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Em Morley

Government cladding removal plans are causing confusion for landlords

Published On: February 2, 2022 at 12:38 pm

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Categories: Landlord News,Property News

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Property industry reacts to Chancellor Rishi Sunak’s Spring Statement

Government plans to rectify dangerous cladding are riddled with confusion and risk needless delays to addressing the problem, the National Residential Landlords Association (NRLA) warns.

In January 2022, Housing Secretary Michael Gove announced plans to force developers to pay for remedial action to tackle dangerous cladding on buildings between 11 and 18 metres high.

In the same announcement, he argued that leaseholders should not be expected to foot the bill. However, Ministers have now admitted that they have yet to decide if buy-to-let landlords will be included within the scheme.

In a parliamentary answer, the Housing Minister has confirmed that those who sublet properties because they cannot sell them due to dangerous cladding will be included in the Government’s scheme. But he also stated that a decision about extending it to buy-to-let landlords has yet to be taken.

The NRLA is warning that the Government’s plans are not treating all leaseholders equally. In the process, they also risk delaying remedial work on dangerous cladding as the Government seeks to understand who may be an accidental or buy-to-let landlord.

Ben Beadle, Chief Executive of the NRLA, comments: “It makes no sense to be treating leaseholders who are landlords so differently to owner-occupiers. Both groups have faced the same problems, and both should be treated equally. We are calling on the Government to rectify this injustice as a matter of urgency.”

The NRLA is campaigning on behalf of landlords such as Ian Davies in Cardiff.

Ian owns one rental property, a flat he purchased on the fifth floor of a six-storey building six years ago to support his pension. Since then, it has been revealed that the building is covered with flammable timber cladding panels and the whole block has compartmentation issues.

As a result, the six-monthly management fee he pays has increased from £700 to £3,000, completely outweighing his rental income.  Ian has expressed serious concerns about the lack of support for residential landlords along with the rising costs of service charges and waking watch expenses.

High demand is causing tenants to miss out on rental properties

Published On: January 31, 2022 at 10:26 am

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Categories: Lettings News,Tenant News

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High demand is causing tenants to miss out on rental properties

Tenants are struggling to find a property in the current rental market, says property portal MoveStreets.

It says high demand and a time-consuming application process are causing many to miss out. The property portal’s research found that 40% of tenants described their recent hunt for a rental home as difficult and half of them also said it took far longer than they expected before they were able to secure a property.

With demand higher than ever and stock levels failing to keep pace, tenants are having to act fast if they want to stand a chance of securing their chosen rental home, MoveStreets says. Even when they do, MoveStreets found that they are still being ‘beaten to the punch’ by other tenants.

73% of tenants found one to two properties that they classed as perfect, but these were let to someone else before they had a chance to secure them. 

For 18%, this occurred on between three to five rental properties, with 9% missing out on six or more rental properties during their search.

74% of tenants said that relaying their requirements and having to undergo the referencing process with multiple letting agents was a time-consuming process.

Adam Kamani, CEO and Co-Founder property portal of MoveStreets, comments: “The number of us reliant on the rental sector has grown steadily over the last decade and tenant demand has never been higher. As a result, the rental market has become a very competitive space where multiple tenants are fighting it out for a single property, while those who are unsuccessful are forced to go back to the drawing board.

“If you are looking to secure a rental property you really need to plan in advance and attack the process as a full-time endeavour. This can be hard, particularly if you are working or moving to a completely different area, but all too often a property that may be available in the morning will have already been let by the time you clock off in the evening.

“Being able to act fast can put you ahead of the pack and the ability to view and begin the paperwork process immediately after viewing is the best way to ensure you don’t miss out.

“Before you start your search, get a good idea of what sort of information will be required from you and create a document that you can adjust and send to each letting agent as soon as they request it.

“You can also register your interest for new rental properties, so research which letting agents are operating in your desired area and make sure you’re on their mailing list.

“Persistence is key and while it can feel like an uphill struggle at times, stay positive and proactive and you will find the right property.”

