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Eviction Company Compares Tenants to Vermin in Advert

Published On: August 8, 2017 at 8:09 am

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An eviction company has caused outrage after comparing tenants to vermin in one of its advertisements.

The marketing campaign by Remove a Tenant, which targets residential property owners, features a piece of cheese below the caption: “Are your tenants pests?”

The firm offers packages to landlords and letting agents across Britain for as little as £50, and claims to have “significant expertise” in dealing with housing benefit claims.

Campaigners for tenant rights have complained that the advert on Facebook was “beyond unacceptable” and should be removed immediately.

They added that likening tenants to rodents was a “grim irony”, considering one in nine rental homes has a pest problem.

The dispute arose as a record number of tenants have been evicted from their homes in Britain, with more than 40,000 ejected in 2015, the latest figures show.

The website for Remove a Tenant, which is based in Hampton-in-Arden in Solihull, West Midlands, states: “It is often said that the law regarding tenant eviction is always on the side of the tenant. This is true to a degree and forms part of the protection against eviction.

“Tenants, regardless of circumstances, do have rights and this is why the steps taken have to be carried out correctly in order to get a successful possession.”

Housing campaigners said that the company’s advert should be taken down immediately.

The Policy Officer of housing charity Shelter, John Bibby, reacts: “It’s beyond unacceptable to see tenants being compared to rodents, and an especially grim irony when nearly one in nine private rented homes has recently had a pest problem.

“We’re amazed this advert was posted in the first place, and it should be taken down immediately. Between shelling out for colossal rents, being forced to live in flats crawling with mice or rats, and having the threat of eviction hanging over them, many renters have enough to deal with without this sort of rubbish.”

Seb Klier, the Campaigns Manager of Generation Rent, a tenant lobby group, says that comparing tenants to vermin gives an insight into the way some landlords and agents view renters.

He explains: “When trying to find a home, it’s common for renters to encounter a long list of prohibitions – no benefits claimants, no families, no pets – which not only reduces their choice on the market, but creates a negative atmosphere before anyone even moves in.

“This negativity increases in a market where a tenant who makes requests for repairs, or attempts to negotiate down proposed rent increases, is too often seen as a nuisance to be got rid of.”

He insists: “If we are serious about having a long-term, professional private rented sector in the UK, it’s vital that tenants can treat where they are living as their actual home, and not just be viewed as a temporary inconvenience to the owner of the property.”

An employee at Remove a Tenant said that a marketing company had created the adverts some time ago and the firm had not received any complaints about them.

It came as statistics last month revealed that a record number of tenants are being evicted from their homes, with more than 100 renters per day losing the roof over their heads.

The spiralling cost of renting a home and a long-running freeze on housing benefit are being blamed for the rising number of evictions.

Recently, calls were made for unregulated eviction firms to join a redress scheme.

What do you think of the controversial advert?

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Calls for greater energy efficiency regulations for Scotland

Published On: August 7, 2017 at 12:02 pm

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The Scottish Government has been urged to set a greater benchmark for the energy efficiency of private rental properties, in order to combat fuel poverty and fight climate change.

Scottish ministers have recently consulted on plans to set a minimum energy efficiency standard in the sector. This would mean that all properties in the sector would require an Energy Performance Certificate of at least D by the year 2025.

However, Labour wants to see all private rental sector properties to be brought up to an EPC rating of at least C by the same year.

Fuel Poverty

Labour highlighted figures suggesting that 33% of privately rented households were in fuel poverty during 2015.

Housing spokeswoman Pauline McNeil MSP, observed: ‘Unfortunately for many in Scotland, and particularly for those in the private rented sector, a warm home is not a reality.’

‘There already exist strict standards over the energy efficiency of homes in the social housing sector, yet there is none whatsoever for privately rented homes. It’s time to place higher obligations on private landlords to achieve this. The Scottish government’s plans to introduce minimum standards on EPC D simply don’t go far enough.’[1]

Calls for greater energy efficiency regulations for Scotland

Calls for greater energy efficiency regulations for Scotland

WWF Scotland has also backed calls for tougher standards.

Sarah Beattie-Smith, senior climate and energy policy officer at WWF Scotland, said: ‘Improving the energy efficiency of Scotland’s homes is a win-win. It creates healthier places to live, tackles fuel poverty, creates jobs and fights climate change. It makes no sense that some private renters are currently forced to waste precious cash and carbon heating the air outside their cold and leaky homes. That’s why we want the Scottish Government to take action through the forthcoming Climate Change Bill, and by introducing regulations to protect private tenants.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/greater-energy-efficiency-regulations-required-in-scotland-says-labour

 

UK property growth rate being hampered by uncertainty

Published On: August 7, 2017 at 9:58 am

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UK residential property prices rose by 0.4% in July, according to the most recent data released from the Halifax.

