Posts with tag: tenants

Rogue landlords need tougher sanctions

Published On: September 21, 2015 at 2:53 pm

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Landlords more worried by Section 21 reform than Stamp Duty or loss of tax relief 

The Local Government Association (LGA) has called for councils to be granted greater powers in order to tackle rogue landlords and stop them from taking advantage of vulnerable tenants.

Tougher

Representing over 370 councils across England and Wales, the LGA has demanded that tougher sentencing guidelines are introduced, alongside a wider range of penalties. This, it feels, will help to rid the Private Rented Sector of the minority of landlords who plan on exploiting their tenants.

Changing the Housing Act to include tougher sanctions on more serious housing offences could see landlords facing community service or even a prison sentence, something that the LGA welcomes. The LGA believes that too many landlords are given minimal fines, which do nothing to deter them from their unlawful behavior.

Speaking on BBC Breakfast, vice chairman of the LGA Gerald Vernon-Jackson called for larger fines that are more relative to the landlords’ income.

Mr Vernon-Jackson said, ‘it’s like fining a premiership footballer £1,000 when he’s earning £200,000 a week-he is not going to notice.’[1]

Examples

To draw attention to the root of their calls, the LGA has highlighted a number of examples where punishments for rogue landlords could be seen as too lenient.

In Coventry, a landlord was fined just £100 after six tenants were forced to live in a home for a year without fire alarms and an escape route. Meanwhile, a landlord in Redbridge who failed to comply with an improvement notice to deal with an infestation of mice and cockroaches was fined just £3,000. During this time, ten tenants were forced to share a mouldy, damp kitchen.

Alongside tougher sanctions, the organisation want to see more clarification on what constitutes a ‘fit and proper,’ person who is able to hold a landlord licence. In addition, the LGA says that it supports the notion of a blacklist for landlords who persistently offend, but have concerns into how this will be funded.

Rogue landlords need tougher sanctions

Rogue landlords need tougher sanctions

Standards

‘The courts need to punish rogue landlords proportionately and there should be a consistent standard when it comes to licensing, ‘said Councillor Peter Box, LGA housing spokesman. ‘We know that the majority of tenants are satisfied with their accommodation, but that shouldn’t distract from the fact there are far too many rogue landlords creating misery for people who often see themselves as having little choice but to put up with it,’ he continued.[1]

Mr Box went on to say that, ‘it is no coincidence that problems are more prevalent in areas where economic conditions and the local housing market have driven demand higher than supply and we need to recognise that the real solution is creating conditions where landlords can’t afford to neglect their responsibilities.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/rogue-landlords-should-face-tougher-sentences-say-local-councils

 

 

Rent rises slowing in some regions

Published On: September 21, 2015 at 12:19 pm

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Good news for renters in Britain has come in a new report from the Association of Letting Agents (ARLA) , which suggests the number of letting agents reporting rent increases for tenants has dipped.

For the first time this year, the total of ARLA agents reporting rent rises for tenants has actually fallen from the previous month.

Reductions

The report shows that just 33% of agents recorded rent rises in August, the lowest total since April this year. In addition, this was a 37% drop from the total recorded in July.[1]

However, tenants in the South West of the country are not gaining any benefits. 42% of agents in the region are continuing to see rents rise, up by 4% on the previous month. This is in comparison to just 12% of agents in the North West that have seen a rent increase.[1]

Welsh tenants are also worse off, with the number of landlords increasing rents up to 36%, in comparison to just 11% in July. [1]

Short supply

After a surge in properties made available to rent during the last month, supply has since slowed to the levels seen in June. ARLA agents managed an average of 178 properties per branch during August, in comparison to 189 in July.[1]

In addition, the report found that the total number of house hunters in the rental sector rose marginally in August. During the month, letting agents recorded an average of 36 would-be tenants registered per branch, compared to 35 in July.

