It’s fair to say that, in the past, homeownership has been the primary goal for many young people. Times have changed, and it appears that a significant number of ‘millennials’ have now no desire to get onto the property ladder but are quite content to rent for the foreseeable future.

Renting can have many benefits, making it a more attractive proposition, with one of the main reasons cited being freedom from the financial baggage and responsibility that comes with a mortgage.

With homeownership, there are a lot of hidden costs that will be entirely the responsibility of the owner. From the initial deposit to plumbing, electric, garden, and general property maintenance, the cost of buying and maintaining a home can run into many thousands of pounds.

When you rent, you are able to budget better as you have fixed costs for the property. Your monthly rent will, for the most part, remain constant each month. Any maintenance needed is the responsibility of the landlord, not the tenant.

According to the Office of National Statistics, using figures from 2017, young people are way less likely to own their own property today than ever before. Fifty per cent of people in their mid-30s to mid-40s in 2017 had a mortgage, compared to 66% twenty years ago. The same age demographic today is three times more likely to opt for a rental property than they were two decades ago. One-third of this group lived in rental homes in 2017, compared with one-ten just twenty years ago.

The figures released indicate that the population with the highest wealth status, in any age group, is more likely to buy property than those with a lower income. The number of property buyers has decreased significantly in the last ten to twenty years, mostly due to problems raising the initial deposit. But not all renters are renting out of necessity; some are making a considered choice.

The pandemic has had a marked effect on people’s choices when it comes to where they want to live and work. The normality of working from home has caused a rethink of the type and location of homes. With the elimination of travel costs to work, many have opted to put the extra cash into a property that they can work from, basically in any location they desire, which they would not otherwise be able to afford. Another vital advantage of renting is that you are able to relocate quickly and easily without the need to sell or rent out your property.

Renters have rights that they can expect from their landlord in order to protect themselves. Renters’ rights include:

• The right to know the identity of the landlord
• The right to reside in a safe property that is in good repair
• The right to be protected from unfair rent and eviction
• They have the right to have their deposit returned, provided the property is in the same condition as when they first rented it.
• The right to challenge excessive charges
• The right to live undisturbed
• The right to see the EPC (Energy Performance Certificate)
• The right to a legal rental contract (for fixed tenancies over three years)

One of the drawbacks of rental properties is that UK legislation to protect private renters is very poor, and many become victims of unscrupulous landlords.

With property prices the highest they have been in 15 years, we look at the current housing market trends and determine whether investing in property is the best choice for 2022.

As we move into another stage of the pandemic, with possible restrictions and lockdowns looming, it’s not surprising that property prices are at the forefront of the conversation. With the COVID-19 virus causing unprecedented disruption to the economy and the way people socialise and work, office space, shops, and ultimately property prices have been severely affected.

Adding to the feeling of uncertainty, the expected dramatic rise in interest rates by the Bank of England, in an attempt to get inflation under control, is causing mortgage rates to rise, making homeownership an impossible dream for many.

Changed planning regulations, allowing property developers to convert former offices and commercial properties into residential properties, have allowed a flood of more affordable, accessible homes onto the market. Rental and property prices are not expected to go down any time soon due to a shortage of supply, resulting in cheap accommodation selling and renting at record speed.

Initially, the pandemic and the end of the stamp duty holiday were expected to be catastrophic for house prices, but they have been anything but. In fact, after an initial dip, prices in nearly all regions of the UK have been rising.

An agent from a well-known high-street agency commented, “We really need more stock. Warehouses, former industrial parks, and if offices are empty, convert them,” she says. International markets have reopened, and international investors are coming back. Post-Brexit, they are looking to invest”.

Wybo Wijnbergen, chief executive of Infinite Space, a Dutch-based, pan-European commercial agency specialising in flexible working spaces, commented: “To say the commercial real estate sector has come under strain during the pandemic would be an understatement.

“First and foremost, the spread of the COVID-19 virus has forced offices, retail outlets, and hospitality venues to close for long periods in 2020, with many companies terminating their contracts with landlords.”

