Posts with tag: tenants

15k for Allowing Tenants to Live in Appalling Conditions

Published On: August 3, 2018 at 8:59 am

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It is reported that 40 tenants were allowed to occupy properties that were in unsatisfactory conditions in a disused pub in North Wales. The landlord responsible, has been fined more than £15,000.

Hayden Rogers was letting out this property as a multiple occupation house, however, failed to acquire a House in Multiple Occupation HMO licence and, therefore, Flintshire Council decided to take necessary action.

The tenants occupying the property were ordered to vacate the property which was deemed unsafe for due to a number of faults, including electrical defect, overloaded sockets, missing smoke and heat detectors, while fire escapes were considered inadequate and extinguishers dates, expired.

The convictions face by the landlord were as follows:

• Not having a House in Multiple Occupation (HMO licence)
• Receiving fine of £2,000 after being found guilty in his absence
• 11 breaches of regulations and fined £1,000 for each offence

When accumulating the amounts of the fines, the total amount Rogers was fined was £15,633.

Cllr Chris Bithell, cabinet member for planning and public protection at Flintshire Council, said: “This is another positive result – a successful prosecution of a landlord in the private rented sector who has not complied with the required legal standards.

“It reflects Flintshire council’s commitment to ensuring homes in the private rented sector are in good repair and have all the necessary amenities.”

We’re constantly reminding landlords to ensure that they are compliant with regulations. For informative guides on how to comply with housing standards and regulations, visit our website and sign-up free for access.

Unnecessary Complexity Added by Shared Occupancy Test

Published On: August 2, 2018 at 8:55 am

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Categories: Lettings News

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The Government’s intentions to amend the rules on its ‘rent-a-room’ scheme which enables people to earn up to £7,500 a year tax-free from letting out a spare room, is likely to ‘add unnecessary complexity to the tax system, according to the Association of Accounting Technicians (AAT).

The introduction of a new shared occupancy test is yet to surface, meaning that relief can only be claimed when the landlord is present at the property during the rental period.

Furthermore, this means that those letting out their whole property will now have to pay more tax or to start paying tax if they have not done so previously.

It is the belief of the Government that the newly introduced changes will return the relief to its original purpose and confirm its role in the wider property tax regime.

The government policy paper states: “This ‘shared occupancy’ test will provide that the individual, or a member of their household, in receipt of income, must have a ‘shared occupancy’, a physical presence for all or part of the period of the rental, with the individual whose occupation of the furnished accommodation is generating receipts.

“Those taxpayers that do not satisfy this test will no longer be eligible to claim rent a room relief on those receipts.”

But the AAT fears that the new test will add unnecessary complexity to the tax system and has other shortfalls, particularly around how shared occupancy can be proved.

Phil Hall, AAT’s Head of Public Affairs & Public Policy, commented: “This will add unnecessary complexity to the tax system. Many will be forced to complete a self-assessment tax return when they otherwise wouldn’t and many more will be required to laboriously keep records of when they were and weren’t at home.

“It’s also likely to reduce accommodation availability and choice because many “landlords” will simply choose not to rent out their spare rooms when they are not present.

“Rent-a-room relief is one of the few ways in which people can supplement their annual earnings in a relatively simple and tax efficient manner but this new test will change that.”

Hall added: “If no proof is required then the scheme will be open to widespread abuse. If proof is required, it’s difficult to see exactly how shared occupancy can be proven in practice, especially when this may relate to irregular nights here and there. Enforcement will be a nightmare and I’m not sure HMRC have properly thought that through.

“A shared occupancy test is a headache being created for what the Treasury’s own analysis states will be a “negligible” impact on tax receipts.

“The best solution for landlords, tenants, policymakers and the economy would be to drop these plans and allow rent-a-room relief to continue as it has for over 25 years as a simple to administer, easy to understand tax relief that’s available to all.”

Incentives to Take in People at Risk of Homelessness Offered by BTL Landlords

Published On: August 1, 2018 at 9:36 am

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In an attempt to encourage landlords with properties in Barrow-in-Furness to take in those at risk of being homeless, free gas and electrical checks are being offered among incentives.

