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Year: 2020

  • Landlords take hit to support tenants

    Landlords take hit to support tenants

    Private landlords are willing to take a temporary hit to rental income to support tenants struggling as a result of coronavirus according to new research published today.

    According to a survey of over 4,500 landlords by the NRLA, 90% of landlords who had received a request for support from a tenant had responded positively.

    This included offering tenants a rent reduction or deferral, a rent-free period, early release from a tenancy or a refund on service charges included in rents for homes of multiple occupation.

    Calls for help

    Of all the landlords surveyed, 44% had received a request for help.

    Over half of landlords have been affected in some way by the impact of the virus on their tenants with 54% having experienced some combination of rent payment problems or unanticipated periods when properties are empty.

    It finds that 60% of those landlords who have declared rent arrears have experienced at least the equivalent of one month’s loss of income across their portfolio.

    The figures are supported by a large number of case studies the NRLA has received from landlords seeking to support their tenants, which have included free or substantially discounted accommodation for NHS workers, and landlords pro-actively assuring tenants that their tenancy is not at risk.

    Spirit of co-operation

    Ben Beadle, Chief Executive of the NRLA said: “This research proves that the vast majority of landlords are doing everything possible to support tenants through difficult times.

    “To suggest otherwise is needless scaremongering and serves only to heighten anxieties for tenants when we need a spirit of co-operation.

    “We are continuing to work with landlords and the Government to sustain tenancies through the immediate crisis and beyond.

    “As Ministers consider their next steps regarding the ban on evictions, they should not make it more difficult to take action against tenants who may be committing anti-social behaviour or domestic abuse, or where they are wilfully withholding rent which they can afford to pay.

    “We need landlords who are going through a difficult time to have the confidence to stay in the market. Otherwise we are only going to end up with a worsening housing crisis as more tenants chase fewer properties.”

    Written by Sally Walmsley

    Blog Post from Residential Landlords Association

    See details of our Guaranteed Rent Scheme here

  • Evictions to restart as courts get ready to open for possession hearings on June 29th

    Evictions to restart as courts get ready to open for possession hearings on June 29th

    Solicitors are told to expect that both suspended and new hearings are to restart but that they will be held online or on the telephone until it is safe to hold them in person.

    Word has reached Landlordzone that one of England’s busiest civil and family courts has revealed to its regular users that it is preparing to begin listing possession hearings once again on Monday 29th June, indicating strongly that is the date when most other courts in England are likely to also begin hearing cases once again.

    This would suggest that the government is now unlikely to extend its legislative evictions ban past the end of June after a three month hiatus, if the courts system is now getting ready to hear both existing and new possession cases once more.

    The courts preparing for hearings from the end of June is good news for landlords who have had claims stuck in the court system since mid March relating to issues pre virus.

    It was a very sensible step by the government to suspend evictions for public health reasons for a reasonable period of time but now with it being deemed safe to move and the property market back in full swing it seems right not to carry on with the blanket stay on all possession claims.

    Video calls

    “There will be more work required for each hearing including communicating before the hearing and the logistics of getting everyone on the telephone or video call with a narrow window of time based on the volume of hearings needed to take place. We see this as a challenge but one we are ready for having worked fully remotely for the last nine weeks,” says Tim Frome, Legal Director of Landlord Action

    But the court involved is also worried that many large portfolio landlords are not yet ready to restart possession claims as many of their staff may have been furloughed, and many others are still deciding whether it’s worth evicting tenants who have fallen behind with their rental payments.

    To help keep solicitors, court staff, tenants and landlords safe, it is understood that block possession hearings will initially be heard via telephone or one of the virtual meetings platforms, which itself will be a first for England’s court system, in half hour intervals.

    On top of accelerated hearings that require only sight of paperwork, judges are expected to complete ten hearings a day in a bid to deal with the backlog of hearings ‘stayed’ during the ban, plus an expected rush of new possession hearings.

    This will present a logistical hill to climb for the courts, as they will have to chase down participants for each hearing, not an easy task when dealing with people who are not that familiar with virtual technology.

    Consequently, judges have been urged to ensure that vulnerable tenants are not prejudiced by the new process.

    Blog Post from Landlord Zone

    See details of our Guaranteed Rent Scheme here

  • Home Buyers Resume Property Search

    Home Buyers Resume Property Search

    Home buyer appetite to resume property search is expected to sustain stability in the housing market.

