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Landlords in Slough will Need Licence to Let Properties with Multiple Individually Let Rooms

Published On: June 7, 2019 at 9:08 am

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Landlords in Slough will Need Licence to Let Properties with Multiple Individually Let Rooms

Landlords in Slough, Berkshire will soon need to obtain a licence to let properties with multiple individually let rooms, as part of Slough Borough Council’s bid to improve standards in the private rental sector.

Landlords will need to register any property they own and plan to let with multiple individually let rooms across the borough from Monday 1st July 2019. Failure to do so could result in prosecution and fines of up to £30,000.

Under the new licensing system, landlords with any rental properties within the designated area covering parts of the Chalvey and Central wards will also be required to apply for and obtain the new landlord licence.

Landlords in Slough must provide evidence that their properties are safe through valid utilities certificates and contact details to the Council in order to obtain a licence.

Councillor Mohammed Nazir, the Cabinet Member for Housing and Community Safety at Slough Borough Council, believes that the new scheme was part of wider efforts to improve conditions for tenants in the private rental sector.

He says: “In some cases, tenants had no idea who their landlord actually was, so, when a problem, possibly a safety problem, arose there was no way of getting it fixed, so people continued to live in dangerous conditions or without adequate facilities.

“A lot of the people who rent in Slough are vulnerable, families with young children, or legal workers who have no family or friends to rely on, and basically put up with poor conditions, as they have nowhere to turn.”

Nazir claims: “With a licensing system where landlords are compelled to sign up, there will be accountability and people who need help can get it.

“People’s lives are hugely affected by the property they live in, whether that be their mental or physical health, and we need to try and redress that.”

Landlords, if you have properties in Slough, make sure to check whether the new licence will apply to you.

The Average Rent Edged Up to £900 per Month in May

Published On: June 7, 2019 at 8:01 am

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Categories: Lettings News

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The average rent across England and Wales edged up to over £900 per month in May, after growth was recorded in four of the eight regions monitored by the Goodlord rental index. 

Nationally, the average rent stood at £901 per month in May, following month-on-month growth. 

The highest rent price across England and Wales was recorded in London, at an average of £1,643 per month. The South East followed, at an average of £1,044.

The region with the lowest average rent in May was the North East, at £634 a month.

According to the index, the average rent price in each region, per month, was as follows:

  • London: £1,643
  • South East: £1,044
  • South West: £896
  • Wales: £756
  • East Midlands: £720
  • West Midlands: £720
  • North West: £711
  • North East: £634

Goodlord also found that landlords in the South West experienced the shortest void periods in May, at an average of just 15 days.

Void periods were longest in the North East, at an average of 28 days, followed by the North West, at 25 days.

The average void period across all regions in May was 20 days.

Nationally, fixed term tenancies were just under a year in May, at an average of 11 months. The longest average terms were found in London, at 14 months, followed by the South East, at 12 months.

The North East and West Midlands were the most affordable regions for tenants to rent in May, both with an average property affordability of 4.1.

Affordability is defined as a tenant’s annual income divided by their yearly rent share. London and the South East remained the most unaffordable regions to rent a home.

Whether you’re a landlord or tenant, how does this average rent compare to the prices on your properties? 

How to get the Best Price for your Refurbishment

Published On: June 6, 2019 at 10:00 am

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By Sonia Pash, the Founder of Temza interior design and build

Refurbishing a property is really exciting; you get the chance to design the home of your dreams and have your say throughout every step of the process. However, all this responsibility can feel a little daunting at first. Here are some tips on stress-free, cost effective refurbishments to make sure you get the most out of your investment.

Don’t neglect the design stage

Often, people are so worried about buying or moving into the property and finding reliable builders that they neglect the design stage. Unfortunately, looking through glossy magazines and Pinterest, or shopping for pretty wallpaper isn’t really going to cut it. Interior design involves in-depth planning, organising, testing the options and managing. It’s one thing to pick pretty objects, but quite another to make the whole space and elements work, and work harmoniously.

Spend enough time planning and preparing. In an ideal world, before the building work starts, everything needs to be prepared: technical drawings, specifications, all of the key items specified and confirmed, all details confirmed by suppliers, e.g. delivery lead time, etc. 

This is the ideal scenario, but, in reality, most of our clients come to us saying that they need to start the building work tomorrow. Here at Temza,  (https://temza.co.uk/) we always try to be flexible: we design while the demolition process takes place, we juggle things, we do the impossible and, yes, there are compromises along the way. Although we can adapt to any situation, it’s much easier for everyone involved if all the planning has been done beforehand.

The more detailed information you put together, the more accurate price you will receive, with less chance of variation in the final price.

