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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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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