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Em Morley

Unsafe homes generating £5.6bn per year

Published On: May 21, 2015 at 3:01 pm

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An alarming new report has suggested that rogue landlords in England are earning as much as £5.6bn per year by renting out properties which are unsafe and fail to meet legal standards.

The study from Citizens Advice has indicated that a shocking 740,000 households in England present a large threat to the health and wellbeing of their inhabitants. Causes of these problems arise from issues such as damp, faulty fittings and rat infestations.

Worrying findings

Gillian Guy, chief executive of Citizens Advice, said that, ‘Rogue landlords are putting profits before safety.’[1]

Their report, entitled, A Nation of Renters, suggests that of the 740,000 households affected by rogue landlords, 510,00 are children, while 180,000 homes include a disabled resident. Additionally, the report claims that £5.6bn is being generated through rent on properties that currently have category 1(the most severe) hazards. £1.3bn of this is said to come from housing benefit. [1]

Other main points to take from the report include the notion that 16% of homes in the privately rented sector are unsafe, compared to 6% in the socially rented market. Furthermore, the report suggests that 8% of privately rented properties have serious damp, while 6% are overly cold.[1]

According to the report, private renters living in homes with a category 1 hazard fork out an average of £157 per week on rental payments.

Tackling the problem

Encouragingly, the Government has issued councils with new powers in order to combat landlords who do not comply with sufficient safety measures. Ms Guy commented that, ‘the Government has rightly said it wants to tackle the country’s housing crisis,’ and believes that, ‘it must make targeting dodgy landlords, giving tenants better rights and driving up standards a major part of that effort.’[1]

Citizens Advice believes that over one million families are now raising children within privately rented homes in England. This number is said to be three times higher than just one decade ago. Also, the charity believes that private renters are currently not sufficiently protected, and that taking legal action against a landlord can turn into a drawn-out and expensive process.

Unsafe homes generating £5.6bn per year

Unsafe homes generating £5.6bn per year

As a result, Citizens Advice has recently launched their Settled and Safe campaign. As part of their report, the charity believes that:

*tenants should be entitled to full refunds where their properties are found to be dangerous or unsafe

*councils should implement a licensing scheme whereby specific issues in their local market are tackled

*a national landlord register should be launched, in order to stop rogue landlords from moving to different areas to avoid legal action

Advice

In the last year alone, more than 80,000 people asked Citizens Advice for their help regarding an issue with their private rented property. In addition, the charity has called for the immediate end to retaliatory evictions, where landlords unjustly evict tenants after they have made complaints about problems in their home.

Housing minister Brandon Lewis stated that, ‘no tenant should expect to live in unsafe housing which is why we have already introduced a range of powers for councils to tackle rogue landlords backed by £6.7 million of government funding.’ He continued by saying that, ‘tenants can also access our, ‘How to Rent’ guide and model tenancy agreement so tenants and landlords alike are clear of their rights and responsibilities.’[1]

Concluding, Mr Lewis said that, ‘the majority of landlords provide decent well maintained homes and unnecessary and excessive regulation on the private rented sector would push up prices and restrict choice for tenants.’[1]

[1] http://www.bbc.co.uk/news/uk-32815226

Councillor in Newham Investigated over Property

Published On: May 21, 2015 at 2:42 pm

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Councillor Ahmed Noor, representing the Plaistow South ward, has been handed an enforcement notice relating to 238 Romford Road.

Noor owns the home and converted it from a commercial property to a House in Multiple Occupation (HMO) without planning permission.

The enforcement notice was served in April, stating that the house was converted in the last ten years, providing “a poor quality of accommodation which is to the detriment of the persons who reside there.”1

A spokesperson for Newham Council says that the case is being investigated: “Following a visit to a commercial property, planning enforcement officers reported the property to London Fire Brigade and issued a planning enforcement notice.”1 

Noor owns a total of five properties in the London borough.

A Newham Labour Party spokesperson comments: “Ahmed Noor has been placed on suspension from the Labour Party group of councillors without prejudice, pending a full investigation by the Labour group whip.”1

1http://www.newhamrecorder.co.uk/news/politics/newham_councillor_investigated_over_property_scandal_1_4072292

Lewisham Helps Renters get on the Property Ladder

Published On: May 21, 2015 at 12:55 pm

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Raising the substantial deposits required for buying a home is a well-known problem for first time buyers. Without help from their parents, it is virtually impossible to get on the property ladder.

In the capital, it is an even bigger difficulty, with an average of £69,000 needed for securing a house, found Savills estate agent. However, one South East London suburb is helping those struggling.