He stated that there had been only £8.9 billion in sales of commercial properties in 2020, down a significant 30% from the previous year.

CBI Economics released a report in July of this year showing that 93% of businesses were keen to adopt a hybrid type of working environment, with most employees working from home either full-time or part-time, and only a mere 5% expected to be in the office full-time.

“Landlords now face the task of adapting their offerings and reallocating their office space in accordance with evolving demands,” added Mr Wijnbergen. “There is a new phrase in play here as landlords struggle to their offices.”

After being put on indefinite hold for the past two years, the organisers of the National Landlord Investment Show have officially confirmed the return of live events across the UK.

The first in-person National Landlord Investment Show will take place at Manchester United FC’s iconic Old Trafford ground on October 12, before heading south to the main national event in London on October 26 at Old Billingsgate.

“We are absolutely thrilled to be returning to Old Trafford, Manchester, for our first live event in nearly two years. Not only is this our seventh return to Manchester United Football Club, but it also marks our 70th live show since our inception in 2013,” said Tracey Hanbury, the show’s founder.

The biggest and most prestigious annual event of its kind for landlords and property investors, the National Landlord Investment Show provides newcomers and established investors with the opportunity to connect with other property professionals from around the country.

Anyone involved in the BTL sector or considering investing in a private rental property is invited to head over and check out the action.

“We offer the opportunity to meet exhibitors and discuss your needs, browse the superb products and services on offer, network, and watch excellent seminars by leading industry experts,” added Hanbury.

“Attendees will find an extensive spread of exhibitors at the show, and, with the property market remaining buoyant, there’s no time like now to get involved.”

A wide variety of exhibitors from around the greater Manchester area are set to make an appearance at this year’s events, spanning such sectors as legal advice, finance suppliers, investment opportunities, insurance, tax experts, property management, education and mentoring, the latest proptech, furnishings and decor, and many more.

Dozens of seminars and debates will take place throughout the day, discussing all aspects of the BTL sector and its future.

The main National Landlord Investment Show will follow the Manchester event on October 26, taking place at an equally iconic venue just a stone’s throw from London Bridge.

The venue is extremely impressive and will bring much to the event, including fantastic train and tube lines directly into London Bridge and city tube stations, which are all within walking distance,” advised Hanbury.

“Over 70+ exhibitors will be on hand for you to meet, network with, and do business with. In addition, the show boasts over 50 expert speakers and has added three unique and unmissable features.”

The event’s organisers spoke of their delight in the return of live shows, having been forced to host virtually all events over the past two years.

Sponsors of the event have also spoken with optimism about the long-awaited return of the UK’s premier event for new and experienced buy-to-let investors.

“We have exhibited at all the live shows since 2013 and also sponsored the online events during the pandemic, and I am delighted to say the shows have gone from strength to strength,” said Nova Financial chief executive and primary sponsor of the event, Paul Mahoney.

“We have increased our presence at all events and are delighted to be the main sponsor for the upcoming Manchester and London shows. These events are unmissable for any UK landlord, and my team and I cannot wait to be part of the events again and to meet you once again face-to-face.”

 

You may have wondered whether your credit score is better or worse than the UK average, or you may wonder whether average credit scores differ significantly from one part of the country to the next.

Each of the UK’s primary credit agencies has a different scoring system. The average score with one credit agency could be entirely different from that of another.

With Equifax, a credit score of 550 would rank you within the “good” bracket. Over at Experian, the same 500 score would give you a credit rating of “poor,”, while TransUnion brackets a score of 550 as “very poor.”.

Here is a brief overview of how the three primary agencies classify credit scores as of 2021:

Credit score ratings according to Equifax

Score	Band
0-438	Poor
439-530	Fair
531-670	Good
671-810	Very good
811-1000	Excellent

 

Credit score ratings, according to Experian

Score	Band
0-560	Very Poor
561-720	Poor
721-880	Fair
881-960	Good
961-999	Excellent

 

You can check out your Experian credit score for free, though it will cost you £7.99 a month to see your full report. This shows your credit history and financial associations. If you want to see this, you can sign up for a free trial, which lasts for 30 days.

