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Posts Tagged: Landlords

UK Drops To 25th In EU Buy to Let Rental Yield

As a landlord you will no doubt be seeking to obtain the best rental income yield possible on your investment property as well as hoping for a progressive increase in the property’s value. So, how is the UK doing in respect of rental yields in comparison to other countries in the European Union (EU)? Well, according to WorldFirst’s European Buy to Let league table, the UK has unfortunately seen its placing fall to 25th in respect of average rental yields on buy to let properties. Here in the UK the average yield is 4%. It is disappointing to see that the UK is now fifth from bottom of the league table with Austria, France, Croatia and Sweden below us. Sweden is at the bottom of the league table with an average rental yield of 3.03%. So, which EU country is at the top of the table? Well, you would only have to travel over the Irish Sea to Ireland that features in number one spot with an average rental yield of 7.08%. That is a significant difference to that of the UK. In second place is Malta with an average rental yield of 6.64%, in third place is Portugal at…

Number Of Landlords Falls

According to the Countrywide PLC Monthly Lettings Index that was produced for August 2017 the number of landlords here in the UK has gone down by a significant number. In fact, the reduction is 154,000 since 2015. However it is interesting that the number of rented homes has gone up by 171,000. On that basis, this would indicate that a lower number of landlords are renting out more residential properties. In fact, on average a landlord is now renting out 1.44 residential properties whereas back in 2010 the figure was 1.24 homes. This is a significant difference. Between 2007 and 2017 there has been a 33% rise in the number of landlords who are the owners of 10 or more investment residential properties. It is also interesting that back in 2010, 86% of landlords owned just the one investment residential property whereas this year the figure had dropped to 73%. Rental income increased by an average of 1.6% to £954 per calendar month in Great Britain when comparing August of this year with August 2016. It was the South West that saw the largest increase in rental income between the above period with rents rising by an average of 4.7%….

Has Your Tenant Told You About Their Pet?

Here in the UK we are a nation of pet lovers. Whether it is a dog, cat, hamster or a goldfish many families welcome them into their homes and they are very much part of the family for a number of years. However, that is fine if the person bringing a pet into their home actually owns the property as it is up to him or her as to whether they are agreeable to a pet taking up occupancy. It can be quite different if the family wants a pet dog or cat but they are in rented accommodation. The decision as to whether pets are aloud in the home lies with the owner of the property i.e. the landlord and not all landlords are prepared to allow pets in their properties. A survey carried out by Animalfriends.co.uk that provides insurance for pets discovered that over a quarter of those people taking part in the survey did not inform their landlord that they owned a pet and kept it in the tenanted property. Doing this is not right as the landlord may not like having pets in the property as a pet can cause damage and leave smells. If a…

Rental Yields Concern Landlords

Based upon some research, it would appear that rental yields are concerning a number of landlords here in the UK. Many landlords are dependent upon the rental income to cover the running costs of the investment property such as meeting the mortgage repayments, paying for maintenance to the property, paying landlord insurance premiums and paying for the services of a letting agent to manage the property. Information has been produced by the National Landlords Association (NLA) that makes for interesting reading. The statistics reveal that the percentage of landlords who are happy to rely on a regular rental yield has reduced by 15% between Q2 of 2015 and Q2 of 2017. We are sure that you will agree that is a significant drop. This is interesting when you consider that the average rental yield has hovered in the region of 6% per annum for quite a number of years. Some research has been undertaken into the different average rental yields that are achieved in various regions around the UK. For instance, rental properties in East Midlands produced the greatest yield with an average of 6.9%. The North West of England was in second place with an average rental yield of…

Significant Number Of MPs Are Landlords

Landlords come from all walks of life here in the United Kingdom. Some purely earn their living from renting out properties whilst a number of others have other occupations such as teachers, doctors and solicitors. Some interesting research has been carried out by Channel 4’s FactCheck that includes the number of MPs in the UK parliament who rent out properties. In fact, there are 123 MPs who do so including some members of the Government. The above figure equates to not too far off 20% of MPs. We are sure you will agree that is a significant percentage. However, why should an MP not be able to buy an investment property and rent it out to earn additional income just like someone who is say a dentist or a surveyor. There are 87 Conservative MPs, 28 Labour MPs, 3 SNP MPs, 3 Liberal Democratic MPs, 1 DUP MP and the Speaker of the House of Commons. That means that 28% of Conservative MPs let out properties, 11% of Labour MPs do the same, 9% of SNPs rent out investment properties, 25% of Liberal Democratic MPs do this and 10% of DUP MPs rent out properties. The above figures may not…

Average Rent Falls In May

Landlords and tenants may wish to read the HomeLet Rental Index covering May 2017. It provides some interesting information about rental payments being charged by landlords. In respect of new tenancies, the rent being charged on UK investment properties in May was an average of £901 per month. When compared with May 2016, this figure was 0.3% less and is the first time that a reduction in rental income has been seen since December of 2009. It is Greater London that has seen the largest percentage drop with a reduction of 3% when compared with May last year. The average rent being charged in that part of the UK was £1,502 per month. The North East saw a fall in rental income in May of this year with a 2.3% reduction over a period of 12 months to an average of £522 per month. Scotland saw a drop in rental income in May 2017 when compared with the same month last year. Rental income fell by 1.9% to an average of £622 per month. The South East saw rental income drop in May 2017 by 1.5% to an average of £998 per month in comparison to May 2016. Yorkshire and…

Landlords Reaction Should Letting Agents Increase Their Fees

A survey has revealed that a large percentage of landlords would continue to use the service of a letting agent even if the agent increased his or her fees due to a ban on tenant’s charges. This research was carried out by the UK Association of Letting Agents (UKALA). The research revealed that a mere 9% of landlords felt that they would depart company with their letting agent. 7% of landlords were uncertain if they would remain with their letting agent. Also, 9% of landlords felt that they would agree to pay additional fees. It is interesting that 13% of landlords would try to negotiate terms with the tenants. 22% of landlords would try to get a better package by shopping around. Interestingly, 40% of landlords felt that they would charge their tenants more in rent to compensate for the additional expense they would incur. Letting agents will no doubt have to decide what they will do i.e. leave the fee that they charge landlords unchanged or increase it. It will be interesting to see how landlords react to any rise in fees. Will it be comparable to the results of the research mentioned above? No doubt letting agents provide…

Would Your Tenant Tell You If They Damaged The Property?

One of the potential problems with letting out a property is if a tenant damages the property or the fittings or contents. One would hope that your tenant would own up to having caused the damage. Hopefully, your property will not be damaged but, if it does, you will no doubt have suitable landlord insurance in place to cover such eventualities. Well, a survey carried out by YouGov for The House Shop provides some interesting information about the damage to properties that are rented out caused by tenants. It is concerning to hear that 27% of tenants would not inform their landlord if they damaged the property in a major way. That is a very high figure and disappointing to hear about. Of those, 1% would do what they could to hide any damage, 11% would do their own repair work and 15% would use the services of a tradesperson to carry out the repair work. Apparently, 58% of tenants would inform their landlord about the damage to the property. Of those, 27% would wait to be asked if they had to meet any of the repair costs, 7% of tenants would actually make an offer of contributing towards the…

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