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Government called on to clarify if help for private renters will include students

Published On: November 10, 2022 at 11:35 am

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The Government has been called on to clarify whether students will be included in plans to support renters through the cost of living crisis.

The founder of Very Wise Student points out that the Government has suggested support might be on the way for renters unable to afford rents, which have risen 16% this year, but there is no suggestion so far that this support will extend to struggling students.

Speaking on the BBC recently, Housing Secretary Michael Gove stated: ”We know people in the private rented sector and in the social rented sector are facing tough times. We are looking at a range of options to help them. It could mean targeted support for all sorts of people who are in difficulty. 

“Rent is going to be one of the challenges people will face… There are different ways of supporting people, whether that’s through Universal Credit, the tax system, or direct support.

Last month, the Scottish parliament passed emergency legislation designed to protect tenants hit by the cost of living crisis that freezes rents until at least the end of March 2023.

Rightmove’s Q3 2022 figures report the national average for asking rent has increased 11% year-on-year (excluding Greater London). The average asking rent for Greater London has increased 16.1% year-on-year.

Very Wise Student’s own analysis has indicated that students spend 76% of their income on renting.

Ajay Jagota, founder of Very Wise Student, comments: “The impact of the cost of living crisis on students all-too-often goes under the radar, but they are in exactly the same position as other private renters, facing rising rents with restricted budgets which are already having to stretch further and further with every passing day.

“If the Government is going offer support to renters, that support has to come in a way which applies to those in student accommodation – and if that support comes through Universal Credit or the tax system it must be mindful that students may not benefit from it.

“At Very Wise Student we’re seeing a steep spike in demand for our services – and that will come as no surprise to people who have seen pictures like the ones on national news of students in Durham queuing up overnight to try and find homes. A shortage of student accommodation is likely to force students into the arms of unscrupulous and uncaring landlords and letting agents peddling unsafe and unsanitary homes.

“Very Wise Student helps all student renters get access to legal justice. Whatever the issue is with their rented student housing we will take up the issue directly with their landlord or agent – and if all this extra pressure is really getting on top of them, we can help with emotional support too.”

Private renters plan for gym showers and keeping warm in cafes this winter to help with energy bills

Published On: November 2, 2022 at 12:44 pm

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Nearly half (47%) of tenants involved in a recent survey said they are confused about energy efficiency changes they can make to their homes without breaching their tenancy agreements.

Smart Energy GB commissioned a poll of 2,000 private tenants, finding that some plan to keep their energy bills down this winter by having a morning shower in the gym (22%), charging their tech in the office (26%), and keeping warm in cafes (20%).

Concerns about rising energy bills mean that 26% think it will be more cost effective to buy a few hot drinks, rather than heating their home. 23% will take the opportunity to visit friends and family members, while their own heating stays off.

36% think this will help them manage their outgoings this winter, with 14% admitting they have no idea how much their next energy bill will be.

29% believe their current rental property is as energy efficient as it could be. One in five would like double glazed windows installed, while 28% want better external wall insulation. A quarter also think their property would benefit from an entirely new boiler being installed, and 29% want solar panels put in. 59% find it frustrating that most of the information available about making homes energy efficient seems to be geared towards homeowners.

Smart Energy GB has produced an energy efficiency guide for renters to help them identify areas where they can take action.

Victoria Bacon, Smart Energy GB, comments: “With energy bills increasing, many people are making plans to beat the rising cost of living. But for renters, not knowing what energy efficiency changes they’re allowed to make can be an extra worry.

“Our guide covers low or no cost changes, like getting a smart meter, that are simple to do and effective at helping to keep your bills down. If you pay for the gas or electricity in your rented property, you can choose to have a smart meter. We recommend you tell your landlord before you get one.”

Property expert Kate Faulkner comments: “Whether you’re looking to rent a new flat, or you want to make improvements in your existing home, there are several simple steps you can take to help keep your energy bills down this winter.

“Understand how much energy you are using at what times by asking your energy supplier to fit a smart meter. Once you have one, this will make it much easier to focus on what’s costing you the most. 

“An easy way to cut your bills is to switch your bulbs to LEDs. If your property is difficult to keep warm, talk to your landlord about loft or cavity wall insulation and turn your thermostat down by 1 degree. 

“Your smart meter’s portable in-home display shows how much energy you’re using in pounds and pence, in near-real time. Your meter reading will also be sent to your energy supplier automatically, which means one less thing on your to-do list.”

Exempt accommodation and support services branded a ‘complete mess’ in government report

Published On: October 28, 2022 at 12:35 pm

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The Levelling up, Housing and communities (LUHC) Committee has published a report into exempt accommodation and support services, branding the system a ‘complete mess’ that is failing far too many people in vulnerable situations such as those fleeing domestic abuse and experiencing homelessness.

The report puts forward a series of recommendations, including closing the loopholes that enable landlords to make vast sums of money through housing benefit claims and introducing compulsory national minimum standards for exempt accommodation providers.

