Posts with tag: tenants

Universal Credit Almost at the End of its Rollout

Published On: April 18, 2016 at 10:36 am

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As of today, Universal Credit is now in operation in most of the UK. Below, we detail which postcode areas have moved onto the Government’s new welfare system.

Universal Credit Almost at the End of its Rollout

Universal Credit Almost at the End of its Rollout

Since its introduction in 2013, Universal Credit has been on a nationwide rollout to new areas every Monday.

The new welfare system sees six payments rolled into one monthly payout, meaning that claimants receive all of their benefits in one. For those receiving housing benefit, the change also means that they will be paid instead of their landlord.

If you are a landlord of housing benefit tenants, you must be aware of this change, as it means that tenants are now responsible for paying their rent when it is due.

It is also important to note that many claimants have been forced into long-term debt since moving onto Universal Credit. Your tenants may be facing financial difficulty as their benefits change, so remember to communicate with them about any problems they are having. You can also protect your rental income with Rent Guarantee Insurance, which ensures you still get paid if your tenants default on rent payments.

For information on the previous areas that moved onto the new system, see our latest piece on Universal Credit: /following-areas-now-moved-onto-universal-credit/

As of today, the following postcode areas have moved onto Universal Credit:

  • DN6 7 in Doncaster.
  • LS25 1, LS25 2, LS25 4, LS25 7, LS26 8 and LS26 9 of Leeds.
  • S71 4, S72 9, S75 4 and S75 5 in Sheffield.
  • WF1, WF2, WF3 1, WF3 3, WF3 4, WF4, WF5, WF6, WF7, WF8, WF9, WF10, WF11, WF12 0, WF12 7 and WF12 8 in Wakefield.

We will continue to keep you updated of all the financial changes affecting the private rental sector, both for landlords and tenants.

Remember to Comply with Right to Rent Rules!

Published On: April 16, 2016 at 8:52 am

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Categories: Landlord News

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As of 1st February, landlords, letting agents and tenant services have been required to conduct immigration checks on all prospective tenants under the Right to Rent scheme. It is vital that you comply with the legislation, as you may face a penalty if you are found renting a property to an illegal immigrant.

Under the Immigration Act 2014, landlords and agents must check the identity documents of all prospective tenants to make sure they have the right to rent in the UK.

Remember to Comply with Right to Rent Rules!

Remember to Comply with Right to Rent Rules!

Shockingly, 90% of landlords are still unaware of this legal requirement. As regulations within the private rental sector are changing constantly, it may be a good idea to use an agent or referencing agency to conduct the checks on your behalf.

If you do pass responsibility onto someone else, you must have proof in writing of your agreement so that you are not liable for a penalty.

LandlordReferencing.co.uk uses Jumio to validate identification documents of potential tenants. This service allows the agency to perform quick and simple immigration checks, providing landlords and letting agents with peace of mind.

The CEO of LandlordReferencing.co.uk, Paul Routledge, explains how the service works: “At LandlordReferencing.co.uk, we’re all about giving our letting agents and landlords peace of mind that they are complying with the new regulation, while also delivering a faster and easier ID check for their tenants.

“Helping landlords and letting agencies verify the veracity of their tenants’ documents can be a challenging work. Jumio’s Netverify offers LandlordReferencing.co.uk the in-depth expertise needed for performing checks of IDs from over 130 countries, without hindering the user experience.”

Jumio’s Catherine Hickey adds: “Complying with the Right to Rent legislation, while also delivering a customer-friendly experience, has never been more important for referencing agencies, landlords and letting agents.

“The benefits of verifying IDs in a simple and easy way are extremely valuable to companies such as LandlordReferencing.co.uk, letting agents, landlords and tenants alike.”

If you are planning to conduct the checks yourself, you must have a procedure in place for all new tenancies going forward. It is believed that criminal sanctions will be introduced under the Immigration Bill, which is currently going through Parliament – stick to the law to avoid facing penalties!

Also, be aware that the Government’s guidance on the scheme could be soon to change. We will keep you updated on all changes to landlord law.

