Posts with tag: tenants

Ban on agent fees looks unavoidable

Published On: May 19, 2017 at 9:50 am

Tags: ban on fees,fees,landlords,letting agent fees,tenants

A leading property campaigner has warned the property sector to brace themselves for the proposed ban on letting agent fees to come into force.

Ajay Jagota wants the sector to, ‘stop living in complete and utter denial’ about the forthcoming proposals,’ noting that the ban has been promised by all three major political parties in their election manifestos.

Ban on Fees

The three main parties talk about the ban as follows:

Conservatives: The Tories confirm that they will press ahead with plans for the letting agent fee ban and promise commitment to, ‘improve protections for those who rent, including by looking at how we increase security for good tenants and encouraging landlords to offer longer tenancies as standard.’

Labour: The opposition party want to see a Department of Housing, which will oversee the standards and affordability of homes in the sector. It also calls for three-year tenancies to become the norm and for rent rises to be capped with inflation.

Lib Dems: Called for mandatory licensing of landlords, three-year tenancies and a cap on upfront tenancy deposits.Mr Jagota, founder of sales and lettings firm KIS, observed: ‘The Letting Agent fee ban is the latest in a long line of things the industry believed would never happen until they did. If it wasn’t obvious enough, the manifestos we’ve seen this week make it clear those people need to stop living in complete and utter denial.’[1]

‘It is not a case of whether Letting Agent fees are going to be banned but how the ban will be implemented. It’s not even a case of when the ban comes as legislating for it is likely to be low hanging fruit compared to other pledges on housing so I’d expect to see it in the first Queen’s Speech of whatever government we have after June 8,’ he continued.[1]

Ban on agent fees looks unavoidable

Details

Moving on, Jagota noted: ‘All three manifestos are, however, very light on detail when it comes to the form the ban will take. Do they mean an outright ban of any kind of fee being charged to tenants or will things like referencing fees be exempt? It’s over these issues that the industry now needs to mobilise.’[1]

‘The most significant pledge on renting of any of the parties is the Liberal Democrats deposit cap. It’s not a policy I agree with, but its very existence means that deposit reform is now unavoidably on the agenda.’

‘I can already hear some people saying ‘it’ll never happen’, to which I say this: Two years ago Labour plans to ban letting agent fees were roundly mocked by the Conservatives. Today it’s unthinkable that the Conservatives will go back on banning them. Like it or not, deposit reform has arrived,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/tenancy-deposit-reform-unavoidably-on-the-agenda.html

Letting agents urged to ensure eviction notices are correct

Published On: May 19, 2017 at 8:57 am

Author: Em Morley

Categories: Landlord News

Tags: eviction notices,landlords,rent arrears,Section 21,Section 8,tenants

Letting agents are being urged to ensure that they serve eviction notices in the correct manner, as the so-called ‘peak eviction’ period looms.

Specialist tenant referencing service Rent4sure suggests that particular attention should be paid to both Section 8 and Section 21 notices, which are two of the most complex.

Eviction Notices

A section 8 notice can be served should a tenant be in breach of an Assured Shorthold Tenancy (AST) agreement and is the most common way to combat rent arrears.

Luke Burton, Sales and Marketing Director at Rent4sure, noted: ‘A landlord or their agent should serve a Section 8 notice under grounds 8, 10 and 11 as soon as the tenant defaults on two months of rent arrears.’[1]

‘This differs slightly when the rent is paid weekly, or quarterly and in some instances, you may have to wait for a further period before serving a Section 8 notice under the mandatory ground 8,’ he continued.[1]

Mr Burton noted that if rent is paid weekly or fortnightly, eight weeks’ rent must be overdue before a Section 8 notice can be served.

For quarterly rent payments, there must be at least one quarter’s worth of rent outstanding- ie a tenant must be at least three months in arrears.

‘If the rent is paid yearly, at least three months’ rent must be three months in arrears,’ Burton added.[1]

Letting agents urged to ensure eviction notices are correct

Section 21

Meanwhile, a Section 21 notice should only be served at the conclusion of a fixed term, or as per an agreed break clause within the tenancy agreement. This type of notice should be served giving the tenant two month’s worth of notice.

However, if the tenancy agreement commenced before October 1^st 2015, notice can be served at any time.

Burton explains that should a tenancy have commenced post 1^st October 2015 agents are not permitted to serve a Section 21 until the first four months of the tenancy have passed.

