Written By Em

Em

Em Morley

Best bill-splitting tips for students, provided by Glide

Published On: October 15, 2019 at 9:34 am

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Categories: Tenant News

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Landlords, consider welcoming students into your properties with these handy tips for splitting bills.

It can be difficult adjusting to student life, with so many responsibilities thrown at you for the first time. Reaching out to your student tenants and building a good relationship with them will not only make for an easier year ahead but may also lead to securing tenants for the next few years as well.

Bill-splitting service provider Glide has shared its expertise on the best way to go about fairly paying household bills:

Utilise apps

Services such as Monzo and Uber offer bill-splitting functionalities. This means that everything from morning taxis to lectures to late-night McDonald’s can be split between multiple users at the touch of a button.

Compromise

Splitting costs down the middle may be a simple way of doing things, but somewhere down the line, someone is going to feel that this is an unfair system. Glide points out that, for example, if you have specific dietary requirements then you wouldn’t want to be contributing to a weekly shop when you may be unable to eat a substantial amount of it.

However, items such as toilet roll and certain condiments for the kitchen could be shared (at the very least, to save on space!). Consider agreeing on this from the offset, to make it easier in the coming months.

Take the stress out of monthly bills

Glide believes that a bill-splitting service, such as its own, can take the headache out of utilities management, ensuring that each housemate is sent a monthly bill directly.

Make the most of discounts

 Although not a tip for bill-splitting, tips for saving money are always appreciated! Some examples provided by Glide include:

  • Split the cost of a tastecard to use when going out to restaurants for group meals
  • An NUS Extra card can also save you money at all sorts of places across the UK and online

Urban green spaces increase house prices in England and Wales

Published On: October 15, 2019 at 8:10 am

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Categories: Property News

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Urban green spaces have increased nearby house prices by an average of £2,500, according to the latest report from the Office for National Statistics (ONS).

Public green spaces have apparently boosted the prices of detached houses the most. Such properties attract a 1.9% premium if they are within 100 metres of a public green space, according to the report.

ONS looked at the details of over one million property sales in England and Wales between 2009 and 2016 from Zoopla to collect this data. It then created an analysis using Ordnance Survey’s Open Greenspace data, which has been gathered using maps and aerial imagery.

It takes into account:

  • Public parks or gardens
  • Play spaces
  • Playing fields
  • Sports facilities
  • Golf courses
  • Allotments or community growing spaces
  • Religious grounds and cemeteries

However, it doesn’t include:

  • Woodlands
  • Heaths
  • Any other open spaces that might be used for recreation

David Westgate, Group Chief Executive at Andrews Property Group, has commented: “For urban properties close to open spaces, the grass really is greener when it comes to house prices.

“There is without doubt a correlation between property prices and a well-maintained green space.

“It may not quite have the impact on prices that proximity to a tube station has, but being close to an open space does push up values, all the more so if a property overlooks them.

“Add a café and a meeting place and the premium families place on the green space becomes even greater. 

“While people in detached houses may have less practical need of a green space than those in flats, proximity to one adds to the cachet of their home and boosts its price accordingly. 

“It goes without saying that where most nearby properties have been converted into flats that lack gardens, the local park becomes even more important, and that too can drive up prices.

“Town planners 120 years ago got it right and the creation of open green spaces continues to have huge appeal for local people and exert a material influence on values.”

Government eviction reforms “risk increasing delays”, warns Osbornes Law

Published On: October 14, 2019 at 9:36 am

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Categories: Law News

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Government plans to change the law on tenant evictions may not improve tenants’ security, warns London law firm Osbornes Law.

The firm believes that such changes could risk being unworkable in practice. This is in response to a Ministry of Housing, Communities and Local Government (MHCLG) consultation, A New Deal for Renting.

Osbornes Law warns that an increase in factual disputes about the reasons for evictions will strain a court system that is already struggling to cope.

The MHCLG proposes to abolish assured shorthold tenancies so that landlords cannot use Section 21 of the Housing Act 1988 to evict tenants at the end of the fixed-term tenancy without providing a reason or avenue to challenge.

Instead, Section 8 will be used more frequently, being issued to a tenant for either breaching the terms of their tenancy agreement for other reasons, such as the landlord wanting access to the property to sell up or for personal use. The MHCLG also promises faster redress through the courts.

