Written By Em

Em Morley

What is the Decent Homes Standard?

Published On: August 26, 2014 at 11:39 am

The Decent Homes Standard means accommodation rented out by the council or housing associations should meet a certain criteria. Homes that do not stick to the requirements need to be improved by the landlord.

Social housing, rented out by councils or housing associations in England should meet the Decent Home Standard.

Private rented sector properties are not required to follow the Standard, however, council’s can offer a private tenancy to those who are homeless, and these should be safe and in a reasonable condition.

A house will meet the Decent Home Standard by:

Meeting minimum safety standards for housing, using the Housing Health and Safety Rating System.
Being in a reasonable state of repair.
Having reasonably modern facilities and services.
Having efficient heating and effective insulation.

A property will fail the Standard if it does not meet all four of these measures.

If a landlord does not feel a house meets the Standard, repair and improvement works may be conducted. These are often completed through a planned improvement programme.

Through this plan, work can be carried out at different stages, for example, the council could replace all of the windows in their housing stock one year, and the next replace all kitchens, etc.

What is the Decent Homes Standard?

The council or housing association will collect lots of information in making the decision of whether a property meets the Standard.What is the Decent Homes Standard?

It should analyse:

Information and complaints from tenants.
Repairs and maintenance records.
Reports from residents’ associations.

A property will fail the Decent Homes Standard if it does not pass these checks:

The Housing Health and Safety Rating System (HHSRS)

The HHSRS measures serious problems within a property. It requires that there are no severe hazards that could lead to death or serious injury, for example, a fall caused by dangerous stairs.

Reasonable state of repair

A house must be in a reasonable state of repair to pass, for example, the roof must not leak and the heating system cannot be in a poor condition.

Reasonably modern facilities

Reasonably modern facilities does not apply if the property lacks three or more conditions from a specific list, for example, the kitchen and bathroom both do not have modern facilities and the kitchen also has an inadequate layout or lack of space.

Warm and weatherproof

A house must have an efficient heating system or effective insulation. This does not necessarily mean that if the property is damp or expensive to heat that it was fail to meet the Standard.

If tenants are not satisfied with the work done to comply with the Decent Homes Standard, they should contact their local council.

More landlords look to evict tenants

Published On: August 25, 2014 at 11:18 am

Author: Em Morley

Categories: Landlord News

Tags: evicting tenants,rental arrears

LSL Property Services has recently released concerning figures that suggest there are growing numbers of landlords seeking eviction of tenants through Britain’s courts.

Rising

The findings of the LSL Property Services report show that the number of court orders for possession rose by 5.9% during the fourth quarter of 2013. In addition, the figures were up by 10% on the same stage twelve months ago.[1]

However, despite these increases, the number of tenants facing severe rent arrears has fallen. According to LSL, the number tenants facing rental arrears in excess of 2 months has fallen by 35, 000 during the last year. Worryingly, around 67,000 tenants remain in serious financial trouble.[1]

Unknown

Paul Jardine, director of chartered surveyors Templeton LPA, believes that it remains to be seen what impact the economic recovery will have on vulnerable tenants. Jardine said, ‘Some households succumbed to the wave of unemployment that followed the 2008 crisis, and as the broader monthly squeeze tightened its grip. For a time – though still for only a small minority of tenants – there was a significant rise in rental arrears. But now as the jobs market gradually comes back to life, the effect on the most hard-pressed of households is clear to be seen.’[1]

Mr Jardine goes on to say that, ‘while wages are yet to pick up significantly, those in the most serious financial problems often face a lack of any earnings at all. So as the risk of unemployment retreats this year, those with serious problems paying their rent – and most at risk of losing their homes – are benefiting the most.’[1]

More landlords

It can be argued that the increase in court orders is due to the boom in the buy-to-let market. As Dean Woodman-Evans, director of The Landlord Association explains; -‘the number of private landlords renting property has increased so the number of evictions are bound to increase. With that said however, more and more evictions are due to rent arrears as tenants find it harder to meet competitive rental yields. We have noticed a distinct increase in cases by our own landlords.’[1]

[1] http://www.landlordexpert.co.uk/2014/08/25/the-landlord-association-announces-its-updated-panel-of-solicitors-to-aid-landlords-with-problem-tenants/

Fair Wear and Tear on Rented Property Misunderstood

Published On: August 25, 2014 at 9:16 am

Author: Em Morley

Categories: Property News

Tags: Wear and tear on rented property

Fair Wear and Tear on Rented Property Misunderstood

The most misinterpreted area of the whole renting process is fair wear and tear, says the Association of Independent Inventory Clerks (AIIC).

According to the AIIC, agents and landlords have unrealistic expectations about the possible deductions from a tenant’s deposit.