Crisis has been calling on the Government to step in and tackle the issue of rogue landlords within the exempt accommodation sector, which the charity says are ruining people’s lives and preventing them from moving on from homelessness. It is urging the Government to back the Supporting Housing (Regulatory Oversight) Bill, which will be introduced in parliament In November. The Bill will introduce tighter regulation on exempt accommodation providers and protect people from exploitation and abuse.

Matt Downie, Crisis Chief Executive, comments: “This committee report lays bare the serious failings in the exempt accommodation sector that have allowed people to be exposed to some of the worst examples of exploitation and abuse that we have seen. From being forced to live in damp, mould infested rooms to being harassed, held at knifepoint by landlords, and in the worst incidents sexually assaulted, our clients have bravely spoken out time and time again about the need for immediate action.

“Now, with this report adding further weight to their calls we would urge the Government to get on with implementing these recommendations through the Supporting Housing Bill, which would give councils the power to stop rogue landlords providing exempt accommodation. There can be no delay – it’s essential we close the loopholes that are enabling people to profit from hardship and ensure that people are given the help, support and space they need to leave homelessness behind.”

Average UK buy-to-let portfolio rental return up 18% annually, Ocasa research shows

Published On: October 26, 2022 at 8:58 am

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The average UK landlord has increased the size of their portfolio on an annual basis and also seen a 18% increase in estimated total rental income, says Ocasa.

The specialist rental platform analysed data on current gross rental incomes, the average number of buy-to-let properties in a portfolio and the total rental income per portfolio, as well as how these factors have changed over the last year.

It says that, across the UK, the average buy-to-let investor has an average of 8.2 properties in 2022, a 17% increase on the average portfolio size of 6.9 properties in 2021.

The average gross rental income of the average property has also climbed by a marginal 0.5% to £7,891. As a result, Ocasa says the average buy-to-let investment portfolio is now returning an annual level of rental income to the tune of £63,917 – an 18% increase on 2021.

Largest average portfolios by location

Ocasa says investors in Yorkshire and the Humber currently have the largest portfolios with an average of 15.5 properties, followed by the North East (10.8) and East Midlands (10.5).

Buy-to-let investors in Yorkshire and the Humber have also seen one of the largest increases in portfolio size, up 50% year-on-year. This is second only to the South West, where the average buy-to-let portfolio has increased by 69%.

Central London has seen the third largest boost to buy-to-let portfolio sizes, with a 43% increase. While the average portfolio size in central London is amongst one of the lowest at just 8.3 properties, investors in the area are not only seeing the largest levels of rental income, but they’ve also seen the largest increase in this level of rental income.

Ocasa also says the average buy-to-let portfolio in central London commands an estimated £93,890 in rental income per year, up 42% annually. The South West has also seen a 42% increase in the estimated rental income of the average buy-to-let portfolio, along with the North West (37%).

Jack Godby, Sales and Marketing Director at Ocasa, comments:“It’s great to see that, despite the UK Government’s best efforts, the buy-to-let sector has really hit the ground running in 2022. 

“Like any area of the property sector, investment levels, property prices and rental values can vary drastically from one region to the next and this understandably has an impact on the size of a buy-to-let portfolio, the rent achieved per property and the overall return made. 

“However, it’s clear that strength is building across the market with respect to an increased level of income. The fact that only two regions have seen the average portfolio size reduce is also testament to the resilience and consistency of bricks and mortar as an investment vehicle.”

Landlords ordered to make rent repayments to tenants

Published On: October 25, 2022 at 11:15 am

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Very Wise Student, launched by claims management company Veriwise, has highlighted areas in the UK where tenants have received rent repayments due to issues with their homes.

They say tribunal decisions leading to Rent Repayment Orders against rogue landlords and letting agents show a worrying snapshot of conditions within the private rented sector.

These include:

Ilford – £24,414 of rent repaid

The tenant was repaid for rent on a house in Gants Hill, which was described as ‘uninhabitable following a fire in one of the bedrooms and loft room.’ This was found to be caused by a defective boiler and the house was not properly equipped with smoke alarms. The tribunal determined the tenant was entitled to receive a rent repayment of £24,414.18.

Bristol – £17,500 of rent repaid

Six university tenants were entitled to a total rent repayment of £17,500 after their property was found to be an unlicensed house in multiple occupation (HMO).

Fareham – £2,659 of rent repaid

A landlord failed to comply with an improvement notice under section 30(1) of the Housing Act 2004 (“the 2004 Act”). The Tribunal determined that the landlord should make a rent repayment of £2,659.03 to the two tenants.

Coventry – £2,800 of rent repaid

A tribunal found a landlord’s behaviour toward a tenant in a house let to students be “intimidating and directly threatening” and “of the highest order of seriousness.” This led to the landlord being ordered to make a rent repayment of £2,800.

