Tag: rented accommodation

Edinburgh renters amongst the most dissatisfied in the UK

It is a challenging time for renters, with rental prices rocketing and demand far outweighing supply –  a recent study revealed that for every 100 rental ads in Scotland, 197 people are looking for a room to rent. 

And while renters face greater financial hurdles, they are also dealing with more problems with landlords. According to the UK Housing Ombudsman, landlords were issued a record number of complaint handling failure orders between July and September 2022, a 105% increase on the previous quarter.

With this in mind, Online Mortgage Advisor wanted to discover where in the UK and the wider world tenants are most and least satisfied with their landlords. They found that renters in both Glasgow and Edinburgh are some of the most dissatisfied in the UK, despite the implementation of rental controls in Scotland.

How did we do it?

We analysed 276,000 rent-related geotagged tweets across the UK, US, and Europe, as well as other OECD nations, using an academic tool called SentiStrength. 

SentiStrength is an AI tool which detects positive and negative sentiment levels in short pieces of text and assigns them a score from 5 (extremely positive) to -5 (extremely negative). 

SEE THE FULL STUDY HERE:

https://www.onlinemortgageadvisor.co.uk/content/rental-grievances/#home

Key findings

  • Belfast is the UK city with the highest proportion of dissatisfied renters with 43.5% of tweets analysed recorded as negative, followed by Glasgow (41.7%) and Bradford (38.7%).
  • Edinburgh came in at number 7 with 36.1%, meaning two Scottish cities appear in the top 10.
  • The UK ranked 9th overall in the list of OECD countries with 34.8% tweets deemed as negative out of those surveyed, with Sweden, Denmark and Ireland occupying the top three spots.
  • The most commonly mentioned words in negative tweets about rent were: “people”, “money” and “time”. 

Renters in Glasgow and Edinburgh amongst the most dissatisfied in the UK

Using the academic tool SentiStrength, Online Mortgage Advisor analysed 276,000 geotagged tweets related to renting to find out which cities had the least satisfied renters.

  • Belfast, is the city with the most dissatisfied renters in the country with 43.5% of all rent-related tweets being recorded as negative. 
  • Glasgow, ranks 2nd with 41.7% of tweets made by renters in the area being recorded as negative.
  • Edinburgh came in at number 7 with 36.1%. 

This means that two Scottish cities appear in the top 10 of our analysis, despite Scotland implementing a rent freeze at 0% from September 2022 until March 2023. The Scottish government then increased this to a cap of 3% in most instances from April 2023. Find the ranking below:

UK cities which are least satisfied with their rental experiences
RankCityNegative tweets (%)
1Belfast43.5%
2Glasgow41.7%
3Bradford38.7%
4Bristol38.3%
5Brighton & Hove37.4%
6Sheffield36.5%
7Edinburgh36.1%
8Nottingham35.9%
8Plymouth35.9%
10Birmingham35.2%

The most common rental grievances

We found it was ‘people’ that tenants take issue with most frequently, with 60 mentions for every 1,000 tweets. Issues range from landlords turning up unannounced to fellow tenants failing to pay their share of the rent and never taking the bins out. The second and third most commonly listed complaints referred to ‘money’ and ‘time’. 

Here are a few of the issues people have voiced on twitter:

See the full study here:

https://www.onlinemortgageadvisor.co.uk/content/rental-grievances/#home

Over 80% of renters already rent burdened as cost of living set to soar

New data reveals the shocking amount of money being spent on rent every month, on top of drastic cost of living increases set for April

  • Over 80% of renters are spending more than 30% of their take home pay on rent every month, with women hit the hardest
  • Almost one in three (29%) are spending more than 50% of their monthly pay on rent
  • Over 85% of women spend more than 30% of their income on rent, 10% more than their male counterparts
  • 59% of renters don’t believe their rent is affordable

New data by flatshare site SpareRoom reveals the shocking amount of money being spent on rent every month, with over 80% of renters spending more than 30% of their take home pay on rent, and almost one in three (29%) handing over more than 50% of their pay.

