Posts with tag: tenants

Insured Guarantor Service for Students and Professionals Expands

Published On: July 20, 2017 at 8:21 am

Tags: guarantors,student landlords,students,tenants

Insured Guarantor Service for Students and Professionals Expands

Housing Hand, the UK’s only secured and reliably insured guarantor service for students and working professionals from the UK or abroad, is expanding internationally to Europe, Asia and the Far East.

The firm has recently launched in India, with a base in New Delhi, and aims to expand exposure in the region. Housing Hand is hoping to increase the number of Indian students and professionals moving to the UK using its guarantor service.

The company has also formed a partnership with 51Offer in China – the largest firm working with Chinese students coming to UK universities. A formal partnership agreement was signed in Shanghai and Housing Hand is working closely with 51Offer to further expand the brand in China.

The Managing Director of Housing Hand, Jeremy Robinson, comments on the expansion: “We currently work with many international students who have begun their study in the UK. Our partnerships with UK and international accommodation providers will help to grow the volume of applicants that are looking to secure a UK guarantor, before reaching the UK.

“We have met with many universities and accommodation providers who are keen to reduce their financial risk and widen the pool of potential tenants. By expanding internationally, we can further add to the secure and risk-free tenants we hand over to accommodation providers.”

He continues: “We are looking to become the first international guarantor service, with plans to launch in Ireland later this year, followed by a rollout to France in early 2018 and America in 2018/2019.

“The rental markets overseas are very different from the UK, and there are obvious legal and operational challenges ahead of us. However, we see real demand for our service in France, as thousands of UK nationals, both students and professionals, are renting there.”

Are you a student landlord? If so, you may find that this insured guarantor service is suitable for your tenants, either UK nationals or overseas students. It is worth looking into ahead of the new academic year.

Case of letting agent fraud described as ‘shocking and alarming’

Published On: July 19, 2017 at 1:22 pm

Author: Em Morley

Categories: Property News

Tags: deposit,renters,tenancies,tenancy agreement,tenants

A case of a rogue letting agent convicted of £200,000 worth of fraud involving deposits has been described as ‘stunning and alarming.’

Mr Timothy Shinners of Bolton failed to put any of the deposits he received from tenants into a tenancy deposit scheme over a six-year period. Instead, he spent the money himself.

Shockingly, the case went to private prosecution after the police failed to investigate.

Deposits

A director at Platinum Properties in Bolton, Mr Shinner took at least £76,352 of company money. He was last week sentenced to three years behind bars and banned as acting as a director for the company for at least eight years.

The jury at Bolton Crown Court found Mr Shinner guilty of:

Failing to comply with statutory requirements surrounding the registering of tenancy deposits in a Government approved scheme
Fraudulently adapting tenancy protection documents to cover-up irregularities

The court heard that Shinners knowingly received deposits and did not transfer them into one the three Government approved schemes.

These deposits totalled at least £200,000 and were only registered and protected following a cash injection from another company director. This was described as an ‘act of decency’ by the Judge.

Reports

This matter was reported to the police, only for them to decline to investigate.

A police statement said: ‘There are fewer police officers investigating reports of fraud at a time when the volume of fraud is increasing significantly,’ citing difficult decision that, ‘may not be satisfactory to the victim.’[1]

It added: ‘Due to the changing face of crime, we are not in a position to investigate each report of fraud.’

Case of letting agent fraud described as ‘shocking and alarming’

‘Alarming’

Deposit reform campaigner Ajay Jagota, founder of deposit-free renting platform Dlighted, offered his response to the case:

‘This case is stunning and alarming. £200,000 of fraud involving deposits taking place over six years – and not even the police could stop it. Some people are trying to convince us that nothing needs to change in the tenancy deposit system. Cases like this are proof things do. How many more times does this need to happen before something is done?

My real concern is that it appears there are countless agents who under current schemes are allowed to keep these deposits and appear to use this money for their person or day-to-day business use because they think it’s a handy pot of cash lying around. This money legally belongs to the tenants and should not be left unregulated – not least when we are talking about overall deposits which will soon be close to £6 Billion. No wonder the police don’t have the resources to police it all.

What happens when the money supposedly held in a segregated account runs out? They evidence suggests that these companies close shop and go under. And where does that leave their landlords and tenants?

