Posts tagged ‘renting’
The average tenancy deposit has risen by more than £300 during the past seven years, it has been revealed.
The average amount used as a deposit is £1,197.73, up 34 per cent or £304 since the launch of tenancy deposit scheme in 2007.
The research by mydeposits also suggested a difference of £1,168 between the average cost of deposits in the most expensive and cheapest regions in England and Wales.
Tenants pay the highest deposits in London, where the average is £1,760,30 – a rise of 2.16 per cent in a year.
The capital is followed by the South East, where the average deposit is £1,181.99, a rise of £50.44 compared to the same period a year ago.
The cheapest average deposits paid are in Yorkshire and Humber at £592.75.
Eddie Hooker, chief executive of mydeposits, said: “It is worth considering that the increase in the average deposit value is closely linked to annual rents, and commonly deposits are the equivalent to between a month to six week’s rent”.
To rent for £1,200 a month:
1. Two bedroom cottage in Sutton Veny, Warminster.
2. One bedroom flat in London’s Canary Wharf.
3. Three bedroom terrace house in Angmering, Littlehampton.
Generation Rent is a pretty disgruntled bunch if a new survey is to be believed. More than half feel they have been ripped off by their landlord, with a failure to make repairs to their homes the number one gripe.
According to the study by loans company Ocean Finance, more than half (52 per cent) of 18 to 24 year olds currently rent, and 46 per cent of those aged 24 to 34 do the same. More than one in five (22 per cent) of those aged 35 to 44 are also in rented accommodation.
Half of all tenants in the UK feel a private sector landlord or letting agent has ripped them off with failure to get repairs done the top reason behind this feeling, new research shows.
Here is a seven point plan to reduce the stress of renting, so you can enjoy your Young Ones years to the full:
1. The internet is a brilliant way to research rental opportunities and get a good idea of what typical properties cost, but Gordon Hood, head of the lettings department at Knight Frank in Ascot, Surrey, recommends showing your face to local agents once you know what you are after. “It is great to meet the individual or couple when they come into the office, we can gleam a great deal more about their requirements and ensure we can find them the best possible property for them in the quickest possible time,” he said.
2. Use technology to help you. Rebecca Warren, lettings director at Chestertons in Hyde Park, said: “Once you know where you want to be Zoopla has a map search function that allows you to draw the desired areas and will show the availability within that area, you can then set up an alert so any new instructions are sent over immediately to you.”
3. Check out the small print when signing up for a house or flat. Jenny Kimmings, lettings manager of Hamptons International in Marlborough, says it is crucial to understand exactly what you are agreeing to. “Check any special conditions written into the tenancy agreement, for example a break clause if you have agreed one, or you will find yourself tied in when you don’t think you are,” she said. “Or perhaps the landlord has agreed to redecorate before you move in. Anything agreed verbally like that would need to be in the tenancy agreement.” It is also important to ask your agent what fees you are going to be charged – and if you will be charged again as and when you renew your lease.
4. Make sure your deposit is going to be held in a Government-approved tenancy deposit scheme, so the landlord can’t just keep it when you leave, and make sure a full and accurate inventory of the state of the property is made when you move on so you don’t get blamed for damage.
5. Although landlords can be frustrating Nicola Merry, lettings manager at Kay & Co says the best way to handle them is to be a model tenant they won’t want to lose – that way they are likely to try and keep you happy. That means paying rent on time, responding politely and quickly if they get in touch, and taking care of the property. It is always nice to meet with your new landlord before moving in, especially if they are they managing the property themselves,” she added. “It helps build a rapport especially if renting for the long term, which can be invaluable if problems arise during the tenancy.” “
6. If your problems are really severe and you suspect laws are being broken your local Citizen’s Advice Bureau or campaigning charity Shelter will be able to advise you on the best course of action.
7. Lack of space is a common gripe for renters. If your possessions are spilling out of control consider renting a self-storage space to stash your treasures until you have a place of your own. Make sure to shop around to get the best deal. Aussie Man and Van, for example, offers storage in London for £9.95 plus VAT per week for a 175 cubic ft space.
To let: Pick of the rentals…
1. Live in total James Bondesque luxury in this Knightsbridge pad, available for £50,000 a week (and no, this is not a typing error).
2. Make a life changing move to an adorable thatched cottage in Cornwall, yours for £345 a week.
3. Young professionals in Manchester will love this three bedroom warehouse flat in the fashionable Northern Quarter, on at £288 a week.
4. Or live in the centre of Liverpool in a lovely listed townhouse, available at £387 a week.
The cost of renting a home in the private sector edged ahead by just 1 per cent during the past year, Government figures showed today.
The increase means someone who was paying £500 a month in rent in June 2013, would now be paying £505, according to the Office for National Statistics.
Tenants in London saw the biggest increase during the 12 months, with their rents rising by 1.4 per cent.