People spending more than 30% of their household income on rent are traditionally considered ‘rent burdened’, those who spend over 50% are considered ‘severely rent burdened’. SpareRoom’s data shows the majority of renters are currently ‘rent burdened’. This means many will already have difficulties affording necessities including food, transport and medical care on top of rent, not to mention finding money for increases in living costs come spring.  

With increased energy bills and national insurance costs looming, women are most likely to feel the pinch, with over 85% spending 30% or more of their income on rent, compared to 75% of men, highlighting the affordability gap between men and women.  

Unsurprisingly the data showed people in London, South East and South West England are spending more of their take home pay on rent than in other regions – 84% of Londoners, 83% of South East and 82% of South West spend over 30% of their salary on rent*.

The pandemic saw rents drop in London and increase everywhere else, but recent data from SpareRoom’s Rental Index now shows the capital’s rents are back on the up, which will no doubt cause more of an affordability issue for Londoners.

Matt Hutchinson, SpareRoom director comments: “The general rule of thumb for affordability has always been that you should spend around 30% of your income on rent.

“Even before the pandemic hit that definition felt outdated, but we’re about to see people’s financial situations hit hard over the coming months and years. With over 80% of the UK already rent burdened, and almost a third spending over half of their salary on rent, people are already feeling the squeeze.

“Although wages are rising, they aren’t growing fast enough to make up for cost of living increases that are rising at their fastest pace for 30 years**. This doesn’t just affect renters, it also makes life difficult for the huge numbers of young people who moved back home to their family over the course of the pandemic, not to mention those who were already there.”  

Survey conducted by SpareRoom in January 2022 with 11,130 respondents

* What % of your monthly take home pay goes on rent?

RegionOver 30% of salary on rentOver 50% of salary on rent
East Anglia80%29%
East Midlands73%25%
North East65%17%
North West74%24%
Northern Ireland52%13%
Scotland73%30%
South East83%32%
South West82%31%
Wales75%28%
West Midlands73%26%
Yorkshire and Humberside69%21%
London84%30%

** https://www.independent.co.uk/news/consumer-prices-inflation-london-rishi-sunak-jonathan-reynolds-b1996254.html

Inner city Edinburgh sees rental growth of 7.2% year on year

  • Average annual UK rental growth* has reached a 13 year high, with rents increasing to £969 (+8.3%) in Q4 2021, up £62 per month since the start of the pandemic 
  • The average rent now accounts for 37% of gross income for a single earner – up from a pandemic dip of 34% during most of 2021 but broadly in line with the 10-year average of 36%
  • Overall, average rents are up nearly 12% over the last five years 
  • Demand for rental properties in January was 76% higher compared to the New Year market between 2018 and 2021 
  • The stock of rental properties currently available across the UK is 39% lower than the five year average around this time of year
  • Inner city London has seen a rental growth of 11% compared to the same time last year -but the decline in rents during the pandemic means this has translated into an increase of just £18 per month in rent compared to March 2020

Average UK rents are tracking at almost £1000pcm – £62 more than at the start of the pandemic – against a backdrop of increased living costs squeezing households, reports Zoopla, the UK’s leading property portal, in its quarterly Rental Market Report.

UK rents squeeze disposable household income as cost of living rises

The UK’s average rental growth has reached a 13 year high, up 8.3% in Q4 2021, meaning households who agree new lets are now having to pay an additional average annual cost of £744, compared to the start of the pandemic (March 2020). 

This increase means that a single earner can now expect to spend 37% of their gross income on rent, which is up from 34% during most of 2021. However, this now brings the figure broadly back in line with the longer term average of 36% as rental growth rises in line with wage growth.

Even with the current sharp rise, the overall increase in UK rents over the last five years totals 12% thanks to the decline in rents seen in some areas during the pandemic. 

Rental market shrinks as demand creates fast-paced rental landscape

The New Year has seen heightened demand for rental properties, up +76% compared to the New Year markets between 2018 and 2021. Yet the supply of rental properties recorded in January 2022 in the UK is 39% below levels typically observed at the start of the year. This is creating competition in the market,  with the imbalance of supply and demand ultimately spurring rental growth. 

As a result, properties are being snapped up. In London, this means renters are having to move quickly to secure the perfect property with the time to let now averaging a fortnight, down from three weeks in late 2020. 

