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Em

Em Morley

Wales Introduce Housing Bill

Published On: November 21, 2013 at 10:48 am

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The recent introduction of the Welsh Housing Bill seems to have paved the way for statutory regulation of all landlords and letting agents within the private rental sector.

Under the Bill, landlords or agents must become registered with their local authorities. If they do not, their tenants would be legally entitled to hold their rent payments.

Anger

The new proposals have sparked anger from the National Landlords Association (NLA). Their CEO Richard Lambert, said: “While it comes as no surprise that the Welsh Government wishes to register all private landlords, it is deeply disappointing that the plans appear mired in burdensome bureaucracy.”[1]

Lambert points: “The requirements outlined in the Housing (Wales) Bill require landlords to not only register, but to subsequently obtain a licence from what could be numerous local authorities, each of which may stipulate its own conditions and fees.” As a result, Lambert suggests that “duplication is inevitable.”[1]

Not necessary

Mr Lambert believes that it is “unnecessary and unhelpful” that landlords should have to provide details of their investment to local authorities “in the name of driving improvements and rooting out criminals.”

He believes that these measures “look certain to increase the cost of providing homes by forcing landlords to comply with yet more red tape,” instead of providing “solutions to the undersupply of residential property.”[1]

Despite his obvious consternation, Lambert said: “The NLA shares the Welsh Government’s desire to raise standards in the private rented sector.” However, he said that they “remain unconvinced that a national register of landlords is the right approach.”[1]

This, Lambert and the NLA believe, “will only serve to increase the cost of living for many hard-working families as the fee for registering and subsequently obtaining a licence will inevitably be passed on to tenants.”[1]

The proposals of the Bill have also been roundly criticised by the Conservative Party and Plaid Cymru.

Significant

When proposing the Bill in the Senedd, Carl Sargeant, Welsh Housing Minister, said: “This is a significant piece of legislation, and if passed, will become Wales’ first ever Housing Act.”[1]

Changes proposed in the Bill include the abolishment of Assured Shorthold Tenancies (ASTs), which will be replaced by standard tenancies across both the social and private sectors. Furthermore, the new legislation will see local authorities allowed to charge increased rates of Council Tax for second homes.

[1] http://old.lettingagenttoday.co.uk/news_features/Wales-%20Housing-Bill-seeks-to-regulate-all-agents-and-landlords

 

 

 

London 209% More Expensive than Rest of UK

Published On: November 20, 2013 at 4:40 pm

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For renters, London is over 209% more expensive than the rest of the country, reveals research by Move with Us.1

After the stability seen in September, London saw average advertised rents increase by more than £32 in October.

London 209% More Expensive than Rest of UK

London 209% More Expensive than Rest of UK

During the first half of the year, the South East and East Anglia also witnessed consistent rises in average rents. So much so, that these areas became beneficial and profitable alternatives for investors, rather than the London housing sector.

Average rents in these regions remain solid, at £1,145 and £889 correspondingly. However, the market seems to have steadied during the last half of the year, with slight declines of 0.13% and 0.6% respectively.1

Throughout October, rents rose around the country generally, strengthened by unexpected growth in regions that have recently seen stability or steady drops.

The result of this strength has been a 0.75% increase in the average advertised rent around the UK, as average rents were £975 at the end of October.1

In other parts, rent in the East Midlands, North East, and Wales saw rises at the end of the month, with average advertised rents growing by 4.31%, 4.19%, and 3.94% respectively.

Director of Move with Us, Robin King, says: “The surprise for October has been the sudden growth of approximately £25 in the average rents in the East Midlands, North East, and Wales.

“All three of these regions performed unimpressively over recent months and these unexpected peaks mean that the markets are expected to finish the year much closer to the advertised rents of October 2012, and in the case of the East Midlands, outperforming this level.

“The strong performance of these regions throughout October was contrary to the performance of other regions, but has been significant enough to push the average for the country up, while many of the strong performing and established regions have actually witnessed a decline.”1

1 http://www.landlordtoday.co.uk/news_features/Cost-of-renting-in-London-over-200-more-expensive

 

 

Carbon Monoxide Awareness Encouraged

Published On: November 19, 2013 at 5:22 pm

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Carbon Monoxide Awareness Encouraged

Carbon Monoxide Awareness Encouraged

The Carbon Monoxide Awareness charity recently launched their 8th annual National Carbon Monoxide Awareness Week at the House of Lords. At the launch, mum of four and founder of the charity Lynn Griffiths spoke passionately about the dangers of the gas.

Griffiths, who along with her family suffered from carbon monoxide poisoning for more than a decade, finds it incredible that people are still ignorant to its potential dangers. She said: “It is shocking that despite living in the information age, people still don’t realise that carbon monoxide is a colourless, odourless highly toxic gas that can kill in under three minutes.”[1]

Carbon monoxide

A highly dangerous gas, carbon monoxide is produced from the lack of combustion from any hydrocarbon fuel, such as coal, oil or petrol. Falling subject to carbon monoxide poisoning provides a grave risk to health. Those who experience just a low level of carbon monoxide poisoning can develop chronic health issues. The Carbon Monoxide Awareness charity is trying to raise awareness so that more people can identify early stages of poisoning and therefore do all they can to prevent serious injuries or fatalities.

The charity is urging people to protect themselves and their families by having their fuel-burning equipment serviced every 12 months. In addition, people are being advised to sweep their chimney at least twice a year and to install a carbon monoxide alarm in the relevant places in their residence.

