Posts with tag: tenants

Inspection Time? Some Things you Need to Consider…

Published On: February 20, 2019 at 10:28 am

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Written by Open Doors Project Manager, Nazia Azad-Warren

When the weather warms up, it’s usually a sign for us to open up our windows and, for many of us, our cleaning supplies cabinet too! It’s that time of the year – Spring Cleaning! And if you’re a landlord or letting agent, it may also be time for your tenant’s quarterly property inspection! 

As a landlord or a letting agent, it’s important to make sure that tenants are looking after your property. You want to make sure that they are keeping it clean and tidy, not damaging anything and generally keeping the property a home that someone would want to live in.

Whilst all of the above is relevant, remember that when you go and inspect your properties, you are going into someone’s home. Remember that, because that’s important. 

The same way you would want a stranger to respect your house rules is probably the same way tenants would like you to respect theirs. 

Having said that, tenants are a diverse bunch. They can come from a variety of backgrounds, ethnicities, faiths, they may be disabled or a mixture of all the above! You will never know the ins and outs of all the things to consider for every type of person and also, people are individuals too, so their preferences could be very different to what you imagine. 

Nonetheless, it’s important to be considerate. To help you out, we’ve put together a few suggestions. Try them out! 

1. Don’t assume.

Don’t assume that people with non-British accents or from ethnic minorities have difficulties with English. However, don’t assume that because someone speaks English, they can read it or that they fully understand what you’re saying. If you feel that someone is struggling to understand you then use plain language and short sentences, avoid jargon!

2. Be mindful of objects. 

People have certain religious or sentimental objects that they revere. It’s important that we also respect these objects when in their homes. Objects include things like prayer mats, religious books/texts, beads etc. Tenants may also pray in their homes so ensure that you are aware of these spaces and if in doubt, just ask! 

3. Cultural sensitivity is not just about race and nationality. 

It’s also about knowing other types of ‘cultures’. Consider things like background, attitudes, values and disability or mental health issues. 

4. Don’t patronise. 

Your attitude is really important when entering someone’s home. It is never okay to talk down at tenants even if there is a disagreement. This can lead to a lot of issues in the future by causing the relationship to breakdown. 

One of our Open Doors Tenant Champions stated, ‘…it’s important for someone coming in to my home to never talk down at me because of my disability. This is my home, my safe space and everyone, including my landlord needs to know that’.

5. Be respectful, friendly and polite. 

Simply put, this is enough to do the trick. Remember that everyone is an individual so try and respond to individual needs. 

Most of the time, visiting a tenant’s property is nothing but a formality for both landlord and tenant, but these quick tips should make the experience a little bit nicer for you and the tenant(s). 

Good luck with the inspections! 

On a final note, if you are a landlord or letting agent and wish to learn more about sensitivity when entering someone’s home, then why not access Tai Pawb training course ‘Connect with Respect’.

Alternatively, contact Member Relations Manager Helen Roach at helen@taipawb.org

Bristol Named the Best City in the UK for House Shares

Published On: February 18, 2019 at 8:59 am

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Categories: Tenant News

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Bristol has been named the best city in the UK for house shares, according to new research by broadband and utilities provider Glide.

The study looked to identify the best house share hotspots across the country for students and young professionals.

Glide ranked the biggest UK cities on a range of measures, including the number of house shares in the city, amount of job opportunities advertised, the cost of rent, university rankings, and broadband speed, resulting in a top ten for those studying or looking to start their careers.

Bristol came out on top of the ranking, score the best overall by just one point. The city ranked fifth for the number of house shares available, at 945, and, while rents were third highest on the list, the city boasts high university rankings, 229 jobs advertised per 10,000 people, and high wifi and broadband speed – an essential for any student or young professional – which allowed it to just climb into first place.

Nottingham’s consistency across the rankings meant that the city came in second, with its job opportunities, broadband speeds, and university rankings all scoring in the top ten. It was only let down by relatively high rental costs.

Birmingham made up the top three locations, with its comparably low rents helping it to score well, but was let down by having just 145 job opportunities currently advertised per 10,000 people.

The top ten house share hotspots

  1. Bristol
  2. Nottingham
  3. Birmingham
  4. Manchester
  5. Liverpool
  6. Derby
  7. Southampton
  8. Brighton and Hove
  9. Leicester
  10. Portsmouth

London was the best location for variety of house share opportunities, with over 19,000 rooms available. However, with the average monthly rent coming out at six times higher than the most affordable city to live in (£3,278, compared to £499 in Bradford), the capital ranked 17th.

London, Edinburgh and Manchester were the top three cities for university rankings, all boasting institutions in the top ten of the UK University Rankings 2019. 

When looking at available job opportunities, York, Coventry and Derby came out on top, with 470, 408 and 382 jobs available per 10,000 people.