Before requesting a quote for your building project, make sure you have:

  • Set of drawings
  • Specifications for electrics, finishes, such as wall and floor, doors and ironmongery, bathrooms, including sanitaryware and tiles, kitchen and appliances, and fitted furniture
  • Planning permissions, licence to alter, party wall awards 
How to get the Best Price for your Refurbishment

Top tips to keep control of the budget

Before construction

  • Be realistic about what you want to achieve! Know your budget and stay within those limits. 
  • Try not tostart construction work on site before you have the design stage complete. You need to have all the plans locked, all planning permissions obtained and party wall awards agreed beforehand, as any delays will cost you dearly once construction starts.
  • It’s better to spend more on preparation and analysis than being faced with nasty surprises during construction for something you didn’t consider and plan for. It will always cost less to plan ahead for something than trying to come up with a last-minute solution.
  • Before you start on site, you need to get a CAT survey for the ground. If you find out about any sewage pipes, BT cables, etc. in the ground before you start, you can plan ahead for it.
  • Experienced consultants are everything. For example, a good engineer can come up with cost-effective solutions that will save you thousands.
  • Remember that construction never goes quite as it’s planned. It’s all about finding solutions instead of creating problems. Be ready to compromise.

During construction

  Once construction has begun, just being organised can save you considerable time, money and stress. Here are a few tips to make sure that costs stay down while you keep on top of things:

  • Set your budget and keep to it. Do weekly cashflow updates to know where you are.
  • Make sure you meet the construction team on a regular basis, and give them prompt and clear replies to any queries.
  • Have a site manager who you can communicate with every day. A key saving on any construction site is labour. If the construction team is well-organised and you provide them with enough information, they will deliver on time.

Shopping around

Another way to save is by making sure you’re getting the best deals for your money. Follow these tips to cut costs without scrimping on quality:

  • In order to get good discounts, buy materials in bulk; you will pay less if you order 100 lights instead of ten. Make sure you get comparable quotes from few trusted suppliers before you order.
  • If you are working on a smaller development, go to your local shop and check for job-lots. They often have 30-50% discounts on end-of-the-range products: for example, we recently saved 60% on flooring by choosing a range that was running out of stock. Go to sale yards, where they have leftover amounts for amazing prices, or wait for Christmas or any other seasonal sale to lock in those holiday deals.
  • Price is not the only key element; lead time is also important. You might be saving on materials, but you are losing more with your workforce standing around waiting. Make sure your suppliers can actually deliver on time and check on them regularly for updates on your orders!

Other useful tips

  • Never try to save money on main services: electric, plumbing, gas. The cheapest price doesn’t always provide you with best solution, and it’s better to pay a higher rate for an experienced professional who can do a good quality job and quickly. If you choose an inexperienced tradesperson, they will most likely take longer and you ultimately end up paying more.
  • Make sure you recycle and separate the different waste materials. Not only do you protect the environment, but you will also get discount from the skip provider. 
  • Be kind to thy neighbour! They can be real lifesavers, helping you out in unexpected situations.

Tenants to Save £192m a Year Thanks to Lettings Fee Ban

Published On: June 6, 2019 at 9:29 am

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Categories: Tenant Fees Ban,Tenant News

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Private tenants in England look set to save a total of £192m a year thanks to the recently-introduced lettings fee ban, which came into force on 1st June 2019.

A new study, undertaken by property app Bunk, has assessed the cost saving for tenants as a result of the Tenant Fees Act.

Bunk analysed the number of rental transactions within the private rental sector in England, along with the average tenant fee paid prior to the ban, to ascertain just how much the nation’s renters will be saving now that fees are prohibited.

According to the latest Government statistics on churn in the private rental sector, some 860,000 rental transactions are recorded per year.

Data from the English Housing Survey 2017/18 shows that the average tenant was charged £223 in fees alone.

Based on these statistics, a total sum of £191.8m will be saved per year thanks to the ban.

The Government believes that the Tenant Fees Act will make renting properties in England fairer and more affordable for renters, by reducing the costs they have to pay at the outset of a tenancy, at the same time as improving transparency and competition in the private rental sector.

Our Editor, Rose Jinks, spoke to Sky News Sunrise on the day the ban was introduced, to give her thoughts – take a look here. 

Landlords and letting agents in Wales will be banned from charging fees to tenants from 1st September 2019.

Tom Woollard, the Co-Founder and CEO of Bunk, comments: “For far too long, letting agents have essentially been writing their own rules when it comes to the fees they charge tenants for all manner of things, and, as a result, it has left a very sour taste in the mouths of many in the rental sector.

“The ban on tenant fees is undoubtedly a step in the right direction, as we now have a clear piece of legislation that letting agents, landlords and tenants can all adhere to, with a good level of accountability when this isn’t the case.” 

He continues: “Until this point, the majority of letting agents have essentially been taking extra money above and beyond any justified fees for no additional work, and so the thought that they might try and recoup this lost revenue through rental hikes or any other means is quite laughable. 

