Posts with tag: tenants

National Approved Letting Scheme calls for cap on agent fees

Published On: September 22, 2016 at 8:51 am

Tags: letting agent fees,management agents,national approved letting scheme,tenants

The National Approved Letting Scheme has today called for a cap on letting agent fees charged to tenants, as opposed to a widespread ban.

This organisation represents both letting and management agents and feels that a cap on fees is the most appropriate way of preventing excessive fees, currently charged by a small minority.

Action

Isobel Thomson, Chief Executive of The National Approved Letting Scheme, believes it is time for the industry to take action, before the chance of an outright ban becomes a viable option for the Government.

The Renters’ Rights Bill is steadily making its way through Parliament. This Bill proposes an outright ban of fees charged to tenant and has already received two unopposed readings in the House of Lords.

Earlier on this year, a petition against these fees received media coverage. This petition, entitled, ‘Make Renting Fair in England’ has received over 250,000 signatures.

National Approved Letting Scheme calls for cap on agent fees

Fees

Thomson believes that efforts to explain to the Government on why upfront fees are necessary are often, ‘hampered by sensationalist headlines.’

‘We believe a cap is an appropriate way of curbing any excessive fees and offering protection to the consumer. By offering a cap calculated and enforced at a local level, we still allow agents to be paid for the work they do in setting up a tenancy, while also ensuring a fair, set rate for tenants,’ she observed.[1]

She went on to call on all industry bodies to join forces to come up with a, ‘proper solution to an all out ban.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/9/nals-calls-for-cap-instead-of-ban-on-letting-agent-fees

15% of tenants admit to breaking rules

Published On: September 21, 2016 at 10:26 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,buy-to-let landlords,tenancy agreement,tenants,tenants breaking rules

Interesting new research has revealed that one in seven tenants have broken one or more rules outlined in their tenancy agreement.

Data from the report conducted by Direct Line Landlord Insurance shows that around 15% of renters admitted to breaking conditions of their contract. Somewhat alarmingly, 9% said they don’t have a contract at all!

11% said that they were unsure if they had broken any rules or not.

Breaking the rules

Of those renters who admitted to breaching terms of their agreement, the most common was failing to pay rent on time. Next came smoking inside a property and having a pet without permission.

The full list of most common rules flaunted by tenants were found to be:

Activity	Percentage of tenants
Failing to pay rent on time (or at all)	25%
Smoking in the property	21%
Keeping a pet in the property	18%
Damaging or making alterations to the premises	17%
Changing the locks	16%
Caused disturbances or a nuisance to neighbouring properties	14%
Sublet a room without notifying the landlord	14%
Failed to clean accessible windows	13%
Redecorated without permission	12%
Failed to check smoke or carbon monoxide alarm	10%

[1]

15% of tenants admit to breaking rules

Sanctions

The most common sanctions for tenants found to be in breach of their agreement include:

losing some or the entirety of their deposit (52%)
having to pay for damages (22%)
being evicted (4%)

However, 21% of tenants say that their landlord hasn’t found out about their actions…yet!

Nick Breton, Head of Direct Line for Business, noted, ‘the relationship a tenant has with their landlord can be crucial in the smooth running of a rented property. It is therefore of utmost importance for tenants to keep in touch with their landlords should anything arise that may be in breach of their rental agreement.’[1]

‘Many landlords may be accommodating of requests to have a pet or to make changes to the property, but it is always safest to ask before doing anything to ensure that you are not breaking your contract in the process. Tenants who break the rules of their contract can face anything from the loss of their deposit to eviction, so for peace of mind, landlords should ensure they have a watertight legal contract in place to fall back on should anything happen to their property,’ he added.[3]

[1] http://www.propertyreporter.co.uk/landlords/1-in-7-bend-tenancy-rules.html

Half of UK renters over the age of 46

Published On: September 20, 2016 at 8:49 am

Author: Em Morley

Categories: Property News

Tags: renters,renting in the UK,tenant ages,tenants

Latest data released from estate agents Your Move has revealed that nearly half of the total number of renters in the private rental sector in Britain are over the age of 46.

This result came from research of 36,500 participants, with the investigation commissioned to give a further insight into the 4.5m privately rented households in Britain.

Renting results

The research uncovered that 18% of renters are over the age of 55, with 22% in the 46-55 age bracket. Somewhat surprisingly, 39% of people in the private rental sector are under 35.

Of those questioned, 25% of 18-25 year olds said that they were happy with renting, with 80% longing for their own home in the future. For those over 55, 46% said they were happy with renting and only 19% wanted to own their own property in the future.

For all age groups, 81% of tenants said that renting suited their lifestyle, either permanently or for a few years.

Half of UK renters over the age of 46

Important

Valerie Bannister, Head of Lettings at Your Move, noted: ‘these results show very clearly that renting is becoming extremely important across the UK. The rise of the Silver Renter may seem surprising, but increasingly thousands of people have turned to the Private Rental Sector as the most convenient option available to them, following a change in personal circumstance. Now more than ever, it is important that this sector offers good quality, well managed properties that allow tenants to feel at home in them.’[1]

‘Many of the younger tenants in our survey have aspirations to own their own home in the future. However, the endemic lack of affordable housing to buy across the UK, coupled with a low savings-rate environment, is making it increasingly difficult for want-to-be homeowners to buy their first home,’ she continued.[1]

Concluding, Bannister said:’ the Private Rental Sector needs to answer this issue by becoming a first choice tenure and not just the second best option. If the flexibility of renting can be combined with the stability and reassurance of longer residencies and fewer restrictions around making the space feel like home, for many, renting would be considered a better long-term, as well as short-term option.’[1]

[1] http://www.propertyreporter.co.uk/landlords/almost-half-of-uk-renters-are-now-aged-over-46.html

Rogue letting agent has appealed quashed

Published On: September 19, 2016 at 10:14 am

Author: Em Morley

Categories: Property News

Tags: criminal activity,landlords,rogue letting agents,tenants

A rogue letting agent who stole more than £400,000 from clients has unsurprisingly had her sentence appeal dismissed in court.