James Villarreal, the Director of Glide, says: “With so many students and young professionals choosing to house share, we wanted to find the best cities across the UK to suit their needs. When looking for a new house share, there are some important considerations to think about before signing, including location compared to your university campus or workplace, transport links and monthly bills.”

Rents are Falling as a Proportion of Tenants’ Income, RLA Insists

Published On: February 14, 2019 at 11:00 am

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The proportion of tenants’ income spent on rent in the private rental sector has dropped from an average of 35.4% in 2010/11 to 32.9% in 2017/18, the Residential Landlords Association (RLA) is pointing out.

Including income from housing benefit, over the same period, the amount of tenants’ income used for rent on social housing has risen from 26.7% to 28.0%.

These figures, from the English Housing Survey for 2017/18, highlighted by the RLA, show that, over the ten years between 2008/09 and 2017/18, the average weekly rent price across England (excluding London) in the private rental sector increased by 22%, which is almost half of the 43% rise in social rents. 

In London, private rents grew by an average of 34%, compared to 55% in the social rental sector.

The data arrives as the Office for National Statistics (ONS) has reported that rents are falling in real terms, and the Government’s 2018 English Private Landlord Surveyfound that 70% of landlords kept their rent prices the same when they most recently renewed a tenancy, showing that landlords prioritise keeping good tenants for the long-term.

The RLA is warning of the risks now posed to improved affordability in the private rental sector as a result of changes, such as those to benefits and increased taxation driving landlords out of the market.

The Government’s statistics show that over 15% of private landlords in England, representing more than 23 of all tenancies in the country, plan to either decrease the number of properties that they let or leave the sector altogether. Of this group, almost 70% said that it was due to legislative changes, including the phased reduction of mortgage interest reliefto the basic rate of Income Tax and the 3% Stamp Duty surchargeon the purchase of additional properties.

This reduction in the supply of private rental housing comes at a time when demand for new rental homes shows no sign of abating, with the Royal Institution of Chartered Surveyors (RICS) reporting that demand “remains more or less steady”.

Alan Ward, the Chair of the RLA, says: “This data shows that the private rented sector is becoming more affordable, demonstrating the folly that forms of rent controls would be. We cannot, however, be complacent.

“The danger signs are there. Tax increases are choking the supply of homes to rent. Landlords like to keep their tenants who benefit from lower or no rent increases when tenancies are renewed, but fewer homes for rent means less choice for new tenants.”

He believes: “We need positive, pro-growth taxation that supports landlords investing in the new homes to rent the country desperately needs.” 

Tenant Fees Bill Receives Royal Assent to Become Act of Parliament

Published On: February 13, 2019 at 11:01 am

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Categories: Law News,Tenant Fees Ban

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The Tenant Fees Bill has received royal assent to become an Act of Parliament in England. It will come into force on 1stJune 2019. 

From this date, landlords and letting agents in England will no longer be able to charge upfront fees to private tenants. It is expected to save renters at least £240m per year.

It will also cap the amount a tenant can pay in a refundable security deposit to the value of five weeks’ rent, as well as capping the amount of holding deposit a tenant would be required to put down to secure a property to just one week’s rent.

The Government believes that the act will make renting properties in England fairer and more affordable for tenants, by reducing costs at the outset of a tenancy, at the same time as improving transparency and competition in the private rental sector.

David Cox, the Chief Executive of ARLA Propertymark, responds to the news: “We’ve known the tenant fees ban has been coming for a long time, but, with only 109 days to go until it comes into force, the industry must start taking time to prepare.

“The Government will soon publish its guidance now that we have legislative certainty, which will give agents a better understanding as to how the ban should practically be implemented.”

Under the terms of the new law, the maximum amount that can be charged for a change to a tenancy is £50. Any landlord or agent breaching the ban for the first time will be hit with a £5,000 fine.

The Housing and Communities Secretary, James Brokenshire MP, says: “Tenants across the country should not be stung by unexpected costs from agents or landlords.

“This is part of our ongoing action to make renting fairer and more transparent, and make a housing market that works for everyone.”

Brokenshire explains that, under the act, agents will only be able to recover reasonably incurred costs from tenants, which will put a stop to, for example, “tenants being charged hundreds of pounds for a damaged item that actually only costs a few pounds to replace”.

He continues: “The act also ensures that tenants who have been charged unfair fees get their money back quickly, by reducing the timeframe during which landlords and agents must pay back any fees that they have unlawfully charged.

“Taken together, these provisions help reduce the costs that tenants can face at the outset, renewal and termination of a tenancy.”

Brokenshire explains: “The act is part of a wider package of Government reforms aimed at rebalancing the relationship between tenants and landlords, to deliver a fairer, better quality and more affordable private rental market.

“We have introduced a range of powers for local authoritiesto enable them to crack down on the small minority of rogue landlords and agents who let unfit properties. This includes fixed financial penalties of up to £30,000 and banning orders – possibly for life – for the most serious offenders.”