Housing association L&Q has launched a scheme, Goldcrest House, on Lee High Road, Lewisham. Aspiring buyers can rent a one or two-bedroom flat at a subsidised rate; 20% less than commercially rented new builds in the area.

This will hopefully give tenants the chance to save for a deposit.

Under the scheme, titled UpToYou, renters can stay in the home for as long as they want and can then move to another rental property or buy themselves a home, either shared-ownership or outright, in the future.

L&Q is offering 29 properties, some overlooking the River Quaggy and the majority with balconies or terraces. They will be ready to move into next month.

Prices start at £930 per month, or £1,150 for a two-bedroom flat. Priority will be given to those already living in Lewisham.

The nearest station is Lewisham, which is a five-minute walk from Goldcrest House. Trains to Cannon Street or Charing Cross take about 15 minutes. To Canary Wharf, locals can take the Docklands Light Railway. An annual season ticket is £1,284.

The scheme sounds too good to be true, and to some Londoners, it will be. Rents at Goldcrest House have been set in line with new builds in Lee; better bargains could be found in older homes.

The area is also a redevelopment zone. The Leegate Shopping Centre has been named the worst in Britain, with over a third of shops empty. Lewisham Shopping Centre, however, is bustling, but lacks any independent shops.

Work has also begun on a six-year regeneration project in the town centre, meaning that traffic is awful and the area doesn’t look great.

There are some quality pubs and restaurants here, but not many. Locals usually prefer Blackheath or Hither Green for a night out.

L&Q’s sales negotiator for the scheme, Roxanne Halliday, has lived in the area and says that Goldcrest House is ideal because it is close to open space, transport and shopping.

She says: “The traffic problems will end when the regeneration is finished. You can get lots of ethnic foods and it is very diverse and friendly.”1 

1 http://www.homesandproperty.co.uk/property-news/affordable/first-time-buyers-lewishams-low-rent-route-getting-property-ladder

Homeless People are Criminals in London Borough

Published On: May 21, 2015 at 11:56 am

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Homeless people in East London could be criminalised after a ban on anti-social behaviour was introduced.

Homeless People are Criminals in London Borough

Homeless People are Criminals in London Borough

The new Public Space Protection Order in Hackney will see police and council officers demanding people stop any activities considered anti-social, including begging and sleeping rough.

The Order covers Hackney Downs, London Fields, Broadway Market, Mare Street and Regents Canal.

Those considered breaking the rules could be given a £100 fixed penalty notice or fined up to £1,000.

Chief Executive of homelessness charity Crisis, Jon Sparkes, says: “Any moves to ban and criminalise rough sleeping will be counter-productive and only make it harder for people to access the dedicated support they need to move away from the streets for good.”1

Councillor Sophie Linden, Deputy Mayor, defends the ban: “We introduced this Order after trying for months to deal with anti-social behaviour in the area, including offering support, housing and advice to those that are persistently sleeping rough.

“Enforcement action will always be the last resort. We will continue to make sure anyone who is sleeping rough is offered professional help and support.”1

This news arrives after research found that a third of Londoners do not earn enough to afford a decent standard of living. An individual would need an income of £27,000 per year to comfortably rent a flat in the capital.

1 http://www.independent.co.uk/news/uk/home-news/the-london-borough-that-has-turned-homeless-people-into-criminals-10265493.html

New shadow housing minister announced

Published On: May 21, 2015 at 11:48 am

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Despite ongoing uncertainty on who is going to take over Ed Milliband’s recently departed leadership role, the Labour party has moved quickly to announce a new shadow housing minister.

Durham MP Roberta Blackman-Woods has taken over the role as the party aims to regroup following its hugely disappointing performance in the general election.

Profile

Blackman-Woods hails from Northern Ireland and has been in Parliament since 2005. A sociologist with a keen interest in the housing market, she boasts a varied C.V. After being employed as a welfare rights officer at Newcastle City Council, she then took on a role as a university lecturer in social policy.

In the shadow cabinet, Ms Blackman-Woods has been minister for communities and local government. Additionally, the Durham MP has also been shadow minister for civil society and shadow minister for business, covering regional and economic policy.

New shadow housing minister announced

New shadow housing minister announced

 

In September, she told a conference designed for planning professionals that the Labour party was hugely concerned over the capacity of planning departments. In her address, Blackman-Woods said, ‘absolutely everybody talks to me about this, and so we really have to think and we’ve addressed this a little with the Lyon’s review of how we get more resources into planning departments so they are able to undertake some of this preparatory work.’[1]

She continued by saying that, ‘I’m absolutely convinced that in the long-term, it will speed up planning because if you get consent early on, then we should be able to truncate some of the timescales in terms of getting planning approval.’[1]

Labour have confirmed that Ms Blackman-Woods will be responsible for both housing and planning. In the past, Labour had separated these two positions.

