Written By Em

Em

Em Morley

Landlords stronger together: National Residential Landlords Association to form

Published On: August 30, 2019 at 8:20 am

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Categories: Landlord News

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We are excited to hear that the Residential Landlords Association (RLA) will be uniting with the National Landlords Association (NLA).

They plan on coming together to deliver a stronger voice for the private rental sector (PRS).

The National Landlords Association (NLA) and the Residential Landlords Association (RLA) will unite to form the National Residential Landlords Association (NRLA) with a membership of more than 80,000 landlords making it by far the largest organisation in the sector. Its members will own and manage half a million properties, which makes up about 10% of the private rented sector.

The merger has been endorsed by both boards and will be put to a vote of their respective members in September.  The new organisation is planned to launch officially on 1st January 2020.

The two Chairs, Alan Ward (RLA) and Adrian Jeakings (NLA), have said in a joint statement: “After more than 20 years of friendly competition the time is right to create a single organisation to represent and campaign for landlords.

“With so much of our work done in parallel there are major benefits to be gained for our landlord members.

“We will be stronger together when presenting a unified voice to government both nationally and locally about the importance of supporting the majority of landlords who do a good job providing the homes to rent the country needs.”

With such a merger, we at Landlord News hope to find that, more than ever, the members of this industry have our voices heard by those in power across the UK. By working together, we stand a better chance at overcoming the housing crisis and making the improvements needed for landlords to invest in the PRS and provide tenants with the safe homes they need.

This proposal will be put to members of both associations on 17th September. If successful, the NRLA will launch in the new year, serving landlords in England and Wales.

More information on how to vote can be found here.

Call to help ‘Generation Stuck’ get moving on the property ladder

Published On: August 29, 2019 at 9:15 am

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Categories: Law News

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New research has found that over four in ten over-65s (44%) believe that the Government should be doing more to encourage older people (‘Generation Stuck’) to downsize. 

This is equal to almost 5.3 million people, according to McCarthy & Stone, who carried out the research in conjunction with YouGov.

The UK developer and manager of retirement communities believes that it would help address the housing crisis, where a sluggish secondary market and the costs associated with moving are making it difficult for ‘Generation Stuck’ to move. 

If the Government were to help older people to move, this could free up housing for younger generations, it points out.

McCarthy & Stone’s research also found that of those who believe the Government should be doing more, a Stamp Duty exemption to help older people downsize was the most popular solution. 61% of those aged over 65 in this group agreed with this (over 3.2 million people).

59% think that the Government should encourage the development of more specialist retirement housing, while 52% would like them to encourage the development of more bungalows.

Table 1: Of those who believe the Government should be doing more, this is what they would like to see

 PercentEqual to
A stamp duty exemption to help older people downsize61%3.2m
Encourage the development of more retirement housing to downsize to59%3.1m
Encourage the development of more bungalows52%2.7m
A stamp duty exemption for moving into a purpose-built retirement property40%2.1m
Provide more information and help on housing options in later life36%1.9m
None of the above2%105,500

Source: McCarthy & Stone/ YouGov survey 2019

McCarthy & Stone highlights that the cost of stamp duty for a £300,000 property for someone who is not a first-time buyer and doesn’t own any other property is £5,000. As the tax is also paid by other purchasers in the chain, it also restricts the wider market.

Almost one in five of all over-65s involved with the research say that a Stamp Duty exemption for older people downsizing would make them more likely to move. This is equal to almost 2.2 million people. Such an incentive could have a significant impact on helping the current situation in the housing market.

John Tonkiss, Chief Executive of McCarthy & Stone, commented: “This research shows overwhelming support among older people for reforming Stamp Duty to encourage downsizing.

“This would help Generation Stuck – those over-65s who want to downsize but can’t – and also release millions of homes suitable for young people and families. Plus it would provide a net benefit to the Treasury’s coffers from the increased numbers of housing transactions created.”

McCarthy & Stone is calling on the Government to introduce a Help to Move package, which includes a Stamp Duty exemption for older people looking to downsize.

This would not only allow over-65s to live in comfortable, safe accommodation more suited to their needs in later life but also to free up existing housing stock that can be used by first-time buyers and young families. The initial loss in tax income would be offset by additional Stamp Duty payments fromthe new chains created.

