Posts with tag: ARLA Propertymark

Eleven top tips for renting a property

Published On: July 14, 2020 at 7:59 am

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ARLA Propertymark has shared its top tips for renting, now that the industry has gone back to normal following the ease of lockdown restrictions.

The association hopes to make the process of renting as smooth as possible with these eleven tips:

1. Work out your finances

First of all, you should figure out a budget and research which areas you can afford. According to Zoopla, the average cost of renting a property in the UK during the final quarter of 2019 was £886 per month. This tends to be lower for first-time renters starting out with a one- or two-bed property.

Remember that as well as rent payments, you might also need to factor in a budget for:

  • Gas
  • Electricity
  • Water
  • Phone
  • Broadband
  • TV license
  • Council Tax

2. View virtually

As of 13th May, the Government issued new guidance for England which allowed socially distanced viewings, that carefully adhere to public health guidance, to take place. Property viewings may be different from how they used to be, with some letting agents and landlords offering virtual viewings initially.

This can cut down the need to come into contact with other unnecessarily whilst the country is still in lockdown. If you like what you see online, then you can view the property in person. Just remember to keep your hands clean and you may also be asked to turn up with a face mask.

3. Know your rights

Before a tenancy agreement is signed, you need to prove that you have the right to live in the UK. You can find a list of what can be presented as proof in the Government’s Right to Rent guide.

It’s worth bearing in mind that temporary changes have been made to Right to Rent checks due to lockdown.

After you sign the contract, you must be given:

  • a copy of your new home’s Gas Safety Certificate (if the property has gas)
  • an Energy Performance Certificate (EPC) for the property
  • the Government’s How to Rent Guide
  • your Deposit Protection Certificate
  • the Prescribed Information (this may take a few days)
  • any license issued by the local authority (if the property is subject to any form of local authority landlord licensing scheme)
  • if you are a new tenant from the 1st July 2020, you must also be given an Electrical Safety certificate

Phil Keddie, President, ARLA Propertymark comments: “Tenants who haven’t had to go through the lettings process at all, or at least haven’t since 2016, might be unaware of new legislation that has come into force since then. When signing a new tenancy, it’s important you keep on top of the costs, as well as your rights and responsibilities.

“From making sure you choose the right property, to knowing and understanding the legal process and your rights as a tenant, as well as adhering to the new rules around social distancing when viewing a property, there’s certainly a lot to consider. That’s why it’s important to have a reputable letting agent or landlord by your side to guide you through the renting process.”

4. Ensure you are protected

You need to make sure that you understand what kind of tenancy agreement you are about to sign. It is a legally binding contract, so it is important to read it carefully. Ask as many questions as you want until you are comfortable that you understand everything it contains and if you’re not happy, ask for any changes or amendments you want.

Letting agents should also have Client Money Protection and are required to display all fees they will charge you on their websites and prominently in their offices. This information should also include which redress scheme they belong to so that you can go to this scheme if you have an issue that you feel hasn’t been satisfactorily dealt with. ARLA Propertymark says that if a letting agent can’t provide you with this information, don’t use them.

5. Sort out the bills and insurance

If your agent does not do this for you, contact the utility companies used for your new home and provide them with meter readings, your move-in date, and the names of all the tenants (if you aren’t living alone).

Landlords will insure the building and any contents that belong to them, but this will not cover your belongings. You can take out your own contents insurance if you want to financially protect them.

When sharing a property, it’s worth agreeing on a system for fairly splitting the cost of bills and making sure they are paid on time. You will all be jointly responsible, so if someone doesn’t pay their portion, the rest of you will have to make up the difference!

6. Lets with pets

You should check the tenancy agreement before signing if you wish to keep pets. If there is a clause stating that no pets are allowed, you should not break this, as it can be used as grounds for eviction.

