Latest Landlord News by: Madalena Penny
A recent piece of research by website, MyVoucherCards revealed 58% of people they surveyed do not think they will ever own a property. Just under 67% of this group believed they would never be able to afford the 25% deposit and 77% claiming they would more than likely be renting their homes privately for the rest of their lives.
For a nation that marks personal success with home-ownership and a coming of age ‘rite of passage’, the mortgage ritual is now expected for first time buyers at the average age of 36.
For the generation of renters this is a bitter pill to swallow. Without a hefty contribution from the bank of mum and dad and perhaps nan and granddad, there is little choice but to continue to live with parents or to rent privately as is the commonplace trend experienced by the rest of Europe.
In 2009, the English Housing survey stated a total of 14% (Just over 3 million) households in the UK were created through the private rented sector. That’s 4% more than 2001. Independent researcher ‘Capital Economics’ predicts that this number will increase to 17% by 2015, bringing us more in line with European tenure trends.
The private rented sector here in the UK is still reeling from the shock, that it is now the foremost housing sector propping up accommodation to the masses as new home-ownership declines and available housing stock is rare. Taking centre stage at the gig, the private rented sector is enjoying rent increases and an all time fall of rental voids.
However, all is not rosy in the rented property’s garden, as rent arrears have risen now since October. This could be attributed to the 10 consecutive months of rent rises as reported by LSL property services. As a result ARLA have reported that 40% of landlords have indicated that tenants who struggle to meet their rent payments are on the increase.
Sim Sekhon, A PRS expert from Legal 4 Landlords said:
“As rent arrears rise, there has been significant research to suggest that tenants are now struggling with the increase in rents that tenant-demand has created. We have seen a noticeable rise in landlord instructions for notices due to tenants defaulting on rent.”
Mr. Sekhon advises that landlords need to protect themselves against rental loss and should obtain a rent guarantee programme. An insurance, which covers such loss, can be obtained from the landlord legal company. For more information contact Legal 4 Landlords on 0800 840 7133.