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 Affordable Housing Backed By World’s Largest Property Investor

New-York based private equity fund Blackstone is investing in Sage Housing Association to help the firm buy affordable housing allocations from developers. The funds will be used to allow Sage to buy private developers’ Section 106 allocations, affordable housing that developers can be required to deliver – on a large scale around the country. All properties will be for rent at Local Housing Allowance rates or lower, with Blackstone planning to give local authorities nomination rights. Sage was bought by residential investors Regis Group in 2017 and started buying Section 106 allocations of between five and 10 homes. They have won a third of their bids since then, according to the source. Read more on the buyassociation website.

HMO Property Market Evolving

One of the most important and exciting new sectors in the UK property market, Housing of Multiple Occupancy (HMO), is evolving into a mainstream property investment model, according to a new report from specialist commercial lender Shawbrook Bank. A combination of financial pressures for those who have yet to get on the housing ladder, plus a shift in how people want to live in the early stages of their professional careers mean this type of property has grown hugely in popularity for renters. The report states that ‘…with a generation of young professionals focused more on renting, due in part to house prices but also due to the desirability of higher levels of disposable income, shared accommodation is highly appealing for this demographic for both financial and social reasons.’ Read more on the buyassociation website.