At the other end of the scale, the cost of renting in the private sector rose by only 0.2 per cent in Wales during the same period, while in the North East and North West rents edged ahead by 0.3 per cent.
The pace at which rents rose in all regions of Great Britain was significantly below the rate of inflation as measured by the Consumer Price Index, was stood at 1.9 per cent in June, meaning being a tenant is getting cheaper in real terms.
The low increase in the cost of renting a property is good news for potential first-time buyers saving for a deposit.
The small rise is also unlikely to bother many buy-to-let landlords, who are still benefitting from strong growth in property values and record low interest rates.
Recent research from lender BM Solutions showed that rental yields remained strong at an average of 6.2 per cent during the second quarter.
The highest yields were seen in the North West, North East, West Midlands and Wales, while the lowest were seen in Central London, where house prices are highest.
Around 35 per cent of landlords said they had increased their rents during the past year, with 26 per cent planning to hike them in the coming six months.
Meanwhile, financial information group Moneyfacts.co.uk said the number of different buy-to-let mortgages available had increased to a level not seen since 2008.
The group said landlords currently had a choice of 665 different products, 43 per cent more than were available in July last year.
The increased competition in the market has also driven the interest rates charged on the loans down to a record low.
The average cost of a fixed rate loan is now 4.17 per cent, while the typical rate charged on a variable mortgage is 4.03 per cent.
Sylvia Waycot, editor at Moneyfacts.co.uk, said:“Lender interest in the buy-to-let market may be fuelled by the knowledge that it falls outside of the recent Mortgage Market Review.
“This makes the process of granting any buy-to-let mortgage quicker and simpler as it is not subject to the new affordability criteria that is starting to clog up the mainstream mortgage market.”
The average price of renting a property is currently £745 a month. But there is a huge variation in different parts of the country, with London costing £1,124 a month, while average rents in the East Midlands being almost half that amount at £575. What can a tenant rent around the country for £745?
1. Unfurnished two double bedroom flat in Manchester’s Stretford, with secure parking.
2. Modern three bedroom detached house in Warwickshire’s Rugby.
3. Two bedroom flat with driveway parking and communal gardens in Stafford’s Weston.
4. Unfurnished studio in a Grade II listed Regency building in Hove’s Palmeira Square.
5. A newly decorated two bedroom semi-detached house in Bristol’s Bradley Stoke.
6. Detached bungalow in York’s Appletree Village, with two double bedrooms, a single garage and maintained gardens.
7. Unfurnished two bedroom terrace house with new kitchen and bathroom in Chatham.
The cost of renting a home increased by 0.6 per cent during May as the returns made by investment landlords hit a four-year high, figures showed today.
The typical property in England and Wales cost £745 a month to rent in May, the highest level since December last year.
But despite the jump, rents have only risen by 1.1 per cent during the past year, compared with inflation of 1.5 per cent, as measured by the consumer prices index, according to LSL Property Services.
The group, which owns the UK’s largest lettings agent network, said it was the twelfth consecutive month in which annual rent rises had been below the rate of inflation.
In absolute terms, the cost of renting a home has risen by just £8 during the 12 months to the end of May.
David Newnes, director of estate agents Reeds Rains and Your Move, part of LSL Property Services, said: “Private renting is becoming cheaper in real terms. May’s latest sub-inflation rent rises will help over nine million tenants.
“To put that in context, this is more than a hundred times as many households as have benefited from Help to Buy in its initial stages so far.”
Landlords continued to make gross yields on a property of 5.1 per cent on average during May, unchanged from April.
But when house price growth was taken into account, along with void periods between tenants, total annual returns on a buy-to-let property soared to a four-year high of 12.2 per cent.
The figure was more than double the total return of 5.3 per cent recorded in the 12 months to May 2013.
As a result, the average landlord has seen a return of £20,133 in the past 12 months, with £8,107 coming from rent and £12,026 from capital appreciation.
Tenant arrears also improved during the month, with arrears standing at 7 per cent of all rent due, compared with 8.2 per cent a year ago.
Rents in seven out of 10 regions of England and Wales are now higher than they were a year ago.
The South West saw the fastest annual increase, with the typical monthly rent 3.9 per cent higher than it was in May last year at £657.
It was followed by the East Midlands, where rents have risen by 3.8 per cent in the past year to £575, and the North West, where they are now 2.3 per cent higher at £584.
But the annual rate at which rents in London are increasing has slowed down to 1 per cent, compared with a peak of 7.9 per cent in early 2013.
Despite this, London still remains the most expensive place to rent a home at an average of £1,124 a month.
Three regions of the country recorded rent falls during the past 12 months, with the cost of letting a home dropping by 3.6 per cent in the North East and by 2.3 per cent and 0.4 per cent in the East of England and West Midlands respectively.