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Em Morley

RLA Urges Clarity on Revenge Evictions

Published On: December 16, 2014 at 2:21 pm

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Categories: Landlord News

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Recent proposals to create legislation designed to restrict so-called revenge evictions have come under fire from MPs and peers alike.

The Residential Landlords Association (RLA) is one of a number of organisations joining cross-party MPs in calling for more data to be assessed to see if the legislation is actually worthwhile.

Failure

RLA Urges Clarity on Revenge Evictions

RLA Urges Clarity on Revenge Evictions

Revenge or retaliatory evictions are notice orders served by landlords or letting agents after a tenant has complained to the landlord about the state of their property. Last month, a private member’s bill to address the problem of revenge evictions failed to make it through the House of Commons. Instead, members plan on debating the measures as an amendment to the Deregulation Bill.

Furthermore, the All Party Parliamentary Group (APPG) has recently published a report stating that unless additional information is sourced, the “bewildering” amount of data involved does not make legislation “the best tool.”[1]

Opportunity

Reacting to the report, the RLA said that it offered a welcome opportunity for the real extent of retaliatory evictions to be assessed before pushing forwards with legislation. Alan Ward, Chairman of the RLA, said that the report brings “some much needed clear thinking to the debate which should be based on facts and data and not on hyperbole.”[1]

While acknowledging that “retaliatory evictions are wrong,” Ward went on to say that the RLA “agrees that Parliament needs clear, independent evidence on the scale of the problem before it can decide how best to take the matter forward.” Ward suggests: “The Minister has admitted the Government does not have the data.”[1]

Amendment

A change to the Deregulation Bill would see landlords, upon receiving notice from their local authority to improve their property, not being able to regain possession of their home for a minimum of six months. The RLA believe that this change would offer nothing worthwhile for a landlord to improve problems quickly. Instead, they back the APPG’s call that landlords should be able to take possession again as soon as work is complete.

In addition, the report calls for a set time limit on how long a local authority has to investigate any complaints. Once this has been completed, MPs and peers featuring in the report say that landlords should be able to repossess the property immediately. This will avoid any periods where tenants and landlords are non-the-wiser on what is happening to the property.

Ward said that it is “simply absurd that the amendment could potentially leave a tenant trapped in what could be unsafe properties for a prolonged period of time.”[1]

[1] http://www.landlordtoday.co.uk/news_features/RLA-urges-clarity-before-legislation-on-revenge-evictions

 

 

Government Offers New Homes with 20% Discount

Published On: December 16, 2014 at 2:11 pm

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Some first time buyers may receive a new home at a 20% discount, as the Government aim to get more people into the property market.

The Starter Homes scheme will offer new houses to 100,000 first time buyers with a 20% discount, and will be launched by David Cameron.

Available to those under 40 years old who have never owned a house, buyers can register for the scheme via the Starter Home Initiative from the beginning of 2015. This has been moved forward six months.

Due to changes in the planning system, underused or impracticable brownfield land will be unbound from certain fees, in return for low sale prices on properties built on the site.

Councils and developers are being encouraged to make sure that these changes release a range of sites around the UK.

Mr. Cameron says: “Hard-working young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that.

“Under this scheme, first time buyers will be offered the chance of a 20% discount, unlocking home ownership for a generation.

“This is all part of our long-term economic plan to secure a better future for Britain, making sure we are backing those who work hard and get on in life.”1

Eric Pickles, Communities Secretary, comments: “The 2008 housing crash blocked millions of hard-working, creditworthy people from becoming homeowners, at a time in their lives when they should have been able to expect to get on the property ladder.

“We’re turning that around with Help to Buy, but today’s new Starter Homes scheme will offer a further boost, giving young people, under 40, the opportunity to buy low-cost, high quality new homes for significantly less than they would normally expect.”1

Executive Chairman of the Home Builders Federation, Steward Baseley, believes that the scheme is “another positive step” in fighting the shortage of housing.1

Government Offers New Homes with 20% Discount

Government Offers New Homes with 20% Discount

Currently, developers can experience bills of around £15,000 per home under Section 106 affordable housing contributions and tariffs.

However, the scheme would ensure that developers providing Starter Homes would not have to pay certain fees.

These savings will also be passed onto buyers, by the houses being unavailable for sale at market value for a fixed timeframe.

