Welcome to our Weekly Property Roundup Edition #3 for Friday 29 June 2018, where we’ve done the hard work sifting through the week’s most relevant news so you as a landlord, tenant or investor can be confident you’re up to date with everything you need to know in the property world.
This week we share why millennials are favouring investing in digital currency Bitcoin over property, how tenants are flouting their tenancy agreements, the next energy performance deadline landlords must meet, and more good news about the strength of Edinburgh and Scotland.
Millennials more excited about investing in Bitcoin than in buying their own home
20 years ago if you rented a property instead of buying, you were seen as a failure in the eyes of much of the population. No-one chose to rent unless they absolutely had to. But today this stigma has all but vanished as renting becomes the accepted norm, and this trajectory will only accelerate due to further reform in the private rental sector that offers tenants more security.
These changing attitudes are demonstrated here, where new research shows that nearly 60% of millennials (those now aged 21-35) don’t see property as an attractive investment with Bitcoin seen as a better investment by over 20% of them.
The full report ‘Millennial Living in 2018: Insights for the UK ‘Build-To-Rent’ Sector’ is available here.
1 in 7 tenants break the rules
A new study showing how more than 1 in 7 tenants break the rules in their rental properties highlights the importance of using a professional property management company.
According to the research 15% of tenants have broken the terms and conditions of their tenancy agreement, with the most frequently broken rules including failing to pay rent on time, smoking in the property and keeping a pet. Other regulations commonly flouted include damaging or making alterations to the property, changing the locks and subletting rooms.
The research also indicates that nearly 10% tenants were never given a tenancy agreement by their landlord – which makes the above breaches virtually impossible to rectify and recover financial compensation for.
This emphasises why using a professional, established property management company who can advocate on behalf of any landlord is the best choice for all parties.
Landlords, take note of next energy performance deadline
Landlords should consider making plans now so their properties are compliant with the government’s next deadline relating to building energy performance, according to this article.
On 1 April 2018 it became unlawful for landlords to enter into a new lease with a new tenant, or renew a lease with an existing tenant, unless the Energy Performance Certificate (EPC) had a minimum rating of E.
Following this, as of 1 April 2020 it will be unlawful to rent any property – which will apply to existing and continuing tenancies, not just new ones – with an energy rating of E or below.
If you’re a DJ Alexander client interested in how the new deadline applies to your properties, please phone us on 0131 558 3323 or email email@example.com and our friendly team can provide personalised advice.
Strength of Scotland recognised
The Dynamic Cities index rated 130 European cities across six different categories and was assigned an overall score to highlight those with solid foundations for commercial property growth. Edinburgh was ranked twelfth overall and came within the top 10 for two categories thanks to the strength of its liveability, diversity, culture and arts sector.
On the national scale, the latest GDP data shows Scotland’s GDP grew by 0.2% in the first quarter of the year, which was double the rest of the UK’s growth of 0.1% growth. The production and service sectors expanded the most, while construction output fell partly due to bad weather in February and March including the Beast from the East.
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