Rents Rise Gently - But Tenants May Be Persuaded To Pay More

The latest figures from LSL Property Services suggest that rents have increased across the UK by an average 2.5 per cent in the past year with yields stabilising in most areas. The average UK rent is now £829 per month and over the past 12 months only two regions - London and the North East - have seen falls. While the strongest growth has been seen in southern areas in recent years, rents in the North West and East Midlands grew faster than anywhere else in the year to the start of February with the typical monthly rent in these regions 2.9 per cent higher than 12 months ago. Read more on the Letting Agent Today website.

https://www.lettingagenttoday.co.uk/breaking-news/2018/2/rents-rise-gently--but-tenants-may-be-persuaded-to-pay-more-says-lsl

House Prices In England And Wales Finished 2016 On A High

House prices in England and Wales finished 2016 on a high according to the latest House Price Index from LSL Property Services and Acadata. Average prices were up 0.4% (£1,139) in December at £297,678, having almost fully recovered from the March 2016 peak ahead of the introduction of the stamp duty surcharge on second homes and buy-to-let properties. December saw some of the strongest monthly growth since the beginning of the year however, annual growth slowed slightly to 3.1% in December from 3.5% in November. Strong performance in cheaper properties across the country saw every region in England and Wales finish the year with positive house price inflation. Download the figures from the LSL website.

Buy-To-Let Returns 'Will Fall by 60pc in a Year'

Buy-to-let returns will plunge 62pc in the next 12 months, according to Britain’s biggest network of letting agents and property valuers. LSL Property Services predicts that by April 2016 total returns on buy-to-let, taking into account a combination of both rental income and capital growth, will be just 3.4pc, down from almost 9pc today. That return, which would be the lowest in at least four years, would be before mortgages, maintenance and tax are factored in, all of which could push landlords’ investments into the red. Read more on the Daily Telegraph website.

Private Renters in Severe Arrears Rises 4%

Private renters in severe arrears are facing a ‘desperate situation’ as the number of those owing more than two months of rent has gone up 4% on a year ago. As of quarter one 2015 there are 70,900 tenants facing more than two months of unpaid rent, according to the figures released by the estate agency chains Your Move and Reeds Rains, part of LSL Property Services. This is 2,700 more than at the same point last year (4%) and 1,500 (2.2%) more than the previous quarter (last quarter of 2014). The LSL figures also show 28,900 tenants faced a court order for eviction in the first quarter of this year – which is up 2.3% since the last three months of 2014. Read more on the LSL website.

Rent Costs Rise to Record High

Tenants' finances are becoming healthier despite the cost of renting lifting to another record high in October. Average private-sector rents across England and Wales increased to £770 last month, edging up on a previous all-time peak of £768 recorded in September, according to LSL Property Services.  But LSL said that tenants' finances are close to the best level it has ever seen and could be set to improve further in the coming months. Some 6.9% of all rent was in arrears last month, which is the second smallest percentage recorded by LSL. A record low of 6.6% of rents being late or unpaid was recorded in November last year and rent arrears have been as high as 14.6% in February 2010. Read more on the Daily Mail website.

Private Rents 'Hit Record High'

Private sector rents have lifted to a new all-time average high of £761 a month as the peak season for tenants snapping up new homes gets under way, a major lettings network has reported. Rents saw a 2.4% increase in the 12 months to August across England and Wales, meaning they have edged £3 higher than a previous record set in October 2013 of £758 a month on average, according to LSL Property Services, which owns chains Your Move and Reeds Rains. The state of tenants' finances worsened as rents reached their new record levels. Read more on the Daily Mail website.

UK Rents 'Rise By 2% in a Year'

The cost of renting a home has risen by 2% in the last year, with increases seen across nearly every region of the UK, a survey has suggested. The average cost of renting a home stood at £753 a month, according to LSL Property Services. This was up from £738 a month in July last year and was the highest level seen since November. But official figures for the second quarter of the year showed a 1% annual rise in the UK. The Office for National Statistics (ONS) said last month that private rental prices grew by 1% in England, 1.1% in Scotland and 0.2% in Wales in the 12 months to the end of June. Read more on the BBC website.

Working Poor Forced To Spend Half Their Income on Housing

Close to 1.6 million UK households – the housing pinched – are spending more than half their disposable income on the ongoing costs of housing each month.  Of the 1.6 million, retired households and working age households in which nobody works account for just over a third (7 per cent – 110,000 households – and 30 per cent – 480,000 households – respectively). Leaving these two groups aside, there remain close to 1 million working households who are spending over half their disposable income on housing costs. Data from the estate agent LSL Property Services showed rents rising more quickly than inflation, increasing by 2% since July 2013. The Council of Mortgage Lenders (CML)have  also issued a warning on interest rates, despite reporting a fall in the number of borrowers struggling with repayments. Read more on the Resolution Foundation website.

Wage Rises Predicted To Outstrip Rent Increases

The squeeze on renters could begin to ease later this year with property specialists predicting that wage rises will begin to outstrip rent rises by July. LSL Property Services predict that annual rent rises will dip to 1.7 per cent in July, just as wage rises hit 2.2 per cent wage - the first time earnings have beaten rents since April 2010. It's good news for tenants, who will enjoy the most monthly disposable income after tax and rent since 2009. Last year pay increased by a paltry 1.1 per cent, while rent rose by 1.6 per cent. It was even worse in 2012, where rents rose by 3.2 per cent compared to a 1.3 per cent wage increase in the same period. Read more on the Daily Mail website.