Welsh tenant fees ban comes into force this weekend

Published On: August 29, 2019 at 8:47 am

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Categories: Tenant Fees Ban

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This Sunday (1st September 2019), the Welsh private rental sector (PRS) will see changes, as its tenant fees ban becomes law.

This means that landlords and letting agents across Wales will no longer be able to charge tenants fees to set up, renew or continue a tenancy. This will apply to standard occupation contracts.

The Welsh tenant fees ban will prevent landlords and letting agents from charging letting fees and a number of other upfront fees payable by tenants to rent a property in Wales. This includes:

  • Accompanied viewings
  • Inventory charges
  • Signing contracts
  • Tenancy renewals

Landlords and letting agents will still be allowed to require permitted payments for:

  • rent
  • security deposits 
  • holding deposits
  • default payments (due to breaches of a contract)
  • payments in respective of council tax, utilities, a television licence, or communication services

Under the new law, holding deposits will be also restricted to one week’s rent.

It will be known as the Renting Homes (Fees Etc.) (Wales) Act 2019. The new legislation introduces a fixed penalty notice of up to £1,000 for anyone charging banned payments. 

An estimated £200 could be saved per tenancy, according to the Welsh government.

The Tenant Fees Act in England came into force on 1st June 2019, bringing in similar changes. However, the main difference is that England now has a security deposit cap of five weeks’ rent, whereas there will be no cap on this for Wales.

Welsh government guidance states: “Although average security deposits tend to be around the equivalent of one month to six weeks rent, there may be circumstances which mean that you may wish to take a slightly higher amount of deposit, for example, should a tenant have pets, which may provide you with peace of mind should damages occur due to those pets. It is permissible to ask for a higher amount of deposit in these circumstances.”

*Update*

David Cox, Chief Executive of ARLA Propertymark, has commented: “The Welsh Tenant Fees ban comes into force on Sunday, and agents should already have implemented the necessary changes within their business in order to be compliant with the law.

“Although the ban has been front of mind for a while, it’s important agents stay up to date with other laws and local licences. A breach of the ban can result in a fine, and license revocation by Rent Smart Wales; so, it’s vital agents get this right.”

Liverpool landlords obtain the best short let yields at close to 30%

Published On: August 28, 2019 at 9:46 am

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Short term let properties in Liverpool and Manchester are achieving the best yields in the North West of England, according to new research by short term letting agency Portico Host.

Landlords with short-term lets in Fairfield, Liverpool can expect to achieve a rental yield of 27.2%. In comparison, long-term let landlords in the same area are achieving a yield of 13.6%.

Portico Host says that the short let yield is based on an occupancy rate of 50% of the year, which is typical for these types of properties due to seasonal demand.

Of the ten best performing locations for short term let yields, the top eight are in Liverpool postcodes (L6, L4 and L7). In Manchester, the highest short let yields can be found in Hulme (M15) at 15.1%.

Table: Best performing locations for short term let yields in Liverpool and Manchester

AreaShort-let Yield (%)Short-let Gross IncomeRental Yield (%)Rental Gross IncomeAvg. House Price Postcode
Fairfield, Liverpool27.2%£32,88313.6%£16,716£126,779L6
Walton, Liverpool25.5%£18,4937.9%£5,700£72,317L4
Kensington, Liverpool24.2%£27,4059.8%£12,260£119,150L7
Kirkdale, Liverpool23.9%£15,9308.5%£5,786£73,564L4
Anfield, Liverpool22.7%£23,7669.6%£10,457£102,772L6, L4
Toxteth, Liverpool20.9%£13,7799.0%£5,775£74,250L8
Orrell Park, Liverpool17.5%£13,7797.5%£6,360£91,500L9
Vauxhall, Liverpool15.5%£20,8856.8%£ 20,885£ 139,061L2, L3, L5
Hulme, Manchester15.1%£20,1586.9%£9,080£133,333M15, M16
Levenshulme, Manchester13.6%£19,3856.2%£8,700£140,000M19

Rachel Dickman, Regional Manager, Portico Host, said: “It isn’t surprising to find that the properties that are achieving the greatest returns are those that are situated in areas surrounding Liverpool and Manchester city centres. These places typically have excellent transport links, proximity to popular tourist attractions, employment hubs, and good restaurants and cafes.

