Posts with tag: tenants

Importance of Smoke Alarms Stressed as Young Boys Die in Fire

Published On: February 23, 2016 at 3:13 pm

Author:

Categories: Landlord News

Tags: ,,,,,

Two young boys have died following a fire in their rented home, where there were no working smoke alarms, according to the Fire Service.

Logan Taylor, three, and Jake Casey, two, were rushed to hospital following the afternoon blaze at the rental property in Huddersfield. Sadly, neither of the boys could be saved.

Their mother, Emma Taylor, and older brother, Finlay, six, managed to escape the house as the fire took hold.

Deputy Chief Fire Officer Dave Walton has stressed the importance of smoke alarms, as he revealed that no working devices were found in the property.

He reports: “We can confirm that at the time of the fire, there were no working smoke alarms in the property.

“Further investigations are ongoing to determine the exact circumstances, but we urge people to always have a working smoke alarm and to test it regularly.”

He adds: “Whilst early indications are that the cause of the fire is not suspicious, investigations are ongoing and it may be some days before we have a conclusive cause of the fire.”1

It is believed that the blaze was started by an electrical fault in the front bedroom of the house.

Landlords have been legally obliged to install fire alarms on each floor of a rental property since 1st October 2015. They must ensure the devices are working at the start of each new tenancy. After this, tenants are responsible for making sure that the smoke alarms are working.

Over the next few days, fire crews will be in the area around the house offering fire safety advice and fitting smoke alarms where required.

West Yorkshire Police says that the fire appears to be a “tragic accident”, but the investigation is continuing1.

Under the Smoke and Carbon Monoxide Alarm (England) Regulations 2015, landlords or their letting agents must install not only smoke alarms, but carbon monoxide detectors in any room used as living accommodation where solid fuel is used.

For more information and advice on the requirement, read the Government’s guide here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/464717/150929_SC_Explan_book_Annex_A_LandlordsTenants_REVISED.pdf

Earlier today, we reported that Gas Safe Europe has created a new product, designed to help landlords and letting agents comply with the legislation. Here are the details: /new-product-to-assist-in-smoke-alarm-legislation-compliance/

Ensure that you protect your tenants by keeping up to date with the latest landlord law and regulations.

1 http://www.dailymail.co.uk/news/article-3459763/No-working-smoke-alarms-house-boys-aged-two-three-died-electrical-blaze.html

Yet More Tenants Move Onto Universal Credit

Published On: February 22, 2016 at 12:28 pm

Author:

Categories: Finance News

Tags: ,,,

Since the start of the year, we’ve been keeping you up-to-date with Universal Credit as it rolls out across the UK.

The Government’s new welfare system means claimants are now paid one monthly payment of all of their benefits, instead of receiving them separately. This includes housing benefit.

Yet More Tenants Move Onto Universal Credit

Yet More Tenants Move Onto Universal Credit

So how could this affect private landlords? For landlords with tenants on benefits, the main difference will be that the landlord is no longer paid housing benefit directly – the tenants are now responsible for paying their rent themselves.

Additionally, there have been reports of long crossover times between the old system and the new, which have pushed some claimants into debt. As a result, some landlords may face rent arrears. Remember to communicate with your tenants about changes to their finances and protect yourself with rent guarantee insurance.

From today, more tenants will move onto Universal Credit, as it continues its rollout. If you have rental properties in any of the following areas, be aware that as of today, any tenants you have on housing benefit may face financial difficulties in the coming weeks.

