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Em Morley

Landlord Licensing Proposed by Newcastle City Council

Published On: April 29, 2019 at 8:00 am

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Categories: Landlord News

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A new landlord licensing policy has now be put forward by Newcastle City council. However, private landlords in the area are unhappy with this news. They have rejected this idea, which would require them to pay up to £750 per property for a licence.

The council has argued that landlord licensing is necessary, in order to bring about improvements to accommodation. The registration scheme will also help to improve local neighbourhoods and reduce anti-social behaviour.

But the view of many landlords is that such a scheme will only penalise the good landlords, as well as ‘push rents up for tenants.’

Private landlords have described it as using “a sledgehammer to crack a nut”, with over one hundred people gathering to discuss options to oppose the scheme.

Landlord Bruce Haagensen has said that the evidence that they have seen from the council only shows a small number of landlords who are “not doing things correctly”.

Haagensen has commented: “Even if you say 10% are bad that still leaves 17,000 who are good and are being forced to pay money for a licence that really isn’t relevant to them and is ultimately going to push rents up for tenants.”

The scheme would affect about 19,000 properties, but with the council receiving around 1,200 complaints about private accomodation each year, it feels justified in its proposal. Newcastle City Council’s housing team leader Paula Davis has shared her concerns that there are an “awful lot of very vulnerable tenants” within the city.

She commented: “Old people, young people, people who have migrated into the city and maybe don’t speak English as a first language – and they just wouldn’t know who to complain to.”

The scheme would bring in a set of standards, requiring landlords to meet certain conditions and pay a fee to obtain a five-year licence. The licence for landlords with a poor history of compliance will be restricted to one.

Can I Switch Energy Providers? What Landlords and Tenants Need to Know

Published On: April 26, 2019 at 9:32 am

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What would you do, if your landlord said you couldn‘t switch energy providers?

A new survey has revealed that this is the case, and that thousands of tenants looking to reduce their bills are being refused their requests to switch.

The results of this survey come from a study by auto-energy switching service Migrate. The company has found that 9% of tenants have been told by a landlord or letting agent that they do not actually have the right to switch, even if it is to enable them to move over to a cheaper deal.

However, this is not necessarily the case. According to Citizens Advice, if you, as the tenant, are paying the energy bills directly, then it is down to you which company you go with. This is also the case if you have a prepayment meter.

If you are unsure about whether you are responsible for paying your energy bills, Citizens Advice instructs tenants to check the tenancy agreement.

The survey had also revealed that another tenth of tenants have been told by their landlord or letting agent that they were not allowed to have a smart meter installed in the property, which is also not the case.

Again, Citizens Advice highlights that a landlord cannot stop a tenant from having a meter removed or installed. It does, however, point out that you might have to reinstall the original meter at the end of your tenancy.

Even tenants who have not directly had such issues seem to be unsure about where they stand. About two-thirds of the survey respondents who have not moved to a new supplier noted that this was mainly due to the fact that they didn’t think they were allowed to do so.

It is worth noting that some tenancy agreements might state that a tenant has to go with a landlord’s preferred supplier. In such a situation, it would be best for tenants to inform their landlord or letting agent of their intent to switch.

Record Level of Rental Stock Available, According to Propertymark’s March Report

Published On: April 26, 2019 at 9:00 am

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ARLA Propertymark has issued its March Private Rented Sector (PRS) report, showing an increase in rental stock availability.

Rental stock supply and tenant demand

The available supply has risen to 203 properties per member branch during March, up from 196 in February. This is the highest ARLA Propertymark has reported since records began in 2015.

The year-on-year results show that supply is up 13%, compared to 179 per branch in March 2018. The demand from prospective tenants has also seen an increase, with the number of those registering per branch rising to an average of 67, compared to 65 in February.

Rent prices

Rent rises have fallen marginally in March for tenants, with 30% of agents reporting an increase by landlords. This is compared to 34% in February.

Year-on-year, ARLA Propertymark have reported this figure to be up 30%, from 23% in March 2018:

Landlords looking to sell

The number of landlords looking to sell their buy-to-let property and exit the market in March has remained at four per branch. This is up from three per branch last year.

David Cox, ARLA Propertymark Chief Executive, said: “Whilst its really positive that the number of properties available per branch hit a record high last month, this may be the first signs of the industry consolidating ahead of the tenant fees ban as agents either sell-up or merge.

“This, coupled with landlords exiting the market and rent costs continuing to rise, means the overall picture is far from positive for renters.

“The full effects of the tenant fees ban have not yet been felt, and now the Government is introducing yet more new legislation which will deter new landlords from entering the market, such as abolishing Section 21.

Seaward Electronic Call for Mandatory Electrical Appliance Testing by Landlords

Published On: April 26, 2019 at 8:08 am

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Landlords may see tough new rules enforced to keep private tenants safe, as part of a campaign by UK electrical safety testing expert Seaward Electronic.