    Millions of home buyers and renters across England resumed their property search within hours of the Government’s surprise relaxation of the coronavirus lockdown imposed on the housing market on March 23.

    Property portal Rightmove reported 5.2 million visits to its property search on Wednesday May 13, a four per cent increase compared to the same day a year ago.

    The number of buyers who called or emailed an estate agent after seeing a listing on Rightmove doubled on Wednesday compared to the day before and was just 10 per cent behind the same day a year ago.

    Rental demand also surged, with Rightmove recording the highest number of enquiries in one day since September last year.

    As property viewings in person started again in London — with strict social distancing guidelines in place — estate agents reported “phones ringing off the hook”, record numbers of enquiries and a huge spike in instructions and valuations.

    Miles Shipside, Rightmove director and housing market analyst said: “The traditionally busy spring market was curtailed by lockdown, but we’re now seeing clear signs of returning momentum.”

    The market remains closed in Wales, Scotland and Northern Ireland.

    How long will it take for the market to recover?

    Despite the flurry of activity, for the second month running Rightmove was unable to produce its report on trends in asking prices, as the volume of newly marketed properties within the past four weeks remains too low.

    The number of homes coming to market is down 90 per cent on the same period a year ago. But with a week-on-week increase of 111 per cent on the day the market reopened, a growing number of newly marketed properties should start to trickle through.

    Most homes that were for sale before the Covid-19 pandemic remain as active listings. In Greater London about 49,000 homes are currently listed for sale, with 56,800 for rent.

    Miles Shipside said: “We expect consistent momentum to rebuild over several months rather than weeks. With no new seller asking price data it’s too early to comment on price movements, though high demand is needed to support a stable market.

    “If there are attractive lower-deposit mortgages available, it would help sustain the recovery in activity. The industry has been caught by surprise, as we were all expecting the market to stay closed until at least June.”

    The lockdown effect on home moves

    Lockdown left 450,000 buyers and renters stranded mid-transaction, unable to push on with home moves worth an estimated £80 billion.

    James Clarke, head of London sales at Knight Frank, said last month that most deals already under way when the crisis began were continuing. He estimates that 80 per cent of pre-lockdown deals remain on track. “Some sales are falling through, but you’d expect that in a normal market,” he adds.

    Many people working from home during almost eight weeks of lockdown are seriously re-evaluating their situation.

    Rightmove said the number of Londoners searching for rental homes with gardens skyrocketed by 101 per cent in a week. A survey by Savills indicated 30 per cent of Londoners are now more likely to consider a village or countryside location for their next move.

    Miles Shipside noted “the existing desire to move now being supplemented by some people’s unhappiness with their lockdown home and surroundings”.

    What does the housing market reopening mean for prices?

    Knight Frank has downgraded its forecast of UK house prices for the year ahead, from a three per cent dip to a fall of seven per cent compared to last year, despite the market’s unexpected resumption. Much of this decline has already taken place during lockdown.

    The forecast is based on discounts demanded by buyers when they make an offer.

    Many other forecasters and agents say it is just too early to tell what will happen to house prices yet.

    What is the ‘new normal’ for home viewings?

    Buyers, sellers and agents are adapting to a seismic shift in the way property is marketed and viewed, by adhering to the Government’s strict guidelines on home moving during the Covid-19 pandemic.

    Virtual viewings are encouraged in the first instance, as the number of physical viewings allowed per day is restricted.

    Estate agents, who are required to wear masks and gloves, are sanitising doors and switches before and after viewings, while homeowners must vacate the property while viewings take place.

    Blog Post from Homes & Property Evening Standard

    See details of our Guaranteed Rent Scheme here

  • Home Valuations In Lockdown

    Home Valuations In Lockdown

    How different are virtual home valuations to traditional in-person types?

    House moves, physical viewings and in-person valuations started again in England yesterday, effectively reopening the property market which had been frozen since lockdown began more than seven weeks ago.

    London estate agents and housebuilders saw an immediate increase in enquiries from buyers and sellers since Housing Secretary Robert Jenrick’s announcement at 10 o’clock on Tuesday, while online property portal Rightmove reported a 45 per cent surge in visits yesterday morning compared to the same time the day before.

    Since the Government’s “stay at home” guidance was issued on March 23, more than 450,000 property transactions have been put on hold, while 1.8 million people were not moving home because of the pandemic according to research by HomeOwners Alliance.

