Posts with tag: landlords

Buy-to-let expert calls for sector reforms

Published On: May 10, 2017 at 9:20 am

Tags: landlords,private rental sector,rental market,rents,tenants

A leading buy-to-let property expert has called for better enforcement and streamlining of legislation within the private rental sector.

Kate Faulkner wants to see the abolishment of what she calls a ‘two-tier’ rental market, where thousands of renters are forced to settle for, ‘sub-standard, illegal or even dangerous homes.’

Reforms

Faulkner, founder of PropertyChecklists.co.uk, is urging major reforms in the sector, in a report commissioned by the TDS Charitable Foundation.

In this report, Faulkner argues that there are a number of rules and regulations in the sector that are serving only to create confusion among landlords, agents, tenants and enforcement bodies alike.

It is suggested that a typical private landlord in England now has to comply with around 150 rules and regulations. This figure increases should the landlord wish to rent out their property to someone on benefits.

‘There are 4.4 million rental properties in England alone so reforming the market would help millions of people. Legislation should be streamlined and funding should be put in place to support enforcement,’[1] Faulkner noted.

‘Legislation varies dramatically across the UK, with different rules for England, Scotland, Wales and Northern Ireland. Landlords are typically over 55, and employed full-time, so often struggle to keep up with what constantly changing legislation they need to be aware of, and what bodies are responsible for enforcing them. Trading Standards, the Home Office, the Competition and Markets Authority, and local councils all enforce elements of private rental policy, and there is no single point of guidance for landlords and agencies to make sense of where jurisdictions begin and end,’ she continued.[1]

Buy-to-let expert calls for sector reforms

Geographical Disparities

In addition, Faulkner highlights the fact that there are substantial geographical differences from county to county.

London sees a massive difference in the number of rogue landlord prosecutions. The most recent figures indicate that Newham prosecuted 359 rogues, whereas Lambeth and Hammersmith had only 9 each.

However, Faulkner claims that local councils are not always to blame:

‘The issue needs to be tackled on a national level to ensure uniformity in enforcing laws designed to protect both tenants and landlords. Law-abiding agents and landlords are jumping through not inconsiderable hoops, and forking out to meet regulations, while the cowboys know enforcement is lax, and are cutting corners and costs.’[1]

Concluding, Faulkner said: ‘We need a coordinated national strategy on weeding out unenforceable, unclear, and confusing rules, and creating national standards, and enforcement policy. Whoever forms the next government must commit to backing an education campaign for those letting out property to inform them of the law, and how to raise complaints or issues.’[1]

‘By tightening up on implementing legislation, tenants will know what to expect, and how to bring rogue landlords to heel. By tackling the causes of the current two-tiered rental market, the quality of the UK’s rental stock will increase, providing better homes for tenants, and better standards for landlords and agents.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/reform-the-private-rented-sector-so-that-it-is-fit-for-purpose-says-expert

New legal helpline for landlords launches

Published On: May 9, 2017 at 9:13 am

Author: Em Morley

Categories: Landlord News

Tags: advice for landlords,landlords,legal helpline,tenants

A new telephone service aimed at helping landlords to resolve issues efficiently and economically has been launched by a legal firm in London.

Property+Plus is a dedicated subscription based helpline providing legal advice for landlords and property owners. It aims to give up-to-date information on legal rights and statutory obligations regarding property, landlord and tenancy issues.

The helpline has been introduced by Romain Coleman Solicitors.

New legal helpline for landlords launches

Helping Hand

Chris Baldwin, partner and head of property at Romain Coleman, observed: ‘This [new helpline] is part of our continuing drive to give our property clients – whether landlords, homeowners or homebuyers – an extra helping hand with innovative support services.’[1]

‘Property+Plus can help landlords resolve property issues with minimal cost or fuss. From covenants in leases and repairing obligations to licensing law and tenancy disputes, we are looking to provide them with greater control over their property interests,’ Baldwin continued.[1]

Concluding, Baldwin said: ‘The helpline gives them rapid access to legal advice on a range of different property matters. They benefit from an experienced team of legal specialists who can help them protect their property interests with valuable insight and advice. They will be given either an immediate answer or a recommendation on which legal course of action to pursue.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/new-legal-helpline-launched-for-landlords

Demand for property in Scotland stays strong

Published On: May 8, 2017 at 11:52 am

Author: Em Morley

Categories: Property News

Tags: landlords,property prices in Scotland,Scotland,Scottish landlords

New figures from a leading property consultancy in Scotland have further underlined the fact that demand for property in the country is strong.

The Registers of Scotland report for January-March 2017 shows that the volume of residential property sales north of the border rose by 3.4%. In addition, the total value of sales across Scotland increased by 5.5% in comparison to the same quarter in 2016.

Sales

Traditionally, the winter months are a less favourable period in which to sell property. However, the increase in sales reported by Registers of Scotland indicates that buyer demand stayed fairly constant in the opening quarter of the year.

Another report from CKD Galbraith underlines this trend, with residential property sales up by 7% over the last quarter, compared to 2016. This equates to £47m of property sales being handled by the firm during the period.

Over the same timeframe, the firm recorded a 57% increase in property viewings and a 49% rise in applicant registrations. Demand continues to outstrip the demand of properties coming onto the market.

Demand for property in Scotland stays strong

Benefits

Simon Brown, partner and head of residential sales at CKD Galbraith, noted: ‘Our figures mirror the last Registers of Scotland report and reflect the fact that sellers now reap the benefits of a twelve month market. Looking ahead over the next quarter we expect to see a number of changes to the Scottish property market.’[1]

‘As is typically the case in general election years, we anticipate that the uncertainty caused may well slow the property market down in the weeks leading up to 8th June. The market will, we believe, pick up again and continue growing once the dust has settled,’ Mr Brown added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/5/strong-demand-for-property-in-scotland

Property price growth remains stagnant

Published On: May 8, 2017 at 9:23 am

Author: Em Morley

Categories: Property News

Tags: Halifax,house prices,landlords,property prices

The most recent analysis released by the Halifax has indicated that property prices in the UK rose by 3.8% in the three months to April. This is unchanged from March, remaining the lowest annual rate since May 2013.