However, during the three-month spell between May to July, they were down by 0.2%, while annually, prices were up by just 2.1%.

Property Prices

The report shows that the average price of a property is now £219,266. While the property is still growing, it is doing so at a slower rate than many observers expected. In fact, the annual rate of growth is at its lowest since April 2013, when it stood at 2%.

Nationally, house prices in July 2017 were 10% above the peak seen in August 2007, with the average price now 42% greater than the low point seen in April 2009.

Unsurprisingly, London continues to play home to the country’s most expensive property locations on a per square meter basis. The average price per square meter in Britain has risen by an eye-watering 236% in the last 20 years, from £672 in 1997 to £2,260 in 2017.

Russell Galley, Managing Director of Halifax Community Bank, said: ‘House prices continue to remain broadly flat, as they have since the start of the year. Prices in the three months to July were marginally lower than in the preceding three months, while the annual rate of growth has edged down from 5.7% in January to 2.1% in July, the lowest rate since April 2013.

‘The rise in the employment level by 175,000 in the three months to May helped push the unemployment rate down to 4.5%, the lowest since June 1975. However, this improvement in the jobs market has not, as yet, boosted wage growth, resulting in earnings rising at a slower rate than consumer prices,’ he explained.[1]

Spending

Continuing, Mr Galley said: ‘This squeeze on spending power, together with the impact on property transactions of the stamp duty changes in 2016 now being realised, along with affordability concerns, appear to have contributed to weaker housing demand.’

‘However, a continued low mortgage rate environment, combined with an on-going shortage of properties for sale, should help continue to support house prices over the coming months.’[1]

UK property growth rate being hampered by uncertainty

UK property growth rate being hampered by uncertainty

Uncertainty

Jeremy Duncombe, director of the Legal & General Mortgage Club, suggests that the market is resilient in the face of both political and economic uncertainty driven by Brexit. However, he feels that a long-term plan to address Britain’s chronic lack of supply remains crucial.

Mr Duncombe feels that the, ‘Government and industry must come together, and soon, to make a conscious effort to resolve the housing crisis and create enough homes for our growing population, across all tenures, renters and buyers.’[1]

Russell Quirk, Chief Executive Officer of eMoov, believes the figures are positive, noting: ‘Although prices are still down on the previous quarter and price growth is likely to remain fairly subdued for the remainder of the year, they continue to be up on an annual basis and given the current seasonality an increase no matter how small is a good sign during the peak of the summer months.’[1]

[1] http://www.propertywire.com/news/uk/uk-property-prices-edge-growth-still-hit-political-economic-uncertainty/

 

Landlords are Losing Confidence in Rental Profits, Reports NLA

Published On: August 7, 2017 at 9:43 am

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Landlords are Losing Confidence in Rental Profits, Reports NLA

Landlords are Losing Confidence in Rental Profits, Reports NLA

Landlords are losing confidence in their ability to rely on steady rental profits, according to the latest report from the National Landlords Association (NLA).

The data shows that the proportion of landlords who are optimistic about their ability to rely on steady rental profits has dropped by 15% in the past two years – down from 64% in the second quarter (Q2) of 2015 to just under half (49%) in Q2 2017.

This drop in confidence coincides with the period since the announcement from the former chancellor, George Osborne, in July 2015 that mortgage interest tax relief would be removed for landlords.

However, the sentiment contrasts with actual rental profits achieved across the UK, which have remained fairly stable. Over the last few years, the average rental yield has fluctuated around the 6% mark.

Regionally, landlords in the East Midlands currently generate the highest rental yields, at 6.9%. By contrast, landlords in outer London earn the lowest yields, at 5%.

The news arrives during a time when house prices in many parts of the UK are stalling. The average property rose in value by just 0.3% in July, following recent declines in May, April and March.

The CEO of the NLA, Richard Lambert, comments on the study’s findings: “Average rental yields have remained fairly stable over the past few years, yet there is a steady increase in landlords losing confidence in their ability to make a profit from letting property.

“This perception probably exists because many will now be feeling the impact on their businesses of greater taxation and the costs of complying with regulation, which are eating away at their profits and making it harder to provide homes.”

He adds: “Like any business, the increasing value of the capital assets on your balance sheet will be of little help if you are treading the fine line between profit and loss, especially if you can’t keep up your mortgage payments in the short-term”.

Landlords, has your confidence in making solid rental profits dwindled recently?

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Landlords Invited to Take Part in RLA Survey

Published On: August 7, 2017 at 9:24 am

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Landlords Invited to Take Part in RLA Survey

Landlords Invited to Take Part in RLA Survey

Private landlords are being invited to take part in the latest quarterly RLA survey (the Residential Landlords Association), which aims to help the organisation improve conditions in the private rental sector.

