Written By Em

Em Morley

Support needed for tenants hit by the coronavirus

Published On: March 17, 2020 at 9:27 am

Author: Em Morley

Categories: Tenant News

Tags: Coronavirus,Crisis,government,NLA,RLA

Package to support tenants hit by coronavirus

The country’s leading landlord organisations are calling for a package of measures from Government and mortgage lenders to support tenants and landlords affected by the coronavirus.

In a joint statement, the Residential Landlords Association and the National Landlords Association said: “We are encouraging all landlords to work positively with tenants to provide support where needed throughout this difficult period. Landlords should be as flexible as they can to help tenants facing payment difficulties resulting from the impact of the coronavirus.

“To support landlords in this we are calling for a package of measures from Government and mortgage providers. This includes a temporary scrapping of the five-week wait before Universal Credit claimants get their first payment, pausing the final phase of restricting mortgage interest relief to the basic rate of income tax and ensuring lenders look sympathetically on requests by landlords for mortgage payment holidays where their income is being affected through reduced or non-payment of rent.”

Emergency measures to protect people facing homelessness in the coronavirus outbreak

On top of this, homelessness charity Crisis is calling on national governments and local councils to take emergency measures to ensure people experiencing homelessness can access self-contained accommodation with private bathrooms.

The charity is deeply concerned that the measures set out don’t go far enough. Crucially, the current COVID-19 guidance fails to include measures to enable people who are sleeping rough, or living in shelters and hostels, to self-isolate.

People experiencing homelessness, particularly those rough sleeping, are particularly vulnerable in this outbreak. They are three times more likely to experience a chronic health condition including asthma and COPD.

Jon Sparkes, Chief Executive of Crisis, said: “The guidance we have received to-date is inadequate. It fails to set out a plan for how people experiencing homelessness can self-isolate in this outbreak.

“We need emergency action to protect people in this very vulnerable situation – this must include testing and access to housing. Let’s not forget that the average age of death of someone who is homeless is 45, substantially lower than the general population. Given the obvious vulnerability, the only answer can be to provide housing that allows people to self-isolate.”

Crisis is calling for the following measures to be taken as a matter of urgency:

People sleeping rough and living in hostel and shelter accommodation to have rapid access to healthcare assistance and appropriate housing
Assistance from national governments to secure hotel-style accommodation to meet the increased need
Removal of legal barriers so that anyone who is at risk of, or is already homeless, can access self-contained accommodation
Provide additional financial support through the Universal Credit system to ensure people are not pushed to the brink of homelessness
Protect renters from evictions by temporarily suspending the use of Section 21 and Section 8 evictions

The charity is calling for the Westminster Government to ringfence a proportion of the £5bn fund announced in the Budget last week to fight Covid-19 for local authorities to help deliver these measures.

Crisis is also calling for national governments and local councils to ensure that frontline workers in homelessness organisations are recognised as an emergency service as part of their response to COVID-19.

RLA & NLA: Increased Demand is Hurting Tenants

Published On: March 16, 2020 at 12:25 pm

Author: Em Morley

Categories: Landlord News

Tags: rent prices,supply and demand

RLA & NLA: Increased Demand is Hurting Tenants

The Residential Landlords Association (RLA) and the National Landlords Association (NLA) have warned that the government is ignoring warning signs of a looming rental crisis.

Tenant demand is increasing, but the number of new landlords entering the market is falling according to new figures released by the Royal Institution of Chartered Surveyors. What’s more, they say this has been happening every quarter since mid-2016.

This increased demand and squeeze on supply is likely to lead to rental increases across the vast majority of regions in 2020. This is already the case if you ask HomeLet, who say that rents are rising across the country, making it harder for tenants to save to buy their own home.

Landlords had hoped that Rishi Sunak’s budget last week would have shown support for them, but were sadly disappointed.

They had called for Rishi Sunak’s big-spending budget to include the abolishment of stamp duty on the acquisition of additional homes where landlords invest in property adding to the net supply of housing such as new build properties or bringing long term empty homes back into use.

In a joint statement, the RLA and NLA said:

“The government is undermining its own efforts to boost homeownership through its attacks on the private rented sector.

“By choking-off supply and making renting more expensive it is tenants who are hardest hit.

