Written By Em

Em

Em Morley

Top Reason for Letting Agent Complaints is Poor Communication for EIGHTH​ Year in a Row

Published On: June 26, 2019 at 9:01 am

Author:

Categories: Lettings News

Tags:

The Property Ombudsman (TPO) has published a report showing that the top reason for complaints against letting agencies last year was over poor record-keeping and communication. 

This is not a new trend either, with the same reason coming second in the 2017, 2016 and 2015 surveys and first in 2014 and 2013. In 2012 and 2011 the most commonly cited reasons for complaints were poor service and poor complaint handling respectively. 

“Communication in particular, as well as record keeping, have for the last eight years been a common cause of consumer complaints against agents,” says Neil Cobbold, Chief Operating Officer of PayProp.

“More worryingly, the problem has worsened since 2015, which means the time has come for the industry to think more carefully about improving communication and record keeping across the board.”

This worrying trend can be easily fixed by adopting modern methods of communication in order to keep clients up to date more efficiently.

“These days, consumers send and expect to receive much of their communications via their smartphones, often outside of traditional working hours,” Cobbold explains.

“The best agencies all step up to meet these needs, providing digital-friendly information that is easy for people to access every step of the way.”

“Of course, the personal element of the lettings process remains hugely important, so agents still need to be available for phone calls and face-to-face meetings where possible,” he says.

In regards to record-keeping, Cobbold adds: “Letting agencies can improve their record keeping by storing everything digitally and using technology solutions for basic administrative tasks to help reduce the margin for human error,” Cobbold adds.

“Being able to see the live status of a portfolio with all the correct and up to date information can help agents to easily provide their clients with a full summary of what is going on, as well as greater visibility.

“This can help landlords and agents to stay on top of all issues and take the necessary steps to manage the tenancy accordingly,” he says.”

Although most agencies receive very few complaints, it is still essential for every business in the industry to identify their most common source of complaints before it becomes a bigger problem. 

Efficient record-keeping is a fundamental part of any business, and in a post fees ban-world where the private rental sector is often a target of the media, letting agents should be doing everything they can to prevent further negative press. 

Landlord Selective Licensing “Brings us no Closer to Finding Crooks that Operate Under the Radar”

Published On: June 26, 2019 at 8:30 am

Author:

Categories: Law News

Tags: ,

A review on selective licensing for rented housing was released yesterday, proposing a national register for landlords.

The Government commissioned an inquiry into selective licensing last year, which was overseen by a working group made up of local government and industry representatives.

However, Conservative ministers have voiced their opposition to plans for a national register, with Minister for the Private Rental Sector (PRS) Heather Wheeler stating last year: “The Government does not support a mandatory register of private landlords.

“The majority of landlords provide decent and well–managed accommodation and requiring those landlords to sign up to a national register would introduce an unnecessary and costly additional layer of bureaucracy.”

The Residential Landlords Association (RLA) is also against the idea, believing that it could end up harming those it’s designed to help.

John Stewart, Policy Manager for the RLA, has said: “Ministers have repeatedly made clear that a national register of landlords would become an unnecessary and costly additional layer of bureaucracy. 

“We agree. All it would become is a list of good landlords which brings us no closer to finding the crooks that operate under the radar.”

The RLA highlights that licensing schemes offer no guarantee when it comes to the quality of homes. 

Mr Stewart also commented: “Selective licensing has become a replacement for lost central government funding and provides no assurances to tenants about the quality of accommodation. 

“Properties do not need to be inspected before a landlord is given a licence and the RLA has found that many councils are charging eye-watering sums of money for almost nothing in return.

“Local authorities need the will and the resources to put real effort into finding the criminal landlords who never come forward to make themselves known. 

“That means using a range of information they can already access including council tax returns, information on tenancy deposits and benefit data to root out the minority of landlords who bring the sector into disrepute.”

You can read the Government’s report on selective licensing here: https://www.gov.uk/government/publications/selective-licensing-review

Is a Greener Future for Rented Accommodation on the Horizon?

Published On: June 25, 2019 at 9:06 am

Author:

Categories: Property News

Tags:

Property professionals met up recently in London to discuss rented properties in the UK, with one of the key takeaways being that build to rent is driving investment in cleaner energy.