    Chief executive Paula Higgins said: “The latest news will be a relief for those who have had their moves put on ice; and for those whose current living arrangement is not fit for purpose especially as our fight against the virus is far from over.”

    She added: “With changes in working patterns set to be made permanent, people’s housing needs may very well change. People may start to value gardens and home offices over a hassle-free commute to work and this could have an impact on property valuations over the coming months and years.”

    Will it be difficult to book a home valuation – and what is a virtual valuation?

    In the weeks following the introduction of stringent lockdown measures, some estate agents have looked to virtual viewings and home valuations as a way of keeping the property market afloat.

    Usually involving a call with an agent over video platforms such as Zoom or FaceTime, although some owners prefer to send pre-recorded videos via WhatsApp, a virtual valuation involves a “tour” given by the owner to the estate agent – intended to include all the property features of value, ie. the number of bedrooms, the condition of the home, the storage available and outside space if applicable – much in the same way that an in-person valuation would be conducted.

    While in-person property visits are now permitted so long as strict social distancing is adhered to, the number of viewings allowed per day is restricted.

    Agents also have a backlog of valuation appointments from enquiries made during lockdown so many say virtual methods are likely to continue alongside traditional valuations for some time.

    “They’ve been really successful for us,” said Steve Brown, branch manager of Winkworth Blackheath. “In the last two-and-a-half weeks we’ve done 27, in a few different ways.”

    Most have been conducted over video calls, as more people are using platforms such as Zoom, while others have been owner-filmed video recordings of the property. “We’ve had a dozen or so instructions on the back of those valuations,” says Brown.

    A two-bedroom flat in a period conversion in Quentin Road, within walking distance of Blackheath Village, is one such instruction to have gone on the market this week after its virtual valuation of £650,000.

    The agent had images from a previous letting listing and the road, near the Winkworth office, is a popular one for sales: “I have sold or been into virtually every property on the street over the past 15 years and sold almost four identical properties over the past 15 months,” says Brown.

    Ross Brien of Hamptons International reported similar activity across the company’s south-west and west London branches.

    “We’ve done 72 virtual valuations since the start of lockdown and had 38 property instructions,” said Mr Brien, with agents offering house doctor-style appointments in order to advise potential sellers on small interiors changes they would or wouldn’t recommend doing to the property in order to boost chances of securing a sale.

    “In some ways [with FaceTime appointments], it’s actually better, I get to see what’s really important to the sellers – they’ll really tell you about the view they love for example – which is important to know for appealing to the buyer coming in.”

    How many valuations should I get?

    Most people get two to five valuations done on their home before listing it for sale.

    It depends on whether the property has been for sale in the past few years, whether the seller is familiar with recent local sales prices and whether their expectations are in line with those of buyers in this uncertain market.

    What is a desktop mortgage and can I get one?

    A “desktop mortgage” is a mortgage approval based on an automated valuation.

    Mortgage lenders are able to offer desktop valuations, but the amount they can offer varies from lender to lender. Some will offer a mortgage restricted to 75 to 85 per cent loan-to-value.

    The mortgage valuer looks at the property market value, and recent sales in the area, alongside other factors. This is fine if there have been lots of similar sales recently.

    Desktop valuations aren’t always available on homes where too many variables mean the exact arrangement of a property can’t be determined without visiting in person. Common types of properties which may not be eligible for desktop valuations are new-build properties, flats and homes that have been extended or those of an unusual design.

    Similarly, if the property is somewhat unique, or in an up-and-coming area, for instance, a valuer will have to visit it in person.

    “Re-allowing surveyors to enter homes as long as a distance of two metres is maintained means that physical valuations can get going again,” says Miles Robinson, head of mortgages at online broker Trussle.

    Blog Post from Homes & Property Evening Standard

    See details of our Guaranteed Rent Scheme here

  • Reopening Of The Housing Market Sees Property Values Fall

    Reopening Of The Housing Market Sees Property Values Fall

    House prices are set to fall further than anticipated this year, despite the unexpected reopening of the housing market last night, after the Government confirmed at the weekend that some lockdown restrictions would last until at least July.

    Knight Frank said UK house prices would fall seven per cent compared to last year, in a revised forecast released yesterday ahead of Housing Secretary Robert Jenrick’s announcement.

