Written By Em

Em Morley

LHA Cuts make Letting Unaffordable for Landlords

Published On: April 21, 2012 at 9:11 am

Over half of landlords can no longer afford to rent to housing benefit tenants, due to cuts to the allowance, revealed a survey by the National Landlords Association (NLA).

LHA Cuts make Letting Unaffordable for Landlords

53% of landlords think that the Local Housing Allowance (LHA) reductions have made it too expensive to let to those on the benefit.

Almost half of respondents (46.9%) believe that tenants under the age of 35 will suffer the most from the changes, and around 69% of landlords claimed that they cannot see themselves renting to LHA tenants in 2015.

The cuts to the LHA has resulted in the maximum rent benefit payments reduced to the 30^th percentile of local average market rents, previously it was the 50^th percentile.

The age of tenants on benefits qualifying for more than a single bedroom in shared housing has also increased from 25 to 35. This will drive many more into shared homes.

Chairman of the NLA, David Salusbury, says: “It’s concerning that so many landlords appear to be planning to withdraw from the LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate.

“In view of the pressures on housing, the private rented sector will inevitably play an increasingly important role in providing housing to LHA tenants, particularly those aged under 35 who aren’t able to access other housing.

“It is vital that local authorities work with landlords to provide the support services needed to help this demographic, as many are forced to move into shared accommodation.”¹

¹http://www.landlords.org.uk/news-campaigns/news/benefit-cuts-making-letting-unaffordable-landlords

More housing options needed for over 55s

Published On: April 19, 2012 at 4:17 pm

Author: Em Morley

Categories: Property News

Tags: property options over 55's

A recent report from Shelter concerning the shortage of properties available for older people in the U.K has provoked a demanding response from the ARLA.

Concern

Shelter’s report is entitled, ‘A better fit: creating housing choice for an ageing population.’ Its content has led ARLA member Peter Girling to call for the Government to act.

Girling believes that more private rented accommodation should be made readily available for the older members of the population. He said that the ARLA, “share Shelter’s concerns about the acute shortage of appropriate housing to meet the needs of older people in the U.K.’[1]

He goes on to comment that, ‘housing for older people in the U.K is simply not being planned,’ and describes this as a, ‘travesty,’ that will lead to, ‘long-term social problems and government-induced crisis.’[1]

More housing options needed for over 55’s

A need to rise

Girling suggests that by the year 2030, a third of people in the U.K will be over the age of 55. Worryingly, if trends continue and if Girling is correct, housing to accommodate this group will need to rise by 70%,[1]

Currently, there is limited mid-range housing or bungalows available to privately rent. In addition, there is said to be an acute shortage of housing for people with mobility issues.

More incentives

With many people living alone in large properties, Gilding says that they are unlikely to willingly downsize and therefore sought-after family properties are being mis-used. He says that offering more incentives could be the answer to solve some of the problem.

Gilding says that the ARLA, ‘have seen inquiries for our retirement rental properties rise by 13%.’ He goes on to state that the ARLA have, ‘a range of different options available, enabling people to choose whether they want to rent on lifetime tenancies, assured shorthold tenancies or buy their property.’

Shelter’s full report can be found here http://england.shelter.org.uk/__data/assets/pdf_file/0005/427730/Policy_report_A_better_fit.pdf

[1] http://old.lettingagenttoday.co.uk/news_features/More-housing-needed-for-over-55s

Consequential Improvements Coming

Published On: April 12, 2012 at 2:20 pm

Author: Em Morley

Categories: Landlord News

Tags: Consequential Improvements,energy-efficient measures,reducing emissions

New Government plans could see landlords having to take on a number of energy-efficient measures when seemingly tackling one problem.

Consequential Improvements

The Government is proposing to extend needs for consequential improvements under chapter 4 of the consultation on Building Regulations. ‘Consequential Improvements’ is the requirement for further energy efficiency measures to be carried out in a property where other work is already going on.

The consultation states that, ‘The reason for proposing these changes now is to recognise the urgency of reducing emissions from the existing building stock, and, in a time of rising energy prices, to make homes and non-domestic buildings easier and cheaper to heat. It would also take advantage of a new market mechanism which has the potential to remove some of the existing barriers to action – the Green Deal.’[1]

In addition, the consultation says that the objective of the proposals is to, ‘use the opportunity ‘ to maximize the energy efficiency of the property while other procedures are being carried out.

For example, a landlord wanting to replace a broken or faulty boiler in their property could also be forced to improve their glazing and extensions. This is all due to the, ‘consequential improvements,’ scheme outlined by the Government.

Consequential Improvements coming

Another example of work bound under the proposed guidelines would involve landlords wishing to add an extension or conversion to their property possibly having to double glaze existing windows.

Regulations

Every consequential improvement will have to adhere to Building Regulation standards. It is still unclear whether emergency replacement of features such as boilers will lead to consequential works having to be done at the same time or at a later date.

It is the intention of the Government to phase in the ‘consequential improvements’ regulation in April 2014, although the consultation closed in March this year and the results are as yet still unknown.[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Boiler-needs-emergency-replacement-Landlords-may-be-forced-to-do-other-work-as-well

A Brief Overview of the Tenant Deposit Scheme

Published On: April 11, 2012 at 2:19 pm

Author: Em Morley

Categories: Landlord News

Tags: tenant deposit scheme

Just one in five letting agents and not one landlord thinks that tenancy deposit schemes are intended in their favour.

