New property supply sees it’s fifth consecutive monthly rise

Landlords looking to expand

The latest data and analysis from HouseSimple.com has found that April saw new property supply rise for the fifth consecutive month, up 0.8% versus March.

According to the research, there has been no significant Spring bounce in new sellers so far this year though, as the figures revealed that across 100 major UK towns and cities, 68,500 new properties were marketed by estate agents in April, compared to 67,931 in March. However, new property listings last month were 43.8% higher than in April 2017, the month after Theresa May triggered Article 50.

Across the 100 towns and cities, more than half (57%) saw a drop off in new stock being marketed in April versus March. Huntingdon in Cambridgeshire, saw the biggest uplift in new property listings last month, up 98.3% on March, with Dundee (40.3%) a distant second, up 40.3%.
New supply in April was down more than 30% compared to March, in Durham (37.6%), Lichfield (34.3%) and Chichester (33.0%).

London

In London, new property listings were up slightly on the UK average, with supply rising 4.4% in March compared to February. Newham saw the most dramatic rise in listings last month, with new sellers up 45.1%.

Sam Mitchell, CEO of online estate agents HouseSimple.com, comments: “Although we haven’t seen a significant Spring bounce to date, supply has been moving in the right direction since the start of the year. And we are seeing completely different Spring conditions to last year, when Article 50 disrupted the market, and sellers stalled on listing their properties until they had a clearer economic picture.

Now that the weather has improved markedly, we are expecting to see strong seller activity in May and June. Buyers are showing real intent to purchase, especially with no sign of an interest rate rise in the immediate future and some extremely competitive mortgage deals on offer.”

Original Source: Property Reporter

What does the profile of a modern landlord now look like?

The profile of the typical modern landlord is evolving, shifting towards dedicated professional landlords focused on growing and diversifying their portfolios – while accidental landlords with one property look to exit the market.

New research on the ‘Emerging Landlord’ has been published today by Simple Landlords Insurance. They surveyed 500 landlords, ranging from people who let an inherited property, to full time landlords with portfolios of 10 or more properties.

The results reveal a polarisation in attitudes towards the private rented sector, with accidental and part-time landlords feeling most negative about legislative changes and their future. Those with larger portfolios however, felt far more positive about the future and plan to increase their property investments.

Some 38% of the landlords with two or more properties said they plan to buy at least one more in the next year – dwarfing the 11% of landlords with single properties who are planning to expand.

Meanwhile, 30% of single property landlords plan to sell, compared with just 8% of landlords with more than two properties.

Tom Cooper, Director of Underwriting, Simple Landlords Insurance, said: “From Section 24 to Right to Rent, increased stamp duty, capital gains tax, regulation and licensing, you’d be forgiven for thinking it was all doom and gloom in the private rented sector. But our evidence shows there are landlords adapting to the changes and emerging like phoenixes from the ashes. We wanted to find out more about them.

The research reveals it is the landlords positioned at the larger end of the market – or aspiring to get there – who are least fazed by changes, and best poised to take advantage of increasing demand, bargain stock being sold off, and stable house prices.”

Who is the Emerging Landlord?

The emerging community of landlords is generally young, well-informed, deliberate investors. Out of the 500 surveyed, the average number of properties held decreased with age: for the 25-34 bracket, the average portfolio size was 2.16, while for 45-54 year olds, it dropped to 1.48.

The number of accidental landlords is also on the decline, falling from 18% in 2016 to 15% in 2017, widening the gulf between them and more professional investors.

Carl Agar, Founder of the Home Safe Scheme and Managing Director Big Red House, says: “Times change. Markets change. But property can still be a way to make money if you change too. There’s a clear difference between the big players and the dabblers, the old school landlords and the new kids on the block.

Your ‘traditional’ landlord is seeing all of these new rules imposed and their returns drop. Meanwhile those new to the market are comparing those returns to what they’d get putting their money into a savings account – and it actually looks pretty good. They’re seeing opportunity, and building the rules, regulations and changes into their business model.

Personally, I’m looking forward to a more professional and more prosperous private rental sector, driven by a new breed of landlord investor.”

How are they investing?

As well as being bigger, younger and more professional, the emerging landlord is also investing differently, and diversifying their portfolio. The classic 2-up 2-down home for families of working tenants is no longer where landlords poised for growth are investing.

The report reveals that holiday lets and flats are very attractive options for new landlords seeking to spread their risk, with holiday lets attracting the highest proportion of new entrants to the market – 22% of these are landlords in their first year, with flats right behind with 16% new entrants.

The owners of HMOs in particular are also feeling optimistic, with 43% in buying mode and just 4% planning to shrink.

Tom concluded: “At Simple, we believe the right insurance can be the safety net that allows landlords to develop their strategies and their businesses for the future. Financial services need to keep up with the market and develop products that can grow with the landlords set to survive and thrive.”

The full report can be viewed at www.simplelandlordsinsurance.com/emerging-landlord

Original Source:Property Reporter

What are the features and facilities Brits are willing to pay more rent for?

What will tenants pay more for

Throughout the last ten years, house price inflation has outpaced wage growth in many parts of the UK, scuppering the prospect of home ownership for many first-time buyers.

As a result, large numbers of Brits have had no choice but to opt for the private rental market as an alternative way to get on the property ladder.

With over 25% of UK households predicted to be privately rented by 2025, more and more Brits are treating rental properties as a ‘long-term’ rather than a ‘temporary’ or ‘imperfect’ solution to their living requirements. Therefore, it’s important for landlords/developers to consistently keep in mind how they can enhance tenant’s satisfaction levels outside of just meeting basic expectations when providing properties for rent.

Showerstoyou.co.uk analysed findings from ‘LSL Property Services’, who surveyed over 3,000 tenants to find out what features and facilities they would like to be included in their rental property and how much extra they would be willing to pay for them on top of their normal monthly rent.

The research found that tenants would most like pets to be allowed, with 28% willing to fork out an average of £24 more per month to have their furry friends stay with them in their rented accommodation. Thereafter, high-speed internet was a priority, with 21% of tenants happy to pay an average of £19 extra each month for it.

On the other end of the scale, a concierge service would garner the least interest, with just 3% prepared to pay an additional £20. Slightly above, 4% of renters would spend £12 a month to have storage space specifically for their bike(s).

Moreover, tenants also revealed the communal facilities they would be willing to pay more for when renting. Showerstoyou found that tenants would prioritise a gym the most, with 41% glad to pay an average of £20 more every month to conveniently exercise and stay fit on-site. Followed closely behind was a laundry facility, where 34% of renters would be content with spending an average of £10 each month to wash and dry their clothes in an allocated room.

Fascinatingly, with a lot of rental properties (particularly in cities) not having any green space – a communal garden is something 32% of tenants would be interested in having at an average cost of £10 more per month on top of their normal rent. Surprisingly, only 27% of renters would welcome the idea of a recreational or games room to relax and socialise in.

Martin, Managing Director of Showerstoyou.co.uk commented: “Property prices have certainly been unattainable for those looking to get on the property ladder over the last few years. Brits therefore have had no option but to rent. As a result, individuals have been applying similar criteria’s to renting as they would when seeking a property to buy. This research shows that there are features and facilities that renters really want and would pay a premium for. Whilst some features/facilities are prioritised over others, they all provide great indications for landlords/developments as to what tenants are expecting from rental properties going forward”.

Original Source: Property Reporter