Written By Em

Em Morley

Rogue landlords in Hounslow fined £36,000

Published On: November 5, 2015 at 10:56 am

A pair of West London landlords who collected rent from more than 30 tenants from sub-standard homes on the same street have been fined in excess of £36,000.

Mr Palminder Singh Sanghera and Mrs Nirmal Kaur were guilty of letting the properties in Ellerdine Road, Hounslow, fall below acceptable conditions.

The couple, who reside in Walton-on-Thames in Surrey, were fined £36,340 after they accepted more than 30 offences at Feltham Magistrates Court.

Tip-off

After responding to a tip-off, Hounslow Council’s housing enforcement team visited the properties and carried out an inspection of the properties in 2014. As part of their investigation, they found dumped rubbish, faulty fire alarms, blocked fire escape and disgusting kitchen conditions.

Rogue landlords in Hounslow fined £36,000

There were 30 people found to be residing in the homes, but the couple had not obtained the necessary HMO licences. Upon sentencing, the magistrates took into account the couple’s previously good behavior, the mitigation from their barrister and the measures they had taken to sort out the breaches in legislation.

Crackdown

Councillor Steve Curran of Hounslow Council, said, ‘the council is determined to crackdown on rogue landlords. These fines are a warning to landlords of the consequences of ignoring their legal obligations relating to HMO’s.’[1]

Curran went on to say, ‘there is no justification for putting people’s lives at risk and making them live in poor conditions. That’s why raising the standards of private-rented housing and bring rogue landlords to account is a priority for this council.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/11/hounslow-hmo-landlords-fined-36-000

Housing Market Forecast for the Next Five Years

Published On: November 5, 2015 at 10:39 am

Author: Em Morley

Categories: Property News

Tags: house price growth,housing bubble,housing crisis,London property market

Whether you’re a buy-to-let investor, a homeowner or an aspiring first time buyer, it is vital that you’re aware of the goings on in the property market. In the last few years, Britain has developed a housing crisis. So what’s going to happen next?

Housing Market Forecast for the Next Five Years

JLL’s Residential Research team has published its house price forecast for the next five years. It believes that next year, property prices will rise by 5% across the UK. For the next five years, it predicts growth to average between 3-5% per year.

The JLL report states that the strength of the UK economy will help the housing market move forward. It explains: “Improved employment and wage conditions, together with a more prosperous and secure outlook, will instil greater confidence in household finances.”

It says that this will cause more people to be able to buy their first home and encourage existing homeowners to move up the property ladder.

However, it adds that affordability will have a “dampening influence” on price growth and transaction levels. It also states that the Chinese financial crisis could provide an “external threat to the otherwise steady UK economic prognosis”.

Regarding transaction levels in the UK, it claims they will increase steadily from today’s figures, reaching 1.31m by 2019. Although this is an improvement on the last few years, it is still well below the 1.67m recorded in 2006.

“Importantly, construction levels should increase, helped by Government initiatives and a resurgent house building sector,” continues the study.

Although JLL expects construction levels to rise, shortages in the sector, including a lack of labour and materials, could halt progress. However, it predicts that English housing completions will increase to 160,000 per year by 2018, a significant improvement on recent years.

Despite this expected rise in construction, JLL warns: “We continue to build insufficient housing across the UK to meet growing demand, which ultimately leads to higher house prices and a situation where fewer and fewer people can afford to own.”

It points out that the Conservative Government’s recent Housing & Planning Bill is attempting to solve the housing crisis, but “plenty more needs to be done”¹.

Additionally, the University of Lancaster has conducted research, titled the UK Housing Observatory, which states that London is on the edge of a housing bubble, which could spread out to the rest of the UK.

The report believes that a housing market bubble in London could burst in 2017.

