Posts with tag: tenants

Private Tenants Denied Protection from Revenge Evictions, Generation Rent Insists

Published On: March 19, 2019 at 9:01 am

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Just one in 20 private tenants who complain to their local councils about poor conditions in their rental homes receives protection from revenge evictions, according to analysis of data from lobby group Generation Rent.

The statistics, obtained under the Freedom of Information Act, found that councils in England are failing to use the powers that they have to protect tenants. Even when a severe hazard, such as mould or broken stairs, is found in a rental property, tenants only get protection from eviction in one in five cases.

As a new law comes into force tomorrow (20th March 2019) that will enable tenants to sue negligent landlords, these findings reinforce the urgency to reform eviction laws and stop renters losing their homes when their landlords do not have legitimate grounds for eviction.

The Government is currently considering responses to a 2018 consultation on reforming private tenancies.

Section 21 of the Housing Act 1988 allows landlords to end tenancies outside of fixed terms without needing to give a reason. Under the Deregulation Act 2015, Section 21 evictions are invalid for six months when the council has served an improvement notice on the property. There must normally be a severe Category 1 hazard in the rental home for the council to take this action.

Generation Rent made Freedom of Information requests to 102 councils covering two-thirds of England’s private tenant population. The 99 councils that responded received a total of 67,026 complaints about housing in 2017-18, but served just 3,043 improvement notices on landlords. That means that just 5% of tenants who complained ended up being protected from revenge evictions.

Many of the complaints may not have involved Category 1 hazards, but, even accounting for these, a minority of affected tenants were protected. The 78 councils that record the Category 1 hazards that they find reported 12,592 such issues in 2017-18.

Yet, just 2,545 improvement notices were served as a result, equating to 21% of cases. Many of these cases may have been resolved by informal dialogue between the council and the landlord, but a tenant would have still been exposed if the landlord decided to ignore the council and issue an eviction notice.

Private Tenants Denied Protection from Revenge Evictions, Generation Rent Insists

The performance of councils varies dramatically. Eight councils had a ratio of improvement notices to Category 1 hazards of more than 75%:

  • Tower Hamlets: 309%
  • Merton: 289%
  • Nottingham: 215%
  • Wiltshire: 96%
  • North Somerset: 90%
  • Waltham Forest: 83%
  • Bournemouth: 83%
  • Cornwall: 75%

Five councils served no improvement notices:

  • Brighton and Hove
  • Hillingdon
  • Kensington and Chelsea
  • Kingston upon Thames
  • Sefton

Tomorrow, the Homes (Fitness for Human Habitation) Act comes into force, which will give tenants the ability to take negligent landlords to court, rather than rely on their councils. However, successful tenants will still not be protected from revenge evictions without their councils taking action.

The Ministry of Housing, Communities and Local Government consulted in summer 2018 on proposals to introduce three-year tenancies, within which tenants cannot be evicted under Section 21, to replace one-year tenancies. It has yet to publish its final proposals.

Generation Rent is part of the End Unfair Evictions coalition, campaigning alongside ACORN, the London Renters Union, New Economics Foundation and Tenants Union UK for the abolition of Section 21. The campaign is also seeking limits to rent rises – another tactic that some landlords use to intimidate tenants who complain.

Dan Wilson Craw, the Director of Generation Rent, says: “These figures demonstrate that, despite powers and protections, tenants living in squalid homes are being let down by their councils. If landlords are free to evict tenants who complain about disrepair, then we cannot expect the quality of private rented homes to improve. 

“The new Homes Act gives tenants with an unreliable council an alternative route to force landlords to fix problems, but they are still at risk of eviction. Tenants have a right to a safe home, but can only exercise it if the Government stops landlords from evicting without needing a reason.”

Councillor Louise Mitchell, the Cabinet Member for Housing at Waltham Forest Council, adds: “Many tenants don’t report disrepair, because they fear a retaliatory eviction, so the cases we deal with are only the tip of the iceberg. Although tenants are protected if the council serves the landlord with an improvement notice, this is too blunt a tool to rely on. In many cases, an informal response is enough to encourage the landlord to take action, even though tenants could still face the threat of eviction. It would be easier to give tenants protection by abolishing Section 21, so that landlords who wanted tenants to move out would need a valid reason.”

