Posts with tag: tenants

Government to Review Safety Standards of Rental Housing

Published On: October 29, 2018 at 11:02 am

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Industry bodies are welcoming the news that the Government will review the safety standards expected of rental housing.

The Housing, Health and Safety Ratings System (HHSRS) is used by local authorities to assess the health and safety of residential properties, including both private rental and social rental housing.

The Policy Director of the Residential Landlords Association (RLA), David Smith, says: “We welcome the Government’s decision to review the safety standards around rented housing, which the RLA has long called for. The current system has not been updated for 12 years, with the guidance alongside it equally out of date.

“This review provides an important opportunity to improve enforcement against the minority of landlords who bring the sector into disrepute and fail to provide the safe accommodation they should.”

David Cox, the Chief Executive of ARLA Propertymark (the Association of Residential Letting Agents), also responds: “It’s excellent news that the Government will review the existing HHSRS, which we have long said is too complicated, and poorly understood by tenants, landlords, agents and enforcement officers.

“We need to create a practical system with criteria which are easy to use, and fully support the recommendation in the Rugg review for a property MOT, which will ensure that a home meets a minimum set of requirements and that the landlord understands what is expected of them.”

The RLA has also spoken out today about its support of NatWest’s announcement to review the issue of landlords being prevented from letting to benefit claimants.

We wait to hear from the Chancellor, Philip Hammond, of any developments to buy-to-let and housing in his highly awaited Autumn Budget announcement today. We will be covering all of the industry experts’ opinions and reactions to the statement throughout the rest of the week.

Stay tuned to Landlord News for your daily property updates.

Private Tenants Playing a Lottery with their Deposits, Nationwide Finds

Published On: October 23, 2018 at 8:03 am

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Renters Lose £80 million per year to Deposit System

Tenants renting their homes from private landlords are playing a lottery with their deposits, according to a new study by Nationwide.

The building society found that tenants can wait months for their deposits to be returned, with some losing their money for unjust reasons.

Finding a deposit for a new rental property can be a major barrier to moving, Nationwide points out, particularly when the deposit you’ve already paid on your current home takes some time to be returned, or faces substantial deductions.

As part of its ongoing focus on the long-term health of the private rental sector, Nationwide is calling for greater consistency in the treatment and return of tenancy deposits, so that tenants leaving properties in a suitable condition get their money back quickly.

Deposit returns

According to Nationwide’s survey of 2,000 tenants, it can take almost two months (1.8) on average for a tenancy deposit to be returned. However, in what appears to be a lottery of experiences, almost half (46%) received their deposits back within a month of leaving their property, while around one in five (18%) were made to wait more than three months. A further 4% had to wait over six months.

Paul Wootton, the Director of Specialist Lending at Nationwide, says: “There must be a better way to address the gap in deposits created when one tenancy ends and another begins. To ensure all private tenants have a better and more uniform experience, we need to consider more pragmatic solutions, including transferring deposits from one tenancy to the next, providing appropriate short-term loans or a guarantee. Nationwide is already working with other organisations who are equally aware of the need for a practical approach that meets the needs of both tenants and landlords, without being an obstacle to moving home.”

Private Tenants Playing a Lottery with their Deposits, Nationwide Finds

Private Tenants Playing a Lottery with their Deposits, Nationwide Finds

Deposit deductions

While more than half (54%) of tenants had never lost a tenancy deposit, one in 14 (7%) had never actually paid a deposit, rising to one in seven (15%) of those aged 55+ (perhaps because they had rented the same property for a longer period of time).

However, over a third (35%) had previously lost some or all of their tenancy deposits, including 2% who lost all of their deposit every time they rented, and 5% who lost at least some of their deposit every time they moved home. A further 28% lost some or all of their deposits on some, but not all, previous rentals.

More than two in five (41%) tenants had experienced deposit deductions to cover the cost of end of tenancy cleaning, though this figure rose to 68% of 18-24-year-olds. Almost two in five (39%) had been charged for wear and tear, while 15% had their deposits debited for redecorating costs. 12% were charged for damage to contents, 5% for damage to buildings and 4% for previous rent arrears.