This campaign was also backed by Easington MP Grahame Morris. The MP has sponsored an Early Day Motion that calls for this topic to be discussed in parliament.

Policy makers have been urged to change the law to require landlords to carry out regular electrical testing in their rental properties.

MP Grahame Morris said: “Seaward’s successful campaign, which has been instrumental in changing Government policy, will help to save lives – as well as save families the hardship and pain caused by domestic fires.”

However, Morris believes that there is still further to go for the Government to ensure the legislation is implemented as quickly as possible.

Seaward Electronic also believes that the rules need to be taken further so as to include portable electrical appliances as well as fixed installations.

Various measures have been announced by Housing Minister Heather Wheeler MP that should bring England’s policy in line with Scotland’s.

  • Landlords will be required to undertake five-year safety checks
  • New guidance will be published to set out minimum levels of competency and qualifications for inspectors

Andrew Upton, Managing Director of Seaward, said: “The new rules are an encouraging step in the right direction and I’m pleased the Government is taking the safety of tenants seriously.

“However, it’s disappointing to see that electrical appliances aren’t included in the legislation this time – and we will continue campaigning to ensure this happens.  

“I am also keen to see the outcome of the social housing green paper consultation and hope to see similar rules introduced for those tenants.”

He went on to explain that quick and simple measures, such as portable appliance testing (PAT) can highlight a problem that tenants or landlords may not be aware of. For example, it could bring attention to simple wear and tear and appliances that don’t meet UK safety standards.

According to Government statistics for 2017-18, faulty electrical appliances were the second largest cause of fires in the UK. However, despite this data, there are no legal requirements in place for landlords to regularly test portable electrical appliances included in rental properties.

Grahame Morris added: “I welcome the Minister’s announcement; however, we need a clear commitment on when the new legislation will be brought forward and assurances that any phasing of new electrical safety standards will not be prolonged and leave vulnerable families in dangerous sub-standard housing.

“The Government should adopt a standard that all homes should be safe homes and while I welcome the introduction of electrical safety checks within the private rented sector, the same standard should also cover social housing.

“I will be asking Ministers these questions in the weeks ahead, but today we should acknowledge the achievement of the electrical safety campaign run by Seaward.”

Automated Processes, not Jobs, says Lettings Payment Platform PayProp

Published On: April 25, 2019 at 9:36 am

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Recent research by the Government suggests that 1.5 million jobs in England are at risk of becoming automated. PayProp, the lettings payment platform, has responded to this data.

It believes that, rather than cutting jobs, automated processes should be the focus. Employees should have the opportunity to get away from the repetitive admin tasks, and balance their work lifestyle with those that involve interacting with people.

Research from the Office for National Statistics (ONS)

The ONS has analysed the jobs of 20 million people. It has estimated that 7.4% of these are at high risk of becoming automated. However, it has been highlighted that there are no estimates for the property industry. It may well be that the sector is less susceptible to job losses than other sectors such as manufacturing.

What is automation?

Automation has been defined by the ONS as the replacement of tasks done by workers through the use of technology, including computer programs, algorithms or robots.

The ONS study has revealed that the proportion of jobs at high risk of automation has actually dropped since 2011. However, the proportion of those at low and medium risk has increased.

How can automation help letting agencies?

Neil Cobbold, Chief Operating Office at PayProp, explains: “Effective automation for agents is all about putting processes in place to free up staff to do more front-end functions.

“For example, automating accountancy and payment tasks can increase accuracy and efficiency, while at the same time allowing staff to provide a more valuable output than just administration and data processing.”

Cobbold also says that by looking at information gathered from automated processes, agents can obtain a higher level of control over back-end functions and visibility of their business flows. This could lead to the production of better insights for the clients.

Cobbold said: “Implemented effectively, automating certain processes can close transparency gaps, open new doors and help agencies find new ways of doing things.”

Automating jobs is not the answer

Despite the bleak future predicted by the ONS, Cobbold has taken a more positive view on the situation

He said: “Automating certain processes should complement strategic interventions like prioritised staff development and providing the best possible customer service.

“Letting property is a people-centric business, so it remains vital that agencies have the staff in place to build long-term relationships with landlords and tenants.

“When you develop a team of dedicated property experts, PropTech can support this by freeing up capacity and allowing agents to focus on the more personal aspects of the rental process.

“Many industries will feel under threat from the prospect of automation, but if agencies find the right balance between automating key processes and continuing to provide an outstanding personal service, the lettings industry needn’t be one of them.”

Are Bed Bugs the Landlord’s or the Tenant’s Responsibility? Renting and Pest Control

Published On: April 25, 2019 at 9:09 am

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Tips from a pest control specialist

If everything goes well, the average landlord and tenant don’t have that many encounters during the course of their rental agreement. So with a pinch of luck, the tenancy period passes uneventfully.

