LETTINGSnews
HOUSING SUPPLY
Can social housing shortfall help private sector?
New figures released by NHBC have revealed that public sector housing registrations in the UK continue to fall, with social housing numbers down 41 per cent for the rolling quarter March to May 2012, compared to the same period last year (7,090 in 2012 – 12,003 in 2011). Registrations to build new homes in the private sector, have also decreased (three per cent) from the same period last year (20,035 in 2012, 20,559 in 2011). However, comparison against March – May 2011 is affected by the registration of approximately 2,800 London Olympic Village homes (split equally between private/public sectors) during this period. With these units taken out of the equation there was actually an increase of five per cent within the private sector during this quarter and 33 per cent decrease in the public sector. Several regions did however experience overall growth over the last three months across, including the West Midlands (2,271 in 2012, 1,879 in 2011) and Wales (1,286 in 2012, 750 in 2011). Commenting on the latest
figures, Richard Tamayo, NHBC Commercial Director said, “Our registration statistics continue to show a divide between the direction of travel for private and public sector registrations in the UK – with social housing levels falling but slight increases in the private sector. “It is clear the Government
is maintaining its focus on increasing housing levels, as seen by Vince Cable’s recent housing crisis summit with Grant Shapps. It is critical that we also continue to monitor initiatives such as the NewBuy scheme to assess their success in increasing the number of new homes built in the UK.”
50 AUGUST 2012 PROPERTYdrum
CUSTOMER SERVICE Waterfords launch Tenant Assist
Waterfords report that there has been a noted rise in
landlords seeking further
security on their investments. With this in mind they have launched a new service, Tenant Assist, a home assistance package for landlords who are on a tenant find or a tenant find rent collection service. Tenant Assist, a service that,
says Waterfords, no other local agent currently offers, has been designed to provide landlords with peace of mind as it enables tenants to have the benefit of a 24/7 emergency help service at hand should any major incidents
PROPERTY MANAGEMENT Landlords go for managed service
According to Rushbrook & Rathbone, an
increasing number of landlords are opting to
have their properties managed by a third party in line with reports from mortgage lender Paragon, that many have developed their portfolios in the second quarter of 2012. Rushbrook & Rathbone, who
provide property management services to both letting agents as well as private landlords, say they have seen a 20 per cent rise in interest in their services, which they believe can be attributed to the growing number of landlords aiming to build their portfolios, requiring more support in order to service their tenants correctly. Sarah Rushbrook, MD,
Rushbrook & Rathbone, says, “With so much economic unrest, landlords are taking the opportunity to capitalise
Landlords must recognise the pitfalls of letting
on the one growing market, buy to let.” Many landlords, some of whom initially entered into the buy to let market as accidental landlords, have been very successful, now reaching a level where they require additional resources and manpower to help manage a hassle free portfolio. Sarah says, “Many still work full time jobs and simply don’t have the time to deal with tenant or agent issues, which can include anything from rent collection and arrears, to maintenance issues and inventories.”
“Inexperienced landlords run the risk of becoming too emotionally attached to the properties and over friendly with their tenants, making delicate negotiations much trickier.
“Landlords must recognise letting a property is a highly regulated business venture with great potential rewards but also many possible pitfalls, this is where a managed service can ensure landlords remain compliant and do not have problems at the end of the tenancy getting their properties back,” says Sarah.
service for clients’ peace of mind or problems occur in their property. Also included in the 12 month
cover is an annual gas certificate and an annual boiler service to ensure that the property utilities comply with current legislation. In addition, it provides benefits such as parts and labour costs included and unlimited claims within the year. Gareth Wemyss from
Waterfords says, “We are really pleased to be introducing this new service as we feel it will be a great asset to our landlords and their tenants. It will offer both parties a sense of comfort that they crave at the moment as they can call the emergency helpline at any time and they will be guaranteed a response from an approved tradesperson within three hours.”
RENTS
RICS Residential Lettings Market Survey
Rents rose further in the three months to April, as fresh tenant demand
continued to exceed new
instructions, says the latest RICS Residential Lettings Survey (February-April 2012). 13 per cent more chartered
surveyors reported rents rose rather than fell in the three months to April. This growth was largely driven by increasing demand as a net balance of 15 per cent more respondents reported rises in prospective tenants, with houses in greater demand than flats. Rental values in the UK have now grown consistently since 2009 as the problem of unaffordable mortgage finance and large deposits required by lenders remain a barrier to home ownership, with many potential buyers forced to turn to the rental market. Significantly, supply of property to the market continues to grow, albeit at a slower pace, with seven per cent more surveyors reporting increases rather than decreases in landlords looking to let their properties.. Surveyors remain positive that the market will remain buoyant over the next three months, with 13 per cent more predicting rents will rise rather than fall. Across the UK, all areas expect rents to continue to increase with the exception of Scotland where expectations entered negative territory for the first time since October 2009. Peter Bolton King, RICS Global
Residential Director, said, “The rental market is still fairly buoyant and this looks likely to continue, given the challenges facing the sales market. Indeed, mortgage finance may become even harder to access particularly for first-time buyers if the euro crisis continues to deepen.
“This points to tenant demand continuing to outpace supply. As a result, rents will remain on an upward trajectory, adding to the pressure on many households whose incomes are already being squeezed.”
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