Posts with tag: tenants

Press Speculates on Introduction of Three-Year Tenancies

Published On: August 17, 2018 at 8:00 am

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The press has been speculating on when the Government’s proposed minimum three-year tenancies will be introduced.

Following reports in The Sun that the Government will announce a decision next week, landlords are warning that it must not confirm its plans on longer-term tenancies until the consultation process has closed and it has considered all responses.

The consultation was launched on 2nd July 2018.

The Residential Landlords Association (RLA) has spoken out following the speculation, warning that it would be a huge breach of confidence in the democratic process if the Government were to announce its decision, given that the consultation does not close until 26th August 2018.

The RLA does support longer-term tenancies in the private rental sector, but has warned against imposing these as a norm.

New survey results from the organisation have found that the majority of landlords (57%) believe that the use of financial incentives, such as tax relief, would be the best way to ensure that landlords offer longer-term tenancies to those that want them.

This was one of the options proposed in the Government’s consultation.

The Policy Director of the RLA, David Smith, responds to the press speculation: “It would be highly irregular for the Government to make an announcement on longer tenancies next week, before the consultation has even closed and it has had chance to properly consider all responses. As well as showing disregard for recognised procedure, it would suggest that the Government does not want to listen to those who will be directly affected by any change.

“The Government should work with landlords to introduce change that improves the rental process for both landlords and tenants, otherwise, there is a danger that even more landlords will leave the sector, which is already shrinking.”

Recently, the Royal Institution of Chartered Surveyors (RICS) has urged the Government to launch a review, as private landlords continue to leave the sector.

‘Broken tenant deposit system is forcing tenants into debt’, says Which?

Published On: August 14, 2018 at 8:04 am

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Number of First Time Buyers at Highest Level Since June 2017

The existing tenant deposit system is broken, and in desperate need of reform. A new report has revealed that one in six tenants are forced to wait for more than four weeks to get their deposit back.

Many tenants need to wait weeks for landlords to return money, plus on top of this, often need to challenge deductions that the letting agency or landlord has placed on their deposit.

Which? has found that 31% had to pay a new security deposit before having their previous one returned.

Due to the waiting times, 43% of tenants have been found to take on debt through credit cards, loans or overdraft, or borrowed money from family and friends, to cover the expense, according to Which?.

43% of tenants have been found to take on debt through credit cards, loans or overdraft

43% of tenants have been found to take on debt through credit cards, loans or overdraft

Deductions from deposits

The most common reason to be charged by at the end of tenancy is cleaning, which was cited by half of those who faced deductions, with eight out of ten of those people thinking those charged were unreasonable.

10% said they were given no reason as to why the deductions were made, and only 33% of tenants who raised a dispute noted that they were satisfied with the deposit scheme.

What can be done?

Alex Neill, Managing Director of home products and services at Which?, commented: “The number of people going into debt to cover the cost of a new deposit is concerning, particularly when you consider that many are forced to wait a significant time to get their previous one back, and could then face deductions that they don’t think are reasonable.

“The findings highlight how the deposit system is crying out for reform so that it is fit for purpose for the record numbers of people who are living in rented accommodation.

“We believe that the government must tackle the issues that we have identified in our report head on to ensure that the rental market delivers for consumers.”

A Ministry of Housing, Communities and Local Government spokesperson said: “We are determined to help the millions of renters in this country by banning unfair letting fees and capping tenancy deposits.

“The new measures in our Tenant Fees Bill will save renters around £240 million a year.

“The current tenancy deposit scheme works well but we have recently set up a working group to see if the system could be improved.”

RLA Warns Eviction for EU Nationals from their Rental Homes

Published On: August 13, 2018 at 8:51 am

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According to the Residential Landlords Association (RLA), thousands of EU nationals are at risk of losing their rental properties due to uncertainty about their status post-Brexit.

With Brexit fast approaching, there are a number of immigration anxieties causing huge uncertainty, despite the Home Office currently developing a new user-friendly scheme.

Under the 2014 Immigration Act, all EU nationals automatically have the right to rent property in the UK. Unless the law is changed, this will stand, whether they are currently in the UK or come to the UK subsequent to the UK leaving the EU.

Data from the RLA claims that 66% of EU nationals, excluding those from the Republic of Ireland, live in private rental housing. The organisation is concerned about a lack of detail that a no Brexit deal will have on EU nationals, including their rights to rent property in this country.

The RLA Policy Director, David Smith, said: “Landlords and tenants need urgent clarification from the Government on the rights that EU nationals will have to rent property immediately after the UK leaves the EU, especially in the event of a no deal Brexit.

“Without this, and without a commitment that no changes will be made to the ability of EU citizens to rent property without at least 18 months’ notice, landlords will find themselves unable to decide if tenancies should be renewed and new ones created for EU citizens.”

He insists: “We need clarity as swiftly as possible.”

The RLA is today writing to the Brexit Secretary, Dominic Raab, to raise its concerns over the issue.

Satbir Singh, the Chief Executive of the Joint Council for the Welfare of Immigrants (JCWI), said: “The Government’s refusal to give EU citizens who apply for settled status a document proving their right to live in the UK after Brexit is incomprehensible. Particularly in light of the hostile environment that requires landlords to check their tenant’s immigration status.

“JCWI’s research demonstrates that landlords will not go through complex immigration checks, online forms, or telephone helplines to check up on someone’s status, when they could just rent to someone with a British passport instead.”

He adds: “Landlords cannot be expected to act as border guards, and to ask them to do so is to play with the lives and livelihoods of immigrants and ethnic minorities. It must stop.”