Most believe that the schemes are designed in favour of tenants, however, less than half of tenants were even aware that the schemes exist, or whether their deposits had been safeguarded.

A Brief Overview of the Tenant Deposit Scheme

The new figures are the result of a survey by Imfuna, of landlords, letting agents, and tenants.

A shocking 0% of landlords claimed that the deposit schemes are designed in their favour, and 35% said that neither they nor their tenant benefit from the protection schemes.¹

The views of letting agents reflects this, with just 20% stating that the schemes favoured landlords, and 52% believing that they are favouring tenants. An additional 22% think that the schemes do not benefit anyone involved.1

The research has been conducted in conjunction with new additions to the Localism Act that came into force on 6^th April. The new rules dictate that all landlords will face large fines, up to three times the deposit, if their tenant’s deposit is not protected properly within 30 days, and the prescribed information is not provided.

Jax Kneppers, creator of Imfuna, says: “The survey presents a picture of landlord disenchantment with the deposit schemes.

“The fact that not a single landlord surveyed felt they were designed in their favour, shows that there is still some work to be done by all parties in order to democratise the inventory process and ensure that everyone involved feels they are supported in equal measure.”1

Awareness of the schemes is extremely high amongst landlords, with 99% knowing about the service. Letting agents are also knowledgeable, with 88% aware. Tenants, however, do not know of the schemes, with just 43% knowing about them before their tenancy started.1

This was reflected in almost half of tenants surveyed, 49%, stating that their deposits were not placed in a scheme.1

Only 37% of landlords also believe that the deposit schemes do not effectively minimise conflict, compared to 78% of tenants.1

Kneppers found that the schemes do not seem to be successfully resolving problems, with just 19% of landlords and 36% of letting agents thinking that the services reduce the time taken over disputes.1

Almost half of letting agents, 48%, and 30% of landlords claimed to have settled a dispute privately.1

The research surveyed 1,000 tenants, 100 landlords who own over 20 properties, and 50 letting agents during February.1

¹http://old.lettingagenttoday.co.uk/news_features/Most-tenants-havent-heard-of-deposit-schemes

Tenancy Deposit Protection Changes

Published On: April 5, 2012 at 9:09 am

Author: Em Morley

Categories: Landlord News

Tags: Tenancy deposit protection

Landlords and letting agents are reminded to protect a tenant’s deposit in a Government-approved scheme, following changes to the Localism Act that came into force on 6^th April.

Tenancy Deposit Protection Changes

Landlords are now given 30 days to put the deposit into a scheme after it is received from a tenant. This is an increase from the previous 14 days. These changes concern England and Wales.

Landlord must also provide the Prescribed Information and Deposit Protection Certificate to their tenant, as evidence of protection. This should also be given within the 30-day timeframe.

The alterations have been made to avoid a legal loophole that allowed landlords to successfully appeal against penalties for not protecting a deposit.

If a landlord does not protect their tenant’s deposit, then they could face court and a fine of between one and three times the cost of the deposit. They will also be unable to apply for a possession order with a section 21 notice, until the case is resolved.

Chairman of the National Landlords Association (NLA), David Salusbury, says: “These changes are helpful to landlords who now have extra time to ensure any deposit their take is property protected.

“But they must make sure they do so within the 30 day time limit, as changes to the law now make penalties strictly enforceable.”¹

Eddie Hooker, Chief Executive of deposit protection scheme mydeposits, comments: “It is vitally important that landlords, letting agents and tenants are aware of tenancy deposit protection and these changes in the legislation.

“With my deposits, landlords can legally protect a tenant’s deposit and keep it in their own account.

“It also gives the tenant peace of mind that their deposit money is protected with a Government-approved scheme.”1

¹http://www.landlords.org.uk/news-campaigns/news/tenancy-deposit-protection-changes-landlords

Collating inventories in a professional manner

Published On: March 28, 2012 at 4:46 pm

Author: Em Morley

Categories: Landlord News

Tags: collating inventories

Landlords are being warned to act professionally when collating evidence in order to replace inventories at the conclusion of tenancy agreements.

Research from the Association of Independent Inventory Clerks (AIIC) suggests that a number of landlords are only using photographs as evidence in inventory cases. This is leaving them open to often costly disputes over these issues.

Collating inventories in a professional manner

Unhelpful

In cases where substantial damage has been caused, for example carpet burns or stains, then photographic evidence will adequately suffice. However, for smaller damages, photographic evidence alone needs to be backed up by written inventory.

The AIIC say that all inventory reports should contain a thorough description of the condition of all contents within a property. Locations of any damage should also be thoroughly noted. Photo’s supporting the claims of any inventory report should be of high quality, with no colour distortion or blurriness.

Chair of the AIIC Pat Barber, says the law favours the tenant in deposit disputes. Barber said that, ‘The law clearly states that the deposit remains the tenant’s money and that they are entitled to get it back at the end of their stay, provided they have met the terms of the tenancy agreement, so the onus lied with the agent or landlord to provide proof.’[1]

In other useful advice, the AIIC said that the use of photographs should be for additional evidence in inventory cases. They recommend that before and after photographs are used. These photographs should be dated and include a clear description of what they are showing.

[1] http://webcache.googleusercontent.com/search?q=cache:cGXa9-4Nt0YJ:www.justlandlords.co.uk/news/Property-Landlords-Warned-Over-Using-Photos-for-Inventories-1180.html+&cd=1&hl=en&ct=clnk&gl=uk