Letting Agents – Why are Shelter Quoting Out of Date Research to back up their Flawed Argument on Future Rental Rises

Scotland banned Letting Fees in 2012. The charity Shelter have been a big voice in persuading and lobbying the Government since it managed to persuade the Scottish Parliament ban fees in 2012.

On all the TV and radio shows at the moment, they keep talking about their Independent Research which backs up their argument that rents didn’t rise.which they say was published in 2014.

A researcher for Shelter in Scotland published these comments yesterday,

_renters, landlords and the industry as a whole had benefited from banning fees to renters in Scotland. It found that any negative side-effects of clarifying the ban on fees to renters in Scotland have been minimal for letting agencies, landlords and renters, and the sector remains healthy._

Going on,

_Many industry insiders had predicted that abolishing fees would impact on rents for tenants, but our research show that this hasn_t been the case. The evidence showed that landlords in Scotland were no more likely to have increased rents since 2012 than landlords elsewhere in the UK. It found that where rents had risen more in Scotland than in other comparable parts of the UK in 2013, it was explained by economic factors and not related to the clarification of the law on letting fees_

The report Shelter mentioned was published in December 2013ÿÿ(only 12 months after the ban).

How can Shelter quote a report today, in late 2016, when that report they use as proof ÿthat rents havent risen was published in Dec 2013, only 12 months ÿafter the ban (and you think about it, these reports take a few months_ to compile), so the report was only based on figures say six to nine months after the ban came into action (FYI – The ban was Q4 2012)

What really happened to rents in Scotland

I have carried out my research up to the end of Q3 2016, and that tells a different story

In Scotland, rents have risen according the CityLets Index by 15.3% between 2012 and today (CityLets being the equivalent of Rightmove North of the Border _ so they know their onions). When I compared the same time frame, using Office of National Statistics figures for the English Regions between 2012 and 2016, this is what has happened to rents

  • North East 2.17% increase
  • North West 2.43% increase
  • Yorkshire and The Humber 3.21% increase
  • East Midlands 5.92% increase
  • West Midlands 5.52% increase
  • East of England 7.07% increase
  • South West 5.82% increase
  • South East 8.26% increase
  • London 10.55% increase

..and let me remind you of Scotland _ 15.3% increase.

See the graph below ..

15094287_10154679132654590_4158838222615935824_n

Conclusion

Are you really telling me the Scottish economy has outstripped London’s over the last 4 years? Are really telling me wages and the Scottish Economy have boomed to such an extent in Scotland in the last 4 years they are now the Powerhouse of the UK .. because if they had, Wee-Nicky Sturgeon would have driven down the A1 with a blink of an eye, not even stopping at FerryBridgeÿ(M62/A1) Service station for a Bacon Bap and Black Coffee to demand immediate Independence

Rents will increase as the fees will beÿpassed onto Landlords in the coming few years. Not immediately .. but they will

If you are a letting agent and want more stock and charge higher fees.. have a look these articles on how you will can increase your fees or get more landlords to use your agency ..

kind regards

Christopher

A Freelance Property Market Journalist and 
the UK's No.2 Letting Agency Growth Guru 

(ie I help letting agentsÿget more landlords to use their letting agency)

PSÿIf you are thinking there has to be a different way to attract landlords to your letitngs agency in 2017 _ give me a call or email me. If you think _ the lad has a point but I_m not ready to ring him _ why not watch all of my videos (link below)

emailÿchristopher@christopherwatkin.co.uk
mobile 07950 147572

450+ blog posts on getting more landlords for your lettings agencyÿhttp://how-to-grow-your-lettings-agency.blogspot.co.uk

my thoughts on how toÿsucceed in UK letting agency inÿvideosÿ (15+ videos)ÿhttps://goo.gl/Zzw4LN

 

Christopher Watkin

I teach, guide, support, mentor, consult, counsel, partner many hundreds of UK Estate and Letting Agents in their quest to grow their estate and lettings agencies business. Old school techniques of touting, landlords wanted leaflets, ring us for a free valuation, we have sold this in your street leaflets don't work anymore. There are too many competitor agents .. meaning cheap fees are epidemic, overvaluing is almost a norm to get the stock and don’t even mention about the online/hybrid threat. So a few years ago, I set about looking around the UK and spotted that certain agents (not many mind you) in certain towns were still seen as the ‘go to person on property’, the person the newspaper editor rang up every week for a comment and I looked at what they did and they were doing some thing quite remarkable…. Only one thing but they were doing it so well .. and reaping the reward in terms of decent listings and decent fees, happy staff, decent sales pipeline and exchange income, managed lettings portfolios in the many hundreds .. but more importantly, they really enjoyed the job… they enjoyed getting up in the morning and people looked up to them Over 400 agents around the UK are on a mission to change the way our Estate and Lettings agency profession is perceived and looked upon, doing it town by town, city by city. I guide these 400 agents, teach them, mentor them and support them to be seen in a different light, to be seen as the ‘go to person for property’, actually be the ‘local property expert’ and prove it. Christopher Watkin 07950 147 572 christopher@christopherwatkin.co.uk

You May Also Enjoy

Breaking News

Breaking Property News – 28/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   tlyfe the tenant App gets huge marketing boost from national team tour from the Openbrix team As many will know tlyfe, powered by OpenBrix, is the UK’s most innovative tenant lifecycle app, taking the stress out of the move in process and helping to…
Read More
Breaking News

Over Four Out Of Five Tenants Unaware Of The Renters Reform Bill

OVER four out of five tenants remain unaware of the Renters (Reform) Bill and its contents, according to new research. The data comes from a representative survey of over 2,000 private renters conducted by the TDS Charitable Foundation, which works to advance education about housing rights and obligations in the private rented sector. The Bill…
Read More
Estate Agent Talk

What is Property Damage in a Personal Injury Case?

Property damage refers to any damage that affects things instead of a person. This might include damage to your car, house, etc. As such, it is not regarded as a personal injury case. However, when an individual is injured when the accident occurs, the affected person can file a personal injury claim. A typical example…
Read More
Love or Hate Rightmove
Breaking News

Rightmove comment on new 99% first-time buyer mortgage product

Matt Smith, Rightmove’s mortgage expert said: “It’s encouraging to see lenders continuing to try to innovate in the mortgage market, even after the government abandoned its own plans to encourage lower deposit mortgages in the Spring Budget. This new product has the potential to help some first-time buyers who fit the affordability criteria, but are struggling…
Read More
Breaking News

Breaking Property News – 27/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Coadjute ahead of the game as they are already licensed to provide digital TA6 Forms to property stakeholders This week, the Law Society announced its TA6 Form will now include Material Information as per the the National Trading Standards Estate and Letting Agency Team…
Read More
Breaking News

Breaking Property News – 26/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Sharing Success: The Guild Conference and Awards celebrate Member achievements The QEII Centre in Westminster, London, was abuzz with excitement on Friday, 22 March 2024, as The Guild of Property Professionals hosted its highly anticipated annual Guild Conference and Awards. Under the theme ‘Sharing…
Read More