However, a problem in a rental can quickly heat the communication, cause arguments and even prompt the sides to take legal actions against one another. One of the frequent problems for landlords and renters around the UK are the pest invasions, and bed bugs in particular.

Why bed bugs, you ask?


Because it’s very difficult to know exactly what caused the infestation in the first place. Besides, it’s not always possible to pinpoint the exact moment when the insect was introduced to the rental. Hence, you can’t just point a finger at somebody in particular and tell them to deal with it.


Who’s responsible to get rid of the bed bugs then?

We know that the answer is complex and depends on the situation. There are some general rules in place that each landlord and tenant should be aware of while engaged in renting:

The Landlord’s Responsibilities:

In general, landlords are responsible to provide livable conditions for their tenants. This also holds true throughout the lease period. Meaning that if the property needs any significant work such as renovation, for example, all costs will be payable by the homeowner.

Additionally:

  1. Homeowners are responsible for the health and well-being of those who live in close proximity to their property.
    This means that their actions (or lack thereof) have consequences and they shouldn’t endanger their neighbours in any way. So, if the rental gets infested by bed bugs, it’ll be the landlord’s responsibility to ensure that the problem doesn’t spread.
  2. If a landlord refuses to take care of the bugs even though he is accountable to do so, the tenant can notify the local council.
    In return, the council will conduct an investigation to find out what’s going on and may force the homeowner to resolve the problem. Needless to say, this isn’t a desired outcome for the homeowners.

My apartment has bed bugs, what are my rights?

Can I sue for bed bugs in my apartment?

So, to resolve the matter quickly:

If a pest infests the rental, and this is true especially for bed bugs, the landlord has to see if the infestation happened prior to the new tenant moving in. If yes, he should pay for a professional exterminator. However, if the infestation has been introduced by the new tenants, they will have to deal with the problem and pay for the costs of the treatment.

Tenant’s Responsibilities:

Upon signing the lease, each tenant agrees to take care of the property and to leave it in the best possible condition with an expected degree of wear and tear.

This said it becomes obvious that renters should deal with the occurred bed bug problem if it happened after the beginning of the tenancy.

Additionally, the tenant bears full responsibility to get rid of the bugs if he failed to notify the landlord on time. Why? Because postponing a bed bug treatment often results in them spreading all over the property and sometimes even to the neighbouring households.

It’s tricky to find out how and when the insects were brought in. A professional exterminator will have the best guess. So, if the tenant has found bed bugs, he should:

  • Double-check the lease agreement to see if there’s anything in it about pest infestations. Some agreements will have a separate clause and others will not. No matter the case, it’s always good to take a second look at the agreed terms and conditions before taking any further actions.
  • Inform the landlord about the infestation as soon as possible. The sooner it gets resolved, the better for all parties involved.

What to do if a rental is infested with bed bugs

Responsibility aside, there are two options to deal with the bugs – either with professional extermination or with DIY solutions. Both have their pros and cons which we’ll explore below:

DIY treatments

The most recommended methods are cheap in comparison to a professional service. Moreover, whoever is conducting the treatment is in control of what substances are being used inside the property. And with enough patience, persistence and thoroughness, the bed bugs can be destroyed without using a single chemical solution.

A quick Google search returns many tips on how to treat bed bugs on your own. But since the insects are extremely resilient, not all solutions are effective enough to kill the entire bug colony.

This is why it’s better to use those DIY solutions as an addition to a professional treatment. Additionally, if the person who’s about to deal with the infestation fails to do thorough research, and as a result fails with the DIY treatment, this can cause financial losses, a waste of time and effort, and potentially further spreading of the infestation.

Professional pest control

Now, a bed bug treatment done by professional exterminators is far less time-consuming. And the experts have daily encounters with the insects, which really makes them knowledgeable as to what and how to do it to achieve the best results.

However, a professional pest control procedure for bed bugs is far more expensive than a DIY solution. There are also procedures such as Heat Treatment that do not involve the use of insecticides but it is usually even more expensive than the chemical treatments against bugs.

How to prepare for a professional treatment

To get rid of the bugs once and for all, the homeowner and tenant will have to join forces and help the expert conduct the procedure in the most favourable environment.

This means that they need to:

  • Remove clutter from the rental to ensure that areas needing treatment are easily accessible;
  • Clear up closets, shelves, drawers and nightstands for the same reason;
  • Remove all bedding and wash it with hot water. Do the same with all clothes and household fabrics;
  • Vacuum all rooms thoroughly and dispose of the bag;
  • Consult with the exterminator on what to do with infested items that can’t be treated;
  • Vacate the property during the treatment and make sure there are no pets either

As a conclusion, we can safely say that no matter who is responsible for dealing with bed bug problems in a rental, constant and kind communication between all parties involved can save a lot of headaches and stress.