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Em

Em Morley

Could AI automation help agencies save time and focus on compliance?

Published On: August 7, 2019 at 8:44 am

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Categories: Lettings News

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Roby.ai, a new Artificial Intelligence (AI) assistant, has been developed in order to help reduce the workload of the typical letting agent. 

The AI says that agencies should consider how they can factor in the additional responsibilities alongside their existing obligations and the needs of their business.

With new regulations proposed for the property sector by the Regulation of Property Agents (RoPA) working group, such as a new industry regulator, stricter licensing, a Code of Practice and mandatory qualifications, workloads might be about to increase.

Tom Reiss, CEO and co-founder of Roby.ai says: “These new requirements will benefit the industry in the long-term, discouraging rogue operators and contributing towards raising the public perception of agents.

“In the short-term, however, there will be additional work involved and some agents will feel under pressure to comply in time, not to mention some of the additional costs involved.”

How can agents utilise automation to comply with regulation?

Roby.ai points out that agents can save time on administration and subsequently spend less time on existing compliance obligations by using automation.

Having more time spare will free them up to focus more on RoPA’s new regulatory framework, as well as improving customer service and targeting new landlord business.

Reiss explains: “So many parts of the lettings process can now be automated, taking no time at all. This reduces the number of repetitive tasks staff have to carry out and the scope for human error at the same time.

“Automation can help agencies to save time and focus on complying with the new regulations without compromising on customer experience or business growth.”

Services such as Roby.ai can also set up rental payment structures for tenancies and automatically issue correct and up-to-date documents to the relevant parties.

Reiss concludes: “Letting agents no longer need to spend time doing these tasks, many of which they can no longer charge for due to the tenant fees ban.

“Using AI to automate large parts of the lettings process can help agents to stay on top of day-to-day business, prepare to comply with the new regulations and stay up-to-date with existing legislation.”

Agents, would you consider AI automation to help with your business?

HHSRS hazards can be reduced with specific landlord reports

Published On: August 6, 2019 at 9:45 am

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Housing Health and Safety Rating System (HHSRS) inventory reports are not a requirement for letting agents and landlords to comply with The Homes (Fit for Human Habitation) Act 2018, according to No Letting Go.

The UK property inventory service provider says that there is currently widespread confusion relating to the new legislation. 

The Act has been devised as a way to ensure that all rental accommodation is suitable for human habitation at the start of the tenancy and throughout. It was introduced in March, providing renters with powers to take legal action against their landlord directly via courts if their rental property does not meet certain requirements.

Any home that is overcrowded, has an unsafe layout, has been neglected, or contains any one of the HHSRS hazards could be deemed unfit for human habitation.

The HHSRS was introduced back in 2006, under the Housing Act 2004. It provides local authorities with the means to check health and safety in residential properties and identify hazards. A ‘category 1′ hazard is the most dangerous.

Councils can use the HHSRS to order them to carry out improvements to their rental properties. It can also be used to recover costs from landlords for repair works.

The Government recently announced that it plans to reform the HHSRS to ‘improve, clarify and modernise’ the system, as well as address whether some hazard profiles can be removed or combined.

Nick Lyons, CEO and Founder of No Letting Go, says: “Since the introduction of new legislation in March, we’ve seen organisations publishing HHSRS checklists and offering health and safety checks.

“For inventory providers and other industry firms to promise to be able to do this is misleading due to the nature of some of the 29 HHSRS hazards.”

“The new Act is there to make it easier for tenants to prosecute landlords if there is an issue with one of the 29 hazards.”

A tenant must notify their landlord in writing if they notice an issue that they believe makes the property unfit for human habitation.

The landlord – or a letting agent acting on their behalf – then has 14 days to provide an adequate response in writing, proposing a solution to the issue.

Lyons explains: “Providing the issue is dealt with in a timely fashion, there will be no problem for landlords and no further action taken.

“There is no legal requirement for an HHSRS report to be provided at the start of the tenancy.”

No Letting Go has pointed out that some of the HHSRS hazards, such as radiation and volatile organic compounds, are not visible or obvious, making it tricky to fit into a ‘tick box format’.

Lyons says: “A good inventory and documented mid-term inspections, alongside efficient maintenance processes, can prevent problems and ensure that letting agents and landlords remain compliant with The Homes (Fitness for Human Habitation) Act.”

Some 15 of the 29 HHSRS hazards would be picked up in a good inventory or property visit, according to No Letting Go.

These include damp and mould growth, excess heat or cold, lighting, entry by intruders, food safety, sanitation, water supply and more.

However, it says the remaining 14 hazards, such as lead in paint, are much less common, making it difficult to see how an agent or landlord could check the property for such issues unless they are specifically trained or it has been raised by the tenant.