Labour Plans to Introduce Indefinite Tenancies to Protect Renters

Published On: March 12, 2019 at 9:58 am

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The Labour Party is planning to introduce indefinite tenancies to protect private renters, if it were to gain power.

The Shadow Housing Secretary, John Healey MP, has announced that a Labour government would aim to address the so-called “power imbalance” between landlords and renters, by introducing indefinite tenancies in the private rental sector.

Labour sees these German-style indefinite tenancies as the answer to fixing what Healey described as a “broken housing market”, as they would provide tenants with greater security. In the UK, landlords end around one in five private tenancies, rather than renters.

Private tenancies in Germany last for an average of 11 years, compared to just over four years in England

Labour’s latest proposal marks a change in tack from its pledge at the 2017 general election, when it committed to making private tenancies a default duration of three years. 

Alongside providing greater security for renters, its plan for indefinite tenancies is intended to reduce the extent of rent price rises. 

Healey insisted: “People shouldn’t be living in fear of losing their homes. The insecurity of renting is a power imbalance at the heart of our broken housing market, where tenants are afraid to report problems in case they are evicted, and families with children are forced to move at short notice.

“Many landlords provide decent homes that tenants are happy with, but the Government is allowing rogue landlords to take advantage of good tenants. Renters deserve better.”

Do you believe that offering indefinite tenancies to private renters is a step towards fixing the broken housing market, or would you, as a landlord, be worried about keeping tenants in your properties for such a long period of time? 

We would like to hear your thoughts on Labour’s latest private rental sector proposal – let us know whether you support the plans or not. 

6 Ways to Find the Ideal Tenant for your Property

Published On: March 12, 2019 at 9:06 am

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Categories: Landlord News

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As a homeowner, you are justly proud of your property. You paid for your property with hard-earned money and, having decided to get a tenant, you really would like to find someone who will treat it properly and with respect – as though it were their own. 

It is well worth being thorough in your search for the ideal tenant, as this helps ensure a trouble-free tenancy – and, if you are delighted with your tenant, they may well want to extend their tenancy if you offer this to them. The key to success is to put in plenty of effort. Advertise your property widely, as this will bring you a greater choice of tenants. Ensure that your landlord’s insurance policy is more than adequate. Spend plenty of time with your prospective tenant chatting to them, make sure that thorough background checks are carried out on them and listen to your sixth sense.

Before you place your property on the rental market, check that the rent you will be asking is a fair one and that it compares well with similar properties in the area – rental prices do drop as well as climb! If the property is empty, ensure that all the maintenance jobs have been completed – and to a high standard – and that it is in good decorative order and that the garden is tidy and looks well cared for.

Whilst you will be taking measures to ensure that you get a top tenant, all you can do is minimise the chance of having a difficult tenant. Sadly, according to AXA, 48% of landlords have had an issue with a tenant somewhere along the way.

  1. Establishing the basics.

The first question is whether your prospective tenant is entitled to live in the UK and do they have a right to rent a property? It is essential that you check this out straightaway, as failure to do so could result in you being fined – heavily. It is important to remember that, in choosing a tenant, landlords are not allowed to discriminate against nationality, religion, gender, family status (whether they do or do not have children) or disability.

First impressions really do count, so don’t just communicate online; meet your prospective tenant face-to-face. So, what do you think? An untidy person is unlikely to keep your property well! Do they seem open and honest? These are great qualities and help establish good communication. A quick look at their social media profile will probably reveal more about their character!

2. Can they comfortably afford the rent

In your conversation with your prospective client, it is essential to find out whether they have a secure job and to assess their salary, as rental agencies recommend that a tenant should have a salary that is 30 times the amount of one month’s rent. If the rent is £900, they should be earning at least £27,000. This is essential, as your tenant needs to be able to live comfortably and to have some slack in their finances, in case their car breaks down or they have other unplanned expenses along the way.   

If a prospective tenant is making a big jump in the amount of rent they will be paying, question why. Companies such as Experian and TenantVERIFY can carry out credit checks on prospective tenants for you. Ask for references from their landlord, flatmates and current employers. 

If your prospective renter is self-employed, they too will need to prove the sustainability of their income to you, which can be done using bank statements or confirmation from their accountant.

