UK rental system 'not fit for purpose' claims new report

UK rental system 'not fit for purpose' claims new report
37% of British landlords are let-down by the country’s current rental system and do not feel the UK rental market is fit for purpose

New research among 2,000 UK adults by virtual online letting agency LetBritain has revealed the sentiments of Britain’s landlord community.

According to the findings, 37% of British landlords are let-down by the country’s current rental system and do not feel the UK rental market is fit for purpose and is unsuited to a rapid and demanding rental market. LetBritain claim that  23% are losing thousands in rental income as letting agents fail to secure new tenants

As a result, 595,000 UK landlords (34%) said they would turn to risky online sites just to avoid the fees and delays associated with using a letting agent

The research also uncovered that trust in letting agents is significantly strained by misinformation and unscrupulous practices. With 23% of landlords reporting that their property has sat empty for an extended period of time while an agent is tasked with finding new tenants. Meanwhile, previous LetBritain research found that two fifths (40%) of UK renters – 7.21 million people – find the marketplace to be “ruthless and unethical”, with agents allowing gazumping and non-existent “phantom properties” to become far too commonplace across the rental market.


Recent figures have revealed that the average UK landlord faces an upfront cost equivalent to around 10% of monthly rent + VAT when seeking to rent a property. Considering the exorbitant costs paid by landlords hoping to provide homes to the nation’s tenants, the financial implications and time inefficiencies are particularly concerning as more and more Britons come to rely upon the private rental sector.
 
Agency fees do not only impact landlords but are also borne by tenants in a practice known as double charging. On top of fees paid by landlords, recent research by Generation Rent found that that the average upfront letting fees paid by two adult tenants came to a total of £404, and can be as high as £813, with additional costs often incurred for essential administration such as deposit protection – a legal requirement for private tenancies.
 
Fareed Nabir
, founder and CEO of LetBritain, commented on the findings: “Today’s research presents a number of concerning insights into the difficulties faced by the Britain’s vital landlord community. It is obvious that landlords up and down the country feel let down by the current property letting system and it is concerning to see that high procedural costs are causing landlords to take otherwise unnecessary risks. Clearly a faster, more affordable and transparent system is required to support the market of 2017 for both landlords and tenants.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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