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Em Morley

Rogue landlord fined for dangerous property

Published On: November 3, 2016 at 12:30 pm

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A rogue landlord has been ordered to pay over £1,000 after being found guilty of possessing an extremely dangerous rental property.

Landlord Joe Burgess, of Newark Road, Lincoln , failed to adhere to housing regulations and left his property in an appalling state of repair. Some issues with the property included unsafe electrics, no central heating, damp and a leaking roof

Fines

West Lindsey District Council served plenty of notices on Mr Burgess. After he failed to comply with these notices, the council were left to fit a considerable bill in order to make the property safe.

At Lincoln Magistrates’ Court, Burgess was found guilty and fined £440. In addition, he was told to pay £400 in legal costs, £376 in investigation costs and a victim surcharge of £44.

Rogue landlord fined for dangerous property

Rogue landlord fined for dangerous property

Councillor Sheila Bibb, chairman of the council’s Prosperous Communities Committee, said: ‘This is the second successful prosecution we have undertaken this year and demonstrates the council’s commitment to tackling criminal and rogue landlords. We hope this case sends a clear message to landlords that we will use all of the powers available to us if they do not comply with our requests when we serve formal notices. Nobody should have to live in unsafe accommodation in the district.’[1]

‘In this day and age there is no excuse for landlords who choose to ignore the law and we intend to continue to pursue them wherever their properties may be in our district. I would like to thank officers for their excellent work on this case,’ she added.[1]

 

 

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/landlord-fined-for-extremely-dangerous-rental-property

Gumtree – Friend or Foe?

Published On: November 3, 2016 at 12:01 pm

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James Davis – Portfolio landlord & property expert

After being a landlord for 22 years and becoming increasingly frustrated with the lack of quality tenant find services for landlords, James started Upad. Upad has mastered the intricacies of online to provide landlords a service they can rely on. In this article, James outlines the pros and cons of using Gumtree to find tenants.

Is it time to stop advertising on Gumtree?

Gumtree - Friend or Foe?

Gumtree – Friend or Foe?

Gumtree, with its village noticeboard approach to classified adverts, has long been the alternative choice for rental property seekers.

The benefits are simple: Landlords reduce costs, as they can advertise their properties without paying for magazine space or property agents. Tenants save time and money, with the ability to flick from home to home, striking deals and dodging agency fees.

Right now, Gumtree is still highly popular. But is it about to be left behind as spam, adverts and unreliable tenant leads flood its user base? In today’s digitally-focused market, should landlords forget about Gumtree?

Around the houses

Where rivals Rightmove and Zoopla have refined their user experience and functionality, Gumtree remains an unspecialised, classifieds website with a rental section, alongside used cars and musical equipment listings. This gives the specialist sites the upper hand, since their search functionality is specifically geared towards happy house hunting. Let’s look at the location criterion as an example of how specialist sites are better for users:

On Zoopla, you can draw lines on a map to define your search area, save the map and come back to it later. On Gumtree, the most refined you can get is village level, such as Hertford. There is no advanced search function to combine areas either. This is clunky and time-consuming for users who are increasingly trying to cram flat hunting into dead time, like during commutes.

Weak stock, fewer options

Gumtree’s problems mean the site only attracts a small fraction of the housing stock on the market at any one time. This might seem attractive to a landlord; a good property on Gumtree will have less competition than some of the bigger property portals.

Having fewer properties, however, means fewer tenants will bother visiting the site – supply could eventually outstrip demand. Furthermore, due to a laxer approach to posts and how they are moderated, Gumtree has become inundated with spammy and out-of-date ads.

The low quality of Gumtree’s site in turn attracts low quality users. Research by Upad found that the quality of enquiries from Gumtree users was lower than enquiries made via the leading online property portals. It took four Gumtree enquires to every Rightmove lead to successfully let a property.

To discover the most effective way to find tenants in a digital age, check out Upad, the UK’s largest online letting agent.

Property supply falls in the UK during October

Published On: November 3, 2016 at 11:19 am

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New research has revealed that four out of five UK towns and cities saw a fall in property supply during October.

Data from the report by HouseSimple.com also shows that the number of new listings were down by 6.9%.

Falls

During September, supply levels increased after the summer’s traditional lull. In October however, new listings slipped in a huge 81% of towns and cities.

The greatest falls were recorded in Swansea and Stirling, where property listings fell by 52% and 37.7% respectively on the previous month.