If you have a pet, your landlord may also put additional clauses into your tenancy agreement related to owning a pet, such as making sure it doesn’t foul in the garden or inside the property, not leaving it alone in the property for too long and cleaning the property thoroughly before the end of the tenancy. Any damage to the property or extra cleaning that needs to be undertaken by the landlord can be deducted from your deposit.

7. Safety first

Your landlord must ensure there is a working smoke alarm on each floor of your home. There must also be a carbon monoxide detector in any room where solid fuels are burnt (such as wood, coal or biomass). They need to be tested and working on the first day of the tenancy.

8. Check the inventory

A list of everything that is provided with the property will need signing at the beginning of the tenancy. This includes items such as furniture, carpets, curtains, appliances, crockery, and cutlery. If anything on this list is missing from the property or isn’t in the state it says (for example, a stain on the carpet), you need to notify your landlord or letting agent.

If you don’t query any discrepancies now, you might not be able to prove later on that you didn’t cause the damage/lose the item, which can lead to money being deducted from your deposit to cover the costs.

9. Sort issues before they become problems

Make sure that all contact details are up-to-date for your landlord or letting agent. If you discover any problems with the property, don’t be afraid to let them know straight away. The sooner you report an issue, the faster it can be sorted. It can also prevent the damage from getting worse, costing your landlord even more money. 

If you plan on leaving the property empty for a while during the colder months, leaving the heating on low can help to prevent pipes from freezing. If you’ll be away longer than a couple of weeks, let your landlord or agent know so they can keep an eye on the property whilst you’re away.

10. Keep good records

This could be vital if there’s a dispute when you move out. Useful items might include photos taken when you moved in (ideally, dated and labelled), receipts for any items you’ve replaced, correspondence about repairs and copies of your bills.

It’s also important to either get written consent from the agent or landlord or to keep accurate notes about any changes the landlord has allowed you to make to the property such as putting up pictures or painting walls so that when you move out you have proof of this. 

11. Return the property as you found it

Most deposits disputes are over the condition of the property at the end of the tenancy. Make sure you give the property a thorough clean before you move out and leave the property in the same condition as the day you arrived.

Possession cases confirmed to continue from 24th August

Published On: July 7, 2020 at 8:02 am

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eviction ban

A confirmation has come from a government Minister that the courts will begin to hear possession cases from 24th August, reports the National Residential Landlords Association (NRLA).

Responding to a series of parliamentary questions, Lord Greenhalgh, a Minister at the Ministry for Housing, Communities and Local Government has said that from the 24th August “the courts will begin to process possession cases again”.

By this date it will have been five months since the ban on evictions was originally put in place. This was to provide more security for renters during the COVID-19 pandemic. However, the NRLA has recently reported that this ban has also caused more of a struggle to protect victims of domestic abuse.

The Minister argued that this would be “an important step towards ending the lockdown and will protect landlords’ important right to regain their property.” He reiterated, however, that work is ongoing to ensure “the most vulnerable tenants can get the help they need when possession cases resume.”

He also has confirmed that under plans to end Section 21 repossessions as part of the Renters’ Reform Bill, Ministers want to ensure that “landlords are able to swiftly and smoothly regain their property through the courts where they have a legitimate reason to do so.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “The Minister’s comments provide greater certainty for the rental market. We continue to work hard with landlords and tenants to sustain tenancies wherever possible. In the vast majority of cases, this is happening.

“It is vital however that swift action can be taken against those tenants committing anti-social behaviour or domestic violence.  We are calling also for priority to be given to cases where possession orders were granted prior to lockdown or where rent arrears have nothing to do with the COVID pandemic.”

David Cox, Chief Executive of ARLA Propertymark, has also commented on the announcement: “We’re very pleased to hear that from 24th August courts will be re-opening and can begin to process the backlog of possession cases. 

“We have previously expressed our concern to the Secretary of State for Justice that there could be as many as 62,000 ‘business as usual’ landlord possession claims to be processed across England and Wales so having clarity on when these can be handled is extremely encouraging for landlords and the sector.”

