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Em Morley

Additional HMO Licensing Proposed by Thurrock Borough Council

Published On: July 20, 2018 at 8:08 am

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The borough of Thurrock appears to be the next area to take on board new changes to houses in multiple occupation (HMO) licensing.

With the aim to improve the living conditions of those renting, the council plan to introduce additional licensing for private landlords with HMOs in certain areas within the borough. The idea is that this will also bring about improvements to property management arrangements and encourage landlords to deal with the behaviour of anti-social tenants.

As it currently stands, landlords must have a mandatory licence for properties occupied by five or more people from two or more households, who share a toilet, bathroom or kitchen, and the property is at least three storeys high. This is to be extended from 1st October, with the number of storeys no longer being taken into account.

Thurrock Council’s new plans will ensure that small shared houses and flat of three or four tenants are suitable for the number of occupants. Landlords will also have to pass a ‘fit and proper’ person test, in order to gain a five-year licence from the council.

Councillor Barry Johnson, portfolio holder for housing, said: “The majority of landlords act responsibly, but sadly there are those who fail to provide acceptable living conditions and don’t have adequate protection for their tenants or neighbouring homes in place. This is unacceptable and can lead to problems for both their tenants and the wider community.

“We believe everyone should have a good quality place to live and tightening the regulations around more shared houses and flats would enable us to ensure homes are safe and well managed.

“It is important to emphasise that no final decision has been made and I would encourage landlords, tenants and other residents to have their say on the proposals.”

This Additional Licensing Scheme will cover these areas of Thurrock:

  • Grays Thurrock
  • Grays Riverside
  • Little Thurrock Blackshots
  • Stifford Clays
  • West Thurrock & South Stifford
  • Ockendon
  • Belhus
  • Aveley & Uplands
  • Tilbury Riverside & Thurrock Park
  • Tilbury St Chads
  • Chadwell St Mary

A consultation has begun, asking the views of the people in relation to these plans. It started on 9th July, and will be open until 24th September. Consultation events will also be taking place between these dates, at the Civic Offices, New Road, Grays, RM17 6SL. They will occur on the following days:

  • Tuesday 17 July, from 6pm to 8pm
  • Monday 30 July, from 2pm to 4pm
  • Thursday 16 August, from 6pm to 8pm
  • Friday 31 August, from 11am to 1pm
  • Monday 10 September, from 2pm to 4pm

You can have your say by visiting thurrock.gov.uk.

Rent Prices Rising Steadily Across Great Britain

Published On: July 19, 2018 at 10:03 am

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Average rent prices are rising steadily across Great Britain, with the latest Index of Private Housing Rental Prices from the Office for National Statistics (ONS) finding that the price paid by tenants has increased by 1% in the year to June 2018, which is unchanged since April.

In England, rent prices grew by an average of 1% in the 12 months to June, while Wales experienced an average rise of 1.1%. At the same time, Scotland recorded an increase of 0.6%.

Rent prices in London dropped by 0.2% in the year to June, which is unchanged from May.

Growth in private rent prices has slowed since the end of 2015, rising by just 1% in the 12 months to June. For instance, a property that was let for £500 per month in June 2017, which experienced the average annual growth rate, would have been let for £505 in June 2018. This slowdown across Great Britain is driven mainly by a decline in London over the same period.

Excluding London, the average rent price in Great Britain increased by 1.6% in the year to June, which is unchanged since January 2018.

Focusing on the English regions, the largest annual rent price increase in June was recorded in the East Midlands (2.8%), which has dropped from 2.9% in May. This was followed by the South West (2.1%), up from 2% in May, and the East of England (1.9%), which is down from 2% in the previous month.

The lowest annual rent price rise was seen in London (-0.2%), which is unchanged from May. It was followed by the North East (0.2%), which is up from 0.1% in May.

The May 2018 Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) claims that demand for rental properties remained unchanged in May, extending a run of five consecutive reports where respondents have reported flat tenant demand. Alongside this, landlord instructions remain in decline.

Given the lack of supply, the RICS suggests that rent prices are expected to increase nationally over the year ahead. These changes can take time to feed through to the official rent price index, which reflects prices for all private rental properties, rather than just newly advertised rentals.

In contrast, ARLA Propertymark (the Association of Residential Letting Agents) reported in its Private Rented Sector Report for May 2018 that rental property supply rose to the highest level recorded for 2018 so far. In context, they continue to report a supply shortage in the market.

