Mandatory electrical safety checks in the private rental sector will be introduced “as soon as possible”, a Government minister has confirmed.
Heather Wheeler MP, the Secretary for Housing, Communities and Local Government, insisted that the Government is “working to bring regulations on mandatory electrical safety checks in the private rented sector into force as soon as possible, subject to parliamentary approval and timetable”.
Wheeler has now announced that the Government will work with the industry to “produce guidance for landlords, setting out the skills and qualifications relevant to determining competence of those carrying out inspections”.
“We further intend to work with local authorities in England as we develop the range of sanctions available to them for non-compliance,” she added.
We will continue to keep you up to date with details of the new mandatory electrical safety checks.
At the same time, the Government was questioned over whether it will introduce a nationwide registration of private landlords and their properties in England, as in Wales, Scotland and Northern Ireland.
“The Government has no plans to introduce a system of national registration for private landlords,” Lord Bourne of Aberystwyth stated.
Lord Bourne added that the Government is committed to making the database publicly accessible, as in London, as soon as parliamentary time allows.
He also pointed out that, unlike in Scotland, Wales and Northern Ireland, local housing authorities in England are able to introduce selective licensing schemes in targeted areas to tackle specific problems. The Government has commissioned an independent review of the effectiveness of selective licensing, which is due to report in spring 2019.
Demand from new tenants in London’s private rental sector is rising at a time when the number of homes available to rent is coming down, according to new data.
The latest annual London Letting Report from Foxtons estate agent shows that the number of new prospective tenants registered per new rental property listing in 2018 increased to an average of almost nine, with close to 175,000 renters registered with the firm last year – its highest ever level.
However, the figures also reveal that the supply of available properties to let moved in the opposite direction, with the amount of homes to rent falling by 13% at the end of 2018, when compared with the same period of the previous year.
Sarah Tonkinson, the Director of Institutional PRS and Build to Rent at Foxtons, says: “We saw an increase in the number of renter registrations over the course of 2018 compared to 2017.”
As a whole, London experienced an 8% rise in tenant registrations over the year, led by growth in the Zone 2 area, which saw a 13% jump in tenant demand.
Overall, the stock of properties available to rent plummeted, with 11% fewer homes coming onto the market on an annual basis.
With demand far outstripping supply in the capital, the current state of London’s private rental sector provides a potential benefit to new and existing landlords, Foxtons points out.
Tonkinson explains: “The numbers were particularly good for Q4 [the fourth quarter of 2018], which is traditionally a slower market. That, coupled with less available stock, is good news for landlords for the start of 2019.”
With tenant demand at record levels, are you inclined to invest in London’s private rental sector? It may be a good time to expand your portfolio to locations where supply is low and demand is rising.
The number of first time buyers getting onto the housing ladder hit the highest level in 12 years in 2018, according to the latest Mortgage Trends report from UK Finance.
During 2018, 370,000 new first time buyer mortgages completed, which is 1.9% more than in the previous year. This is the highest number of first time buyer mortgages since 2006, when 402,800 completed. The £62 billion of new lending in 2018 was up by 4.9% on 2017.
In December last year, 30,900 new first time buyer mortgages completed – up by 1.6% on the same month of the previous year. This £5.2 billion of new lending was 4% higher on an annual basis.
30,000 new home mover mortgages were completed in December, which has dropped by 1.3% year-on-year. The £6.5 billion of new lending was unchanged. In 2018 in total, 367,800 new home mover mortgages completed – 1.9% fewer than in 2017. This £80 billion of new lending was also the same as in the previous year.
In December, 34,000 new homeowner remortgages completed, which is up by 9.3% on the same month of 2017. The £6.1 billion of remortgaging was 13% more on an annual basis. 476,900 new homeowner remortgages completed in 2018, some 10.8% more than in the previous year. This £85 billion of new lending was up by 13% on 2017.
5,100 new buy-to-let home purchase mortgages were completed in December, which has fallen by 5.6% on the same month of the previous year. By value, this £0.7 billion of lending dropped by 12.5% year-on-year. In 2018, 66,400 new buy-to-let home purchases completed – down by 11.5% on 2017. The £9 billion of new lending was 15% less annually.
During December, 12,400 new buy-to-let remortgages completed, which is up by 25.3% on the same month of the previous year. This £2 billion of lending was up by 25% yearly. In 2018, 169,100 new buy-to-let remortgages were completed – 11.2% more than in 2017. By value, this £27 billion was up by 11.6% year-on-year.
Number of First Time Buyers Hits 12-Year High
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Jackie Bennett, the Director of Mortgages at UK Finance, says: “The mortgage industry helped 370,000 people buy their first home in 2018, the highest number in 12 years, as competitive deals and Government schemes such as Help to Buy continue to boost the market.