Shilpa Mathuradas, head of property litigation at Osbornes Law, points out that, despite publicity about rogue landlords seeking to evict tenants for no good reason, they represent a tiny minority of property owners.

Research conducted by the Residential Landlord Association (RLA) found that 84% of landlords who had used the Section 21 process did so because of tenant arrears, and 56% because of the damage to property and antisocial behaviour.

She says: “If the process is to be abolished, then landlords need to be assured that a workable system is available to ensure that where landlords rightfully seek possession this is obtained quickly and efficiently without significant cost to landlords, who are often in a position where rent is not being paid where there are ongoing court proceedings.

“If a landlord is rightfully claiming possession based on rent arrears or any other fault of the tenant, this is not going to stop because the Section 21 process is abolished. Landlords will simply pursue the tenants through the more expensive and lengthier Section 8 process. This will not create stability and security for the tenant.”

Her colleague, Alex McMahon, an associate solicitor in the property litigation team, adds that more factual disputes, and the need for courts to resolve them, will be unavoidable as a result of the reforms: “Tenants must be allowed to defend allegations of fault, and to bring a counterclaim if appropriate.

“Judicial scrutiny is the safeguard for both sides, and unsuccessful parties to disputes can expect cost orders to be made against them.

“In my view, the problem with delay is not found in the legal framework but in the overburdened legal infrastructure that applies it. Our courts are now so significantly clogged up with disputes that claims can take many months before they are listed for a first hearing.”

Generation Rent gains public support for tenants forced to move by Section 21

Published On: October 14, 2019 at 8:51 am

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Categories: Law News

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Tenants should get financial support if they have to move out after a landlord decides to sell their home or move back in themselves, according to a poll commissioned by Generation Rent.

The poll was called for due to the following issues with the private rental sector (PRS) and Section 21 notices:

  • 146,000 households have been asked by landlords to leave their homes in the past three years (English Housing Survey).
  • With moving home typically costing £1400, no fault evictions cost private renters around £70m a year .

Conducted by Survation, the poll asked over 2,000 people about their experiences moving. The results show:

  • 58% support relocation payments made to tenants who are forced to move. This rose to 71% amongst private renters.
  • 52% of private renters took more than four days to pack, move and clean at the end of a tenancy. This is equivalent to £229.88 in lost working hours if working four 7-hour days at minimum wage.
  • 40% of private renters paid rent on more than one property at once when moving homes. 40% of these renters also paid rent on two properties for more than two weeks.
  • 41% of private renters took longer than three weeks to find and secure a new home.
  • Homeowners spend more time moving, with 30% taking over a week. It takes them two months on average to find a new home. However, it’s worth noting that only private renters face being forced to move through no fault of their own.

The Ministry of Housing, Communities and Local Government (MHCLG) is currently consulting on its decision to end Section 21 notices, following a campaign by the End Unfair Evictions coalition. 

The coalition is also calling on Government to introduce relocation payments to support tenants who are forced to move in these circumstances. This would cover the cost of a deposit (five weeks’ rent), upfront costs of moving, and a period of paying rent on two properties due to overlapping tenancies.

Over 36,000 people have so far signed the coalition’s open letter to Boris Johnson and Housing Secretary Robert Jenrick, which demands better protections for tenants.

Generation Rent estimates the typical costs of moving home in the private rental sector to be £1402.27, comprising:

  • Two weeks’ rent on a second property at £311.54 (median 2-bed in England) 
  • Five weeks’ rent upfront as a deposit at £778.85 
  • Carpet cleaning at £48 (for 1 single and 1 double bedroom) 
  • Van hire at £34 (one day hire via EasyVan) 
  • Cost of time at £229.88 (28 hours at minimum wage) 

Generation Rent has also highlighted that a relocation payment would reduce the financial hardship that tenants face and encourage landlords to consider alternative arrangements.

It would also discourage landlords from abusing new “no-fault” grounds to evict tenants. This requirement to pay relocation costs already exists for landlords who want to evict tenants to redevelop properties. 

Caitlin Wilkinson, Policy & Public Affairs Manager at Generation Rent comments: “Unwanted moves are expensive and stressful for renters, who can currently be evicted with just two months’ notice for no reason at all. Landlords who want to sell or move back in should consider alternatives that allow their tenants to stay put, like selling to another landlord. 