Fair Wear and Tear on Rented Property Misunderstood

Additionally, the AIIC says that within the letting industry, it is a common view that the House of Lords have outlined the terms on which a tenant cannot be held responsible for damage at the end of a tenancy. This states that a tenant is not accountable for anything spoilt by reasonable use of the premises and the ordinary operation of natural forces. Although the source of this is unknown, it is a common guideline across the industry.

Figures from the Tenancy Deposit Scheme’s annual survey reveal that 56% of all disputes are made up of cleaning related issues. 43% is due to damage to property, 30% for redecoration, rent arrears make 17%, and 13% for gardening issues.

55% of all disagreements were raised by tenants who are unhappy about proposed deductions from their deposits. Of these, only 21% received all of their deposit back. 45% of disputes were raised by landlords and agents and out of these, just 19% collected the amount in dispute.

Chair of the AIIC, Pat Barber, says: “I have lost count of the number of times that a landlord or letting agent has demanded that a property is repainted from top to bottom following a five-year tenancy, when the marks on the wall are no more than normal wear and tear.

“Everyone has their own view of what constitutes fair wear and tear. Landlords and letting agents may hold the view that a tenant is responsible for repainting a whole property at the end of their tenancy, however the law may not agree. A tenant on the other hand may believe that all the marks, pin holes and damage to the interior walls at time of check out will be covered by normal wear and tear. The same viewpoint is often also applied when assessing damage and wear to the contents of the property and its fixtures and fittings.”

“There are two main things to remember with wear and tear,” Barber explains. “Firstly, the tenant has a duty of care to return a property in the same condition at the end of the tenancy as found at the start and as listed on the initial inventory report, with allowance for fair wear and tear.

“Secondly, the law does not allow for betterment or new-for-old when assessing the action needed to be taken after a check out inspection. If an item was old at check in and after a two-year tenancy there is some additional damage, the law will not allow a landlord to simply replace this item with a new one. Instead, some sort of compensation is allowable towards future replacement. This betterment principle applies to cleaning issues as well. If a carpet was badly stained at time of check in, a landlord cannot expect the tenant to pay for cleaning at time of check out, no matter how long the tenancy has been.”¹

¹http://www.landlordtoday.co.uk/news_features/Fair-wear-and-tear-“misunderstood”

Rents Rise Faster than Incomes

Published On: August 22, 2014 at 12:21 pm

Author: Em Morley

Categories: Finance News

Tags: low wage growth,rent rises,unaffordable rents

Tenants are struggling to cope with rising rents and low wage growth, according to a new survey from flat and house share website SpareRoom.co.uk.

Rise and Fall

The website compared the absolute maximum a tenant indicated that they could spend on accommodation, against average room rental prices. Results show that average UK rents have risen by 10% since 2009. Worryingly, it was found that during the same period, tenants’ budgets fell by 0.5%, with many struggling with an increased cost of living and minimal growth in wages.[1]

In London, rents have risen by 26% during the last five years, with budgets increasing by just 10%. Scotland was worst affected, with rents rising by 24% but budgets dropping by an alarming 22%.[1]

Rents Rise Faster than Incomes

The slowest rental increases in the UK were found in Northern Ireland at 10%, although tenants’ budgets for their rental accommodation dropped by 5%.[1]

Least affordable

Taking figures accrued from the past year into account, Scotland and London have become the least affordable places to rent. Rents within Scotland have risen by almost 10% in the last 12 months, with budgets only increasing by 5.1%. Rents in London have increased by 5.1%, with budgets rising by just 3%.[1]

The data from the last 12 months suggests that Wales is the most affordable country in the UK, with rent rises around 1.7% and budget increases at 4%.[1]

Scarce

The Office of National Statistics said that weekly earnings are rising by just 1.7% per year, but average rent prices increased by 5% between 2013 and 2014. Statistics also indicate that the average rent of a room in the UK works out at around 31% of the take home pay of an employee working full-time.[1]

Director of SpareRoom.co.uk Matt Hutchinson, suggests: “Affordable rents are becoming ever more scarce,” and “many people are still struggling with the cost of living.” Hutchinson alludes to the fact that “this isn’t being helped by the fact the wage growth is the lowest since records began.”[1]

Mr Hutchinson went on to say: “The problem is, we have a chronic shortage of housing in the areas where jobs are being created, so rents continue to rise as supply fails to meet demand.”

He believes: “The only obvious short-term solution is to encourage more homeowners to let their spare bedrooms and create supply.”[1]

Hutchinson indicates that the solution to the problem is to raise the Rent a Room Scheme tax-free threshold. He says that this threshold “hasn’t been increased since 1997 and rents have risen by 103% in that time.” Hutchinson believes that this will not only benefit renters; “it could stop thousands of homeowners slipping into arrears when interest rates finally rise.”[1]

[1] http://www.landlordtoday.co.uk/news_features/Tenants-struggle-as-rents-rise-faster-than-incomes

Illegal migrants may target landlords

Published On: August 22, 2014 at 10:11 am

Author: Em Morley

Categories: Landlord News

Tags: illegal migrants

New laws forming part of the Immigration Bill proposed for early 2015 have come under attack by members of some letting organisations. Under the new rules, landlords will have to perform more stringent checks on proposed migrant tenants, or face a hefty fine up to £3, 000.