Short-term lets: government discussions could provide solution to sector problems

Published On: June 10, 2020 at 8:35 am

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Categories: Lettings News

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Short-term lets

The rental industry will be paying close attention to the government’s consideration of short-term lettings regulation this month, PayProp predicts.

The rental property platform has noted that this fast-growing part of the rental market has been hit particularly hard by COVID-19, but is expected to bounce back in the coming months. It speculates that this makes now a good time to consider the future of short-term lets.

At the end of May, the House of Commons Library published a 46-page briefing document discussing the calls for greater regulation of short-term lets. 

Airbnb, the best-known short-term lets platform, contributed to the briefing – and also plans to present a white paper of recommendations to the government later this month. 

The document reiterates the government’s position that it has no plans to ban the use of residential property for short-term lets.

It adds that further legislation would be overly bureaucratic and could act as a barrier to households letting out their properties on a short-term basis.

Instead, the government says it prefers a ‘non-regulatory approach’ to encourage improved standards and promote best practice in the industry.

Neil Cobbold, Group Chief Sales Officer at PayProp, highlights that whether this is workable will be a matter of intense interest and debate in coming months. Given the rapid growth of the sector before COVID-19, agreeing a clear approach now – whether regulatory or non-regulatory – may help to avoid tougher decisions later.

Huge growth leads to regulation questions

Before the COVID-19 pandemic struck, the short-term lets sector was growing quickly. ARLA Propertymark research found that the number of UK Airbnb listings reached 223,000 in 2018, up from 168,000 in 2017. This shows a rise of 33%.

By March 2020, there were 88,100 Airbnb listings in London alone – almost five times higher than the number recorded in April 2015 – according to analysis by campaign organisation Inside Airbnb.

Cobbold comments: “The rapid growth of the short-term lettings sector has encouraged calls that it should be regulated, which is understandable considering the level of regulation in the traditional private lettings market.

“Despite the government’s opposition to formal regulation, the briefing document indicates its acceptance that the future of short-term lets needs to be discussed, which is positive in itself.

“Debate around the questions raised in the briefing paper could lead to new solutions for some of the issues around the sector, while still allowing it to thrive.”

Short-term lets benefits and concerns revealed

The government’s briefing paper outlines both the benefits and concerns around the growth of short-term lets.

Benefits include the tourism boost short-term lettings can provide and the options for landlords or property owners with empty properties. However, the paper points out a lack of taxation compliance by short-term landlords, the impact on local housing markets, and health and safety issues.

Cobbold explains: “The issues raised by widespread short-term lets are well-documented. However, the financial benefits for local economies and landlords are hard to ignore.

“Finding a balance that recognises the value of short-term lets while minimising the impact of the issues they cause will be crucial to the sector’s long-term success.”

Key short-term lets considerations

Cobbold suggests that one of the key issues the government may confront this month is that there is currently no single source of regular data on the short-term lets market.

He explains: “Airbnb is the most used platform, but there are a range of other websites out there. Better and more consistent reporting of short-term lets data would make it easier to track growth and trends.”

Another issue that could be discussed is annual limits on short-term lets. Currently, properties in London can only be let on a short-term basis for 90 nights per year, while there are no restrictions across the rest of England.

Cobbold adds: “It’s been reported that the 90-day rule in London is flouted regularly, so its effectiveness needs to be reviewed. What’s more, as the popularity of short-term lets grows in other cities across the country, similar limits may need to be considered elsewhere.”

Finally, he says that the results of Airbnb’s consultations with stakeholders on a registration system for short-term rentals – as well as their planned white paper – could be crucial to the future of the industry.

He concludes: “Implemented effectively, a short-term lets registration system could help the sector to professionalise without introducing too much red tape.”

