Posts with tag: private rental sector

Rogue landlord fined £15,000 for HMO failings

Published On: March 13, 2017 at 10:40 am

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A rogue landlady has been fined £15,000 for failing to licence and manage a house in multiple occupation (HMO).

Sharon Jacobs was additionally told to pay costs of £3,456.52 alongside a victim surcharge of £170.

Complaints

A series of complaints were made by different tenants living in the property in Barnet, which led to council officers investigating.

Later, a warrant was issued in order to enter the building. Police and environmental health officers found five people in the property, alongside the landlady.

Barnet council’s licensing scheme for HMO’s states that higher-risk properties have to be licensed, sufficiently managed and meet minimum standards.

Alongside failing to license the property, officers also discovered numerous safety concerns. These included a mini-oven and freezer blocking the main fire escape routes and a partially-collapsed kitchen ceiling.

What’s more, there was a lack of adequate smoke alarms and incomplete fire doors to stop the spread of flames and smoke.

Rogue landlady fined £15,000 for HMO failings

Rogue landlady fined £15,000 for HMO failings

Enforcement

A council spokesman noted: ‘This landlady has knowingly avoided licensing her property and carrying out necessary works and I’m pleased to see our enforcement action has sent a strong message that this kind of behaviour is not acceptable’[1]

‘Enforcement officers are visiting properties across Barnet every day and HMO landlords found not to be licensed will have action taken against them,’ they added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/3/15-000-fine-for-failing-to-license-and-manage-hmo

Rent Prices Stall in London and the South East, Reports Countrywide

Published On: March 13, 2017 at 9:18 am

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The Lettings Index for February from Countrywide shows that rent prices in London and the South East have stalled, causing the average rent in Great Britain to record the first annual drop since November 2010.

Nationally, rent prices fell by 0.6% over the last 12 months, taking the average rent to £921 a month – £5 less than in February 2016.

Rent Prices Stall in London and the South East, Reports Countrywide

Rent Prices Stall in London and the South East, Reports Countrywide

However, rents are still £112 (14%) a month more expensive than in the previous peak of 2007.

The decline in the average national rent was driven by London and the South East, where the price of a new let dropped by 4.7% and 2.6% respectively. It has taken seven months for falls in these regions to take national rent price growth to -0%.

Apart from London and the South East, every other region continued to see rent prices rise, albeit at a slower rate than the previous month. Outside London, rents increased by 0.8% annually, but the rate of growth slowed in nine of the 11 regions in Great Britain.

The East and West Midlands were the only regions to record faster rent price growth in February than in January.

The slowdown in average rent price growth was driven by a decline in the number of tenants looking for a home, combined with higher numbers of homes available to let in London and the South East.

In Great Britain as a whole, there were 5% more tenants looking for a home than in the same time last year, while London (-3%) and the South East (-5%) both had fewer renters than last February.

There was more tenant demand in every other region of the country, with the greatest increases recorded in the East Midlands, the East of England and the North West.

The surge in the number of homes available to let following the rush to beat the Stamp Duty deadline last year is now starting to subside, reports Countrywide.

There were 10% more properties available to let in February 2017 than last year across the country, but the rate of growth has halved since January.

London, the South East, the South West and the East of England were the only regions to record double-digit growth in the number of homes available to let. This increased level of stock is likely to continue stalling growth in rent prices over the coming months, the agent believes.

The Research Director at Countrywide, Johnny Morris, comments: “Rents are growing in most of the country, but falls in London and the South East are dragging down the national growth rate. Recent falls in London and the South East are small in the context of growth in recent years. Rents are a third higher in London and the South East than in 2007.

“Early signs point towards 2017 being a rare year where rents rise faster in the north of the country than in the south. While rents are likely to track any increase in earnings, affordability in London and the South East remains stretched. That is likely to limit rental growth.”

Tenant demand increases for third straight month

Published On: March 9, 2017 at 12:29 pm

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The most recent report from the Residential Institute of Chartered Surveyors (RICS) reveals that new buyer enquires remained flat during February.

However, in the lettings market, tenant demand rose for the third consecutive month, with 15% more respondents to the RICS survey seeing an increase.

Increased Demand

However, this rise in demand is more modest than at the same period 12 months ago, when 29% respondents cited a rise.

