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TODAY'S OTHER NEWS

Rents on renewed tenancies drop for second month in a row

Rents on renewed tenancies fell for the second consecutive month in April, the latest Hamptons International Lettings Index shows. 

Last month, the average rent on a renewed tenancy stood at £925 per calendar month (pcm), down 1.1% year-on-year. 

Rental growth on renewed tenancies continued to slow from -0.5% in March 2020 and down from 1.5% in February which marked an 18-month high. 

London and the South East were the only regions where renewed rents fell, dropping by 3.2% and 2.4% respectfully. 

Meanwhile, Scotland recorded the strongest annual rental growth, up 4.2%, followed by the North and Midlands, at 2.7% and 1.9% respectfully. 

Aneisha Beveridge, head of research at Hamptons International, commented: “Rental growth continued to slow last month, with average rents on renewed tenancies in Great Britain falling for the second consecutive month.   

“Uncertainty regarding household incomes has led to the fall in rents in London and the South East, where tenants’ incomes tend to be most stretched.”

Average rent of renewed tenancies (pcm)

Region

Apr-19

Apr-20

YoY

Greater London

£    1,701

 £    1,647

-3.2%

South East

£       997

 £       973

-2.4%

South West

£       763

 £       775

1.6%

East of England

£       917

 £       922

0.5%

Midlands

£       646

 £       658

1.9%

North

£       593

 £       609

2.7%

Scotland

£       622

 £       648

4.2%

Wales

£       610

 £       616

1.0%

Great Britain

£       935

 £       925

-1.1%

Great Britain excluding London

£       738

 £       744

0.8%

Source: Hamptons International

 

The data from Hamptons International, part of Countrywide, also shows that the average time to let a property rose to a record high last month.  

In April it took 29 days on average to let a rental home in Great Britain, five days longer than in April 2019.

Beveridge continued: “Restrictions on movement throughout April meant that those homes available to rent took much longer to let than usual.  Demand fell back as most tenants chose to stay put and extend their existing tenancies. It took 29 days on average to let a home in Great Britain last month, the longest time recorded in any April since our records began in 2013.”

Rents on renewed tenancies drop for second month in a row

Average days to let by region

 

Average days to let

(Apr-20)

YoY Change

South West

25

+3 days

East of England

26

+4 days

London

27

+3 days

East Midlands

28

+4 days

West Midlands

29

+6 days

Scotland

29

+6 days

North West

29

+1 day

North East

33

+5 days

South East

33

+10 days

Yorkshire & the Humber

33

+9 days

Wales

34

+7 days

GB

29

+5 days

Source: Hamptons International                                          

Lockdown measures unsurprisingly led to a decline in rental demand, with more people staying put, and this is reflected in the figures.

The time it took to let a property last month rose in every region.  

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

These same regions – aside from the North East - also recorded the biggest year-on-year increases in the time it took to let.  

The average time it took to let a home in April rose the most in the South East (+10 days), followed by Yorkshire & Humber (+9 days) and Wales (+7 days) compared with the same period last year. 

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

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

It took 29 days on average to let a three-bedroom home in April 2020, six days longer than the same time last year.  Whereas one-bedroom homes took 30 days on average to let last month, seven days longer than in April 2019. 

Beveridge added: “While demand in the rental market dropped following the introduction of lockdown measures in March the latest indicators show that it has now almost recovered to pre-lockdown levels. And given the changes to government advice on home moving announced last week, we expect activity in the rental market to return quickly.”

Average days to let by number of bedrooms

Beds

Average days to let (Apr 2020)

YoY Change

1

30

7

2

30

6

3

29

6

4+

34

6

Source: Hamptons International                                                                                                                                                             

  • icon

    Surprise, surprise! Huge numbers of people have lost their jobs and huge numbers have no income coming in from their businesses, so rent levels fall. (Figures from the Ministry of the B ..…. Obvious?)

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    But people who entered into a contract are liable to pay the costs of that contract.
    No matter what external issues are.

    Can't Pay your rent?....We'll take my house away from you.

    FULL STOP

     
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    Poor David... where's my violin ?

     
  • icon

    Why poor....? Far from poor. I just want my owed money.
    Simple.

    What is poor about a legal agreement. Morally the right thing to do is for a tenant to pay their bills, not to try slippery ways to try and get out of it.

    In fact, I hope they do default. Then I can get them out - I love doing the local courts, solicitors and the bailiffs, CCJ's, the High Court and Evictions, because then, when they get chucked out, I can be there outside MY house(es) to laugh at them.

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    1) hmmm....
    2) Legal vs Moral - which is it ?
    3) You have paying tenants that you want to default and evict ?.. what business plan were you selling to the bank manager ?