HMO Licencing Fees for Landlords Revised in Cheshire East

Published On: July 19, 2018 at 9:36 am

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Cheshire East has seen changes to licencing fees paid by landlords, brought about by new regulations. Landlords who let houses in multiple occupation (HMOs) will face new fees, replacing the fixed fee that used to be in place.

This fixed fee was set at £575, lasting for a period of up to five years. Now, however, there will be a scale of fees and charges in place. They will range from £430 for an initial licence for smaller HMOs, up to £760 to renew a licence for up to five years for the largest HMOs.

The fee has been revised in anticipation of government changes to legislation regarding HMOs, which will come into effect this October, allowing a closer scrutinisation of the properties by councils.

As it currently stands, the correct licence must be obtained for a HMO that has five or more occupants, living in two or more separate households, and sharing amenities such as a kitchen, bathroom or toilet. It applies to buildings that are three or more storeys.

In October, it will no longer take into consideration how many storeys s property is. Councils will also be able to enforce mandatory conditions in order for landlords to let such properties, specifically looking at the size of bedrooms in comparison to how many are sleeping in them, along with their age. There will also be rules around waste management.

If a HMO landlord does let without the appropriate licence, they could receive an unlimited fine. In the situation where they are found to have gone against these enforcements, they could receive a civil penalty of up to £30,000 and a banning order.

HMO licencing

HMO Licencing Fees for Landlords Revised in Cheshire East

Councillor Ainsley Arnold, Cheshire East Council cabinet member for housing, planning and regeneration, has said: “Poor housing can impact on a person’s mental and physical health and mandatory licencing will be key in ensuring that landlords provide good quality, safe accommodation that is well managed.

“In Cheshire East, there are an estimated 600-650 HMOs and 51 meet the current definition for a mandatory licence. However, from October, it’s estimated that around 500 will require one.

“To make sure we can respond to the significant increase in HMOs needing a licence and safeguard those living in them, we have strengthened our resources and created additional posts.

“The licence fees and charges have also been reviewed to ensure that the full cost of processing an application, which varies according to the size of the HMO, is passed to the landlord as a valid cost of operating their business.”

A two-year licence is available initially as an incentive for landlords to complete and submit their applications for the licence by 15thAugust.

Councillor Arnold said: “Unfortunately, there are a minority of irresponsible landlords who are providing unsafe and poorly managed accommodation that falls well short of the standards we expect in Cheshire East.

“By putting in place a shorter initial licence period, it will give the council greater control and improved engagement with landlords to help ensure residents are safeguarded and that other issues such as waste management can be correctly addressed.”

Government Urged to Address Housing Complaints System

Published On: July 19, 2018 at 8:56 am

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According to Ombudsman Services, a single ombudsman is fundamental to ensure that the present system for complaints regarding housing is not complicated.

The Government is being urged to simplify the system of consumer complaints in housing and property to assist the eradication of the reportedly baffling patchwork of schemes involved.

It was claimed by the Ombudsman Services that the existing redress process is too complex, confusing and ultimately failing consumers, due to the fact that nearly 40 services, charities, advice groups and trade bodies involved.

 

Chief Ombudsman Designate at Ombudsman Services, commented: “Redress in the housing sector is far too complex, with overlaps and gaps that make it virtually impossible for consumers to get complaints resolved.

“Our research shows the vast and baffling patchwork of schemes that people are faced with when they have an unresolved complaint. The current system is fragmented, complicated and ineffective. Consumers deserve better.”

 

The All-Party Parliamentary Group for Excellence in the Built Environment has recommended the creation of a New Homes Ombudsman and a single consumer portal, which would signpost consumers to multiple redress schemes.

 

Vickers added: “By following the model used in energy, where strong regulation is backed up by a single ombudsman and effective advocacy, redress in housing could be transformed for the better.

“Our research shows that the vast majority of the public support this approach.”

 

Almost seven in ten people claimed that the current system for complaining about housing was confusing.

Where are the BTL Hotspots?

Published On: July 19, 2018 at 8:03 am

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Due to 84% of private tenants being reportedly satisfied with their current accommodation, in addition to 68% being fairly satisfied according to the Government’s English Housing Survey, it is no surprise that the letting market is appearing more appealing for buy-to-let investors. The question is, where are the current BTL hotspots?

