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Em Morley

HMO Landlord in Reading Fined £5,700 over Disrepair

Published On: February 25, 2016 at 3:27 pm

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A landlord and his firm have been prosecuted by Reading Borough Council and ordered to pay £5,700 by magistrates after failing to meet national safety standards regarding a House in Multiple Occupation (HMO).

HMO Landlord in Reading Fined £5,700 over Disrepair

HMO Landlord in Reading Fined £5,700 over Disrepair

The company, JV Chandler & Co Builders Ltd, and one of its directors, James Victor Chandler, based in Woodley, were prosecuted on 12th February at Reading Magistrates’ Court for failing to maintain a HMO on London Road, Reading.

Chandler and the firm pleaded guilty to nine charges, including the disrepair of a kitchen ceiling, broken doors, faulty electrical sockets, poorly maintained drains, leaking pipes, obstructed fire escapes and a damaged roof with missing slates.

The building company and director were fined a total of £2,700 and ordered to pay costs of £3,000.

The case is the latest prosecution by Reading Borough Council of rogue landlords that put their tenants’ health and safety at risk. The council warns landlords of HMOs that they must comply with the law or face severe consequences.

The Lead Councillor for Housing at Reading Borough Council, Richard Davies, states: “The private rented sector is large in Reading, and is a rapidly growing market.

“The council values the contribution made by well managed and licensed HMOs within the local housing market and will continue to monitor the occupation of these types of property to ensure they maintain a high standard of accommodation.”

He adds: “Unfortunately, there are a few who do not meet the standards their tenants have a right to expect. We take our regulatory duties for HMOs very seriously and will prosecute those who flout the law.”1

You will find all of the latest landlord law and regulations at LandlordNews.co.uk.

1 http://www.reading.gov.uk/PRLandlordFined

Right To Rent scheme slammed by peer

Published On: February 25, 2016 at 12:43 pm

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A senior Liberal Democrat peer has accused the Government of hypocrisy over the Right To Rent scheme.

Baroness Hamwee has slammed the notion of landlords or letting agents being jailed for housing an illegal immigrant. She believes that the potential presence of an illegal migrant is due to, ‘the government’s failure,’ in protecting Britain’s borders.

‘Immigration Officers’ 

Writing on the Politics Home website, the Baroness said that Right to Rent, ‘turns landlords and agents into immigration officers.’

Continuing, she criticises the Government for allowing the scheme to roll out nationally, while the pilot scheme in the West Midlands was still continuing. ‘It could hardly be said that the pilot was of adequate size, or a representative sample and that the scheme does not make discrimination all too easy,’ she noted.[1]

‘The great majority of landlords, owning one or two properties, are amateurs who let out a property to supplement pensions or top up salaries. It is these landlords who are likely to be caught out,’ Hamwee added.[1]

Right To Rent scheme slammed by peers

Right To Rent scheme slammed by peers

Discrimination

However, Baroness Hamwee believes it is not only migrants that could be discriminated against through this legislation. She feels that, ‘the 12 million Britons who do not have a passport will find it difficult to prove their right to live in their own country, like all the non-British residents who have a legitimate right to be here but whose documentation is not easily identified.’[1]

‘It is likely that the extra administration costs (created by a government keen on deregulation) will be passed on to tenants. The government’s own estimates indicate that this will amount to an extra cost to tenants of £17.9m over 10 years,’ Hamwee concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/right-to-rent-peer-accuses-government-of-hypocrisy-over-migrant-checks

 

Generation Rent Launches List of Letting Agent Fees in London

Published On: February 25, 2016 at 12:23 pm

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Tenant lobby group Generation Rent has created a new website to help London tenants find the best letting agent in their area.

The organisation has researched letting agent fees in the London boroughs of Croydon, Ealing, Tower Hamlets and Waltham Forest. It hopes that by publishing the fees, tenants will save themselves potentially hundreds of pounds, and letting agents may bring their costs down.

Generation Rent Launches List of Letting Agent Fees in London

Generation Rent Launches List of Letting Agent Fees in London

The list of local letting agents in these areas and the fees they charge to tenants can be found here: http://lettingfees.co.uk

Since May 2015, letting agents have been required to publish details of the fees they charge to tenants and landlords on their website and in a prominent position in each branch.

Generation Rent has revealed that about one in four have not complied with this law and has reported them to their local councils to investigate.

Using volunteers, the body has been able to compile a comprehensive list of the typical fees from local letting agents.

Waltham Forest Renters was the first group to help Generation Rent, by investigating fees in the area in June. In the northeast borough, rents have increased by a third in the last two years and demand appears to have encouraged agents to charge the highest average tenant fee for the typical two-person household (out of the four boroughs) at £489.

