Written By Em

Em

Em Morley

Rise in Tenancy Deposit Claims due to Landlords not Using Deposit Protection Schemes

Published On: June 12, 2018 at 9:21 am

Author:

Categories: Tenant News

Tags: ,,

There has been a recent surge in claims being made by agents on their professional indemnity insurance in relation to tenancy deposits.

Lonsdale Insurance Brokers, specialist insurers for estate agents and lettings agents, believe that such claims are arising from landlords not putting deposits into a deposit protection scheme or providing the prescribed information for the deposit scheme.

In general, a tenant who makes such a claim, often prompted by a no win, no fee ‘ambulance chaser’ firm, will end up winning three times the amount of their deposit. When this happens, the landlord will take this claim to the letting agent, who then in turn claims on their insurance.

Law firm DAC Beachcroft has seen 25% of its claims relating to deposits not being lodged on time during the first quarter of 2018. Apparently, this figure only came to 3% over the entirety of last year.

To prevent such issues from arising, as a landlord you should make sure you are fully aware of what information needs to be provided to a tenant. If you do not, there can also be other consequences, such as the forfeit of any right to serve a Section 21 notice.

At the outset of a tenancy you must provide:

  • A gas safety certificate
  • An Energy Performance Certificate (EPC) – Remember, this now has to show an energy efficiency rating of ‘E’ or above!
  • A copy of the latest government guide: How to rent The Checklist for renting in England
  • Confirmation that the tenant’s deposit has been protected, and that the prescribed information has been provided

The best way of ensuring nothing is missed out, or that your tenant cannot claim that this is the case, is by putting together a checklist and getting all new tenants to initial each page and sign at the end, agreeing that all the relevant information has been provided. It is also important to keep a copy for your own reference.

Landlord News on Feedspot’s ‘Top 10 UK Landlord Blogs and Websites to Follow in 2018’

Published On: June 12, 2018 at 8:56 am

Author:

Categories: Landlord News

Tags:

We were happy to recently discover that Landlord News currently holds 4th place for top landlord blogs and websites in the UK on Feedspot, the online content reader.

In order to determine these rankings, Feedspot looks at the quality of a blog’s content, it’s ranking on Google, social media popularity and the traffic of visitors, amongst other factors.

It is great to be included on such a list, especially as it includes other great names in the industry, such as the Residential Landlords Association, who currently hold the top position.

We pride ourselves on supplying the latest news and advice for landlords, including trends in the property market, changes to the law and tips for building a successful buy-to-let business. Having started our blog in 2009, we have been passionately writing in order to keep all property professionals up-to-date.

In particular, one of our most popular topics this year has been the change in Minimum Energy Efficiency Standards (MEES) in April. This change means that it is now illegal for landlords to grant a new lease (even to existing tenants) on a domestic or commercial property with an EPC rating below E.

In more recent news, the Tenant Fees Bill has been the latest hot topic, creating discussion about proposed changes to the number of weeks’ rent that can be required for a tenancy deposit, along with a ban on letting fees.

Being placed as 4th on this list is a great achievement, and we will continue to find ways to make our blog bigger and better, to eventually climb even further.

As well as our articles, we also provide free guides, useful to all landlords, whether they are new to the sector, or veterans. We also send out a monthly newsletter to all who are registered, providing a monthly roundup of all the news we have reported on. You can sign up for free today on our website.

The ValPal Network Integrates with Reapit

Published On: June 12, 2018 at 8:10 am

Author:

Categories: Lettings News

Tags:

Reapit, the platform used by estate agents to run and grow their businesses, has now integrated with real estate appraiser The ValPal Network.

The integration with the appraiser from Beckenham, which now consists of over 800 agency brands with over 4,000 offices, is designed to help clients of Reapit, the CRM software provider for property professionals, to convert more online valuations into instructions.

The ValPal Network has stated that this “combined PropTech solution provides agents with a 24/7 digital service that saves administration time and allows them to effectively track conversions.”

Reapit clients can integrate with The ValPal Network in one of two ways. One option is to allow agents to process online valuation leads like portal enquiries, automatically converting leads and checking them against existing contacts. Agents would then also be able to track online valuations through to actual completions in order to get a true measure of Return on Investment (ROI).

The other option is to integrate with RPS Digital, which is Reapit’s suite of digital tools that allow agents to book and confirm valuation appointments for sales and lettings through websites and other digital tools.

Gary Barker, CEO of Reapit, says:”Our combined solutions offer a true 24/7 lead generation and conversion solution for agents.

“Agents are increasingly offering online valuation services on their websites with the aim of generating leads, so it is important that we provide our clients with an option to integrate with the online valuation sector’s leading provider.”

Craig Vile, Director of The ValPal Network, adds: “We’re delighted to be able to integrate with Reapit and offer their clients an easy way to implement a streamlined and highly effective online valuation service.”

