Posts with tag: tenants

Thousands of Amateur Landlords are Putting Tenants’ Lives at Risk

Published On: May 18, 2016 at 9:34 am

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Many amateur landlords in the UK are putting their tenants’ lives at risk by avoiding their responsibilities over gas safety, according to a new study.

The survey of 1,000 part-time landlords and 500 tenants of amateur landlords by Atomik Research, on behalf of British Gas, found that 20% of amateur landlords do not conduct

Thousands of Amateur Landlords are Putting Tenants' Lives at Risk

Thousands of Amateur Landlords are Putting Tenants’ Lives at Risk

compulsory annual gas safety checks, while over a third are not even aware that gas safety is a legal requirement.

Landlords that do not adhere to the law on gas safety could face hefty fines if they are caught.

Gas safety checks, which must be carried out by a Gas Safe registered engineer, pick up a range of problems, including faulty boilers, and are vital in helping to prevent gas leaks, explosions and carbon monoxide poisoning.

Landlords must also be aware that they are required by law to fit smoke alarms on each floor of their rental property, and carbon monoxide alarms in rooms with solid fuel burning appliances.

The Chair of the All-Party Parliamentary Carbon Monoxide Group, Barry Sheerman MP, says: “It is shocking that 38% of landlords in the non-traditional rental sector – which includes holiday lets, Airbnb accommodation and lodgers – do not know that they are legally obliged to have a safety check conducted on all gas appliances in their premises.

“I urge all landlords to have their gas appliances serviced by a Gas Safe registered engineer on an annual basis, to ensure that they are in safe and functioning order, and that holidaymakers and others staying in their properties are safe from CO [carbon monoxide] poisoning.”1

British Gas engineer Sheena Anker insists that it is vital that amateur landlords to ensure their tenants are kept safe and to stick to the law: “Although they may only rent out a room or property for a few weeks each year, it’s crucial for part-time landlords to ensure that their tenants are kept safe, and to stay on the right side of the law.

“I’ve visited properties and seen unsafe appliances which either haven’t been serviced in years or have been installed by illegal gas fitters. Worryingly, tenants are often oblivious to the danger they are in. To stay safe, tenants should ask landlords for a copy of the Gas Safety Certificate, following a check from a Gas Safe registered engineer.”1 

For all of your responsibilities as a landlord, check this comprehensive Gas Safe Register-approved guide: https://www.justlandlords.co.uk/news/landlords-guide-gas-safety/

1 https://www.britishgas.co.uk/media/r/1409/lives_put_at_risk_as_part-time_landlords_overlook

5m tenants have no plan to cover rent if they fall ill

Published On: May 18, 2016 at 9:17 am

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A concerning new report has indicated that nearly five million tenants in Britain have no contingency plan to cover their rent if they become too poorly to work for three months or more.

This alarming figure comes despite the fact that 27% of renters in paid employment said they knew someone who was struggling to keep up with payments.

Survival

34% of renters in paid employment admitted to not knowing how long they could continue paying rent for, should they fall ill. 60% said they could only survive on their savings for three months or less.

53% said that they would apply for benefits should they fall ill. 47% said that they would cut their household expenses and 39% said they would utilise their savings.

However, just 7% of tenants currently in paid employment said they had conducted a financial adviser, with most people turning to friends and family for help.

5m tenants have no plan to cover rent if they fall ill

5m tenants have no plan to cover rent if they fall ill

Reality

Head of Protection for Royal London Intermediary, Debbie Kennedy, said, ‘renters who assume that housing benefit will be there when they need it could find the reality is very different. A series of cuts to housing benefit means that more people would not get their rent paid in full if their income fell unexpectedly.’[1]

‘It would be bad enough to be taken ill without the added anxiety of getting behind with the rent and facing possible eviction. Income protection may be more affordable than people realise and can provide a financial safety net and enable people to focus on getting better,’ Kennedy added.[1]

Over the next ten years, economists predict that the UK will experience slower levels of homeownership and increased levels of private renting. It is predicted that in ten years’ time, 59% of 20-39 year olds will privately rent, up from 45% in 2013.

[1] http://www.propertyreporter.co.uk/landlords/5m-renters-at-risk-warns-royal-london.html

New rental listings rise by 11.5% in April

Published On: May 13, 2016 at 10:43 am

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Categories: Property News

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There was an 11.5% rise in new rental properties being listed in April, as the results of the pre stamp duty rush were absorbed.

Research conducted by Property Partner examined the total number of new rental properties being advertised in the last month, in comparison to March. The analysis looked at results from 90 towns and cities across Britain.

The study found that in 82% of these locations, there was a rise in the number of new rental listings.

Regional rises

Worcester saw the greatest rise in new rental listings, seeing a surge of almost 48.9% during the last month. Chelmsford saw an increase of 38%, Stevenage 36.4% and Southport 34.4%.