4 tips to help keep heating bills low this winter

Published On: January 28, 2022 at 9:26 am

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4 tips to help keep heating bills low this winter

To help us stay warm without the hefty price tags whilst working from home this winter, ScS has teamed up with Holly Herbert, Head of Content at webuyanyhouse.co.uk, to provide tips for keeping heating bills low.

1. Don’t heat empty space  

Holly says: “Don’t bother heating rooms that are empty, such as hallways or unused spare rooms. Instead, turn the radiators off and close the doors. Doing so can cut your bill by a third depending on how many rooms you’re not using.”

2. Fluffy flooring  

“Using matts and rugs for floors that aren’t carpeted will help heat cold floors for less than underfloor heating and make you feel warmer, so you don’t feel the need to crank up the heating,” Holly adds.

3. Window warmers  

“Thick curtains are also a great way to keep the heat in your home. Opt for those marked thermal and make sure you keep these closed to avoid drafts coming in and encouraging you to have the heating on higher, saving around 10% off your bill,” advises Holly.

4. Furniture placement   

“Make sure your bed is closer to the radiator than the window (not too close or it will trap the heat), to help you feel warmer while you sleep. Similarly, ensure your sofa isn’t too close to the radiator as this will absorb the heat and the room won’t feel the benefit. In general, keep all furniture six inches away from the radiators to allow the heat to flow around the room more efficiently, saving up to 10% on bills. Keeping sofas and chairs away from external walls will also help you feel warmer while relaxing,” says Holly.  

Dale Gillespie, Head of Acquisition at ScS, said: “Though many put off turning the heating on until temperatures drop really low, it’s surprising to see how many people leave it on for most of the day.

“We were surprised to see such a difference in behaviours across the UK with some cities preferring to heat their homes in short blasts but whacking the thermostat high where others heat on low for longer hours.

“As we’re spending more time at home, it’s amazing how big a difference a little thing like moving your sofa can help to heat up a room and reduce heating bills.”

NRLA poll reveals number of landlords hit by rent losses due to COVID

Published On: January 27, 2022 at 9:40 am

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Tenants in England paying council tax bills up to the equivalent of 37.5% of rent

A poll by YouGov for the NRLA has found that, between March 2020 and September 2021, 23% of private landlords lost rent due to the impact of COVID.

This included 11% who had negotiated rent reductions and temporary suspensions of rent payments with some of their tenants. 8% had major issues with unpaid rents with at least one tenant and 4% had experienced an increase in empty properties during this time.

Amongst those who said they had lost rental income because of the pandemic, 54% said they had lost up to a fifth of their income across their portfolio. 5% reported that they have lost more than half of their rental income.

The figures show that 36% of landlords who lost rental income as a result of the pandemic said they planned to either exit the market completely or sell a portion of their portfolio.

The NRLA argues that this is further proof of the need to help tenants get COVID related rent debts paid off to keep landlords in the market and tenants in their homes.

As the Government made funding available for councils in England to help tenants pay off Covid related rent arrears last year, the NRLA says local authorities need to ensure money reaches the pockets of affected tenants as swiftly as possible.

Ben Beadle, Chief Executive of the NRLA, comments: “Today’s (26/01/2022) figures show the extent to which landlords have been hit by the pandemic as we have been warning over the last two years. With confirmation that those most affected are more likely to leave the market, it is vital that the rent debt crisis does not worsen the rental housing supply crisis we now face.

“As a matter of urgency, councils need to make use of the money they now have to help tenants get COVID rent debts cleared. Without this, renters face a bleak future of fewer properties to rent and, ultimately, higher rents.”

Poll reveals effect of Universal Credit cut on private rental sector

Published On: January 26, 2022 at 9:18 am

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Poll reveals effect of Universal Credit cut on private rental sector

A YouGov poll of private landlords in England and Wales reveals the effects of the decision to cut Universal Credit.

In October last year, the Government cut Universal Credit by £20 a week, following a temporary increase in response to the pandemic.

Following this announcement, a YouGov poll of private landlords across England and Wales took place for the National Residential Landlords Association (NRLA).

It reveals almost one in ten private landlords renting to Universal Credit claimants have experienced at least one tenant having difficulties paying their rent due to this benefit cut.

