Posts tagged ‘renting’
More than a third of people living in rented accommodation think they may never be able to buy their own home, research showed today.
Around 35 per cent of renters aged between 35 and 44, think homeownership may be beyond them, rising to 50 per cent among those in the 45 and 50 age bracket, according to insurer Aviva.
The group found that although 15 per cent of renters were saving for a deposit in the hope of getting on to the housing ladder in the future, 41 per cent of these people had already lived in a rented home for more than five years.
The number of households who rent a property through the private sector has increased by 889,000 since 2008/2009, including an additional 434,000 households in the 25 to 34 age range.
There has also been a 64 per cent increase in the number of families with children living in a rented property during the same period.
The main reason people gave for renting was that they could not afford to buy their own place, cited by 56 per cent of those questioned.
But 22 per cent said they were still renting because the property they were in had become their home and 8 per cent said the house was in a good area in which to raise a family.
The study also found that people in rented accommodation were less likely than homeowners to have certain financial products, such as life insurance, savings and pensions, making themselves financially vulnerable.
Only 23 per cent of renters had life insurance, compared with 51 per cent of homeowners, while just 3 per cent of renters had critical illness cover, compared with 19 per cent of owner-occupiers.
At the same time, 12 per cent of people who rented their home had a private pensions and only 28 per cent had an employer pension, compared with 27 per cent and 59 per cent respectively of homeowners.
People who had bought a property were also more likely to have a savings account at 70 per cent and an ISA at 52 per cent than their renting counterparts, only 53 per cent of whom had a savings account, while just 29 per cent had an ISA.
Louise Colley, protection director for Aviva, said: “Renting offers many benefits such as affordability and flexibility, but there’s a concern that many renters are being left financially exposed.
“When someone takes out a mortgage they are often asked to consider how they might pay it if they were seriously ill or if sadly an income-earner was to die. This can often prompt people to take out protection products like life insurance and critical illness cover.
“If a family rents, these conversations may not happen, so there’s a risk that if a renting family loses an income, they may not have the protection that could help to pay the rent and cover the bills.”
There are nearly seven would-be tenants chasing every available property as demand to rent a home soars, research shows today.
The number of people looking to rent a home jumped by 17 per cent in the year to the end of August, according to letting agency Sequence.
But the number of homes on the private rental market dropped by 20 per cent annual, leading to a significant mismatch between supply and demand.
The situation is particularly acute in London, which has seen the strongest house price gains during the past year.
Demand for rental property has surged by 57 per cent in the capital, but supply has fallen by 8 per cent during the past year.
The group said strong demand was being driven by steep rises in property values which had priced many would-be buyers out of the market, as well as an increasing population.
It said there were now an average of 6.5 prospective tenants chasing every rental property, up from 4.4 potential renters per property in August last year.
Fierce competition for a dwindling supply of homes has put upward pressure on rents, with the cost of letting a home rising more than four times quicker than average wages.
Typical rents in London have soared by 9 per cent during the past year, to stand at an average of £1,597 a month, while across the rest of the country they are 4 per cent higher at £708.
Stephen Nation, head of lettings for Sequence, said: “Demand to rent in the UK is rising and as a result of a shortage in supply we are now seeing rents rising at four times the rate of wages.
“While there is a natural ceiling for rents, this is lifting as demand increases and the age, and thus income, of the average tenant also grows.
“The new generation of renters are willing and able to pay more for their rental property. Until supply is able to keep up with demand, then I would anticipate rents will continue to rise.”
The number of new tenancies agreed rose by 7 per cent during August and by 17 per cent year-on-year across England and Wales, excluding London.
In the capital the number of tenancies agreed soared by 13 per cent in August alone to stand 26 per cent higher than for the same month of 2013.
The Association of Residential Letting Agents also warned of a growing mismatch between supply and demand in its third quarter report.
It said 68 per cent of letting agents reported seeing more people wanting to rent than there were properties available.
It was the third consecutive quarter that the number of agents reporting that demand was outstripping supply had increased.
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.”