  • AL3 8 and AL5 3 in St Albans.
  • CA8 2, CA8 7 and CA9 3 of Carlisle.
  • CF5 5, CF5 6, CF11 7, CF11 8, CF32 0, CF61, CF62, CF63, CF64 and CF71 in Cardiff.
  • DH8 9 in Durham.
  • HP4 1 in Hemel Hempstead.
  • LU1, LU2, LU3, LU4, LU5, LU6 and LU7 of Luton.
  • MK17 8, MK17 9, MK43 0, MK43 9, MK44 3 and MK45 in Milton Keynes.
  • NE10 8, NE13 6, NE15 0, NE17, NE19, NE20, NE22, NE23, NE24, NE25 0, NE25 9, NE26 4, NE27, NE31, NE32, NE33, NE34, NE35, NE36, NE37 3, NE41, NE42, NE43, NE44, NE45, NE46, NE47, NE48, NE49, NE61, NE62, NE63, NE64, NE65, NE66, NE67, NE68, NE69, NE70 and NE71 of Newcastle upon Tyne.
  • SG5 3, SG5 4, SG15, SG16, SG17, SG18 and SG19 1 in Stevenage.
  • SR5 1 and SR6 of Sunderland.
  • TD12 and TD15 in Galashiels.

Details of the previous rollout postcode areas can be found here: /do-your-tenants-receive-housing-benefit/

For the latest updates and landlord advice, remember to visit LandlordNews.co.uk.

Tenants staying in PRS for longer

Published On: February 22, 2016 at 11:33 am

Author:

Categories: Property News

Tags: ,,,,

Latest government figures suggest that private rental sector tenancies are getting longer.

Additionally, data from the report shows that the typical length of residence in a family-sized rental unit is increasing.

Rises

The English Housing Survey 2014/15 shows that in the last 10 years, the proportion of privately rented homes with dependent children has risen from 30% in 2004-05, to 37% in 2014/15.

In addition, the average length of private sector residencies rose to 4 years, from 3.5 one year ago. The survey also found that tenants living in privately rented accommodation for a greater length of time generally paid less.

Tenants staying in PRS for longer

Tenants staying in PRS for longer

Break down barriers

As a result, the RLA has called on the Government to break down barriers that prevent longer-term tenancies. These include restrictions imposed on landlords by lenders

RLA chairman Alan Ward, believes, ‘more can be done to help landlords offer longer term tenancies without the need for compulsory three or five tenancies. We are calling on the Government to use the Housing and Planning Bill to remove barriers preventing landlords from offering longer tenancies, including mortgage and leasehold conditions that may prevent this.’[1]

‘Notable increases in the average length of time tenants stay in a private rented property show the system already enables longer tenancies that so many are calling for. Landlords are already meeting tenants’ requirements and there is no need for heavy-handed legislation that would disrupt supply of badly-needed accommodation,’ Ward went on to say.[1]

 

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/private-rental-sector-tenancies-for-families-are-getting-longer

 

Two Peers to Call for Right to Rent Rollout to be Postponed

Published On: February 22, 2016 at 9:41 am

Author:

Categories: Landlord News

Tags: ,,,,

Two peers are set to challenge the Government this week over the rollout of the Right to Rent scheme.

On Wednesday (24th February), Liberal Democrat peer Baroness Hamwee will move that the commencement order of Right to Rent under the Immigration Act 2014 should be annulled.

Two Peers to Call for Right to Rent Rollout to be Postponed

Two Peers to Call for Right to Rent Rollout to be Postponed

Meanwhile, Labour peer Lord Rosser will move that “this House regrets that the Immigration Act 2014 (Commencement No 6) Order 2016, laid before the House on 11th January was laid following inadequate consultation, and asks the Government to undertake a further consultation before the commencement order comes into force”1.

The Right to Rent scheme, which went live in England on 1st February, requires landlords or their letting agents to check the immigration status of prospective tenants before the start of a tenancy.

Further rollouts to the rest of the UK are expected, but the schedule has not been announced.

The Residential Landlords Association (RLA) says that it supports attempts to annul the commencement order.

The organisation believes that the evidence from the pilot scheme in the West Midlands, which operated from December 2014, was insufficient to justify the rollout.

The RLA believes that landlords were not sufficiently prepared for the scheme, as they weren’t offered the necessary information. It also warns that UK nationals without a passport would find it incredibly difficult to access private rental housing.

In a recent survey of 1,500 private landlords, the RLA found that over 90% had not received any information regarding Right to Rent, either by email, from an advertisement, from a leaflet or online, and 72% did not understand their obligations.

