Short-Term Demand Is Up For Rentals In U.K.

Despite a recent bounceback, rental demand across the U.K. remains significantly impacted by the coronavirus pandemic, according to a report from Zoopla. In the two weeks to April 14, demand for rental properties increased 30%, the online real estate portal said. Though notable, the increase immediately followed a 57% decline in demand for rental homes in the two weeks to March 30, and still remains 42% lower than at the start of March. The uncertainty induced by the pandemic means households will turn to the rental market before the sales market to “meet any immediate housing need,” the report said. Read more on the Mansion Global website.

https://www.mansionglobal.com/articles/short-term-demand-is-up-for-rentals-in-u-k-but-the-market-remains-significantly-impacted-by-coronavirus-214218

Rental Repossession Numbers Set To Jump

The number of rental properties claimed back by landlords after tenants fail to pay their rent is expected to rise this year, official figures suggest.  The latest data from the Ministry of Justice shows that the number of properties taken back by banks, building societies and other home loan providers after owner occupiers fail to pay their mortgages has stabilised at low levels in the last few years. However, an increase in the number of repossession claims and a sudden significant spike in the number of warrants for future repossessions by landlords suggests the instances of tenant eviction could rise by almost 10 percentage points in the coming months. Read more on the Independent website.

http://www.independent.co.uk/money/spend-save/rental-repossession-numbers-set-to-jump-a8210681.html

Rented Housing: Construction – Parliamentary Written Answer

Andy Slaughter: To ask the Secretary of State for Communities and Local Government, with reference to his Department's press release 2,000 new homes and thousands of jobs in Birmingham, Leeds and Manchester, published on 1 December 2016, whether any further funding will be provided by (a) his Department and (b) any other bodies in addition to the funding from the Government's new Home Building Fund for the construction of those purpose-built rental properties.

Gavin Barwell: There are three sources of funding for all three sites: the Home Building Fund investment will comprise 15% of total development cost; the balance will be provided as senior debt from HSBC and equity from the borrower. Beyond the Home Building Fund investment, there is no other public sector funding going in to the construction of the properties. Draw-down of the Home Building Fund investment will take place on a monthly basis, subject to independent verification of expenditure.

Rental Supply At 18-Month High

The supply of rental property has reached an 18-month high, according to the Association of Residential Letting Agents (ARLA), but demand has also risen. In its September private rental sector report, ARLA found that letting agents managed on average 193 properties per branch. This is up from 183 in August and the highest level seen since April 2015 when there were also 193 rental properties registered per branch. Demand for rental properties also rose in September, with 40 prospective tenants registering interest per letting agent branch, compared to 37 in August. Read more on Housing Excellence.

Large Drop In New Rental Properties In UK Towns And Cities

Some 40% of key towns and cities across the UK experienced falls in new rental properties being listed in September compared to the previous month, new research shows. There are signs that it is due to landlords being affected by changes in the buy to let sector as eight out of 10 locations which saw a decline in new rental listings in August also did so in September. The study from property crowdfunding platform Property Partner analysed data for 89 towns and cities in September and compared the results with figures from August.  Read more on the Property Wire website.

UK Faces Shortfall Of 1.8m Rental Homes, Warns Housing Body

The UK is facing a shortfall of 1.8m rental properties unless the government acts fast to slow a sharp drop in the number of available homes, according to a leading housing industry body. The Royal Institution of Chartered Surveyors (Rics) called on the government to drop reverse stamp duty changes on second homes and consider incentives for build-to-rent schemes, after it found a drop in property investors’ appetite to add to their buy-to-let portfolios. The private sector has taken over from councils and housing associations as the biggest provider of rented homes, but Rics found that sales had slowed over the summer, after changes to the stamp duty rules. Read more on the Rics website.