Written By Em

Em Morley

Students in Scotland told to reclaim their tenancy deposits

Published On: May 17, 2017 at 3:18 pm

Tags: landlords,Scottish students,students in Scotland,tenancy deposits

With the end of the academic year fast approaching, student tenants are being urged to remember to reclaim their tenancy deposit, once their agreement comes to its conclusion.

New research from SafeDeposits Scotland reveals that many students north of the border prove surprisingly forgetful!

Unclaimed Deposits

At present, there are 188 tenancy deposits remaining unclaimed by students enrolled at Scottish colleges and universities. These collectively total almost £62,000.

The research was carried out by looking at all tenants who have a university email address registered against their name on the deposit account. It reveals that St Andrews University was the largest contributor to the amount currently outstanding.

103 of the as yet unclaimed deposits came from students at the oldest university in Scotland- with tenants out of pocket by an average of £406 each.

Students in Scotland told to reclaim their tenancy deposit

Fair Deal

Victoria Nixon, operations manager at SafeDeposits Scotland, observed: ‘It’s interesting to see the disparity in rates of deposits left unclaimed by students across the country and the reasons behind it may be complex and varied.’[1]

‘Some people may simply forget, some might think they won’t get it back, and others might think it’s an inconvenience. But in reality; the process is straightforward and should disputes over deductions arise, an independent adjudicator will work to find an amicable resolution for all parties,’ Nixon continued.[1]

Concluding, she said: ‘Tenancy deposit schemes like SafeDeposits Scotland were introduced to help tenants and landlords get a fair deal at the end of a lease agreement and claiming your deposit is straightforward.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/student-renters-urged-to-reclaim-tenancy-deposits

Landlords reminded to comply with Rent Smart Wales

Published On: May 17, 2017 at 9:52 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,Rent Smart Wales,Wales

Landlords and letting agents across Britain with rental properties in Wales have once again been reminded on their legal responsibilities regarding Rent Smart Wales.

Many investors have been warned that they could be unwillingly breaking the law due to non-compliance with these rules.

Rent Smart Wales

Powers of enforcement are now active for Rent Smart Wales. This legislation came into force last year as part of the Housing Act (Wales) 2014 and requires all landlords with properties in the country to register both themselves and their accommodation.

What’s more, self-managing landlords and agents must obtain a licence after the completion of a training course and after having passed a fit and proper person assessment.

As the powers are now active, all landlords that are not compliant face a number of sanctions, including fixed-penalty notices, rent repayment orders and even prosecution. Landlords could also not be able to obtain possession of their property using a Section 21, should they be found to be operating outside of the law.

A register is now available on the Rent Smart Wales website, which allows tenants and the public to check if landlords and agents are breaking the law.

Once landlord is registered, this licence lasts for 5 years.

Landlords reminded to comply with Rent Smart Wales

Better Place

Bethan Jones, Operational Manager of Rent Smart Wales, stated: ‘I would urge any landlords or agents with properties in Wales and who have not yet registered or become licensed, to contact us immediately to avoid legal action. We are still keen to assist those who willingly want to comply.’[1]

‘We’ve worked closely with industry experts to develop the Rent Smart Wales scheme, which we firmly believe will help make the private rental sector in Wales a better place for tenants, landlords and agents,’ she added.[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-could-you-be-breaking-the-law-after-recent-changes.html

Government facing legal action over Right-to-Rent

Published On: May 17, 2017 at 8:54 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,immigration checks,landlords,rental market,Right to Rent

The Government is now facing a legal challenge over the controversial Right-to-Rent scheme, which permits buy-to-let landlords to check the immigration status of would-be tenants.

Introduced in February 2016 across England, while Prime Minister Theresa May was Home Secretary, the scheme has seen landlords forced to check legal documents of possible renters before allowing them to rent their property. This is to ensure their tenants are legally allowed to rent in the UK.

Struggles

However, these checks have less foreign nationals (and Britons) without a passport struggling to rent, according to a new survey.

This report by the Joint Council for the Welfare of Immigrants (JCWI) claims that many would-be renters from ethnic minorities are being discriminated against in the rental market. This, the investigation claims, is a direct result of the Right-to-Rent scheme, designed to clamp down on regular immigration.

Government facing legal action over Right-to-Rent

51% of landlords questioned said that the scheme would make them less likely to think about letting to foreign nationals. 42% of landlords stated they were less likely to rent to someone without a UK passport.

Mystery Shopping

A real cause for concern was highlighted through an enquiry from a British Black Minority Ethnic tenant without a passport. This tenant was turned down by 58% of landlords during a mystery shopping exercise, following the introduction of the Right-to-Rent scheme.

Existing legislation states that landlords who fail to check a potential tenant’s immigration status will face fines of up to £3,000 per tenant, with a maximum five years behind bars.

Yesterday, the JCWI wrote to the Home Office in order to call for a stop to the rollout of the scheme and for a reassessment of its effects.

Saira Grant, chief executive of the JCWI, stated: ‘In the face of clear evidence of discrimination under Right to Rent, the government must show it is not acting illegally before it presses ahead with a rollout to the rest of the UK.’[1]

‘This is a scheme that not only discriminates against BME Britons, foreign nationals and British nationals without passports- it imposes costs on landlords, agents and tenants too. In the absence of any clear plan to monitor its effects the Government must carry out a thorough review-until then, any extension to other parts of the UK would be premature, dangerous and potentially illegal,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/government-threatened-with-legal-challenge-over-landlord-immigration-checks

Many tenants living in slum-like conditions: Shelter

Published On: May 16, 2017 at 11:19 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,Shelter,tenants

An extremely concerning new report conducted from housing charity Shelter has revealed that hundreds of tenants are living in slum-like conditions.

