Posts with tag: tenants

Government to Consult on Letting Agent Fee Ban in Spring, Confirms Housing Minister

Published On: January 27, 2017 at 11:31 am

Tags: letting agent fees,letting agents,lettings fee ban,tenants

The Government will consult on the letting agent fee ban for tenants in spring, the Housing Minister, Gavin Barwell, has confirmed.

Government to Consult on Letting Agent Fee Ban in Spring, Confirms Housing Minister

Barwell responded to requests from John Healey, the Shadow Secretary of State for Housing, to find out when the Government plans to “bring forward legislative proposals to ban letting fees for tenants” and when it plans for “that ban to come into effect”.

The questions follow Chancellor Philip Hammond’s announcement in last year’s Autumn Statement that letting agent fees charged to tenants will be banned in England.

The Housing Minister has previously expressed his support of the ban.

Barwell responded to Healey’s requests: “As my Noble Friend, Lord Bourne of Aberystwyth, said in the House of Lords on 19^th January 2017, the Government is committed to introducing legislation as soon as possible to implement the ban on letting agent fees for tenants.

“We will consult in the spring on the detail of the ban and will consider the views of property agencies, landlords, tenants and other stakeholders before introducing legislation. Impact assessments will follow the consultation and support the detail of banning fees to tenants.”

Barwell will need to take into account the views of other MPs, too, with one Conservative MP insisting that the letting agent fee ban will push rents up, making it even more difficult for tenants living in the private rental sector.

Nevertheless, tenants have recently urged the Government not to forget their promises concerning the letting agent fee ban, while lobby group Generation Rent believes the ban to be great news for renters.

While it appears that the letting agent fee ban will indeed be introduced in England, the Welsh Assembly is currently making a decision on whether to bring in similar rules for letting agents.

We will keep you up to date with developments on the lettings fee ban for tenants and its effects on the sector at LandlordNews.co.uk.

Welsh Assembly Yet to Make a Decision on Banning Letting Agent Fees

Published On: January 27, 2017 at 9:28 am

Author: Em Morley

Categories: Property News

Tags: letting agent fees,lettings fee ban,tenants,Wales

The Welsh Assembly is yet to make a decision on whether banning letting agent fees in Wales is a good idea.

Welsh Assembly Yet to Make a Decision on Banning Letting Agent Fees

Following Chancellor Philip Hammond’s announcement in last year’s Autumn Statement that letting agent fees charged to tenants will be banned in England, the Welsh Assembly has debated whether to introduce the same measure in Wales.

Carwyn Jones AM, the First Minister of Wales, has written to David Cox, the Managing Director of the Association of Residential Letting Agents (ARLA), confirming that no decision has yet been made on banning letting agent fees in the country.

The letter reads: “The Cabinet Secretary for Communities and Children has made a commitment to review the evidence currently available, before deciding what action should be taken.

“He will be taking into account the impact of the Scottish legislation and will also be reviewing the proposals in England, taking into account the findings of their consultation, which is due to be held in the coming months.

“The review will also consider the different approach Wales has taken, by introducing Rent Smart Wales, and how this will impact on and inform any further regulation in the sector.”

ARLA insists that it will continue to communicate with the Welsh Assembly on the matter.

In an email to its members, ARLA says: “We urge all members to complete our monthly surveys and respond to the UK Government’s consultation when it is released.

“It’s clear that further widespread changes are in the pipeline for the private rented sector across the UK, but what’s important is that governments listen to the industry and follow the evidence.”

A number of proposals from Welsh Assembly Members were put forward to commence the banning of letting agent fees for tenants. None of the proposals have yet been successful.

Do you believe that Wales should follow England in banning letting agent fees?

Over Half of Private Tenants Believe they will Never Own a Home

Published On: January 26, 2017 at 10:05 am

Author: Em Morley

Categories: Finance News

Tags: first time buyers,private rental sector,property ladder,tenants

Over half of private tenants in the UK believe they will never own their own home, according to a worrying new survey.

As house prices continue to rise in some parts of the country, private tenants often consider saving for a deposit to be the greatest barrier to getting onto the property ladder.

Over Half of Private Tenants Believe they will Never Own a Home

The study, conducted by property investment consultancy Knight Knox, found that less than a quarter (23%) of private tenants are currently saving for a deposit, with many renters having little hope of affording a deposit for their own home, unless their circumstances change dramatically.

The survey, which polled 2,000 private tenants across the UK, suggests an acceptance among those living in the private rental sector that owning a home will remain unattainable, believes Andy Phillips, the Commercial Director of Knight Knox.

He explains: “With rising house prices and stagnant salaries, it appears that many people currently renting have come to terms with the idea that they’ll never own a home and now accept renting as a viable option in the long-term.

“We’ve grown up in this country with the notion that you must settle down and buy a house, but, due to numerous factors, that’s not as much of a reality as it once was, and we’re starting to see the stigma traditionally attached to renting dissolve.”

He adds: “The reducing number of people saving for a deposit could mean we’re seeing a shift towards a private rental sector-centric property landscape, similar to that which has long been a way of life in Germany and wider continental Europe.”

In support of Phillips’ views, 61% of private tenants said they were content to rent, claiming that renting suits their lifestyles, and they do not want to be tied down to one property or a lengthy mortgage contract.

Phillips agrees: “The traditional model of homeownership doesn’t suit everyone’s lifestyle, and whether it’s the best way forward is being called into question.

“Meanwhile, the private rental sector is increasingly being seen as an essential solution to the lack of housing available, with rented homes expected to account for over seven million homes in the UK by 2025.”

