Posts with tag: letting agents

Poll Shows that the General Public Supports the Ban on Tenant Fees

Published On: May 4, 2017 at 8:28 am

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A new poll by Citizens Advice shows that the general public supports the Government’s proposed ban on tenant fees charged by letting agents, while most of those in favour of the fees believe that private renters should only be required to pay a nominal amount to secure a property.

Poll Shows that the General Public Supports the Ban on Tenant Fees

Poll Shows that the General Public Supports the Ban on Tenant Fees

The charity has found that tenant fees currently cost an average of £337 per person, but ARLA Propertymark claims that around £200 per tenant is a more realistic figure for fees relating to a range of administration, including references, credit and immigration checks, as well as the drawing up of tenancy agreements.

Yesterday, ARLA Propertymark called for tenant referencing to be exempt from the lettings fee ban.

However, the survey by Citizens Advice found that 46% of Britons think that tenants should not pay any admin fees or charges, above a tenancy deposit and first month’s rent when using a letting agent. Meanwhile, 61% supported an outright ban on tenant fees when renting property direct from a landlord.

When asked how much is too much when it comes to tenant fees, almost two thirds of respondents (61%) thought that tenants should pay no more than £50 to secure a property. This figure increases to three quarters (74%) when looking at the results for private landlords.

The findings show that many people are happy with the idea that tenants should pay a small fee to cover legitimate expenses during the tenancy application process, but less than 10% of respondents thought that tenants should have to pay more than £150 to secure a property.

Nick Marr, the Co-Founder of TheHouseShop.com, which commissioned the YouGov research, says: “Our latest YouGov survey results clearly show that there is little public support for the current system where tenants can end up paying hundreds of pounds in admin fees to secure a new property.

“In fact, the majority of people said that tenants should pay a minimal fee of no more than £50.”

He believes that there is plenty of evidence to show that a growing number of tenants are actively seeking out private landlords in an attempt to “avoid the hefty fees charged by some letting agents”.

He adds: “Many tenants are prepared to pay a small fee for legitimate expenses involved in securing a property, such as a professional reference check, as this has become common practice even among private landlords – but vague and undefined admin charges that can total hundreds of pounds are tough to defend in the current market.”

Tenant Referencing Must be Exempt from Lettings Fee Ban, Insists ARLA

Published On: May 3, 2017 at 9:32 am

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ARLA Propertymark insists that tenant referencing must be exempt from the Government’s planned lettings fee ban.

Tenant Referencing Must be Exempt from Lettings Fee Ban, Insists ARLA

Tenant Referencing Must be Exempt from Lettings Fee Ban, Insists ARLA

In a message to member agents yesterday, the organisation’s Chief Executive, David Cox, urged: “Tenant referencing must be exempt from the ban. The reasons for this are manifold. Referencing ensures that tenants do not take on financial commitment which is unsustainable. Referencing reduces the risk of tenants falling into rent arrears, which often results in them being evicted and subject to County Court Judgements.

“This can lead to a drop in credit rating and difficulty sourcing other rental properties or making successful mortgage applications, along with difficulty sourcing low-cost credit from mainstream suppliers.”

He continued: “Quality referencing helps to reduce homelessness.

“While it is frequently said that referencing is available for a few pounds, this is not accurate. Our primary research has shown that agents list referencing as one of the single most time-consuming aspects of the role.

“Referencing is not simply a case of sending a form to a third part; it is frequently a complex process which is in part required by law (Right to Rent checks).”

Cox explained: “Referencing involves ensuring forms are completed properly, making requests to referees and guarantors, checking a tenant’s credit history, liaising with an external referencing company, collecting employment evidence and information from previous landlords, checking passports or other documentation, storing copies securely, and scheduling and carrying out follow-up checks where legally required.”

ARLA Propertymark’s research shows that letting agents take an average of eight hours to complete tenant referencing checks.

The organisation is continuing to press for an extension or suspension of the Government consultation into the proposed lettings fee ban.

It is inviting its members to give their input into the consultation response that will be submitted.

On Friday, during an interview on BBC Radio 4’s Today programme, the Housing Minister, Gavin Barwell, made it clear that the ban would go ahead.

