Written By Em

Em Morley

Tenants Choose Heating or Eating

Published On: November 20, 2012 at 11:51 am

Tags: high costs in rental accommodation,private rental bills,private tenants costs

An investigation from the Pro Housing Allowance has found that some tenants in the private rented sector are having to chose between eating or heating, as they simply cannot afford both.

Tenants Choose Heating or Eating

Pro Housing’s study, entitled, Poor homes, poor health – to heat or eat? Private sector tenant choices in 2012, launches a scathing attack on landlords. The report claims that charges are too high and accommodation provided is substandard. It must be noted however, that the report is based on the responses of just 19 tenants.

Control

Chair of the Pro Housing Alliance, Dr Stephen Battersby, was concerned that the findings indicate a number of tenants on benefits are facing health risks. This, he claims, is not being helped by the Government’s welfare reforms.

Mr Battersby said that spiraling costs, “dangerous and unhealthy homes,” and “poor conditions within the sector,” are all adding up to contribute to the poor health of tenants. He continued: “This is made worse by the difficulties of finding the money to keep warm and eat; sometimes tenants cannot do both. This will lead to greater demands on the NHS, and one wonders if this is part of a policy of coercion by destitution.”[1]

Further concerns

Head of research for the report, Gill Leng said: “Talking to tenants and advice agencies up and down the country has shown just how the cuts are impacting on people who already have very little money to live on.”

She added: “It is clear that health inequalities will be further increased not reduced.”[1]

One particular adviser that was interviewed for the report suggested that tenants are reluctant to tackle their landlords over rising costs. The adviser said: “People will live in dangerous situations with their fingers crossed rather than tackle their landlord.”[1]

Pro Housing Allowance are urging ministers to look further into possible health impacts on tenants as a result of welfare reforms. They claim that savings made on their housing budgets will result in a rise in NHS charges, due to ill tenants.

[1] http://www.landlordtoday.co.uk/news_features/Tenants-on-benefits-choose-heating-or-eating-claims-report

Landlords Warned about Gas Safety

Published On: November 20, 2012 at 11:28 am

Author: Em Morley

Categories: Landlord News

Tags: gas safety,gas safety week

Thousands suffer from carbon monoxide poisoning every year, due to dangerous gas boilers, cookers, and fires. In many cases, the issues could be corrected through simple maintenance of appliances.

Frequently there are landlords who attempt to make cutbacks by not regularly having their gas appliances serviced. In an effort to promote the importance of safety in this area, GasSafe is endorsing Gas Safety Week, from 10^th-17^th September 2012.

Landlords Warned about Gas Safety

GasSafe is the authorised body that educates and approves qualified gas engineers.

A GasSafe spokesman says: “Badly fitted and poorly serviced appliances can cause gas leaks, fires, explosions as well as carbon monoxide poisoning. Using an illegal gas fitter can put lives at risk, only a GasSafe registered engineer should carry out gas work.”¹

Within the last month, three landlords have faced action for breaking gas safety regulations.

Magistrates in Sheffield heart that Waheed Ahmid and his wife Farhat Basharat rented out a house with numeral serious gas faults.

An engineer made the boiler, cooker, and gas fire in the lounge and dining room of the property inactive, as they were “immediately dangerous.”1 The house was also found to have traces of carbon monoxide fumes.

The couple were both given three-month jail terms and are suspended for 12 months. Ahmid must also complete 150 hours of community service and pay £2,500 in costs, and Basharat will serve 200 hours of community service, and pay £5,000 costs.

Another case saw landlord David MacDonald obliged to spend six months in prison, suspension for two years, 200 hours of community service, and costs of £8,211. A family had rented his flat and suffered carbon monoxide poisoning as a consequence of a faulty gas boiler that hadn’t been serviced in two years.

A Health and Safety Executive (HSE) inspector, Kevin Shorten, says: “Carbon monoxide can kill quickly without warning, and approximately 20 people die each year as a result of poisoning from gas appliances and flues that haven’t been properly installed, maintained, or that are poorly ventilated. Had a neighbour’s carbon monoxide alarm not sounded, the family could well be among that number.”1

¹http://www.accommodationforstudents.com/view_landlord_guides.asp?id=250

Basic tenant checks may not be enough

Published On: November 15, 2012 at 10:11 am

Author: Em Morley

Categories: Landlord News

Tags: rent arrears,tenant checks

Total Landlord Insurance has issued a warning that landlords need to be more thorough with their checks on clients to protect themselves against future rent arrears. The warning comes as figures released by the company show that basic referencing checks do not highlight substantial problems.

