Survey Shows Private Tenants Not Interested In Buying A Home

The government is urged to end its “penalisation” of landlords on the back of a new study showing the majority of the UK’s private tenants don’t want to buy a home. The Landbay study, based on responses from 2,000 private renters in the UK, has only 42% of private tenants interested in getting on the housing ladder in the near future. Read more on 24housing.

https://www.24housing.co.uk/news/survey-shows-many-private-tenants-not-interested-in-buying-a-home/

Has The Brexit Vote Saved London Tenants £1,800 pa In Rent?

Tenants in London have saved as much as £1,800 in rent as a result of the Brexit referendum in 2016, according to an analysis of more than 100,000 rental properties listed on the Zoopla property website. Rent price growth in London is almost 3% lower than the projected rate of growth since the EU referendum announcement, leaving tenants with more money at the end of the month. Outside of London, rents have been firmer, with the Midlands recording the highest rates of increase, the company’s Landbay rental index shows. Read more on the Guardian website.

https://www.theguardian.com/money/2019/jan/14/has-the-brexit-vote-saved-london-tenants-1800-pa-in-rent

The Cost Of Renting A Property Will Fall – But Not Until 2019

Everyone knows that saving for a deposit to get onto the property ladder is an insurmountable challenge for many, but private renters are also stung by having to fork out huge amounts of cash at the outset.  Would-be renters have a number of costs to take into account before they can think about getting the keys, including up to two months’ rent as a deposit, the first month’s rent in advance, as well as letting fees imposed by the agent. With UK rents now averaging around £1,196, according to research from Landbay, this means that some tenants could be forced to stump up as much as £3,588 in advance to secure the property, plus letting agency fees of an average £200-300 per tenant. Read more on the buyassociation website.

UK Rents Shrink Towards The End Of 2017

Rents across the UK began to shrink for the first time in over half a decade toward the end of 2017, falling by -0.01% in November, as a two-speed market emerged between London and much of the rest of the UK. The average rent paid for a UK property grew by 0.53% in 2017 (year to date), with falling rents in London (-0.83%) weighing down otherwise resilient rental growth elsewhere (1.27%). These are the findings from the second edition of the National Rent Review from buy-to-let lender Landbay which also reveals how much millennials can expect to spend on rent in their lifetime. Read more on the Property Reporter website.

Millennials Spend Over A Third Of Take Home Pay On Rent

According to the latest Landbay Rental Index, young tenants are spending a third of monthly take home pay on rent, with those in a three bed property spending 30% and those in a two bed spending 39%. Those attempting to live alone face spending over two thirds (69%) of monthly take home pay. For tenants aged between 18-39 and living alone, 69% of a monthly post-tax income of £1,447 is spent on £1,012 of rent. In a shared house of two people, overall rent of £1,152 adds up to 39% of each tenant’s income, while those co-habiting in a three-bed property would each spend 30% of their monthly take home pay on a rent of £1,322. Read more on the property reporter website.

Stamp Duty Rise Hits Rental Growth

The speed at which rents across the UK are growing has more than halved since an additional 3% stamp duty levy on second homes came into force twelve months ago, according to the latest Landbay Rental Index. That survey, powered by MIAC, revealed annual UK rental growth slowed to 0.90% in March 2017, less than half of the rate of 2.27% seen at the end of March 2016. Outside of London, the pace of growth has slowed by over a quarter since the tax hike, from 2.43% in March 2016, to 1.78% in March 2017. Read more on the CML website.

Rents Outside London Rise To £750 A Month

The average rent in the UK outside of London hit £750 a month in December, rising by 2.04% over 2016, according to the latest figures from Landbay. Private tenants outside the capital are now forking out over half (53%) of average take-home pay (put at £1,425), according to Landbay’s latest Rental Index.  Average rents across all property sizes grew by 2.13% in England (without London), 1.42% in Scotland and 1.43% in Wales in 2016, rising to £755, £721 and £634 respectively by the end of the year, it said. Together, this means the average monthly rent paid for a property in the UK outside London has hit the milestone figure of £750. Read more on Housing Excellence.

Average One Bedroom Rent Tops £1,000 Per Month

The average rent for a one bed property in the UK hit £1,010 in August. That takes the total to over two thirds (67% ) of the average disposable income of £1,497, according to the latest Landbay Rental Index. The Index shows signs that rental pressure is easing on tenants, as one bed rents grew by 0.1% last month, and 1.7% over the last year, behind wage growth of 2.4%. In London, the proportion of monthly income spent on rent is significantly higher. The average rent for a one bed was £1,461 in August, compared to an average disposable income of £1,967. Read more on 24dash.

UK Rents Not Showing Signs Of Seasonal Slowdown

UK rents increased by 0.7% month on month in October to £1,294, showing no signs of the seasonal slowdown that normally hits the UK rental market in the autumn, according to the latest Landbay Rental index. Rents increased across most of the county with the only exception being Scotland which saw a marginal monthly fall of 0.1% to £696, data from the Index show. The report suggests that the latest rises indicate that the UK’s housing shortage combined with growing pay for many and unemployment levels hitting their lowest level since 2008 have put an end, at least for the time being, to the usual seasonal fall in rents that starts in the autumn. Download the report from the Landbay website.