Ealing was the cheapest on average, at £374.

Tower Hamlets has both the most expensive letting agent and the cheapest. The priciest, Skampi, charges £900 per couple, while Tabiner imposes a cost of just £40.

As competition for rental properties is very fierce, it can sometimes be impossible to choose a letting agent. However, Generation Rent hopes that by releasing this information, tenants will be able to avoid the rogues.

And the Government believes that this transparency will bring letting agent fees down. If it does, Generation Rent will update the figures on its site. Tenants can also report an incorrect fee.

Meanwhile, the group is working alongside volunteers in 13 other local council areas in England and the site is set to be updated soon. If you wish to research letting agent fees in your own area, you can register on the website here: http://lettingfees.co.uk/explore/

Supply of rental accommodation slips further

Published On: February 25, 2016 at 11:51 am

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A worrying new investigation by the Association of Residential Letting Agents suggests that the supply of rental accommodation is at its lowest level since records began.

What’s more, demand for accommodation was up slightly in January.

Decline

Supply of rental accommodation slips further

Supply of rental accommodation slips further

After months of steady decline, January saw the number of properties registered per letting agent branch slip by 5%. The total currently stands at 172 properties, down by 10 on December 2015.

However, renters north of the border have much more choice, with 280 properties registered per member branch in Scotland. In London however, demand for property is being driven up by lack of supply, with just 116 properties available per registered branch.

Rising demand

Demand for rental property rose in January, following a lull in December. One average, 31 would-be tenants registered per member branch during the last month. This is still lower than in January 2015, when 38 tenants were registered per branch.

Growing demand was underlined by the number of agents reporting rent hikes in January. 30% reported a rise in rental values, the largest since September 2015.

‘Supply of housing continues to be a problem and tenants bear the brunt of this with more people competing for properties at higher prices,’ noted David Cox, managing director of ARLA. ‘The majority of tenants find that it is impossible to save very much at the end of the month to put towards buying their own home. Our recent Cost of Renting report found that a fifth of those renting in the UK do not expect to ever be able to afford to buy a home and unless we act soon to build more properties, this number will only get higher,’ he continued.[1]

Reforms

The upcoming stamp duty changes on buy-to-let and second residential homes is causing concern in the sector. 63% of ARLA members believe the Chancellor’s reforms will drive landlords out of the market. This in turn will lesson supply still further, with 58% of ARLA members believing that reforms will also push up rental costs.

Mr Cox went on to say, ‘a few weeks into the new-year and the April deadline for the stamp duty surcharge is looming and interest from buyers looking to invest in buy-to-let properties and beat the deadline is ramping up. The final details of the new tax will be revealed at the Budget in March but we are not expecting to see the Government back down on this policy.’[1]

‘The findings from our members echo our concerns that efforts to penalise buy-to-let will ultimately impact those entering and currently in the rental market, as by increasing rents landlords will seek to recoup their costs. Rent costs are already rising exponentially and tenants are feeling the strain of a crowded marketplace. We just need more houses; it’s a simple as that,’ he concluded. [1]

[1] http://www.propertyreporter.co.uk/landlords/where-have-all-the-rental-properties-gone.html

 

 

Tenants prefer short-term lease agreements

Published On: February 25, 2016 at 10:13 am

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New research has revealed that nearly four out of five tenants would like a rental lease that lasts between six months and two years.

Further data from the report by online letting agent PropertyLetByUs.com shows just one in five tenants preferred leases of between two and five years.

Just over half of tenants said that they hoped to move further up the rental ladder when they could afford to do so.

Homely

The survey found that the majority of tenants want their rental accommodation to feel like home, even if they are letting for a short period. 60% of tenants said they would like to redecorate their property and over 50% said they wanted to alter the carpets or flooring.

23% of tenants expressed their desire to install decking, 18% wanted to install a hot water tub and 13% wished for a patio.

‘Clearly tenants don’t want long leases,’ observed Jane Morris, Managing Director of PropertyLetByUs. ‘For many, longer than two years does not give them the freedom and flexibility they need. They may find a job, then move on to another one, start out living with friends and then want to move in with a partner. However, landlords like longer leases-they get charged fees each time their agent needs to find new tenants. Landlords can save money by using an online lettings agent instead of a high street lettings agent.’[1]

Tenants prefer short-term lease agreements

Tenants prefer short-term lease agreements

Aspirations

Morris said that her company’s research, ‘shows that many tenants do aspire to owning their own home and a large proportion of them want to redecorate their rental accommodation.’ She feels, ‘this can cause a major headache for landlords, with many facing redecorated properties at the back end of the lease, with no prior approval secured by the tenant. The latest Tenant Deposit Scheme report shows that redecoration is a major cause of dispute, taking 32% of the share.’[1]