Rent rises slowing in some regions

Rent rises slowing in some regions

London’s continued struggle for available housing worsened again in the previous month, with 110 properties registered on average per branch. This was down form the 117 recorded on average one month previously.[1]

Sorry state

David Cox, managing director of the Association of Residential Letting Agents, said that, ‘our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market.’[1]

Cox went on to say that, ‘with increasing pressure on the dwindling supply of housing and the number of house-hunters growing, rent increases are unfortunately very common- as one in three tenants are experiencing. Despite the fact they have fallen this month, its likely they will go back up again over the next few months.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rent-hikes-on-the-decline.html

 

 

Rents dropping but arrears are rising

Published On: September 18, 2015 at 12:44 pm

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The latest Buy-to-Let Index from Your Move and Reeds Rains shows that rents in England and Wales dropped fractionally during the last month.

A fall of just 0.1% saw average rents now stand at £803 per month.

Arrears

Data from the report shows that annual rental increase slowed to 5.5%, down from 6.8% on the previous month. With this said and despite rents slowing in London and the South East, record rates were recorded in the Midlands and the East of England.

Moreover, rent arrears rose to 9.9% of all rent payable during August, a rise from 8.4% recorded during July. What’s more, this was a substantial rise from the 8% recorded in the same month last year.[1]

Rents dropping but arrears are rising

Rents dropping but arrears are rising

‘Rents are being bid up by the vast majority of tenants, many of whom are seeing their incomes rise substantially for the first time in many years,’ noted a spokesperson for the agencies. ‘However, compared to rapidly growing demand, there is a real shortage of available properties to let across the country. This means that inevitably, rising rents will not be good news for everyone,’ they continued.[1]

The spokesperson concluded by saying, ‘we will be releasing new, separate figures on the most serious arrears very soon. However, there is a need for action. This involves more investment from landlords in properties to let-and action from the government to allow the building of more new homes of all tenures.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/9/rents-dipping-and-arrears-rising-say-letting-agencies

 

Tenancy agreements ‘worthless’ to many

Published On: September 17, 2015 at 12:32 pm

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A damning new investigation suggests that signed tenancy agreements are hardly worth the effort and paper they are written on.

The study, conducted by PropertyLetBuyUs.com, indicates that many tenants have simply ignored terms and conditions set out in the agreement and are failing to gain permission to make changes to a property and lease.

Lack of respect

Findings from the report show one in ten tenants has subletted a property to a friend, with over 70% have kept a pet without permission. 79% said that they have decorated without consent.[1]

In addition, the research shows that despite landlords outlining clearly that no alterations are to be made to their property without permission, almost half of tenants asked put up shelves and other fixings. A whopping 95% said they had put nails and screws in the walls.[1]

A further 11% said they had made unconsented alterations to the garden, 6% said they had installed decking and 60% have had internet or Sky cables installed into the property.[1]

Tenancy agreements 'worthless' to many

Tenancy agreements ‘worthless’ to many

Disregard

‘It is a sad fact that many tenants don’t take any notice of the lease agreement and treat the property as if it belongs to them, with little disregard for the landlords investment,’ said Jane Morris, Managing Director of Property Let By Us. ‘Landlords often face filthy and damaged properties with excessive wear and tear at check-out. What’s more, the deposit does not always cover the costs involved in getting the property up to standard for re-letting,’ she continued.[1]

Morris believes that it is, ‘vital that landlords make mid-term inspections, so that they can monitor and assess the condition of the property.’ She says that this way, ‘any issues and problems can be discussed with tenants and resulting increases in rent or deposit can be agreed to cover additional wear and tear, or any damage to the property.’[1]

[1] http://www.propertyreporter.co.uk/landlords/are-tenancy-agreements-worth-the-paper-theyre-written-on.html

 

 

Retiree landlords bad news for tenants?

Published On: September 10, 2015 at 11:59 am

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The start of the new financial year saw a surge in the number of retirees investing in buy-to-let property, in a bid to gain better returns on savings.