[1] http://www.insidehousing.co.uk/policy/politics/central-government/labour-appoints-new-shadow-housing-minister/7009861.article

 

 

Cases of Serious Rent Arrears up 4%

Published On: May 21, 2015 at 11:22 am

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Improvements in regard to the number of tenants behind on rent stalled at the start of 2015, found a study by Your Move and Reeds Rains, which tracked tenant arrears.

In the first quarter (Q1) of 2015, there were 70,900 tenants in serious rent arrears, defined as over two months of unpaid rent. This is 1,500 more households than the previous quarter, when 69,400 tenants were in the same situation, a quarterly rise of 2.2%.

Since the same period of 2014, the amount of tenancies in serious arrears has grown by 4%, as 2,700 extra households fell into the most serious category of unpaid rent.

This lack of progress has caused a levelling off in the number of renters in the worst financial state. The highest level of rent arrears was seen in Q3 2013, when 116,600 households were two months or more behind on rent. In Q1 2015, there were 45,700 fewer tenancies in this situation.

However, growth has fallen back in the last 18 months, with Q4 2013 the best quarter on record, with only 63,500 cases of serious rent arrears.

Despite the lack of improvements since this period, the likelihood of a tenant falling into serious rent arrears is extremely low. Proportionally, only 1.4% owed over two months’ rent in Q1 2015, the same percentage as Q4 2014. Comparatively, 2.9% of tenants were in the same situation in Q1 2008, before the worst of the recession.

Cases of Serious Rent Arrears up 4%

Cases of Serious Rent Arrears up 4%

Although progress has slipped back, those falling only slightly behind on payments has improved. In March 2015, 7.4% of rent was in arrears of any length, down from 7.6% in February and 7.8% in March 2014.

Similarly to serious arrears, late payments of any length are much lower than in previous years, since the record high of 14.6% in February 2010.

Director of estate agents Your Move and Reeds Rains, Adrian Gill, says: “Tenants are now far less likely to be out of work than at this point last year; a low-paid job is clearly better than no job at all and this has had a massive effect on tenant finances as a whole. But the easy progress from a lower unemployment rate may now have been made.

“Earnings are at a crunch point too. Many tenants are still struggling to keep up with household expenses in the face of extremely modest wages. There are some signs on the horizon this will improve, but in the meantime, a small but significant minority of households are facing a real challenge to find the rent every month.

“Other factors are at play too. There are also more cases of severe arrears, in absolute terms, because there are more people renting their home overall. The chance of a given tenant failing to pay the rent within a couple of months is extremely low, and falling. The flipside to these figures are that more than 98% never get into serious arrears.”

Effect on eviction rates

Latest research from Q1 2015 revealed that 28,900 tenants faced a court order for eviction, on a seasonally adjusted basis. This is an increase of 2.3% on Q4 2014. Annually, there has been a decrease in eviction orders of 7.9% since Q1 2014.

Mortgage arrears

The amount of buy-to-let mortgages over three months in arrears dropped by 4.8% between Q3 and Q4 2014, marking the ninth consecutive quarter of progress. At the end of 2014, the total number of cases was 11,900. This is the lowest figure since the start of 2008.

In annual terms, the amount of landlords in mortgage arrears has declined by 27.9% since Q4 2013 when it was 16,500.

Gill continues: “After the election result, many landlords will be grateful that certain policies are no longer an immediate threat. In particular, the long-term effect of rent controls would have only been to raise rents by squeezing supply, diminish the quality of rented homes and make life for tenants worse.

“Whatever the rather different uncertainties of a Conservative majority, it now looks like Labour’s rent controls are completely off the cards. A serious risk of disruption to landlords has evaporated overnight, and in the short term this will boost investment.

“However, in the longer term, tenant finances are the most effective limit on rents. Tenants must be able to afford their rent for any landlord to realise their financial plans on paper. In this way, landlords depend more on the prosperity of their tenants than on any particular policy or political environment.”

Gill concludes: “Given demand for homes to let is still surging and the financial position of most households is starting to improve, the big picture is increasingly optimistic for any landlord looking to grow their portfolio.

“The only caveat must be that there is still a very small chance that tenants will fall into financial difficulties. Landlords can’t discount them completely, and need to keep all lines of communication open and investigate any potential problems at an early stage.”1

1 http://www.propertyreporter.co.uk/landlords/serious-rent-arrears-up-4.html