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RLA: Shelter is stoking needless fears for tenants

Published On: January 15, 2020 at 10:32 am

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Categories: Tenant News

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RLA: Shelter is stoking needless fears for tenants

The Residential Landlords’ Association (RLA) has today urged caution on groups such as Shelter, who they say claim to represent tenants, but may be fuelling stress by giving them a bad impression of landlords.

Responding to new research published by Shelter today, The RLA says that no one should feel ill or stressed as a result of their housing situation, whether that it is in the private or social rented sectors or in the home ownership market.

Shelter’s research shows that renting is making people ill, with nearly half of those surveyed saying that renting has caused them to suffer from stress and anxiety,  and a quarter to get physically sick. 

The RLA, however, says that rather than relying on what they believe to be a poll based on a limited sample group, with potentially loaded questions, people should refer to the official 2017-18 English Housing Survey published by the Ministry of Housing, Communities and Local Government (MHCLG) which shows that:

  • 84% of private sector tenants are very or fairly satisfied with their current accommodation, a higher proportion than tenants in the social rented sector.
  • Private sector tenants live in the same rental properties for an average of 4.1 years.
  • The proportion of private rented housing with at least one of the most dangerous ‘Category 1’ hazards has halved over the last ten years to 14 per cent.
  • The amount that tenants in private rented housing are paying in rent as a proportion of their income is falling, whilst in the social rented sector it is increasing.
  • Almost 90% of tenancies brought to an end are done so by the tenant, not the landlord.

David Smith, Policy Director for the RLA, said:

“We accept that, unfortunately, some private sector tenants will feel unhappy and stressed as a result of their housing but the same will apply to many social housing tenants and owner occupiers. We accept also that not all landlords are perfect but the objective assessment is that the overwhelming majority of private sector tenants are satisfied with their accommodation and enjoy a good relationship with their landlord.

“It is vital that tenant groups properly reflect this, rather than stoking fears that tenants are about to be evicted for no apparent reason, live in substandard accommodation and are charged exorbitant rents. This is simply not true and it is irresponsible to suggest so.

“We do all we can to support landlords to provide high standard, secure and affordable tenancies and we call on tenant organisations to work with us to help achieve this and root out the bad landlords that none of us wishes to see in the market.”

Portico Reveals 8 Potential Property Hotspots for 2020

Published On: January 15, 2020 at 10:08 am

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Portico Reveals 8 Potential Property Hotspots for 2020

If you’re looking for somewhere new to invest this year, leading estate agent Portico has revealed eight potential London property hotspots for 2020.

With house prices in London remaining relatively flat over the last couple of years and wage growth increasing, the agent has calculated that it has become 10% more affordable to purchase a property in the capital.

Vatche Cherchian, Portico’s Regional Director, comments: “While house prices in London have remained relatively flat over the last couple of years, wage growth hasn’t. We’ve actually seen a 4% growth year-on-year in wages. And if you tally that wage growth increase up against flatlining London house prices, what you’re saying in real-terms is that it has become around 10% cheaper to buy a property, which is encouraging.”

There has also been an increasing demand for rental properties in London, but a low supply of stock. This has resulted in increasing rents and healthy yields.

The recent housing report from Tony Blair states that, if we see the Conservative manifesto proposals carried out, we could see a 26% rise in prices. For investors looking to use these factors to their advantage, Portico has used its extensive market research and London rental yield data to conclude the following property hotspots for 2020:

1. Barking & Dagenham 

Average house price: £318,527*

Average rental yield: 5.4%**

2. Sutton 

Average house price: £387,286*

Average rental yield: 4.4%**

3. Havering 

Average house price: £392,031*

Average rental yield: 4.9%**

4. Ilford 

Average house price: £421,226*

Average rental yield: 5.5%**

5. Newham 

Average house price: £445,425*

Average rental yield: 4.9%**

6. Redbridge 

Average house price: £488,632*

Average rental yield: 5%**

7. Hounslow 

Average house price: £497,758*

Average rental yield: 4.7%**

8. Tower Hamlets 

Average house price: £545,550*

Average rental yield: 4%**

*Rightmove data correct as of 16.12.2019

**Portico rental yield map data correct as of 16.12.2019

Liverpool Mayor shocked by government’s decision to scrap renting scheme

Published On: January 14, 2020 at 10:06 am

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Liverpool Mayor shocked by government’s decision to scrap renting scheme

Liverpool Mayor, Joe Anderson has said that he will be writing to the government after they made the decision to stop supporting the city’s successful scheme aimed at improving the standards of rented property across the city.

An application to keep the licensing scheme running for another five years has been rejected by Communities Secretary Robert Jenrick. This is despite the scheme being supported by Merseyside Police, Mersey Fire and Rescue Services and a large number of local residents. 

The scheme saw private landlords in the city having to prove that their properties met fire, electric and gas safety standards and that the properties were in a good state of repair. As part of the scheme, licenced landlords would be subject to inspections to ensure that standards remain high. 

Schemes that cover more than 20% of a local authority’s area require government approval, but it was assumed that approval would be received after the scheme was widely praised for driving up standards in the 55,000 rental properties across the city. 

Mayor of Liverpool Joe Anderson said: “This decision is not only ill-thought through and short-sighted, it also puts the lives of some of our most vulnerable tenants at risk.

“This decision flies in the face of the Government’s tough talk on housing standards, particularly around fire safety in rented properties.

