Posts with tag: letting agents

Tenant Demand Falls to Two-Year Low, Reports ARLA

Published On: January 30, 2017 at 9:28 am

Tags: letting agents,private rental sector,rent prices,rental supply,tenant demand

Last month, letting agents recorded the lowest level of tenant demand for two years, according to the latest report from the Association of Residential Letting Agents (ARLA).

Tenant demand

Tenant Demand Falls to Two-Year Low, Reports ARLA

In its December Private Rental Sector report, ARLA found that just 26 prospective tenants were registered per member branch last month. This is the lowest level of tenant demand since records began in January 2015, and is down by 19% on the 32 tenants registered in November 2016.

However, the drop in tenant demand is in line with seasonal expectations. In December 2015, 29 prospective tenants were registered per branch, a figure that was down by 15% on the previous month.

Supply of rental stock

The number of rental properties managed per member branch rose from 185 in November last year to 188 in December. While supply is still very low, this figure indicates a broadly positive picture for tenants in the short-term, believes ARLA.

Following last year’s tax hikes for landlords, including the Stamp Duty surcharge and changes to Capital Gains Tax, almost half (46%) of letting agents expect to see rental supply decline this year.

Rent prices

The amount of letting agents witnessing rent increases for tenants grew by three percentage points in December, to 19%.

In December the previous year, the number of rent rises fell month-on-month, from 23% in November 2015 to a similar 18%.

The Managing Director of ARLA, David Cox, comments on the findings: “Although December’s figures could indicate a bright future for renters, with the Government’s impending ban on letting agent fees, the future is actually rather bleak for the UK’s renters.

“Although we saw demand fall and supply rise slightly last month, these are in line with seasonal expectations and is what we expect to see in December. If the Government goes ahead with an outright ban on fees, tenants will unfortunately be the ultimate victims, as costs are recouped for the vital services fees cover.”

Landlords, have you witnessed a decrease in tenant demand over the past month?

Government to Consult on Letting Agent Fee Ban in Spring, Confirms Housing Minister

Published On: January 27, 2017 at 11:31 am

Author: Em Morley

Categories: Property News

Tags: letting agent fees,letting agents,lettings fee ban,tenants

The Government will consult on the letting agent fee ban for tenants in spring, the Housing Minister, Gavin Barwell, has confirmed.

Government to Consult on Letting Agent Fee Ban in Spring, Confirms Housing Minister

Barwell responded to requests from John Healey, the Shadow Secretary of State for Housing, to find out when the Government plans to “bring forward legislative proposals to ban letting fees for tenants” and when it plans for “that ban to come into effect”.

The questions follow Chancellor Philip Hammond’s announcement in last year’s Autumn Statement that letting agent fees charged to tenants will be banned in England.

The Housing Minister has previously expressed his support of the ban.

Barwell responded to Healey’s requests: “As my Noble Friend, Lord Bourne of Aberystwyth, said in the House of Lords on 19^th January 2017, the Government is committed to introducing legislation as soon as possible to implement the ban on letting agent fees for tenants.

“We will consult in the spring on the detail of the ban and will consider the views of property agencies, landlords, tenants and other stakeholders before introducing legislation. Impact assessments will follow the consultation and support the detail of banning fees to tenants.”

Barwell will need to take into account the views of other MPs, too, with one Conservative MP insisting that the letting agent fee ban will push rents up, making it even more difficult for tenants living in the private rental sector.

Nevertheless, tenants have recently urged the Government not to forget their promises concerning the letting agent fee ban, while lobby group Generation Rent believes the ban to be great news for renters.

While it appears that the letting agent fee ban will indeed be introduced in England, the Welsh Assembly is currently making a decision on whether to bring in similar rules for letting agents.

We will keep you up to date with developments on the lettings fee ban for tenants and its effects on the sector at LandlordNews.co.uk.

Is the Right to Rent Scheme Racist?

