LETTINGSnews


Rents dip says LSL Growing in Scotland INDICES OPPORTUNITIES


Rents dipped in February as an increased number of tenants considered moving into the sales


market to beat the end of the stamp duty holiday, according to the latest Buy-to-Let Index from LSL Property Services plc. In February, the average rent in England and Wales fell by 0.6 per cent to £707 per month, following a rise in January. Despite the monthly drop, rents continue to rise on an annual basis, increasing by 3.5 per cent, representing a £24 rise in the past year. The biggest decreases were in the Midlands, with rents falling by 2.2 per cent in the East Midlands, and by 1.8 per cent in the West Midlands. Rents rose in three regions, increasing by 0.7 per cent in the North East and 0.5 per cent in both Wales and the South West. Rents dipped by 0.4 per cent in London, only the second monthly fall in the past 14 months. In the last 12 months the largest increases in rents have been in London, where rents rose by 5.6 per cent, and the East of England, up by 5 per cent. On an annual basis, rents have only fallen in one location, dropping by just 0.2 per cent in the East Midlands. David Brown, commercial director of LSL Property Services said: “The looming spectre of the end of the stamp duty holiday has taken its toll on tenant competition in the run-up to the deadline, easing the upwards pressure on rents. In February, an increased number of tenants either became


INNOVATION Rushbrook & Rathbone say ‘U-Deal’


Rushbrook & Rathbone, a long- established property


management agency, has launched a


new initiative U-Deal, a complete and safeguarded self-manage start up package for estate agents,


providing them with a secure alternative to present to their clients. Pauline Davis, Operations Director, says, “In today’s market where money is tight to say the least, many buy to let landlords are recognising the financial benefits of self managing their own property investments. This fact, coupled with the reality that it


does not make economic sense to provide a full management service for low end rentals, means that we have revamped what we can offer to ensure we are up to date.” U-Deal will create an opportunity for agents to retain their fee whilst giving their customers the freedom of self management backed up by the benefit of rent and legal insurance,


all covered by Rushbrook & Rathbone. The package will include a legal admin support service covering all legal aspects with documentation throughout the tenancy, as well as a financial service including the running of the client account, taking holding deposits and security deposits, and registering them correctly. www.rushbrookrathbone.co.uk


PROPERTYdrum APRIL 2012 43


owner occupiers, or seriously considered property purchase, rather than renewing their contract or seeking a different rental property. With fewer tenants than usual actively competing for properties, combined with a slight improvement in the number of rental properties becoming available, many landlords priced less aggressively to avoid the prospect of a void period.” “In the longer-term, it’s difficult to see a prolonged decrease in the tenant demand underpinning rental inflation. There are already indications that mortgage lending is falling back, and that mortgage rates are beginning to climb, which will limit the number of prospective homebuyers leaving the rental


‘Average rents fell by 0.6% to £707 per month.’


sector. While the NewBuy scheme may support a limited number of first-time buyers, its impact will undoubtedly be off-set by the removal of the stamp duty holiday. As a result, and given the growing number of households, the pressure will remain on the private rented sector.” “Tenant finances have been


boosted by the easing level of inflation at the start of the year, allowing many to get their monthly budgets in order – and this has reined in the overall level of rental arrears. Nevertheless, it’s clear that the bulk of arrears are being accounted for by a growing minority who are falling further and further behind with monthly payments.”


Direct Lettings has enjoyed a very successful start having already established the


business in Dundee, Edinburgh and Forfar and it now plans to open offices in Aberdeen and Glasgow.


This new, forward thinking company draws on over 120 years’ heritage of J & E Shepherd Group and launched in 2011 with a healthy portfolio of over 2,000 properties in Scotland. As the business and brand


continues to grow, Direct Lettings is now looking to acquire or partner with established letting agencies across Scotland. This could be an opportunity for agents to create a route to personal wealth from the sale of their portfolio, whilst keeping a hand in the businesses they have established, continuing to receive a regular income. Agencies joining the Direct Lettings family would be


licensed to operate under the fastest growing lettings brand in the UK and would receive extensive administrative, financial and technical support from the centralised back office, making significant savings in overheads. Direct Lettings agencies benefit from ongoing PR and marketing activity and supply of quality business collateral, including striking Direct Lettings signs. Nathan Cozens, corporate partnerships director at Direct Lettings, adds, “Our pure focus in 2012 is on developing the Direct Lettings business and brand throughout Scotland and the North. This is a fantastic opportunity for strong, local businesses to continue to operate for themselves, but not by themselves: a safety in numbers approach which protects their future and builds a bigger market presence that all Direct Lettings partnership companies will benefit from. www.direct-lettings.com


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