Over 30 builders have already supported the scheme, and are considering putting forward land to be developed next year.

A design panel will be involved to provide cheap, and high quality properties.

Panel member Sir Terry Farrell, a celebrated architect, said this could make a real difference.

He also said that the homes would be built on the recommendations of the Farrell Review, who encourage proactive planning.

Sir Terry says: “Only by planning and designing our villages, towns, and cities together with local communities can we create the kind of built environment we all aspire to and should be demanding.”1

Emma Reynolds, shadow housing minister thinks that no one will believe David Cameron’s promises. She says: “The only way to restore the dream of home ownership is to build more homes, and Labour has a plan to get at least 200,000 homes built a year by 2020.

“We are in favour of building starter homes, but it is not clear how the Government is going to deliver these homes 20% cheaper than market price.”1

1 http://news.sky.com/story/1391931/david-cameron-launches-home-discount-scheme

 

 

MP Called the Friend of Rogue Landlords

Published On: December 16, 2014 at 12:53 pm

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A Conservative MP has come under fire from a leading national newspaper following his supposed opposition to the prevention of revenge evictions.

The Independent branded Philip Davies, Tory MP for Shipley, as being “Britain’s most-belligerent MP” after he supposedly “talked out” a proposal to stop these types of evictions by rogue landlords.[1] The newspaper was also unhappy on Davies’ similar actions towards legislation concerning smoking bans, gay rights and overseas aid.

Revenge evictions

So-called revenge evictions are where landlords serve eviction notices on tenants after they have complained about the condition of the property, or have asked for basic improvements to be made.

According to the newspaper, Mr Davies made an hour-long speech, opposing the Tenancies Reform Bill, which was proposed by Liberal Democrat MP, Sarah Teather. If the bill had become law, tenants would have received greater protection against rogue landlords. Despite being defeated, with assistance from Davies, a new version of the legislation will be debated in the House of Lords next month.

MP Called the Friend of Rogue Landlords

MP Called the Friend of Rogue Landlords

Tactical

The Independent has accused Mr Davies of tactically elongating his speech in order to try and prevent support for the bill. During Davies’ speech, the deputy speaker of the House of Commons, said: “He has been talking for a very long time on the same point. He is in danger of repeating the same point continuously, and, dare I say it, repetition can get a bit tedious.”[1]

However, when questioned on his behavior, Mr Davies said: “When I first got elected to Parliament my mentor was Eric Forth [the former Conservative MP] and he really was the past master of talking out bills on a Friday.” He continued by saying that Forth “did it for fun and he was brilliant at it. After he died I vowed I would do the same kind of work.”[1]

[1] http://www.lettingagenttoday.co.uk/1293-mp-branded-as-the-friend-of-rogue-landlords

 

 

 

£3.5bn Boost in Build to Rent

Published On: December 15, 2014 at 12:43 pm

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A substantial investment for the build-to-rent sector has recently been agreed, which promises to give the whole industry a much needed boost.

£3.5bn Boost in Build to Rent

£3.5bn Boost in Build to Rent

Build To Rent

The Build To Rent scheme involves financial and other institutions subsidising the building of property and subsequently maintaining ownership of individual units.

Recently, the Government secured a deal with PRS Operations Ltd, who are a subsidiary of Venn Partners LPP. The agreement, signed by housing minister Brandon Lewis, has secured £3.5 billion worth of funding for the sector.[1]

Moreover, the Government’s private rented sector Housing Guarantee Scheme allows landlords of purpose-built rented houses to obtain long-term financing. These measures have been put into place to improve supply of professionally managed private rented houses. In turn, managers of these properties will compete with agents and landlords to add much needed demand to the sector.

The £3.5 billion worth of funding will be available in loan form for institutional landlords planning on investing a minimum of £10m in new purpose built rental accommodation.

[1] http://www.lettingagenttoday.co.uk/1287-huge-3-5-billion-boost-for-built-to-rent-sector

 

 

Are You Aware of the Risks to Your Letting Business?

Published On: December 15, 2014 at 10:45 am

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Becoming a landlord comes with many challenges and is not without risks. People become landlords for a variety of different reasons and many do not understand the potential pitfalls attributed to the role.