Of the major towns and cities, London saw a 9.1% rise in new property listings during April. Birmingham saw the greatest rise of the larger cities, recording an increase of 20.7%. In Manchester, there was a rise of 14.3%.

The table below indicates the towns and cities in Britain that experienced the largest rise in new rental listings in April:

Town/City Region % increase in new rental property listings
Worcester West Midlands 48.9%
Chelmsford East 38.0%
Stevenage South East 36.4%
Southport North West 34.4%
Telford West Midlands 32.3%
Cheltenham South West 30.3%
Watford East 29.4%
Bath South West 29.3%
Newport Wales 27.0%
Woking South East 26.8%
Gloucester South West 26.4%
Milton Keynes South East 24.7%
Oxford South East 24.5%
Oldham North West 23.3%
St Helens North West 22.5%

[1]

New rental listings rise by 11.5% in April

New rental listings rise by 11.5% in April

Boost

Dan Gandesha, CEO of Property Partner, noted, ‘the rental market experienced a much-needed boost in April. Unfortunately, this was created by investor frenzy to beat the stamp duty hike and supply is unlikely to continue on an upward trajectory.’[1]

‘If anything, options for tenants could become more limited in the next couple of months as traditional landlords balk at the prospect of paying the surcharge now and losing mortgage interest tax relief from next year. There is still strong tenant demand but the Government has changed the traditional buy-to-let landscape and this will have ramifications for the rental market longer term. That demand will increasingly have to be met by professional landlords like Property Partner, offering tenants a better product and investors a better deal,’ Gandesha concluded.[1]

 

Strong start to the year for property market

Published On: May 10, 2016 at 1:19 pm

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A new report has underlined the strong start to the year for the British property market, with the positivity recorded at the end of 2015 continuing.

Data from the research conducted by Connells Group shows the number of active buyers coming into the residential market has soared to record highs. Combinations of attractive factors, such as low interest rates, have contributed to this increase.

Growth

David Livesey, group chief executive, noted that with stock available at record lows, additional pressure from new buyers, combined with buy-to-let investors looking to beat the stamp duty deadline, has lead to widely-restricted choice.

He believes however that the ratio of applicants in comparison to new instructions has evened out and that property price growth has not been as rapid as seen in previous quarters. This in turn is leading investors or first-time buyers to believe that purchasing could be productive in the long-term.

Livesey said, ‘this slight cooling has by no means turned into a chill, with property remaining a valuable asset that will continue to increase in value for the foreseeable future. Supply side initiatives, driven by the Government’s attempt to stimulate housebuilding in particular, may need further support if they are to have any meaningful impact on the level of available stock in the short term.’[1]

Positive

The report indicates that landlords and tenants alike have enjoyed a productive beginning to the new year. Activity from renters has risen healthily, with many looking to move into new accommodation.

Interestingly, the report shows that despite the fresh demand from new applicants entering the market, the ratio of registered applicants is not as high as in the same period in 2015. Average rents across England have also stabilised .

Mr Livesey pointed out that a rise in rental stock is easing pressure on the market, as buy-to-let landlords are moving to purchase less expensive properties. ‘This may not be what the Government had in mind when it aided the construction of such properties, but it has given tenants respite nonetheless. In addition, tenants are also driving harder bargains, securing longer leases at a cheaper monthly rate meaning they need to return to the market less often, which is also attractive to landlords.’[1]

‘The mortgage market has also sprung back to life this quarter, largely propelled by high activity levels in the residential and buy-to-let sectors. Home movers and first-time buyers are seeking to take advantage of the low interest rate, high LTV lending environment,’ he continued.[1]

Strong start to the year for property market

Strong start to the year for property market

Stamp Duty increases

Unsurprisingly, the report confirms that there was a substantial increase in buy-to-let lending as a result of the 3% stamp duty surcharge on buy-to-let and second properties. The report shows that lending activity fell after the deadline.

Livesey notes however that, ‘this is not a sign that investors have lost confidence, more a short term trend as they simply sought to avoid an unnecessary upfront cost. Indeed, over the long term, the sector is more than capable of riding out the increased levy given its strong fundamentals, namely, high yields, high rental demand and accessible mortgage lending.’[1]

Brexit fears

With uncertainty surrounding the upcoming EU referendum growing, the report suggests that the economic outlook still looks positive.