“The option for prospective clients to be able to book market appraisals via Reapit is invaluable and is already helping scores of agents to convert more of their leads into instructions.”

House Prices Recover From April Slump but Annual Growth Slows

Published On: June 11, 2018 at 9:01 am

Author:

Categories: Property News

Tags:

Recently, the rate of annual house price growth has slowed for not only one month, but two. According to Halifax, the property market is described as being “subdued.”

Halifax’s May House Price Index has revealed that average house prices were up by 1.9% annually, slower than the 2.2% yearly growth recorded in April, to £224,439.

House prices are resuming to climb on a monthly basis, up 1.5% during May after a 3.1% decline in April.

It is possible that house prices are largely being sustained by a strong labour market, according to Russell Galley, Managing Director of Halifax who commented: “These latest price changes reflect a relatively subdued UK housing market.

“After a sharp rise in January, mortgage approvals have softened in the past three months. Both newly agreed sales and new buyer enquiries are showing signs of stabilisation having fallen in recent months.

“The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years.

“We are also seeing pay growth edging up and consumer price inflation falling, and as a result, the squeeze on real earnings has started to ease.

“With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”

Remarking on the figures, Jeremy Leaf, north London Estate Agent and a former RICS Residential Chairman, said: “At first glance, these figures look disappointing with Halifax reporting annual house price growth softening in May.

“Once again, we are seeing the rather topsy turvy pattern to the housing market – up one month, down the next. It is the same on the ground – no real pattern, with buyers and sellers negotiating hard but not always successfully.

“Looking forward, we expect more of the same and possibly slightly better as we await figures reflecting the crucial spring market period.”

Rental Growth at Five-Year Low Revealed by Landbay Rental Index

Published On: June 11, 2018 at 8:14 am

Author:

Categories: Lettings News

Tags:

Revealed by the latest Landbay Rental Index, rent in England has experienced a decrease in growth over the last five years.

Excluding London, prices have increased by 1.18% over a period of twelve months. This is the slowest annual growth since April 2013. However, despite the recent halt, rents have increased by 10.23% over the past five years according to data provided from Landbay.

This rental growth has been most prominent in the East of England, where landlords have witnessed rental prices increase by 14.67% over the corresponding period.

However, despite overall growth, rental prices have actually continued to decrease in London, with figures in May making it the seventeenth consecutive month in which prices have remained in negative territory in the city. However, over a five-year period, rents in the capital have improved by 6.88%, and, with 17 out of the 33 London Boroughs now in positive territory, indicating that rents in the city will make a recovery to positive growth in the coming months.

John Goodall, CEO and co-founder of Landbay commented: “Landlords have been faced with a number of challenges over the past two years, from stricter regulation, reductions to tax relief, and a significant stamp duty tax hike when buying a buy-to-let property.

“Some might have expected this pressure to push up rents, though low interest rates and the Bank of England’s Term Funding Scheme (TFS) have kept the cost of borrowing down and allowed landlords to shoulder some of the costs.

“With a rate rise being just around the corner, and the TFS now having ended, things could be about to change. While we are unlikely to see an immediate impact, the pace of rental growth may well speed up in the latter half of this year as landlords look to price in the changes that have been building up for some time.”

Tenant Fees Ban to be Discussed at this year’s TPO Conference

Published On: June 11, 2018 at 8:01 am

Author:

Categories: Tenant Fees Ban

Tags:

Tenancy deposit cap saves average renter more than £100

This year’s The Property Ombudsman (TPO) conference for property agents will be taking place on Wednesday 13th June, at which former Housing Minister Mark Prisk will be discussing his views on the Tenant Fees Ban.

This new ban extends from the Tenant Fees Bill, introduced into parliament on 2nd May. It focuses on the need for a cap on tenancy deposit fees and a ban on letting agent fees. The bill also aims to deal with the amount of deposit that a landlord can demand, with the intention of capping it to six weeks.

Mark Prisk, who is also a member of the Housing, Communities and Local Government Select Committee, is also expected to talk about Client Money Protection (CMP), which is speculated to become mandatory before the Tenant Fees Ban is implemented.

James Walker, founder of Resolver, the free online tool to help consumers with complaints, will also be speaking at the conference. He has stated that his session will cover how the property industry can be supported in the optimisation of its reputation, as well as encouraging better outcomes for both consumers and the industry.

Other speakers due to attend include Rob Symes, Co-Founder of The Outside View Analytics Ltd, and Richard Combellack, Head of Lettings Innovation at Rightmove. Declan Curry, journalist, speaker and conference chair, will also be speaking at the event.

There will be a number of exhibitors at the event, such as PayProp, the property management automated transactional platform, Rightmove, the UK’s leading property search website, and property industry experts Propertymark.

The conference will be held at the National Conference Centre in Solihull, bringing together agents, industry leaders and many other leading names. There will be debates on the latest issues surrounding regulatory reform and law enforcement. More information about the event can be found on the TPO website.