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Em Morley

Landlords are Encouraged to Make Clear They are Complying with Legal Obligations

Published On: June 8, 2018 at 10:20 am

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Categories: Law News

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Buy-to-let landlords are being urged to demonstrate that they are complying with all of their legal obligations. Landlords north of the border are being encouraged in this way when applying to the landlords register, in a move to encourage higher standards in the private rented sector.

The Chartered Institute of Housing (CIH) Scotland views a government review of landlord registration applications as a way of raising awareness of reliable landlords who do fulfil their requirements. This consultation is a result of evidence that the current application process is not robust enough to ensure that all landlords are complying with, and are aware of, all the regulations necessary.

The current registration system was set up 12 years ago, and is designed to make sure landlords meet the required standards required of letting a property.

The proposed consultation will look to review adding a requirement for the applicant to confirm that they comply with certain legal obligations. This includes statements related to the condition and energy efficiency of the property, gas, electrical and fire safety, and legal obligations relating to the tenancy and deposit.

Buy-to-let landlords are being urged to demonstrate that they are complying with all of their legal obligations.

Buy-to-let landlords are being urged to demonstrate that they are complying with all of their legal obligations.

Ashley Campbell, CIH Scotland’s policy and practice manager, said: “Reviewing the landlord registration application presents a fantastic opportunity to ensure that landlords are aware of and are complying with their legal obligations.

“Our members are very supportive of measures that will support good practice in the sector. We understand that local authorities are under pressure and that increasing fees will help them to manage the registration process.

“But it will be important to make sure that those landlords who do follow the rules don’t end up subsidising the ones who don’t.

“We need to make sure that landlords have access to the information, advice and training they need to be able to provide high quality homes and services to the 330,000 households now renting privately across Scotland.

“At the same time, we want to see robust enforcement action taken against those who put tenants in danger by refusing to meet basic standards.”

Draker Lettings’ Exclusive Landlord Film Screening Raises Money for Charity

Published On: June 8, 2018 at 9:10 am

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At the end of last month, London real estate agency Draker Lettings hosted a charity event to raise money for the Royal Marsden Cancer Charity. The company arranged an exclusive film screening of Studio 54, the documentary about the world’s most famous nightclub in New York.

Draker offered free tickets to the event at the Soho Hotel in London, raising £1,300, which all went to the aforementioned charity.

This exclusive opportunity for landlords was a unique chance for those who attended to see the film before its general release later this year.

Tim Hassell, Managing director at Draker said: “We wanted to organise a positive event and something quite special for our clients. A fun and exclusive evening with drinks, nibbles and a great film.

“The Royal Marsden does an astonishing job, making a real difference in the lives of so many people and we are absolutely delighted to offer our support and to have raised a grand total of £1,300.

“We dedicated the evening to our very special client Amy Feinberg, along with all others who have been touched by the incredible work of The Royal Marsden.”

Lydia Clark, Senior Community Fundraising Manager, The Royal Marsden Cancer Charity said: “Congratulations to Draker on a fantastic evening! We are so grateful that they chose to support The Royal Marsden Cancer Charity by hosting this wonderful event and we would like to thank everyone involved.

“The Royal Marsden Cancer Charity raises money solely to support The Royal Marsden. We ensure their nurses, doctors and research teams can provide the very best care and develop life-saving treatments used in the UK and worldwide.

“From funding state-of-the-art equipment and ground-breaking research, to creating the very best patient environments, we will never stop looking for ways to improve the lives of people affected by cancer.

“Without the help of our amazing supporters, we would not be able to continue funding all the important research and work done by The Royal Marsden.”

Draker is not alone in its achievement to raise money for charity recently, as landlord and letting expert Paul Shamplina hosted the annual ‘Rumble with the Agents’ in the same week, raising £16,000.

Are Rising Rents becoming too Disproportionate to Monthly Earnings?

Published On: June 8, 2018 at 8:18 am

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HomeLet have released its most recent Rental Index and it is showing a slight increase in rental prices. Rents have increased by 2% in May, compared to the same month last year.

Looking at UK tenancies signed in May this year, the average rent agreed was £919 per calendar month, an increase on last month’s £918.

