LETTINGSnews
RENTS
London rents 75% higher than the rest of the UK
As the UK wallows in a double-dip recession, tenants in the capital are faced with even more
financial strain, as new research reveals that the average cost of renting a home in Greater London is now 75 per cent more expensive than the rest of the UK. The March 2012 HomeLet
Rental Index shows the average cost of renting a home is now £1,158 per month – over six per cent higher than the same time last year.
The report also shows the
average cost of renting a home around the rest of the UK, excluding Greater London, now stands at £661 per month – an increase of three per cent from 12 months ago. With tenants earning an
THE MARKET Home alone? Good luck!
Singletons are struggling to find the perfect flat for one, as couples cram into
smaller properties and split costs, fuelling the demand for one-bed properties.
With the number of one- person households on the increase, William Jordan, MD, Jordans, claims there’s a real shortage of properties suitable for solo renters. Latest figures from the Office of National Statistics (ONS) show the number of people living alone in the UK has now risen to 29 per cent of all households. The cost of living a single life in 2011 also rose to more than £5,000 a year.
William said, “People looking to rent on their own have a real fight on their hands. They are often competing for the same one bedroom properties that couples with double incomes.
52 JUNE 2012 PROPERTYdrum
average of only one per cent more than last year, it appears their budgets are being increasingly stretched. Combining this with an increase in rental costs, fuel and inflation, suggests tenants have less disposable income than ever before. Ian Fraser, HomeLet’s MD, says, “As economic uncertainly continues it’s likely that income could remain flat for many tenants this year, especially with the UK’s economy shrinking once again to enter a double-dip recession, and their income not growing at a proportional rate to rents. “This is a worrying trend for
tenants, and with recent reports saying almost one million people will have been out of work for more than a year by end of 2012, an increasing number of tenants will not only be short of disposable income, but also maybe unemployed and relying on benefits to live.
“Whilst the private rented sector
has traditionally provided additional stock for tenants who receive housing benefits, changes to Local Housing Allowance (LHA) means many tenants are facing a predicament when trying to move into a property. “The changes intended to
encourage landlords to lower their rental costs – however, it seems many landlords have chosen not to let their properties to tenants who receive benefits. “Tenants who receive LHA may
be forced to move to more affordable areas outside the capital. As with home ownership, rented accommodation is becoming less affordable in the capital and many household budgets are really being stretched.” To view the full HomeLet Rental Index, please request a copy by emailing:
marketing@homelet.co.uk.
REGULATION
Agent expelled from TPOS
A Derbyshire property agency has been expelled from The Property
Ombudsman scheme after
failing to pay an award made against it. TPO had delayed the expulsion of Letzlet Ltd, trading as Beechwood Lettings, while the complainant was helped to obtain a court judgment of £2,176, including court costs, against Letzlet Ltd, of Beechwood House, Matlock Street, Bakewell. The TPO Disciplinary and
Standards Council notified the agency of its expulsion in February and, as it has not responded, the expulsion has now been confirmed to agency owner Ms H Gregory. The agent had failed to pay an award of £1,226, which included £976 in rent owing, and delayed paying rent into the complainant landlord’s account on 12 occasions over 19 months. It failed to cooperate with the TPO investigation and breached the TPO Code of Practice by not having a complaints system. The company applied for its TPO membership to be transferred to Beechwood Property Portfolio Ltd from Letzlet Ltd, which had traded as Beechwood Property Sales. The new company has never completed registration with TPO. Beechwood Property Portfolio is currently advertising properties for sale on its website and illegally displaying the TPO logos for both sales and lettings. It is not registered with an
approved redress scheme, as it is required to do under the Consumers, Estate Agents and Redress Act 2007.
Couples are sharing a room but pooling the costs means they can afford to pay more, pushing the rental cost up and pushing those looking to rent on their own out of the market.
“Some properties are clearly designed for one, they are tiny, but couples who can afford to be paying greater rent are squeezing into them – they
can get a really good deal this way. “People looking to rent on
their own are often forced in to flat share arrangements – there just aren’t enough suitable properties available. We’re crying out for landlords with one bedroom properties as we’re desperate to have more on our books to help cater for the demand.”
On March 28, Helen Williamson at its Matlock office confirmed by telephone that the company was still selling and letting properties across the Peak District. “Christopher Hamer, made a
renewed call for all lettings agents to be regulated in the same was a residential sales agents and when you look at the behaviour of this firm it’s easy to see why regulation is essential,” said Gerry Fitzjohn (pictured) COO of The Property Ombudsman.
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