‘There are some warning lights flashing in certain areas of the global economy and the current Brexit debate is leading to a degree of business uncertainty. The uncertainty is similar to that seen in the lead up to the Scottish Referendum in 2014 and the UK General Election in 2015 and whilst this may introduce some hesitancy to the market during the second quarter of the fundamentals of the UK economy remain strong, with low unemployment, reasonable rates of GDP growth and rising real term wages, ‘Livesey observed.[1]

‘This generally positive climate looks set to be maintained over the coming quarters, regardless of the result of the upcoming referendum and with demand for housing continuing to outstrip supply, the outlook for the hosing market remains positive,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-property-market-outlook-2016051011895.html

Rise in buy-to-let landlords selling at auction

Published On: May 10, 2016 at 11:11 am

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A rising number of buy-to-let landlords are looking to sell at auction, rather than through estate agents.

That is the view of property auctioneer Auction House, which suggests there is evidence to support its claim.

Changing trend

Founding Director of Auction House, Roger Lake, believes that there are now more people selling homes as tenanted investments, rather than serving notice to the tenant and selling as empty homes.

Mr Lake said, ‘the problem for the landlord is how to achieve the best sale price without losing too much rental income. Most estate agents tell their letting clients to decant their tenants before instructing them to sell the property. But that approach comes with some major disadvantages. Not only do landlords stop receiving rent but the property often looks unkempt and might need redecoration. The process is invariably long and sometimes tortuous and will require the landlord to find monthly mortgage repayments from other sources for up to six months or more.’[1]

‘By contrast, an auctioneer will recommend that landlords sell with tenants remaining in place and the properties offered as tenanted investments. This has the prime advantage of the landlord continuing to receive rent while the sale is taking place. The property also usually presents better when occupied-and invariably the tenants will want to stay put rather than be forced out. It’s a win-win for both parties.’[1]

Rise in buy-to-let landlords selling at auction

Rise in buy-to-let landlords selling at auction

Improvements

Lake’s comments come as Auction House’s latest sales results have been published. The results make good reading, with sales in April of 290 lots 402 offered, a success rate 72%. These sales made a total of £44.5m. The first quarter of the year saw 1,027 lots sold from the 1,241 on offer, resulting in a success rate of 76.6% and a sales value of £137.5m.

‘Demand for residential investments hasn’t dropped away as many pundits suggested,’ Lake observed. ‘Indeed, we have seen a strong start to 2016, with most of our sales rooms showing growth over last year’s excellent performance. There was some seller hesitancy immediately following the introduction of the Stamp Duty surcharge but this is now behind us and entries are strengthening. Most believe that the outcome of the Brexit vote will have little short term effect on the auctions market. Normality is returning to the supply side in our sector and buyer demand is still healthy. I expect activity to increase further during the summer and autumn.’[1]

‘As far as buy-to-let is concerned, there are still numerous cash-rich buyers who see rental property as a highly valued part of their investment programme. It’s one that has consistently delivered in the past and should continue to do so in the future,’ Lake concluded.[1]

[1] http://www.propertyreporter.co.uk/auctions/more-btl-landlords-drawn-to-sell-at-auction.html

Landlord jailed after cannabis cultivation

Published On: May 9, 2016 at 9:16 am

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A buy-to-let landlord has been put behind bars after being found guilty of growing cannabis with a value of £75,000 in one of his properties.

Despite claims that he was unaware of the cultivation, James Sullivan, 61, was given a three-year jail term.

Scent down

Officers were alerted to the illegal cultivation after detecting a scent from the street outside the house in Plymouth. When entering the property, the officers found 64 mature plants, some of which reached 4ft in height.

Mr Sullivan, a former paratrooper, was found guilty of growing cannabis between December 2012 and February 2013 and was sentenced to four years behind bars. However, this conviction was quashed by the Court of Appeal.

Addressing the most recent conviction, judge Ian Lawrie said: ‘you are a man of good character and what on Earth possessed you to get involved in criminal activity at this stage in your life, I do not know. But you are going to have to pay a heavy price.’[1]

Landlord jailed after cannabis cultivation

Landlord jailed after cannabis cultivation

Going to pot

The case of Mr Sullivan highlights the need for landlords to be wary of their tenants growing cannabis in their rental property.

In the last year alone, police seized 456,911 plants across Britain, according to Direct Line for Business. In London, 59,002 plants were found, more than in any other part of the country.

Birmingham is also the second city in terms of cannabis cultivation, with police in the West Midlands confiscating 52,218 plants. In greater Manchester, officers found 33,547 plants.

Jane Guaschi, business manager at Direct Line for Business, noted, ‘the consequences of a cannabis farm on a landlord’s property can be financially catastrophic.’[1]

Offering advice for landlords, Guaschi said, ‘landlords should check to see if their insurance policy covers them for malicious damage as it’s not just the structural damage that could have insurance implications, it’s the financial headache of the clean-up that will hurt the landlord’s back pocket. What’s more, landlords could face the loss of rent and the stress of the legal wrangling during periods of repair or eviction.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/5/landlord-jailed-for-marijuana-related-crime