We keep a running total of the deposits crooked letting agents are convicted of stealing each year, and will be publishing figures for the second quarter of 2017 next week. But all the indications are that this year’s figure will exceed the £1m recorded last year. In a sector which many are desperate to raise standards these incidents which are far too frequent do little to demonstrate it is changing for the better.’[1]

[1] http://www.propertyreporter.co.uk/landlords/letting-agent-jailed-three-years-for-deposit-fraud.html

UK rents rose by 1.8% in year to June, says ONS

Published On: July 19, 2017 at 9:47 am

Author: Em Morley

Categories: Property News

Tags: landlords,rents,tenants,UK rents

Rental prices paid by private tenants in the UK increased by 1.8% in the year to June 2017, according to the most recent figures from the Office for National Statistics (ONS).

This was the third consecutive month that rents increased by this figure, led by growth in England, where rental prices increased by 1.9%. Wales saw growth of 1.1% and Scotland saw rises of 0.2% over the same period.

Increases

Between January 2011 and June 2017, private rental prices in the UK increased by 14.8%, driven by price increases in London. However, when the capital is excluded from the data, rental prices actually rose by 10.8% over the year.

Despite historical growth in prices within London, private rental prices here rose by 1.3% in the year to June 2017. This was 0.5% less than the national 12-month rate of growth.

UK rents rose by 1.8% in year to June, says ONS

Pressure

John Goodall, CEO and co-founder of buy-to-let specialist lender Landbay, stated: ‘While the pace of house price growth may have slowed, house prices still continue to rise, ultimately meaning that fewer people can afford to buy, which can only place greater pressure on the UK’s rental sector. For that reason it’s essential that new construction is planned across all tenures, so that rents don’t escalate to the point where they’re inhibiting aspiring homeowners’ ability to save for a deposit.’[1]

‘Quite simply, we need to build more purpose built rental homes to support those hoping to take their first steps onto the property ladder,’ Goodall went on to observe.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/uk-rents-increase-by-1-8-says-ons

Landlord fined heavily for changing locks

Published On: July 17, 2017 at 1:32 pm

Author: Em Morley

Categories: Landlord News

Tags: buy to let landlord,eviction process,rent,rental property,tenants

A buy-to-let landlord has been told to pay just over £2,800, after pleading guilty to a sinister charge of: ‘harassing an occupier to give up the occupation of their premises.’

Mr Nathan Shipley changed the locks to his rental property in order to prevent the tenant, who did not pay their rent, from gaining access to the property.

In addition, Mr Shipley tried to remove the doors and windows in order to prevent anybody else from residing at the property.

Fines

Mr Shipley’s actions saw him eventually fined £2,000. What’s more, he was ordered to pay court costs of £602.20 and a surcharge of £200, bringing the total to £2,802.20.

North Staffordshire Justice Centre was told that Mr Shipley took the law into his own hands, claiming he had been left thousands of pounds out of pocket after his tenants didn’t pay their rent.

Prosecutor Ashleigh Pennell stated: ‘The defendant changed the locks to the front door of the property with no court order in place. The defendant attempted to remove windows and doors to stop the future occupation of the property. Mr Shipley was not concerned with prosecution as his tenant was in rent arrears.’[1]

Landlord fined heavily for changing locks

Eviction

Simon Harris, chief executive of Stoke-on-Trent Citizen’s Advice Bureau, noted that while he could see the landlord’s frustration, there are correct ways to evict a tenant!

Mr Harris said: ‘A landlord can evict their tenant if they are in breach of the tenancy agreement, although it is dependent on a breach in the agreement. There is a legal procedure of taking the matter to court and persuading that there is an offence which warrants eviction. What a landlord cannot do is evict without following procedure – that is harassment and a criminal offence.’[1]

‘If a tenant is concerned about a landlord then they can contact the CAB for free legal advice and if necessary contact the council or police because it could be a criminal matter.’[1]

Those looking for further information on the eviction process should check out our handy guide.

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/landlord-fined-for-changing-the-locks-to-keep-tenant-out

Tuition fees and Brexit are harming student rental market

Published On: July 17, 2017 at 10:11 am

Author: Em Morley

Categories: Property News

Tags: landlords,student rental market,student tenants,students,tenants

A lettings agency specialising in the student sector believes that the fall in the number of applications for higher education in the UK is threatening to turn the shortage of student accommodation into a surplus.

Despite the university academic year starting in two months, StudentTenant.com believe landlords are still trying to attract tenants in a number of key areas.