Official guidance suggests that, though landlords must keep deposits in a Government-approved tenancy deposit scheme – assuming that the tenancy started after April 2007 – before returning it, they may charge for any repairs or cleaning required to return the property to its original condition at the beginning of the tenancy. However, deductions cannot be made for ordinary wear and wear.

Wootton continues: “While our research suggests that the majority of landlords return tenancy deposits quickly and fairly, it also highlights remaining areas of confusion over what can or should be debited from deposit returns. Both landlords and tenants can take simple steps at the start and end of each tenancy to protect against discrepancies and understand their own responsibilities – resulting in a better experience for all. However, where end of tenancy issues cannot be resolved, we need a specialist housing court, equipped to provide fast and effective arbitration, as well as greater confidence of equitable experiences for all.”  

Top tips for tenants 

Nationwide has put together some helpful tips for tenants, so that they can better understand their rights and responsibilities:

  • Insist on a detailed inventory and check it with your landlord, so that you can note and agree any discrepancies at the start of the tenancy
  • Take photographs and/or video, both at the start and end of the tenancy, to confirm the condition of the property
  • Ensure that you leave the property in the same condition as it was when you moved in
  • Understand that, if you rent with others, you will all be liable to cover the cost of any damage
  • If damages occur, inform your landlord as soon as possible to agree repairs and prevent the issue getting any worse
  • Check with your landlord before redecorating
  • Understand that any rent arrears will be deducted from your deposit

Home Movers Rely on Connection, Community and Convenience, Reveals New Report

Published On: October 19, 2018 at 9:42 am

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Home Movers Rely on Connection, Community and Convenience, Reveals New Report

Home movers are increasingly reliant on connection, community and convenience when looking at where to live, according to a new study from Strutt & Parker.

The estate agency’s latest report, Housing Futures: New Horizons, looks at how policy and political events have transformed the property market over the past five years.

Since 2013, surveys with 2,000 respondents have been conducted annually to try to understand the aspirations of buyers and tenants across the UK, as well as the challenges that they face.

Vanessa Hale, the Director of Research at Strutt & Parker, says: “Five years have passed since we first did the Housing Futures survey, so the time was ripe for us to look back over previous results to see whether some of our predictions have come true – such as the rise of single person households and the those living in rental accommodation.

“It was encouraging to discover that many of the creeping trends we identified half a decade ago had become a reality. Over the five-year period, our survey showed a small increase in those who anticipated living on their own, a tribe we call The Onesies. Likewise, we uncovered a jump in the number of people seeking rental accommodation.”

Key findings from the research include:

  • Broadband is now seen as essential for the majority of home movers – up from 48% to 57% over the five-year period
  • Providing financial support for relatives has become one of the key reasons to move home – up from 15% to 22%
  • Renting has increased as a future tenure, from 10% to 13%, reflecting its growing popularity
  • Big cities have become more popular as a preferred location to live – up from 9% to 15%
  • Those that anticipate living in a single person household rose – from 8% to 11%

Five years of survey results show that a desire for a more relaxed, accessible lifestyle lies behind the most popular reasons for moving home.

Along with privacy, which was mentioned by 66% of respondents, access to local shops and amenities, digital connectivity and public transport are among the top reasons for moving. Access to public transport was mentioned by significantly more respondents – 48%, compared to 37% in 2013.

Even in the digital age, more people wanted to be close to family and friends, which rose from 37% to 48%. Walking to work was also seen as an increasingly attractive option, from 25% to 36%.

This year’s survey also showed marked changes when it comes to the size and type of home that home movers expected to live in in the future.

Hale explains: “Connectivity seems to be the key for British home movers in 2018. We want to be connected in all areas of our lives – digitally through our mobiles and laptops, and physically to good transport links and local shops and leisure facilities. There is a growing requirement for connection, community and convenience. Since 2013, good broadband has jumped from 48% to 57% as a key motivation for moving. It is now seen as a necessity for many, as it impacts on every area of our life – whether that be work or leisure – if we don’t have it at our fingertips.

