Posts with tag: ARLA

Rental market stays stable post Brexit

Published On: July 26, 2016 at 8:46 am

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The latest report from the Association of Residential Letting Agents has suggested that the rental market has stayed relatively stable following last month’s Brexit vote.

Referendum reality

In the aftermath of the decision to leave the European Union, there has been very little movement in terms of rental costs.

12% of letting agents reported a fall in rent, while 77% saw no change.

Prior to the vote, 19% of agents suggested that rents would increase, with 20% expecting them to drop. 61% thought that they would stay the same.

Supply of available properties and housing demand has also stayed fairly constant since the referendum. 67% of ARLA members have reported no change to supply, with 64% saying that there has been no change in the number of tenants looking to secure a rental property.

This said, 45% of letting agents have seen uncertainty from landlords looking to let, which could cause problems in the coming months.

Calm

David Cox, managing director of the Association of Residential Letting Agents, noted, ‘the rental market has responded to Brexit in a calm fashion, with no immediate fallout amid extreme political and economic uncertainty. What we need is some certainty from the new Government that housing remains a priority with the rental market playing a central role. For example, we want to avoid a situation where institutional investors start pulling away from the market, because ultimately this will impact tenants by squeezing supply further and pushing up rents.’[1]

‘Although we’ve seen some hesitation from landlords this is relatively mild and it’s importantly they do not act in haste. Any inevitable longer-term changes will then be taken on board with greater ease,’ he continued.[1]

Rental market stays stable post Brexit

Rental market stays stable post Brexit

Monthly rises

On a month on month basis, demand for rental accommodation was up during June. In addition, the supply of properties managed on agents’ books also rose. There were 37 would-be tenants on average registered per ARLA branch in June, up from the 33 recorded on average in May.

The supply of rental properties increased by 3% in June, from 171 in May to 176.

Cox concluded by stating, ‘if one thing is clear following Brexit, it’s that supply and demand remains a real issue in the rental market. If supply continues to dwindle against growing demand, no matter what the eventual implications of Brexit are, renting will become more difficult and expensive for tenants.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rental-market-survives-storm-brexit.html

ARLA receives clarification on extra occupants

Published On: February 11, 2016 at 2:18 pm

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ARLA has finally received clarification from the Government relating to specific features of the Right To Rent scheme.

The firm has obtained guidance on existing tenancies where an additional occupier joins a longer-standing and named tenant.

Statement

In a statement on ARLA’s website, it says that the point of beginning in determining agents’ or landlords’ responsibilities is the Immigration Act 2014 and the official Code of Practice.

Here, it reads that a landlord is not permitted to take any action relating to residential tenancy agreements entered into before 1st February 2016. Also, a landlord is also not required to take action should the tenancy agreement be renewed following that date if the agreement will be between the same parties and there has been no break in their right to live in the premises.

ARLA has questioned the Government over what happens when a renewal has one new occupier in addition to a longer-standing tenant. The firm queried whether an agent has to conduct checks on all existing occupiers or just the new tenant.

ARLA receives clarification on extra occupants

ARLA receives clarification on extra occupants

Response

Communicating the response, ARLA said, ‘The Home Office response to this is that if a different occupier is named on the tenancy agreement then it is a new tenancy in terms of the scheme and a Right To Rent check should be made of all occupiers subject to the scheme.’[1]

The association also says that there is new ID Guidance, provided by the Home Office. ARLA advises agents who have copies of the ID Guidance printed before the 2nd February 2015 to check against the guidance currently on the site.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/right-to-rent-arla-gets-clarification-on-extra-occupiers-and-id-guidance

Seasonal lull in BTL ahead of expected surge

Published On: January 25, 2016 at 11:46 am

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A typical, seasonal lull occurred in the rental market during the last month, with the supply of properties falling alongside demand.

These were the findings of the latest report by ARLA, whose agents registered an average of 29 prospective new tenants in December. This was down on the 34 recorded in November, a fall of 15%.

