is already working to provide a solution to this long-standing problem with its TenantPassport.

    This allows landlords and letting agents to verify tenants' monthly rental payments. RentalStep has also partnered with Experian, meaning that as tenants pay rent on time over a prolonged period, their credit score will subsequently increase.

  • The startup was recently named as one of six winners of the government's Rent Recognition Challenge; this offers a £2m fund to tech firms developing solutions that allow tenants to share their rental payment histories with mortgage lenders and credit reference agencies.
  • Along with each of the five other winners - whittled down from 43 entrants - RentalStep has received £100,000 to support the development of its product.
    The next stage of the competition will see three or four of the shortlisted receive further funding with their products marketed to the industry and public.
    "It's now time to further develop our platform while continuing to raise awareness of the Creditworthiness Assessment Bill and the importance of these issues for future generations" says Georgeson.
    "More people are choosing to rent for lifestyle reasons and for longer periods of time, meaning they’re likely to build up a history of payments which should provide a useful insight into their financial situation.
    "Rent is often described as 'dead money' but if it contributes towards helping renters get a loan or mortgage in the future, it can become much more valuable."
  • https://www.lettingagenttoday.co.uk/breaking-news/2018/4/proptech-start-up-wants-progress-on-counting-rent-towards-creditworthiness

The build-to-rent sector is ‘evolving quickly’

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    There has been a sharp rise in the number of build-to-rent homes complete, under construction and in planning across the UK, according to the British Property Federation (BPF).

    The BPF’s first set of annual data on the build-to-rent sector reveals that the total number of build-to-rent homes complete, under construction and in planning across the UK has increased by 30% in the past year.

    In the UK there are now 117,893 build-to-rent homes – new, high-quality and professionally-managed homes built for renters – across all stages of the development lifecycle, compared to the total of 90,761 homes at the end of the first quarter of last year.

    When looking specifically at the number of completed build-to-rent homes, the total has increased by 45%, growing from 14,371 to 20,863, in the corresponding period.

    This figure is even higher for the number of build-to-rent homes under construction, which has increased by 47%.

  • For the first time, included in the total figures for 'in planning', the research has tracked the capacity of strategic sites across the country identified for build-to-rent.
    A total of 17,578 homes have been earmarked by local authorities and developers for delivery on these sites.
  • The number of homes provided by the Build-to-Rent sector has shot up in both London and the regions.
    The regions, however, now have a significant lead over London in approving new developments, with 62% of all build-to-rent homes under construction.
  • BPF with analysis from Savills
    Outside London, the North West leads with the highest volume of build-to-rent homes complete, under construction and in planning.
    BPF with analysis from Savills
    Ian Fletcher, Director of Real Estate Policy, BPF, said: “The build-to-rent sector is evolving quickly, with significant delivery in the regions and more houses, rather than just apartments, coming forward.
    “Policy is also adapting, as to date the sector has grown without a planning blueprint. This is now changing. With the draft revised National Planning Policy Framework, local authorities will now have to specifically identify how many new rental homes their respective areas need. This has never before been enshrined in UK planning policy.
    “Clearly, there are exemplar local authorities across the UK leading the charge, giving build-to-rent a chance to expand in the regions and demonstrate that it can cater for a wider range of people. The sector, however, has significant potential to deliver more professionally-managed homes for all renters seeking higher quality service and facilities.”
  • https://www.landlordtoday.co.uk/breaking-news/2018/4/the-build-to-rent-sector-is-evolving-quickly

Rents stable across the UK, up 0.9% year on year, latest index shows

Private sector rents across the UK recorded a modest rise in the first quarter of 2018 and growth of 0.9% in the last 12 months, the latest index shows.

It means that rents have been more or less unchanged in 2017 compared with annual growth in 2016 when rents increased by 4% in the first half of the year, according to the data from tenant referencing firm HomeLet.

It also shows that the average rent in the sector is now £912 but when London is excluded from the calculation it falls to £75, up 1.1% on an annual basis, while average rents in London were £1,569, up by 1.5% year on year.

It is a different scenario in Scotland were rents have increased by 5.6% year on year. The East Midlands saw rents increase by 3.3% while in Northern Ireland and the West Midlands there was a rise of 2.4%.

In the North West rents increased by 2.1% year on year, by 0.6% in Yorkshire and Humber, by 0.3% in the East of England and by 01.% in the South East and the South West of England.

Average rents fell the most in Wales with a decline of 3.2% while they were down by 2.5% in the North East of England.

On a month on month basis growth was led by London with average rents up 2.1%, followed by Scotland with a rise of 1.9%. Rents also increased by 0.5% in Wales and the East Midlands, by 0.4% in the West Midlands and by 0.1% in the North West and the South East on a monthly basis.

According to Martin Totty, chief executive of HomeLet, the rental market is going through a period of stability with rents rising slower than consumer price inflation while house prices have continued to rise.

‘This data shows that a year into the three year phasing-in of changes to buy to let landlord taxation, rental inflation so far has remained steady rather than increasing as some commentators had predicted,’ he said.

https://www.propertywire.com/news/uk/rents-stable-across-uk-0-9-year-year-latest-index-shows/