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Student check-out tips to help follow government COVID-19 guidelines

Published On: July 3, 2020 at 8:25 am

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Categories: Tenant News

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With COVID-19 introducing new restrictions to the lettings industry, The Deposit Protection Service (DPS) has issued seven check-out tips to help students and landlords in England and Wales.

The DPS highlights that physical visits to properties in England and the creation of rental check-out reports are now possible as long as letting agents, inventory clerks, and contractors follow government guidelines.

Matt Trevett, Managing Director at The DPS, said: “We understand that the ongoing lockdown restrictions could create anxiety for students and their landlords at the end of tenancies.

“These guidelines, which reflect the latest rules on working in other people’s homes, should help ensure a more efficient and safer handover of the property in line with most recent Government policy.”

The organisation says that the Government’s guidance for landlords and tenants should be read by students, property owners and letting agents to make sure they are aware of the new rules in place due to COVID-19.

Below are The DPS’ seven guidelines:

1. Take date-stamped pictures for the check-out report

Taking time-stamped photographs or videos of the property’s condition on moving out helps landlords to verify the check-out report, could avoid a dispute and encourages the efficient return of deposit money. Landlords in Wales, where restrictions on house moves from occupied properties continue, should consider asking their student tenants to collect this evidence.

If the check-out didn’t take place as a result of the lockdown, keeping a clear record of what happened (and when) enables The DPS to assess each case on its merits and arrive at a fair outcome.

2. Keep contact details up-to-date and stay in touch about the check-out report

If a check-out report is possible, tenants and landlords should swap up-to-date mobile numbers so they can call, text or email each other throughout. Keep copies of all communications, especially if there is a delay or dispute because an adjudicator will want to see the steps the landlord took to reach an agreement.

3. Read the small print about cleaning 

Around 63% of landlords who enter The DPS’ Dispute Resolution Service cite cleaning amongst their reasons for a claim. During the pandemic the landlord may have to organise a full professional clean after the tenant leaves the property to minimise potential spread of the virus but, unless one took place before start of the tenancy or the tenancy agreement stipulates one is required, the tenant generally does not have to cover the cost.

4. Students and landlords cannot use deposit money to pay rent

Students should tell their landlords if they experience financial issues so that both sides can discuss options, e.g. rent deferments. Students experiencing problems paying their rent cannot ask for their deposit money to make up the shortfall or cover the final month’s rent before moving out. Landlords that have reduced a tenant’s rent cannot make a claim from the deposit to make up the payment. Landlords offering payment holidays should spell out in writing, e.g. via email to the tenant that they must pay the deferred rent once the crisis is over.

5. Use photographs to estimate repair costs

Contractors should not access a property to carry out non-urgent repairs if the tenant is self-isolating (or the property is occupied and in Wales). In these cases, the tenant can send a photograph electronically to the landlord who can pass it on to a contractor to obtain an estimate for repair work after the self-isolation/lockdown period ends.

6. Problems compiling dispute evidence during lockdown

Let the DPS know immediately of problems compiling dispute evidence so it can help to find a solution, for example, The DPS may be able to allow an extension for evidence submissions.

7. Checking gas or electrical safety certificates

The Government says that landlords should make every effort to keep gas and electrical safety checks up-to-date but that if the tenant shows coronavirus symptoms, is self-isolating, shielding or does not agree for the landlord or a contractor to access the property, the inspection should not take place.  

The DPS has also created a series of detailed FAQs on how to organise check-ins and check-outs during coronavirus, available via its website.

Croydon is London’s most affordable commuter rental hotspot

Published On: July 2, 2020 at 8:20 am

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Research from Spotahome looks at rent costs across London boroughs with good transport connectivity. The results show that tenants pay £87 in rent for every train or tram stop present in each of the capital’s boroughs.

The virtual property viewing service has looked at the number of train or tram stations, along with the average rental cost in each borough. It then looked at what this equated to as a rental cost per station. Spotahome reports that, on average, an underground, overground, DLR, or tram link increases rent prices by £87 for every station located in a borough.

