Below is a local recap on all that’s gone on this year and an update on their current standings…
The view from Nottingham…
The private rental sector in Nottingham is simply yet to see a detrimental effect of the post Brexit move, or the additions in the legislation levied on properties in 2016. The demands on private rental properties continues to out-strip supply on a 4-1 ratio, and with it this year has brought about a marked increase in the achievable rental values of properties across the city at the point of re-let. There is no doubt that this is fuelled, in the most-part, by the increase in the standards of available properties and their interior finish, brought about by the reproduction of popular high-end kitchen and bathroom fixtures and fittings, such as gloss units and drench showers that are now readily available at a fraction of their former cost. This enables a property to in effect punch above its weight and appeal to a wider audience when coupled with the limits in supply thus raising their rental values. The uncertainty of Brexit has also had a positive and stabilising effect on the length of tenure, increasing the average term of let in all areas of Nottingham. The increase of Bio-City’s investment in Nottingham has brought about an increase in employment and the requirements for housing in the Carlton Area
The housing market as it stands today…
A fall in young home owner numbers.
A report for the LGA reveals that the number of 25 year olds who own their home has dropped in the past 20 years from 46% to 20%. Home ownership in all age groups meanwhile has also fallen by 4.4% since 2008, while private renters increased by 5.1%, the LGA said. Additionally, the report finds the construction of social rented homes fell by 88% between 1995-96 and 2015-16. The association warned that the sharp fall, combined with rents rising at a faster pace than incomes, meant that home ownership was becoming more difficult for an increasing number of people. LGA spokesman, Martin Tett, said: “Our figures show just how wide the generational home ownership gap is in this country. A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.”
The Guardian, Page: 21 The Times, Page: 4 The Sun, Page: 19 Daily Star, Page: 18
The proposed ban on tenant fees
Given the Government’s focus on improving the experience for the consumer across a number of sectors, and the importance of the private rented sector to the needs of the country, Propertymark believe the CMA is best placed to undertake a report into fees and charges in the lettings market and how it should best operate to ensure a fair, safe experience for tenants, landlords and agents.
Propertymark will be raising this on our behalf at the next Fair Fees Forum Working Group meeting in January 2017.
“The current proposed ban is based on limited research and anecdotal evidence, as well as a lack of understanding of the likely consumer detriment that will be caused by removing payment for the services the agent provides. We believe more impartial information is crucial in advance of taking such a drastic measure as a ban.”
We will know more about the impact when this happens but we will continue to keep you abreast of the situation as it unfolds.
Nottingham West & Central…
In moves to offer greater protection for our landlords, we have written into our tenancy agreements the mandatory requirements for Tenant Liability Insurance for all future lets in 2017 Further to Belvoir’s recent acquisitions of the Northwood & Newton Fallowell businesses, we are now able to offer our Let Alliance Rent Guarantee service to all of our managed landlords which supersede our previous Rent and Legal insurance offering from Endsleigh. Inspections have gone digital! We are now using I-pads for periodic inspections to add greater photographic imagery of property conditions with date/time stamped photos and further documentation of legionella water test results and advisories for both tenant and landlord The latest addition to our team – Kiera Oswin. Kiera has been brought in to aid our team with periodic inspections as well of a host of other additions to our service that will be rolled out during 2017
I’d like to take this opportunity to personally thank each and every one of you for this year and look forward to a great 2017. Have a fantastic Christmas and a happy New Year…!
Lloyd Rumbold
Image from: Mumbling Nerds https://mumblingnerd.com/tag/nottingham/
