Posts with tag: tenants

Landlord fined for not following correct eviction procedure

Published On: January 14, 2016 at 12:01 pm

Tags: Buy-to-Let,evictions,landlord,rogue landlords,tenants

A Birmingham landlord is counting the cost of his errors, having been ordered to pay substantial costs for illegally evicting a family of nine.

Mr Mirsad Solakovic, 37, of Sparkbrook in the city, was fined £700 and told to pay £1,500 following his rogue dealings.

Unlawful

Solakovic was found guilty of unlawfully evicting the family from a home in Bordesley Green, which was a contravention of Section 1(2) of The Protection from Eviction Act 1977.

The landlord asked his tenants to leave but did not serve them with the appropriate notice. As a result, Birmingham City Council wrote to the agent managing the property, outlining the correct legal procedure to be followed in order to successfully gain possession.

Subsequently, the agent served a new notice giving the tenants two months notice to leave the property. However, Mr Solakovic decided to ignore this and changed the locks to the home.

One of the family members returned home to find he was unable to access the home and immediately called the police. Despite this, Solakovic did not allow the family to return, only allowing one tenant to retrieve a few personal belongings.

Landlord fined for not following correct eviction procedure

Processes

Councillor John Cotton, Birmingham City Council’s cabinet member for neighbourhood management and homes, reminded landlords and agents that there are legislations that must be adhered to when looking to evict tenants. Cotton noted, ‘when relationships break down between tenants and landlords there are strict legal processes that have to be followed and council officers are here to help both sides move forward.’[1]

‘In this case, Mr Solakovic took the law into his own hands and unlawfully evicted a family. Today’s prosecution sends out a clear message that we will not tolerate this behavior and will pursue those landlords who operate outside the law,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/1/birmingham-landlord-fined-2-200-for-illegal-eviction

Energy efficiency compliance deadlines revealed

Published On: January 13, 2016 at 2:18 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,energy efficiency,landlords,rental market,tenants

The Government has recently announced new information for landlords regarding energy efficiency compliance in rental accommodation.

Previously, it was announced that by April 2018, it would become a criminal offence to let out a property with an F or G property rating at the beginning of a new tenancy agreement.

Deadlines

Now, the Residential Landlords’ Association has said the Government has issued new dates for the next energy bands. These are as follows:

April 2020-the minimum requirement of an E or above rated property will apply to both new and existing lets
2025- Properties will need to be brought up to an energy efficiency of D or above
2030-Minimum target of all rental properties to be at least a C energy efficiency rating

Concern

However, the RLA has expressed concern over the accuracy of EPC’s. Richard Jones, policy advisor and company secretary of the RLA, noted that, ‘the Building Research Establishment estimates that around 100,000 properties have an incorrect F and G rating so these ratings should be better than they are.’[1]

Energy efficiency compliance deadlines revealed

‘This means some of those currently rated at the lowest banding Band G ought to be reclassified as Band F and quite a number of those that are in Band F do in fact meet the Band E requirement,’ he continued. ‘We are making repeated representations to the Government on this issue because we firmly believe that EPC’s must be accurate before compulsion is brought in.’[1]

In addition, Jones believes landlords and agents acting on their behalf are permitted to work out the best way to adhere to these newly announced deadlines.

‘If you carry out improvements piece by piece, going first to Band E and then subsequently Band D and then onto Band C a different approach is required than if you carry out a whole house improvement to go straight to Band C from the outset,’ he concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/1/new-deadlines-revealed-for-lettings-sector-energy-efficiency-compliance

London rent growth stalls in final quarter of 2015

Published On: January 12, 2016 at 2:13 pm

Author: Em Morley

Categories: Property News

Tags: landlords,London,rents,tenants

Rents have finally begun to slow slightly in London, following two quarters of sustained growth. However, experts have forecasted that this fall could only be a temporary one.

Capital rents

Many parts of central London saw rents stay fairly constant, or experience increases of less than two percent. These statistics marry with market conditions across the majority of east and south London, which also experienced rental growth slips after a prolonged period of growth.

One notable exception is the Covent Garden area of the city, where rental growth is rising as the area becomes a more established residential location. Another is the up and coming trendier area of Hackney, where young professionals are continuing to relocate.

On the other hand, parts of north London saw price falls similar to those in the previous quarter. Issues on the Northern Line and the closure of the interchange at Tottenham Court Road have moved to deter many potential commuters.

London rent growth stalls in final quarter of 2015

Future falls?