A legal challenge of the Government’s Right to Rent scheme, led by the JCWI, has been set for December.

RICS Calls for Government Review as Private Landlords Quit Sector

Published On: August 10, 2018 at 9:29 am

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Private landlords are continuing to quit the sector all over the country, while tenancy demand continues to increase.

According to the Royal Insitute of Chartered Surveyors (RICS), that smaller landlords’ desertion is the most outstanding feature of the property market.

The RICS commented: “This pattern reflects the shift in the buy-to-let market in the wake of tax changes which are still in the process of being implemented, as smaller scale landlords exit the sector.

“Significantly, the drop in instructions is evident in virtually all parts of the country.”

However, the RICS said that its member agents were continuing to report rising tenant demand.

It said that as a result of this imbalance, rent rises can be expected.

The RICS is forecasting a rise of around 2% over the next year and by 15% by the middle of 2023.

Abdul Choudhury, RICS policy manager, said: “Our survey suggests that recent Government policy and legislation changes have impeded the growth of the Private Rented Sector, which is a vital part of a functioning homes market.

“Withdrawing tax breaks that small landlords relied on, placing an extra 3% on second home Stamp Duty, and failing to stimulate the corporate build to rent market, has understandably impacted supply.

“While the current focus is rightly on using regulation to improve the experience for tenants, the Government must urgently look again at the PRS as a whole, including ways to encourage good landlords.

“Ultimately, the Government must consider the impact of its policies, and if the wish is to move away from the PRS, it must provide a suitable alternative.”

Changes in the tax treatment of private landlords were initiated by former Chancellor George Osborne.

The RICS also reported that the sales market was dormant in July, with the number of newly agreed sales almost unchanged for the fourth month running.

It said new instructions were also flat, following two months of “very modest increases”.

Due to this, the RICS said, the average inventory on the books of estate agents is likely to remain close to historic lows.

The RICS survey had 304 responses, covering 620 agency branches.

Agents commenting on the lettings market as part of today’s survey repeatedly refer to lack of stock, high demand and increasing rent.

One agent, in Oswestry, said that his firm had no properties to let at the time of the survey.

Others criticised the Government for the tax changes, including what one agent called “crippling levels of Stamp Duty”.

Landlord Ordered to Pay £12k Compensation After Burning Tenant’s Belongings

Published On: August 10, 2018 at 7:59 am

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Landlords ordered to make rent repayments to tenants

It is no secret that the landlord and tenant relationship is a frequently debated issue. However, the fact remains, it is an issue which requires rectification.

A landlord has been ordered to pay a total of £12,000 compensation for burning a tenant’s possessions.

Buy-to-let investor, Tyrone Holmes, pleaded guilty to the charge of criminal damage at Mold Crown Court.

It was reported that Holmes took it upon himself to hire men to enter the flat that his tenant was renting, to clear it out, including household furniture and personal items such as clothing and electricals.

The tenant of the property, Lydia Russell was shocked upon arrival at the property she had occupied for six months. She then found her possessions to be missing.

The tenant, whose rent had fallen into arrears, then received a text message from her landlord, stating that her possessions had been removed from the property.

The Jury was informed that Holmes instructed workmen to remove possessions from the property, at Mold Crown Court.

Prosecuting barrister Brett Williamson said: “Some of her property was dumped on the pavement outside and some of it was taken away.

“As a result, criminal damage was caused and she [the tenant] never saw some of her possessions again.”

Judge Niclas Parry ordered the landlord to pay the compensation by 31 October.

We’re always reminding landlords about how to deal with tenants in an appropriate manner. If you should find yourself battling with tenants and are unsure about the most effective and legal ways to end the relationship, visit our website and sign-up for free to access our informative guide on the eviction process.

 

Tenancy Deposit Report Highlights Need for Government to Aid Renters

Published On: August 7, 2018 at 9:27 am

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The Centre for Policy Studies published a report on tenancy deposits last week, proposing that insurance-based options for landlords should be considered over tenancy deposits. With lower up-front costs for tenants and more solid protection in place for investments, this may be an idea worth considering.

The Down with Deposits: The Case for Rental Insurance report points out that in 2017, 4.79m households were in the private rental sector. This is 20% of all English households, and the number is continuously growing. The Centre for Policy Studies believes that, although the current housing crisis could be largely solved by the increase of home ownership, the Government should be doing what it can to help those who rent.

Robert Colvile, Director of the Centre for Policy Studies, has said: “This Government have a real opportunity to rectify the damage done by Labour to the rental market. By endorsing an insurance-based model as an alternative to a rental deposit, the Government would rectify an unfair system which polling shows is unpopular with hard-pressed tenants.”

Brian Sturgess, author of ‘Down with Deposits’, said: “Currently many people are simply unable to enter the rental market due to the need for a large upfront deposit to be provided before they move in.

“The proposals in this report offer a solution to the inherent unfairness of renters losing out on the interest they would have accrued on such a deposit, and often having to struggle to get their money back at all.”

Commenting on the Centre for Policy Studies report “Down with Deposits”, Dan Wilson Craw, Director of Generation Rent, said: “The tenancy deposit is a significant sum of money to find before you can move into a new home, and the system sorely needs to be made more affordable.

“Unfortunately proposals to replace it with an insurance policy will make participating tenants worse off, because they get nothing back when they move out. Even if you borrowed the money for a deposit and paid it off over a few months, the interest involved would still be less than the premium you’d pay for deposit replacement insurance.

“Instead of introducing a new Poverty Premium, we should make the existing system better by finding ways to allow payment by instalments, investing deposits so that tenants get a decent return on their money, and passporting them between tenancies.”