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Em

Em Morley

One in Ten Landlords have Lowest EPC Ratings

Published On: June 12, 2012 at 10:39 am

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Figures from the Association of Residential Letting Agents (ARLA) suggest that over one in ten landlords have properties in their portfolio that fall into the lowest Energy Performance Certificate (EPC) categories. Energy performance assessments of a home will include surveying features such as carbon dioxide emissions and potential environmental impact.

The survey of 1,500 landlords could suggest a heavy future reduction in rental properties, with new incentives proposed from the Government. From 2018, any property found to have a EPC rating of less than an E will be banned from the market.

More worryingly, the same ARLA survey showed that around 36% of landlords are not aware of the energy rating of their property.[1]

Chairman of the Residential Landlords Association, Alan Ward, has called for an increase in Landlord’s Energy Saving Allowance. At present, the annual tax allowance is £1,500, with Ward calling for this to be increased to £14,000. The allowance however is due to be scrapped in April 2015.

[1] http://old.lettingagenttoday.co.uk/news_features/One-in-ten-landlords-have-low-EPC-properties

Landlords Told not to do DIY Fire Risk Assessments

Published On: June 12, 2012 at 10:38 am

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A property specialist has urged landlords not to conduct their own fire risk assessments in their rental homes.

Chief Executive Officer of Belvoir, a residential letting specialist, Dorian Gonsalves, says: “Don’t even consider it; it could be fraught with danger.

Landlords Told not to do DIY Fire Risk Assessments

Landlords Told not to do DIY Fire Risk Assessments

“Few landlords understand the huge amount of legislation governing rented property these days. Fire safety issues have become so complicated and legislation covers so many different regulations for different types of property in different parts of the UK, that it’s no area for amateurs.

“Seek the advice and guidance of a professional, because the stakes are too high to go it alone.”1

Different types of rental accommodation, including new builds, conversions, studios, and Houses in Multiple Occupation (HMOs) require their own particular fire safety assessments, and individual appraisals.

Some types must uphold regulations concerning shared facilities, and others will require fire doors, etc.

Electrical equipment, plugs and sockets, furniture and furnishing materials must also all adhere to product safety requirements.

Gas appliances can cause carbon monoxide poisoning, and also house fires. Electrical wiring must be checked, as they can cause firetraps in older properties.

Les Marratt, who owns the Sutton Coldfield branch of Belvoir, says: “There are so many different regulations that landlords who try to understand it all are running the risk of still keeping an unsafe property.

“Every landlords has a duty of care to tenants and that is central to the whole fire safety issue. If everything is checked that needs to be checked then they’re protected. But if they don’t honour that duty of care then landlords can expect a robust response from fire and rescue authorities who enforce regulations.

“Seek expert advice then, from local authorities, professional safety advisers, or experienced letting agents such as Belvoir, who help landlords to follow best practice.”1

1 http://www.landlordexpert.co.uk/2012/06/11/uk-landlords-are-being-warned-not-to-do-their-own-diy-fire-risk-assessments/

 

5 Key Elements Every Landlord Should Know About

Published On: June 11, 2012 at 4:29 pm

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A surge in the buy-to-let market has seen a number of inexperienced landlords enter the industry for the first time. All landlords, regardless of experience, should make sure that they have five key elements in place to protect both themselves and their tenants.

Gas Safety Certificates

All gas equipment and fittings in a property should be checked by a registered gas engineer every 12 months. Two copies of the Gas Safety certificate will be provided after the inspection, one of which should be given to the tenant.

Energy Performance Certificate

An Energy Performance Certificate must be obtained for every rental property that a landlord intends to let. Again, a copy of this certificate must be given to the tenant.

5 Key Elements Every Landlord Should Know About

5 Key Elements Every Landlord Should Know About

 

Written tenancy agreement

Despite not being a necessary requirement, having a written tenancy agreement protects both parties if any disputes occur at a later date. Written agreements should include features such as how much rent has been agreed, the length of the tenancy and other essential terms by which the tenants must abide.

Tenancy Deposit Scheme

By law, landlords must protect tenants’ deposits in a Government approved Tenancy Deposit Scheme. Deposits must be protected within 30 days of the commencement of a tenancy agreement and tenants must be given notice of where and how their cash has been saved. This is known as the Prescribed Information. Failure to provide this information can see landlords facing hefty fines.

Mortgage/insurance company consent

Landlords without a specified buy-to-let mortgage must inform their mortgage provider immediately if they plan to let their property. In addition, building insurers must also be contacted, or landlords face voiding the property.

 

 

Thousands of Tenants can’t Pay Rent

Published On: May 31, 2012 at 12:12 pm

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A leading debt counselling charity has warned that thousands of tenants are being put in debt by spiralling rents.