Top of the list is Croydon, with an average borough rent of £1,136 a month and 42 stations. The research calculates that this makes the rental cost per station £27.

With just five tram or train stations and an average rent of £1,407, Harrow is home to the highest rental cost per station at £281.

London boroughs ranked by the lowest rental cost per train or tram station

Rental data sourced from the ONS

Spotahome also looked at each borough based on its Public Transport Accessibility Levels (PTAL) score and the cost of renting. PTAL score, used by Transport for London, measures the accessibility of a point to the public transport network, taking into account walk access time and service availability. It essentially measures the density and accessibility of the public transport network at any location within Greater London.

The least connected areas with a PTAL score of between 0-10 have been recorded to cost an average monthly rent of £1,360. In comparison, boroughs with a PTAL score of 10+-20 have an average rent of £1,706. It climbs again for scores of 20+30 to £2,256 and then those scoring over 30 reach an average of £2,732.

London Boroughs ranked by the lowest rental cost per train or tram station

Rental data sourced from the ONS
PTAL score sourced from the London Datastore

‘Project Speed’ – property industry reaction to Boris Johnson’s speech

Published On: July 1, 2020 at 8:14 am

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Categories: Property News

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As part of ‘Project Speed’, Boris Johnson has addressed plans for change in the UK in yesterday’s speech. The highlights include:

  • £1.5bn for hospital maintenance
  • £1bn for new schools – 50 projects
  • £560m for school upgrades
  • £200m to improve colleges
  • £100m for road projects
  • ‘Thousands of new homes on Brownfield sites and others’ – building faster and better
  • ‘Radical planning reform not seen since WW2’ 

The Prime Minister, in reference to home building, specifically said: “There has been an intergenerational injustice and the government will now help to get the young on the housing ladder just as their parents did.”

“Build, build, build. Build better. Build faster,” he added.

Managing Director of estate agent Barrows and Forrester, James Forrester, commented: “Today’s announcement by the Prime Minister is a rallying call to commerce, industry, the property sector and finance, to piggy-back his huge spending plans and literally put Britain back together again. 

“We seem set to spend our way to fiscal health and to ensure, in particular, that there is finally a genuine home-building revolution to match similar investment intentions in the transport, education and health sectors. 

“What a welcome relief this is and at just the right time.”

Marc von Grundherr, director of lettings and estate agent Benham and Reeves commented: “Like many areas of life, the severe lack of homes being built has understandably taken a back seat. However, it now stands as one of the pillars on which the Government is forming its economic recovery plan.

“Hopefully, this added emphasis on such a burning issue will result in some action and this will be nothing but positive for the UK property market. 

“Of course, there is always the danger that like many before him, the Prime Minister’s words will equate to little more than just that. With the UK property market still facing a very uncertain landscape, we certainly hope this isn’t the case.”

Landlords are urged to lobby MPs to highlight the impact of the evictions ban

Published On: June 30, 2020 at 8:29 am

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Landlords are being urged to lobby their Members of Parliament to highlight the consequence of the five-month ban on repossessions, due to end on 23rd August.

The National Residential Landlords Association (NRLA) and Landlord Action are working to encourage affected landlords to tell their MPs about the impact it is having and the need to prioritise urgent cases when the courts begin to hear them again.

Landlord Action has recorded approximately 500 live pre-COVID cases stuck in the system as a result of court closures. One landlord, David Healy, is owed over £10,000 in arrears and his tenant has not paid any rent since November 2019.

Mr Healy’s court hearing, which was due to take place on 5th May, has been adjourned and he does not yet know when this will be rescheduled for.

The ban prevents landlords from taking swift action against those committing anti-social behaviour, causing misery for other tenants in the same property as them. One tenant, Rowan Castle, has launched a petition calling for landlords to be given the immediate ability to evict those committing anti-social behaviour. 