‘Successive budget announcements have seen many landlords’ tax advantages disappear while regulations increase,’ said Marc von Grundherr, Lettings Director of Benham & Reeves Residential Lettings. ‘With stamp duty attracting an extra three percent from April, we anticipate supply will fall as amateur landlords exit the market or seek out other asset classes.’[1]

‘When supply falls, rents will invariably go up. This will be the last chance for many tenants to move into a nice apartment while rents are plateauing and there is a choice of properties. Once Osborne’s measures really start to be felt, the market will change,’ von Grundherr went on to forecast.[1]

[1] http://www.propertyreporter.co.uk/landlords/rents-plateau-after-two-quarters-of-growth.html

Councils tell tenants to stay put until legally evicted

Published On: January 11, 2016 at 4:05 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,councils,landlords,rents,Section 21,tenants

An extraordinary move from councils across Britain is seeing many calling on tenants to stay put in buy-to-let property when asked to leave by their landlord.

This in turn has left many law-abiding landlords hundreds of pounds out of pocket after paying legal costs.

Remarkable

Councils are said to be using this tactic as the latest attempt to deal with Britain’s housing shortage.

Remarkably, some owners returning to their properties after living abroad are being faced with tenants refusing to move until they are legally evicted.

The eviction process takes around four months on average and is extremely costly for landlords. Experts believe the ‘sit-in’ problem is more acutely found in London and Birmingham, where demand for rental homes far outweighs supply.

David Lawrenson of LettingFocus.com, described the councils’ plan as, ‘stupid,’ before adding that, ‘it doesn’t encourage landlords to take on people who are financially vulnerable.’[1]

Worsening

Landlords having to deal with tenants staying put in their homes has gradually got worse as Britain’s house shortage continues to escalate. According to Rightmove, almost five people compete for every property available to let across the country. This figure rises to one in nine for rental property in the capital, as Rightmove says demand is at an, ‘all time high.’[1]

A rise in population and immigration has not been matched by the country’s housing stock. As a result, rents have spiralled.

For many, particularly in the South, suitable properties are unaffordable and would-be buyers are turning to local authorities for assistance. Those that have approached councils are being told that they cannot get help unless they are homeless and are being advised to stay put in rental accommodation until they are legally forced out.

Waiting game

Alan Ward, Chairman of the Residential Landlords Association, said it is a standard procedure for tenants to be told to stay put, providing there was no other homes in the area that they could afford. Ward said that tenants needed to wait until they were evicted before looking for a council property.

Councils tell tenants to stay put until legally evicted

Mr Ward said that the problem is, ‘becoming acute in some areas, not necessarily because there are fewer homes due to landlords exiting the market, but because there are more people seeking them. It partly comes back to immigration, as there are lots of people coming to this country and they typically want to rent properties.’[1]

‘The council only gets involved when a tenant is looking for social housing. Tenants are told they cannot be rehoused until the bailiffs are at the door,’ he added.[1]

Section 21

Landlords faced with tenants who will not vacate their property need to serve a Section 21 notice. Should the fixed term in the contract have already ended, this gives the tenant two months to find a new property.

If the tenant is unable to find a new home after two months, the landlord can apply for an eviction in court. Following this, it can take between six and eight weeks for the judge to grant a possession order.

[1] http://www.telegraph.co.uk/news/uknews/12092051/Councils-responding-to-Britains-housing-crisis-by-telling-tenants-to-stay-put-in-buy-to-let-properties-when-landlords-ask-them-to-leave.html

Renting in London – Only a Few Places are Still Affordable

Published On: January 10, 2016 at 2:50 pm

Author: Em Morley

Categories: Finance News

Tags: London,London rental market,rental market,rental properties,tenants

Recent research has found that rent prices in London are the most expensive of any city in the world, at an average of £2,083 per month, after rising by 4% last year alone.

And while renting in the capital may seem impossible for some people, the huge gap between prices across London means that there is still hope for many prospective tenants.

Property investment firm CBRE found that Bexley is the most affordable London borough in which to rent, after examining 32 cities across the world. The average rental property in Bexley now costs around £1,007 per month.

Bexley, Havering, and Barking and Dagenham – all in the southeast of the capital – were named as the most affordable boroughs in London, with the average rent across the three areas more than £2,000 a month cheaper than in the most expensive borough.

Most affordable London boroughs for renters

Position	Borough	Rent per month
1	Bexley	£1,007
2	Havering	£1,083
3	Barking and Dagenham	£1,162
4	Sutton	£1,166
5	Bromley	£1,271
6	Enfield	£1,285
7	Redbridge	£1,293
8	Croydon	£1,309
9	Waltham Forest	£1,309
10	Hillingdon	£1,311

The three most expensive boroughs for tenants are Kensington and Chelsea, the City of Westminster and the City of London, all with average rents of around £3,000.

Most expensive London boroughs for renters

Position	Borough	Rent per month
1	Kensington and Chelsea	£3,405
2	City of Westminster	£3,062
3	City of London	£2,945
4	Camden	£2,615
5	Islington	£2,282
6	Hammersmith & Fulham	£2,168
7	Tower Hamlets	£2,163
8	Lambeth	£2,093
9	Hackney	£2,088
10	Wandsworth	£1,889

Although rent prices in Bexley are the cheapest in the capital, the borough has also experienced the fastest price growth over the past 12 months – rent there has risen by 10% in the last year, says CBRE.