Government Plans to Update Right to Rent Guidelines

Published On: April 14, 2016 at 9:47 am

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The Government is reviewing its guidelines on the Right to Rent scheme, after confusion was raised in the House of Lords.

The Right to Rent scheme requires landlords or their letting agents to conduct immigration status checks on all prospective tenants, ensuring that the renter has the right to live in the UK. Research from the Residential Landlords Association has found that a huge 72% of landlords do not understand their legal obligations under the scheme.

Government Plans to Update Right to Rent Guidelines

Government Plans to Update Right to Rent Guidelines

However, the complexities of the law, part of the Immigration Act 2014, have now been brought up in the House of Lords, as the Immigration Bill works its way through Parliament.

During the discussion, it was revealed that migrants who should not be in the UK may be given permission to rent, despite being prohibited from living here.

Labour peer Baroness Lister of Burtersett asked whether the Home Office would provide guidance to migrants who did not know whether they have a right to rent.

The spokesperson for the Home Office, Lord Keen of Elie, responded: “Under the Right to Rent scheme, landlords must check the immigration status of those renting to ensure they are here legally. Where a migrant’s documents are with the Home Office, landlords can confirm the right to rent through the Landlords Checking Service using the migrant’s case reference number.

“In some limited circumstances, such as where there are genuine obstacles to them leaving, migrants here without leave may be afforded permission to rent, although disqualified from renting.”

He added: “Where a migrant is unsure as to whether they qualify for permission to rent, they may contact the case owner, or team that is dealing with their case, or ask when they attend the Home Office in compliance with reporting conditions.”1

He also explained that the current guidance will be updated to help migrants make inquiries into their right to rent.

There has already been much confusion over the scheme, notably one case that could weaken Right to Rent legislation: /court-case-weaken-right-rent/

However, the Government has confirmed that changes will be introduced in the Immigration Bill to protect good landlords from penalties.

We will continue to provide you with updates on changes to landlord law.

1 http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2016-03-23/HL7365/

Many Tenants Experiencing Problems with Their Landlord

Published On: April 12, 2016 at 2:44 pm

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More than half of all tenants in London and the South East have experienced problems with their landlord, according to a new study. One of the most common issues is failing to have repair work completed on their rental properties.

The survey by Tenants Plus found that having to deal with bad landlords is the biggest worry of tenants, beating sky-high letting agent fees and rent rises.

Many Tenants Experiencing Problems with Their Landlord

Many Tenants Experiencing Problems with Their Landlord

The research also found that around 40% of hopeful tenants have to view up to five properties before finding a home due to fierce competition in the private rental sector.

The process of finding a rental property is also becoming increasingly stressful, with four in ten tenants worried about the cost of moving home. More than half of the 597 members of generation rent surveyed are worried about problems with their landlord.

Additionally, 4% of tenants in London and the South East said they fear being evicted from their properties. This is the highest rate in Britain and double the national average.

London’s private rental sector has boomed in recent years, as spiralling house prices push the capital’s prospective first time buyers out of homeownership.

At present, around a quarter of Londoners rent from private landlords. It is believed that by 2025, just 40% of those living in the capital will own their own home, compared to 60% in 2000. Shockingly, three quarters of young Britons believe they will live in the private rental sector forever.

In the last ten years, the rental market has been growing by an average of 17,500 households per month.

Research by housing charity Shelter found that around half of those living in private rental accommodation have had to borrow money to cover their rent.

Data from the Government shows that rent prices rose by 19% in London over the last five years, with the typical two-bedroom flat now costing over £1,600 per month.

Tenants Plus’s Wayne Treveil comments on the findings: “It is not agents and landlords that are the main offenders here, but successive governments that do not deliver on new housing promises.

“There is an obvious need for the Government and next mayor to prioritise more stable tenancies and commit to building the genuinely affordable homes young Londoners are desperate for.”1

The Residential Landlords Association (RLA) has recently released its London mayoral manifesto, which details the changes it hopes to see under the new mayor. It includes the call for the mayor to take action on the number of empty homes across the capital.

