Category Archives: Renting Properties

Luton-and-the-East-of-England-leading-the-way-in-rental-increases-as-commuters-spread-further-from-London

Luton and the East of England leading the way in rental increases as commuters spread further from London

A growing prevalence of longer distance commuters into London is starting to have an effect on the amount of rental income that investors in emerging towns and cities are able to get on their properties, it has been reported.

In recent years, people who work in the capital have been moving away from London to live, and it’s no surprise why when we consider reports from the Land Registry that suggest that homeowners can save £3,000 on property for every additional minute they commute into the city.

It’s similarly beneficial for tenants to live out of London to save money on housing costs, and for this reason, many people in the private rented sector have been gravitating away from the capital for the last few years. But while for years this meant looking at homes in Essex and Greater London, the spread of commuters is now widening, as value becomes an important consideration.

And as the commuter belt for London workers extends ever further beyond the M25, off plan property investment in growing communities like Luton are reaping the benefits. For those who have invested in Luton, low initial purchase prices and growing demand from young professionals looking for rented properties in particular, means their income and yields improving all the time.

While in London the cost of renting a property has been falling in recent years – it’s down by 1.06 per cent in the year to the end of July – places like Luton are thriving. According to the latest data from the Landbay rental index, Luton tenants are able to get themselves somewhere to live for as little as half of what they would be paying for an equivalent property in the capital.

And as a result of this, more people are now willing to tear themselves away from the capital to live in emerging commuter towns like Luton. The knock-on effect of this is that these towns see more demand, which breeds competition, and means landlords can ask for more for their properties in the future.

Landbay reports that in the 12 months to the end of July, Luton led the way nationwide, with rental prices up by an impressive 4.23 per cent year on year. This helps to deliver far higher yields for investors than they might get elsewhere, and positions Luton as one of the best, and one of the highest potential, areas in England to invest in.

“With rising inflation and rock bottom interest rates it is little surprise to see demand in the more affordable Home Counties rising faster than pricier parts of London and the south-east,” said John Goodall, chief executive officer of Landbay.

“Naturally these surrounding areas are starting to experience a surge in rental prices, creating a ripple effect out from the capital. There are of course a number of factors at play, but as yields tighten in the capital landlords may well be branching out to the East of England in a bid to meet this demand,” he added.

A record £1.5 billion worth of private investment in the Bedfordshire town and its new-found Enterprise Zone status have helped improve the perception of Luton. Improved infrastructure and train links have also helped to boost the popularity of Luton as a commuter belt town, with more people realising the benefits of commuting via train into the capital for work.

“Investors have cottoned on to the fact that renters are no longer willing to pay the high price of renting a small room in London when they can rent an apartment or house in a commuter belt town. With London just 22 minutes by train, Luton has emerged as a hotspot for renters and investors, who are no longer willing to pay the high price tag for property in London,” Jerald Solis, Business Development Director of Experience Invest explains.

“As private investment continues to grow, we expect that Luton will emerge as London’s most sought-after commuter belt town for property investors,” he adds.

What Every Tenant should Know about Renting a Home

What Every Tenant should Know about Renting a Home

Renting a home is not always easy and straightforward despite what some people may think. There is much to consider if you want to avoid potential problems with your landlord and with the place you are renting.

You will do well do be prepared with information about tenant responsibilities and rights to ensure a stress-free experience in your rented home. This is especially true if you are experiencing a removal and you want to have peace of mind about the place you are going to stay at. Here are some things you definitely have to consider:

  • Research the neighborhood – before you even decide on your relocation to another part of town to rent a property, you should be familiar with the neighborhood it is located in. You will do well to know if it is safe and what security measures the landlord must provide. Discuss such issues and see to it that the information is included in the contract.
  • Carefully read and understand the lease – see if the lease you are going to sign covers all of the important details. That includes information on how you can terminate the agreement, whether there are rules for pets, guests and visits, whether and to what extent the rent you are paying covers the bills. Make sure you understand all of this before you hire house movers to transport your stuff to the new place.
  • Negotiate the rent – do not just take the first price you are offered. Often times the property you are presented has some damage or flaws, which can give you some room to negotiate.
  • Get all agreements with your landlord in writing – there might be some agreements you make with your landlord, but it can be difficult to prove them, if things come down to court. Every promise they make you should turn into written agreement, as this will be of your best interest.
  • Know the responsibilities of your landlord – the property you are moving to should have adequate living conditions and features. The water, electricity and heating should all be in working order. If there are flaws, it should be your landlord’s responsibility to take care of them. Know what repairs they are responsible for, such as normal wear and tear. On another note, your landlord should provide you with a notice whenever they want to come for a visit and inspection.
  • Learn all you can about security deposits – getting your security deposit back is one of the most important things you as a tenant will want. See if the landlord requires deep clean of the place before you hire a man with van service Pimlico. Inspect if there is any damage to furniture, walls and floors and make sure you provide adequate repairs. Take some photos of the place to have proof of what condition you are leaving it in.

It is by knowing such details that you can ensure your renting will be trouble-free. There is also a chance that you will be able to make a better deal, which is not an opportunity you should miss.

Top 10 renting tips

Top 10 Tips for Renters

Renting a home is a great option for those who are not sure that they want to spend their time in just one place, or for those who have not found the perfect home to buy yet. When the right property is selected and the right agent is used, renting can be a great experience. Using these tips, one can be sure that the experience is nothing less than the best.

Spend Time Researching

Investigate the area. Make sure that if you have children, the area is safe for them and in a good school district. Visit the prospective area and wander around on foot. You will get a better sense of the community and what life there looks like.

Utilize the Entire Rental Market

Check in with large firms, but also look into property management agencies as well as private landlords. This will ensure that you are not paying way above what is actually needed to cover the rent. Independent agents can be found with a simple online search.

Spend Time Looking at Properties

This is important to remember especially when hunting for a suitable property. You may want to hurry through the ones that don’t interest you, but don’t jump right away to a property that seems appropriate. Inspect it carefully and check all appliances to be sure that they are working. Make a checklist to have on hand.

Inquire About Agents’ Fees

Before making an offer on a property, ask the agent about their fees for references and credit checking. These fees can be competitive but should not be outrageous. If they are high, this could mean that the agent can try to get some of the deposit when you move out.

fig-2Carefully Choose who to Live with

That is, if the tenant is planning on renting with others. Money is known to be the most common cause of disputes between flat mates, so make sure that the budget is worked out solid regarding bills.

Price Haggle

This can be done with both agents as well as landlords. The tenant holds the upper hand, so you can make an offer yourself. This can add up to a significant amount when saved over the course of a year.

Set up Payments Properly

Paying the correct amount on time will put you on your landlord’s good side right off the bat. Make sure that any direct debits are set up correctly so that the money is not stuck in limbo.

Inventory the Home

As soon as you move in, and before actually moving stuff in, do a full inventory of the home. Any cracks, stains, holes, and the like should be noted. Anything of this nature will likely be taken out of the security deposit at the end of the lease.

If There Are Problems, Tell the Landlord

It is likely that they manage other properties, so they will not automatically know when something is amiss. Problems will be fixed at no cost to you, so do not hesitate to report a problem. Even something as simple as contacting a locksmith (in London or anywhere else) should be done by the landlord.

Be Vigilant About the Deposit

This should not happen, but it does. Have them prove to you what is being deducted and why so that you are not left wondering.