In addition, the report shows that house prices during the period were 0.2% down on the previous three months-the first quarterly fall since November 2012.

Stagnant

Martin Ellis, Housing Economist at the Halifax, observed: ‘House prices have stagnated over the past three months. Overall, prices in the three months to April were marginally lower than in the preceding three months; the first quarterly decline since November 2012. The annual rate of growth remained at 3.8% in April, the lowest rate since May 2013.’[1]

‘Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16. Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes. A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months,’ he continued.[1]

Adjustment

Russell Quirk, founder and CEO of eMoov.co.uk, noted: ‘Another slight decline in the rate of house price growth on a monthly basis would suggest that the UK market has begun to naturally adjust after a long period of sustained inflation.’[1]

‘We’ve seen an abundance of buyer demand and a lack of sufficient stock heat the market and it would seem that it is finally beginning to level out. This slow may also be due to a number of other influential factors such as the uncertain political landscape and, it will be interesting to see if the market bounces back over the coming months. That said, sellers are still seeing the price of their property increase annually and this slow in price growth will no doubt be welcomed by those on the other side of the fence, who are struggling to get on the ladder.’[1]

Property price growth remains stagnant

Encouragement

Jeremy Leaf, former residential chairman at RICS, acknowledged: ‘Low mortgage rates and a shortage of property haven’t been enough to support prices.’ However, he went on to say he is, ‘encouraged that the annual level is still above where it was this time last year, bearing in mind the huge increase in demand ahead of the introduction of the 3% stamp duty surcharge last April.’[1]

Concluding, Mr Leaf said: ‘Looking forward, we are finding the market to be relatively balanced between supply and demand and still expect those people who recognise current market conditions to take advantage. The market does seem to be finding a new, slightly lower, level and we are certainly seeing no signs of a more substantial fall.’[1]

[1] http://www.propertyreporter.co.uk/property/house-price-growth-stagnates-at-four-year-low.html

Rents in London fall for first time since 2009

Published On: May 8, 2017 at 8:38 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,London,London rents,rents

The most recent report from Homelet has revealed that rents in London fell for the first time since 2009 during April. This was a direct result of rental price inflation across the UK sliding to its lowest level for more than seven years.

Capital Falls

Homelet’s report found that rents in the capital were down by 1.2% in April, in comparison to the same period in 2016. This is the first time typical rents have fallen year-on-year since December 2009.

This decline in London, alongside marginal decline across the wider South-East region, drove rental price inflation down across the country as a whole.

Rents for new tenancies in Britain during April were 0.4% greater than in the same month in 2016- the lowest figure since February 2010.

This rental price inflation means that tenants signing for a new tenancy over the last month paid an average rent of £904 per month across the UK. When the greater London region is removed from the analysis, the average rent agreed falls to £754.

Rents in London fall for first time since 2009

Inflation

In addition, the data showed that areas of the country where rents are rising more quickly are those that saw less profound rental price inflation during the first six months of 2016.

Wales for example saw rents 2.2% greater in April compared to the same month last year.

Martin Totty, Chief Executive Officer at HomeLet, observed: ‘Rents have been rising at a more modest pace across the whole of the UK in recent months, with lower levels of rental price inflation and even falling rents in areas of the country where prices were previously rising most quickly. We continue to see landlords’ and letting agents weighing tenant affordability considerations very seriously.’[1]

[1] http://www.propertyreporter.co.uk/landlords/london-rents-are-falling-down.html

Rogue landlord fined over £5k for fire safety negligence

Published On: May 5, 2017 at 8:47 am

Author: Em Morley

Categories: Landlord News

Tags: fire safety,HMO's,landlords,rogue landlord

A rogue landlord with a property in St Helens has been fined over £5,000 after inspectors from the local council found serious fire safety issues within his rental property.

Darshan Sidhu, of Walsall, was fined after fire escapes in his rental property were found either to be obstructed or not of a high-enough standard.

Unsafe

St Helens Council took action in order to prevent potential tenants from living in unsafe conditions, following Mr Sidhu’s failure to comply with an improvement notice.

The judge at Liverpool, Knowsley and St Helens Magistrates’ Court described the living conditions for tenants as, ‘miserable.’

Mr Sidhu pleaded guilty by post for failing to comply with HMO regulations. The judge also noted that this was a commercial enterprise and that Mr Sidhu would have made a substantial profit on his HMO.

This case was categorised as one of high culpability, as a result of the commercial profit gained. It was also classed as high risk, given the substantial difficulty that tenants would have had leaving a property in the event of a fire.

Rogue landlord fined over £5k for fire safety negligence

Punishments

As a result of his negligence, Sidhu was ordered to pay a total of £5,032, including a fine, costs and a victim surcharge.

Talking on the outcome, St Helens Council’s strategic director of people services, Mike Wyatt noted: ‘The majority of St Helens landlords are responsible and provide good quality and safe accommodation.’[1]

“Unfortunately, as in this case, not all landlords follow their example and the accommodation they provide is extremely poor and hazardous to the health and wellbeing of tenants.’[1]

Concluding, Mr Wyatt said: ‘The council enforces the law to make sure tenant’s health and safety welfare is protected, and will take formal action against landlords who don’t comply.I would encourage landlords to contact the council to seek any advice and ensure compliance with legal requirements.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/andlord-fined-over-5k-for-exposing-tenants-to-miserable-living-conditions