Lyons concludes: “The HHSRS in its current form is complicated, so it’s good news that the government has committed to simplifying it.

“Moving forward, a reformed HHSRS will be able to complement independent inventories and legislation like the Homes (Fitness for Human Habitation) Act in order to protect the condition of properties and provide renters with a higher standard of accommodation.”                  

Is new Right to Rent guidance breaking UK law?

Published On: August 6, 2019 at 8:59 am

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New Government guidance on Right to Rent would see landlords breaking the law if they followed it, according to the Residential Landlords Association (RLA).

In the document for this new guidance it says that landlords will only be required to see passports and airline tickets as proof nationals from certain countries planning on staying in the UK for up to six months are allowed to rent property. Landlords will not have to check visas.

This includes nationals from Australia, Canada, Hong Kong, Japan, Singapore, South Korea and the United States (known as B5JSSK nationals).

The RLA has pointed out that, whilst this guidance has no legal standing, the legally binding Code of Practice agreed by Parliament makes clear that, for such nationals, landlords must be shown clear evidence from the Home Office that the holder has the right to reside in the UK. This includes residence on a permanent basis or a time-limited period.

The RLA argues that a simple airline ticket with a passport does not meet this threshold. Without a corresponding change to the Code of Practice by Parliament, this guidance does not give any legal cover for landlords, should a tenant say longer than six months.

A court judgement has highlighted that Right to Rent breaches human rights law because it causes racial discrimination that otherwise would not happen. The RLA has written to the Home Secretary in response to this, calling for the scheme to be scrapped altogether.

Under the Right to Rent policy, private landlords face potential imprisonment of up to five years if they know or have ‘reasonable cause to believe’ that the property they are letting is occupied by someone without the right to rent in the UK. Theresa May introduced this scheme during her time as Home Secretary as part of the Home Office’s hostile environment for immigrants.

David Smith, Policy Director for the Residential Landlords Association, has commented: “This represents a new low in the sorry saga of the Right to Rent.

“Having already been ruled to be discriminatory by the High Court, the Government is now putting out guidance which could leave landlords open to prosecution.

“It reinforces once against that the Right to Rent policy needs to go and go now.”

Landlord debate to take place at London launch event for new annual rent product

Published On: August 5, 2019 at 9:11 am

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Advanced Rent Option (ARO) is a new product being launched to allow landlords and property investors to obtain annual rent upfront in one lump sum.

An exclusive launch event will be held later on this month, with landlords and property investors invited to attend.

The free event will be held at London’s Royal Institution of Great Britain between 6.30pm and 9.30pm on Wednesday 28th August 2019, with a range of exciting industry guest speakers and presentations arranged for the evening.

Attendees will learn more about ARO and hear from those who have already benefitted from having their annual rent paid upfront. There will also be networking opportunities for like–minded landlords and industry professionals, including developers, industry suppliers and agents.

Christopher Watkin will be hosting the even, providing his unique take on the future of the rental market and highlighting the key drivers for change, including PropTech, regulation and Brexit.

Charlie Bryant, Managing Director of Zoopla, and Vanessa Warwick of Property Tribes have also confirmed their attendance.

A panel debate will take place between the Zoopla MD, Simon Shinerock, owner of Choices Estate Agents, renowned property developer and investor John Howard, and certified accountant and tax advisor Karl Carraher.

The debate will focus on the changing landscape of the lettings industry and will be chaired by Christopher Watkin.

Simon Shinerock has commented: “The ARO has already generated a huge amount of interest among inquisitive landlords and investors who are looking for innovative ways to manage and grow their portfolios.

“This event will give them the chance to understand exactly how the ARO works and how it is already benefitting other landlords. There’ll also be a range of presentations around the current state of the market and where it’s headed.

“Marking a significant milestone in the development of the PRS, the event is a must-attend for all open-minded landlords who want increased financial freedom.”

Christopher Watkin added: “Now is the time for letting agents and landlords to be thinking ahead with the aim of futureproofing their success. The ARO is a boundary-pushing concept which fits this mould and acknowledges the changing landscape of the modern lettings market.”

“I look forward to welcoming landlords, agents and property professionals to the launch event and discussing the future of the rapidly growing and increasingly influential PRS.”

Shinerock also said: “A combination of challenging market conditions and record low buy-to-let mortgage rates means now is the perfect time for savvy investors to expand their portfolios.

“However, finding the capital to do so – especially when considering the stamp duty surcharge on additional property purchases – is not always easy.”

“We want to help landlords to take their next step in the property market on their journey towards financial freedom, or alternatively to simply make a dream luxury purchase, pay for a wedding, school fees or anything else they desire.