“Liverpool is becoming increasingly popular on the tourist trail, with 1.34 million people visiting the city in 2018, including business travellers, students and young professionals.

“It’s also continuing to host and attract major sporting events, such as the Netball World Cup 2019 which recently took place in the M&S Bank Arena. These factors are resulting in a growing number of people wanting to stay in short-let properties in Liverpool, and the increased demand for this type of accommodation is underpinning the rents that can be achieved.”

Universal Credit still forcing tenants into rent arrears, RLA research shows

Published On: August 28, 2019 at 9:13 am

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Categories: Tenant News

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Universal Credit is causing tenants to fall behind with their rent, according to new research for the Residential Landlords Association (RLA).

The report shows that 54% of private landlords involved with the research who have let to tenants on Universal Credit in the past 12 months have seen them fall into arrears. Of this number, 82% said that the arrears only began after a new claim for Universal Credit or after a tenant had been moved over to the new system from housing benefit. 

68% of landlords found there was a shortfall between the cost of rent and the amount paid in Universal Credit.

Private landlords with tenants claiming Universal Credit can apply to have the housing element paid directly to themselves when a tenant has reached two months of rent arrears. This is known an Alternative Payment Arrangement (APA).

However, the RLA’s research highlights that it took landlords an average of almost 8.5 weeks for an APA to be arranged. This is leaving them with almost four months of rent arrears before they begin to receive they rent they are owed.

Among landlords with tenants in receipt of housing benefit, 62% said that they were worried that their tenants might not be able to afford to pay their rent when they migrate to Universal Credit. 

36% of landlords said that they had buy-to-let mortgage conditions preventing them from renting to benefit claimants.

The RLA is calling on the Government to do more to prevent rent arrears occurring in the first place including:

  • Giving all tenants from the start of a claim for Universal Credit the ability to choose to have the housing element paid directly to their landlord
  • Ending the five-week waiting period to receive the first Universal Credit payment
  • Ending the Local Housing Allowance freeze to ensure it reflects the realities of private sector rents

According to the most recent statistics, 45% of households receiving Universal Credit with support for housing costs are in the private rented sector.

David Smith, Policy Director for the RLA, said: “Today’s research shows the stark challenges the Government still has in ensuring Universal Credit works for tenants and landlords.

“The system only provides extra support once tenants are in rent arrears. Instead, more should be done to prevent tenants falling behind with their in the first place.

“Only then will landlords have the confidence that they need that tenants being on Universal Credit does not pose a financial risk that they are unable to shoulder. Without such changes, benefit claimants will struggle to find the homes to rent they need.”

Just Landlords launches competition to find Britain’s most beautiful garden

Published On: August 23, 2019 at 9:23 am

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Just Landlords launches competition to find Britain's most beautiful garden

Our sister company, Just Landlords launched their competition to find Britain’s Most Beautiful Garden this week. The competition, which is aimed at bloggers and garden enthusiasts, has a prize of £250 worth of Love2shop vouchers. 

They’re not necessarily looking for an RHS-worthy garden, but one that you personally think is beautiful. Whether it’s a cottage garden full of wild flowers, a place for your kids to play, or something more practical like a vibrant vegetable garden, they want to see it!

In regards to the prize, spokesperson for Just Landlords, Em Morley says: 

“We’ve chosen this specific prize because, amongst many other retailers, Love2shop vouchers can be used at Wyevale Garden Centres. Gardening enthusiasts will be able to treat themselves to something they are truly passionate about.”

When asked how this competition relates to landlords, Em went on to say:

“Landlords are always at the forefront of our thoughts, and so we are keen to highlight that this competition provides a key opportunity to encourage tenants to get on top of their garden maintenance, ready for the next inspection,

“If they are aware that their efforts could win them a £250 Love2shop voucher, even the least green-thumbed of gardeners should hopefully feel inspired to get involved!”

Em also told us to keep an eye on their social media and blog for upcoming announcements, in particular, the big reveal of the guest judge who will be helping to decide the winner!

Aside from announcements, they will also be posting links to some of the entries that they receive.

Anybody who wishes to enter has until 11th October and can do so here: https://www.justlandlords.co.uk/news/britains-most-beautiful-garden/