It states: “Historical evidence suggests that phases of exuberant house prices are often followed by a sudden crash, leaving homebuyers with large mortgages and negative equity.”²

¹http://residential.jll.co.uk/en-GB/new-residential-thinking-home/research/residential-forecast-report-building-foundations-november-2015.aspx

²http://www.lancaster.ac.uk/lums/economics/research/housing/overview/

Tenants in Houseshares at Risk from Lack of Smoke Alarms

Published On: November 4, 2015 at 4:40 pm

Author: Em Morley

Categories: Property News

Tags: carbon monoxide alarms,house shares,landlord law,landlord updates,shared accommodation,smoke alarms

More than four in ten tenants in houseshares are at risk due to a lack of a working smoke alarm, according to a new study.

Tenants in Houseshares at Risk from Lack of Smoke Alarms

From 1^st October 2015, landlords or their letting agents have been required to install working smoke and carbon monoxide alarms in their properties. However, a recent survey by flat and house share website SpareRoom.co.uk found that many landlords are not aware of the regulatory change.

Find out more about the requirements here: /landlords-and-agents-must-test-smoke-alarms-on-day-of-new-tenancy/

A study of renters living in shared accommodation conducted after the rule was enforced, found that less than six in ten (57%) are sure that they have a working smoke alarm in their property.

Worryingly, one in seven (15%) said they don’t have smoke alarms in their homes at all. A further 16% have alarms but aren’t sure if they work, and 5% don’t know if there’s an alarm in their property.

However, fire safety is not just the responsibility of the landlord; the survey revealed that 7% of tenants have removed the batteries from their smoke alarm, putting themselves at risk.

The Government believes that the regulations will help prevent up to 26 deaths and 670 injuries a year, but awareness among landlords is currently too low. A separate study of landlords by SpareRoom shows that around half (49%) are not aware of the requirement.

Director of SpareRoom, Matt Hutchinson, reports: “Fitting working smoke and carbon monoxide detectors is now a legal requirement for landlords, yet half remain none the wiser.

“Professional landlords are the most likely to be clued up on this regulatory change, but the Government will have its work cut out to educate those who don’t already have working alarms in their properties, to make them aware of the new rules.

“However, fire safety isn’t just the landlord’s responsibility. The fact that 7% of tenants have taken the batteries out of their smoke alarm is a real worry. Tenants have to do their bit to keep themselves, their housemates, and the property, safe.”¹

Landlords must keep up to date with all changes affecting the private rental sector. Find all of the latest news and updates for landlords at www.34.207.192.121.

¹https://www.landlordtoday.co.uk/breaking-news/2015/11/survey-claims-sharing-tenants-at-risk-from-lack-of-smoke-alarms

Rents to grow 3%-4.5% in 5 years

Published On: November 4, 2015 at 3:28 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,rent increases,rents

An agency has moved to suggest that average rents in the UK will increase by between 3% to 4.5% during the next five years.

JLL predicts that average rents across Britain will increase by 4.5% in 2016, followed by 4% in 2017. Further predictions suggest that rents will then rise by 3.5% in 2018 and 2019, before slowing to 3% in 2020.

Growth

‘Despite believing that demand will increase and available supply will remain constrained, we anticipate only moderate positive rental growth on a national basis over the next five years,’ noted Adam Challis, head of residential research at JLL. ‘The main limiters are that tenants will move to smaller properties or to cheaper areas in order to ensure their rental costs suit their financial aspirations,’ he added.[1]

Research from the agency’s report indicates that nearly half of all 25 to 34 year olds privately rent, with this proportion likely to rise further in the next 5 years.

Rents to grow 3%-4.5% in 5 years

Tax

JLL indicates that the majority of British buy to let landlords are higher-rate tax payers and will therefore be significantly affected by the recently proposed tax changes within the sector. However, it believes that there will not be a significant exodus of landlords from the industry.