New landlord instructions also fell, with a net balance of -10%. This is the slowest reading in over two years. This negative trend is likely to persist in the next couple of months, with changes to mortgage interest tax relief starting to take effect in April.

As a result, rental expectations remain positive, with 24% more people asked feeling good about the coming months. The survey reveals that respondents predict rents to rise by 2.7% in the next year.

During the next five years, this growth is expected to rise to 4.4% per year.

Tenant demand increases for third straight month

Tenant demand increases for third straight month

Challenges

Stephen Wasserman, Managing Director of West One Loans, noted: ‘The persistent supply vs. demand challenge plagues the property market, with landlords looking to capitalise on strong demand having to overcome sustained supply-side issues. The changes to buy-to-let taxation are likely encouraging some to put the brakes on their investments but, with many hungry renters, landlords shouldn’t walk away completely. Perseverance is likely to deliver results, and we’ve seen both in the BTL market and the linked bridging finance market a significant switch by professional landlords, to buying through limited companies and other methods to mitigate the tax changes.’[1]

‘The government and private sector are working to rectify the supply issue, but this will take time and there are opportunities for investors in the interim too. Indeed, at the end of last year we saw a significant recovery in the bridging loan market after stutters provoked by the summer’s economic storms. We anticipate this trend will continue as the housing supply is squeezed and investors are ever more likely to need quick and flexible financing options to enable them to move quickly and push deals across the line. The industry has to respond, there are opportunities out there and pace is key,’ Wasserman added.[1]

[1] http://www.propertyreporter.co.uk/property/tenant-demand-rises-for-third-consecutive-month.html

 

NALS calls for Budget to end confusion in the PRS

Published On: March 8, 2017 at 11:18 am

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With the industry bracing itself for today’s Budget, the National Approved Letting Scheme (NALS) has called for the Government to ‘end the confusion and uncertainty’ in the market.

The organisation has forwarded multiple suggestions that it believes will assist the Government to provide a Private Rental Sector that works for everyone.

Fees

The NALS feels that all services provided to tenants should be paid for by them and not the landlord. It feels that the proposed ban of on letting agents fees charged to tenants will only lead to a series of ‘inevitable consequences’ for consumers.

This include:

  • reduction in services
  • more self-managing landlords which will lower standards
  • rogue agents charging fees
  • increased closures of smaller letting agencies

As such, NALS has reaffirmed its call for a Competition and Markets Authority review into lettings fees. It also feels that all agents should be regulated.

NALS calls for Budget to end confusion in the PRS

NALS calls for Budget to end confusion in the PRS

Funding

What’s more, the NALS has urged the Government to provide more money to local authorities in order to fund more effective reinforcement and policing of the private rental sector.

A NALS statement said: ‘Increased legislation is meaningless if there are not sufficient means to check it is operating correctly.’[1]

‘Simply, we want to make the Private Rented Sector a better, fairer place for all. While the recent Government focus on the PRS and its importance is welcome, there has been no real action,’ said Isobel Thomson, chief executive of NALS.[1]

‘We believe there are some immediate key areas, which must be addressed if we are truly to help improve the sector. Industry is waiting, it’s time for Government to act now,’ she added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/3/budget-2017-nals-wants-a-prs-for-all

What Generation Rent Most Feels it’s Missing Out on

Published On: March 8, 2017 at 11:08 am

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It’s not exactly news that homeownership is at a record low. In fact, the private tenant population hit the highest level seen since 1961 last year. While renting may be a flexible and appealing option to some, generation rent still feels like it’s missing out on certain aspects of a comfortable home life.

Many tenants are struggling with escalating rents, while the situation is only expected to get worse as a result of the Government’s letting agent fee ban. And generation rent can forget saving for a deposit, what with the country’s rock bottom interest rates and unaffordable house prices.

Now this wouldn’t be as much of a problem if tenancies were more secure, rents were stable, and tenants could remain in their homes for as long as they want.

But, in the current system, generation rent feels denied to a whole range of experiences and choices. So what are these, and how can landlords help?

Decorating

With many landlords choosing to keep their properties neutral – to appeal to as wide a range of renters as possible – tenants feel that their homes don’t reflect them and are soulless. If tenants sign up for long-term contracts, it may be a good idea to allow them to paint certain rooms – you could even ask them to return the property to you in the same condition you let it to them, to avoid putting future tenants off.