Renting in London – Only a Few Places are Still Affordable

There is a huge demand for rental property in Bexley due to good transport links, parks and low prices. Online letting agent Rentify found that last year, it was the second most searched for borough in London.

Head of Residential Research at CBRE, Jennet Siebrits, says Bexley – which was also the cheapest borough in 2015 – has remained affordable because of its location.

She explains: “It is a great place to live, but in outer London and therefore priced accordingly, it’s typically a family location, so hasn’t been a huge rental market. But its cheaper rents have attracted renters, hence the growth.”

Excluding London, rents around the UK sit at an average of £749 per month, after increasing by 3.5% over the year, according to the latest quarterly rental index from Homelet.

The firm reveals that the gap between rents in the capital and the rest of the UK is now the highest ever recorded.

Siebrits says the strength of the rental market reflects a sharp rise in the amount of tenants in London over the last ten years.

She says: “Renting is becoming ever more popular, with a significant increase in renters. This partly reflects affordability constraints – even before the financial crisis we were seeing an uptick, but it has magnified since the crisis – and subsequent credit constraints.”

She adds that the rise in immigration has led to more demand for rental accommodation: “London is arguably the global financial centre and attracts the top international conglomerate companies, which have workers who need temporary rental accommodation.

“At the other end, we attract Europeans who come here for employment opportunities, who also need accommodation and are not able to access the owner-occupation market.”¹

¹http://www.telegraph.co.uk/finance/property/12058428/Where-in-London-can-you-afford-to-rent-Theres-only-a-few-places-left.html

Flatsharing is answer to save cash-Rightmove

Published On: January 8, 2016 at 11:38 am

Author: Em Morley

Categories: Finance News

Tags: Buy-to-Let,flatsharing,rents,tenants

Save-to-buy renters can save up to £210 per month for a deposit by flatsharing, according to a new report by Rightmove.

Newcastle was found to be the city offering most value, with a two-bed flat just 11% more expensive than a one-bed.

Rises

Average asking rents were found to have increased in all regions during 2015. This was particularly felt in the East of England, where rental increases were higher than anywhere else in Britain. Rents here rose by 6.5%, compared to 0.5% in London.

Rightmove also hinted at a strong start to 2016, announcing that page views for both sellings and lettings increased by 22% over the Christmas period, in comparison to 2014. Renters in Bristol, Birmingham and Manchester were most likely to put down their mince pies to look at the site.

The traditional seasonal fall in quarter four couldn’t prevent all regions ending 2015 with an annual rise in rental costs. However, Rightmove believe that flatsharing is the answer to a number of tenants’ financial problems.

Cost-effective

In Newcastle, a typical one-bed flat sets a renter back £553 per month, with an average two-bed costing just £614. This indicates a possible saving of £246 per month, should a renter choose a two-bed with a housemate.

‘The potential saving of renting and sharing a two-bed rather than a one-bed flat is before factoring in reduced costs from splitting the bills,’ noted Sam Mitchell, Rightmove’s Head of Lettings. ‘It could be a good option for renters looking to save up for a deposit to buy or other financial commitment. The Government has various well-publicised initiatives to encourage the home-ownership that some tenants would love to achieve and while sharing can have its pitfalls it is a potentially lucrative solution.’[1]

Neighbouring Gateshead offers the second best value for a two-bed flat in comparison to a one-bed, with the difference being 11.3%. In Swindon, a two-bed flat is 16.9% more expensive, in Bracknell 18.7% and in Milton Keynes 20.5%.

Flatsharing is answer to save cash-Rightmove

Highs

Mitchell went on to say, ‘demand from tenants is at an all-time high and the amount of properties available to rent hasn’t been keeping pace. This has led to more people considering house sharing, a trend that is already very common in London and now growing in other areas. Rather than look at house shares or studios, tenants could team up with friends and look at bigger flats in some of these best value areas, they just need to make sure they’re aware of their legal obligations when signing a joint tenancy agreement. For those that want to buy but are struggling to save a deposit this could help speed up the savings process.’[1]

Concluding, Mitchell observed that, ‘after a 7.8% annual rise in London asking rents last year, a slowing of the rate of growth was due as more and more tenants found their affordability stretched. Outside of the capital last year rents rose by just 0.3%, so this year’s 3.8% could be a result of more professional renters moving into areas outside of London, to sought-after cities like Bristol and Birmingham. Looking ahead to 2016, it’s likely there will be an initial injection of supply onto the market as investors rush to complete purchases before the stamp duty change in April, so renters thinking about moving could find they have a better choice early in the year. From April onwards, we could see a restriction in supply which could feed through into even higher rents. [1]

[1] http://www.propertyreporter.co.uk/finance/sharing-a-2-bed-flat-could-save-%C3%A3%C2%A2200-claims-rightmove.html