Challis warns that, ‘there may be slightly less exuberant enthusiasm from new investors, which may have a longer-term impact on rental supply.’[1]

Mr Challis also said that the big potential growth area within the sector is Build to Let. With this said, he also believes this part of the private rental sector, ‘will always be dwarfed in volume terms by private landlords.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/rents-set-to-grow-3-0-to-4-5-over-each-of-next-five-years-says-agency

House of Lords Launches Investigation into Housing Market

Published On: November 4, 2015 at 1:05 pm

Author: Em Morley

Categories: Property News

Tags: housing affordability,housing crisis,private rental sector

House of Lords Launches Investigation into Housing Market

The House of Lords has launched an “urgent” investigation into the housing market. It has requested opinions to aid its study.

The Economic Affairs Committee is running the inquiry. It will investigate the supply and affordability of housing both for rent and to buy.

It will also analyse the Stamp Duty changes and consider whether rent controls would be a good idea.

The Committee Chairman, Lord Hollick, launched the inquiry, stating: “There are clearly serious issues with the UK housing market. Across the country, young people in particular are struggling with the cost of housing, whether they are looking to buy or rent. There is an affordability crisis in housing.

“We would like to get to the bottom of the affordability crisis. Is the primary cause a lack of supply? What effects have recent Government initiatives to encourage first time buyers had? Or is there too much emphasis on owning your own home and should we be focusing efforts on ensuring adequate affordable housing is available for rent?”¹

The Committee is also seeking evidence on:

Whether Stamp Duty reforms have had an impact and if there should be further changes.
Is there a case for rent controls?
Are there any tax measures that could improve housing supply and affordability?

If you would like to give your opinion on these matters, send your written reviews by 17^th December 2015 here: http://www.parliament.uk/business/committees/committees-a-z/lords-select/economic-affairs-committee/inquiries/parliament-2015/economics-of-the-uk-housing-market/

¹http://www.propertyindustryeye.com/house-of-lords-investigation-into-housing-market-will-look-at-rent-controls/

Scottish agents opposed to upcoming legislation

Published On: November 4, 2015 at 10:25 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,legislation,Private Housing (Tenancies) (Scotland) Bill,Scotland,Scottish landlords

A collection of 56 letting agents have poured scorn on new legislation designed to alter Scotland’s private rental sector.

The agents believe that instead of reforming, the legislation will actually make it harder for landlords and letting agents to combat anti-social behaviour in their properties.

Opposition

Representing the landlords of over 16,000 properties, the agents have signed a statement stating that they are worried about the impact of the proposed Private Housing (Tenancies) (Scotland) Bill. They argue that by removing a landlord’s right to allow a tenancy to come to natural conclusion, the Bill-if enacted-will make it more difficult for them to tackle anti-social behavior.

Some of the agents have said that are aware of landlords that have encountered anti-social behaviour in their property and have been unable to make the tenant improve their conduct. As a result, the landlord allowed a tenancy agreement to come to a natural end, which allowed for the adequate notice period as outlined in the original contract.

However, landlords are concerned that in the future, neighbours who complain of anti-social behaviour would be forced to lodge an official complaint to the police. In addition, they would have to be willing to give public evidence to a tribunal before any action could be taken to remove a tenant.

In their statement, the agents said that this will no only increase the time it takes to combat the issue, many people affected will feel threatened and may not be willing to testify.

Scottish agents opposed to upcoming legislation

Powerless

The statement reads that, ‘landlords will be powerless to act unless such public complaints are made.’ John Blackwood, chief executive of the Scottish Association of Landlords, said, ‘a key complaint we have heard from our own members, as well as from those in our letting agent wing, is that the measures in the Private Housing (Tenancies) (Scotland) Bill will make it harder to tackle anti-social behavior.’[1]

‘The people often most affected by anti-social behaviour are those in vulnerable groups such as older people who could feel threatened by a neighbour. They may be less likely to publicly complain, let alone be willing to take part in what is a formal legal process. These people would in future have to suffer in silence and our landlords would be powerless to help,’ he added. [1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/agents-say-new-law-would-make-it-harder-to-control-anti-social-tenants