Supply also dipped in the last month, with an average of 182 properties managed per branch, as opposed to 189 in the previous month. Potential renters in the capital however were not spoilt for choice, with an average of only 108 properties managed per branch, 43 less than the overall national average.

Rent relief

In addition to falling supply and demand, rents also slid in December, with the number of tenants experiencing rental increases dropping. Just 18% of ARLA letting agents reported an increase in rents, a drop of 5% since November. Additionally, this was the lowest total recorded in the whole of 2015.

‘As we’d expect in December, the UK saw a lull in activity, with people putting off any moves until January,’ noted David Cox, ARLA managing director. ‘It’s reassuring to see the number of agents reporting rent increases is still on the decline-some encouraging news for tenants as we start 2016’.[1]

A change is coming

Unsurprisingly, the views of ARLA members on the upcoming tax hikes mirror those of the wider sector. 62% believe that the changes will push up rents, while 65% believe the alterations will lead to some landlords leaving the sector, thus lowering supply still further.

The upcoming changes in legislation seem to be having an immediate impact on investors, with ARLA agents recording a 24% increase in investors looking to purchase before the changes come into play in April.

‘With supply, demand and the number of agents reporting rent increases all declining in December, this could well be the calm before the buy-to-let storm,’ Cox continued. ‘Buy-to-let landlords determined to complete purchases before the changes come into force in April are storming the UK housing market, meaning the lull we’d usually see is less significant.’[1]

Seasonal lull in BTL ahead of expected surge

Seasonal lull in BTL ahead of expected surge

‘Subsequently, after April, we’re very likely to see the number of buy-to-let properties on the market begin to decrease and this will most certainly have a detrimental effect on renters across the country,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/is-this-the-calm-before-the-buy-to-let-storm.html

 

 

Liverpool City Council Partners with ARLA, NALS and the RLA

Published On: January 13, 2016 at 12:50 pm

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Liverpool City Council has partnered with the Association of Residential Letting Agents (ARLA), the National Approved Letting Scheme (NALS) and the Residential Landlords Association (RLA) for its landlord licensing scheme.

Last year, the council introduced the country’s first city-wide licensing scheme for rental properties. However, its costs have been criticised for being too high.

As councils are not allowed make profits from licensing schemes, many have questioned why Liverpool’s scheme is so expensive.

The new agreement with the three industry organisations means that landlords belonging to any of these groups will receive a 50% discount on licensing fees, taking the charge to £200 per property, rather than the standard rate of £400 for the first property and £350 for each subsequent home.

Liverpool City Council Partners with ARLA, NALS and the RLA

Liverpool City Council Partners with ARLA, NALS and the RLA

Councillor Frank Hont, Cabinet Member for Housing at Liverpool City Council, explains the need for the partnerships: “When we launched the scheme, we were clear that we wanted to work with the private rented sector to help them comply with the scheme and find ways of giving discounts to those that are committed to meeting the standards.

“I am delighted that ARLA, NALS and the RLA have all come on board. It is a win-win for everyone, because their members benefit from a reduced fee and we are able to target our resources at those landlords who we know aren’t meeting the standards.

“This is all part of our drive to improve the quality of housing in the city and make sure that our residents have access to good quality accommodation.”1 

The Managing Director of ARLA, David Cox, comments on the agreement: “We are really pleased to become a co-regulator for the Liverpool selective licensing scheme.

“We are glad Liverpool City Council has seen the importance of distinguishing between the professional market and those who the scheme is designed to remove from Liverpool’s rental market.

“ARLA welcomes this initiative and hopefully, by giving landlords who use our members a 50% discount on licensing fees, it will encourage more landlords to use licensed letting agents.”1

Isobel Thomson, the Chief Executive of NALS, adds: “We are delighted to be part of a co-regulatory partnership with Liverpool City Council for their selective licensing scheme. We welcome the recognition they have given to NALS agents and the strict criteria they meet in relation to customer service and consumer protection.

“By offering a discounted licensing fee for those agents who come under a co-regulatory partnership, it is a clear indicator to landlords of which agents they should be using.”1 

And the Chief Executive of the RLA, Andrew Goodacre, also says: “The RLA is the only landlord association approved to offer a co-regulation alternative to those landlords in Liverpool who wish to continue to manage their portfolio themselves.

