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23 September 2017

Landlords in Yorkshire are increasing their rental portfolios as rents rise

Rental sector grows as Landlords expand portfolios

Countrywide’s Monthly Letting Index for August 2017, shows that the number of landlords has fallen over the last two years despite a rise in supply of homes available to rent. Countrywide Research estimates that the number of landlords peaked at 3.72 million in 2015 when there were some 171,000 fewer rented homes than today. In 2017 there are just over 154,000 fewer landlords (3.56 million in total) but the number of rented homes has increased from 4.9 million in 2015 to 5.1 million today. (table 1).

Today fewer landlords and more rental properties means the size of the average landlord’s portfolio is the biggest since Countrywide’s records began in 2005. The average landlord owned 1.44 rented homes in 2017, up from 1.33 in 2015 and a low of 1.24 in 2010 (table 2). In 2017, 73% of landlords owned one buy-to-let property, down from 86% in 2010 (table 2). The number of landlords who own 10 or more homes has risen by a third (33%) in the last decade (2007 to 2017).

In 2017 landlords based in the North East are likely to own the most rental properties (1.54), followed by landlords based in Yorkshire and the Humber (1.52) and London (1.51). (table 3). While London based landlords are more than twice as likely to have a portfolio of 10 or more homes compared to landlords in any other region.

Across Great Britain average rents for new lets rose to £954 pcm in August, up 1.6% on the same time last year (table 4). Rents increased the most in the South West (4.7%), Scotland (2.8%) and East of England (2.5%) while London rents grew for the second consecutive month, up 1.8% year-on-year. (table 4)

Commenting on the analysis, Johnny Morris, Research Director at Countrywide, said:

“The increasing number of rented homes is being driven by landlords expanding their portfolios rather than new landlords entering the market. Increasing regulation in the sector accompanied by recent changes to income tax relief on mortgage interest payments seem to be favouring more experienced, professional landlords. Despite expanding portfolio sizes the sector is still characterised by those owning just one or two homes, 73% of landlords own one home.

“Rents rose in all regions across Great Britain to stand 1.6% up on the same time last year. The number of landlord purchases continues to remain low which is feeding through into fewer homes on the rental market. Rents in London rose for the second consecutive month, driven by a pickup in rents in outer London.”

To view the full analysis, please click here >

14 September 2017

The Old Fire Station in Central York will create 14 luxury new homes

WORK is due to begin on Monday on the £15m development to create 14 luxury homes and a restaurant at the site of York’s old fire station.

The scheme spearheaded by Monks Cross property developer The Helmsley Group is expected to complete by Christmas next year.

Max Reeves, associate director with The Helmsley Group, said: “The new homes we’re building at The Old Fire Station look set to create a new benchmark for residential values in York.

“Within easy walking distance of York’s shops and attractions, the homes will also boast views of the River Ouse to the south and of Clifford’s Tower to the north. We expect this amazing project to be completed in December 2018 and we’re anticipating strong interest from buyers as this kind of opportunity is so rare.”

Chris de Whytell, contracts manager at Caddick Construction, which is carrying out the work explained work started in late August, “…Residents can expect to see changes fairly quickly, as the first phase will include the partial demolition of the old fire station and the creation of a temporary structure to support the sections of the building that will be retained. The initial phase will take about six weeks, and the team will then begin the intensive process of installing piles to support the new building foundations.

“Due to the building’s location by the river, concrete piles 45cm in diameter will be driven 20 metres into the ground to ensure stability.”
The first phase of the development will see a fabricated steel structure supporting the historic chapel façade, which is to be retained.

There were objections from Historic England and the York Civic Trust to the original proposed demolition of facades of the1856 chapel and former Sunday school. Other buildings along the river behind the fire station have been demolished.

The fire service moved into a purpose-built centre in Kent Street. The project is a joint venture between The Helmsley Group and London Ebor Developments. Caddick Construction is acting as contractor.

This article is courtesy of The Press, please visit their website for more local news.