“Homeowner remortgaging also saw strong growth, driven by customers locking into attractive rates, a trend we expect to continue in 2019, as more fixed rate mortgages come to an end.
“Demand for new buy-to-let purchases continues to be dampened by recent tax and regulatory changes. However, the number of buy-to-let remortgages reached a record high of almost 170,000 last year, suggesting many landlords remain committed to the market.”
Matt Andrews, the Managing Director of Mortgages at Masthaven Bank, also comments: “Despite the looming Brexit deadline, today’s figures show that first time buyers aren’t put off as the property sector increasingly becomes a buyers’ market. Thanks to a combination of Stamp Duty reliefand Government initiatives such as Help to Buy, the future is looking particularly bright for this segment of buyers. Remortgaging figures are likely to remain steady, with little threat of impending rate rises – at least for the time being, anyway.
“It is interesting to note the continued downturn of buy-to-let activity across the market. From tax alterations to regulatory updates, it seems the sector is really feeling the effects of these changes. In order to keep the market attractive to buy-to-let investors and to avoid further market uncertainty, greater incentives and lending products will be paramount.”
Shaun Church, the Director of mortgage broker Private Finance, reacts to the findings: “The first time buyer market is booming as the UK finally welcomes a new generation of homeowners. While the rest of the UK property market suffers from sluggishness, those who had dismissed the notion of homeownership as a property pipedream are suddenly finding themselves in a position to buy, as a result of more favourable economic and market conditions.
“The upfront cost of purchasing a property has been gradually eased by falling house price growth and Government initiatives such as Help to Buy and Stamp Duty exemption. Lenders are also giving first time buyers a considerable helping hand through the relaxation of lending criteria, a surge in products at higher loan-to-values and near record low mortgage rates, making mortgages both more attainable and affordable.
“It’s tempting to be swayed by headline rates and cashback deals in this ultra-competitive market, but before rushing into a mortgage, we would urge first time buyers to shop around. It’s vital to understand the total cost of a mortgage over the full-term, when all fees and costs are taken into account. This ensures borrowers secure the most competitive deal that will suit them both for today but also in the long-run. Using an independent mortgage broker is the best way of getting the full picture of the products currently on the market.”
Written by Open Doors Project Manager, Nazia Azad-Warren
When the weather warms up, it’s usually a sign for us to open up our windows and, for many of us, our cleaning supplies cabinet too! It’s that time of the year – Spring Cleaning! And if you’re a landlord or letting agent, it may also be time for your tenant’s quarterly property inspection!
As a landlord or a letting agent, it’s important to make sure that tenants are looking after your property. You want to make sure that they are keeping it clean and tidy, not damaging anything and generally keeping the property a home that someone would want to live in.
Whilst all of the above is relevant, remember that when you go and inspect your properties, you are going into someone’s home. Remember that, because that’s important.
The same way you would want a stranger to respect your house rules is probably the same way tenants would like you to respect theirs.
Having said that, tenants are a diverse bunch. They can come from a variety of backgrounds, ethnicities, faiths, they may be disabled or a mixture of all the above! You will never know the ins and outs of all the things to consider for every type of person and also, people are individuals too, so their preferences could be very different to what you imagine.
Nonetheless, it’s important to be considerate. To help you out, we’ve put together a few suggestions. Try them out!
1. Don’t assume.
Don’t assume that people with non-British accents or from ethnic minorities have difficulties with English. However, don’t assume that because someone speaks English, they can read it or that they fully understand what you’re saying. If you feel that someone is struggling to understand you then use plain language and short sentences, avoid jargon!
2. Be mindful of objects.
People have certain religious or sentimental objects that they revere. It’s important that we also respect these objects when in their homes. Objects include things like prayer mats, religious books/texts, beads etc. Tenants may also pray in their homes so ensure that you are aware of these spaces and if in doubt, just ask!
3. Cultural sensitivity is not just about race and nationality.
It’s also about knowing other types of ‘cultures’. Consider things like background, attitudes, values and disability or mental health issues.
4. Don’t patronise.
Your attitude is really important when entering someone’s home. It is never okay to talk down at tenants even if there is a disagreement. This can lead to a lot of issues in the future by causing the relationship to breakdown.
One of our Open Doors Tenant Champions stated, ‘…it’s important for someone coming in to my home to never talk down at me because of my disability. This is my home, my safe space and everyone, including my landlord needs to know that’.
5. Be respectful, friendly and polite.
Simply put, this is enough to do the trick. Remember that everyone is an individual so try and respond to individual needs.
Most of the time, visiting a tenant’s property is nothing but a formality for both landlord and tenant, but these quick tips should make the experience a little bit nicer for you and the tenant(s).