More than 100 people attended the seminar, which was hosted by engineering partnership IN2 in Islington.

It was noted that planning and environmental requirements in Dublin have seen a rapid rise in the use of centralised air source heat pumps. They are being used instead of CHP.

James Redmond, a Director at IN2, spoke alongside Andrew Bradley, of construction cost consultancy Core Five, and architects Graham Hickson-Smith and Richard Fairhead from practice 3DReid.

James said: “These are achieving great energy figures and allowing investors to meet their renewable obligations under Irish legislation.”

He also highlighted that the scale of energy savings and growing consumer demand for energy-efficient living could also stimulate growth in the use of such technology in London.

With residential landlords now legally required to ensure that their lets have an EPC rating of E or higher, this could be the way forward.

Richard and Graham also pointed out how vital it is that project teams work together to make build to rent assets as efficient as possible.

Richard explained: “The fundamental difference with build to rent is that the operator has to deliver amenity, which costs money. If you can be more efficient in the design, you can afford to invest more in amenity.”

Graham stated that allowing for a changing future means developers will have to ask themselves whether or not a modular building approach is right for this kind of project. The answer may be no if an uncompromising modular approach were to limit their ability to adapt the development to suit changing lifestyles of occupants over the lifetime of the building.

Andrew looked at the costs associated with build to rent projects and what would be needed to ensure a return on investment: “These kinds of developments have to be some of the most cost-efficient buildings out there.” He urges investors to take advantage of the fact that there is now a vast amount of data on build to rent developments to draw on.

Before embarking on a build to rent project, Andrew advises developers to ask themselves how many buildings would be optimal, what kind of buildings they should be and whether towers have a useful role to play.

“Repetition in design is fundamental,” he said. “Stacking is important, and regular shapes and apartment sizes are key. Developers need to recognise that some design possibilities, such as basements and inset balconies, are cost prohibitive in build to rent.”

Tenants are Poorly-Informed on Their Rights, NLA Blames Government

Published On: June 25, 2019 at 8:44 am

Author:

Categories: Tenant News

Tags: ,

A recent report commissioned by The National Landlords’ Association (NLA) has found that more than three quarters – 79% – of tenants need more information about their rights and responsibilities.

The NLA believes the government isn’t doing enough to make tenants aware of their rights despite their latest push of their How to Rent Guide. Currently, landlords are compelled to hand copies of the guide to their new tenants, but whether through landlords and letting agents not doing so, or tenants simply not reading the guide, the program has been ineffective. 

The study found that 67% of surveyed tenants weren’t even aware of the Government’s How To Rent Guide. 

Richard Lambert, CEO of the NLA, commented: “It is alarming that so few tenants seem to know about the government’s flagship guide on their rights and responsibilities. It’s clear that compelling landlords to give tenants copies of the How to Rent Guide has made little impact.” 

Whilst the study did bring to light that 68% of tenants had never had any cause to complain to their landlord: a definite positive, Lambert is concerned: “Unless the government tackles this problem quickly, there is a danger that there will be a breakdown of trust between landlords and tenants at a time when this relationship is already coming under strain because of overregulation in the PRS.”

The Guide is designed to inform tenants of their rights and responsibilities. According to gov.uk: “It provides a checklist and more detailed information on each stage of the process, including what to look out for before renting; living in a rented home; what happens at the end of a tenancy and what to do if things go wrong.” 

The guide can be found here: https://www.gov.uk/government/publications/how-to-rent 

Coalition Calls on Conservative Hopefuls to Scrap Right to Rent

Published On: June 24, 2019 at 8:59 am

Author:

Categories: Law News

Tags:

With candidates now campaigning to become the next Conservative Party Leader, a coalition is urging them to scrap the controversial Right to Rent scheme.

This coalition of organisations is made up of the Resident Landlords Association, the Joint Council for the Welfare of Immigrants and the3million, which represents EU citizens in the UK. They have united to call on Jeremy Hunt Boris Johnson to scrap the Right to Rent policy, after it was ruled by the High Court to be a cause of discrimination against British ethnic minorities.

Under this policy, private landlords face up to five years in prison if they know or have “reasonable cause to believe” that their let is being occupied by someone who does not have the right to rent in the UK.

Theresa originally introduced the scheme May, during her time as Home Secretary, as part of the Home Office’s hostile environment policy.