This shrinking stock of homes for rent can be attributed to a continued decrease in buy-to-let investment over the last five years.. As rents rise, more renters will be choosing to stay in their properties, limiting stock turnover. With supply squeezed, it’s likely that continued demand will underpin more modest rental growth in the coming months, especially in city centres.

However, as the spike in demand falls back – hampered by the increases in household costs – it will reduce pressure on supply, ultimately driving more local competition to attract renters in local markets. 

City centre rents continue upward growth trajectory 

Pandemic trends saw strong growth in rental demand in wider commuter zones as renters embraced the ‘search for space’, but demand has now recovered across the central districts of all  major cities including Birmingham, Edinburgh, Leeds and Manchester in a reversal of recent behaviour. This is largely driven by pent up demand from office workers, students, and international residents and investors who are looking for city centre living. 

This is a normalisation of rental behaviour as demand once again rises in more central zones – seen most prominently in inner London with rental growth of 11% compared to the same time last year. But given the steep fall in London rents during the pandemic, this translates to an increase of just £18 per month in rent compared to March 2020.

Gráinne Gilmore, Head of Research, Zoopla, comments: “Rents have risen sharply in recent months, amid a backdrop of rising living costs. But it is important to point out that in terms of rental affordability, in most markets rents are still close to the 10-year average. As demand continues to outpace supply, there will be further upward pressure on rents, but affordability considerations will act as a brake on large rises. 

“In addition, the January peak in rental demand will start to ease in the coming months, putting less severe pressure on supply, which will lead to more local market competition, and more modest rental increases.  

“The flooding of rental demand back into city centres thanks to office workers, students and international demand returning to cities means the post-pandemic ‘recalibration’ of the rental market is well underway.” 

James Evans, CEO at Douglas & Gordon, comments: “Since the beginning of the year, we have seen a clear trend of people coming back to London and the office. This has contributed to around a 40% increase in new lettings applicants compared to the same month last year.

“As there is also still a very restricted supply of properties, we’re seeing landlords achieve record prices, a high quality of tenant and almost no void periods. With competition for properties at the level it is, there are 35-40 new applicants for every rental property in London and around four offers received per agreed let, so tenants are having to put themselves in the best position possible to get the properties they want. 

“Following a strong sales market in 2021, and more confidence in future price increases in London, we are seeing more buy to let investors entering the market. With some of the recent legislation changes, the need for a quality agent is even greater.”

* Based on new lets as recorded by Zoopla

City council prevents more than 300 households falling into homelessness

In just over a year, more than 300 households living in the private rented sector have been prevented from becoming homeless thanks to city council’s Crisis-run Private Rented Service Team (PRS).

Established in November 2019 in response to a growing number of homeless presentations from the private rented sector, the Private Rented Service (PRS) Team has assisted 324 households since March 2020. This has been done by helping them to keep their existing tenancy or to move to either a new private or mid-market rent secure tenancy.

Edinburgh Help to Rent, which is a service the Council contracts Crisis to deliver, does this by providing rent deposit guarantee bonds. It has provided 50 households with a bond to access properties in the private rented sector since February 2020.

This comes as part of a wider update on the City of Edinburgh Council’s Rapid Rehousing Transition Plan (RRTP), a comprehensive strategy to tackle and eradicate homelessness across the city over the next five years, that was presented at the Housing, Homelessness and Fair Work committee this month.

The Council has made significant investment, complemented by Scottish Government funding, to deliver the Plan, which is focused on providing:

  • suitable temporary accommodation for the needs of households;
  • supporting people into settled accommodation as quickly as possible;
  • reducing the number of people sleeping rough on our streets; and overall preventing homelessness in the first place.

The RRPT sets out all the different approaches that are key to tackling a wide range of issues faced by people across the Capital.

Alongside the PRS Team, a team has been set up to provide a ‘multi-disciplinary response’ pilot for Council tenants who are struggling to maintain their tenancy or who are falling into rent arrears.

This multi-agency approach across the Council aims to reach out to our tenants who may not engage with their locality Housing Officer, to offer joined-up support and enhanced engagement to help keep the tenant in their home and so avoiding homelessness. 