     
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    Seb

    2) Legal every time. I've tried moral and flexibility and it's never reciprocated - so now always legal action if any requirement to protect my interests.

     
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    Revenge is sweet isn't it David, throw them out and screw their credit history, plenty good enough

     
  • icon

    Legal and Moral
    I have 10 houses from 2 ups and 4 bed detached.

    As soon as they default the clock starts. No question.

    No banks involved, I own all 10. I hate bank Managers.

    My houses, my rules....

    And I love attending evictions. Give me the opportunity to tell the crooks what thieves they are.

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    I had some brilliant bank managers in the 80s and 90s, but times change, bank managers today all seem to be wet behind the ears, the only way now is to own our properties, no borrowings

     
  • Mark Wilson

    David, not sure if you serious. If you are then I suspect you will indeed have a fun filled time ahead of you. You know what they say- what ever floats your boat.

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    It has worked for me for years......

     
  • icon

    SF is a complete nutter and knows absolutely didly sqwat plus he is a complete prat.
    Very easy rules for tenant to understand and Nobody will do anything different when they rent one of my properties: Sign TA after they have passed referencing and paid their Deposit and First months Rent in Advance in Cash, if they are foreign students they pay the whole term of the agreement in cash upfront. They get a receipt an Inventory, a Right to Rent. An explanation on Damp and mould and legionnaires decease. Copy of TA. Gas Cert Elect report EPC. Protection of deposit certificate follows. They are told to respect the property and their neighbours and that I will be inspecting my property every 2 or 3 months and they don’t have to be in. They are told never to miss my rent on set due date and that they get from me immediate response to any issues 24/7. They are also told that if they miss a rent due date they have to leave and vacate My property, they sign to this effect. No sign no property. Been working like this for past 35 odd years, it’s simple and it works. Had 2 poss 3 evictions in that time. Now with coronavirus the situation is if they are effected by the virus and back it up with proof the will have rent Deferred, reviewed monthly. No holiday no free rental, again simple rules. All tenants even those furloughed are paying rent, one chap having to take universal credit pays his rent in full. They know up front the rules. If your simple like SF or MW these simple rules will not work for either of you. No Freebys.

  • icon

    If my tenants treat me with respect, and that is by paying my rental agreement and pay on time, they get a lot back from me. Rarely do I have any issues with any tenant if they pay.

    If they disrespect my entitlement, then they get what they deserve.

    And I love chucking them out. It is all and what they deserve, and on the occasion I do it, they get a CCJ as well....

    Gives them serious credit issues, and if they do not pay me the fees for the CCJ, I renew it every 6 years until they pay to get the CCJ cleared.....

    And that is even more pleasurable to watch then have to pay me all their interest too!!

    Lets assume, I go into my local BMW showroom, and say I will pay you x amount for so many months and on time. What happens if I default? I lose the BMW! Immediately.

    What happens if I go to Tesco and but £150 of groceries and ask to pay them in 1 week's time? What would their answer be?

    I truly see no difference.

  • icon

    Andrew - Quite right........Chuck 'em out.
    Pay me, all is good.
    Don't pay me, they get evicted...And I do not care what it costs.

    It is principle. Totally principle.

    I am sure your Bank Manager will be very fast to reclaim all your BTL properties if you default - Lucky if they will give you 3 months......At least my tenants get approx. 5 months. So who is kinder?

    I win on that morally. And legally.

  • Paul Barrett

    The moral thing for rent defaulting tenants to do is to offer to vacate to the LL.
    But there is NO moral obligation to do so.

    It is then for the LL to determine whether they wish to retain the tenant with no rent being paid.
    Very few tenants behave in such a moral way.
    They mostly all game the system to make the LL use the eviction process in total.
    Substantial numbers of LL would decline an offer from rent defaulting tenants to vacate.
    LL are far better placed to determine how they choose to manage their business.

    Many LL especially cash rich ones will generally endeavour to assist existing tenants.

  • icon

    Hi Mr Mark Wilson. Re: your comment 17th March you say that you are standing back looking at reality.
    That's no way to look at reality standing back indeed, get in there in the middle of it and offer free rent if you have a back bone. Benefit LL are scroungers like the people they House living off the tax payer whether they be fellow LL or their Tenants paying taxes to keep them all, then more than willing to taking a swipe at us at every opportunity, even though their money is guaranteed by us for them doing nothing and in the main are exempt from HM0 license or other regulations, no need to worry about Corona their money is still coming, no need to furlough, so spongers keep your snidy remarks to yourselves or pay the piper.

  • icon

    No rent no property very simple rules all my tenants sign up to. If it coronavirus proven then they can defer until fit again, then pay all arrears on top of normal rent. If tenants do not live to my very simple rules they are Out immediately. No ifs No buts.

  • icon

    Steve - Totally agree.......

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