Void Periods At Record Low In August, While Average Rents Increased

average to just 11 days, the latest industry rental report has found. The shortest average void periods were recorded in the South West, where it took just five days to fill a vacant property in August, eclipsing the region’s previous year to date low of nine days, according to the report from property technology company Goodlord. It says that this was despite a big spike in average monthly rents in the South West, with costs in the region jumping up by 20% to £1,126, up from £942 in July. Last month’s figures were well above the South West year-to-date average rental cost of £938. Read more on the Property Wire website.

https://www.propertywire.com/news/uk/void-periods-at-record-low-in-august-while-average-rents-increased/

Arrears, Collections And Voids Meet Or Exceed Assumptions

Current levels of rent arrears, collections and voids across the sector are within, or outperforming, association business plan assumptions, according to the latest quarterly survey from the Regulator of Social Housing (RSH). The survey – based on regulatory returns from 225 private registered providers (PRPs) and PRP groups who own or manage more than 1,000 homes – shows that, in relation to rent, 86% of providers report levels within their respective business plans. RSH acknowledges responses for each quarter remaining reasonably stable, suggesting providers are managing income collection risks and maintaining cash flows within business plan parameters. Download the survey from the RSH website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/780426/Quarterly_Survey_Q3_-_October_to_December_2018.pdf

Private Rented Sector Stable With Voids At Historic Lows

The private rented sector in the UK is a stable market where yields have seen modest improvements and void periods, the average amount of time PRS properties spend unoccupied, are at historic lows. More than half of those landlords surveyed in the latest trends data report from Paragon Mortgages report steady tenant demand over the quarter, while 40% said tenant demand was either ‘growing’ or ‘booming’. The percentage of respondents expecting tenant demand to remain stable over the coming 12 months, or grow, has also increased from 85% to 89%. The latest data also shows that average yields have grown over the last three months from 6.3% to 6.4%. This improvement is in line with steady growth seen throughout 2015. Read more on the PropertyWire website.

The Housing Association That Will No Longer Build Homes for the Poor

One of the largest housing associations in the UK has announced it would no longer build social housing. Instead, its chief executive said, it will only build homes for sale, for rent at full market rates or for shared ownership. Furthermore, Genesis housing association, which owns and manages about 33,000 homes around London and the south-east, will consider selling or raising the rents on its existing social homes once they become vacant. The organisation claims that government policies have forced its hand, particularly in light of the recent budget. This is strange when you consider that Genesis has funded much of the research that has influenced this government’s housing policy. To blame the government after you have sponsored thinktanks to successfully influence it is no excuse. In reality, it is part of a deliberate, profit-driven strategy that Genesis and other large housing associations have been following for some time. Read more on the Welfare Weekly website.

Arrears Cause Most Stress to UK Residential Landlords

The majority of landlords in the UK find managing their properties stressful with arrears causing the most worry, new research has found.  They are having to deal with complex issues such as new regulations, rent arrears, and tax as well as the everyday issues of repairs, insurance and void periods. The research reveals that rent arrears causes the most stress, cited by 87% of respondents while 80% said dealing with tenant complaints was the main stress, followed by 43 for repairs to properties, 40% the new immigration laws and 28% securing finance to expand their buy to let portfolios. A quarter of landlords cited tax and inland revenue as a major reason for getting worried and anxious, while a third said it is void periods.  Read more on the Property Wire website.

Voids Fall Despite Welfare Reform Fears

Social landlords have reported a drop of nearly 10% in void properties over the past year, confounding sector fears that welfare reforms would trigger a spike in empty homes. An exclusive survey by Inside Housing found 67 landlords across Britain had 8,878 empty properties as of 1 July this year, a 9.7% decrease on the 9,829 reported the previous year. The figure is also down on the 9,583 empty homes the landlords had in July 2012, before the bedroom tax came into effect. Read more on Inside Housing.

Hopkins: It’s Easy to Fill Voids

The housing minister has dismissed claims that larger social homes are becoming more difficult to let due to welfare reform, saying it ‘won’t be difficult’ to house people in them. Kris Hopkins said: ‘I don’t know of any authority out there that doesn’t have a waiting list and it won’t be difficult to find people that fit the shape of those houses. People [working for social landlords] need to be creative and make sure all of those homes are utilised.’ He also said councils ‘may want to sell housing and use that receipt to build what is needed in their local communities’. Mr Hopkins made the comments in the face of mounting concern that a combination of sluggish local housing markets and the bedroom tax is making it more difficult for some landlords to let larger homes. Read more on Inside Housing.

Social Landlords Fearing Explosion in Rent Arrears

Three quarters of the UK's social housing landlords fear an explosion in rental arrears and void properties, according to research by KANA Software. The research shows that welfare reforms such as the bedroom tax have triggered a wide range of concerns amongst landlords as they work through the implications, according to the survey of 143 housing associations. The research shows that the main concerns of housing associations include worries about increased administration (32%), uncertainty about procedures (21%) and expectations of an increase in customer complaints (15%). Read more on 24dash.

Council Reveals Private Rent Plan

A London council has asked the government for permission to rent its empty social homes at market rates.  Conservative-led Hammersmith & Fulham (H&F) Council said that allowing local authorities ‘the same freedom as housing associations’ to let void or new build properties on the private market could help generate income to reinvest in new affordable housing.  Andrew Johnson, cabinet member for housing at Hammersmith & Fulham, said the council envisaged offering no more than 50 out of the 500 homes that become void every year at market rent, which could be up to three times the current rate.  Mr Johnson added the council was considering the idea in response to the self-financing reform of the housing revenue account under which the west London authority took on £218 million of debt, leaving it with annual interest payments of £12 million. It has just £33 million of ‘borrowing headroom’ beyond its HRA debt.  Read more on the H&F website.