Amy Williams, part-owner of Williams & Young Ltd in the West Midlands, had her jail term upheld at London’s Appeal Court.

Stealing

Williams stole money from the letting agency alongside her partner Glenn Austin, who was handed a sentence of two-and-a-half years for his role in the criminal activity.

The stolen funds amounted to £408,800 and were used to perpetuate Mr Austin’s gambling addiction.

Their deceit was first uncovered in 2015, when tenants and landlords both started to issue complaints to Birmingham’s Trading Standards and Action Fraud departments. Williams was found to have taken deposits and advanced rents from would-be tenants, but never passed this money on to landlords themselves.

Additionally, she took money from different people, for the same properties.

Rogue letting agent has appealed quashed

Thrown out

After being sentenced in April , Williams appealed her sentence, with this being thrown out at London’s Appeal Court on September 16^th.

Williams claimed that her sentence was unfair considering that of her partner’s, who claimed she was involved in 80% of the losses caused.

Mr Justice Edis, who presided over the case, said that Austin was fortunate to avoid a longer sentence for his role in the scam.

Chris Neville, head of Trading Standards for Birmingham City Council, said, ‘this fraud was not only heartless, leaving landlords and tenants out of pocket, but it was foolish-using company funds to finance a string of bets to raise more money.’[1]

‘Tenants paid deposits and advance rents to Williams & Young Ltd in good faith and in some cases, landlords were unaware this was the case as the money had not been passed on,’ he added.[1]

As a result of her actions, William’s membership of the National Association of Estate Agents and the Association of Residential Letting Agents was terminated.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/9/agent-who-stole-thousands-from-clients-has-sentence-appeal-dismissed

Landlords should cover letting agent fees, says Citizens Advice

Published On: September 19, 2016 at 9:12 am

Author: Em Morley

Categories: Landlord News

Tags: Citizens Advice,complaints,landlords,letting agency fees,private rental sector,tenants

Citizens Advice has called for all letting agency fees to be paid by landlords as opposed to tenants, as is the case in Scotland.

The charity believes that landlords have an advantage of being able to shop around for the most suitable deals. On the other hand, tenants however have no choice over the agent they deal with, nor the fees they are charged, following finding a suitable property.

Complaints

More numbers of renters are contacting the charity with complaints about letting agents. Citizens Advice said it received 6,500 calls about the sector in the year to June. This was a rise from 6,200 in the same month last year and 5,700 the year previously.

In the past, many tenants have lodged complaints about delays and getting repairs fixed. However, it now appears that complaints are more prominently about letting agents’ fees.

Presently, tenant fees are charged for a number of services, including preparing a tenancy agreement, referencing and making credit checks. Citizens Advice believes these features should be paid for by landlords.

Chief Executive of Citizen’s Advice, Gillian Guy, said, ‘private renters shop around for properties, not for letting agents. Landlords are better able to choose agencies based on performance and cost and it should therefore be landlords paying letting agent fees, not tenants picking up these rising costs.’[1]

Landlords should cover letting agent fees, says Citizens Advice

Fairness

Responding to the claim, David Cox, managing director of the Association of Residential Letting Agents (ARLA), said he believes that letting agents have a ‘fair pricing structure,’ and do not make a, ‘noticeable profit.

Cox feels that landlords are left with little choice but no charge for essential items such as credit checks, rent to rent assessments and inventories.

‘Rather than simply transferring the total cost onto the side on the landlord, what is crucial is to provide consumer protection through better regulation of the private rented sector,’ Cox noted.[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/all-letting-fees-should-be-covered-by-landlords-says-charity

Chelmsford Council looks to attract landlords with guaranteed rent

Published On: September 15, 2016 at 11:57 am

Author: Em Morley

Categories: Landlord News

Tags: Chelmsford,Homes2Lease,landlords,tenants

A local council has moved to try and attract more buy-to-let landlords with a new scheme, aimed at boosting levels of housing supply and meeting tenant demand.

Chelmsford City Council plans to host a number of events to promote its Homes2Lease scheme, the first of which will take place on Friday 23^rd September.

Homes2Lease

The benefits of the Homes2Lease scheme include:

guaranteed rental income paid directly to the City Council
no management fees or commission
3% annual rent increase
full tenancy management service
up to £1,000 for repairs

Chelmsford Council looks to attract landlords with guaranteed rent

Councillor Paul Hutchinson, Chelmsford City Council’s cabinet member for strategic housing, noted: ‘the last few years has seen a rapid growth in the demand for housing in Chelmsford and this had had an effect on the affordability of housing for residents of Chelmsford.’[1]

‘To meet the growing need for good quality accommodation, Chelmsford City Council is looking to grow our portfolio of properties that we manage working in partnership with private landlords.’[1]

The first Homes2Lease event takes place on the 23^rd September at 10am to 12pm in the Council Chamber at the Civic Centre, Duke Street, Chelmsford.

Further events are planned on Wednesday 28^th September from 6:30pm-8pm and Monday 3^rd October from 2pm-4pm, again in the Council Chamber.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/council-aims-to-entice-landlords-with-guaranteed-rent-income