In order to complete the Index, HouseSimple looked at data from more than 500,000 listed properties to track the number of new properties coming to market in over 100 towns and cities. In addition, the survey looked at all London boroughs.

The table below indicates where the sharpest falls in new listings in UK towns and cities were recorded during October:

Town/City Region % fall in new listings in October vs. September
Swansea Wales -52%
Stirling Scotland -37.7%
Stevenage South East -36.4%
Winchester South -35.7%
Carlisle North West -34.7%
Hereford West Midlands -33.3%
Torquay South West -31.8%
Solihull West Midlands -31.3%
Chelmsford East -30%
Perth Scotland -30%

[1]

Property supply falls in the UK during October

Property supply falls in the UK during October

Activity

Alex Gosling, CEO of online estate agents HouseSimple.com, notes: ‘At this time of year we’d expect to see committed sellers rushing to put their properties on the market before the traditionally quieter period kicks in as we get closer to Christmas. The weather has also been unseasonably mild recently, and that should be encouraging sellers to list their houses as it presents an opportunity to show off their property in the best possible light.’[1]

‘Instead, we have seen new listings stall in October, with supply down in four out of five UK towns and cities. This might simply be a correction after September saw a surge in new properties coming onto the market and the overall drop in property supply is still less than 2% in October compared to September,’ he continued.[1]

Looking forwards, Gosling observed: ‘We may need to wait until the New Year now to see market activity pick up. But there will always be people that have to sell their properties in November and December, and that could mean opportunities to negotiate a good deal for buyers who have their finance in place and are ready to proceed.’[1]

[1] http://www.propertyreporter.co.uk/property/property-supply-down-across-uk-in-october.html

 

TPO offers new guidance for agents entering properties

Published On: November 3, 2016 at 10:21 am

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The Property Ombudsman has moved to provide new guidance concerning gaining tenants’ consent before accessing a property.

This alteration comes as a direct result of queries from agents regarding changes made to paragraph 8f of TPO Lettings Code of Practice, which came into force on the 1st October.

Misinterpretation

A number of agents interpreted the paragraph as suggesting that the explicit consent of a tenant must be gained before gaining entry. However, The Property Ombudsman has said this is incorrect.

The paragraph has subsequently been amended, so it now reads:

‘Access to a property may be required by you, or an authorised third party on behalf of the landlord (e.g. a surveyor, builder, tradesman etc) for the purpose of viewing the condition, state of repair and/or to fulfil related statutory obligations and/or to carry out repairs. Ifyou hold the key but are not able to accompany that person, the tenant must be given the appropriate minimum notice of 24 hours or that prescribed by law, of the appointment (unless agreed otherwise with the tenant beforehand), except in cases of genuine emergency. Notwithstanding providing the tenant with reasonable notice to access a property, express consent from the tenant to do so should be obtained.’[1]

In practice then, an agent must give written confirmation of their request to access the property to the tenant.

TPO offers new guidance for agents entering properties

TPO offers new guidance for agents entering properties

Acceptable

Within this request, the tenant must be asked for their confirmation of their consent. This request must also be issued in good time, in order to allow the tenant reasonable time to respond. An absolute minimum timeframe is 24 hours.

The alteration was made to the TPO Lettings Code after a number of cases where agents had only given 24 hours notice, sometimes not through the correct channels. For example, many sent the request through text message before entering, often surprising the tenant.

The TPO said: ‘Whilst legal, this was clearly not good practice and not the manner in which we would expect agents, who had voluntarily chosen to follow the TPO Code, to behave.’[2]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/11/new-tpo-guidance-for-letting-agents-on-entering-properties

 

House Prices End 15 Consecutive Months of Growth

Published On: November 3, 2016 at 10:15 am

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House prices remained flat in October, ending 15 consecutive months of growth, according to Nationwide’s latest House Price Index.

The building society’s report shows that house prices stayed steady last month, after rising by 0.3% in September.

House Prices End 15 Consecutive Months of Growth

House Prices End 15 Consecutive Months of Growth

On an annual basis, house price growth dropped from 5.3% in September to 4.6% in October.

The average house price in the UK now stands at £205,904.

Robert Gardner, the Chief Economist at Nationwide, reassures the property industry that last month’s decrease in growth rates is in line with the trends recorded since early 2015.

As a comparison, annual house price growth stood at 3.9% in October 2015.

Gardner comments: “After 15 successive monthly increases, UK house prices were unchanged in October (after taking account of seasonal factors).