The increase is more so prominent when looking at year on year comparisons excluding London. The Average UK rental value in April was £763pcm, an increase of 1.3% on the same month last year.

Over the last year, rents in the UK have risen in 11 out of 12 regions included in HomeLet’s research. However, 5 of these regions saw a fall in rents from April 2018 to May 2018. These regions were Greater London, Scotland, the West Midlands, the East Midlands and the South West.

A new study by the General, Municipal and Boilermakers (GMB) Union has also looked at rent rises. It has revealed that the average of monthly rents have reached £1,500 in London. Meanwhile, the rest of the country has seen an 18.2% rise in average monthly rents between 2011 and 2017.

As you might expect, the GMB union have pointed out that the average rent rise in London is disproportionate to the rest of the country, showing an increase of 26%. The union has suggested that the real issue is that those struggling with such rent increases are suffering from employers failing to recognise these changes.

GMB London regional secretary Warren Kenny has said: “If employers don’t respond with higher pay they will face staff shortages as workers, especially younger people, are priced out of the housing market. It makes little sense for these workers to spend a full week at work only to pay most of their earnings in rents. There is no alternative to higher wages to pay these higher rents, plus a step change in building homes at reasonable rents.”

Such rent increases will be welcome news to landlords, especially since the recent turmoil with changes in tax relief, stamp duty and the Tenant Fees Ban.

If rents do continue to rise, it will be interesting to see if the average of monthly wages follows suit.

Lifetime Renting: Do Long-Term Tenants Still Need to be Referenced?

Published On: June 7, 2018 at 10:12 am

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If you’re a tenant who has been reliably paying their rent for years, without missing a month, it can be frustrating to have to go through the traditional referencing process each time you move house. Furthermore, as it currently stands, tenants are usually charged for this, often an additional part of the fees they have to pay when they find a property.

A PropTech startup is questioning whether long-term lifestyle tenants should really be expected to go through the traditional renting process every time they move between rental properties.

Research by Your Move indicated that a third of all current tenants have already rented for six years or more. According to RentalStep, with this shift towards more people renting long-term, the lettings industry needs to provide a more streamlines and suitable process for renters and landlords.

Mike Georgeson, founder and chief executive of RentalStep says: “With many tenants now renting privately for 10 years or longer, they have the opportunity to build up a comprehensive rental history.

“It therefore seems logical that all this information is stored in one central place and that tenants and landlords don’t have to undertake a lengthy, admin-heavy and sometimes expensive traditional referencing process every time someone wants to move home.”

“If tenants are renting for the long-term but moving around frequently to experience different locations, there shouldn’t be a need for them to constantly resubmit the same information,” Georgeson explains.

A changing housing market means more people are 'lifetime renting'; exemplary tenants deserve a better (and cheaper) system for repetitive reference checks.

A changing housing market means more people are ‘lifetime renting’; exemplary tenants deserve a better (and cheaper) system for repetitive reference checks.

‘Lifetime renting’ tenants deserve a better system

“The cost of referencing prospective tenants is something all landlords need to consider,” says Georgeson.

“From next year, it will no longer be possible to charge tenants upfront fees and it’s widely expected that the cost of the traditional referencing process will fall to landlords.”

“As the market changes to provide a fairer deal for tenants, landlords must adapt and think about their own costs and whether it makes sense to pay a fee each time a tenant needs referencing,” he says.

“We all need to embrace the shift towards lifestyle renting and provide an easier way for tenants to move between properties, while allowing landlords to find fully referenced tenants in one place with less administration and at a fraction of the cost,” Georgeson concludes.

RentalStep launched in Spring 2017, and is taking part in the government’s Rent Recognition Challenge, which aims to develop applications that will help renters boost their credit scores.

Review of Right to Rent Policy Agreed by the High Court

Published On: June 7, 2018 at 9:10 am

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Under the Right to Rent Scheme, landlords are responsible for checking their tenants’ immigration status. This comes with the prospect of prosecution if they suspect or know that the property they are letting out is occupied by an individual who does not have the right to rent in the UK. 

This has created many difficulties for landlords, who are trying to ascertain whether or not their tenants should be in the country, essentially acting as untrained border staff. Now, the scheme will go to the High Court for a judicial review.