Boom

Letting agents have reported a large level of interest from first-time landlords who tend to be of retirement age and are buy-to-let investors. A recent survey of 20,000 households has indicated a steady increase in the proportion of savers looking to use a buy-to-let investment as a means of funding their retirement years.

Data from the Office for National Statistics shows that 42% of respondents think that investing in property is the secret to secure the largest possible retirement fund. This percentage was up from 32% in 2010.[1]

However, many of these retiree landlords have either limited or no experience of dealing with tenants, thus share many characteristics of accidental landlords.

Concern

‘Many retirees are finding they can easily use equity in their residential property or money from a pension pot to fund a deposit. They can also claim tax breaks on mortgage interest and other expenses, so buy-to-let is very appealing,’ commented Peter Armistead of Armistead Property. He believes that the inexperience of retiree landlords will see many tenants getting a raw deal.

Mr Armistead said many of these landlords are, ‘inexperienced in the rental market and may be unaware of the legal, financial and duty of care responsibilities they face. There is a myriad of legislation governing tenanted properties and it is very easy for the uninitiated to fall foul of the law.’[1]

Retiree landlords bad news for tenants?

Retiree landlords bad news for tenants?

Tasks

‘For example, boiler and gas appliances checks need to be done annually for rental properties. Landlords also have a legal responsibility to minimise fire risk with the installation of fire alarms; provisions of fire proof furniture and fire extinguishers; and accessible fire escapes,’ Armistead continued.[1]

Concluding, he said that unless some retiree landlords, ‘take a professional and well informed approach to letting property, it is likely that the quality of accommodation, property maintenance, safety and communications with the tenant will be substandard and may put lives at risk.’[1]

‘Retiree landlords need to take their responsibilities seriously and get expert help to manage their properties. This will ensure they are compliant with all of the legal requirements and that their tenants are managed professionally,’ Armistead added.[1]

[1] http://www.propertyreporter.co.uk/landlords/are-retiree-landlords-bad-news-for-tenants.html

 

 

Lawful tenants being refused property

Published On: September 8, 2015 at 10:35 am

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Confusion over the Government’s ‘Right to Rent’ scheme is leading to a number of lawful tenants being refused property in the UK, according to a new report.

Research from the Residential Landlords Association suggests that there are many landlords that are struggling with the complexity of the scheme, which has been piloted in the West Midlands.

Discrimination

The Joint Council for the Welfare of Immigrants (JCWI) suggest that stringent right to rent checks has lead to discrimination against tenants that appear ‘foreign.’[1]

42% of landlords are said to be less likely to consider someone who does not hold a British passport, with 27% of landlords hesitant to engage with tenants who have foreign names or accents.[1]

Following the pilot scheme in the West Midlands, the Government announced plans to roll out the scheme across the whole country. Landlords face up to five years imprisonment if they do not undertake the correct checks.

Confusion

RLA policy director David Smith said, ‘whilst the RLA opposes discrimination against tenants because of their race or nationality, the Government’s plans are causing confusion and anxiety for many landlords.’ Smith believes that, ‘if the Government expect landlords to act as border police it should provide the training and material needed to give them the confidence to carry out the checks required of them.’[1]

Lawful tenants being refused property

Lawful tenants being refused property

‘In the absence of such support, today’s research sadly shows the inevitable consequences of the policy which the RLA has long voiced concerns about. Faced with considerable sanctions, landlords will inevitably play it safe, where a tenant’s identity documents are either unclear or simply not known to them,’ Smith continued.[1]

Concluding, Mr Smith said that, it is concerning that the Government remains committed to rolling out the Right to Rent policy nationwide without first publishing its assessment of the impact it has had in its own pilot area. Ministers should halt plans to proceed with its rollout to allow time for proper scrutiny and consideration of the impact it is likely to have.’

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/right-to-rent-seeing-lawful-tenants-refused-housing