“Measures of housing market activity remain fairly subdued, with the number of residential property transactions circa 10% below the levels recorded in the same period of 2015 in recent months.

“However, this weakness may still in part reflect the after-effects of the introduction of Stamp Duty on second homes introduced in April, where buyers brought forward transactions to avoid additional Stamp Duty liabilities. Policy changes impacting the buy-to-let market may also be playing a role in dampening activity.”

Jonathan Hopper, the Managing Director of Garrington Property Finders, insists that buyers now have the upper hand.

He explains: “Prices in the immediate aftermath of the referendum were flattered by an injection of pent-up demand, as buyers who had sat on the fence in the run-up to the referendum finally got off it.

“But with the impact of that temporary prop now fading, the buyers who remain frequently hold the whip hand – with many feeling empowered to ask for a substantial discount in return for the certainty of a sale.

“Yet pragmatism rather than panic prevails among sellers, which has so far prevented wholesale price cutting.”

He adds: “Prices are also being supported by a chronic shortage of supply in many areas, but the shift in the balance of power from seller to buyer is palpable.

“Reassured by rock bottom interest rates, a robust labour market, and an economy that continues to grow steadfastly, intent remains strong among domestic buyers.”

Does this news encourage you to push forward with a property purchase?

New Provisions Under Immigration Act for Landlords and Letting Agents

Published On: November 3, 2016 at 9:37 am

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Earlier this week, the Home Office announced new provisions under the Immigration Act 2016 for landlords and letting agents.

Failure to comply with the Right to Rent scheme will become a criminal offence for landlords and letting agents on 1st December 2016.

The Home Office explained that the new criminal offences have been created to deal with rogue landlords and letting agents that knowingly, or with reasonable cause to believe, let to illegal migrants.

Under the new provisions, it will also be easier to evict illegal migrant tenants.

New Provisions Under Immigration Act for Landlords and Letting Agents

New Provisions Under Immigration Act for Landlords and Letting Agents

The Right to Rent scheme was first implemented in parts of the West Midlands on 1st October 2014, before being expanded across the rest of England from 1st February 2016. The Home Office claims that it will be extended to the rest of the UK in “due course”.

Under the civil penalties currently in place, landlords or letting agents that fail to make the relevant immigration checks are liable for a fine of up to £3,000 per illegal migrant tenant.

At present, if a landlord finds that an existing tenant is an illegal migrant, they cannot evict them from the property.

The new provisions will enable landlords to evict illegal migrant tenants more easily, and in some circumstances, without a court order. Landlords will obtain a notice issued by the Home Office, which confirms that the tenant is disqualified from renting in the UK as a result of their immigration status. On receipt of this, the landlord will be expected to take action to ensure that the illegal migrant leaves the property.

The Government has also introduced four new criminal offences to target rogue landlords and letting agents that exploit migrants and consistently flout the law by failing to conduct Right to Rent checks, or failing to take steps to remove illegal migrants from their property.

These landlords or agents may face a fine, up to five years’ imprisonment, both, or a fine and imprisonment and further sanctions under the Proceeds of Crime Act.

However, the Act also offers a defence against the offences for landlords who have taken reasonable steps within a reasonable timeframe in seeking to terminate a tenancy involving an illegal migrant.

The Immigration Minister, James Brokenshire, comments on the new provisions: “We are clear that illegal immigrants should not be able to access or remain in private rented accommodation, preventing lawful residents from finding a home.

“We know the vast majority of landlords are diligent in their responsibilities when it comes to their tenants, and we want to help them to be able to evict illegal immigrants more easily.

“But unscrupulous landlords and agents who exploit migrants and who repeatedly fail to carry out Right to Rent checks or fail to take steps to remove illegal immigrants from their property will find they could now face going to jail.”

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, also responds to the announcement: “We are pleased to have a date for implementation; this goes some way towards addressing the issues revealed by Right to Rent checks since their implementation earlier in the year. If these measures prove to be effective in tackling rogue landlords who offer overcrowded and poor quality housing, it will be positive.

“Letting agents need to remember the new rules mean if they do flout the law, their company will be liable to pay a £3,000 civil penalty per occupier who is an illegal over-stayer, and they may be personally liable to an unlimited fine, as well as the potential of up to five years in prison.”

The Government’s factsheet can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/537218/Immigration_Act_-_Part_2_-_Residential_Tenancies.pdf