Young adults lie behind growing rental demand, analysis shows

 

Tenants’ bills are expected to hit a record £63 billion this year – and much of it is down to the so-called Generation Z demographic joining the market.Lettings agency Hamptons says tenants across the country paid a total of £31 billion in rent during the first six months of this year, a two per cent rise on the same period a year ago.The agency’s latest market snapshot says: “Rising rents mean the amount of rent paid by tenants has more than doubled since 2008 and has topped the 2017 peak, despite there being around 275,000 fewer private tenants than there were five years ago.”

The study highlights generational shifts in the rental market. It says as Generation Z – that’s those people born between 1997 and 2012 – become independent and lave home their rent bill will rise 10-fold compared to three years ago, leaving them paying more than Baby Boomers – the group defined as being born between 1946 and 1964.Generation Z tenants are forecast to pay £11.7 billion in rent this year, around a fifth of the country’s total bill and a more than threefold year-on-year jump. By contrast, Baby Boomers will pay £8.9 billion in total this year, a seven per cent fall on 2021.Meanwhile, Millennials – yet another demographic group, those born between 1981 and 1996 – paid 49 per cent as much rent as they did in 2017 as more of them bought properties.Hamptons says: “Generation Z’s rent bill is rising at a faster pace than when the previous generation, Millennials, started to leave home during the 2008 downturn, with far fewer buying their own place. And on their current trajectory, they are likely to be paying more than Millennials within the next three years.”It adds: “The Millennial rent bill has fallen by nearly half from 2017 as many renters between their mid-20s and early 40s bought their first home. Despite tumbling homeownership rates over the last two decades, it is likely that Millennials collectively will be paying less rent than their predecessors, Generation X by next year.”

Blog post from lettingagenttoday

Housebuilder prepares eco-friendly homes ready for extreme temperatures

A typical comment accompanying news of the UK heatwave is that our homes are not built for 40-degree heat.Many residential homes lack air conditioning and are said to be built to trap heat, which is useful in winter but not when temperatures reach Saharan levels outside.National housebuilder Bellway has begun building an experimental eco-house called ‘The Future Home’ as part of a research project which could influence how homes are built, used and sold in the future.

Bellway’s ‘The Future Home’ is being built at The University of Salford’s net-zero research facility Energy House 2.0 that has been part funded by the European Regional Development Fund.The house will test innovations in building materials, the effects of double and triple glazing, storing solar energy, recovering heat from wastewater, and how to make most efficient use of air source heat pumps.The house will be tested in temperatures as high as 40C and as low as -20C. Weather conditions including wind, snow and solar radiation will be created in the chamber.Energy House 2.0 officially opens later this year and will be working alongside industry investigating how housing design can progress to enable the UK to achieve its net zero carbon emissions targets.The research facility will contain two environmental chambers that will accommodate four houses and has the ability to replicate over 95% of the world’s climatic conditions.Jamie Bursnell, group technical and innovations manager for Bellway, said: “The results of this project have the potential to change how we build homes – and how we live in them.

“In building this home, Bellway is taking a lead in the housebuilding industry to test technologies to help meet net zero carbon targets.

“However, with many of these innovations, we don’t yet know how they will function for real families in real homes, or what their running costs will be. This is particularly important when energy costs have risen so significantly, and homeowners are being hit heavily in the pockets.

“Energy House 2.0 will enable us to find out how everyone can operate their homes more efficiently and how new technologies can assist our efforts in reducing carbon emissions by building more efficient homes.

“The research will produce reliable data that can help us all to make changes. We will compare the theoretical and real performance of different energy methods, finding out how our habits impact on energy consumption and retention.”

Bellway started work building its energy house last month and the build programme is scheduled to be completed in October

Jamie added: “Many of the technologies we will be testing are due to be in common use in new homes by 2026. This project provides us with the opportunity to test their effectiveness and to create solutions to any challenges we encounter.

“The results will help us to deliver more energy-efficient homes and to advise people on how to make best use of new technology to control energy usage and running costs.”

Energy House 2.0 is one of a series of test sites Bellway has set up across the country to work with new energy efficient technologies.

Currently, four ‘Future Homes’ are being built in Callerton, Northumberland, which will be available for open sale and homeowners will work with Bellway to monitor energy usage as part of Bellway’s wider carbon reduction strategy.

Blog post from estateagenttoday

Ban on charging ground rent on leases comes into force today

 

The government’s ban on charging ground rent on new leases in England and Wales comes into force today.

From today, anyone buying a home on a new long lease will now be freed from these annual costs.

Landlords are  banned from charging ground rent to leaseholders, under a new law that the government hopes will lead to fairer, more transparent homeownership for thousands of homebuyers, helping to level up opportunities for more people.

In preparation, many landlords had already reduced ground rent to zero for homebuyers starting a new lease with them.

Leasehold minister Lord Stephen Greenhalgh said: “This is an important milestone in our work to fix the leasehold system and to level up home ownership.

“Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers.”

Future measures, announced last year, include a new right for leaseholders to extend their leases to 990 years at zero ground rent and an online calculator to help leaseholders find out how much it would cost to buy their freehold or extend their lease.

Commenting on the changes, CILEX (Chartered Institute of Legal Executives) head of policy, Jonathan Walker, said: “The ban on ground rents is positive news for anyone considering buying a leasehold property and important progress towards ensuring safety and security for all householders.

“Problems still remain however, and it is disappointing that there is no retrospective inclusion of current leasehold tenants within the Act. They will still be obliged to pay their existing rents, even in cases where they are seeing those rents escalate – some doubling every ten years. Those attempting to sell on properties will find ground rents prove unattractive to buyers who now have the option of purchasing a rent-free leasehold property, and many will experience difficulties when looking to remortgage, or extend or vary their existing leasehold.

“Such fundamental changes to the leasehold market must be implemented alongside awareness raising and education amongst both consumers and professionals so that both understand the implications for property transactions.

“It is vital that we see a continued programme of reform that benefits those who are new to the leasehold market whilst not disadvantaging or restricting those currently within the system. We hope to see further measures to address residential leasehold houses and cap ground rent for all existing leasehold properties.”

Blog post from propertyindustryeye