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Em Morley

Tenant Fees Ban Due for Introduction in Wales in September

Published On: April 10, 2019 at 8:56 am

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Categories: Law News,Tenant Fees Ban

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The tenant fees ban is due for introduction in Wales in September, subject to the new law receiving royal assent.

The ban on charging fees by landlords and letting agents to tenants in Wales will be introduced on 1stSeptember 2019.

From this date, landlords and agents will no longer be able to charge tenants fees to set up, renew or continue a standard occupation contract, except those explicitly permitted by the new law.

Many landlords may not yet be familiar with standard occupation contracts, but they will replaced Assured Shorthold Tenancies(ASTs) in Wales when the Renting Homes (Wales) Act 2016 is introduced – possibly later this year.

The Welsh tenant fees ban passed its final stage in Parliamenttwo weeks ago. 

The law will make it illegal for landlords and agents to charge anything other than permitted payments, which include: rent, security deposits, holding deposits, utilities, communication services, Council Tax, Green Deal charges, and default fees.

Under the tenant fees ban, holding deposits will be restricted to one week’s rent, with provisions to ensure their prompt repayment.

The law in Wales greatly reflects the Tenant Fees Billbeing introduced in England on 1stJune 2019. 

David Cox, the Chief Executive of ARLA Propertymark (the Association of Residential Letting Agents), comments: “The tenant fees ban is now an inevitability in Wales, and agents need to start preparing for a post-tenant fees world.

“The bill will receive royal assent in the coming few weeks, before being passed into law and implemented on 1st September 2019.”

Landlords and letting agents, if you let properties in Wales, you must be aware of the upcoming tenant fees ban and its implications on your lettings businesses. 

It is wise to start preparing for how you might be affected now and put processes in place for the future, when you can’t charge fees to tenants. 

The Top 10 Most Popular Parts of London for Private Tenants

Published On: April 10, 2019 at 8:00 am

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Categories: Lettings News

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Property search data from Zoopla over the past 12 months has been analysed to reveal the most popular parts of London for private tenants. 

The property portal found that Canary Wharf and the Isle of Dogs (E14 postcode) is the most popular location for private tenants looking for a home to rent in London.

The W2 postcode district, which encompasses Paddington and Bayswater, was ranked the second most searched for location for a rental property in the capital, while SE1 (South Bank, Bankside, Bermondsey and Waterloo) came third.

Battersea, where there is a number of new build to rent schemes being developed, entered the top ten, as the tenth most popular part of London for private tenants.

Top 10 most popular parts of London for tenants

  1. E14 – Canary Wharf/Isle of Dogs
  2. W2 – Paddington/Bayswater
  3. SE1 – Southwark/Lambeth
  4. N1 – Islington
  5. NW1 – Camden
  6. E1 – Whitechapel/Stepney Green
  7. SW6 – Fulham
  8. NW3 – North and East Hampstead
  9. NW6 – Kilburn/West Hampstead
  10. SW11 – Battersea

Annabel Dixon, the Spokesperson for Zoopla, says: “It’s perhaps no surprise that Canary Wharf and the Isle of Dogs has been highlighted as a popular choice for London renters. This area has long been associated with gleaming office towers, but it is now buzzing with new restaurants, bars, shops and homes, transforming it into a sought-after destination to live as well as work.”

The portal has also segmented the most popular rental searches by property type and number of bedrooms, to reveal that E14, again, topped the list for tenants seeking a one or two-bedroom apartment.

Londoners looking for larger homes to rent showed a strong preference for the capital’s outer zones, with eight of the top ten most popular areas for searches on three and four-bed houses located in the southwest and northwest.

Dixon comments: “Renters searching for larger family homes in the capital showed a clear preference for the suburbs, with Colindale, Hendon and Kingsbury the most searched locations for three and four-bedroom houses.

“These areas are ideal for young families looking for space to grow, with leafy surroundings and several well-regarded schools nearby.”