    At the start of April the estate agent predicted house prices would drop three per cent, assuming lockdown was lifted by the end of this month.

    The minister’s surprise move triggered a spike in activity today. However, the revised report said much of the decline in prices had already taken place between March and May, so the reopening of the housing market today after seven weeks on pause would not impact the forecast.

    Estate agent PPE and buyer health checks — a ‘new normal’ for property

    The predicted price falls are based on discounts that home buyers are asking for when they make an offer. In March, homes were sold for 98 per cent of their asking price on average, according to Liam Bailey, global head of research at Knight Frank.

    Sellers, in comparison, are accepting offers for 94 per cent of the asking price on average, which would represent a four per cent drop in sold prices since March.

    Allowing for the fact that some asking prices will also have dropped since March, Bailey estimates that house prices have fallen five per cent since the beginning of the coronavirus crisis.

    However, he said they are unlikely to keep falling at the same rate. “The key question is, will vendors accept discounts of more than five per cent? Some will, but there is growing evidence from the widening spread between average offers and the offers that are being accepted, that many simply won’t.

    “If we add into the mix the fact that we have low new-build rates coming through in 2020, low inventory and low interest rates, it becomes less likely we will see significant further falls from here.”

    The agent had previously said it expected more than half a million home sales to be “lost” this year as a result of Covid-19 and this remains unchanged in its new calculations, although the report says this might be a low estimate.

    “Looking at the volume of activity that has occurred through lockdown – it might be that we were slightly pessimistic. More sales have taken place, and fewer sales have failed to complete, compared to what we initially expected,” said Bailey.

    However, he said Knight Frank’s initial forecast was unchanged as it anticipated “some additional challenges ahead for transactions from future pricing discussions”.

    Blog Post from Homes & Property Evening Standard

    See details of our Guaranteed Rent Scheme here

  • London First-Time Buyers Deposit More Than £70k

    London First-Time Buyers Deposit More Than £70k

    London first-time buyers trying to get a foothold on the property ladder are hit hard as lenders’ deposit requirements leap to 15 per cent — or more.

    London first-time buyers face trying to save eye-watering deposits of more than £70,000, amid stricter criteria from lenders as a result of Covid-19 lockdown’s impact on the mortgage market.

    A new study by property portal Rightmove highlights the “deposit gap” across 20 English cities as the housing market reopens, with first-time borrowers being asked to find deposits of 15 per cent loan-to-value – rather than 10 per cent – to meet eligibility criteria.

    The biggest deposit is needed in London. The average asking price for London first-time buyers — categorised as having a maximum two bedrooms — reached £477,569 in April, a two per cent increase on the same month last year.

    This means an average 15 per cent deposit of £71,635 is currently required to secure an 85 per cent mortgage, creating an average deposit gap of nearly £24,000 when compared to a 10 per cent deposit requirement of about £47,000.

    The average asking price in England as a whole is significantly less at £241,891, so a 10 per cent deposit is currently just over £24,000, jumping above £36,000 if 15 per cent is required.

    Have asking prices dropped for first-time buyers?

    Many first-time buyers who can scrape up the required higher deposit will no doubt be hoping to bag a good buy after a seven-week pause in the market.

    However, prices of typical first-time buyer homes have generally remained static across the country.

    Rightmove’s commercial director and housing market analyst, Miles Shipside, comments: “Many first-time buyers looking to grab a bargain right now may find they’re disappointed, as on the whole asking prices of all first-time buyer properties up for sale have been holding up.

    “There will of course be some sellers who need to sell quickly and may be willing to negotiate on price, so it’s worth asking your local agent if there are any in this predicament, if you do now need to lower your budget. However, where demand is outstripping supply and it’s an attractive property in a desirable location, then an offer closer to the asking price will have a better chance of being accepted.”

    The impact of coronavirus on first-time buyer mortgages

    Recent data from online mortgage broker Trussle highlighted the disproportionate impact the locked-down mortgage market has had on first-time buyers, with home loan applications down by 53 per cent between March and April.

    Banks pulled more than half of their products, shut the doors to new applications and stopped physical mortgage valuations.

    According to Moneyfacts.co.uk, there are currently only 22 two- and five-year fixed rate deals available to new borrowers with a five per cent deposit, compared to 257 available in March.