Government Form 6A-only valid for six months from date of issue- should be used for all tenancies starting after this date. This includes renewals.

Letting agents and landlords can source more information in our Eviction Notice Guide for Landlords.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/5/agents-told-ensure-eviction-notices-are-correctly-served

Lib Dems make housing pledges in manifesto

Published On: May 18, 2017 at 11:44 am

Author: Em Morley

Categories: Property News

Tags: landlords,Liberal Democrats,manifesto,rental sector,tenants

Election fever is now in full swing, with all of the key political parties unveiling their manifestos for the coming years.

Yesterday saw the Liberal Democrats unveil their plans, which centered around calling another EU Referendum, in the unlikely event that they get voted into office.

Housing and Landlords

Like the Labour party, the Lib Dem’s back the controversial ban on letting agents’ fees levied on tenants throughout England.

What’s more, the Liberal Democrat’s called for:

Tenants to be given first refusal to buy the property they are renting from their landlord, should they decide to sell up during the tenancy

Increased tenancies, of three years or greater, with inflation-linked annual rent increases to give tenants more security

More protection against rogue landlords through mandatory licensing, with full access for tenants to a database of rogue landlords and agents

A ban on letting agent fees, with the addition of capping upfront deposits and increasing standards

Assistance for helping young people into the rental market by introducing a Help to Rent scheme. This would provide tenancy deposit loans for all first-time tenants under 30

Lib Dems make housing pledges in manifesto

For wider housing issues, the party’s manifestos calls for a new ban on new homes being advertised overseas, before they are marketed to UK residents.

Under the Liberal Democrats, there would also be at least 10 new garden cities and an end to some housing association Right to Buy pilot schemes.

Many tenants living in slum-like conditions: Shelter

Published On: May 16, 2017 at 11:19 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,Shelter,tenants

An extremely concerning new report conducted from housing charity Shelter has revealed that hundreds of tenants are living in slum-like conditions.

The charity suggests that many renters are being plagued by damp, mould, infestations and electrical faults within their rental accommodation.

Concerns

In order to compile the report, Shelter, alongside You Gov, took statements from 300 tenants across large urban regions.

31% of these tenants expressed their concerns over damp and mould. 16% said that they had faulty electricity within their rental property.

One particular respondent claimed that the damp in his accommodation caused damage to his clothing.

He said: ‘I have been living in awful conditions in this flat. There’s a lot of mould on the walls and all over the furniture. I’ve had to throw away my clothes and go to the doctors because I’ve been ill with chest infections from breathing in the mould.’[1]

Many tenants living in slum-like conditions: Shelter

Damp Issues

It is imperative for landlords and tenants like to be aware of the risks that damp brings. There are a number of residential damp elimination and preventative measures that can be taken in order to eliminate these risks.

Stuart Cavanagh, Head of HR at Novus Property Solutions, believes tenants should become more informed on the dangers of damp and how to protect their rental properties.

Mr Cavanagh, addressing tenants, said: ‘The majority of renters are fortunate enough to have helpful, professional landlords who will see to complaints immediately. These are principles, however, that not all landlords work by. In such cases, it sadly falls onto the tenant to make better preparations and understand how to protect the property. In the long-run, being better informed will not only help you appeal to your landlord, it will also prepare you for future renting and dealings with landlords in general.’[1]

‘The health risks are very real, with children and those suffering respiratory ailments most susceptible – an informed approach is the best preventative measure. Know what to look for, and take action accordingly.’[1]

[1] http://www.propertyreporter.co.uk/landlords/shelter-a-third-of-uk-tenants-living-in-slum-like-conditions.html

Rugby Borough Council bans landlord

Published On: May 12, 2017 at 2:57 pm

Author: Em Morley

Categories: Landlord News

Tags: landlord,landlords,Rugby Council,tenants

A rogue landlord from Rugby who rented out rooms above a bar in the town centre has been banned from being a landlord, after he put the lives of his tenants at risk.

Mr Dean Dunkley was additionally handed a £41,000 legal bill from magistrates after being found guilty of a number of offences. These included obstructing the investigation carried out by the Ruby Borough Council’s housing enforcement team.

Bars

Mr Dunkley was responsible for running AJ’s bar, a four-storey building located in Dunchurch Road.

He was fined almost £5,000 in April 2016, after pleading guilty to 25 offences under the Housing Act 200. This prosecution was brought about by the council after an inspection of the property uncovered numerous safety breaches.