“Ministers need to wake up to the reality of the damage their tax measures are doing to the private rented sector and support landlords to provide the new homes for private rent we desperately need.”

Birmingham Named Least Eco-Friendly City in the UK

Published On: March 13, 2020 at 12:02 pm

Author: Em Morley

Categories: Property News

Tags: climate change,eco-friendly cities

Birmingham Named Least Eco-Friendly City in the UK

In a new study from Good Move, Birmingham has been named and shamed as the least eco-friendly city in the UK, whilst Bristol has taken the top spot.

Cities were ranked by a variety of sustainability factors, which were averaged out to produce an overall score and generate a leaderboard.

Of the five ranking categories, Bristol came first in three. Bristol’s carbon emissions, recycling rates and gas consumption, were better than any other city in the UK. 47% of household waste is recycled or composted, at least 6% more than any other city, and Bristol was the only city to use less than 3000kw/h of gas per year.

In second place was Edinburgh, which took the penultimate place largely due to it 49 hectares of publicly available green space, which is more than any other UK city. Interestingly, Glasgow has the second largest amount of green space with 32 hectares, showing that Scottish cities have a major focus in this area.

Poor recycling and emissions dragged Birmingham to the bottom of the table. Only 22% of Brummie’s waste is recycled, and only London has worse carbon emission figures.

The five most environmentally-friendly UK cities are:

1) Bristol

2) Edinburgh

3) Manchester

4) Sheffield

5) Bradford

In contrast, the five least eco-friendly cities are:

1) Birmingham

2) London

3) Leeds

4) Glasgow

5) Liverpool

London fares poorly when it comes to carbon emissions (29,709 tonnes) and gas consumption (61,546kw/h), which are both higher than the other nine major cities COMBINED.

Ross Counsell, Director at Good Move, said: “The world is finally waking up to the dangers of climate change and the impact that our lifestyles are having on the planet.

“Our research has highlighted which UK cities are particularly guilty of being unsustainable, while also praising those who are taking steps to address the issues. However, progress can only be made if the country works together as a whole, making informed changes on a national scale.”

Lack of Affordable Housing Leading to Increased Homelessness

Published On: March 12, 2020 at 11:55 am

Author: Em Morley

Categories: Tenant News

Tags: Affordable housing

Lack of Affordable Housing Leading to Increased Homelessness

Councils are unable to house homeless people in their areas due to a lack of affordable housing, leaving a third of those who contacted their local authority remaining, or becoming homeless.

In a report by homeless charity, Crisis, based on 984 surveys and 89 interviews, it was revealed that since the introduction of the Homelessness Reduction Act (HRA) many more people are now getting access to the help they need, but councils are still unable to help a large proportion of affected people.

Due to low housing supply and rents rising above wages and benefits, councils are struggling to afford to house the people that are supposed to be their responsibility.

Many respondents stated that the only support they received was information on how to rent privately, and were given a list of landlords to contact, only to find out that they could not rent from these landlords as their benefits did not cover the rent prices.

Crisis says more must be done to ensure the HRA can reach its full potential of preventing and ending homelessness across England. The charity has called on the government to urgently invest in housing benefit so that it covers the cheapest third of rents and commit to building 90,000 social homes each year for the next 15 years.

Commenting on the research Jon Sparkes, Crisis Chief Executive, said:

“It’s deeply distressing that, across England, councils are being forced to leave the people they are trying to help on the streets or drifting from sofa to sofa – all because they cannot find somewhere safe and affordable for them to live. The HRA has made some good progress in preventing people from becoming homeless, but it’s worrying to see that it’s being constrained by a chronic lack of housing and cuts to housing benefit.

“The HRA can be at the heart of ending homelessness for good, as this report shows, but this is only possible if councils are properly resourced and have the tools, they need to help people leave homelessness behind for good.

“It’s vital that the Government gets to grips with the root causes pushing people into homelessness in the first place, this means ensuring more social homes are built across the country and that housing benefit is restored to truly cover the cost of rent. Only when these measures are in place will we be able to unleash the full potential of the HRA.”

