Here is our last Newsround for August, let’s see what has caught our eye this week.
Gap widens for tenants’ budgets v annual rents
SpareRoom claim in a new survey that tenants now need an extra £312 a year to cover rent that is in excess of their budget. Their research was carried out taking in over 216 towns and cities in the UK and found that 71% of renters are paying more than what they actually budgeted for.
Out of the 216 towns only 63 areas have rent that is within a tenants actual budget and 153 areas exceed tenants budgets on a monthly basis.
Matt Hutchinson, director of SpareRoom said
This data reveals that in a staggering 71% of towns and cities around the UK, rent has increased to the extent that prices are higher than renters’ budgets. We need renting to be genuinely affordable, otherwise people end up trapped and unwilling to move.
You can read more here.
County wide PRS scheme launches in North Yorkshire
North Yorkshire council has launched a housing enforcement policy that applies to all private rented properties within its county, this one scheme replaces seven individual previous housing schemes. It is aimed at maintaining high standards within the sector and cracking down on substandard housing.
Fines are now up to £30,000 for any landlord, letting agent and property manager that is not compliant. The PRS makes up 18.6% of housing within the county and Councillor Simons Myers says
A new policy will give us a balanced approach to housing enforcement work and ensure that privately rented homes are well managed, properly maintained, safe and habitable.
New EPC rating of ‘C’ is unobtainable claim landlords
A new survey out by chartered surveyors and auctioneers, Landwood Group claim that 95% of landlords say that it will be impossible to meet the governments new requirement to meet the EPC standard of a ‘C’ rating by 2030.
This is having a knock of effect with an increase in landlords putting their rental properties, both single properties and large portfolio’s up for auction. Mark Bailey of Landwood Group says
The focus on improving modern social housing, overlooks the vast majority of Britain’s private rental properties which are ageing and would require significant, costly upgrades to meet the EPC C standard.
For many, achieving this rating is not just challenging; it’s nearly impossible without substantial financial investment.
This means that there will be less stock in the PRS for renting thus impacting renters more. Mark Bailey says that ‘the government must address the housing crisis first’ before imposing these new EPC targets.
PRS demand continues to remain high
The demand for rental properties in London has increased according to Chestertons Letting Agency who has seen a 22% month on month increase in tenants taking on properties in July, with a 7% increase in inquiries.
Adam Jennings of Chestertons’ says
This year, we are seeing additional demand from aspiring homebuyers who, despite mortgage rates starting to fall, continue to rent.
He claims that they have had an increase of 14% in new lettings instructions, but there are still many prospective tenants vying for one property.
Snippets
E-Bikes in Rental Properties – Key considerations for landlords
Eco-upgrade schemes worth £20m for landlords now live across England
EPCs to be replaced by a new Home Energy Model this year
Council slaps £250 surcharge on ‘late’ landlord licence applications
Solicitor convicted of harassing tenants given suspended jail term
Report paints a grim picture of homeless excluded from private rented sector
See also our Quick News Updates on Landlord Law
Newsround will be back again next week.