Credit score ratings according to TransUnion

Score	Band
0-550	Very Poor
551-565	Poor
566-603	Fair
604-627	Good
628-710	Excellent

 

As for the question “do average scores vary in different parts of the UK?” The answer is yes, they do. Depending on where you live, the average consumer is likely to have an entirely different credit score based on where they live.

According to Experian’s credit rating system, the most widely used indicator of creditworthiness, the regions with the highest average credit score are as follows:

1) Isles of Scilly: 881

2) Wokingham: 877

3) Chiltern: 874

4) Elmbridge: 872

5) Hart: 872

6) Waverley: 871

7) St Albans: 871

8) South Cambridgeshire: 867

8) Brentwood: 850

10) West Oxfordshire: 844

At the opposite end of the scale, the locations with the lowest average credit score in the UK are:

1) Kingston-Upon-Hull: 696

2) Blaenau Gwent: 702

3) Blackpool: 709

4) Merthyr Tydfil: 712

5) Middlesbrough: 713

6) Northeast Lincolnshire: 717

7) Knowsley: 722

8) Hartlepool: 724

9) North Ayrshire: 737

10) St. Helens: 744

How to boost your credit score

For anyone concerned about their credit rating, there are several options available for giving things a nudge in the right direction.

None of the following are likely to propel you in the rankings overnight, but you could nonetheless contribute a few additional points and perhaps make a real difference:

• Pay off as many smaller debts as you can, such as credit card balances and overdrafts. A simple yet effective demonstration that you are a responsible borrower that can be trusted
• If you have not already done so, ensure your name appears on the electoral roll. Signing up takes seconds and almost always makes a positive difference to your credit score.
• Avoid late payments and missed payments at all costs, which in almost all instances will inflict further damage on your credit score.
• Before applying for any financial products or credit facilities, make sure you are 100% confident your application will be accepted.

If in doubt, consult with an independent financial adviser or specialist broker to discuss the options available in more detail.

A statement from the NRLA (National Residents Landlords Association) has been published, highlighting the lack of government action to address the increasing COVID-19 rental debt for private landlords and renters across the nation. With the end of furlough and the recent benefit cuts, thousands of renters and landlords are finding themselves in a very bleak place, with many renters facing redundancy and landlords unable to keep up with mortgage payments.

A warning from the Bank of England states that renters are the most likely candidates for post-furlough redundancy, leaving them unable to pay their rent and facing mounting debt, thereby increasing the probability that many landlords will be forced to default on their BTL mortgages.

According to a report by the NRLA and acknowledged by the government, the number of renters finding themselves unable to pay their rent has tripled from 3% to 9% from 2019 to the end of 2020. Now that furlough has come to an end alongside the universal benefit cut, the expected number of people in rental arrears is expected to rise significantly.

The report strongly recommends that the government take decisive action by offering what the NLRA is calling an interest-free “hardship loan” to assist renters who are at risk of accruing unsustainable debt. The funds would allow the renter to clear rental arrears and would follow similar schemes already introduced in Scotland and Wales. The report also calls for the government to scrap the £20 a week cut to Universal Credit, pointing out the inevitable devastating consequences it will have on renters across the UK.

The needs of landlords have often been overlooked, with them not having the value attached to them that by rights they should, considering the importance of maintaining a healthy private rental sector. With many businesses and individuals across the UK suffering financially in one way or another due to the pandemic, little thought has been given to the plight of landlords. The NRLA is using its influence to try to get much-needed help for landlords, not just tenants, voicing the importance of helping them deal with non-payment of rent arrears.

Landlords would be wise to take advantage of the advice and support available to them in regard to BTL (buy-to-lead) products, refinancing options, and evaluating their current situation. It is vital that the support is there, with many lenders doing their bit by offering competitive loan products and relaxing criteria. It is, however, ultimately up to the government to provide the bulk of this much-needed support in the wake of the COVID-19 crisis.