On twitter he has said: “This is a total disaster. I’m living in a shared house with a nightmare tenant. We all want her gone, as does the landlady. Her anti-social behaviour is driving us and the neighbours up the wall. She was due to go on 1st July. I can’t put up with it for another 2 months.”

The importance of lobbying MPs will be highlighted during a webinar taking place this Wednesday (1st July), during which Ben Beadle (Chief Executive of the NRLA), Paul Shamplina (founder of Landlord Action) and Vanessa Warwick (co-founder of Property Tribes) will discuss the impact of the repossessions ban, what things might look like in the autumn and the important role that landlords can play in the campaign. 

Ben Beadle and Paul Shamplina have commented: “In the vast majority of cases landlords and tenants are working hard to sustain tenancies wherever possible. It is vital, however, that as courts begin to hear repossession cases again, that they prioritise the most urgent. 

‘This includes cases of anti-social behaviour, those where rent arrears were building pre-COVID and cases which were started, but then paused, prior to lockdown. 

“To support this, landlords have a vital role to play in telling their MPs about the impact the repossessions ban is having as well as highlighting the ways in which they are supporting their tenants through the current crisis.”

One-beds offer the best rental yields, research from Howsy shows

Published On: June 29, 2020 at 8:29 am

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One-bed properties are now providing the best financial investment when it comes to buy-to-let rental yields, according to lettings management platform Howsy.

Looking at figures for major cities across the UK, it found that one-beds now average a rental yield of 6.2%.

Previously, three-beds held the top spot, with a rental yield of 4.3%. Despite this increasing to 5% in this latest research, one-beds have rocketed ahead.

The highest performing areas for one-bed rental yields included in this analysis are:

  1. Newcastle (7.9%)
  2. Glasgow (7.7%)
  3. Liverpool (7.1%)
  4. Plymouth (7%)

The research also looked at two-bed buy-to-let investments, revealing that Newcastle, Glasgow and Belfast all have the highest average rental yields of 6.9%. This is followed by Sheffield (6.7%) and Leeds (6.4%).

The top of the table for three-bed rental yields is Glasgow again, at 6.9%.

Founder and CEO of Howsy, Calum Brannan, commented: “We’re seeing a lot of changes to traditional property trends across the sector and the latest seems to be the profitability of the three-bed buy-to-let. 

While still a good investment, on the whole, tenants demand is growing for one and two-bed homes that provide them with a space of their own.

This growing demand is leading to one and two-bed properties climbing the ranks of profitability due to their lower investment price point and higher demand pushing up rental prices. 

As the threat of the Coronavirus reduces, we will no doubt see this trend reverse as people begin to again feel comfortable about shared living and the better social lifestyle this brings.”  

This latest research from Howsy is based on the average house price and rent for each location, as provided by Home.co.uk.

Rental yields – 1-bed 
Location1 Bedroom
Newcastle7.9%
Glasgow7.7%
Liverpool7.1%
Plymouth7.0%
Sheffield6.7%
Leeds6.6%
Leicester6.6%
Nottingham6.6%
Swansea6.6%
Portsmouth6.4%
Aberdeen6.3%
Newport6.2%
Manchester6.0%
Cardiff6.0%
Oxford5.8%
Belfast5.6%
Bournemouth5.5%
Southampton5.4%
Cambridge5.4%
Birmingham5.4%
Bristol5.3%
Edinburgh5.2%
London4.7%
  
Average6.2%
______________________
Rental yields – 2-bed 
Location2 Bedroom
Belfast6.9%
Glasgow6.9%
Newcastle6.9%
Sheffield6.7%
Leeds6.4%
Liverpool6.3%
Nottingham6.0%
Swansea5.9%
Portsmouth5.8%
Aberdeen5.5%
Manchester5.5%
Birmingham5.4%
Newport5.4%
Leicester5.3%
Cambridge5.1%
Cardiff5.1%
Plymouth5.1%
Edinburgh5.1%
Oxford5.0%
Southampton4.9%
Bristol4.8%
London4.2%
Bournemouth4.0%
  