Spring Budget 2020: Stamp Duty changes for domestic and overseas buyers

Published On: March 12, 2020 at 9:35 am

Author: Em Morley

Categories: Property News

Tags: government,Spring Budget,Stamp Duty

The Spring Budget 2020 was announced yesterday, with the following changes made affecting property investors in the UK:

A Stamp Duty surcharge has been confirmed for overseas buyers

Milton Rodosthenous, Build to Rent expert and director of online auction service LetsBid Property, comments: “The stamp duty surcharge for non-UK tax residents represents positive news for domestic property buyers and landlords. Competition from overseas buyers – which has been rife in recent years, particularly in the UK’s largest cities – is likely to reduce significantly.

However, the additional tax could pose problems for the Prime Central London market, in which there is currently a huge amount of overseas investment. The market has been struggling for several years since George Osborne’s stamp duty reforms in 2014 and this latest move could see a further reduction in prices and activity.

Actively discouraging overseas investment with a 2% surcharge could be troublesome. Perhaps a 1% surcharge on overseas buyers – as originally mooted by politicians – would be fairer and more effective in creating a level playing field for all property purchasers?”

Mary-Anne Bowring, group managing director at residential property consultancy Ringley, says: “The falling pound has made housing more affordable to overseas buyers, while domestic buyers have had to contend with stagnant wage growth and ultra-low interest rates pushing up prices and eating away at their ability to save.

“An increased Stamp Duty for overseas buyers will simply put things back to where they were before the Brexit vote and level the playing field for domestic buyers.”

Neil Cobbold, Chief Sales Officer at PayProp, comments: “An additional 2% Stamp Duty surcharge for overseas investors will certainly have an impact on the demand for properties in England’s major cities. We will have to wait and see whether disincentivising overseas buyers causes a shortage of rental homes in the long-term.

“However, additional revenue from this surcharge could pave the way for a reduction or overhaul of the current 3% levy on second homes and buy-to-let properties.

“Changes of this type – and reduced competition from overseas – would encourage more domestic landlords to invest in further properties and provide more homes for the growing tenant population.”

Mark Hayward, Chief Executive of NAEA Propertymark comments: “If introduced, this policy allows those in the UK to have a better chance at purchasing a home. However, overseas buyers tend to purchase properties in prime central London which are completely unaffordable to most homebuyers anyway. Therefore, this move will not help those that need it most.

“Ultimately, by energising surcharges, it is likely that purchasers will factor this additional cost into any offers they make on a property so prices may be pushed down in areas where overseas buyers are purchasing.”

Stamp Duty changes within the UK

Milton Rodosthenous, Build to Rent expert and director of online auction service LetsBid Property, comments: “Many consumers and indeed property professionals would like to have seen changes to stamp duty rates in today’s Budget. This would have given the market a further boost following the increased activity we have seen in the first few months of the year post-election and post-Brexit.

“Those keen for stamp duty reform will now have to wait, but it could only be a matter of time as it’s clear from his previous comments that Boris Johnson has designs on overhauling the current stamp duty system.

“Meanwhile, it was surprising not to see stamp duty relief for first-time buyers confirmed as a permanent policy. This initiative has been highly successful and contributed towards many younger people no longer feeling that homeownership is out of reach.”

“Moreover, reviewing council tax levels would have been a significant and lengthy project to complete, but it has been much needed for a while as average property prices have spiralled since the existing levels were set.

Additional revenue from new council tax rates could have been used to pave the way for a stamp duty shakeup, which could save money for movers and encourage more transactions at the mid to higher end of the market.

Asaf Navot, CEO of London prop-tech lettings company, Home Made stated: “Despite the government’s claim of its commitment to fixing the UK’s housing crisis, this budget offered little to no immediate relief from taxation for landlords.

“The 1% drop in the stamp duty surcharge for investment properties does reduce some of the taxation landlords face. However, without harder-hitting measures on stamp duty, and the reintroduction of buy-to-let mortgage interest relief, it does little to increase the rental supply or benefits to landlords.

“With more people renting, and for longer, bold solutions are required to fix the housing crisis. In the next budget, the government must focus on reducing taxation further to encourage more landlords into the market and incentivise developers to build more homes to meet rising demand. Additionally, it is imperative that we reduce the transition of long-term rentals to short-term lets to avoid impacting the rental market further.

“While it is politically logical to pursue government-led initiatives to boost levels of homeownership, more needs to be done to ensure we are encouraging development of quality housing, supporting good landlords, and enforcing compliance, to provide properties that suit the variety of ways people choose to live in the 21^st century.”