    Borrowers seeking 95 per cent mortgages will face higher interest rates, as a small deposit will be deemed as high risk by lenders in this market. A physical valuation is also likely to be required, with the lockdown backlog causing further delays.

    “If lenders are able to offer more attractive lower-deposit mortgages, it would help sustain the recovery in activity,” said Miles Shipside. “If it can be done responsibly, with strict affordability criteria, then a return to more mortgage offers of 90 per cent loan-to-value, or even 95 per cent, could make a huge difference to someone having enough money now for a deposit or having to save up for another few years.

    “First-time-buyers will be keeping a close eye on how lenders’ deals unfold.”

    For buyers with a 10 per cent deposit, Trussle highlights a 90 per cent mortgage on offer from HSBC as one of its current best two-year fixed-rate deals.

    However, the online mortgage broker points out that prospective home buyers on furlough will find lenders only consider reduced salaries and many are asking for confirmation from their employers that that they will be going back to work.

    Blog Post from Homes & Property Evening Standard

    See details of our Guaranteed Rent Scheme here

  • Residential Developments New Criteria

    Residential Developments New Criteria

    Buyers have a new set of criteria in their search for residential developments after lockdown.

    Two months of staring at their four walls and walking around the same neighbourhood have prompted Londoners to base their decision making on the safety of a district’s streets, easy access to green space and amenities, local community activities and a choice of ways to travel — including cycle lanes — in order to avoid crammed Tube trains.

    Wider pavements will appeal to people living in fear of contagion and future lockdowns. Above all, after Covid-19, buyers will associate space with safety in residential developments.

    “Buyers, who have spent a long time in their homes, will also question the quality of the architecture and how the design works,” says John Lewis, director at housing association Peabody.

    “The fundamental principles of good design in both residential developments and wider neighbourhoods will become implicit in their buying decisions.”

    New pavement café culture

    London Mayor Sadiq Khan has announced a new streetscape programme to include the rapid creation of pop-up cycle lanes and footpaths leading to town centres.

    Euston Road is one of the first major thoroughfares to get a temporary cycle lane.

    “Covid-19 will have a profound effect on our residential developments,” says Professor Tony Travers of the London School of Economics.

    He calls for local authorities to allow restaurants and bars to create a pavement café culture this summer, serving more customers out in the street while socially distancing.

    Working hard to create safer streets in Lambeth

    Lambeth council has taken action to create safe passage for its residents when lockdown ends.

    Work began in April around Herne Hill and Loughborough Junction in Lambeth to widen pavements and calm traffic before restrictions are lifted.

    Longer-term projects will follow to create safe streets leading to and from the town centres to keep residents safe and encourage them to shop locally.

    “Coronavirus has dramatically changed the way people are using the streets,” says councillor Claire Holland. “Many people are walking and cycling to make essential journeys or exercise, to ensure public transport is used only by people who need it.”

    There is a New York-style loft apartment on sale in the Embassy Works apartment block overlooking Vauxhall Park.

    The one-bedroom flat is on the market for £650,000 through Savills. Call 020 3402 1900.

    Marsh & Parsons is selling a one-bedroom house at Imperial Mewsin the heart of Brixton for £665,000, just a minute’s walk from Brixton Underground station on the Victoria line, and also close to Brixton station for trains into London Victoria.

    Boroughs just right for social distancing

    Only a third of pavements across Greater London are wide enough for social distancing, according to a study by University College London.

    However, there’s a handful of boroughs where half the streets have six metres or more of non-road space in the form of pavements and grass verges.

    The City, Barking & Dagenham, Westminster, Brent and Harrowmake up the top five boroughs by width of pavement.

    Barking & Dagenham: vast regeneration

    Average asking price: £317,185 (Rightmove)

    The closure of three power stations has left 443 acres of Thames-side brownfield land which is being converted into a new town.

    Barking Riverside has been designed around existing creeks, brooks, wetlands and ponds along a two-kilometre stretch of the Thames and will deliver 10,800 new homes with shops, healthcare facilities, restaurants, community centres and seven new schools.

    A London Overground station is set to open next year.

    There are a few homes left in the current residential developments phase by housing association L&Q, with prices from £237,500. Call 020 8617 1747 for details.

    Also part of Barking Riverside is Fielder’s Quarter, due to complete next year. Residents here will have access to a gym, concierge service, a cycle hub and electric car charging points. The closest station is Upney Tube station.

