Latest news with #Hamptons'
Yahoo
24-02-2025
- Business
- Yahoo
Landlord home purchases fall to record low ahead of Labour rent reforms
The proportion of homes purchased by landlords has fallen to a record low ahead of radical rent reforms brought in by Labour, data shows. Landlords were behind 9.6pc of house sales in January, according to a new report by estate agents Hamptons. It is the first time the proportion has dropped out of double digits since Hamptons' records began in 2009 – beating the previous low of 10.6pc in January 2020. The data comes as the Government aims to ban so-called no-fault evictions next year as part of its Renters' Rights Bill, which will also make it harder for landlords to increase rents. There are 39pc fewer homes available for rent than there were in January 2019, with London seeing a decrease of nearly half, Hamptons said. The capital has also seen the biggest fall in the proportion of homes being bought by landlords, making up 7pc of purchases in January. But Scotland recorded the lowest total, with 4.6pc of homes bought by landlords. The Renters' Rights Bill, which is being spearheaded by Angela Rayner, the Housing Secretary, is set to become law by next summer. It was designed in response to the Conservative government's Renters Reform Bill which did not pass into law before Parliament was dissolved. Both pieces of legislature sought to ban Section 21 notices – also known as no-fault evictions – which will make it harder for landlords to take their properties back from tenants. Campaigners previously warned that the 'war on landlords' would cause investors to sell up, reducing the supply of rental homes and pushing up prices for renters. Over the last five years, rents on newly let homes have jumped by a third, Hamptons said, with an average 26.5pc increase for those renewing contracts. Aneisha Beveridge, of Hamptons, said: 'The pace of rental growth nationally has likely bottomed out. New purchases by landlords have been depressed by increases in stamp duty rates towards the end of last year and the prospect of tighter regulation in the form of the Renters' Rights Bill. 'While purchases by landlords haven't completely dried up, it's looking like higher stamp duty rates have reduced the share of homes sold to landlords by between 10pc and 20pc.' Private rents increased by 8.7pc in the 12 months to January 2025, according to the Office for National Statistics, a slight drop from the 9pc increase in the year to December 2024. Nathan Emerson, chief executive of Propertymark, said: 'It is concerning that more is not being done to make the private rental sector more attractive for current and future landlords. 'The dwindling supply of properties against a backdrop of ever-increasing demand from tenants is making it difficult for aspiring renters to find a home.' Mr Emerson said: 'This is all in response to the continuous bombardment of costs placed on landlords, including rising taxes and regulations.' Data from the HM Courts & Tribunals Service showed that evictions were at their highest level since records began in 2009, as landlords rushed to get rid of tenants before the new rules were introduced. During Labour's first three months in power, 7,781 tenants were evicted. The number of successful no-fault evictions soared 20.3pc in England between 2023 and 2024 to their highest tally since 2017. Possession claims also jumped in 2024, ahead of the passing of the Renters' Rights Bill, hitting more than 30,000 for the first time. The Ministry of Housing spokesman said: 'The private rented sector has doubled in size since the early 2000s and our Renters' Rights Bill will support both tenants and good landlords who provide an important and high-quality service. It will set clear, fair standards and give these landlords the confidence and certainty to continue operating. 'This is alongside our major plans to get Britain building again by overhauling the planning system and delivering 1.5 million homes, including the biggest boost in affordable housing in a generation - bringing the dream of home ownership closer to a reality for working people and families across the country.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
24-02-2025
- Business
- Telegraph
Landlord home purchases fall to record low ahead of Labour rent reforms
The proportion of homes purchased by landlords has fallen to a record low ahead of radical rent reforms brought in by Labour, data shows. Landlords were behind 9.6pc of house sales in January, according to a new report by estate agents Hamptons. It is the first time the proportion has dropped out of double digits since Hamptons' records began in 2009 – beating the previous low of 10.6pc in January 2020. The data comes as the Government aims to ban so-called no-fault evictions next year as part of its Renters' Rights Bill, which will also make it harder for landlords to increase rents. There are 39pc fewer homes available for rent than there were in January 2019, with London seeing a decrease of nearly half, Hamptons said. The capital has also seen the biggest fall in the proportion of homes being bought by landlords, making up 7pc of purchases in January. But Scotland recorded the lowest total, with 4.6pc of homes bought by landlords. The Renters' Rights Bill, which is being spearheaded by Angela Rayner, the Housing Secretary, is set to become law by next summer. It was designed in response to the Conservative government's Renters Reform Bill which did not pass into law before Parliament was dissolved. Both pieces of legislature sought to ban Section 21 notices – also known as no-fault evictions – which will make it harder for landlords to take their properties back from tenants. Campaigners previously warned that the 'war on landlords' would cause investors to sell up, reducing the supply of rental homes and pushing up prices for renters. Over the last five years, rents on newly let homes have jumped by a third, Hamptons said, with an average 26.5pc increase for those renewing contracts. Aneisha Beveridge, of Hamptons, said: 'The pace of rental growth nationally has likely bottomed out. New purchases by landlords have been depressed by increases in stamp duty rates towards the end of last year and the prospect of tighter regulation in the form of the Renters' Rights Bill. 