Learning from a similar successful innovative programme by Newcastle City Council, this brings together representatives from key Council services including housing, homelessness, advice services, family & household support, adult protection and children and families social work services into one cross-Council response group.

Established as recently as February 2021, since March this year the team has positively engaged 16 (84%) of 19 tenants referred to the team. A further 14 have since been referred and attempts are being made to contact them and offer support.

The Homelessness Transformational Prevention Programme complements the RRTP. Through this programme the Council has recruited 28 additional officers to trial new ways of working that will prevent homelessness in the first place.

When a permanent home can’t be found immediately, the team will continue helping people to access settled housing more quickly, thereby reducing the number of households in temporary accommodation. Through joint funding by the Council and Scottish Government, the RRTP has made this investment possible.

Councillor Kate Campbell, Convener of Housing, Homelessness and Fair Work committee said: “With the severe pressure on housing in Edinburgh, we need to take every possible step we can to tackle homelessness in our city.

“That includes stepping up work on prevention, improving temporary accommodation, making sure that there is support in place for anyone experiencing homelessness, ending rough sleeping and finding as many ways as possible to help people resolve homelessness. The Rapid Rehousing Transition Plan sets out all the different initiatives we’ve put in place to do that.

“This has to start with preventing homelessness wherever possible, so I’m glad that both the PRS Team and the multi-disciplinary response team are working so well. Preventing 300 households from becoming homeless in a year is phenomenal and it shows the real value of the RRTP supporting innovation and new ways of working. This funding from the Scottish Government allows us to try out new services, and where they are successful we can continue, and look to expand them.

“This is more important than ever as we start to see the economic repercussions from the pandemic and expect an increase in homeless presentations.

“The RRTP is a comprehensive plan that sets out all of these new services and innovative ways that we are supporting people to create better outcomes for individuals, and work towards ending homelessness in our city.”

Councillor Mandy Watt, Vice Convener of Housing, Homelessness and Fair Work committee said: “Being homeless can be a horrible experience for people and finding better ways to prevent it is an incredibly important part of the Rapid Rehousing Transition Plan.

“Working with registered social landlords and partner organisations like Crisis has already made a big difference to the numbers of people ending up homeless.

“As we come out of the Covid-19 emergency measures, the need for this service is likely to increase significantly and we’ll be relying on our dedicated prevention team to play an even bigger role in our efforts to end homelessness in Edinburgh.”

Independent local support is available if you are experiencing housing/debt problems. Contact Granton Information Centre by email at info@gic.org.uk or telephone 0131 551 2459 or 0131 552 0458.

14% increase in first-time buy-to-let landlords

With the pandemic driving interest rates into the ground, it’s only natural that people are searching for a more lucrative return on their investments. 

Research by insurance and personal finance comparison experts Quotezone.co.uk reveals that 85% of those looking for landlord insurance own just one property – suggesting this is a buy-to-let investment rather than their full-time job.

The data, which covers a sample of landlord insurance quotes from 2019 to 2020, suggests redundancies and furlough has perhaps created an emerging trend of small and first-time landlords. 

Although the majority of the 19,000 landlords Quotezone.co.uk sampled have owned their property for five years or more, there is a recent spike emerging, with properties owned for ‘less than 1 year’ in Scotland seeing a 14% year-on-year increase during the pandemic. 

The data also showed that the average age of a landlord in the UK is 51 – these people are likely at least a decade from retirement and looking to invest their skills and savings in a more long-term asset that may offer higher returns than other investment options out there.

And with only 52% of landlords using cash to purchase during 2020, the lowest figure on record* – buy-to-let is an increasingly viable option for many UK buyers, even those with a relatively modest amount of capital to invest.

The average rent landlords can expect from their investments differs dramatically across the UK, with data from Statista revealing that Greater London has the highest average at £1,556, while the cheapest region is the North East where the average rent is just £539. The UK average is currently £832.

The best interest rate available from savings accounts currently stands at just 3%. By contrast, the average rental yield in the UK is currently 5.2%***, and buy-to-let property in some parts of the country even offers rental yields in excess of 7%.