When considering rental yields, Luton and Colchester have recently been deemed the best places for buy-to-let investors in the market.

LendInvest BTL Index regularly ranks 105 postcode areas surrounding England and Wales.

Based on the combination of four metrics including capital value growth, transaction volumes, rental yield and rental price growth. The findings revealed that Luton is the top hotspot for the third time since December 2016.

Birmingham and Romford in Essex reportedly present fundamental investment opportunities for buy-to-let landlords, with rental returns marginally higher than Manchester.

Sales Director at LendInvest, Ian Boden commented: “It’d be so easy to look at the underlying data that tells us transaction volumes are down and make dire predictions about the health and wealth of the rental market.

“Instead, what our Index proves once again is that looking at one metric in the housing market is never enough. One metric on its own can’t clearly define the performance of a city’s property market.

“Each of the very top performing BTL locations this quarter is experiencing a slowdown in transactions – substantial falls in places, dips in others. But, the best places this quarter continue to outperform the competition well thanks to strong performances on other, equally important metrics like rental yield, capital gains and rental price growth.

“Data from the BTL Index, UK Finance and our own experience as a mortgage lender strongly suggests that right now a ‘buy, hold and remortgage’ strategy is some investors’ preference while the market works through a possible slowdown.”

Specifically, the top 10 buy-to-let postcodes are as follows, beginning with yield, followed by capital gain, followed by rental price growth and lastly, transaction volume growth:

Luton 3.91% 7.29% 3.70% -6.15%
Colchester 3.63% 6.33% 4.77% -6.73%
Romford 4.09% 4.99% 5.28% -7.84%
Birmingham 4.55% 5.00% 3.66% -6.46%
Manchester 5.36% 4.38% 3.71% -7.35%
Cambridge 3.26% 4.57% 4.76% -6.63%
Northampton 3.99% 6.59% 2.17% -7.36%
Bristol 3.83% 5.51% 2.75% -6.20%
Ipswich 3.42% 5.77% 2.76% -6.16%
Southend-on-Sea 3.62% 6.05% 2.53% -6.93%

Revealed as the bottom 10 buy-to-let postcodes are the following:

East Central London 2.86% -13.86% -0.20% -7.27%
Durham 4.41% -3.03% -2.81% -8.21%
Cleveland 4.23% -2.29% -0.70% -6.58%
Crewe 3.61% -2.30% 0.30% -7.45%
South West London 2.89% -0.07% -0.96% -7.94%
Sunderland 5.29% -3.18% -0.77% -6.15%
West Central London 2.61% -1.69% 0.87% -6.91%
Twickenham 3.38% 2.51% -2.32% -7.33%
Blackburn 4.69% -1.92% 0.55% -6.54%
Lancaster 3.79% 0.90% -1.52% -6.00%

Fire Safety Funding Called for to Make Safer Homes

Published On: July 18, 2018 at 9:52 am

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A Parliamentary committee has now called for funding from the Government to make fire safety improvements in privately owned residential blocks.

The Housing, Communities and Local Government Select Committee has stated in its response to the Hackitt Review into building and safety that funding should be provided by the Government. The Committee states that this is needed to replace any cladding on existing buildings that had previously been permitted, but now banned following the Grenfell Tower fire. It believes that both public and private sector landlords should have access to this funding.

The Committee also agrees with the Residential Landlords Association (RLA) on its stance that the Government should introduce a low-interest loan scheme for private sector building owners. This should hopefully ensure that remedial work is carried out swiftly where cladding is found and needs to be removed.

The RLA has argued that the Hackitt review represents a “missed opportunity” to work on bringing about improvements across all property types, not just high-rise flats. Following this, the Committee has urged the Government to “take as wide an approach as possible to the applicability and implementation of the recommendations in the Final Report.”

David Smith, Policy Director for the Residential Landlords Association, said of the report: “We welcome today’s report. Its pragmatic approach to the financing of the removal and replacement of unsafe cladding would ensure vital improvements are made quickly whilst legal debates continue about who should be responsible for replacing cladding found to be unsafe,

“We urge also the Government to take seriously the Committee’s call to take a more holistic approach to fire safety. For all the focus on high rise buildings, we need to learn from the tragedy at Grenfell to ensure the right safety regime is in place whatever size or shape of housing people live in.”