Housing Market 'Momentum' Continues

Property sales rose sharply in February compared with a year ago, while rental costs started to go up again, figures have suggested. Sales totalled 84,950 in the month, up from 64,270 in the same month a year earlier, data from HM Revenue and Customs shows. But, owing to the seasonal slowdown in the market, this was the lowest level since April. Meanwhile, rents rose 1.6% year-on-year in February, a survey said. LSL Property Services, which owns Your Move and Reeds Rains, said that rent across England and Wales increased to £743 a month on average. Read more on the BBC website.

Nearly Half of Landlords Set To Raise Rents

Four in ten landlords will raise their rents in the next year, according to a survey by LSL Property Services. One third say they will raise rents above 1% in the next 12 months, with an average estimate of 3.7%. Currently, average rents are rising at an annual rate of 1.5%, according to LSL’s latest buy-to-let index. And 56% of those that intend to increase costs said they will do so to cover the cost of inflation. Read more on 24dash.

PRS Tenants In Severe Arrears Up While Landlords Mortgage Arrears Down

The number of households in England and Wales that owe more than two months’ rent rose by 3.4 per cent to 67,000 in the fourth quarter of 2013. The Tenant Arrears Tracker by LSL Property Services found there was a 2,000 increase from the third to the fourth quarter, up from 65,000. It also found the number of tenants facing eviction notices was up by 11 per cent from the third quarter in 2013 - 30,807 compared with 27,784.However, landlords’ mortgage arrears have dropped for the fourth quarter in a row, ‘continuing a long-term improvement’. Read more on Inside Housing.

Rents Rise Twice as Much as Earnings

The cost of renting in England and Wales rose at twice the pace of earnings over the year to November, placing pressure on tenants' finances and putting property ownership further beyond reach of many would-be buyers. The average amount paid in rent stood at £753 in November, up 1.6% compared with a year earlier, according to the latest figures from the lettings agency network LSL Property Services. The increase is twice the average rise in earnings of 0.8% over the same period, according to figures from the Office for National Statistics. The average salary is now £1,941 a month. Rents rose fastest on an annual basis in London, where they increased by 4.4%, followed by the south-west (3.4%) and the south-east (3.2%). Rents fell by 5.5%, or an average of £42, in eastern England, 2.8% in the West Midlands, and 2% in the north-east, Yorkshire and the Humber. Read more on the Guardian website.

Rents in the Private Sector Are Close To a Record High

Average monthly rents for England and Wales are just £1 behind their all-time high, according to a report. The buy-to-let index, produced by LSL Property Services, shows average rents rose to £743 in August - a monthly rise of 0.7%. The record high of £744 a month was in October 2012. Compared with August 2012, they are up 1.3%. However that is still below the inflation rate of 2.7%. London saw the highest rent increases with prices up 4.8% year-on-year.  Read more on the LSL website.

Tenants 'See Smaller Rent Rises'

Millions of private tenants across the UK are experiencing smaller rent rises than normal, according to two separate surveys.  LSL Property Services, which owns two chains of estate agents, says average rents in England and Wales rose by just 1.8% over the past year.  That is well below the Consumer Prices Index (CPI) inflation rate of 2.8%.  Separately, property company Move With Us says that rents across Britain as a whole fell by 0.32% over the last year. Read more on the BBC website.

More People Are Falling Badly Behind On Their Rent

Between April and June the number of tenants in severe rental arrears - defined as being more than two months behind on payments -  rose by 3.3 per cent over the previous three months, according to figures from LSL Property Services.  The number of tenants in severe arrears rose by 3,000 to 98,000 in the same period, making it the third highest level on record. Those in serious arrears now represent 2.4 per cent of all tenancies in England and Wales.  Read more on the Independent website.

Tenants Faced Rising Rents Again In May

The cost of renting a home in England and Wales rose again in May as tenants faced charges that were 3.5% higher than a year earlier.  Rents rose by 0.1% between April and May, although this was a smaller increase than during recent months.  LSL Property Services said that this meant the average rent was £737 a month - the third highest level on record.  Read more on the BBC website.

Buy-To-Let Landlords Warned Of Rise in 'Severe Arrears'

Buy-to-let landlords are being warned of a rise in the number of UK tenants in "severe arrears". The Tenant Arrears Tracker, published by LSL Property Services, shows the number of renters more than two months behind on payments rose by 4,000 to 94,000 in the first quarter of 2013 - an increase of nearly 5 per cent. This represents 2.3 per cent of all tenants in England and Wales. LSL said severe arrears over the past 12 months are now 20 per cent above the long-term average and that eviction by court orders are also running at a record level and 10 per cent higher than a year ago. Read more on the LSL website.

Campaigners Step up Calls for PRS Reform

Campaigners are calling for reform of the private rented sector after figures showed households are being put under increasing pressure by high costs. Darren Johnson, Green Party member on the London Assembly, said figures show rents rose £54 a month on average in London over the last year. He is calling for rent controls and increased security in the sector.  Mr Johnson cited figures from LSL Property Services which show rents went up 0.5 per cent in the capital between January and February. Overall rents across England and Wales were down 0.1 per cent on January, but up 3.3 per cent on the previous year. Read more on Inside Housing.

Rent Arrears at Highest Level for a Year

More tenants struggled with rent payments last month and arrears levels have reached the highest level since January last year. A total of £326m of rent was either late or unpaid, according to LSL Property Services' buy-to-let index, up from £241m in November.  The cost of Christmas on strained household budgets is likely to be one factor behind the rise, which equates to 10.1% of all rent in England and Wales. With finances under pressure, the study also found that the average rent fell by nearly 1% to £734 a month. However, rents are still 3.2% higher than a year ago – above the 2.7% level of inflation. Read more on the Guardian website.