The charity suggests that many renters are being plagued by damp, mould, infestations and electrical faults within their rental accommodation.

Concerns

In order to compile the report, Shelter, alongside You Gov, took statements from 300 tenants across large urban regions.

31% of these tenants expressed their concerns over damp and mould. 16% said that they had faulty electricity within their rental property.

One particular respondent claimed that the damp in his accommodation caused damage to his clothing.

He said: ‘I have been living in awful conditions in this flat. There’s a lot of mould on the walls and all over the furniture. I’ve had to throw away my clothes and go to the doctors because I’ve been ill with chest infections from breathing in the mould.’[1]

Many tenants living in slum-like conditions: Shelter

Damp Issues

It is imperative for landlords and tenants like to be aware of the risks that damp brings. There are a number of residential damp elimination and preventative measures that can be taken in order to eliminate these risks.

Stuart Cavanagh, Head of HR at Novus Property Solutions, believes tenants should become more informed on the dangers of damp and how to protect their rental properties.

Mr Cavanagh, addressing tenants, said: ‘The majority of renters are fortunate enough to have helpful, professional landlords who will see to complaints immediately. These are principles, however, that not all landlords work by. In such cases, it sadly falls onto the tenant to make better preparations and understand how to protect the property. In the long-run, being better informed will not only help you appeal to your landlord, it will also prepare you for future renting and dealings with landlords in general.’[1]

‘The health risks are very real, with children and those suffering respiratory ailments most susceptible – an informed approach is the best preventative measure. Know what to look for, and take action accordingly.’[1]

[1] http://www.propertyreporter.co.uk/landlords/shelter-a-third-of-uk-tenants-living-in-slum-like-conditions.html

House Prices Fall by 0.6%: ONS

Published On: May 16, 2017 at 10:18 am

Author: Em Morley

Categories: Property News

Tags: house price values,ONS,property,property prices

The most recent House Price Index from the ONS shows that average property prices in the UK slipped by 0.6% between February and March 2017.

This data seems to indicate that the general slowdown in annual growth rate seen since mid-2016 is continuing.

Property Prices

The average UK house price currently stands at £216,000- £9,000 greater than in March 2016 and £1,000 less than in February 2017.

England saw the largest growth in UK house prices, with property values increasing by 4.4% over the course of the year to March 2017. In Scotland, values edged up by 0.7% to hit £137,000.

Regionally, the East of England and the East Midlands saw the highest annual rate of growth, with prices in both locations rising by 6.7% over the period. The lowest rate of annual growth was seen in the North East, where prices fell by 0.4%.

London saw the next slowest rate of growth, with prices increasing by 1.5%.

John Goodall, CEO and Co-Founder of Landbay observed: ‘While it may look as though house price growth is beginning to slow down, affordability remains a key concern for many aspiring homeowners struggling to get a foot on the ladder. Furthermore, rising inflation and recent warnings from the Bank of England that a year of falling wages lies ahead means we’re unlikely to see any immediate relief.’[1]

‘Now more than ever, the private rented sector will be relied upon to support those unwilling or unable to buy a house outright. As the General Election draws closer, we hope to see some ironclad commitments on house building from policy makers. Encouraging institutional investment in large scale developments, specifically designed to rent rather than buy, will help to control house price growth while also improving living standards for those relying on a well-served buy-to-let market,’ he added.[1]

House Prices Fall by 0.6%: ONS

‘Flat and Stagnant’

Andy Sommerville, Director at Search Acumen, noted: ‘Today’s figures show that UK house prices are continuing to slow, falling from 5.6% growth in February to 4.1% in March. This trajectory is no doubt reflective of the wider sentiment of the UK housing market, with the industry remaining flat and stagnant in the face of ongoing uncertainty.’[1]

Mark Harris, chief executive of SPF Private Clients, highlights last year’s rush to beat the Stamp Duty deadine as a reason for the slowdown:

‘The housing market in March was bound to be quieter compared with a year ago because back then investors and second homeowners were rushing to purchase in order to beat the stamp duty hike at the beginning of April. This year there is no such impetus to focus the mind, with the market ticking along as usual.’[1]

‘The impending general election is having little impact on the market, apart from the upper end where there may be people just waiting for the sake of three or four weeks before making a decision.’[1]

[1] http://www.propertyreporter.co.uk/property/ons-house-prices-down-06.html

Rents carry on rising as supply falls

Published On: May 16, 2017 at 9:10 am

Author: Em Morley

Categories: Landlord News

Tags: property,property supply,rental values,rents

The number of new properties coming onto the market was down again during April, according to the most recent RICS Residential Market Survey.

This marked the fourth consecutive month of lower supply, which is subsequently putting severe pressure on rental values across Britain.

What’s more, tenant demand was also slightly down in the first three months of 2017.

Stock

A lack of housing stock continues to be a real challenge for the sector. Simon Rubinsohn, RICS chief economist, feels tax changes are having a material effect on transaction levels, especially at the top end of the market.

Mr Rubisohn said: ‘It is noticeable in the April report that the amount of new rental instructions coming through to agents is continuing to edge lower which is not altogether surprising given the changing landscape for buy-to-let investors.’[1]

Rents carry on rising as supply falls

‘One consequence of this is that rents are expected to continue rising not just in the near term but also further out and at a faster pace than house prices,’ he continued.[1]

In addition, the figures seen in the report revealed that buyer interest, alongside the volume of property sales, continued to drop. This suggests that volume of homes being listed to let is not likely to increase at anytime in the near future.

Stephen Wasserman, managing director of West One Loans, observed: ‘There is a persistent supply and demand issue in the UK’s housing market and this is creating an increasingly competitive environment.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/rents-are-expected-to-continue-rising-as-supply-falls