“There are a growing number of landlords who are choosing to manage their properties directly, and our scheme is an ideal vehicle for self-regulation whilst still providing significant savings on the license fees.”1

Around 8,500 landlords, owning about 39,500 properties, have already started the application process, which came into effect in April last year.

The council has also begun issuing the first set of licenses.

1 http://www.propertyindustryeye.com/liverpool-city-slashes-licensing-costs-for-members-of-arla-nals-and-rla/

 

ARLA believes rents will rise in 2016

Published On: December 29, 2015 at 1:09 pm

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The Association of Residential Letting Agents (ARLA) has issued a warning that rents will rise early in the New Year, with the vast number of rule changes affecting landlords the catalyst.

David Cox, MD of ARLA, said that the vast changes in legislation coming into force next year will see increased compliance costs for landlords and push rents up as a result.

Re-think

Cox said that ARLA wishes the Government to, ‘re-think its proposals around reducing mortgage interest relief, scrapping the wear and tear allowance and hiking up stamp duty by 3% on buy-to-let properties.’ He says that, ‘whilst these remain, the Government’s goal of increasing the percentage of people in home ownership is getting further out of reach.’[1]

‘The issue of supply and demand in the rental market will be increasingly pushed to its limit with rising demand outstripping supply,’ he continued.[1]

ARLA believes rents will rise in 2016

ARLA believes rents will rise in 2016

Tightening

However, ARLA believes that it is good news that regulation in the industry will be getting tighter in the coming year. The trade body also said that it is confident that the provisions outlined within the Housing and Planning Bill will give courts more powers in combating rogue landlords and letting agents.

Mr Cox went on to say, ‘the Right to Rent checks introduced in the Immigration Act 2014 will be rolled out nationally from 1 February 2016 following a successful pilot scheme in the West Midlands. However, we worry that the goodwill established towards the scheme may be tested by the increase in volume, disenfranchising landlords from the process.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/12/arla-rents-will-increase-in-2016

 

 

ARLA want smoke alarm regulations delayed

Published On: September 18, 2015 at 10:45 am

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The Association of Residential Letting Agents has become the latest organisation to raise concerns over the upcoming Carbon Monoxide Alarm Regulations.

Passed officially by Parliament, the regulations come into effect on the 1st October. However, ARLA believes that this simply isn’t enough time for landlords and letting agents to fully comply with the regulations.

Concern

‘Whilst ARLA is entirely supportive of the aims of the regulations, we remain concerned that the Government has ignored calls from across the private rented sector to reconsider the timeframe for its implementation,’ said ARLA managing director David Cox.[1]

‘Following final scrutiny of the measures yesterday in the House of Lords, landlords have until the 1st October 2015 to ensure that all tenancies have a smoke alarm fitted on every floor of their property where there is a room used wholly or partly as living accommodation. They will also be required to put a carbon monoxide alarm in any room where a solid fuel is burnt.[1]’

Cox acknowledges that these measures are completely sensible, but said that, ‘ARLA is concerned that landlords will not have enough time to comply with the requirements, as it is simply impracticable for letting agents, who may manage a huge amount of properties, to gain access to the properties and to install these alarms on behalf of their clients in the time frame allotted.’[1]

ARLA want smoke alarm regulations delayed

ARLA want smoke alarm regulations delayed

Issues

ARLA has written to the Government to outline its concerns. Cox said that the organisation believes, ‘all existing tenancies should be allowed to have until 1st January 2016 to comply.’ He went on to say that, ‘we were encouraged to see that Lord Marlesford showed support for our proposals in Parliament and again put our suggestion to the Government.’[1]

‘However, despite our efforts it appears that the Government will now go ahead and implement the new requirements as planned. We urge our members to ensure that they do all they can to ensure that their properties comply with the new regulations before the measures come into effect,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/arla-calls-for-smoke-alarm-rule-to-be-delayed