East London – £2,100 of rent repaid

A landlord in London was found to have showed “a lack of care for the safety and wellbeing of the tenants and of compliance with the obligations on a landlord”. Allegations included damp and leaks from the boiler and the lavatory waste pipe. They were ordered to repay £2,100 of rent to the tenant.

Ajay Jagota, founder of Very Wise Student, comments: “Many of these cases relate to student accommodation which makes up a significant proportion of HMOs. Rogue landlords and letting agents sadly see students as a soft touch as unlike other renters they tend to have little knowledge of their rights – such as Rent Repayment Orders – and little resources are available to provide them with access to justice, when they do.

“At Very Wise Student, we help all tenants get access to justice, so whatever the issue is with your rented student house we resolve the issue directly with your landlord/agent.”

Tips for taking in a lodger from money.co.uk

Published On: October 24, 2022 at 9:00 am

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Money.co.uk has provided tips for those considering taking in a lodger for the first time.

With the recent cost of living crisis, there can be financial benefits to renting out a room. Money.co.uk also says that a lodger may also be a great source of company, and could even help out with the household chores.

Their top six tips are:

1. Check permission with your mortgage lender

If you are a homeowner with a mortgage, you may need permission from your lender before you rent out part of your property. It is rare that a lender will have an issue with you having a lodger, but still worth checking. However, if you are a tenant, the tenancy you hold will determine your rights. As standard, if you are renting from a private landlord, you should check your tenancy agreement to see what your landlord will permit.

2. Find a suitable lodger

There are many sites that will help you find a lodger, such as SpareRoom.co.uk, RoomBuddies.co.uk and MondaytoFriday.com. Social media is another great tool for finding a lodger, so take to Facebook, Twitter and Instagram and have your friends share the message too. Or you could go old-school and pop an ad in the local newspaper! To make sure your lodger is the right choice for you, consider making your advertisement as clear as possible, including everything you are looking for in a lodger and any specific wants or needs. It is also important to make sure anyone you are taking into your home does not pose a threat to your safety. Therefore, make sure you ask your potential lodger for references and set up a meeting with them before signing any agreements.

3. Write up an agreement

A written agreement will allow both you and your lodger to clearly understand the rights and responsibilities both parties should uphold. For example, the exact amount of rent to be paid, whom it should be paid to, the contract length and any break clauses.  As well as a general written agreement, it would also be a good idea to make an inventory of the lodger’s room. You could also take photos of the condition of both the room, and any applicable contents, such as furniture, before they move in.

4. Check the immigration status of your lodger

Even if you have a landlord, you are responsible for checking a lodger’s immigration status, as you could face a fine if they are found to be in the UK illegally. To do this, you either need to check your lodger’s original documents or view their rights to rent online if they have a ‘share code’. You’ll be able to find a detailed list of acceptable documents on the Gov.uk website and make sure to make copies of their documents.

5. Make sure your home is safe

If you are providing any furniture to your lodger, you will need to make sure it complies with fire safety regulations, so be sure to check all furniture labels. Gas regulations will also apply when taking in a lodger so any gas appliances will need to be checked yearly by an engineer who is registered with Gas Safe. Similar rules apply to electrical appliances, so you will need to make sure any kettles, toasters and other electrical appliances are safe to use.

6. Inform your home insurer

Although taking in a lodger will mostly benefit you financially, you might have to pay more in home contents insurance premiums. Therefore, it is important to inform your insurance provider, otherwise, your insurance could become invalid.

Kellie Steed, Mortgage Expert at money.co.uk, comments: “One way you can benefit from taking in a lodger is through the government’s Rent a Room scheme. This allows live-in landlords to earn up to £7,500 a year of tax-free cash, anything after that will be taxed. If you make less than the £7,500 threshold, then you don’t need to do anything and your tax exemption is automatic.

“However, if you earn above this threshold, you can opt into the scheme by letting HM Revenue & Customs know on your tax return, this way you can still claim your tax-free allowance. You can opt into the scheme at any time if you are a resident landlord and if you run a B&B or guesthouse.

“If you plan to rent out a room privately, the amount you can make really depends on the location of your property, its condition and the size of the room. To get a general idea, it is estimated that the current average for a double room in the UK is £90 a week.

“As well as charging for rent, you could also charge your lodger for council tax, utility bills, and even cleaning and food if provided. This would be a big help for those struggling with the rising costs of living on their own.

“If you are planning on buying a house in the near future, another great benefit of having a lodger is that this added stream of income can improve your affordability when applying for a mortgage. In turn, this might provide you with better deals and larger loans.

“However, you should be aware that not all lenders will take this into account given the short-term nature of having a lodger; it may only be the most flexible lenders that will look at the whole picture.

“It’s also important to note that taking in a lodger can affect any benefits you receive. If you receive means-tested benefits such as a Housing Benefit, the first £20 of weekly income from your lodger will be disregarded, as well as 50% of anything over £20 if you provide your lodger with food. “You will also remain responsible for paying council tax when taking in a lodger and will no longer benefit from the 25% single-person discount if you previously lived alone.”