“This move towards connection also goes some way to explain why our survey shows that big city life has become more appealing to people. By their very nature, cities tend to offer a greater level of accessibility than smaller towns or villages. City dwellers don’t have long commutes to work and can enjoy walking to a local cafe or the gym. In today’s hectic times, this is the lifestyle many people want.”

Detached houses have seen a drop in popularity over the past five years (from 83% to 49%), while semi-detached homes have become the desired new housing option for an increasing number of respondents (up from 5% to 14%).

Hale concludes: “Three bedrooms remain the most popular housing option, with 35% choosing them, while there has been a decline in the aspiration to live in larger properties with four or more bedrooms (down from 37% to 27%). This could reflect the change in many household make-ups – a couple with no children remains the most likely future household make-up at 44%, although this option had declined by 14% in the past five years.”

Tenant Fees Bill Passes Second Reading to go to Committee Stage

Published On: October 15, 2018 at 8:53 am

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The Tenant Fees Bill has passed its second reading in the House of Lords, and will go to the committee stage next month.

Peers debated whether letting agents and landlords should have to keep a paper trail of holding deposits, and whether this charge should be capped at three days’ rent or £50, rather than the one week proposed.

As the bill passed its second reading, peers in the House of Lords criticised ARLA Propertymark (the Association of Residential Letting Agents) for continuing to oppose the lettings fee ban.

Tenant Fees Bill Passes Second Reading to go to Committee Stage

Tenant Fees Bill Passes Second Reading to go to Committee Stage

Baroness Hayter questioned why ARLA was still arguing against the bill: “I am sad to see ARLA, which represents letting agents, still arguing against the bill, claiming that it will harm the private rented sector.

“In fact, it will do the opposite, partly, as I have said, by keeping funds within housing, rather than with agents, but also, vitally, by increasing tenant trust in the private rented sector.

“David Cox, the Chief Executive of ARLA, really ought to know that distrust in agents is not just apocryphal. It is based on hard evidence.

“He should also recognise, as I have long argued to him and his members, that the inherent conflict of interest within tenant fees is unethical and unprofessional.

“No service provider should have both parties to a transaction as clients.”

Baroness Grender also addressed concerns that the lettings sector will be jeopardised, highlighting online agent OpenRent, which has never charged tenants fees.

She cited research from OpenRent, which shows that 64% of landlords support the tenant fees ban, adding: “That begs the question: why are those who represent landlords lobbying against this bill, when most landlords want to do the right thing?”

The Spokesperson for OpenRent, Sam Hurst, responded: “The letting industry has fought this policy all the way, but now it’s clear that, in doing so, they do not represent the sector’s real stakeholders – landlords.

“Anyone could predict that tenants support a ban on fees. But this survey shows that a large majority of landlords do, too.

“Various groups have warned that a ban on tenant fees will be bad for business. But OpenRent has grown to become the UK’s largest letting agent without ever charging tenants these huge admin/agency fees.

“All the key players are ready for positive change in the sector. Government, tenants and landlords are all behind a tenant fee ban.

“Lettings companies can’t ignore this.”

We will keep you up to date with the bill’s progress through the committee stage.

Rewarding Landlords who Sell to Tenants is Not the Solution to the Housing Crisis, Argues Shared Ownership Supporter

Published On: October 12, 2018 at 9:53 am

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The Director of a portal for shared ownership properties and mortgages has insisted that the Government should not reward landlords who sell to their tenants, in a bid to solve the housing crisis.

Stephen Dwelley, of Share to Buy, has spoken out in response to a report from think-tank Onward.

He explains his stance: “Following this week’s research from the Institute of Fiscal Studies, which shows that house prices have increased by 173% over the past two decades, think-tank Onward has suggested that the Government should reward landlords for selling properties to long-term tenants, to help young people onto the housing ladder.

“However, with recent rents continuing to rise to unprecedented levels, particularly in the capital, such a move is likely to further reduce stock of quality rental properties, putting additional upward pressure on rents. This would ultimately make saving for a deposit even more of a challenge for Britain’s under-35s.”

Dwelley believes: “The only genuine, long-term solution to the UK’s housing crisis is to dramatically increase housing output, with a specific focus on homes built for affordable homeownership – such as shared ownership and London Living Rent, backed by the Mayor of London.