The RLA adds that tenants may see their rents increase, as over a quarter of landlords said they are considering raising rent prices to cover the costs of conducting the immigration checks.

Almost half (44%) said they would only let their rental properties to those with documents that they were familiar with, while 45% would only accept tenants who could provide the required documents immediately.

The RLA fully supports postponing the rollout.

1 http://www.publications.parliament.uk/pa/ld/ldordpap.htm

Landlords told to wait to replace furniture

Published On: February 21, 2016 at 10:10 am

Author:

Categories: Landlord News

Tags: ,,,,

Landlords are being advised to wait until the 6th April to replace any furniture in their property.

Accountants Blick Rothenberg LLP are guiding landlords to wait until after this date, when the 10% wear and tear allowance is replaced. These costs will then become deductible under a new relief.

Changes

Robert Pullen, personal tax manager at Blick Rothenberg noted: ‘from April 6 2016, the favorable 10% wear and tear allowance for fully furnished residential properties will no longer be available.’[1]

‘Instead, only the actual costs incurred in replacing furniture, furnishings, appliances and kitchenware provided for the tenants’ use will be deductible. Initial costs are not allowed, only the replacement of such items. The Government expects this measure will bring in around £165 million/year from 2017 onwards,’ he continued.[1]

Pullen went on to say that, ‘this is a significant step away from the wear and tear allowance, bringing the position more in line with general deductibility of repair costs or replacing toilets, boilers etc. Landlords of fully furnished properties will feel this change adds additional complexity to an increasingly complicated area of deductible costs, following closely on the heels of the restriction to finance cost expenditure.’[1]

Landlords told to wait to replace furniture

Landlords told to wait to replace furniture

Relief

Mr Pullen sees the changes as good news for landlords owning part or unfurnished homes, who will now be able to claim the new relief. At present, landlords do not generally receive much relief for associated costs after changes brought in from April 2014.

HMRC have pledged to provide ‘comprehensive guidance’ on the more complicated areas of whether a replacement is considered an improvement or not. Where the furniture is replaced to a modern equivalent, the improvement as a result of technological advances should be ignored, so that the cost is allowed in full.

However, qualifying furnished holiday lets and commercial buildings are not covered by these rules. As such, relief on the initial cost of items, as a well as replacements, remain allowed.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/2/landlords-advised-to-wait-until-april-to-replace-furniture

PCL rents drop for first time in two years

Published On: February 17, 2016 at 2:12 pm

Author:

Categories: Property News

Tags: ,,,,,,

The final quarter of 2015 saw rents drop in the capital for the first time in two years, according to a new report.

Cluttons estate agents has provided data suggesting that average Prime Central London rents dropped by 2% over the year to stand at £1,097 per week.

Falls

In addition, Cluttons claim rents are slipping faster than capital values, with average gross rental yields dropping to 3.16%. Despite this, the firm has reported an increase in buy-to-let activity in an attempt to beat the upcoming stamp duty surcharge.

Regions that have seen the most significant dips in rents include Notting Hill, where they slipped by 6.4%, Hollands Park (4.4%) and Marylebone (3.9%).

PCL rents slip for first two in two years

PCL rents slip for first time in two years

‘Landlords are growing wary of burgeoning supply levels at virtually every price point and are adjusting their rental incomes accordingly,’ said Faisal Durrani, head of research at Cluttons. ‘Furthermore, many tenants don’t realise they’re actually paying less than their predecessors in many cases. Some landlords are on the back foot and have been slow to adjust to the evolving conditions and are now undercutting one another to secure tenants,’ Durrani continued.[1]

Stamp Duty changes

James Hyman, Cluttons’ head of residential agency, noted, ‘in the lead up to any tax changes, there is always an increase in activity and the looming SDLT changes are no different, which we expect will become more evident in the coming weeks.’[2]

To this end, Cluttons has forecasted a reduction of the lettings market during 2016, but a growth of more than 16% before 2020.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/prime-central-london-rents-fall-for-the-first-time-since-2013