Due to the current housing shortage, Cumbria has left some local authorities with little alternative but to consider new methods to increase the housing stock available to them in addition to those applying for affordable homes.

Barrow Borough Council has decided to address the issue of the growing housing crisis in the borough by attempting to encourage more private landlords to take on new tenants by launching a new scheme.

What are the alternative incentives being offered?

 Besides free gas and electrical checks being offered, other offers include smoke and CO2 detectors, designed to ensure that the properties are compliant with standards agreed by the Council.

Chair Committee Leader of Borrow Council, Cllr Dave Pidduck commented: “It’s an initiative that is really important. We have landlords that have short and long-term apartments.

“If we can get them [landlords] to join the scheme that will be for the benefit of the town but also for then. They will benefit working with the local council.”

Further contributing to the discussion was Cllr Brendan Sweeney, who said: “It’s a no brainer. There is a huge number of private sector houses in the borough and there are really good landlords used to taking people in. This is encouraging more to have a go at it.”

 

 

Number of Tenants Experiencing Price Hikes Increases

Published On: July 30, 2018 at 8:06 am

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The number of private tenants experiencing rent price hikes has increased to a ten-month high, according to the Private Rented Sector Report for June from ARLA Propertymark (the Association of Residential Letting Agents).

The study assesses conditions across the private rental sector in the UK.

Price hikes

The amount of tenants witnessing price hikes in June rose to 35%, which is up from 28% in May. This is the highest level recorded since August 2017, when the number of tenants experiencing price hikes also stood at 35%.

On an annual basis, price hikes have increased by 13% from June 2017.

Rental stock

The amount of rental properties managed per ARLA Propertymark member letting agent branch rose to an average of 191 in June. This is the highest figure recorded for this year so far, up by 3% on May, when agents managed 186 per branch.

Tenant demand

The report also found that the number of prospective tenants registered per member branch increased in June, at 71, compared to 60 in May – an 18% rise.

Landlords selling

Positively for the health of the lettings market, the amount of landlords exiting the sector by selling their properties dropped to four per branch in June.

David Cox, the Chief Executive of ARLA Propertymark, says: “It’s positive to see the number of properties available to rent slowly rising, but it still isn’t anywhere near enough to slow down the pace of rent rises, which are continuing to climb.

“Over the last few years, we’ve seen taxes to both purchase and let a rental property increase. This combination – coupled with continued regulatory change – has unsurprisingly started pushing landlords out of the market. We predicted back at the end of last year that renters would be in for a rough ride in 2018, and we warned Government about the impact on the market. Our fears are now being realised and renters are suffering as a result.”

Is Bexley the Place to Be for London Commuter-Tenants?

Published On: July 27, 2018 at 8:56 am

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Property website OnTheMarket.com has released data showing that of all the ways to rent in London, living as a group of four in Bexley is the cheapest.

The data assumes the scenario that this situation involves one person per bedroom. It has then used averaged private rental prices in order to determine whether one, two, three or four bedroom properties provide the best value in each London borough.

Looking at a four-bedroom property in Bexley, tenants would be paying a monthly rent price of £1,633.52. However, if this were to be split between four people, they would be paying £408.38 each. The average cost of renting a room in London is £629 per month, according to the Government’s April 2017 – March 2018 Private Rental Market Summary Statistics.This means that it is 35% cheaper to rent in Bexley.

Other benefits of this borough include travel. Bexley station is situated in Travelcard zone six, which is only about 14 miles away from London Charing Cross station. This means a journey time of 38 minutes when travelling by a Southeastern train. Looking at the costs, a daily return journey would be as much as £6.23 or £62.30 for a weekly season ticket. A monthly season ticket would cost £239.30.

Take a look at the below ‘best value’ table to see the cheapest scenarios in each area of London. It shows that Bexley is the cheapest borough for each scenario, assuming that the living situation is one person per bedroom.

Bexley

Contrastingly, the ‘most expensive’ table reveals the most costly scenarios in each borough of London. This again assumes one person per bedroom.

Bexley

Unsurprisingly, the boroughs with the highest rents are within Central London.