Of those landlords who were either currently letting to a Universal Credit claimant, or who had done so last year, 9% reported having at least one tenant experiencing difficulties because of the cut.

According to official statistics, says the NRLA, of those private rented households in England and Wales receiving support through Universal Credit to pay their rent, 55% had a gap between the support they received and their rent payments.

The NRLA is warning that this will only become worse because of the Government’s decision last year to freeze in cash terms housing cost support. As a result, in the years ahead the level of benefit support available will be able to cover the rent on ever fewer numbers of properties.

The NRLA is calling on the Government to reverse its decision to freeze the Local Housing Allowance rate and ensure it properly reflects market rents.

Ben Beadle, Chief Executive of the NRLA, comments: “Benefit payments are failing to give tenants or landlords confidence that they will be able to cover rents. This basic problem lies at the heart of a broken system in desperate need of reform.

“With households facing a cost-of-living squeeze, it is vital that the benefits system gives the protection that tenants deserve. That is why the Chancellor needs to end the housing benefit freeze as a matter of urgency. Without this many tenants and landlords face an uncertain future about how to keep tenancies going.”

Government releases latest data for average UK house prices

Published On: January 25, 2022 at 12:48 pm

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Top five UK rental hotspots for landlords in 2023

The latest government House Price Index records the average UK property price as £270,708 for November 2021.

This is a 10.0% annual increase and a 1.2% monthly increase.

Iain McKenzie, CEO of The Guild of Property Professionals, comments: “The average home now costs over £270,000, and with an annual price change of 10%, it’s sobering to think that buyers are now paying £27,000 more than they did at the tail end of 2020. 

“These figures include the annual rush to snap up property ahead of Christmas and the New Year, with buyers keen to move in ahead of the holidays. 

“The one constant in the last few months of housing data is a strong, confident rise in prices, driven by the imbalance between supply and demand.

“Estate agents’ portfolios are at historic lows, with many branches having a dozen or fewer properties to sell, and there is no sign of this situation changing.

“Despite rising inflation, consumer confidence is high, and growing optimism that the Omicron wave is waning will continue to push house prices steadily higher.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Any fears that the end of the stamp duty holiday would bring about a decline in house price growth can now be well and truly put to bed. Not only has the market maintained momentum, but it’s continued to shift through the gears during what is usually a quieter period in the year.

Expect more of the same in 2022, as demand remains robust, stock remains scarce and the cost of borrowing remains very affordable.”

Marc von Grundherr, Director of Benham and Reeves, comments: “It’s extremely reassuring to see such a sustained run of positive price growth and while the government stimulus of a stamp duty reprieve helped to kick start this pandemic property market defiance, it’s now abundantly clear that the sector is standing tall on its own two feet. 

“A slight slow in pace is inevitably on the cards as the industry took a well earned break during the Christmas period, but we’ve seen strong signs already this year that this market momentum has carried on where it left off in 2021.”

Geoff Garrett, Director of Henry Dannell, says: “Despite an increase in interest rates, the cost of borrowing remains very favourable for the nation’s homebuyers and we’re yet to see this appetite dampened by the marginal jump introduced by the Bank of England towards the end of last year. 

“In fact, it’s those purchasing with the help of a mortgage who are driving the hefty rates of house price growth currently being seen, as many borrow that little bit extra to buy bigger in the wake of pandemic lockdown restrictions. Not only is the average rate of growth higher for mortgage buyers versus cash buyers, but detached homes continue to lead the pack where house price growth by property type is concerned.”

Craig Tonkin, Bective’s Head of Sales, says: “While London is still lagging behind where top line price appreciation is concerned, we’ve seen a healthy level of activity return to the capital over the last year and this looks set to continue in 2022 with foreign demand expected to drive an uplift in transactions and sold prices. 

Of course, the pandemic influence of the last 18 months remains clear with many buyers across the core market looking to the likes of Wandsworth due to the greater abundance of larger family homes. However, at the very top price thresholds of the market, the prime central heartlands of Kensington and Chelsea and Westminster remain some of the most active areas.”

The full report is available on the HM Land Registry website.