Rental prices look set to increase faster than house prices over the next five years, according to the Royal Institution of Chartered Surveyors (RICS).
When it comes to house prices, chartered surveyors said that they anticipate an increase of just less than 20% over the next five years, while rents are expected to rise at a faster rate of 25% during the same period.
This is owed mainly to an anticipated reduction in housing supply in the private rented sector (PRS), as more buy-to-let landlords either exit the market or reduce the number of properties they have in their portfolios, as a consequence of tax changes.
The introduction of the 3% stamp duty surcharge on buy-to-let homes last year and the phasing out of mortgage tax relief from this April will inevitably push some landlords out of the market, and this is likely to result in more tenants chasing fewer rental properties, according to surveyors.
Jeremy Blackburn, head of policy at RICS, said supply in the market needed a “turbo boost”, while Simon Rubinsohn, chief economist at RICS, added that the “the scale of the challenge the Government faces as it announces its new approach to housing is clearly demonstrated in the results from our latest survey”.
Given the inadequate supply of housing in the UK, combined with the pressures facing the buy-to-let sector, it is not that surprising that rents are expected to rise by 25% over the next five years, according to Charles Haresnape, group managing director of mortgages at Aldermore.
He said: “This [RICS latest report] further supports our view that additional assistance is required for smaller developers which could go some way to alleviate the slow progress in addressing this [housing] deficit. In light of the housing white paper released this week, the latest RICS survey highlights the scale of the challenge the government faces.”
Tuesday, 14 February 2017
Thursday, 2 February 2017
Endsleigh claim letting agents save landlords £2k pa
Insurers Endsleigh surveyed* landlords who say that using a letting agent saves them £1910 a year more than if they marketed their own properties.
As one of the country’s leading specialist insurance providers for letting agents, landlords and young professionals, Endsleigh surveyed 500 UK landlords to uncover what it says are “widespread misconceptions” among landlords about the true value for money offered by lettings agents.
Staggeringly, says the company, more than half of the landlords surveyed (53%) currently choose to rent out at least one of their properties privately without the help of an agent, with more than two in five of those indicating that cost is a reason for this.
The claimed savings are related to services which help to let properties quicker, guarding against costly void periods. Three in four (76%) of respondents reported that their agent also helps them with legal and financial matters.
The survey also suggests that relationships between letting agents and landlords are not just about the financial benefits. Half of landlords (50%) were most attracted to their current agent because of their local knowledge, and more than two in five (44%) claim that excellent service is a deciding factor.
Another factor identified was “quality of life”. Two in five (41%) feel that the main benefit of working with an agent is that it provides peace of mind, and a quarter of landlords (25%) communicate with their lettings agent on a weekly basis.David Hadden, Head of Property, Endsleigh said:
“Landlords who use letting agents find them very useful – especially before a letting – and state they help to reduce stress, free up time and, critically, save them money.
“The perceived cost of using a letting agent is among the biggest deterrents for many landlords, but those that do use an agent are on average reporting significant savings.
Landlords considering letting their properties directly to tenants in light of changing legislation must seek advice to avoid potentially compromising their income, their quality of life and the provision of support and service that agents can offer.”
*This research was conducted by OnePoll on behalf of Endsleigh, and was of 500 UK landlords that rent out at least one property through an agency from 20 October 2016 to 14 November 2016.
As one of the country’s leading specialist insurance providers for letting agents, landlords and young professionals, Endsleigh surveyed 500 UK landlords to uncover what it says are “widespread misconceptions” among landlords about the true value for money offered by lettings agents.
Staggeringly, says the company, more than half of the landlords surveyed (53%) currently choose to rent out at least one of their properties privately without the help of an agent, with more than two in five of those indicating that cost is a reason for this.
The claimed savings are related to services which help to let properties quicker, guarding against costly void periods. Three in four (76%) of respondents reported that their agent also helps them with legal and financial matters.
The survey also suggests that relationships between letting agents and landlords are not just about the financial benefits. Half of landlords (50%) were most attracted to their current agent because of their local knowledge, and more than two in five (44%) claim that excellent service is a deciding factor.
Another factor identified was “quality of life”. Two in five (41%) feel that the main benefit of working with an agent is that it provides peace of mind, and a quarter of landlords (25%) communicate with their lettings agent on a weekly basis.David Hadden, Head of Property, Endsleigh said:
“Landlords who use letting agents find them very useful – especially before a letting – and state they help to reduce stress, free up time and, critically, save them money.
“The perceived cost of using a letting agent is among the biggest deterrents for many landlords, but those that do use an agent are on average reporting significant savings.
Landlords considering letting their properties directly to tenants in light of changing legislation must seek advice to avoid potentially compromising their income, their quality of life and the provision of support and service that agents can offer.”
*This research was conducted by OnePoll on behalf of Endsleigh, and was of 500 UK landlords that rent out at least one property through an agency from 20 October 2016 to 14 November 2016.
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