6 Ways to Find the Ideal Tenant for your Property

3. Will they communicate well?

Discuss methods of communication with your prospective tenant, as these are important. Give them the times that you are always available – most landlords suggest office hours – and give them a card with your email and mobile number for emergencies. Emphasise that you would appreciate their calls and would like to be notified of any problems as soon as they occur. Good landlords always follow up telephone conversations with an email summary of the conversation and what they have agreed to do, if it is a maintenance problem. They keep all paperwork to do with the tenancy in a dedicated folder for easy access. 

4. Do they understand the ground rules?

Have you explained to your prospective tenant that the property is your home and that you are emotionally attached to it? Have you explained that you do not want any pets in it and nor do you want extra lodgers living in it? Set guidelines for this and suggest that, if a family member is going to be staying there more than one week, you would like to know. 

Discuss with your prospective tenant which day of each month the rent will be due and ask them to establish a Direct Debit scheme for payment.

5. Try and keep everybody happen!

If they are going to be a replacement tenant for your current one, try to keep your current tenant happy, because it is difficult for them to always have people viewing the property, and showing your appreciation to them will ensure they are cooperative with moving out dates.

6. Show that it is your castle!

If the prospective tenant is viewing an empty property, make sure that they see it at its very best. Show that you care and that everything is in good decorative order, as this will show that you really do care.

Doing this may help you in the future, as well if you’ve ever thought to yourself: I want someone to eventually buy my house in the future

How will it help?

It’s not uncommon for renters to want to purchase a home they’ve been living in for a while if they really like it, so keep your wits about you and make your property look as good as It possibly can.

And once you have found your ideal tenant?

  • Take a deposit, four-six weeks’ rent is the normal amount – although it will soon be capped at five weeks’ rent, under the Tenant Fees Bill, which is due to be introduced from 1stJune. This should be held in a deposit protection scheme.
  • Get a tenancy agreement drawn up by your solicitor to ensure that it is legally binding and agree a moving in date.
  • Prepare a full inventory of the property, room-by-room, with photographs, and walk through the property, checking that your tenant is happy with all the entries, and signs and dates the inventory to avoid any hassle when they leave the property…

If, after reading through this, you feel uncomfortable or lacking in confidence about dealing with all aspects of the rental, or maybe you just do not have enough hours in the day, the perfect solution is to get a letting agent. Choose your letting agent carefully; they do charge a commission each month, but they will cover all aspects of property rental well and with a good tenant under your roof.

What are Tenants Really Looking for in their Rental Homes?

Published On: March 11, 2019 at 9:58 am

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Whether you are considering expanding your portfolio by investing in a new property, or are preparing to re-let any of your existing investments, it is important to understand what tenants are looking for in their rental homes.

Of course, different tenants have different needs, but property portal Zoopla has attempted to establish some common factors that appeal to all kinds of renters.

The research found that parking is the number one requirement for private tenants, while pet-friendly rental homes are growing in popularity, with the search term ‘pets’ ranking as the third most popular across Great Britain.

Zoopla analysed search data from its keyword property search tool, to reveal the nation’s most sought-after features in rental homes. Aside from ‘parking’, ‘garage’ and ‘furnished’ also ranked highly.

The findings come at a time when the average motorist in the UK spends 91 hours per year looking for a parking space, according to the British Parking Association (BPA).

Annabel Dixon, the Spokesperson for Zoopla, says: “Parking and garages were a consistent requirement for tenants across the nation. While this may not be the most exciting feature of a home, our research clearly shows that landlords can make their properties much more attractive by creating or enhancing existing parking. Whether they re-landscape their garden to include a driveway or apply to drop the kerb outside their house, these changes could pay dividends.”

What are Tenants Really Looking for in their Rental Homes?

Top ten keyword searches

  1. Parking
  2. Garage
  3. Pets
  4. Furnished
  5. Garden
  6. Student
  7. Bills included
  8. Balcony
  9. Bungalow
  10. Detached

On a regional level, tenants in London commonly searched for ‘gym’ and ‘ensuite’, yet these terms did not appear in the top ten requirements for renters in any other region of the country.

Meanwhile, those in Scotland have arguably less demanding requirements, with ‘dishwasher’ making it into the top ten.