1 http://www.standard.co.uk/news/london/bad-landlords-are-biggest-bugbear-for-private-tenants-a3222376.html

London rental market begins to slow

Published On: April 12, 2016 at 11:52 am

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Following a year of sustained, record-breaking growth, the London rental market is finally starting to slow.

New data shows that for the third successive quarter, rents in the capital either stayed constant or experienced only conservative growth.

Falls

Many areas of prime central London saw rents tumble, underlining a trend that has seen demand rise in the inner suburb. With wealthy overseas investors being deterred by the upcoming Brexit vote, demand for luxury homes in places like Knightsbridge and Chelsea seemed to have peaked.

With this said, experts are still predicting that a fall in the value of British Sterling will make prime central London more sought after in the coming months.

London rental market begins to slow

London rental market begins to slow

Inner growth

Rental growth in inner London suburbs has continued, with the market growing in confidence. Wandsworth in particular saw steady growth, as did Bayswater, Queen’s Park and Kensal Rise.

However, North London, in particular the regions of Colindale, Golders Green and Hampstead Garden Suburb saw the most substantial rental growth in the last quarter. This was to be expected, following the completion of Crossrail works that had closed the Northern Line interchange at Tottenham Court Road.

Marc von Grundherr, of Benham & Reeves Residential Lettings, noted, ‘this is a much needed pause for breath after such huge gains in rental values. Unfortunately for tenants, this pause may only be temporary.’[1]

‘With increasing restrictions on buy-to-let, more amateur landlords will be exiting the market, leading to a drop in supply in the face of a growing population. Over the long term, rents will inevitably go up,’ von Grundherr went on to warn.[1]

[1] http://www.propertyreporter.co.uk/landlords/londons-rental-market-pauses-for-breath.html

 

Residential landlords ‘should offer longer tenancies’

Published On: April 12, 2016 at 10:57 am

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Residential landlords and property agents in Britain should consider adopting a different approach to tenancies to meet increasing demand.

That is the view of the Association of Independent Inventory Clerks (AIIC) which has called for longer-term tenancies to be agreed.

The firm said that better preparation should include more administration and more considered thought about the choice of interior design.

Tenant changes

Results from the English Housing Survey 2014/15 indicate that the average private tenancy length currently stands at 4 years. This is a rise from the three and a half years recorded in the previous year’s survey.

In addition, the report found that 46% of 25 to 34 year olds resided in the private rented sector in 2014/15, up from 24% in the previous reporting period.

Patricia Barber, chair of the AIIC, notes, ‘despite numerous reports suggesting that the average tenant doesn’t want a long term contract, the official statistics shows that the average tenancy lengths are increasing, particularly among families, as people rent for longer.’[1]

Re-think

The AIIC is urging landlords to really think about what features will make their rental property seem like a home and what could entice renters to stay for longer.

Barber observed that as tenancies last for longer, this underlines the importance of organisation for landlords: ‘when tenants stick around for longer, often the chances of confusion and disagreement over certain issues are increased when the tenancy does eventually come to an end.’[1]

‘The longer time goes on, the more likely landlords and tenants are to forget details from the tenancy agreement or important information about the deposit and that’s why stringent administration, including keeping copies of everything and organising it accordingly, is so important,’ she added.[1]

Residential landlords 'should offer longer tenancies'

Residential landlords ‘should offer longer tenancies’

Importance of inventories

Landlords should make sure, the AIIC states, that they recognise the importance of records and evidence, particularly for long-term agreements. This once again underlines the need for a thorough, professional inventory to be conducted at the start of the tenancy.

‘There are more grey areas over the condition of a property the longer a tenancy goes on. A detailed inventory will help landlords and tenants to determine exactly how the property’s condition has changed over the course of the tenancy, what can be deemed fair wear and tear and what needs to be replaced and therefore deducted from the tenant’s deposit,’ Barber concluded[1].

[1] http://www.propertywire.com/news/europe/uk-landlords-tenancy-terms-2016041211782.html