“We’re looking forward to welcoming landlords and investors of all levels to the Royal Institution of Great Britain on August 28th to present the ARO and discuss the future of the industry we all care so much about.”

Interested parties can register for the event here: https://landing-page.angelsmedia.co.uk/choices-advanced-rent/

Stamp Duty reform required as surcharge puts ‘immense pressure’ on private landlords

Published On: August 5, 2019 at 8:27 am

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Categories: Landlord News

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The Intermediary Mortgage Lenders Association (IMLA) believes that Stamp Duty remains an issue for buy-to-let investors and older homeowners looking to downsize.

As of 1st April 2016, an additional 3% Stamp Duty surcharge was brought in for buy-to-let landlords and second homebuyers. This surcharge applies to residential properties being purchased for £40,000 or more and up to the value of £125,000. However, the rate increases with the price of the house:

  • 5% surcharge on £125,001-£250,000 purchases
  • 8% surcharge on £250,001-£925,000 purchases
  • 13% surcharge on £925,001-£1.5m purchases
  • 15% surcharge on purchases over £1.5m

Kate Davies, IMLA executive director, says: “Removing stamp duty for these so-called last time buyers would help those who want to downsize to move into smaller, more manageable properties for retirement. It would also increase the availability of larger houses suitable for growing families and ease the movement in our housing market.”

She has also highlighted that in a buy-to-let market, private landlords across the UK are under significant pressure from a layering of tax changes. This includes the additional 3% Stamp Duty surcharge on additional homes.

Davies points out that the latest quarterly Stamp Duty figures from HMRC show that many buyers are still being deterred from entering the market because of this tax. It’s also preventing small-scale landlords from investing to grow their portfolios.

Davies explains: “It is critical that the Government puts the brakes on any further legislation that could restrict the Private Rental Sector (PRS). Our recent report on buy to let shows that this market could be topping out and measures like Stamp Duty are putting immense pressure on private landlords.

“There are unintended consequences of squeezing the PRS in order to boost home ownership, not least driving up rents and limiting the choice for tenants across the country.”

Brits don’t feel like ‘proper adults’ until 29 years old, research suggests

Published On: August 2, 2019 at 9:23 am

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A study by Nottingham Building Society has found that nearly three in five Brits included in its survey didn’t feel like a ‘proper adult’ before the age of 30.

The survey included 2,000 people and looked into factors which Brits believe qualify them as ‘proper adults’. This ranged from owning a property to starting a family and consistent saving habits.

25% also believed that they wouldn’t feel like a ‘proper adult’ until they reached the age of 60 or over. The survey looked into the main reasons for this:

  • 50% admitted they are avoiding serious responsibilities
  • 48% said they are relying on parents for support
  • 35% responded that they are still having fun.

Many of the reasons were also money-focused, with lots of Brits needing financial stability before feeling grown-up. A third stated that poor money skills were preventing them from being a ‘proper adult’. Nottingham Building Society has also pointed out that 37% of women responded that they do not feel mature until they are financially competent, compared to 29% of men.

Property was mentioned as a key milestone, with 21% of Brits believing that they need to own a house or flat before reaching adult status. The Government’s Lifetime ISA scheme makes achieving this goal easier for first-time buyers aged 18-39, with buyers able to get an annual bonus of up to £1,000 on top of their savings to put towards their first home. 

These are the top ten factors for why some don’t feel like a ‘proper adult’:

  1. Trying to avoid serious responsibility (50%)
  2. Relying on parents for support (48%)
  3. Still just wanting to have fun (35%)
  4. Not good at managing money (33%)
  5. Having no savings (33%)
  6. Spending all savings on holidays or social events (32%)
  7. Not owning property (21%)
  8. Not having progressed far in a career (18%)
  9. Having no children (15%)
  10. Not being married (12%)

Jenna McKenzie-Day, Senior Savings Manager at The Nottingham, said: “The survey data has given an interesting insight into British attitudes towards saving and how having control of your finances is such a big part of feeling like a true ‘adult’. 

“There really is no age limit on starting your savings journey, and there are a few simple steps you can take to start effectively managing your money, such as tracking your spending habits through an app, or setting up a budget spreadsheet to see how much you can realistically save each month. 

“For long-term saving plans like buying a house and retirement, a Lifetime ISA can be really valuable, and a great product to help you on your savings journey. In our recent survey, over half of the savers questioned were unaware of the LISA and the 25% bonus on offer. 

“If you start saving early enough, you can earn as much as £32,000 in bonuses from the Government, so that feeling of being an adult – may be more within reach than people realise.”