Spring Budget 2020: Changes for homebuyers and renters in the UK

Published On: March 12, 2020 at 9:25 am

Author: Em Morley

Categories: Tenant News

Tags: government,Spring Budget

As well as changes to Stamp Duty, the following were discussed in yesterday’s Spring Budget announcement:

Government’s commitment to extend the Affordable Homes Programme

Tom Slingsby, chief executive of property developer Southern Grove, says: “This cash boost for affordable homes will underpin building for many years to come and is a declaration of war on a housing crisis that isn’t going away.

“Only sufficient provision of affordable homes in the right areas can prevent the sort of social inconsistencies that appear when high property prices put key areas of UK cities off-limits to younger workers and their families.

“We know from conversations we have constantly with housing associations that the appetite is there to keep building through economic cycles and this fund will ensure that will happen.”

Henry Verrill, Head of Valuations at estate agent Nested comments: “Today’s budget contains welcome announcements for the housing market. The interest rate cut, though principally in response to COVID-19, stands to benefit those on variable rate mortgages and buyers looking for fixed-rate deals.

“And the £12bn set aside for the affordable homes programme – combined with a further £1.1bn for the building of up to 170,000 new homes – is good news for those planning to take their first steps onto the housing ladder in a market where the cost and level of supply is a well-known issue.

“We’re particularly pleased to see £1bn designated to the new building safety fund – a fund which will help ensure the removal of unsafe cladding from apartment blocks.

“This continues to be an important issue for Nested’s clients and this measure will provide a degree of reassurance to buyers and sellers of flats across the country. Whilst it’s too early to tell whether the sums allocated will be enough, it’s certainly a step in the right direction.”

Renters’ Reform Bill

Neil Cobbold, Chief Sales Officer at PayProp, comments: “The lettings sector would have been relieved to hear further details of this legislation, along with a clearer timetable for property professionals to work to.

“Removing Section 21 from the Housing Act 1988 is a huge change to the evictions process. It’s vital that input from the industry is considered when this measure is debated in Parliament in order to get the best outcome for all parties.

“Lettings professionals will also want to see how the court system will be reformed to oversee the new system.

“The introduction of lifetime deposits could have a range of advantages for the rental sector – and particularly for renters. However, it will be important for politicians to consider input from the sector when deciding how a new deposit system could work.”

Building Safety Fund to remove unsafe cladding from all UK buildings above 18m

David Westgate, Group Chief Executive at Andrews Property Group, comments: “The announcement of a £1bn Building Safety Fund will be welcomed by leaseholders living in high rise blocks around the UK.

“The key issue, as ever, is how quickly the funds can be called upon and if there are any specific criteria that must be met for developments to be eligible.

“The funds have officially been made available but the logistics have yet to emerge. In the meantime, many people’s lives have been put on hold as they cannot secure mortgage finance and they cannot sell their homes.

“What’s also vital is that the new fund covers rendered insulation as well as combustible cladding.

“In our experience, the cladding issues we are seeing around the UK could soon be surpassed by the problem of rendered insulation.“If we are to genuinely make every apartment and housing block in this country safe then the newly announced fund needs to cover all materials that are deemed to be unsafe, not just cladding.”

Lack of investment to help the issue of homelessness and boost homeownership

Jon Sparkes, chief executive of Crisis, said: “Missing from today’s Budget is bold action to prevent people from being forced on the streets in the first place, such as clear targets for increasing the supply of social housing and restoring housing benefit to cover the cost of rent.

“Rough sleeping is the most brutal and devastating form of homelessness and while the additional funding announced to tackle this is much needed, a dark cloud remains over the Government’s ability to end rough sleeping within this Parliament without tackling its root causes.

“The lack of investment in housing benefit is a complete missed opportunity for the Chancellor to free some of the most vulnerable people from the grip of poverty.

“The upcoming Spending Review must restore housing benefit to cover at least the lowest third of rents – the Government cannot continue to look the other way while people are forced into homelessness under the constant pressure of rising rents and low incomes.”

In a joint statement, the Residential Landlords Association and the National Landlords Association said: “The Government is undermining its own efforts to boost homeownership through its attacks on the private rented sector. By choking-off supply and making renting more expensive it is tenants who are hardest hit.