Online database to name and shame rogues in the capital

Published On: April 27, 2017 at 8:42 am

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Rogue landlords and letting agents who wrongfully exploit their tenants will be named on a new online database aimed at protecting the two million private renters in London.

The measure was announced by Mayor of London, Sadiq Khan, who said the database would be built in partnership with London Boroughs.

Criminals

Criminal landlords and letting agents who have been convicted for housing offences will appear on the list. Mr Khan hopes that this will give Londoners greater confidence to rent in the capital, by allowing tenants to check their would-be landlord or agent against this database.

The scheme is due to launch in the coming Autumn and will enable all London councils to easily share information on landlords’ criminal history.

During the next few months, the database will be developed with information from six councils, namely:

  • Newham
  • Brent
  • Camden
  • Southwark
  • Kingston
  • Sutton
Online database to name and shame rogues in the capital

Online database to name and shame rogues in the capital

Support

Speaking about the database, the Mayor said: ‘I refuse to stand by as thousands of Londoners suffer sky-high rents and horrendous living conditions in a city they call home.’

‘Today I have seen first-hand the abysmal conditions that some of London’s private renters are forced to endure as a result of rogue landlords. I want to be clear that the vast majority of landlords treat renters well – but a minority are exploiting their tenants and it’s simply unacceptable. This must stop now.’

‘To help renters, I will be working in partnership with London Boroughs to launch my new ‘name and shame’ database of criminal landlords and letting agents to help Londoners before they rent a property, and to deter dishonest landlords and agents from operating.’

‘I fully support the excellent work councils like Newham are doing to target the worst offenders in their borough. I will continue to support them and other boroughs who use licensing schemes effectively to drive up standards in the private rented sector.’[1]

Easier

Richard Lambert, Chief Executive Officer at the National Landlords Association, observed: ‘The Mayor’s ‘name and shame’ online database brings information on criminal landlords and agents together to make it much easier for renters to find and avoid landlords anyone who has been prosecuted for housing related crimes. Importantly, it is also the first time renters have had a central online tool that should take some of the stress out of reporting potentially criminal housing conditions to their local authority.’[1]

David Cox, Chief Executive at ARLA Propertymark said: ‘ARLA Propertymark welcomes the Mayor’s announcement today of the ‘name and shame’ criminal landlord database. We have campaigned for the government’s database of banned letting agents to be publicly available as, with no public access to the database, how will landlords or tenants know if they are using a banned agent? This online database overcomes that problem and means tenants and landlords in London can rent with the confidence of knowing their agent has not committed any offences.’[1]

[1] http://www.propertyreporter.co.uk/landlords/criminal-landlords-to-be-named-and-shamed-by-mayor.html

Lettings Fee Ban Consultation Should be Extended or Suspended, Insists ARLA

Published On: April 26, 2017 at 9:39 am

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The lettings fee ban consultation should either be extended or suspended until after 8th June’s General Election, insists ARLA Propertymark.

The organisation believes that the consultation period for the proposed ban on letting agent fees charged to tenants should either be extended or suspended until after the vote.

Lettings Fee Ban Consultation Should be Extended or Suspended, Insists ARLA

Lettings Fee Ban Consultation Should be Extended or Suspended, Insists ARLA

ARLA Propertymark’s Chief Exectuive, David Cox, sent a letter to the Secretary of State for Communities and Local Government , Sajid Javid, yesterday, also requesting that workshops on the lettings fee ban be reintroduced as part of the consultation process.

The full letter is here:

“Dear Secretary of State,

As the UK’s largest professional body for the lettings industry with over 9,000 members, ARLA Propertymark requests that you extend the time limit for the consultation to ban letting agent fees in light of the recently announced General Election.

We were pleased that a key part of this consultation process, as set out by DCLG [the Department for Communities and Local Government], was to engage the sector and host a number of workshops throughout the country to discuss the implementation of the fee ban and proposals in the consultation. This was most welcome, as it would have allowed agents to gain clarity from officials on some of the points raised in the document and share their views on the proposals. However, as it is likely the fee ban will become a manifesto pledge in the coming weeks, and therefore a political issue, this work cannot properly take place during purdah; when civil servants will need to take extra care to remain impartial and objective. General Election guidance also makes clear that statements which refer to future intentions of the Government should not be handled by a Department.