Proposed changes

The new guidelines outline that landlords will be obliged to conduct checks on whether their potential tenant has the right to rent within the U.K. This will see the tenant having to provide relevant documentation to prove their eligibility. A pilot of the scheme is expected to be trialed within the West Midlands in late 2014.

Concern

A number thought to be upwards of 80% of illegal migrants live in privately rented accommodation. Despite the proposed scheme designed to be of assistance to landlords, there has been vocal opposition from some lettings groups.

Under the new rules, landlords will have to perform more stringent checks on proposed migrant tenants

Stephen Parry, Commercial Director with Landlord Assist, is concerned that there could be too much for landlords to deal with when assessing prospective tenants. Mr Parry is concerned that landlords and letting agents without adequate training on the new guidelines could be targeted.

Unfair penalty

While Mr Parry acknowledges that agents should undertake reasonable eligibility checks, he thinks that documentation such as visas could be difficult for them to understand. Parry stated that the, ‘significant financial penalty[1]’ faced by irresponsible landlords is, ‘unfair.’

Parry went on to say that it would be, ‘logical’ for the Government to provide additional assistance to landlords and agents before the Immigration Bill becomes law. This would be achieved, Parry said, with the provision of, ‘appropriate guidance notes,’ outlining how to perform the necessary checks.

Landlord Assist also highlighted the need for caution from landlords working without agents. According to the firm, these types of landlords may become the target for illegal migrants looking to exploit the changes in legislation.

[1] http://www.landlordtoday.co.uk/news_features/Warning-that-illegal-migrants-may-target-landlords

Eviction is a Last Resort

Published On: August 20, 2014 at 9:11 am

Author: Em Morley

Categories: Landlord News

Tags: Eviction

Eviction is a Last Resort According to Many Landords

A major new survey has revealed that landlords are reluctant to evict tenants, and when they do it’s for serious rent arrears or anti-social behaviour.

The study, for the Residential Landlords Association (RLA), challenges persistent claims that private landlords decide to evict their tenants when asked for repair work, in vengeful ejections.

The survey of more than 1,760 landlords discovered that 56% had evicted tenants from their properties. Almost 90% said that they had carried out evictions for rent arrears, with another 43% for anti-social behaviour. Nearly 40% were for damages to the property, and 20% for drug-related activity.

Less than 30% of landlords wanted to regain possession of the property, for reasons such as needing to sell. The RLA states that the survey proves that the majority of private landlords only seek to evict tenants when it is necessary.

Eviction is a Last Resort

Chairman of RLA, Alan Ward, explains: “We have been very concerned about claims that retaliatory eviction is a widespread practice, when there is very little hard evidence to back up those claims. As our survey underlines, the vast majority of evictions are down to rent arrears or anti-social behaviour. Landlords are being threatened with more regulation which would simply make it harder for them to evict bad tenants when they need to.”

A private members’ bill to prevent these retaliatory evictions has been proposed by Liberal Democrat MP Sarah Teather. However, the landlords who responded to the RLA survey rejected claims that they would evict a tenant if they asked for repairs.

Many of the landlords said that eviction is a last resort, and called for a more balanced debate. Their comments include:

“I would only ever evict a tenant if they were not paying rent and behaving badly/breaching their tenancy agreement.”¹

“The system is heavily biased against landlords. More consideration and emphasis should be placed on providing support for, not demonising, landlords.”1

“We seem to be easy and popular targets. This is disappointing for those of us who provide good quality housing and ethical treatment.”1

“It’s not all good tenant, bad landlord.”1

“We positively encourage our tenants to tell us about repairs that need doing so that we can leap on top of maintenance and prevent small repairs from turning into major repairs.”1

The RLA has expressed concerns about calls for Section 21 notices to be overhauled. These allow landlords to gain possession of properties at the end of a secure shorthold tenancy.

Ward says: “If landlords see Section 21 under threat they will withdraw from the sector. Landlords are frightened that they cannot evict tenants who are in rent arrears or who are guilty of anti-social behaviour easily and cheaply. We still have complaints that even under Section 21 there are costs and delays involved in obtaining possession.”1

Other concerns include the possibility that tenants in rent arrears could put in false repair claims to prevent eviction, if the moves to stop tenants being evicted for a period of time after they have requested repairs, are employed.

¹http://www.landlordtoday.co.uk/news_features/Landlords-don’t-evict-tenants-without-reason-says-RLA?tickertape=yes