Plea

A drop in donations during the past year has led to the charity being unable to deliver their message to as much of the UK as is normally possible. With this in mind, Griffiths is appealing to landlords and the media to give their support to the National Carbon Monoxide Awareness Week: “Please don’t let someone you know, love, work with or live close by to fall victim to this silent killer. It is absolutely vital that people start to understand the dangers of carbon monoxide poisoning and, most importantly, how we can all protect our homes and families from this silent invisible killer.”[1]

[1] http://www.landlords.org.uk/news-campaigns/news/carbon-monoxide-awareness-charity

 

 

Become a Successful First Time Landlord

Published On: November 19, 2013 at 4:46 pm

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On BBC Radio 4’s Money Box Live show, National Landlords Association (NLA) Chairman, Carolyn Uphill, says that first time aspiring landlords should not be discouraged by the negative press the buy-to-let market receives, and the potential financial difficulties.1

Uphill was responding to a prospective landlord looking to break into the buy-to-let sector.

Become a Successful First Time Landlord

Become a Successful First Time Landlord

“First of all, it’s imperative that prospective landlords don’t underestimate what they’re getting into,” says Uphill. “At the end of the day, it’s a business and landlords should know what they need to do to make that business succeed.”

She continues: “Before starting out, I advise to research thoroughly, understand the market and what sort of tenant you’re aiming the business at, and finally, to make sure you seek out the best advice possible.

“I strongly advise joining a trade association like the NLA before investing a substantial amount of money. With the NLA’s new Effective Letting campaign you’ve got a better chance of getting it right first time.

“If you don’t want to manage your property, there are good agents out there, but you must make sure the agent is a member of a professional body like UKALA [UK Association of Letting Agents] before taking that route. However, it’s important to fully understand your legal obligations as you will still be responsible for certain things even if you use an agent, for example: making the home fit for habitation; ensuring that there are no category one hazards which can cause injury; that gas safety appliances are properly tested and in working order; that the property’s Energy Performance Certificate is up to date before you rent.”

She concludes: “Finally and most importantly, being a successful landlord requires effective communication, which in turn can help to reduce missed payments and voids that can have severe financial implications.

“With all tenancies, it’s important to establish a good, professional relationship from the start. It is also essential that you set out fair terms in your tenancy agreement and that both landlord and tenant understand their obligations throughout the tenancy. If you get this right, then the tenancy is likely to run smoothly.”1

More information can be found at www.landlords.org.uk.

1 http://www.landlords.org.uk/news-campaigns/news/avoid-pitfalls-and-become-successful-first-time-landlord

 

Landlords not Worried about Help to Buy Scheme

Published On: November 15, 2013 at 3:47 pm

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Research from the National Landlords Association (NLA) has found that private landlords are not worried about the affect of the Government’s Help to Buy initiative on the private rental sector.

Landlords not Worried about Help to Buy Scheme

Landlords not Worried about Help to Buy Scheme

Only one in five (21%) of landlords have said that they’re concerned about the Help to Buy system causing an impact on the market, together with just 15% worried that it will cause damage to their own lettings businesses. These figures are based on research from the NLA Q3 Landlord Panel of 1,019 respondents.

The Government’s new home ownership scheme has already seen more than 2,000 offers, contributing to a reported £365m worth of mortgages. Concern has been raised over whether these statistics might affect the demand for private rented properties.

The Chief Executive Office of the NLA said that it is too early to know whether Help to Buy will have a definite impact on the need for private rentals, and the findings “seem to confirm our belief that it will only affect the margins of the private-rented sector and that it doesn’t present a major concern for landlords at large.”

The Help to Buy scheme is currently creating a discussion on whether another housing bubble will arise. Lambert insists, however, that this debate is motivated by a bigger issue: “There are simply not enough homes for people, regardless of whether they want to rent or buy.”

This indicates that the private-rented sector will still play a crucial role in meeting the demand for more housing. “It is likely that renting for longer periods will become a normal part of our housing biographies,” says Lambert. “As such, the priority for the NLA is to ensure that rented homes are both enjoyable places to live and viable places to invest.”1

1 http://www.landlords.org.uk/news-campaigns/news/help-buy-no-problem-landlords

Help to Buy Not a Problem for Landlords

Published On: November 14, 2013 at 12:07 pm

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Research from the National Landlords Association indicates that only a small number of landlords are unduly worried about the effect the Government’s Help to Buy Scheme will have on the rental sector.

The findings revealed that only 21% of landlords said they were concerned about the introduction of Help to Buy on the rental industry. Just 15% said that they were concerned about the scheme having a detrimental effect on their individual businesses.[1]

Offers

In excess of 2,000 offers have been made using this new Government scheme, assisting approximately £365m worth of mortgages.[1] However, these statistics have led to concern that demand for privately rented properties may be affected.

CEO of the National Landlords Association Richard Lambert, said it is still “too soon to predict whether Help to Buy will have any real impact on the level of demand for private rentals.” Postively, Mr Lambert feels that the Help to Buy scheme “doesn’t present a major concern for landlords at large.”[1]

Help to Buy Not a Problem for Landlords

Help to Buy Not a Problem for Landlord 

Lambert goes on: “Much of the debate around Help to Buy is currently centred on the whether the scheme will create another housing bubble. However, this conversation is itself driven by the much bigger issue at hand: the fact that there are simply not enough homes for people, regardless of whether they want to rent or buy.”[1]

With insufficient housing to meet demands, Lambert professes that “the private-rented sector will play a vital role” and suggests that “renting for longer periods will become a normal part of our housing biographics.”[1]

[1] http://www.landlords.org.uk/news-campaigns/news/help-buy-no-problem-landlords