“The median household income of London-based shared ownership registrants on Share to Buy is £42,000 – almost 40% less than the average first time buyer in the capital. Minimum deposits for shared ownership homes in London average at just £6,335.97 for a one-bed, or £8,390.60 for a three-bedroom home – making this perhaps the only affordable route onto the housing ladder.”

Nevertheless, his idea faces difficulties: “However, in the current market, the UK’s affordable homeownership providers face dwindling funding to deliver truly affordable homes in sought after areas across the country and, as a result, demand for shared ownership homes undoubtedly outstrips supply.

“In the up-coming Autumn Budget, we would implore the Government to prioritise alternative homeownership schemes, helping to safe-guard the future of would-be first time buyers in the UK.”

We have already received the National Landlords Association’s and Residential Landlords Association’s expectations from the Chancellor for this month’s Autumn Budget.

Landlords Welcome Funding to Support Homeless People Into Rented Housing

Published On: October 11, 2018 at 9:01 am

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Thousands of vulnerable people facing homelessness are set to benefit from the launch of a £20 million scheme to help them secure a privately rented home.

The Private Rented Sector Access Fund, launching today on World Homeless Day, 10th October 2018 by Communities Secretary, Rt Hon James Brokenshire MP, is a dedicated fund designed to help up to 9,000 people who are or at risk of becoming homeless to secure their own home.

A key part of the government’s expert-backed Rough Sleeping Strategy World Homeless Day, the fund will be used to either help set up locally-led schemes or expand those currently in use. These schemes will be tailored to match the needs of each local area’s residents and landlords.

This could involve councils providing financial support to help those to access or maintain their tenancies, such as paying deposits for the tenancy or rent payments. Alternatively, some schemes may involve the council managing the property on the landlord’s behalf.

Communities Secretary, the Rt Hon James Brokenshire commented: “It is vital we give people facing homelessness a route out of it and a chance to rebuild their lives. The private rented sector has an important role in this.”

This £20 million fund will allow councils to put in place vital new schemes so that those at risk will have the support to secure their own tenancy.

It is just one part of the wide-ranging work we are doing to help tackle all forms of homelessness, including our Rough Sleeping Strategy as we ensure more homes are made available for those in need.
The fund is modelled on evidence provided from the successful programme run by leading homelessness charity Crisis which supported schemes to help homeless people into thousands of private rental tenancies.

The new fund’s launch comes as patients, prisoners and jobseekers at risk of homelessness must now be referred to their local housing authority under key legislation. The duty to refer, a core part of the Homelessness Reduction Act, came into force this month.

It places new responsibilities on key public bodies such as prisons, Job centres and NHS Trusts to ensure those at risk get the help they need.

The Rough Sleeping Strategy was launch in August this year and set out a number of schemes designed to support those sleeping on Britain’s streets rapidly into accommodation.

The minimum tenancy or existing tenancy supported by the schemes will be a period of 12 months.

Bidding for the schemes is open to all local councils, who are permitted to submit separate bids.

The competition for bids runs for 6 weeks from 10th October.

Up to £5 million in funding is available for bids for the 2018 to 2019 financial year with £15 million available for the 2019 to 2020 financial year.

The Crisis Private Rented Sector Access Programme ran from 2010 until 2014, backed by £11 million in funding from the government. The programme supported over 153 schemes across the sector, creating 8,000 tenancies over 4 years. A total of 90% of these schemes created lasted beyond 6 months.

Responding to the announcement of that the Government is formally launching its fund to support councils to house those who are or are at risk of becoming homeless in private rented housing, David Smith, Policy Director for the Residential Landlords Association said:

“With over one million households waiting for a social rented home, increasing numbers of councils are now turning to the private rented sector to provide homes for the homeless.

“We strongly welcome the formal launch of the Government’s access fund, as announced in the Budget last year and campaigned for by the RLA and Crisis. Homeless tenants face the most difficult financial pressures which this funding could play an important part in addressing, whether it’s support to provide a deposit or ensure rent payments are made.

“Such funding however needs to be matched by an ambitious programme to see more homes of every tenure developed. This includes homes for private rent.”