Government introduces new regulations to kick-start housing market

Published On: May 14, 2020 at 8:18 am

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Safest areas to live in the UK

New regulations have been introduced by the government to allow buyers and renters to view properties and move homes. 

Estate agents can now open, viewings can be carried out, and removal firms and conveyancers can restart operations.

David Cox, Chief Executive of ARLA Propertymark and Mark Hayward, Chief Executive of NAEA Propertymark comment: “It’s great news for consumers and the industry that the housing market is being opened up and people can let, rent, buy and sell properties again. The new regulations provide clarity to agents and will allow them to deal with pent up demand from consumers. 

“It’s also a step to reinvigorating the housing market and will be a boost to the economy. Safety, of course, will be paramount, and we would encourage everyone to ensure that they follow Government guidelines closely to protect others and themselves.”

Andy Marshall, Chief Commercial Officer, Zoopla, said: “We’re delighted that the Government has recognised the need to restart the property market, permitting estate agents to operate – within the parameters of common sense social distancing. Now is the time to get the market moving and to restore it to full health.

“With 373,000 transactions held up in the pipeline, amounting to £82bn in property value and £1bn of agent revenue, the Government’s move is set to be a catalyst for the broader economy. The multiplier effect of estate agency will stimulate cashflow for a network of industries, from removal firms to decorators to solicitors, benefiting the economy at both a local and national level.

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), said: “Tenants will now be able to look for a new home and move into it whilst those landlords who have unexpectedly faced empty properties will be able to put them back on the market.

“It is vital though that all viewings and house moves take place safely and in line with the Government’s guidance. We will continue to work with the Government, landlords and others to ensure that the risks of spreading coronavirus are minimised.”

new regulations to kick-start housing market
Government introduces new regulations to kick-start housing market

Steve Olejnik, managing director of Mortgages for Business, said: “We can’t know exactly what’s going to happen to the market, but we expect a temporary, short-term fall across London and the southeast in the region of about 15%. 

“But there’s no question that if you invest in bricks and mortar now, with a bit of haggling during the process, you are going to see a lot of long-term capital growth. 

“I think values will be back at February 2020 levels by the spring or summer of next year. Landlords who have not asked for a repayment holiday will be well set to snap-up some bargains with the help of lenders who have demonstrated a willingness to lend since the third or fourth week of the pandemic.

“Yields from the various types of property remained pretty steady throughout 2019 and suggest property will offer a better return than many other investments in the future – especially to smart, professional landlords looking outside the box at HMO investments.”

Grant Lipton, co-founder of London-focused developer Great Marlborough Estates, has commented: “The housing market re-starting is obviously positive news, but it will need more than a press release to give buyers and sellers confidence and so the government needs to look at a range of measures to kick-start activity including a Stamp Duty holiday.”

Mary-Anne Bowring, managing director at Ringley Group, comments: “There’s no reason buyers or renters shouldn’t be able to move home if they are able to do so safely in accordance with social distancing guidelines so today’s announcement is welcome news.

“However, we shouldn’t pretend this means the housing market has returned to its pre-coronavirus state. Lockdown is set to continue in some form for an unknown amount of time, the resulting economic disruption will likely weigh down on activity in the for sale market.

“A Stamp Duty holiday proposed by RICS and others would likely see a stampede in transactions while an extended Help to Buy will support some sales and in turn housebuilding.

“Yet the government should think long term and introduce policies to reflect Britain’s changing housing needs. Private renters are a fast-growing part of the housing market and need catering to.

“Yet politicians seem intent in squeezing buy to let landlords out of the rental market and the build to rent sector – a positive emergence – simply isn’t big enough yet to absorb all rental demand.

“If the government cut Stamp Duty surcharge for landlords it could help stimulate the market by encouraging BTL investors to snap up homes to then rent out. Many landlords also help support housebuilding through off plan sales.

“The housing market as whole will also have to get ready for a digital-first approach to transactions as more tasks and jobs are done remotely.”