 

Views from estate agents

Helen Whiteley, Commercial Director at OnTheMarket.com commented: “The data shows that at a time when tenants in the capital are becoming increasingly stretched, they can potentially reduce their overall rental outgoings by examining different cost scenarios based on the number of flatmates. The findings also highlight that considering moving to a different borough can save notable amounts of money for the difference of just a few miles.”

Charlie Benn, Director of Lettings at Anthony Martin estate agents in Bexley has said:“We often see people relocating from price inflated areas within South East London to much more affordable Bexley postcodes.

“With a journey time into central London falling within 45 minutes to an hour, at a time when two hour commutes are on the rise, it proves ideal for city workers. Bexley is also within an easy commute to the highly anticipated Crossrail Link (at Abbey Wood), which is due to open in December 2018, providing more time saving commutes.

“The suburban area of Bexley provides the best of both worlds with its close proximity to excellent schools, green spaces and affordable prices while also within driving reach of places such as Bluewater Shopping Centre and the centre of London under an hour away.”

Jake Blackman, Branch Manager, Acorn, Bexleyheath, commented: “This research confirms what we’ve long predicted – that Bexley Borough is going to be in high demand for the next few years. It’s one of the reasons we’re opening two more offices in the borough (Sidcup and Blackfen), in addition to our existing ones in Bexleyheath and Welling.

“With the introduction of Crossrail into the area, improving the already vast transport links into the city, and the plethora of good schools and entertainment options, Bexley has proved to be a hotspot for those moving out of the humdrum of city life.

“This is mainly due to Bexley still being very much an affordable place to rent. In addition, there aren’t many boroughs that can offer the diverse entertainment and shopping facilities of Bexley. These include the Broadway Shopping Centre in Bexleyheath which has modern shops and food chains, complemented by Bexley Village which has a more alternative array of independent restaurants, boutique shops and bars.”

Majority of London Tenants Expect Rent Discounts for Poor Internet Connections

Published On: July 26, 2018 at 8:09 am

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The majority of London tenants expect to receive a discount on their rent prices for poor internet connections in their homes, a new study from property firm Cluttons reveals.

Private tenants are certainly pickier about the type of property that they are willing to rent now than they were a generation ago. This means that landlords can no longer get away with offering rundown properties with second-hand furniture and simply expect the rent to come streaming in. But, above all else, many young renters have come to expect high speed, reliable internet connections.

In London, 73% of tenants consider a good internet connection to be important when choosing a rental property, while 70% of those that work from home at least one day a week would reconsider renewing their tenancy agreement if their homes had poor internet connections.

The research also found that almost 60% of those living in the capital would expect some discount in their rent as compensation for poor internet connections, with close to one in five requesting a 10% reduction.

Unfortunately, slow and unreliable internet connections plague many residential properties in the capital, the study revealed, which was conducted in partnership with YouGov.

The report shows that London currently ranks 30 out of 63 UK cities for the number of premises covered by ultrafast broadband and is positioned in the bottom five UK cities for 4G coverage, which is clearly unacceptable for many private tenants.

John Gravett, the Head of Infrastructure at Cluttons, comments: “As London’s property market becomes more competitive, it is important for landlords to think of their tenants as customers and offer them properties that meet current demand.

“While traditionally it would fall to tenants to find the best offering from broadband service providers, now landlords are realising how important it is to make sure their buildings are well connected.”

The research found that half (49%) of landlords are already working to improve internet connections in their buildings and, of those surveyed, 72% said that this is a direct result of tenant demand.

Gravett continues: “Good connectivity has knock-on effects to many aspects of our lives, from how we communicate with each other to maintaining flexibility and, therefore, diversity in the UK’s workforce.

“Despite this, the British capital not only lags behind other UK cities, but it also ranks poorly compared to other European hubs, as well. In fact, London ranks 29th out of 30 EU cities last year for 4G speeds.”

He concludes: “We believe connectivity is now a utility, not just a nice-to-have, and our research clearly shows that there is a commercial benefit to both commercial and residential landlords in prioritising it as such.”

Landlords, have you considered how poor internet connections could be putting potential (and existing) tenants off your properties? This study proves that it is definitely worth looking into!