Stamp Duty Holiday Housing Market brokers Support RICS property investment House prices Government Scottish housing market Remortgage instructions Masthaven
Marketing No Comments

Support from letting agents will be crucial for landlords affected by rent arrears

Landlords will need the support of letting agencies to ensure they have a comprehensive record of all arrears and communications with tenants, according to rental platform PayProp.

Four in five agencies have seen the share of tenants in arrears grow since March.

Following a big jump in April, the percentage of tenants in arrears has climbed to over 15%.

The average amount owed by tenants in arrears has also grown in relation to their monthly rent, although around a third of agencies actually saw arrears reduce as tenants began repaying the amount owed by them.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Neil Cobbold, chief sales officer at PayProp, said: “After an initial surge in March when Covid-19 started to spread rapidly across the UK, heightened levels of rent arrears could persist for many months to come, despite many tenants settling some of their debt.

“Measures like the furlough scheme and Universal Credit increases have helped tenants to continue paying their rent, but payments are still less predictable than usual, and the furlough scheme is almost at an end.

“It’s therefore hugely important that letting agencies are on hand to help their landlords deal with rent arrears and associated issues.”

Digital record-keeping provided by letting agencies can help landlords to stay on top of rent arrears, allowing them to see how much is owed and by which tenants.

Agencies can also help landlords to create payment plans for tenants to pay back arrears over a manageable period of time.

BY RYAN BEMBRIDGE

Source: Property Wire

Marketing No Comments

Agents anticipate rent increases in 2020

The majority (84%) of letting agents think rent prices will rise next year, up from two thirds (65%) last year, ARLA Propertymark has predicted.

More than three fifths (61%) think demand will continue to increase, but almost seven in 10 (68%) reckon the number of landlords operating in the private rented sector will decline next year, as they are driven out by rising costs.

Indeed, two thirds (68%) expect landlords’ taxes to rise again.

David Cox, chief executive, ARLA Propertymark, said: “For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords.

“As a result, much of this year has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or choosing to step away from the sector altogether.

“This has impacted tenants most, who have restricted supply and have been faced with less choice and paying higher rents.

“Looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords.

“This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.”

BY RYAN BEMBRIDGE

Source: Property Wire

business 3362103 960 720
Marketing No Comments

Letting agents report record numbers of landlords heading for the exit

A record number of landlords are now exiting the market, letting agents say.

The ARLA Propertymark Private Rented Sector Report shows that the number of landlords exiting the market rose to five per branch in April, up from four in March, the highest since the data started being recorded in 2015.

The figure had risen for the first time in March after sitting at three landlords consistently since April 2017.

The number of prospective tenants registered per member branch also rose, from 66 to 72 between March and April, the strongest demand since September 2017 when there 79 registered per branch.

However, supply was flat at 179 properties on average per branch.

In comparison, in April 2017 agents managed a similar 185 per branch but in April 2016 they managed 185, and 193 were recorded in 2015.

The research also showed the number of tenants experiencing rent hikes increased to 26% in April – the highest since September 2017 when 27% of landlords put rents up for tenants.

This was up 24% year-on-year.

David Cox, chief executive of ARLA Propertymark, said: “The barrage of legislative changes landlords have faced over the past few years, combined with political uncertainty, has meant the buy-to-let market is becoming increasingly unattractive to investors.

“Landlords are either hiking rents for tenants or choosing to exit the market altogether to avoid facing the increased costs incurred. This in turn is hitting renters most, at a time when a huge number of people rely on the rented sector, and leaves us with the question of where will these people find alternative homes?

“As demand for private rented homes massively continues to outstrip supply, the Government can no longer divert its attention from the broken housing market.

“The recent news that the Government is regulating the industry is a step in the right direction, but ultimately we just need more homes.”

Source: Property Industry Eye