Dan Wilson Craw, Director of Generation Rent, said: “Lifting restrictions on the lettings market is welcome for thousands of renters who have been stuck in unsuitable homes. But a reopened housing market cannot be an excuse to lift the evictions ban which is in force until late June.

“Despite the furlough and increased housing benefit, 2.6 million private renters are at risk of arrears with no way of paying them off once the economy recovers. Just a third of landlords have offered flexibility on rent payments, so most of these renters will face eviction as soon as the ban is lifted.

“The worry and stress of the pandemic is giving renters sleepless nights. Many have difficult decisions to make right now. If Robert Jenrick is developing a plan that will reassure them, we need to know what it is urgently.”

Ongoing housing possession action suspended by MHCLG

Published On: March 30, 2020 at 8:19 am

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housing possession action suspended

The Ministry of Housing, Communities and Local Government (MHCLG) has now suspended all ongoing housing possession claims.

This decision was made last Friday by the Master of the Rolls, England’s second most senior judge. It means evictions can no longer go ahead legally until further notice.

The MHCLG said in a statement: “From 27 March 2020 following a decision by the master of the rolls with the Lord Chancellors agreement, the court service will suspend all ongoing housing possession action – this means that neither cases currently in the or any about to go in the system can progress to the stage where someone could be evicted.

“This suspension of housing possessions action will initially last for 90 days, but this can be extended if needed.

“This measure will protect all private and social renters, as well as those with mortgages and those with licenses covered by the Protection from Eviction Act 1977. This will apply to both England and Wales.”

David Cox, Chief Executive, ARLA Propertymark comments: “However difficult it may be, this is the right decision in light of the current circumstances. Yet evictions will not be required if we can keep the rent flowing. 

“The latest advice is that people stay put, and as long as the Government helps tenants pay their rent, there will not be a large build-up of debt from rent arrears, meaning there will be no logical reason why a landlord would start eviction proceedings.”

Government announces legislation to ban evictions and protect renters

Published On: March 19, 2020 at 10:04 am

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Government announces legislation to ban evictions and protect renters

The government has also announced that it will be bringing forward legalisation to protect renters during the outbreak of COVID-19.

David Cox, Chief Executive, ARLA Propertymark comments: “We agree that the Government must do ‘whatever it takes’ to safeguard tenants in these unprecedented times. We, of course, have to support tenants as they face uncertainty over the coming months, while as the Prime Minister has said, ensuring we don’t simply pass on the problem to other actors in the economy.”

Matt Downie, Director of Policy and External Affairs for Crisis, said: “This is a hugely welcome announcement. While we await the detail, we hope this means anyone served an eviction notice will not be left facing homelessness as a result of the pandemic.

“We appreciate that this needs to be a workable solution for renters and landlords, but would stress that any repayment plan must be affordable for tenants. If someone loses their job because of the outbreak and has no income coming in, they cannot be faced with intolerable levels of debt once these emergency measures are lifted.”

Franz Doerr, founder and CEO of flatfair, comments: “Protecting renters who may be facing a financially precarious position during this pandemic is absolutely crucial and the fact that the government is putting forward legislation to help the UK’s millions of renters feel safe and secure in their home is to be welcomed. Extending the three-month mortgage holiday to landlords whose tenants are experiencing difficulty paying is a sensible step.”

Dan Wilson Craw, Director of Generation Rent, said: “We have already heard from renters who are losing work as a result of the outbreak and have been given eviction notices. This announcement will give them welcome short term respite.

“But there is nothing here that will help renters who get into arrears to find the money to pay them off at the end of their landlord’s mortgage holiday. Levels of housing benefit have fallen behind market rents and new claimants face delays in getting payments. To ensure renters don’t fall into debt, the government now needs to offer rent relief.”

Read the Government’s announcement here: https://www.gov.uk/government/news/complete-ban-on-evictions-and-additional-protection-for-renters.