    Meanwhile in Rainham, half of Beam Park, a 3,000-home development, is made up of green space.

    The River Beam runs through the scheme, which has a seven-acre park at its centre. A new railway station is under construction.

    One- and two-bedroom apartments are priced from £285,000 with Help to Buy available. Visit [email protected] to contact developer Countryside.

    Brent: fast-changing

    Average asking price: £583,206

    Brent, the 2020 London Borough of Culture, stretches 17 miles from the suburb of Queensbury to Kilburn on the edge of central London. The biggest development is the regeneration of Wembley Park.

    When it completes, the final result will be a 7,500-home rental village.

    Well-established neighbourhoods include Queens Park, Kensal Green and Kilburn, while other new schemes include Grand Unionin Alperton.

    Grand Union is the redevelopment of a derelict industrial estate into a 3,000-home canalside village. Prices start from £412,000. Call 020 8733 2460.

    There are one- and two-bedroom apartments at Queensbury Square in Honeypot Lane next to Queensbury Underground station, from where Jubilee line services take 25 minutes to Bond Street.

    Queensbury Park and its wetlands are around the corner, as well 250-acre Fryent Country Park. Prices start from £303,000. Visit the website for more.

    Harrow: village living

    Average asking price: £557,782

    The pretty village of Harrow on the Hill is home to the historic boarding school while the rest of Harrow, with its rows of Thirties semis, spreads out below.

    A £2.2 million 10-year town upgrade is under way, to bring 5,500 new homes, 3,000 jobs, two new schools and public squares by 2025.

    New residential schemes give first-time buyers access to the area. Eastman Village is the 2,000-home redevelopment of the former Kodak factory over 55 acres.

    Prices start from £325,000 with a £7,000 stamp duty discount. Call 0330 127 7586.

    Four two-bedroom flats are left at Redrow’s Lyon Square in Harrow. It’s designed around a central garden and residents all get access to an on-site gym and cycle storage.

    Prices start from £480,000. Call 020 3733 0199.

    City of London: widest pavements

    Average asking price: £1,125,343

    The Square Mile has the widest pavements in relation to road space of any London borough, boasting the highest percentage of streets, at 51 per cent, with non-road space.

    The banking district comprises mainly offices but there are new boutique apartment blocks springing up within walking distance of these workplaces as the residential population grows.

    HKR Hoxton in Hackney Road has 66 studios, one-, two- and three-bedroom apartments. There’s a gym in the building, a landscaped garden and a roof terrace.

    Hackney City Farm, Haggerston Park and Columbia Road Flower Market are on the doorstep and it’s a 20-minute walk to Liverpool Street station.

    Prices from £499,999. Call Savills on 020 7531 2516.

    The Denizen is a tower of 99 apartments in Barbican, with an on-site cinema, reading and games rooms and concierge services.

    Prices from £742,000. Call 020 3627 5770.

    Westminster: boutique developments

    Average asking price: £1,493,092

    Plans were already under way pre-coronavirus to pedestrianise areas of Westminster, particularly around Strand, Tottenham Court Road and Marble Arch, to create more space for shoppers, calm congestion and reduce air pollution.

    Such projects will be “accelerated” to make more room for people to socially distance so the West End can reopen safely, according to Jace Tyrrell, chief executive of New West End Company.

    There will be staggered reopening of different department stores and shop floors, while emergency talks are in progress to plan the safe management of queues outside stations including Oxford Circus, Tyrrell tells Homes & Property.

    The boutique scheme Lyons Place is in a quieter part of Westminster. The low-rise block of 24 apartments and five townhouses is set back from Regent’s Canal in Little Venice.

    Prices for a one-bedroom apartment start from £850,000. Call Rokstone on 020 7580 2030 for details.

    Blog Post from Homes & Property Evening Standard

    See details of our Guaranteed Rent Scheme here

  • Airbnb support firms want to offer credit notes not cash refunds

    Airbnb support firms want to offer credit notes not cash refunds

    The plethora of support companies around Airbnb and other short let platforms in the UK have told the government that it should “minimise limits” put on overseas visitors and allow firms to offer credit notes instead of refunds to consumers.

    The UK Short Term Accommodation Association says it’s been in discussion with the government on how to bring the short lets sector back now that lockdown restrictions have been eased.

    It claims that with the expected restrictions on international travel and possible quarantine provisions, the sector could be seeing only 25 per cent of its expected activity in the summer months.