Checks

The figures released in September highlighted that 6.4% of tenants had registered one or more CCJ’s at an undisclosed property.[1] This information is disclosed in the most basic of referencing checks, where tenants are required to prove they are who they claim to be. However, a deeper reference check can often provide more discouraging results.

In the first half of 2012, the report found that 23% of self-employed tenants could not provide proof of income or tax returns.[1] It also showed that more than 50 of the applicants provided incorrect employment details.

Basic tenant checks may not be enough

Thoroughness

CEO of Total Landlords Insurance, Eddie Hooker, called on landlords and agents to carry out more comprehensive investigative checks in order to protect their investment. Hooker said that the checks would not only reveal fraudulent information but also, ‘obtain previous landlord and letting agent references where available.’[1]

He went on to suggest that landlords and agents should look at mortgage lenders as an example on how to move forwards. Hooker commented that, ‘in much the same way mortgage lenders have become more stringent with their lending to ensure borrowers are able to meet repayments, landlords should act in a similar fashion to ensure that the tenant can meet their obligations.

“High unemployment and stagnant wages are making conditions particularly tough on those having to rent, with rent in many areas at peak levels, but it makes no business sense for a landlord to rely on an income from someone who is not financially stable.[1]

No guarantees

Hooker is quick to point out that thorough checks may not alleviate all future problems. However, he believes that it should be the first barrier to rogue tenants; – ‘There is no guarantee that thoroughly screening a potential tenant will avoid taking on a future problem, but it should be the starting point for all landlords.’[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Basic-referencing-checks-may-not-be-enough-warning

What do squatting laws mean for landlords?

Published On: November 15, 2012 at 9:14 am

Author: Em Morley

Categories: Property News

Tags: residential property,squatting criminal offence

The introduction of recent legislation that makes it a criminal offence for squatters to stay within residential buildings in England and Wales has sparked much debate. Supporters have called for the legislation to be made applicable to include commercial properties. Opponents on the other hand have argued that there is simply no need for the change in law.

Opening sentence

By sentencing the first illegal squatter for finding refuge in a unit owned by a housing association, there were indications given on how courts may punish this crime in future cases. However, opponents argue that there are still a number of definitions within the legislation that could be misconstrued. Much then, could depend on how the police tackle individual cases.

Historical problems

The Criminal Law Act and Protection from Eviction Act of 1977 inadvertently worked against landlords finding trespassers on their property. As a result of the legislations, it was made an offence to use or threaten violent action against anyone preventing entrance to property or land. This led to a common outcome being a costly, time-consuming civil battle to remove squatters from properties.

What do squatting laws mean for landlords?

Some squatters argued that they were committing a criminal offence, particularly for squatting within empty properties. Despite squatters being entitled to some rights, these were complicated and often invalid if their actions affected the rights of a tenant or occupier.

It is hoped that the new legislation will provide more protection and less grey areas for landlords. In particular, there is more help for residential landlords that may let properties that are empty for long periods of time. This could be where properties are awaiting re-let or are up for sale.

New Legislation

This year, the Legal Aid, Sentencing and Punishment of Offenders Act 2012, section 144 outlined new provisions to combat squatting. Under the act, it is now an offence to enter a residential building if the intruder knows they are trespassing. The new law gives police power to arrest and remove intruders, if it can be proven that they intend to live within the property.

Definitions

Despite the will of certain landlords, the law could lose a degree of effectiveness due to the very definition of a squatter. A squatter does not refer to tenants that are in rent arrears, nor those who have stayed within a property following the conclusion of a contract. This comes as a blow to landlords hoping to utilize the new bill to evict troublesome tenants.

More problems that the police may have include differentiating between a squatter and someone who has stayed beyond their agreement. This in turn makes it extremely problematic for police forces to remove individuals from a property.

A successful future?

The first arrest and subsequent jail sentence handed out a squatter in London accounted to 12 weeks, giving a positive outlook for landlords. However, the seemingly straightforward case still gave causes for caution.