Therefore, ARLA Propertymark asks that the Government either extends the consultation for a further period beyond the election, or suspends it until a new Government is in place.

Either way, we request that the consultation does not close until the now cancelled workshops have taken place; as the Department originally committed to do as part of the consultation process.

I look forward to hearing from you in due course.

Yours sincerely,

David Cox

ARLA Propertymark Chief Executive”

Do you agree with Cox’s calls?

In addition, ARLA Propertymark has recently released its Private Rented Sector report for March: /tenants-lower-rents-lettings-fee-ban/

40% of renters feel the marketplace is ‘ruthless and unethical’

Published On: April 26, 2017 at 9:07 am

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A new survey over 2,000 UK adults by online estate agent LetBritain has uncovered the sentiments of those in Britain’s rental market.

According to the data, 40% of UK renters, or 7.21m people, called the marketplace, ‘ruthless and unethical,’ citing unscrupulous letting agents and gazumping as their main irks.

Demand

37% said that the present rental system is unfit for purpose as it cannot meet demand and cannot adapt to the changing speeds in the market. Another 37% said that they have been misled by an estate agent with regards to the competition that they faced from rival renters.

In addition, 38% of UK renters said that they were knowingly advertised properties that were never available, while 31% feel they lost out as their estate agent preferred another tenant.

40% of renters feel the marketplace is 'ruthless and unethical'

40% of renters feel the marketplace is ‘ruthless and unethical’

Given that there are 4.3m rented households across Britain, a large number of tenants are seemingly disillusioned by the process of securing a property through a high street agent.

Fareed Nabir, founder and CEO of LetBritain, noted: ‘Today’s research delivers some revealing insights into the opinions of generation rent. It is obvious that renters up and down the country feel let down by their estate agent – from luring them in with properties that aren’t available to misleading potential tenants about the competition they face, the country’s rental population is suffering at the hands of questionable practices. Clearly a faster, fairer and more transparent system is required to alleviate the time and stress involved in securing a rental property.’[1]

[1] http://www.propertyreporter.co.uk/landlords/uk-renter-sentiment-revealed-in-new-survey.html

 

 

Will ban on agents’ fees be scrapped due to the election?

Published On: April 25, 2017 at 9:05 am

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The Residential Landlords Association has moved to suggest that the upcoming General Election on June 8th could see the proposed ban on letting agents’ fees being shelved.

It is predicted that the Government could be left with new priorities on the back of the election result, which could see the ban abandoned.

Consultation

Just last week, the Department of Communities and Local Government abandoned the workshops with letting agents-which were previously at the heart of the formal consultation process.

Despite the consultation itself continuing, the abandonment of the workshop has prompted questions in the industry.

Policy Director of the Residential Landlords Association, David Smith, wrote on the organisation’s website: ‘There is now a possibility that the entire policy will be lost if a new Housing Minister has other things which capture his attention more strongly.’[1]

Will ban on agents' fees be scrapped due to the election?

Will ban on agents’ fees be scrapped due to the election?

Delayed

Mr Smith’s warning comes alongside a warning highlighting other issues which could be delayed or scrapped depending on the election result.

One of these is the Homelessness Reduction Bill, which has been passed by Parliament but has yet not received Royal Assent required to become law. What’s more, there are regulations that need to be put in place to set up a database of rogue landlords and banning orders.

Smith said: ‘Regulations were expected shortly to start the process of making this happen and the IT project that underpins the database was also in progress. Again these are now trapped without a Minister to push them forward for the next month…The October deadline must now be in doubt.’[1]

In addition, the Housing and Planning Act included provisions about Client Money Protection becoming mandatory for letting agents.

Concluding, Smith noted: ‘There were no further consultations expected in these areas but there were working group reports which needed approving and regulations were again to be drafted to implement the reforms. Yet again this will be at risk of delay.[1]

 

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/4/fees-ban-whole-policy-may-be-lost-thanks-to-election-warns-trade-body