Good luck with the inspections!
On a final note, if you are a landlord or letting agent and wish to learn more about sensitivity when entering someone’s home, then why not access Tai Pawb training course ‘Connect with Respect’.
Alternatively, contact Member Relations Manager Helen Roach at helen@taipawb.org
Birmingham house prices have increased by 16% since the referendum, in June 2016
The population growth of the city centre is the second fastest in the UK, at 163%
Extensive regeneration of the inner city has been driving the demand for housing
According to the latest UK Cities House Price Index, Birmingham has had a 16% rise in house price values. The December 2018 figures show that home values have increased more in Birmingham than in any other UK city since the EU referendum of 2016.
Managing Director of Surrenden Invest, Jonathan Stephens,
says: “In
terms of the residential property market, Birmingham has some outstanding
investment prospects. The regeneration work currently taking place in the B1
postcode zone is a prime example of urban planning at its best.”
Between 2002 and 2015, Birmingham’s city centre population increased by
163%, coming in as the second highest in the country, with the exception of Liverpool.
It’s known for being the youngest major city in Europe too, with 40% of its
population aged 25 or under.
In addition to its young population, the city also offers a huge range
of museums, art galleries and theatres, as well as a range of property
developments and growth for the market. Birmingham’s most expensive apartment
sold recently in a place called Concord House, the penthouse, for £1.8 million.
Stephens continues: “This rapid population growth is
contributing greatly to the success of Birmingham’s property market, with
demand for rental accommodation shooting up hand in hand with demand for homes
to buy. And with extensive regeneration work making city centre living more and
more desirable, we expect to see this demand continue to rise for a good number
of years, particularly as the hosting of the Commonwealth Games in 2022 will
place even more emphasis on what a great city Birmingham is.”
A review by the Government of the housing health and safety rating system (HHSRS) is happening at a very pertinent time for the lettings industry, PayProp believes.
Over the last decade, the private rented sector (PRS) has grown rapidly. The UK is in desperate need of housing, but there is still the major issue of sub-standard property. The automated rental payment provider has pointed out that the review has, therefore, made it crucial for the sector to get its house in order now.
What is the HHSRS?
Brought about in 2006, the HHSRS was introduced under the Housing Act 2004. Local authorities have been provided with the means to check health and safety in residential properties. The HHSRS can be used by councils to recover any costs from landlords for repair works or order them to carry out necessary improvements.
Certain hazards can be flagged for attention by an HHSRS assessment. This includes damp, overcrowding and fire risks. These issues are ranked in categories, with a ‘category 1’ hazard representing the most dangerous.
It was in October that the Ministry of Housing, Communities and Local Government (MHCLG) announced its on-going HHSRS review.
Another factor that is under consideration is the possible need for an updated system. This HHSRS review will determine whether or not to introduce minimum standards for common health and safety problems in rental accommodation.
Sub-standard homes remain an issue in the PRS
In January, the most recent English Housing Survey (EHS) was published. It shows that the PRS has accounted for the highest proportion of non-decent homes, which sits at 25%.
The HHSRS deems a home to be ‘decent’ as long as it conforms to certain criteria, which includes meeting its minimum standard and containing no category 1 hazards.
In 2017, the EHS revealed that 14% of PRS homes had a category 1 hazard. This is down from 31% in 2008.
Neil Cobbold, chief operating officer of PayProp UK, has commented: “With the PRS accounting for the highest proportion of non-decent homes, the review of the HHSRS will be important in determining if criteria need to be tightened in order to reduce the number of sub-standard rental homes.
“It’s pleasing to see that the number of rental homes with serious hazards is declining, but that is another reason why the HHSRS needs updating.
“As newer homes enter the sector and energy efficiency continues to improve, there could be entirely different health and safety issues which now merit closer attention.”
The market has evolved since 2006
PayProp believes that the HHSRS needs to be updated. It is essential for the PRS, due to the significant change that the market has undergone, since the system was originally introduced.
The EHS shows that, in the last decade, the total of PRS households with dependent children has increased by 795,000. Meanwhile, during the same period, the number of private renters aged 35-44 has more than doubled, increasing from 13% to 28%.
Cobbold went on to say: “As well as changing demographics, which have an impact on property standards, the sector has become much larger since 2006, now accounting for around a fifth of all households.
“This means more tenants need protection from rogue landlords with increased opportunities to let sub-standard homes.
“Moreover, the introduction this year of the Homes (Fitness for Human Habitation) Act 2018 – which will give tenants the opportunity to take legal action against landlords letting hazardous homes – means that a HHSRS which reflects the current market is vital.
“This will help landlords and letting agents to meet their compliance obligations, while offering the required protection for the nation’s renters.”