‘We have seen properties with walls painted in bright colours, despite landlords specifying that the décor must be a neutral and standard lettings property colours, from off-whites and beige to magnolia,’ she continued. ‘One tenant decided to decorate the whole house black and white; removed all the carpets/lino downstairs and upstairs; and painted all the floors/ceilings/kitchen/bathroom tiles in a beautiful shade of black! She did keep the walls white. Another tenant chose a dark burgundy for all the walls, throughout the property.’[1]

Inspections

Concluding, Morris said, ‘even when a tenant repaints in the correct or authorised colour scheme, there are still problems. We have seen instances of bad paint application, patchy walls, paint spills on carpets, curtains, fixtures and fittings, all of which the tenants will be responsible for at the end of the tenancy.’[1]

She stresses that, ‘it is vital that landlords carry out mid-term property inspections and ensure the inventory and check-in stipulates the colour and quality of the decoration. If tenants do want to decorate, they should be given colour swatches to choose from and clear instructions on what can be painted and how.’[1]

[1] http://www.propertyreporter.co.uk/landlords/majority-of-tenants-want-short-term-leases.html

 

London Tenants Campaign Against No DSS Discrimination

Published On: February 25, 2016 at 9:51 am

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This Saturday, London tenants are set to campaign against landlords and letting agents discriminating against renters on housing benefit.

The Yes DSS campaign, led by private tenant group Digs, demands that landlords and agents end the No DSS policies that prevent renters from accessing private rental housing.

These policies, which are becoming increasingly common across London, indicate that the landlord will not accept tenants in receipt of housing benefit.

Digs contacted 50 letting agents in Hackney, finding that just one property – a one-bedroom studio flat in the north of the borough – was available to tenants who claim housing benefit.

The amount of working individuals claiming benefits to cover their rent has doubled in the past five years, according to data from the House of Commons.

When the coalition government introduced housing benefit caps, it justified the move by insisting that it would encourage landlords to bring down high rents. However, Digs has found that rent prices in the capital have spiralled way above inflation and median earnings.

London Tenants Campaign Against No DSS Discrimination

London Tenants Campaign Against No DSS Discrimination

On Saturday, tenants and campaigners will target a series of letting agents in Hackney who refuse to let to people on housing benefit. The demonstration will begin outside Hackney Town Hall.

They will publicly announce the agents that impose a standard No DSS policy.

The Yes DSS campaign calls for:

  • An end to No DSS discrimination against tenants on housing benefit.
  • A pledge from letting agents to only market rental properties that would accept tenants on housing benefit.

Heather Kennedy, of Digs, explains the cause for the campaign: “Where in the landlord rule book does it say that carers, disabled people, single parents or people on low incomes make bad tenants? These are just some of the groups of people discriminated against when agents, landlords and mortgage lenders say No DSS.

“Where are all these people expected to live? With homeownership far beyond the reach of normal people and no access to social housing, the private rented sector is the only housing option more and more of us have open to us. And yet people are being denied their last chance of finding a home, because landlords and agents, with increasing power to discriminate, unfairly tarnish everyone claiming benefits as undesirable.”

She insists: “We will no longer tolerate this kind of naked discrimination in our community from agents and landlords making huge amounts of money from people just desperate to find somewhere to live.”1

Eva, a mum of one and member of Digs, explains what the campaign means to her: “My son was 16-months-old when we moved into our rented flat. When we got our eviction notice, he was almost six. I was dreading the day the eviction notice came through the door.

“Even though I have been a model tenant, I have paid my rent without fail every month, I have maintained the property, I knew how rents in the area had shot up and I knew my landlord would be looking to make more money from the property than I could afford to pay.

“I started looking for another flat in walking distance of my son’s school. I work full-time and was able to find a couple of flats in my price range. But when I told the letting agent I claim a small amount of housing benefit each month because my wages don’t cover my rent, each and every one of them turned me away, saying they don’t take people on DSS.”1

If you are a landlord that accepts tenants on housing benefit, be aware that the new welfare system, Universal Credit, is being rolled out across the country. We are keeping you up to date with the latest areas subject to the change, to ensure that you stay informed about changes to your tenants’ financial circumstances. The most recent rollout areas can be found here: /yet-more-tenants-move-onto-universal-credit/

For a useful guide to letting to tenants on housing benefit, visit: https://justlandlords.co.uk/news/a-guide-to-letting-to-dss-tenants/

If you do decide to let your rental property to a tenant in receipt of housing benefit, remember to communicate often and effectively with them about their finances and consider rent guarantee insurance, which protects your rental income. 

1 https://www.landlordtoday.co.uk/breaking-news/2016/2/renters-demand-landlords-end-no-dss-discrimination