The survey’s findings are good news for landlords, who can rest assured that demand from private tenants will remain high in the long-term, despite fears that investing in buy-to-let may not be as lucrative as it once was.

Report indicates most renters have seen damp issues

Published On: January 24, 2017 at 10:02 am

Author: Em Morley

Categories: Landlord News

Tags: damp,damp issues,drains,landlords,tenants

A concerning new study has revealed that the majority of private renters have seen problems with sub-standard drainage or damp, according to a new study.

The survey of 1,000 tenants, carried out by drainage company Lanes Group, indicated that 85% of respondents had experienced issues with poor drainage or damp at a point during their tenancy agreement.

Damp

Worryingly, 29% of those who said they had seen problems said they had received no help from their landlord.

Most commonly, tenants saw problems with constant damp on walls and near windows.

Next came dripping taps, bad odours from drains and poorly-fitted appliances. Others said they saw problems with water pressure, blocked drains, leaking pipes and flooding.

Report indicates most renters have seen damp issues

Capital Drain Pains

Tenants in the capital are most likely to see drainage problems than anywhere else in the UK. 90% of renters in London said they had been in touch with their landlord with regard to plumbing issues.

Michelle Ringland, head of marketing at Lanes Group, noted: ‘Keeping properties maintained is a real challenge for landlords, particularly as you can’t control tenants’ habits. Having adequate drainage facilities installed and carrying out regular checks by professionals will go a long way in keeping drainage systems in rented properties running correctly.’[1]

‘This should be supplemented by giving tenants clear information on what they should and shouldn’t put down drains,’ Ringland added.[1]

If you have or are experiencing issues with damp related problems, see our guide on combating these situations.

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/majority-of-renters-have-encountered-damp-and-drainage-problems

Ban on agent fees will impact negatively on 20% of landlords

Published On: January 23, 2017 at 11:55 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,fees,letting agents fees,tenants

The Housing Minister Gavin Barwell has moved to state the proposed ban on letting agents levying fees on tenants will only negatively impact 20% of tenants.

An ARLA report from the meeting of the All Party Parliamentary Group for the Private Rented Sector earlier this month says that Barwell disputed the notion that the ban would be universally costly for landlords and tenants alike.

Financially Impacted

Mr Barwell told MP’s that while the implications of scrapping fees does need to be assessed, early HMRC forecasts suggest that just a fifth of investors will be hurt financially.

In addition, the report states: ‘Barwell also said that since the change will be phased in it will not have as large an effect. In response to concerns that landlords will have to up their rent to cover the costs of the fees, Barwell said that it is of course up to the discretion of the landlord to decide their fees. He said the government see the measure part of as creating a fair tax regime. He said the forthcoming consultation will not look at the value of the measure but will look at how it is implemented.’[1]

What’s more, Mr Barwell is reported to have stated that Build To Rent would feature in the Government’s White Paper on Housing. Barwell sees Build To Rent as good value for money and believes that the scheme offers longer tenancies-one of his key objectives.

Ban on agent fees will impact negatively on 20% of landlords

Changes

After the meeting, managing director of ARLA David Cox, observed it was clear that the Government is trying to implement large scale changes to the private rental sector in England.

Cox noted: ‘Since the 1980s, England has been building up to 40 per cent fewer homes than the 240,000 needed annually. The resulting shortage of about two million homes has left the country with soaring prices and a growing gulf between the property haves and have-nots.’[1]

‘Unfortunately, the government doesn’t seem to realise that punishing hard-working letting agents who deliver a hugely valuable service will not in the long run improve the affordability of the sector and the service that tenants receive.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/1/letting-fees-ban-will-only-hit-20-negatively-claims-minister

Scottish Landlords Urged to Comply with New Electrical Regulations

Published On: January 23, 2017 at 10:10 am

Author: Em Morley

Categories: Landlord News

Tags: electrical safety,landlord law,Scotland,Scottish landlords,tenants

Scottish landlords have been urged to take new electrical regulations seriously and comply with the law.

Scottish Landlords Urged to Comply with New Electrical Regulations

Property management firm Ross and Liddell warns Scottish landlords that failing to comply with changes to the Housing (Scotland) Act 2014 could seriously endanger the lives of their tenants.

Private Scottish landlords are now responsible for ensuring that registered electricians conduct electrical safety inspections at least once every five years under the regulations.

The ruling was originally enforced for new tenancies that began on or after 1^st December 2015. However, as of 1^st December 2016, it now applies to all existing tenancies.

Scottish landlords that do not have inspections carried out could be issued with a Rent Relief Order by the First-tier Tribunal for Scotland (Housing and Property Chamber).

Those with rental properties in Scotland are reminded that a Rent Relief Order could reduce the rent paid by up to 90%.

The Lettings Manager at Ross and Liddell, Ann McMaster, warns: “If an electrical safety inspection is not carried out, there’s no way of knowing how effective the appliances are and how well they function within a particular environment.

“Leaving any problems undiagnosed could lead to electrical fires, which are a very immediate danger for tenants.”

She adds that the inspections are inexpensive and can be conducted easily and effectively by a qualified electrician.

An electrical safety inspection has two parts – a portable appliance test (PAT) and an Electrical Installation Condition Report (EICR).

We remind all Scottish landlords that the person who conducts the check must be employed by a firm that is a member of an accredited registration scheme operated by a body recognised by the Scottish Government. This usually means that it is registered by NICEIC or a member of the Electrical Contractors’ Association of Scotland (SELECT).

Scottish landlords, are you aware of the new electrical regulations? Remember to stick to the law and keep up with any changes here.