The National Landlords Association (NLA) has issued advice on two of the biggest challenges facing buy-to-let landlords in an attempt to warn them of the severest threats to their business. The two issues are:

Rent arrears

Figures from the NLA suggest that 32% of landlords have experienced rent arrears, from either late or non-payment, in the previous 12 months. Incredibly, the average amount of arrears that landlords have to face before they can serve a notice is an average of £1,500.[1] When legal fees and other expenses are factored in, costs can amount to thousands of pounds.

Are You Aware of the Risks to Your Letting Business?

Are You Aware of the Risks to Your Letting Business?

 

Other factors that rent arrears can lead to include missed mortgage payments and no funds for maintenance improvements. For landlords who have tenants that have run into arrears, the
NLA offers tips on how best to deal with the problem:

  • Manage your budget

By offering ten rent payments into yearly budgets, rather than the traditional, and expected, 12, landlords will be able to deal with any periods of non-payment.

  • Be sure of the identity of the tenant

This sounds obvious enough, although a growing number of landlords are being targeted by rogue tenants. With the Immigration Act 2014 poised to be rolled out across the country next year, landlords must be particularly vigilant on who they are letting to and if they have the right to rent in the UK.

  • Build tenant relationships

Landlords should attempt to build a lasting relationship with tenants from the very start of their agreement. By showing tenants around, answering questions and being approachable, landlords will more than likely gain trust and respect, limiting the chance of problems during the tenancy.

Interest rates

Having been at a record low rate for a number of years, interest rates are widely expected to rise within 2015. The NLA are warning landlords to be prepared for a rise and to ask themselves the following questions:

  • Would an increase in interest rates affect mortgage payments? If yes, then to what extent?
  • How would future buy-to-let or re-mortgaging abilities be affected?
  • Are saving plans and budgets designed to cope with interest rate rises? Is there room to re-adjust?

The NLA is urging landlords to consider their options now, so that they are fully prepared for when potential interest rate rises come into effect.

[1] http://www.landlordtoday.co.uk/news_features/Are-you-aware-of-the-risks-that-could-threaten-your-lettings-business

 

 

A Third of Tenants Dissatisfied with their Landlord

Published On: December 15, 2014 at 9:35 am

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A recent survey has suggested that a worryingly high three in ten tenants are dissatisfied with their landlord.

Big Tenant Survey

The Housing Partners’ 2014 Big Tenant Survey questioned over 61,000 tenants. Results indicated that 18% were dissatisfied with their current landlord, with 14% stating that they were very dissatisfied.[1]

More pleasing results showed that 28.5% were satisfied with their tenant and 15% were very satisfied. 25% were neutral.[1]

Satisfaction areas

When prompted to comment on specific areas of satisfaction/dissatisfaction, 28% of respondents said that they were unhappy with the condition of their homes. 24% said that their area was a poor one in which to live, with 22% stating that they were not proud of their home.[1]

60% of tenants in the North West said that they were proud of their property, with less than half (49%) of tenants in Greater London sharing the same feeling. Around one-third of tenants questioned in the survey said that they did not feel their rent showed value for money.[1]

A Third of Tenants Dissatisfied with their Landlord

A Third of Tenants Dissatisfied with their Landlord 

Lack of communication

Other findings from the Big Tenant Survey show that landlords are not communicating effectively enough with renters. A very concerning 44% of tenants said that they were dissatisfied with how their landlord responded to their concerns-24% being very dissatisfied and 20% just dissatisfied.[1]

A shockingly high 47% of tenants questioned said that they did not feel that their landlord cares about them or their family.[1]

Universal Credit

With the controversial Universal Credit welfare reform in the process of being rolled out across the U.K, 42% of those currently in receipt of housing benefit said that they were concerned about the changes.[1] As part of the new scheme, housing benefit will be paid directly to tenants, leading many to become concerned about future rent arrears.

The CEO of Housing Partners, Richard Blundell said, ‘the most important opinions in our sector belong to tenants. We believe that by giving a voice to the UK’s millions of social housing residents, we can establish better channels of communication between them, their landlords and Government, and help to restore the all-important trust in that relationship.’[1]

[1] http://www.djsresearch.co.uk/HousingMarketResearchInsightsAndFindings/article/Almost-One-Third-of-Tenants-Dissatisfied-with-their-Landlord-Market-Research-Reveals-01669