Published On: January 24, 2017 at 11:00 am

Author: Em Morley

Categories: Landlord News

Tags: immigration,landlord law,letting agents,racism,Right to Rent

A campaign group has been set up opposing the Right to Rent scheme on the grounds that it is racist.

The group, called Homes Not Borders, has launched a campaigning website after initially setting up a Twitter account last October. It is now threatening direct action against the “racist” legislation.

Under the Right to Rent scheme, landlords or their letting agents are legally obliged to check the immigration status of all prospective tenants. Those that knowingly let to illegal migrants could face criminal penalties.

Our guide, created in association with the Home Office, comprehensively details how landlords and agents can comply with the scheme: /home-office-reinforces-landlord-responsibilities-right-rent/

Homes Not Borders claims to be made up of people who have been directly affected by the Right to Rent scheme, insisting that the legislation is intensifying discrimination of migrants.

Is the Right to Rent Scheme Racist?

It highlights research from the Joint Council for the Welfare of Immigrants into the pilot scheme in 2015, which found that 65% of landlords would be less likely to let to someone who required a little time to provide documentation, while 42% would be less likely to consider letting to someone who does not have a British passport.

More worryingly, 27% would be less likely to open discussions with a prospective tenant who “had a name which doesn’t sound British” or “had a foreign accent”.

Before the scheme rolled out nationally on 1^st February last year, concerns were raised over how the scheme could be considered racist.

A statement on the Homes Not Borders website reads: “The Right to Rent will only intensify the discrimination that migrants and people of colour face in their search for housing, exacerbating the housing crisis for particularly vulnerable communities.

“Homes Not Borders are building a movement to abolish the racist Right to Rent. As people directly affected by this policy, we are organising our communities through building relationships, developing bonds of solidarity work across the diverse, migrant, non-migrant communities of colour. We will use all tools at our disposal, including direct action.”

It adds: “This racist Right to Rent must be challenged. It must be resisted. It must be abolished.”

Do you believe the Right to Rent scheme to be racist, or induce racism in the private rental sector?

Letting Agents in Essex Fined Over £14,000 for Failing to Display Fees

Published On: January 11, 2017 at 11:27 am

Author: Em Morley

Categories: Property News

Tags: letting agent fees,letting agents,private rental sector,rogue letting agents

Several letting agents in one borough of Essex have been fined over £14,000 for failing to display fees.

Letting Agents in Essex Fined Over £14,000 for Failing to Display Fees

Thurrock Council embarked on a crackdown to expose letting agents that do not comply with the law to display fees. It says the money raised by the fines will be used for further enforcement.

Following the launch of its crackdown last summer, the council visited 33 agencies and subsequently issued 13 with a notice of intent.

It has now issued fines totalling £14,100 to agents failing to comply with consumer rights laws that require agents to display fees, the redress scheme they belong to and whether they offer Client Money Protection.

One estate agent, Edward Clark Estates, appealed the penalty charge of £3,250 on the grounds that a member of staff was on holiday at the time the advice letter was sent and the amount of the penalty was unreasonable.

However, the court responsible for the case – the General Regulatory Chamber – dismissed these arguments and ruled in favour of Thurrock Council.

Councillor Rob Gledhill, Leader of the council and Portfolio Holder for Housing, says: “It is right that the council is taking action on those letting agents who flout the law and are not supplying the residents of Thurrock a high level of service.

“The legislation was passed in 2015, so there is no excuse for not meeting the requirements. Even after our officers visited these agents, some decided not to take the action needed.

“Well, now they face the consequences. The rental market in Thurrock is a very lucrative one, so I want to make sure letting agents are doing their part. The £14,100 raised in fines will be used to fund further enforcement activity by our Trading Standards team to help protect Thurrock residents.”

If you use a letting agent to manage your property portfolio, be sure that it complies with the rules to display fees before entrusting your assets with it.

Can a letting agent save you £2,000 per year?

Published On: January 5, 2017 at 9:56 am

Author: Em Morley

Categories: Landlord News

Tags: buy to let investors,Buy-to-Let,landlords,letting agents

Interesting new research has revealed nearly half of private sector landlords use a letting agent as it gives them peace of mind. What’s more, around a quarter communicate with them on a weekly basis.