Slow Rental Growth in London Weighing Down on the Rest of the UK

Published On: April 9, 2019 at 10:00 am

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Categories: Lettings News

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The average rent price for a property in the UK rose by 0.96% in the year to March, as slow rental growth in London (0.57%) continues to weigh down on otherwise resilient increases (1.16%) in the rest of the UK, according to the latest Rental Index from Landbay.

Hotspots for rental growth over the 12 months to March included Edinburgh (5.97%), Nottingham (4.28%) and Blaenau Gwent (3.76%). The high growth areas are spread throughout the UK – of the top ten, two counties were in Scotland, three in Wales, two in the East Midlands and three in the rest of England. 

Looking at the countries individually, Scotland recorded the highest overall annual rental growth, at an average of 1.99%, while Northern Ireland saw the lowest, at just 0.63%.

However, Scotland is something of a tale of two cities, home to both the fastest and slowest growing locations. Aberdeen City and Aberdeenshire were at the bottom of the table, due to average declines of 5.59% and 4.31% respectively. Of the other eight in the bottom ten, a further location (Angus, at -0.83%) was in Scotland, while the others were in England. The slowest areas of rental growth in England were Redcar and Cleveland (-1.48%), Kensington and Chelsea (-0.54%), and Bracknell Forest (-0.24%).

In London, rental growth is picking up again slightly after last year’s slump. Overall, annual rent price growth stood at an average of 0.57% in March – in the same month of 2018, it was -0.28%. In fact, 17 of the 33 London boroughs saw declining rents last March. A year on, only three boroughs continued to fall – Kensington and Chelsea, Merton (-0.17%), and Enfield (-0.08%). The average rent in the capital is now £1,903, following cumulative rental growth of 9.32% since January 2012.

The average rent paid for a property in the UK is now £1,217 per month, or £772 when excluding London. The lowest average rent is found in Northern Ireland (£576), where rents have shown very modest long-term growth. In England, the average price is £1,248. The second most expensive region (after London) is the South East, at £1,064, while the lowest is found in the North East, at £553 – this region has recorded cumulative growth of just 2.08% since January 2012.

John Goodall, the CEO and Co-Founder of Landbay, comments: “Despite political and economic turmoil, the British property market has remained resilient. Rents are growing at a steady pace, and that growth is not restricted to specific regions or rental brackets. 

“Meanwhile, house prices in England fell for the first time in seven years in the first three months of 2019. This combination is good news for first time buyers and landlords alike. This period of uncertainty may in fact be the best time for individual certainty – do your research and see whether it’s time to take the first step onto the property ladder (or expand your portfolio).”

The Cheapest Locations to Invest in Property in England and Wales Revealed

Published On: April 9, 2019 at 9:29 am

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Categories: Landlord News

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Buying is still cheaper than renting, Revolution Brokers' research finds

If you’re looking to expand your property portfolio with a low-cost investment this year, then it’s worth considering the cheapest locations to purchase a home in England and Wales at present.

The latest data from the Office for National Statistics(ONS) reveals the cheapest locations to buy a property in England and Wales, based on the ratio of the average salary to a typical house price.

Copeland is currently the best place in England and Wales to get onto the property ladder, with an affordability ratio of 2.5 – just over three times cheaper than the national average and over 17 more affordable than the worst area, Kensington and Chelsea.

Barrow-in-Furness, Blaenau Gwent, Neath Port Talbot, Pendle, Merthyr Tydfil and Burnley are also home to an affordability ratio where property values are less than four times the average wage.

Knowsley, Derby and Hyndburn complete the top ten cheapest locations to invest in property in England and Wales.

Shepherd Ncube, the Founder and CEO of estate agent Springbok Properties, comments on the findings: “Housing affordability is a very hot topic and the consistent escalation of house prices, coupled with the slower rate of wage growth, means that, for many, the aspirations of owning their own home continues to move further out of reach.

“However, our property market is a diverse one and, amongst the many layers that form it, there are 140 pockets of affordability offering a below average house price to wage ratio.”