“Only time will tell if this does happen, and there will no doubt be a knee-jerk reaction of some sort by the industry. Hopefully, it will act as a catalyst for the sector to stand up and show it can provide a good service for a reasonable fee, and that letting agents still hold some value in a world where technology and innovation will undoubtedly render them obsolete.”

4 in 10 Tenants Face Issues with Having Essential Repairs Fixed

Published On: June 6, 2019 at 8:53 am

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Almost four in ten (39%) tenants face issues with having essential repairs fixed in their properties, leaving more than a third being stuck in poorly maintained homes, according to a survey from the HomeOwners Alliance.

The study of more than 2,000 UK adults found that 39% of private tenants have trouble getting their landlords to conduct essential repairs, while 38% live in cold and damp homes, and 36% have anti-social neighbours.

At the same time, 35% claim to live in poor quality housing, 32% have a limited choice of rental properties, and 20% are worried that their homes do not meet safety or fire standards.

Meanwhile, the majority of tenants in the UK fear that they will never get onto the property ladder, with six in ten concerned that they will not be able to afford to buy a home.

The research also highlighted people’s concerns and criticisms regarding the shortcomings of the Shared Ownership and Help to Buy schemes aimed at helping them buy homes, although the survey found that build to rent is forecast to become a more suitable solution, with the longer tenancies that it offers.

Furthermore, almost half (48%) of respondents supported the ban on tenant fees, 40% would like to rent from a responsible housing provider, 38% wish to see high quality safety and energy efficiency standards in their homes, and 35% want the option of a longer tenancy.

Paula Higgins, the Chief Executive of the HomeOwners Alliance, says: “We have a crisis on our hands. A majority living in rented accommodation desperately want to buy a home of their own – yet most think this is a pipedream. This shouldn’t be the case in the fifth strongest economy in the world.

“Not only that, but it is disgraceful that such high numbers of people living in rented accommodation are putting up with damp, cold properties and reluctant landlords who do not maintain their homes to the required standards. It has been incredibly unfair that such high charges have been put on those living in the rental sector, and the HomeOwners Alliance welcomes this overdue ban.”

She adds: “Help to Buy continues to be a popular scheme, despite fundamental leasehold problems, while features offered by build to rent developments are also attractive to consumers, including security of tenure. Shared Ownership has also lost some of its shine.”

Landlords, we encourage you to always offer safe and secure homes to your tenants, responding to essential repairs in a timely fashion. 

Labour Plans to Scrap Council Tax for Private Tenants

Published On: June 6, 2019 at 8:00 am

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Private tenants would no longer have to pay Council Tax under new plans being put to the Labour Party.

A Labour-commissioned report, Land for the Many, calls on the Party to intervene to cool the housing market if it wins power, by introducing a new “progressive property tax” set nationally, rather than by local councils, and paid for by landlords.

As part of Labour’s proposed new property laws, empty housing, second homes and those owned by people not resident in the UK for tax purposes would have to pay the next tax at a “significantly” higher rate. Also paying proportionately higher rates would be family households with bigger gardens.

The idea behind the proposed shake-up of the property tax system is to “discourage the use of homes as financial assets, reduce the tax paid by the majority of households, and encourage more efficient use of the housing stock”.

The report states: “We recommend that a Labour government replace the regressive and unpopular Council Tax with a progressive property tax based on contemporary property values.

“Unlike Council Tax, this tax would be payable by owners, not tenants.

“This would result in significant administrative savings, lower levels of arrears and less court action.

“Unlike Council Tax, the progressive property tax rate would be based on regularly updated property values, and the rates would be set nationally, rather than locally determined.”

While landlords might want to pass this tax bill onto their tenants in the form of higher rent prices, it seems unlikely that they’ll be able to do so, as, among the new policies included in the report, rent controls are being considered.

Some ministers have branded the proposal “extraordinary and deeply damaging”, warning that Labour’s move amounts to a “tax bombshell”.

The policy idea, contained in the report, suggests that, if Labour wins the next general election, the Party should make public all information about land ownership and control, urge the Bank of England to do more to cool the property market, and give public development corporations the power to purchase, develop and sell land “in the public interest”.

As well as shaking up the property tax system, Labour is also urged to “end the buy-to-let frenzy”.

The Shadow Cabinet Office Minister, Jon Trickett, welcomed the report, vowing to study its recommendations “in detail”.

However, the Housing Secretary, James Brokenshire, said that the plans were “extraordinary and deeply damaging in equal measure”.

He explained his stance: “Labour will stop at nothing to hammer families with more tax and make homeownership a pipedream for future generations.

“Plans to seize land into public ownership also show Labour’s true colours of more and more state control.

“This tax bombshell for families would mean family homes with gardens paying far more and higher taxes on pensioners by abolishing the single person discount.”

The full, independent report, commissioned by Labour, can be found here: http://labour.org.uk/wp-content/uploads/2019/06/12081_19-Land-for-the-Many.pdf