Its abolition has been called for, following damning criticism by the High Court earlier in the year. It stated that Right to Rent breaches human rights law by causing racial discrimination that otherwise would not happen.

Following a Judicial Review of the policy secured by the JCWI and supported by the RLA, it was concluded by the presiding judge that discrimination by landlords was taking place “because of the scheme”. In his judgement he said that discrimination by landlords was “logical and wholly predictable” when faced with potential sanctions and penalties for getting things wrong.

The Chief Inspector of Borders and Immigration has also concluded the Right to Rent had “yet to demonstrate its worth as a tool to encourage immigration compliance”.

David Smith, Policy Director for the Residential Landlords Association, said: “The Right to Rent has been a failure. No one has been prosecuted under the scheme but it has created a great deal of anxiety for landlords who do not want to go to prison for getting it wrong.

“Landlords should not be used to cover for the failings in the UK Border Agencies.”

Nicolas Hatton, CEO of the3million, said: “Two-thirds of EU citizens in the UK live in private rented housing and will be affected if this failed scheme continues.  

“We are already seeing that landlords are less likely to rent to anyone without a British passport, and uncertainty about Brexit added to the hostile environment will only increase the discrimination EU citizens are facing. We urge the UK government to scrap this scheme and end the discrimination.”

Chai Patel, Legal Policy Director of the Joint Council for the Welfare of Immigrants, said: “The Home Office is now arguing in its appeal that it is justified in causing racial discrimination against British ethnic minority families struggling to find a home. It is arguing that black and brown British people’s dignity, humanity, and rights can be tossed aside to pursue Theresa May’s Hostile Environment.  

“That cannot be acceptable in modern Britain. The new Prime Minister must commit to ending landlord immigration checks, and the discrimination they cause.”

More Millennials Looking to Remain Renting, According to YouGov Data

Published On: June 24, 2019 at 8:28 am

Author:

Categories: Tenant News

Tags: ,

It’s good news for landlords, as new research from The Nottingham Building Society reveals that only one in ten millennials plan to get a mortgage in the next 12 months. This is despite a third of respondents claiming that they are currently saving for a property.

It seems that this age group is set to continue renting for the time being, and this analysis from The Nottingham looks at the situation in further detail, which provides insight for landlords on what younger tenants value in a let.

The building society analysed the data from YouGov Profiles with the objective of looking into the current living arrangements of those aged 20 to 37. The respondents were questioned on their attitudes towards buying their first home as well as their overall thoughts about housing and the economy.

This data also found that 64% of those involved with the survey agreed that a better quality of life could be obtained in the country. A third of them claimed that they could never live in a big city.

The research indicates that millennials are rejecting inflated city prices and central locations in favour of locations where they can feel more at home.

They also value a sense of community in the area, with 52% wishing there were more community activities in their area. Only 20% feel that there is a better sense of community within cities, indicating that the generation will increasingly move away from properties in central city areas, to focus on more rural locations.

26% of respondents stated that they are currently living with parents. 12% currently live rent-free with parents, friends or family.

Despite Brexit uncertainty and the affects it may have on the housing market, there is still a positive outlook. 38% agreed that they are “better off” now than they were a year ago. 32% have admitted that they feel their household financial situation will improve over the next 12 months. This is compared to 20% of the overall national population sharing this outlook.

35% of those aged 20 to 37 have been taking into account news about the economy before making big purchases. The Nottingham believes that this implied Brexit could be a major factor contributing to why just 11% are planning to take out a mortgage and only 3% own their property outright.

Ben Osgood, Senior Mortgage Manager at The Nottingham, said: “Getting onto the property ladder can be a daunting experience, particularly in periods of economic uncertainty. People regularly compare a range of providers when it comes to their energy and insurance so it’s surprising the research found that just one in ten millennial house owners used a mortgage broker, meaning they don’t do the same for their mortgage. Especially considering it’s likely to be their most expensive outgoing.”

“That’s why we introduced the whole of market mortgage comparison for our members provided by Nottingham Mortgage Services. It’s important to us they leave with the right mortgage, regardless of provider. Getting the right advice and product should help the millennial generation feel more confident about their house purchase and know they have a mortgage that suits them, giving them the confidence to make that first leap.”