Average5.6%
______________________
Rental yields – 3-bed 
Location3 Bedroom
Glasgow6.9%
Newcastle6.4%
Belfast6.0%
Leeds5.9%
Liverpool5.7%
Aberdeen5.6%
Manchester5.5%
Swansea5.3%
Edinburgh5.0%
Nottingham5.0%
Birmingham5.0%
Sheffield5.0%
Portsmouth4.9%
Bristol4.6%
Oxford4.5%
Southampton4.5%
Cardiff4.5%
Newport4.4%
Plymouth4.3%
Leicester4.1%
Cambridge3.9%
London3.9%
Bournemouth3.0%
  
Average5.0%
______________________
Rental yields – 4-bed 
Location4 Bedroom
Glasgow6.9%
Edinburgh6.4%
Leeds4.8%
Newcastle4.7%
Bristol4.7%
Belfast4.4%
Aberdeen4.4%
Liverpool4.4%
Birmingham4.3%
Manchester4.3%
Nottingham4.0%
Southampton3.9%
Portsmouth3.9%
London3.8%
Leicester3.7%
Cardiff3.7%
Sheffield3.6%
Newport3.6%
Oxford3.5%
Cambridge3.5%
Plymouth3.4%
Swansea2.9%
Bournemouth1.8%
  
Average4.1%
______________________
Rental yields – 5-bed+ 
Location5 Bedroom
Glasgow5.5%
Edinburgh5.1%
Southampton4.3%
Birmingham4.2%
Nottingham3.9%
Aberdeen3.9%
Liverpool3.8%
Manchester3.5%
Bristol3.4%
Newcastle3.2%
Portsmouth3.2%
Leeds3.2%
Leicester3.1%
Cambridge3.1%
Sheffield3.0%
Swansea3.0%
Belfast3.0%
Cardiff3.0%
London3.0%
Plymouth2.6%
Newport2.5%
Oxford2.1%
Bournemouth1.6%
  
Average3.4%

Launch of Portico Direct introduces low-cost lettings service for private landlords

Published On: June 26, 2020 at 8:22 am

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London estate agent Portico has launched its new online solution for landlords who want to let their property without an agent – Portico Direct.

With changes brought to the industry by the UK’s lockdown, the bricks-and-mortar estate agent has turned its attention to technology and how it can be used to aid the lettings process.

The house moving market may have opened up again, but landlords’ profits might still be squeezed as a result of static rent prices and tax and legislative changes.

Portico’s CEO, Robert Nichols, comments: “Lockdown job losses and relocations mean there is still high demand in the private rental sector. In fact, according to Rightmove, demand for UK rental properties is up by 22% compared to last year. 

“But despite this, some landlords are still feeling the effect of tougher regulations and taxes. We also know that, for a large proportion of landlords, the costs of managing their property portfolio has grown due to these changes. 

“We hope that Portico Direct will be a solution for private landlords who want to rent out their property without using a traditional high street agent and keep costs down; ultimately, our new offering means private landlords are able to find the right tenants quickly and cost-effectively and, as long as they don’t mind doing some of the legwork, enjoy a better return on investment as a result.”

Portico Direct, as described by Portico:           

With Portico Direct, private landlords located outside of London can advertise on Rightmove, Zoopla, and OnTheMarket without enlisting a traditional Lettings Agent. The service costs just £1 for the first seven days, which is often enough time to find the perfect tenant. If landlords need more time, another 14 days can be purchased for £19, and this process can be repeated as needed.

Through their new service, Portico connects tenant enquiries with private landlords via their Portico Direct platform, and the landlords will conduct the viewings themselves, whether they want to do this virtually or in person.

Portico’s launch of Portico Direct is followed by the recent expansion of its London short-term lettings service, Portico Host.