They continue: “Of course, wider economic factors, such as job availability, have a part to play, but, this aside, these areas offer hope to those wishing to shed the shackles of the rental sector. By doing your homework, you can uncover hidden gems of property affordability dotted all over England and Wales.”

Landlords, use this list of the cheapest locations to purchase property to influence your next investment opportunity. 

Potential Tenants Warned about Rental Fraud

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

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The National Landlords Association (NLA) is reminding potential tenants to be vigilant when looking for a new place to live, to help avoid rental fraud.

Several people who have been the target of rental fraud have contacted the organisation. Such scams trick potential tenants into paying an advance fee to rent a property – fraudsters have even used NLA branding and fake letters from NLA local representatives to add legitimacy to the scam and lure their victims into a false sense of security.

Scammers often target those who are coming to the UK from abroad and are securing property online. Typically, once money has been sent, the fake landlord becomes uncontactable, leaving the tenant defrauded.

The NLA is reissuing guidance about avoiding online rental fraud, which was drafted in conjunction with the NUS and National Crime Agency:

  • Do not send money upfront to anyone advertising online – make sure that they are genuine first and view the property if you can
  • Beware if you are asked to wire any money via a money transfer service – criminals can use details from the receipt to withdraw money from another location
  • Use Government-approved deposit protection schemes
  • Contact the organisations that the landlord claims to be associated with in order to verify their status 
  • Overseas applicants needing to secure accommodation before arriving in the UK should seek the help of their new employer or university
  • Get paperwork and proof – ask for a copy of the tenancy agreement or safety certificates to confirm that the landlord has a genuine legal connection with the property
  • Remember, if the offer seems too good to be true, then it probably is

Richard Lambert, the CEO of the NLA, says: “Rental fraud is one of the uglier aspects of private renting. Tenants, no matter where they are from, should not send payment to advertisers before they are certain it is genuine, and should contact their university, who will have a list of reputable landlords and letting agents.

“If you receive official correspondence from a landlord and are worried it might be a scam, often a good clue is that it will be written in poor English. Tenants should also remember they can check if a landlord is an NLA member or accredited by visiting www.landlords.org.uk/member-verification”

He advises: “Any tenant that falls victim to such a scam should contact the relevant authorities in their own country and alert the police in the UK via www.actionfraud.police.uk.”  

The Government has Failed to Prepare Landlords for Brexit, the RLA Warns

Published On: April 9, 2019 at 8:00 am

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Categories: Landlord News

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The Residential Landlords Association (RLA) is warning that the Government has failed to prepare landlords for the post-Brexit private rental sector.

The organisation believes that EU citizens may face problems accessing rental housing after Brexit.

Ministers have failed to issue any guidance for landlords around the implications of Brexit on the Right to Rent scheme.

Under this controversial policy, landlords are responsible for checking the immigration status of their tenants, with the prospect of prosecution if they know or have “reasonable cause to believe” that someone who does not have the right to rent in the UK is occupying their property.

With two-thirds of all EU nationals in the UK living in private rental accommodation, the RLA is worried that landlords have received no specific guidance about their status, other than sweeping statements by ministers.

Last month, a High Court judge ruled that the Right to Rent scheme breached the European Convention on Human Rights, on the basis that it led to inadvertent discrimination against non-UK nationals with the right to rent.

The RLA’s most recent research suggests that around a fifth of landlords are less likely to let to nationals from the EU or the EEA as a result of the Right to Rent scheme – a figure the RLA warns could increase post-Brexit.

David Smith, the Policy Director for the RLA, insists: “Landlords are not border police and cannot be expected to know who does and who does not have the right to live here.

“The Government needs to publish clear and practical guidance for landlords about the implications of Brexit on who they can and cannot rent to. If they do not, more landlords will become increasingly fearful about renting to non-UK nationals, with the potential of facing prosecution.”

He adds: “The result will be they will avoid renting to anyone who is not a UK national, making life difficult for EU nationals.”