The Right to Rent scheme is part of the ‘hostile environment’ strategy for illegal immigrants introduced by the current Prime Minister whilst she was at the Home Office.

 Commenting on the decision for the scheme to go to court, David Smith, Policy Director for the Residential Landlords Association, commented:

“Landlords will welcome the High Court decision to allow a judicial review of the Right to Rent policy which has put them in the impossible position of acting as untrained Border Police trying to ascertain who does and who does not have the right to be in the country. This has created difficulties for many legitimate tenants as landlords are forced to play safe and only rent to those with a UK passport.

“The announcement is an important step towards overturning a policy which the government’s own inspectorate had described as having yet to demonstrate its worth.”

Campaigners have won permission to fight landlords’ immigration checks on prospective tenants

The Residential Landlords Association (RLA) advocated for an application by the Joint Council for the Welfare of Immigrants (JCWI), which was heard in the High Court yesterday. Both organisations argue that the Right to Rent policy discriminates against foreign nationals, especially those, such as the Windrush generation, who cannot easily prove their right to remain in the UK.

Research collated by the RLA, on State Intervention in the Renting Sector revealed that, as a result of the Right to Rent policy, 42% of landlords are currently less willing to rent to someone who is unable to produce a British Passport. This is due to fear of prosecution for being incorrect. Due to this, the 17% of UK residents who do not have a passport are faced with particular difficulty, and are also the group who are far more likely to be in rented accommodation.

Moreover, the research shows that nearly half of landlords, 49% to be exact, are less likely to rent to someone with limited leave to remain. In addition, 44% of landlords would only rent to those with documents familiar to them, which problematically, is likely to again mean a British passport.

Right to Rent

The government faces a challenge to its “hostile environment” policy after a campaign group wins the right to launch a high court case

According to the 2011 Census, “Of the 56.1 million usually resident population of England and Wales in, 76% (42.5 million people) held a UK passport. 7.4% (4.2 million), held only a foreign passport, of which 372,000 were Irish passports. There were 17% (9.5 million) who stated they did not hold a passport.”

Furthermore, earlier this month Oxford University’s Migration Observatory reported that:

“The foreign-born population is almost three times as likely to be in the private rental sector (41% were in this sector in the second quarter of 2017), compared to the UK-born (15%).”

National ‘End Unfair Evictions’ Campaign to Launch in June

Published On: June 7, 2018 at 8:10 am

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A new national campaign is to be launched in London, calling for the abolishment of Section 21 of the Housing Act 1988, the clause that allows unfair evictions by private landlords in England.

Generation Rent, the New Economics Foundation, community-based union ACORN and the London Renters Union are launching the campaign on 13th June at Karakusevic Carson Architects, on Clements Road in London.

High house prices and a shortage of social housing have left many house-seekers with little alternative but to rent from private landlords, resulting in a significant increase in private renters over the last 15 years. Since 2004, the proportion of households in England renting privately has doubled.

With around 11 million renters in England, the problem of unfair evictions is currently a big one. Once their fixed term contract (usually a year or six months) ends, it is often the case that they will simply be told to leave the property, powerless to fight such a decision. We are somewhat unique in this tragic situation, as most other European cities offer much longer tenancies. In Norway you can sign a three-year contract, six in Ireland, or in Germany, indefinitely if you so wished. It was in 2017 that Scotland also introduced legislation making tenancies indefinite.

It has been pointed out by campaigners that what are referred to as ‘no-fault evictions’are in fact the reason many have become homeless. The stress alone causes much insecurity and stress for millions of renters. The bad landlords out there have made the situation difficult for tenants with maintenance issues, due to fears of being evicted for complaining.

Generation Rent director Dan Wilson Craw has commented: “Renters are not just a convenient source of income – they are people who need a home. They should be guaranteed the right to a secure home and a stable life, free from the anxiety of being evicted for no justifiable reason.

“With half of people aged 18 to 35, 1 in 4 families and growing numbers of pensioners now renting privately, the time has come to abolish section 21 and give tenants more security, peace of mind and confidence to complain.”

Journalist and author Dawn Foster will be addressing the launch event, along with renters who have been made homeless through section 21 evictions and activists from new private renters’unions. A petition will be announced and a campaign video revealed, along with demonstrations and events to raise awareness in aid of this movement for renter security.