Consumer Credit Counselling Services (CCCS) stated that in excess of 10,000 people contacted them for assistance with rent arrears during the last year. This was an increase of 27% on the last 12 months.[1] In total, 10, 246 people contact CCCS for assistance in 2011, in comparison to 8,074 in 2010.[2]

Last year’s figures suggest that on average, renters asking for assistance were £760 behind on their rent and around £82 behind on money needed to cover their monthly living expenses.[1]

Thousands of Tenants can't Pay Rent

Thousands of Tenants can’t Pay Rent

 

Worst position

The research shows that private tenants are seemingly in the worst position. On average, they are £924 in rent arrears and have a monthly budget deficit of £145.[2] Those tenants in debt to housing associations were roughly £705 behind on payments, with those in arrears to local authorities owing £622 on average.[2]

Of all tenants that contacted the charity for help with their rent arrears, their rent had increased by an average of 2.4%.[1]

Growing concern

CCCS Director of External Affairs David Corinaldi, was very concerned by the findings. He said: “A very large number of people are struggling to keep up with their rent payments, and with rents near record highs, the problem is getting worse, not better.”

In addition, Corinaldi warned that with “household finances being squeezed as it is,” another “rent hike” will be “the straw that breaks the camel’s back.”[1]

Corinaldi’s concerns were echoed by Kay Boycott, Director of Communications, Policy and Campaigns at charity organisation Shelter. Boycott said that the figures “paint a worrying picture of the rising numbers of families who face a monthly battle to keep a roof over their head.”[2]

She went on to suggest: “Just one thing like an unexpected bill can be enough to tip people over the edge,” and ultimately “put their home at risk.”[2] Boycott also called for those concerned over rising rent to seek assistance, saying: “Getting advice early can help to stop things from spiraling out of control.”[2]

[1] http://old.lettingagenttoday.co.uk/news_features/Thousands-of-tenants-cant-pay-rent-says-debt-charity

[2] http://www.stepchange.org/portals/0/Documents/media/pressreleases/Press_release_High_rents_forcing_thousands_into_debt.pdf

 

 

London Agents are Stinging Tenants

Published On: May 30, 2012 at 4:55 pm

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London Agents are Stinging Tenants

London Agents are Stinging Tenants

One agent in London charges £30 if tenants have moved any furniture from the exact place it was in at the beginning of the contract.

Financial website This is Money have revealed this figure, amongst others, in an effort to expose the wrongdoings of London’s letting agents.

They have also found that Foxtons estate agents charge up to £420 for setting up a tenancy agreement, while Savills would not reveal what they charge, stating that it is not their policy to discuss such fees over the phone.

This is Money have played the mystery shopper to nine agencies in London: Winkworth, Foxtons, Strutt & Parker, Hamptons, Black Katz, Knight Frank, haart, Kinleigh Folkard & Hayward, and Savills.

The mystery shopper enquired about fees at haart, and was told, “not to worry”1 as they could organise this further down the line.

The letting agent charging £30 for the returning of furniture to its original position was not identified.

This is Money have also revealed that these London “rental stings”1 are moving outside of the capital and could affect other areas of the UK.

1 http://www.landlordtoday.co.uk/news_features/London-agents-accused-of-stinging-tenants

 

Aspiring Buyers Stuck Renting

Published On: May 24, 2012 at 11:10 am

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Demand for high-value deposits are leading to a number of young couples feeling trapped in rental accommodation, according to research from search website MyVoucherCodes.

Aspiring Buyers Stuck Renting

Aspiring Buyers Stuck Renting

Their research suggests that a growing number of young co-habitants are searching for property requiring only a 5% deposit.

Stuck

MyVouchercode surveyed a total of 1,672 21-25 year olds that have been in a co-habiting relationship in rental accommodation for a minimum of two years. Of the couples questioned, 76% replied that they felt stuck in the rental market.[1] The same survey suggested that young couples spend an average of £6,900 per year on rent.

On average, the survey suggests that young couples pay around £575 per month. Positively, when asked if their rent had increased since moving in, 64% said that it had not.[1]

Taking into account that all respondents have been living in the same accommodation for at least two years, the survey suggests that average young couples have spent around £13,800 on rent so far.

Future

As part of the research, the young couples were asked when they thought they would be in a position to purchase their own home. The most common reply was said to be, in at least ten years time. Respondents were also asked if they had managed to start saving for a deposit. A worrying 69% replied that they have not yet started to save.[1]

Mark Pearson, founder of the MyVoucherCode website, said that it is now “harder than ever for young people to get on to the property ladder.”[1] He went on to say: “Even though house prices are now fairly low, rent remains high and once you’re caught in the rental market, it can be incredibly difficult to get out.”[1]

Pearson urged young couples to seek professional advice to take advantage of some of the assistance on offer to them. He said: “There are plenty of schemes around at the moment which are aimed towards first time buyers, such as the NewBuy mortgage scheme, so people should definitely be looking into their options. Rent is dead money.”[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Renting-costs-rob-couples-of-chance-to-buy