    It says that even after the Coronavirus Job Retention Scheme, Coronavirus Business Interruption Loan Scheme and Bounce Back Loan Scheme – all benefitting some elements of the sector – it needs more targeted interventions.

    Specifically the STAA wants:

    1. Short Lets providers to be regarded as a stand-alone category to be included in current and future support schemes for the hospitality industry such as business rates holidays and grants;

    2. UK law to be amended to allow providers to offer vouchers and credit notes instead of cash refunds;

    3. Enabling more companies to participate in the Future Fund by lowering the investment threshold for eligibility;

    4. Allow government grants and loans to benefit the sector’s private investors;

    5. Minimising limits placed on international visitors by ensuring that travellers who have to self-isolate, during this period, have the option to book a home and that any limits are in place for as short a period as possible.

    “It’s imperative that more is done if we are not to see a complete collapse of many companies in a sector that provides so many jobs, has valuable supply chains and provides vital options for consumers in the UK’s tourist accommodation sector” claims Merilee Karr, chair of the STAA.

    For those short-letting their home, and the companies that operate in the sector, the loss of both present and future income can be devastating and countless small entrepreneurs face going out of business, removing money from local economies” she says.

    Blog Post from Letting Agent Today

    See details of our Guaranteed Rent Scheme here

  • Average time to let soars thanks to lockdown

    Average time to let soars thanks to lockdown

    Rents on renewed tenancies fell for the second month in a row according to data from Hamptons International.

    In April the average rent on a renewed tenancy stood at £925 pcm, which was down 1.1 per cent year-on-year.

    Rental growth on renewed tenancies has continued to slow – it was down 0.5 per cent annually in March after being up 1.5 per cent for the year in February.

    Meanwhile the agency says in the lockdown month of April it took 29 days on average to let a rental home in Great Britain, five days longer than a year earlier.

    The four slowest regions to let a property were in Wales, Yorkshire & Humber, the South East and the North East – all 33 or 34 days.

    The South West, which up until last month had seen some of the strongest rental growth, was the quickest region to let a home – an average of 25 days.

    Demand for one-bedroom homes means that these usually rent the fastest, however this changed last month when three-bedroom homes let the quickest.

    Blog Post from Letting Agent Today

    See details of our Guaranteed Rent Scheme here

  • Short lets regulation options to be considered by government in June

    Short lets regulation options to be considered by government in June

    A document outlining options for the future regulation of Airbnb and other short let platforms in the UK is to be considered by the government next month.

    A statement posted by the House of Commons Library says that the options are in a paper which Airbnb, amongst others, have helped prepare.

    The news comes in a 46 page briefing document prepared by the Commons Library and released yesterday.

    Much of it covers familiar ground, saying how the rapid growth of the short lets sector, before the arrival of Coronavirus, has caused concern over anti-social behaviour linked with the sector, and a possible reduction in stock for long term rental or owner-occupation.

    It says that according to Airbnb, 223,200 active UK listings were posted between July 2017 and July 2018, 58 per cent of which were for an entire property. London had more active listings (75,700) than other regions, but all regions saw substantial growth in the number of listings over the year to July 2018.

    Analysis by external organisations, using data taken from Airbnb’s website, provides supporting evidence of the growth in short-term lettings. Data collected by Inside Airbnb, a campaign organisation, found around 88,100 listings in London in March 2020, almost five times higher than the number in April 2015.

    Aside from the temporary Coronavirus restrictions, in normal times there is an annual limit of 90 nights a year being allowed for London residential property to be short let, but with no restriction at all outside London.

    The report goes on to list concerns about the sector’s rapid growth – chiefly, commercial operators using residential properties as letting businesses in breach of planning rules; the challenges local authorities face in taking planning enforcement action; impacts on local housing markets; negative impacts on neighbours and local communities, for example from noise disturbance and anti-social behaviour; taxation compliance; compliance with health and safety regulations; and the implications for traditional short-term accommodation businesses such as hotels and Bed and Breakfast accommodation.

    The government has made it clear that it has no plans to ban the use of residential properties for short-term letting. It considers that further legislation would be overly bureaucratic, and could act as a barrier to households letting out their properties on a short-term basis.

    Instead the report says government prefers a non-regulatory approach by encouraging the Short Term Accommodation Association to improve standards and promote best practice in the industry.

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