Following this prosecution, Rugby Council’s housing enforcement team was given a warrant to carry out a further inspection of the property in August.

Upon inspection, a housing enforcement officer discovered a range of issues, including:

faulty fire doors
broken electrical sockets
holes in windows
fridges obstructing emergency exits
broken emergency lighting

Rents

At the time of the inspection, Dunkley was raking in around £820 per week in rents.

In all, he was found guilty of 19 charges and fined £39,000, including 8,000 for operating a HMO without a licence. What’s more, he was ordered to pay £2,264 in costs and a victim surcharge of £170.

Rugby Borough Council bans landlord

Mr Dunkley was subsequently issued with a Criminal Behaviour Order, banning him from being involved in letting or managing a residential property for rent in the borough until May 2019.

Standards

After the hearing, Sean Lawson, Ruby Borough Council’s head of environment and public realm, observed: ‘We’re happy to work with landlords to explain the legislation surrounding HMOs and offer advice on work which needs to be carried out in order for a property to meet safety standards.’[1]

‘But our priority has to be the safety of tenants and, when a landlord shows complete contempt for the law, we have no hesitation in taking the case to court.’ (1)

‘The severity of the fines imposed by magistrates in this case, together with the issuing of a Criminal Behaviour Order, shows no landlord can afford to cut corners when it comes to ensuring the safety of tenants.’ (1)

[1] Mike Green, Rugby Borough Council: Rugby man handed landlord ban after putting lives of tenants at risk, Press Release, 12.05.17

Buy-to-let expert calls for sector reforms

Published On: May 10, 2017 at 9:20 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,private rental sector,rental market,rents,tenants

A leading buy-to-let property expert has called for better enforcement and streamlining of legislation within the private rental sector.

Kate Faulkner wants to see the abolishment of what she calls a ‘two-tier’ rental market, where thousands of renters are forced to settle for, ‘sub-standard, illegal or even dangerous homes.’

Reforms

Faulkner, founder of PropertyChecklists.co.uk, is urging major reforms in the sector, in a report commissioned by the TDS Charitable Foundation.

In this report, Faulkner argues that there are a number of rules and regulations in the sector that are serving only to create confusion among landlords, agents, tenants and enforcement bodies alike.

It is suggested that a typical private landlord in England now has to comply with around 150 rules and regulations. This figure increases should the landlord wish to rent out their property to someone on benefits.

‘There are 4.4 million rental properties in England alone so reforming the market would help millions of people. Legislation should be streamlined and funding should be put in place to support enforcement,’[1] Faulkner noted.

‘Legislation varies dramatically across the UK, with different rules for England, Scotland, Wales and Northern Ireland. Landlords are typically over 55, and employed full-time, so often struggle to keep up with what constantly changing legislation they need to be aware of, and what bodies are responsible for enforcing them. Trading Standards, the Home Office, the Competition and Markets Authority, and local councils all enforce elements of private rental policy, and there is no single point of guidance for landlords and agencies to make sense of where jurisdictions begin and end,’ she continued.[1]

Buy-to-let expert calls for sector reforms

Geographical Disparities

In addition, Faulkner highlights the fact that there are substantial geographical differences from county to county.

London sees a massive difference in the number of rogue landlord prosecutions. The most recent figures indicate that Newham prosecuted 359 rogues, whereas Lambeth and Hammersmith had only 9 each.

However, Faulkner claims that local councils are not always to blame:

‘The issue needs to be tackled on a national level to ensure uniformity in enforcing laws designed to protect both tenants and landlords. Law-abiding agents and landlords are jumping through not inconsiderable hoops, and forking out to meet regulations, while the cowboys know enforcement is lax, and are cutting corners and costs.’[1]

Concluding, Faulkner said: ‘We need a coordinated national strategy on weeding out unenforceable, unclear, and confusing rules, and creating national standards, and enforcement policy. Whoever forms the next government must commit to backing an education campaign for those letting out property to inform them of the law, and how to raise complaints or issues.’[1]

‘By tightening up on implementing legislation, tenants will know what to expect, and how to bring rogue landlords to heel. By tackling the causes of the current two-tiered rental market, the quality of the UK’s rental stock will increase, providing better homes for tenants, and better standards for landlords and agents.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/reform-the-private-rented-sector-so-that-it-is-fit-for-purpose-says-expert