In the North East and South West, tenants are after countryside dwellings, with ‘rural’ and ‘cottage’ featuring on tenants’ wish lists, while renters in the North West clearly enjoy the great outdoors, with ‘garden’ and ‘balcony’ making the top ten.

Zoopla also analysed viewings data to reveal the most viewed rental homes across the nation. Unsurprisingly, three-bedroom houses are the most frequently viewed properties on the portal. This was the case for every region, except London, where two-bed flats pipped them to the post.

Dixon adds: “From gyms to balconies, right through to dishwashers, it is fascinating to see how the requirements of renters differ across all regions of Great Britain. With Londoners paying a premium in rent, it makes sense that these tenants are focused on high quality amenities and luxury features, whilst renters in more rural locations are looking for properties that make the most of their countryside setting.

“Three-bedroom houses have come up trumps in our ranking of the most viewed properties by house hunters. These homes appeal to a wide range of buyers and tenants, including young families who are looking for space to grow, as well as downsizers who want a more manageable space that can still accommodate visitors.”

Landlords, use this data to ensure a successful let when putting your property onto the rental market! 

Prime London Tenants may Buy their Own Homes in Near Future

Published On: March 6, 2019 at 9:59 am

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Categories: Tenant News

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Prime London tenants may be in a position to buy their own homes in the near future, according to analysis by estate agent Knight Frank.

In the firm’s latest Prime London Lettings Index, covering February 2019, it found that the number of prime London tenants entering tenancy agreements has plateaued since the middle of last year, indicating that some renters may be willing to buy soon.

In prime central London, the average rent price rose by 1.4% in the year to February, compared to just 0.2% in prime outer London. On a quarterly basis, rents dropped by an average of 0.4% in both prime central and prime outer London.

Knight Frank observes that this positive growth in prime outer London rents in the 12 months to February marked the first increase for the area in three years. It believes that the tax changes introduced for landlords in recent years have put downward pressure on supply levels across the prime markets of London.

However, the ratio of new prospective tenants versus new supply in prime central and prime outer London rose to 5.4 in January. This increase – largely due to seasonal growth in new potential renters – indicates continued upward pressure on rent prices.

As the number of new rental property listings has decreased, so has the amount of tenancies agreed in prime central London. 16.5% fewer tenancies were agreed in the year to January than the previous 12-month period, data from estate agent LonRes shows.

The number of new prospective prime London tenants paying over £5,000 per week for their rental properties has plateaued since the middle of 2018, suggesting that demand will shift towards the sales market in higher price brackets of the capital. 

Knight Frank has found that the year-on-year change in the total number of £10m+ sales applicants was broadly flat in the first two months of this year, after two years of declines. 

Gap Between the Cost of Buying and Renting at 9-Year Low

Published On: March 5, 2019 at 10:00 am

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The gap between the cost of buying and renting a home has hit a nine-year low, according to research by Halifax.

The mortgage lender calculated the monthly costs of a three-bedroom property either to buy or rent. It found that buyers were saving an average of £900 per year compared to tenants in 2017, but this saving was down to £366 in 2018 – a 59% decline.

This is the smallest savings gap for nine years.

The research compares the typical costs for a first time buyer, such as average mortgage payments, income lost by funding a deposit, rather than saving, spending on household maintenance and repairs, and insurance costs, with rental data from BM Solutions.

There are some limits to the figures, as they don’t include upfront costs, such as Stamp Duty, valuations and legal fees, or anything that a tenant may pay, such as a deposit or tenant fees.

Homeowners are still better off by buying their own properties than renting across the UK.

In December 2018, housing costs, including a mortgage on a three-bedroom home in the UK, averaged £729 a month, compared to the typical rent of £759 for the same property type.

The greatest saving is in London, where homeowners are spending £4,475 less than tenants over a year, followed by Scotland, at £1,574.

In contrast, the cost of buying a property in Yorkshire is just 5% lower than renting, saving £361.

Russell Galley, the Managing Director at Halifax, says: “The gap between buying and renting is narrowing, primarily driven by reduced first time buyer prices, deposits in some regions and continuing house price growth, meaning buyers are paying more on their mortgages.

“With more products available for borrowers, these factors combined have pushed up the price of buying quicker than the price of renting. Meanwhile, the cost of rent, household maintenance and average deposits have remained broadly flat.”