Weekly landlord news digest: Issue 41
In our Hamilton Fraser Total Landlord Insurance weekly landlord news digest, we provide the latest news and important updates in the private rented sector.
In this week’s issue, we cover a report revealing the top 25 postcodes in the UK that generate the highest returns for buy to let investors.
We also discuss a recent petition, put forth by tenants’ rights group, Generation Rent, which calls for a national register of landlords to be compiled and made available to the public.
In other news, property listing company, Zoopla, publishes a nationwide report which details average rent costs across the UK. Also, a former football star, turned landlord, is ordered to pay fines after being found guilty of letting out 12 unlicensed properties.
We also discuss the upcoming National LIS Awards 2019, in which we are delighted to announce that Landlord Action has been nominated for the ‘Best Landlord Legal Services Provider’ award.
Liverpool listed as the top city for buy to let investors
have produced a list of top buy to let areas around the UK which are generating high returns for investors. The list named Liverpool’s city centre as the best buy to let destination in the UK, according to a new property study carried out by REalyse.
The city’s L1 postcode offers a potential 10 per cent return on investment on a property priced at roughly £90,000.
The area is popular for its commercial district and tourist attractions, including the Liverpool One shopping centre, the Albert Docks, and Chinatown.
Five more Liverpool postcodes are listed in the Top 25 Buy to Let Postcodes, with yields ranging from 7.13 per cent to 8.67 per cent.
The London suburb St. Albans, Hertfordshire, reportedly has the nation’s worst buy to let yield of 1.95 per cent, followed by Ipswich, Suffolk, with an investment return of 1.96 per cent.
The list is informative and may be useful for first time buy to let investors and landlords who are interested in investing in a new area.
See Totally Money’s ‘The Top 10 Buy to Let Postcodes’ list below
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Petition calls for stricter rules for rogue landlords
Over 5,000 people have signed a recent petition which calls for landlords to face stricter regulation for the purpose of ensuring tenants are renting safe homes.
The petition was started by campaign group Generation Rent, which works to support private renters. The group is calling for a national register of all landlords in England to be formed and made available to councils, the government, and tenants.
The petition, which supports tenants’ rights, follows the Tenants Fees Act which came into effect in recent months. Similarly to the Tenant Fees Act, Generation Rent suggest that the petition intends to protect tenants and help to establish safe and well-managed tenancies.
The group intends to change this by compiling a national register of landlords with details of their history which is accessible to the public. They suggest that this would help tenants to differentiate legitimate and ethical landlords from problematic ones.
“A national register is crucial. It would make it easy to check if a landlord is meeting certain standards and stop them renting out their properties if not.” While a governmental database of “rogue” landlord currently exists, Generation Rent have stated that only four landlords have been listed since the database was established last year and the database is not accessible to tenants. The idea is pretty simple: a one stop shop that holds information on all landlords across the country. If you are looking for a new home, you can check whether your landlord is registered there, and if they aren’t – you could steer well clear.”
– Generation Rent
Zoopla publish report of average rent costs across the UK
Zoopla have published a report that details the average rent prices across 40 UK cities. The property listing service suggests that renting in the UK has become more affordable because rent costs are rising at half the rate of national earnings.
The Rental Market Report, shows that, on average, rents in the UK have increased by 2 per cent to £876 as of October 2019. Contrastingly, average weekly earnings have risen by 4 per cent. The report consists of average rent levels across 40 cities and 376 local authorities throughout the UK.
The research, carried out by Zoopla, indicated that London was the least affordable UK city to rent in, with costs accounting for 46 per cent of a single person’s wages. Zoopla said that the majority of London tenants however do not live alone, which considerably cuts the costs of renting in the city.
An example of this is two people sharing a two-bedroom apartment in the capital, meaning together they would spend around 23 per cent of their income on rent.
Zoopla suggests that the least affordable areas to rent in are ones in which demand for rental accommodation has grown significantly. These tend to be areas where employment has increased faster than housing supply, areas with high student populations, and places with high house price-to-income ratios.
The report showed that Nottingham had the highest rental growth this year at 5.4 per cent, followed by Leeds and Bristol, both at 4.5 per cent. Hull was named the most affordable place in the UK to rent a home, with housing cost in the city costing roughly 19 per cent of a person’s salary, on average.