However, there are overheads a landlord needs to consider such as a managing agent, utilities inspection reports and certificates, landlord licence (£500 every 5 years), safety equipment such as fire alarms and extinguishers and routine maintenance to the property.  Landlord insurance is another vital element but by comparing policies on comparison platforms, there are competitively priced policies available.

The research also showed that the majority of tenants were employed professionals followed neck-and-neck by short-term Airbnb lets and DSS / unemployed occupants.

Founder of Quotezone.co.uk, Greg Wilson, comments: “It is interesting to see that 85% of people in our data, who class themselves as landlords, own just one property – suggesting that actually first-time landlords with other occupations could be adding this asset to their portfolio as an additional revenue stream or an alternative to pension investments.

“Covid has created a temporary shopping spree within the housing market with the government’s stamp duty holiday, however I fear this temporary boost in sales may be short-lived as the economic aftermath of the pandemic is yet to be revealed and the stamp duty holiday is due to expire at the end of next month.

“However rental properties haven’t gone untouched by the crisis with many tenants on furlough or facing redundancies and social distancing creating physical barriers to the properties making routine maintenance and repairs difficult. 

“It is perhaps more important than ever to ensure landlord insurance policies are thorough, accurate and up to date so that landlords are fully protected should a claim be needed.” 

Policies vary from one landlord insurer to another, but in general can cover any damage to the building caused by insurable events like fire, flood, storms, subsidence, theft and vandalism. 

Landlord contents insurance, landlord liability and unoccupied property insurance can also be added as well as extra tailored features such as rent guarantee insurance, landlord home emergency cover and legal expenses.

Recommended by 97% of reviewers, Quotezone.co.uk helps around 3 million users every year, with over 400 insurance brands across 60 different products

Student renters face a financial crisis due to the pandemic

  • Over two thirds of student renters (69 per cent) are concerned about their ability to pay their rent
  • A third of students believe that they would not be allowed to leave their tenancy agreement early due to the pandemic
  • 57 per cent of those who have been self-isolating have not received any support from their accommodation provider
  • 22 per cent of students have been unable to pay their rent in full over the past 4 month

Over two thirds of student renters (69 per cent) are worried about their ability to pay rent with around a quarter having been unable to pay rent (22 per cent) or bills (27 per cent) during the pandemic, a new survey from NUS (National Union of Students) has found. International students and students of colour are most likely to be extremely concerned.

Almost half of students live in rented accommodation of some sort, with around a third believing they would not be allowed to leave their tenancy agreement early due to the pandemic.

These problems are likely to be exacerbated with the most recent lockdown announcement that has left the majority of student renters still liable to pay for accommodation that they are not allowed to access.

The Coronavirus and Students Survey phase III took place in November and involved over 4,000 students, building upon the previous research issued by NUS in April and September 2020. A quarter of students have had to self-isolate during last (Autumn) term, or are currently self-isolating, while a small proportion have had to lockdown.

57 per cent of those who have been self-isolating have not received any support from their accommodation provider. Students have called for more regular check-ins, financial support and food deliveries to support them.

The proportion of students living with parents/guardians has gone up since September, now representing 30 per cent of students compared to 21 per cent. Prior to the pandemic a quarter of students were living with parents indicating some students have had to reconsider their living arrangements as a result of the pandemic.

Hillary Gyebi-Ababio, NUS Vice-President for Higher Education, said: “It is astonishing that the UK government has placed students under lockdown yet are still requiring them to pay rent for accommodation that they cannot legally access. It goes to show the level of disregard that this government has for students.

“We need rent rebates immediately to ensure that students are not out of pocket for rental payments of properties they are not living in. Over two-thirds of students are already concerned about their ability to make rental payments, and this will have only increased with the most recent lockdown announcement. 

“Students deserve better than to be financially punished for following public health guidance.”

Ellen Fearon, NUS-USI President, said: “Governments have been dodging the problems facing student renters throughout the whole of this pandemic. We have consistently raised the fact that students are in a unique situation, being unable to claim Universal Credit and therefore unable to access housing support if they lose their income, but these calls have fallen on deaf ears. 

“In September students were brought back onto campuses only for many classes to be moved online in a matter of weeks and for some students to find themselves effectively locked in their halls. It’s not surprising that so many students feel they have been exploited for profit. Students deserve better than to be used to prop up a failing business model.”