'While purchases by landlords haven't completely dried up, it's looking like higher stamp duty rates have reduced the share of homes sold to landlords by between 10pc and 20pc.' Private rents increased by 8.7pc in the 12 months to January 2025, according to the Office for National Statistics, a slight drop from the 9pc increase in the year to December 2024. Nathan Emerson, chief executive of Propertymark, said: 'It is concerning that more is not being done to make the private rental sector more attractive for current and future landlords. 'The dwindling supply of properties against a backdrop of ever-increasing demand from tenants is making it difficult for aspiring renters to find a home.' Mr Emerson said: 'This is all in response to the continuous bombardment of costs placed on landlords, including rising taxes and regulations.' Data from the HM Courts & Tribunals Service showed that evictions were at their highest level since records began in 2009, as landlords rushed to get rid of tenants before the new rules were introduced. During Labour's first three months in power, 7,781 tenants were evicted. The number of successful no-fault evictions soared 20.3pc in England between 2023 and 2024 to their highest tally since 2017. Possession claims also jumped in 2024, ahead of the passing of the Renters' Rights Bill, hitting more than 30,000 for the first time. The Ministry of Housing was contacted for comment.
The Guardian
10-02-2025
- Business
- The Guardian
Average service charge for flat in England and Wales hit £2,300 last year
The average annual service charge for a leasehold flat in England and Wales has jumped by an inflation-busting 11% to £2,300, according to data. The increase – the biggest for at least eight years – means that for many their service charge is their largest household bill after their mortgage, and may fuel fresh calls for the government to accelerate an overhaul of the scandal-hit leasehold sector. Average service charges are now above £2,000 in every region of England for the first time, said the estate agent Hamptons, which compiles an index that calculates the average annual bill for the 5.4 million leaseholders of flats in England and Wales. The service charge paid by flat owners usually includes maintenance and repairs, building insurance and management costs. Amid scandals and controversy over 'unfair' and opaque charges, issues with cladding, damp and mould, and a feeling of powerlessness among many leaseholders, the government has pledged 'sweeping' changes. It has promised leaseholders more powers and protections, though some already-announced measures have been delayed. Hamptons said that after a 4.3% rise in 2023, the typical service charge increased by 11% last year to £2,300 a year, or £192 a month. That is more than four times the 2.5% increase in the consumer price index (CPI) during the same period. Over both the short and medium term, service charges have been rising faster than inflation. Overall, between 2019 and 2024, the average annual service charge rose by 33.9%: from £1,717 to £2,300. However, this disguises wide variations between regions and types of property. Hamptons said a 'north-south divide' had opened up. The average service charge in the north-east and north-west England had risen by 60.9% and 57.6% respectively over the period, compared with 27.7% increase for the four regions of southern England. This divide is linked to the higher number of new city centre developments in the north of England and the Midlands that offer facilities such as a lift, gym and concierge facilities, said a Hamptons spokesperson. In addition to floor area, service charges usually reflect the age of the building and the facilities on offer. 'Larger, amenity-rich developments have generally seen service charges rise much faster than smaller developments with fewer facilities,' said Hamptons. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Last year's average service charge increase was the biggest annual rise since the firm began its index in 2016. Hamptons' analysis showed 51% of leaseholders were paying more in service charges than they were in council tax. David Fell, the lead analyst at the firm, said would-be sellers of leasehold flats who were paying high charges had often seen the value of their homes rise more slowly or even fall. 'In some cases, sellers are offering potential buyers a cash contribution towards future service charge payments,' he added. The Leasehold and Freehold Reform Act 2024, which became law shortly before the general election, introduced some changes to the sector. Labour has committed itself to ending the 'feudal' leasehold system before the end of this parliament.