“Over the last five years our officers have come across people whose landlords are happy to take their rent while allowing them to live in appalling conditions with unsafe electrics, gas supply and no fire doors to protect them in the event that a blaze breaks out.

“The Landlord Licensing scheme has enabled us to create a team to be able to hit the streets every day and carry out inspections of properties and bring rogue landlords to book. It is not just about raising housing standards – it is about protecting and saving lives.

“This Government has already taken away £436 million of our funding since 2010 and is now weakening our power to improve housing standards for those who are part of generation rent to the bare minimum.

“All of the talk of devolution away from Whitehall rings hollow when we see ministers in London making vital decisions about cities like Liverpool and other areas they never step foot in.”

Upcoming change to housing allowance not enough to help tenants

Published On: January 14, 2020 at 9:35 am

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Upcoming change to housing allowance not enough to help tenants

Last year we shared the news that the Government plans to end the freeze on housing benefits. However, there is concern that this may not be enough to help tenants.

The Residential Landlords Association (RLA) believes that many tenants might still be left unable to afford their rent.

This concern follows the announcement that from April the Local Housing Allowance (LHA) will increase by inflation, as measured by the Consumer Price Index. The RLA points out that the Allowance has been frozen since 2026. Therefore, this rise of around 1.5% is bound to leave tenants considerably out of pocket.

The LHA was introduced in 2008 in order to calculate housing benefit for those living in private rented accommodation. Prior to 2016, the LHA was based on enabling a tenant to afford to rent a home in their area. It was calculated that 30% of homes available should be cheaper and 70% more expensive. 

We’ve all seen how rents have moved in different areas over the years. Some have had steeper increases than others, instead of a flat rate increase. Because of this, the RLA is calling for the LHA to again be based on this 30th percentile level.

John Stewart, Policy Manager for the RLA, has commented: “The benefit level needs to reflect the realities of the level of rents locally. Given rents have risen by an average of 5%, and in some areas more than that over the last 4 years, a rise of 1.5% in the benefit level is not going to be much help to a tenant struggling to afford the rent in those areas and many others.

“If it really wants to help tenants, the Government should restore the direct link between rent levels and the LHA instead of a paltry flat rate increase.”

The price of renting a room has gotten cheaper in London

Published On: January 13, 2020 at 10:28 am

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The price of renting a room has gotten cheaper in London

Over the past 12 months, the price of renting a room in London has dropped by 3% according to the latest numbers from SpareRoom. 

At first glance it appears that London is merely following a nationwide trend, but the data, which covers 250,000 listings reveals a different story upon closer inspection. When London is excluded from the overall national figures, the data shows that the average room price has RISEN by 2%.

But why is this?

All the way back in 2017, London was seeing stagnation of rent prices. This was due to an increase in the number of available homes. Plus, being the most expensive region in the country to rent, meant that there was more room for renters to negotiate. 

These eye-watering rent prices may have finally backfired altogether and been forced to drop in order to be slightly more affordable.

Meanwhile, in North West England and Northern Ireland, room rental prices have increased by around 3% since this time last year. In spite of this, Northern Ireland still remains the cheapest region to rent in.

At the other end of the spectrum, excluding London, the South East is the most expensive region in the UK to rent at £528pcm, followed by East Anglia at £493pcm and Scotland at £480pcm. 

When London is broken down by area, East and West Central are the most expensive at £1,076pcm and £1,007pcm respectively. The NW area has seen the biggest drop across the capital, with a 2% decrease in monthly rents.

Scotland short-term lets to see introduction of new regulation

Published On: January 13, 2020 at 9:32 am

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Scotland short-term lets

New methods to regulate short-term lets are to be introduced by the Scottish Government.

From spring 2021 local authorities will see an introduction of powers that will allow them to regulate short-term lets.

The Government has clarified that its aim is to enable councils to become better informed about what is happening in their area, improve safety and assist with the effective handling of complaints.

The licensing scheme will include a new mandatory safety requirement. This will cover every type of short-term let with the aim to ensure a safe, quality experience for visitors.

Ministers have committed to giving careful thought to how short-term lets will be taxed in the future.

Housing minister Kevin Stewart commented: “Short-term lets can offer people a flexible travel option and have contributed positively to Scotland’s tourism industry and local economies across the country.

“However, we know that in certain areas, particularly tourist hot spots, high numbers of short-term lets are causing problems and often make it harder for people to find homes to live in.

“That is why we are empowering local authorities to implement a system that works for their area. By giving councils the power to set conditions around short-term lets licences and put in place planning control areas to tackle hot spots, communities across Scotland will be able to decide what is best for them and their local economy.

“Everybody wants visitors, hosts, neighbours and local residents to be safe. That is why the licensing scheme includes a safety element which will be mandatory across Scotland for all short-term lets. Separately, local authorities will be given discretion to include further conditions to help tackle littering or overcrowding of properties.

“These powers will allow local authorities to ensure a safe, quality experience for visitors, whilst protecting the interests of local communities.”

David Cox, Chief Executive of ARLA Propertymark, has also responded to this news: “It’s positive to see that the Scottish government are taking steps to regulate short term lets. 

“In some urban areas, the supply of local housing is under intense pressure and as the private rental sector becomes increasingly regulated, landlords are moving further towards the less regulated short-term letting space which further reduces this supply. This can also result in lower quality accommodation for tenants and overall creates a vastly uneven playing field.

“By further regulating the sector, local authorities will be able to control the number of short term lets in Scotland, but also ensure that effective health and safety requirements are put in place to protect those seeking a short term let.”