The full survey results are available here.

Eviction Ban Extended

The temporary ban on eviction orders will be extended until the end of March, the Scottish Government announced yesterday.

Regulations will be laid in the Scottish Parliament on 14 January to extend the current ban, which is in place at present until 22 January. The extended ban – will apply to all evictions in areas subject to level 3 or 4 restrictions, except cases of serious anti-social behaviour, including domestic abuse. Subject to review every three weeks to ensure it remains necessary to protect against the spread of coronavirus (COVID-19), it will remain in force until 31 March.

This will provide renters with safe homes during the pandemic. It will reduce the burden on local authorities, who have a duty to rehouse people made homeless through evictions, and will also make it easier for people to follow the guidelines during the current lockdown.

Housing Minister Kevin Stewart said: “Extending the temporary ban on the enforcement of eviction orders in the private and social rented sectors in areas subject to level 3 and 4 restrictions will support tenants, and offer people protection from transmission of the virus by being able to stay safe in their homes.

“It will also prevent additional burdens being placed on health and housing services during a time where they are already working hard due to the impact of the pandemic. This is a proportionate response to an extremely challenging set of circumstances.

“In the case of serious anti-social or criminal behaviour – including domestic abuse – eviction orders can still be enforced.

“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic. Tenants in difficulty should engage with their landlord and seek advice on the options open to them.”

These apply to all eviction notices issued on, or after, 7 April 2020. The original end date was 30 September 2020. 

A number of actions have been taken to support tenants through the pandemic, including increasing the Discretionary Housing Fund from £11 million to £19 million to provide additional housing support and the introduction of the Tenant Hardship Loan Fund.

Read further information on tenants’ rights during the pandemic.

Extra protection for tenants

Private and social tenants will be given increased protection from eviction during the coronavirus pandemic.

Emergency legislation will increase the minimum notice period for private and social tenants to up to six months depending on the grounds used, helping to protect them from eviction.

The Coronavirus (Scotland) Bill, to be introduced to the Scottish Parliament on 31 March, will contain substantial further powers and measures to ensure essential public services can continue throughout the coronavirus outbreak.

Constitution Secretary Michael Russell said: “Our lives are being affected as we all play our part in trying to slow the spread of coronavirus and follow the essential public health advice to stay at home.

“For some households and businesses there will be financial difficulties ahead and that could include struggling to pay the rent.

“While all tenants experiencing issues with rent arrears should firstly explain their circumstances to their landlords, this new emergency legislation will provide an important backstop to prevent evictions and relieve the financial pressure people may be facing.

“We are also encouraging all landlords to be as flexible as possible during this unprecedented time and would urge them to also seek assistance if necessary by speaking to their lenders about mortgage breaks.

“This bill will provide substantial additional emergency powers to help the justice system, public services and the economy to cope. These measures, which will be strictly limited to the duration of the outbreak, are absolutely necessary to help us all through the coming months.

“The Scottish Government welcomes the very positive all-party discussions that have allowed this legislation to be drafted so quickly. These new measures will help us all as we work to tackle the virus.”

SNP MSP Gordon MacDonald has welcomed the Scottish Government announcement that private and social tenants in Edinburgh are to be given increased protection from eviction during the coronavirus pandemic.

Emergency legislation will increase the minimum notice period for private and social tenants to up to six months depending on the grounds used, helping to protect them from eviction.

The Coronavirus (Scotland) Bill, which contains substantial further powers and measures to ensure essential public services can continue throughout the coronavirus outbreak, will be introduced in the Scottish Parliament tomorrow (Tuesday).

SNP MSP Gordon MacDonald said: “We must all work together to meet this challenge, which is why measures to prevent evictions and relieve some of the financial pressure people in Edinburgh may be facing due to the coronavirus crisis are welcome. 

“The Scottish Government has also encouraged all landlords to be as flexible as possible during this unprecedented time, and I would urge them to also seek assistance if necessary by speaking to their lenders about mortgage breaks.

“No-one should face losing their home as a result of this coronavirus pandemic. The move to ban evictions during this crisis will bring security to people’s lives when they need it most.”