Part of the RLA’s strategy to make renting better is to conduct a regular review of the private rental sector, including quarterly surveys to assess the issues affecting landlords, tenants and the overall market.

The short RLA survey will take around ten minutes to complete, and includes questions on issues relating to licensing, tenancy deposits, letting agent fees and more.

The findings will help the RLA better understand the issues affecting private landlords right now, as well as informing its future policy work. The organisation is calling for honest and precise answers to the questions, as these responses will help it campaign better on your behalf.

Involvement in the research is completely voluntary, anonymous and participants are free to withdraw at any point. All information will be kept confidential. Only anonymous aggregated data will be presented in the report.

You have until 5pm on Friday 11th August to take the survey, which can be accessed here: https://www.surveymonkey.co.uk/r/9TWSTPW

If there is a particular question that you do not want to (or cannot) answer, then you can just continue onto the next question.

If you would like more information on the RLA survey, you can contact its Research and Information Officer, Tom Simcock, at: research@rla.org.uk

Landlords are also being called upon by a production company working with BBC One to get involved in its hit TV show The Week the Landlords Moved In. Get more information and the contact details of whom you need to get in touch with, along with more details of the show, by reading our article here: /landlords-bbc-one-needs-join-show/

By joining these projects, you could help to improve the state of the private rental sector.

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UK rental prices rise in July

Published On: August 7, 2017 at 8:54 am

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The latest HomeLet Rental Index has revealed that UK rental prices returned to growth in July, for the first time in three months.

Now, the average monthly cost of a new tenancy stands at £925 per calendar month, up 1.1% from the £916pcm in the same month of last year.

Rising Rents

This rise was the first time April that the HomeLet rental index revealed a rise in rental prices, after falls of 0.3% and 0.2% seen in May and June respectively.

However, inflation in the private rental sector is still lagging the general rate of inflation, which was 2.7% in June.

In addition, the Index reveals that rents increased in 9 of the 12 regions of the UK covered by the research. Northern Ireland saw the largest rises, with an increase of 5.7% year-on-year. This was followed by Scotland, where rents rose by 3.6%.

On the other hand, London continues to lag Britain as a whole, with rents sliding by 0.6% in July, in comparison to 2016. The average monthly rent in the capital now stands at £1,564pcm.

The South East and North East also saw declines of 0.9% and 1.7% respectively.

Rental figures from the July 2017 HomeLet Rental Index were:

Region Average rent in July 2017 Average rent in June 2017 Average rent in July 2016 Monthly variation Annual variation
Northern Ireland £625 £610 £589 2.4% 5.7%
Scotland £630 £636 £607 -1.0% 3.6%
East Midlands £620 £614 £600 1.0% 3.2%
West Midlands £680 £662 £663 2.7% 2.4%
South West £823 £800 £803 2.9% 2.4%
North West £698 £688 £682 1.4% 2.3%
East of England £919 £906 £904 1.5% 1.6%
Wales £613 £608 £605 0.8% 1.3%
Yorkshire & Humberside £625 £615 £618 1.6% 1.1%
Greater London £1,564 £1,524 £1,573 2.6% -0.6%
South East £1,025 £1,015 £1,033 0.9% -0.9%
North East £526 £525 £535 0.3% -1.7%
UK £925 £908 £915 1.9% 1.1%
UK excluding Greater London £769 £757 £757 1.5% 1.6%
UK rental prices rise in July

UK rental prices rise in July


Summer Rises

Martin Totty, Chief Executive of Barbon Insurance, parent company of HomeLet, noted: ‘It’s often been the case in recent times that rents have strengthened over the summer period. It’s a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs. This year, that ‘seasonal’ factor brings some relief for landlords, who’ve endured a gradual erosion in rent prices over many months.’

‘At the same stage last year, the South East was the main driver of UK average rents. This time around it’s regions throughout the country leading the strengthening in rents. If we exclude the London region, the average UK rent for a private rental property has hit a new high of £769 a month, up 1.6% on this time last year.’

Continuing, Mr Totty said: ‘Whether the market has now found some equilibrium remains to be seen, but landlords at least will be grateful for even some short respite. Predicting where the market heads from here is very difficult given the number of competing forces impacting the sector, either already being felt or still being contemplated.’

‘We know housing stock for sale is in short supply and the Bank of England has expressed concerns about the ‘credit overhang’ and lenders’ resilience should economic activity start to slow. At the very least, these factors should not be unhelpful to the rental sector in the immediate future, encouraging landlords to stick with property owning as an asset class, with potential still to provide relatively attractive returns compared with alternative investment choices,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/rents-bounce-back-in-july-but-london-weak–homelet