Rent Prices in Prime London Rise Due to Higher Tenant Demand

Published On: February 13, 2019 at 9:02 am

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Rent prices in prime London rose by an average of 1.9% in the fourth quarter (Q4) of 2018, due to higher levels of demand from tenants, as continued political uncertainty pushed prospective buyers into the prime rental market.

The latest Prime London Lettings Index from LonRes shows that rent prices rose in Q4, owed in part to a supply-demand imbalance in the market, with 80% of respondents to the LonRes Agent Survey reporting an undersupply of studios and one-bedroom flats in their areas.

Over the course of 2018, 13% fewer properties reached the market.

However, it is worth pointing out that prime central London saw a slight year-on-year decline in rent prices – down by 1% on Q4 2017.

Many landlords remain cautious and are not raising rents for existing tenants, the report adds.

In Q4 2018, 72% of letting agents said that most of their landlords were not increasing rent prices on tenancy renewals.

As for new tenancies, renters negotiated an average of 4.9% off the initial asking rent in Q4, which is down from 6.4% in the same quarter of the previous year.

Meanwhile, 31% of properties in prime London underwent a price reduction in Q4 before securing a tenant, compared to 41% in Q4 2017.

A combination of fewer homes to let reaching the market and higher demand from tenants suggests that rent prices in prime London will rise in the near-term.

Some 58% of respondents to the LonRes Agent Survey reported an increase in tenants who were previously looking to buy. Just 8% reported a fall.

An increase in tenancy renewals resulted in fewer net lets agreed in Q4, which is down by 17% on the same quarter of 2017. The declines were greater in the second half (H2) of last year, with an 11% reduction in new lets, compared to 2% in H1 2018.

With fewer properties available to let, the time taken to find a new tenant has dropped. In Q4, 30% of properties to let in prime London had a new tenant within a month of being listed, compared to 23% in Q1 2018. This is the highest level for four years.

Marcus Dixon, the Head of Research at LonRes, says: “In an uncertain market, the response by both buyers and sellers in prime London has been to hunker down and observe, rather than participate. This is impacting on both transaction levels and prices. However, for those willing to buy, there are opportunities to be had and purchasers are negotiating accordingly.

“The prime rental market continues to benefit, as would-be buyers become tenants. Despite fewer new lets agreed, owing to an increase in renewals, stock levels are low, and competition among prospective tenants is leading to increases in achieved rents in most central London areas. Fewer landlords are needing to reduce their asking prices and discounts have fallen back.”

Total Rent Paid to Landlords Dropped for First Time in a Decade Last Year

Published On: February 12, 2019 at 9:00 am

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The total rent paid to landlords by private tenants dropped for the first time in a decade last year, according to research by Hamptons International.

The Countrywide estate agent brand estimated that the total rent paid by tenants in 2018 was £59.1 billion, which is down by £1.9 billion on 2017. The report claimed that this was fuelled by a decline in the number of households renting and rent price growth stagnating.

However, renters were still paying £29.9 billion more than they were ten years ago, while the number of households renting from a private landlord grew by 1.7m (52%) over the same period. Rent prices were up by an average of 12.4% over the decade. 

During 2018, nine out of 11 regions of Great Britain recorded a fall in their total rent bill. The East Midlands (£130m) and North East (£60m) were the only regions to see an increase.

London experienced the greatest decrease in the total rent paid by tenants, with renters in the capital paying £20.6 billion in rent in 2018, which is £620m less than in the previous year.

On ten years ago, however, the total rent paid in every region increased, led by growth in London, where the bill rose by £10.53 billion over the decade.

After the capital, tenants in the South East (£14.19 billion) and the East of England (£3.05 billion) saw their total rent increase the most.

Meanwhile, Wales saw the smallest rise, of £70m.

Hamptons International’s data also showed that rent prices started 2019 on an upward trend in most regions, although they rose at a slower rate than in 2018.

In January, the average rent price on a new let increased by 0.6% on an annual basis, compared to 2.4% in the same month of 2018, to £963 per month.

London led the slowdown over 2018, but rents in the capital have gradually started to increase again.

The average cost of a new let in the capital rose by 0.6% year-on-year in January. Meanwhile, the South East and South West both recorded an average decrease of 0.5%.

The greatest rise was recorded in the East of England, where the average rent increased by 2% to £943 per month.

Aneisha Beveridge, the Head of Research at Hamptons International, says: “The total amount of rent paid by tenants in Great Britain fell for the first time in over a decade last year. Despite average rents rising 0.4% in 2018, fewer people renting homes meant the total rent bill shrank by £1.9 billion since 2017.

“Over the past 12 months, rental growth in Great Britain has slowed. Rental growth has fallen from 2.4% in January 2018 to 0.6% last month. The slowdown over the past year was mainly driven by London, but rents are now gradually starting to rise again in the capital. Meanwhile, the South East and South West both recorded falling rents last month.”