Landlords look forward to rent growth
Around a quarter of landlords in the UK say they are expecting rents to rise over the next six months, a report reveals.
The research was carried out by buy to let consults BDRC who also found that 41% of landlords say that the condition of their portfolios is ‘very good’ or ‘good’ for the next three months.
The Rent Check Summer 2018 report also highlights the 38% of investors who say that rents are rising in their area, though that's a drop of 15% on last year's figure.
BDRC also says that over the past five years rents have tended to track inflation in the UK and for all types of property. They add that the supply of rental homes have risen at similar rates.
People are renting their homes for longer
However, researchers say that there is evidence to suggest that growing numbers of people are renting their homes for longer before they buy and the provision of homes for this sector is now falling behind demand.
The report also points to landlords facing new difficulties, including stricter lending rules that were introduced by the Prudential Regulation Authority with two in three landlords saying it's now more difficult obtaining buy to let mortgages than it was before.
The findings also highlight that rent increases are varied around the UK with landlords in central London saying that rent for a two-bedroom flat fell by £111 to £1,680 per month.
For landlords in the East of England rents have fallen by £37 a month, in the south west the fell by £35 a month and in the West Midlands they rose by £23. In the north west rents for two-bedroom flats rose by £22 a month.
Council faces legal action after scrapping informal notices
Meanwhile, Hull City Council is facing legal action after it scrapped informal notices for landlords, except for those who sign up to its own accredited scheme.
Informal notices, which consist of a letter and a works schedule for a tenant’s home after a hazard has been identified but the council says these did not protect tenants in the city from unfair evictions.
Also, the Humber Landlords’ Association (HLA) says that formal notices will cost landlords £250 to receive them.
The HLA says it has applied for a judicial review pointing out the policy is not part of Government regulations and may lead to rent increases and fuel a growing homeless crisis in the city.
The Residential Landlords’ Association is backing the move and its policy director, David Smith, said: “We contacted Hull to express concerns that the structure is not acceptable and we are disappointed they haven't taken our concerns seriously.”