After being arrested for another offence, only then did the police officers realize that the individual was squatting. This added further weight to the theory that squatters are becoming better at exploiting loopholes within legislation. Claims of fraudulent lettings to squatting in adjoining units are just a few of the excuses that officers have been confronted by. As a result, it is difficult for police at the scene to make a correct judgment call.

The initial sentencing under the bill has given optimism that courts in England and Wales won’t be afraid to flex their muscles in terms when handing out charges. However, it remains to be seen whether the holes in section 144 will be picked apart to damage its overall success rate.

Homeowners in Wealth Divide

Published On: November 13, 2012 at 11:32 am

Author: Em Morley

Categories: Property News

Tags: homeowners,negative equity,wealth divide

Homeowners in Wealth Divide

When and where you bought your first house can have an impact on how wealthy you are now, reveals figures from the Council of Mortgage Lenders.

For those who purchased a house at the market’s peak in 2007 are now the most likely to be in negative equity. One in four who bought a house for the first time in this period now owe more than their property is worth.

This number is not level around the UK. Those with mortgages in the South East are less likely to be in negative equity, while those in Northern Ireland have been hit the hardest by the recession.

Just 5% of people who bought a house since 2005 in the South East are in negative equity, whereas in Northern Ireland the figure is much higher at 35%. Across the country, about 10% of people who have bought a home after 2005, and around 20% of those who purchased their first house in this time are in negative equity.

Generally, the amount of people in negative equity is dropping. Since quarter 1 (Q1) of 2011, the number of homeowners in negative equity has decreased by about 13%. It is believed that 719,000 households are in some kind of negative equity.

Negative equity is a substantial issue in the housing sector, although it is declining. It is also less of a problem now than it was in the recession of the 90s. In that time, interest rates were high and many could not keep up their repayments and were not able to sell because of negative equity.

Protecting Properties This Winter

Published On: November 12, 2012 at 5:18 pm

Author: Em Morley

Categories: Property News

Tags: protecting property in winter

With the winter months fast approaching, the National Landlords Association (NLA) has offered helpful advice for landlords to ensure that their properties are sufficiently protected during this period.

Problems

Unsurprisingly, adverse weather can lead to serious problems to a property. Vast numbers of rental properties are damaged each year do to inclement conditions, costing thousands of pounds to repair and leaving tenants without a home.

Research from the NLA shows that freezing-related claims accounted for 35% of total claims on their insurance during the last year, despite these occurrences only happening during winter periods.[1] Freezing-related claims are features such as water escaping through burst or cracked pipes.

Suitable Policy

Taking this into account, the NLA is urging landlords to check that they have a suitable insurance policy. In addition, they are requesting that landlords inform tenants on ways to prevent weather damage.

Chairman of the NLA David Salusbury said: “Last winter was relatively mild compared to previous years so it’s important that landlords and their tenants aren’t complacent and take action to mitigate any risk of damage to the property.”[1]

Protecting Properties This Winter

Salusbury also warns: “Most normal home insurance policies do not provide cover in the event of damage in all circumstances.” As a result, he maintains: “Having the correct residential property insurance is vital.”[1]

Guidelines

The NLA believes that by following a few simple guidelines, tenants can greatly reduce risk of damage or hardship during winter. The NLA says that tenants should:

Make sure that all pipes are sufficiently insulated.
Ensure that all overflow pipes are not blocked and are connected properly.
Inform tenants to leave their heating on a low setting during any winter void periods.
Ensure that the tenant has an emergency contact number.

Communication

NLA Property Insurance’s Broking Manager Steve Barnes, believes that landlords should “start to dialogue with tenants,” if they think “they may be away for extended periods during the winter months.” He also thinks that landlords should ask tenants to “leave the heating on a low temperature,” or even contribute towards the heating bill, Barnes feels that this “could be far more beneficial in the long-term.”[1]

Barnes also said: “Landlords should make sure their tenants are aware of how to correctly set thermostats, switch off utility supplies and know what to do in the event of an emergency. If away or uncontactable over the winter period, landlords should also provide appropriate contacts for any repair work.”[1]

[1] http://www.landlords.org.uk/news-campaigns/news/protect-your-properties-winter