Pets 

As lots of landlords try to avoid as much damage to their investments as possible, most will ban all pets as standard. But it’s important to remember that not all animals will cause significant damage. Simply asking your tenants if you can meet their pet before they move in and requiring a larger deposit will enable them to bring their cute companion to their new home and have some company.

What Generation Rent Most Feels it's Missing Out on

What Generation Rent Most Feels it’s Missing Out on

Adapting the property

When you buy your own home, you are left with pretty much free reign over what changes you can make. But generation rent doesn’t have the same freedom. Your tenants may feel like a loft conversion or open-plan kitchen/diner would work for them. It could be a great investment opportunity for you, as you may find that your tenants want to stay in the property longer, while future renters will be attracted to the space on offer.

Getting to know neighbours

Although your tenants may be happy where they live, they will likely feel that they can’t get too close to neighbours or as involved in the local community as they would like, as they don’t know when they’ll next have to move on. Longer-term tenancies will give them the stability they need to feel part of a secure neighbourhood for the foreseeable future.

Knowing where you’ll be in the future

Which leads on nicely to the next point. Although revenge evictions may now be illegal, they are still a threat to generation rent. Landlords may even just decide to issue notice to quit in order to seek higher rents from prospective tenants. Consider how valuable and reliable your tenants are to you before you simply decide to remove them from the property – your next tenants may not be so good.

Lifestyle choice

While it is vital that landlords or their letting agents conduct periodic inspections throughout a tenancy, renters may feel that they do not have the freedom or ability to relax in their homes if they are too frequent. When new tenants move into your property, aim to conduct periodic inspections every quarter, before moving to bi-yearly visits after sufficient evidence that your tenants are looking after the property.

Gardens

It is true that some tenants don’t take enough care of their gardens and leave them in a mess at the end of their tenancy, but some will want to get involved in gardening and plant some vegetables or flowers. While it is common for landlords to provide easy to maintain gardens, simply asking your tenants whether they would like to make some changes could actually increase the value of your property. But make sure they don’t do anything too extravagant – you want your future tenants to be able to maintain it!

Money

Owning your own home or investment properties allows you to enjoy accumulating equity on your assets. But tenants often feel that rent is lost money. Many won’t have the option to borrow on the back of their housing wealth, help their children buy their own homes or invest in more properties down the line. Although landlords alone cannot solve the housing crisis, it is important to keep your rents stable and secure the lives of your tenants where possible.

What are you doing to support generation rent?

Private Tenant Population Highest Since 1961

Published On: March 3, 2017 at 9:23 am

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Yesterday’s English Housing Survey revealed that the private tenant population in the country is now at the highest level since 1961.

Private Tenant Population Highest Since 1961

Private Tenant Population Highest Since 1961

The Headline Report, which can be found here, shows that the private tenant population in England now stands at 4.5m, including 1.6m families with dependant children and 1.5m households whose head is aged 45 or over.

According to the Department for Communities and Local Government (DCLG) Live Table 104 on Tenure in England, there were 4.377m private rental households in 1961. However, the tenure was larger at the start of the 20th Century.

Responding to the report that shows that the private tenant population has now hit 4.5m, the Director of tenant lobby group Generation Rent, Dan Wilson Craw, says: “Runaway house price inflation and the difficulty of saving a deposit have trapped millions in private rented housing – even more than in the day of slum landlords like Rachman in the early 1960s.

“Private tenants have few protections from landlords who want to raise the rent or evict them without a reason. People can’t enjoy a good quality of life with no certainty over their home – and it is especially difficult for the growing number of families and older people renting from private landlords.”

He adds: “The Government knows that the housing market is broken, but it is failing to do enough to fix it. Ministers need to expand their ambitions to build homes, while reforming the law to provide stability for the millions who will be unable to buy in the foreseeable future.”

In its Housing White Paper last month, the Government shifted its long-standing focus on homeownership to the private tenant population.

Some of the measures announced in the crucial document include longer-term tenancies for private renters. However, ARLA Propertymark believes that only a minority of tenants want longer-term tenancies.

What are you doing to help the private tenant population feel more secure in their homes?