Demand

For example, demand for student properties in Exeter is at just 62%, followed by Reading and Bath, where demand stands at 52%.

In all, the number of people applying for a higher education course in Britain this year has slipped by over 25,000 – or 4% – compared to the same period last year.

This comes after the announcement that university tuition fees are to rise from £9,000 to £9,250 this year. In addition, loan interest rates are to increase by 1.5%, from 4.6% to 6.1%.

What’s more, the number of EU students looking to enter higher education in the UK has fallen by 5%, from 51,850 to 49,250.

As a result, StudentTenant.com says that its research uncovers a ‘drastic shift from an undersupply in previous months.’

Tuition fees and Brexit are harming student rental market

Strain

Danielle Cullen, Managing Director at StudentTenant.com, noted: ‘Landlords are starting to feel the strain of finding tenants for the next academic year, as many still have rooms left to let. I personally feel the blame sits firmly on decisions made by our government. We’re now seeing supply for student properties outgrowing demand in some areas, which could spell a huge problem for the student lettings market and the future of private student landlords.’[1]

‘Whilst the fees and interest are having an impact on British applications, it seems that post-Brexit, some EU students don’t want to study in the UK. A year on, there’s still uncertainty for EU students. Naturally, they’re worried about how it could affect them and they’re not applying to our higher educational system as a result,’ Cullen concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/7/brexit-and-tuition-fees-hurting-student-housing-sector-warns-agency

Tenants Reluctant to Report Repairs for Fear of Retaliation, Report Claims

Published On: July 14, 2017 at 9:49 am

Author: Em Morley

Categories: Landlord News

Tags: evictions,private rental sector,repairs,tenants

A new report from Citizens Advice claims that private tenants are reluctant to report repairs to their landlords for fear of retaliation, such as potential evictions, blacklisting and rent rises.

The study found that four in ten private tenants are too afraid to make complaints, which largely explains why sub-standard rental properties are the most common issue reported to the independent charity from those living in the private rental sector.

The report shows that more than two in five tenants (41%) – the equivalent of 1.85 million households – have waited longer than they usually should have for their landlord to carry out a repair in the last four years.

Tenants Reluctant to Report Repairs for Fear of Retaliation, Report Claims

Citizens Advice now wants to see the significant power imbalance between landlords and tenants addressed.

Over the past year, Citizens Advice helped people with more than 16,000 problems around private rental sector homes in bad conditions.

Private landlords have a legal responsibility to fix problems in a reasonable time – usually a month or less, or 24 hours for the most urgent cases.

When tenants wait longer than is deemed reasonable, a court order can be issued to the landlord, or the tenant can be awarded financial compensation. In some cases, both will be served.

However, this new research suggests that tenants are not holding their landlords to account, due to fears that they could lose their homes.

Some 57% of tenants said that they did not want to force the issue with their landlord for fear of being evicted. More than half – 51% – also said that another concern was that their landlord would increase the rent if they continued complaining.

Rather than pursuing the issue with their landlord or taking formal action, Citizens Advice found that tenants often take matters into their own hands, with 30% carrying out repairs themselves and 14% paying for repairs out of their own pockets.

One family who turned to Citizens Advice for support had spent £10,000 of their own money fixing a number of issues in their home, including a broken heating system, after repeated complaints to their landlord failed.

The charity is calling for better protection against retaliatory evictions by rolling out independent complaints bodies – or alternative dispute resolution (ADR) schemes – across the private rental sector.

The Chief Executive of Citizens Advice, Gillian Guy, insists: “Renters should be able to ask for repairs to their home without fear of retaliation.

“Homes in poor condition are the most common private rented sector issue people turn to Citizens Advice for help with. Issues such as broken fittings, faulty electricals or leaks can make life hard for renters, and can even lead to ill health. But renters aren’t pursuing their rights to repair because they are worried their landlord will put up their rent or evict them. To add to this, formal routes to redress aren’t being used either because they’re too difficult and expensive.”

She continues: “Rent is the most expensive costs households face, but protections for renters simply don’t reflect this. The new Government needs to make it easier for people to have their rights enforced when their home is in poor condition.

“The redress process also needs to give renters protection from retaliatory action, so they feel confident reporting a problem in their home and don’t feel like their only option is to dip into their own pocket.”

While this study highlights the issues still tarnishing the private rental sector, the latest English Housing Survey appears to dispel certain myths surrounding private renting: /latest-english-housing-survey-dispels-myths/