“Tenants who are still forced to move on no-fault grounds deserve support. Relocation payments would help cover the upfront costs of moving house, such as deposits, the time it takes to move house that tenants don’t get back, and a period of paying rent on two properties at once. 

“Tenants should not have to bear the costs of their landlords’ personal decisions and the wider public agrees.”

Residential Market Survey predicts rent increases over next five years

Published On: October 11, 2019 at 9:09 am

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The latest report from the Royal Institution for Chartered Surveyors (RICS) indicates that tenants face an acceleration in rent increases over the next five years. This is thought to be a result of the demand for private rented housing outstripping supply.

This is according to new figures published in the September 2019: UK Residential Market Survey.

The report states that the latest results for the lettings market indicate:

  • Demand from prospective tenants will rise firmly for the eighth month in a row.
  • Landlord instructions remain in decline
  • With demand still outstripping supply, rent expectations remain positive for the next three months
  • Rental growth of approximately 2% has been predicted over the coming twelve months
  • Rental growth is expected to average around 3% per annum through to 2024

David Smith, Policy Director for the Residential Landlords Association, has responded: “Today’s figures demonstrate what we have long predicted, namely that because of recent tax hikes on the sector and threats to remove Section 21 repossessions without putting proper alternatives into place, landlords are not investing in new homes to rent, leading to demand outstripping supply. This only serves to hurt tenants as they face less choice and higher rents.

“Given how clear the evidence is the Government urgently needs to change course, and end those tax measures which are choking off investment in new homes to rent.”

The latest edition of The DPS Rent Index shows that average monthly rents in the UK have increased by 0.91% between July and September, which supports this prediction from the RICS.

The RICS’ September 2019: UK Residential Market Survey can be viewed here: www.rics.org/globalassets/rics-website/media/knowledge/research/market-surveys/uk-residential-market-survey-september-2019-rics.pdf

UK rents rise but fail to keep pace with inflation between July and September

Published On: October 11, 2019 at 8:24 am

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Average UK rents rose between July and September but failed to keep pace with inflation, according to new data from The Deposit Protection Service (DPS).

The latest edition of The DPS Rent Index has now been released, showing average monthly rents in the UK have increased by £7 (0.91%) to £778. It claims that this is less than half the rise in inflation (1.90%) during the period.

The report also shows:

  • Terraced and semi-detached properties in Q3 2019 experienced above-inflation (over 4%) average rent rises when compared with Q3 2018.
  • Rent increased for flats and detached properties were below inflation (1.36% and 0.80% respectively) during the same 12 months.
  • Yorkshire and The Humber saw the largest increase of £19 (3.60%) to £552 since the previous quarter.
  • The East Midlands and West Midlands experienced the only falls in England during Q3 2019. Average rents were down £13 (-2.17%) to £578 and £1 (-0.19%) to £620 respectively.
  • The North East was the cheapest place in the UK to rent (£526) during Q3 2019 with a modest £3 (0.65%) increase during the period.
  • London remains the most expensive rental region in the UK, with the largest year-on-year growth of £43 (3.34%) and an average rent of £1,333.
  • Scotland and Wales are the only regions to experience year-on-year as well as quarter-on-quarter rent decreased. Scotland’s rents fell by £6 (-1.02%) to £619 and Wales’ fell by £8 (-1.43%) to £578.
  • On average, people in the UK spend 32% of their wages on rent.

Matt Trevett, Managing Director of The DPS, said: “Two consecutive quarterly increases have seen rents reach the highest value since the Rent Index launched in 2017 following a period of decline during 2018.

“However, average rents in the third quarter of 2019 did not keep up with inflation, as they did in Q2 2019. This suggests rental values in the UK are regulating themselves against inflation.”

Region Average rent in Q3 2019Change since Q2 2019% change since Q2 2019
London£1,333£141.03%
South East£880£20.23%
South West£743£121.58%
East£820£121.53%
East Midlands£578-£13-2.17%
West Midlands£620-£1-0.19%
Yorkshire£552£193.60%
North West£596£10.18%
North East£526£30.65%
Scotland£619-£6-1.02%
Wales£578-£8-1.43%
N.Ireland £533£112.18%
UK £778£70.91%