Data from the investigation conducted by Endsleigh also discovered that agents can assist landlords in saving up to £2,000 a year by keeping their void periods down.

Peace of mind

41% of people questioned said they feel the main benefit of an agent is the peace of mind they provide.

On the other hand, investors who felt that they could save money by not using a letting agent observed the average amount they weren’t spending on fees totalled £159 per month.

However, analysis of rental income and void periods for landlords with and without letting agents suggests that agents saved clients an average of £1,910 per year.

More than two-thirds (76%) of respondents said that their letting agents were pro-active in helping that find tenants and helping with legal and financial matters.

Can a letting agent save you £2,000 per year?

Relationship

In addition, the survey indicates that the relationship between letting agents and landlords are not solely for financial benefits.

Of those landlords using an agent, 50% did so due to their local knowledge while almost 40% were attracted to their overall service.

Will Parker, associate director and chartered surveyor at H&H Land, says the figure that agents can save is extremely high.

Parker noted: ‘In the past there have been widespread misconceptions amongst landlords about the value for money offered by letting agents. The survey suggests that in these cases letting agents can in fact save their clients an average of almost £2000, which is certainly a very significant saving and one worth considering.’[1]

[1] http://www.propertywire.com/news/europe/good-letting-agents-can-save-landlord-almost-2000-month/

Database of Rogue Landlords and Letting Agents to be Introduced on 1st October

Published On: January 3, 2017 at 10:23 am

Author: Em Morley

Categories: Landlord News

Tags: database of rogue landlords,letting agent fees,letting agents,rogue landlords

The Government’s database of rogue landlord and letting agents will be introduced on 1^st October, it has been confirmed.

Recent discussions regarding the database also revealed that it could include letting agents that continue to charge fees to tenants once the ban comes into force.

Answering written questions put forward by Liberal Democrat peer Baroness Grender, Government minister Lord Bourne did not rule this out. He also strongly implied that agents that continue to charge fees after the ban could be criminalised.

Database of Rogue Landlords and Letting Agents to be Introduced on 1st October

Baroness Grender, whose private member’s Renters’ Rights Bill is currently going through Parliament and proposed a ban on letting agent fees ahead of the Autumn Statement announcement, asked: “Will letting agents that continue to charge fees after the ban announced in the Autumn Statement has been introduced be listed on the database of rogue landlords and property agents provided for in the Housing and Planning Act 2016?”

Lord Bourne said that the Government is consulting on “which criminal offences should be regarded as banning order offences and be included on the database”.

Baroness Grender followed with another question on whether the ban would “include all fees” and whether it would apply throughout a tenant’s residency.

Lord Bourne responded: “While most letting and managing agents provide a good service, a minority of agents offer a poor service and engage in unacceptable practices.

“The Government is keen to see tenants receiving a good service from their landlord and letting agent, and that is why we announced in the Autumn Statement a ban on letting agent fees paid by tenants in England. This will support better competition in the market and bring down overall costs.”

He added: “Tenants will be better able to search around for properties that suit their budget and there will be no hidden costs. This may be preferable to tenants being hit with upfront charges that can be difficult for them to afford.

“The Government will consult in the New Year on the detail of how best to implement a ban.”

Baroness Grender then asked whether the database of rogue landlords and letting agents would include those who have committed an offence or only those who have been banned.

Lord Bourne replied: “The database of rogue landlords and property agents will contain details of landlords and property agents who have been served with a banning order, or have been convicted of a banning order offence, or have received two or more civil penalties.”

The database, which will be introduced in less than ten months’ time, has come under heavy criticism because, as things stand, it will only be accessible to local and central government, and not to members of the public or agents wishing to recruit new members of staff, for example.

Meanwhile, a ban on letting agent fees in Wales could arrive soon, with two backbench Labour AMs, Jenny Rathbone and Mike Hedges, applying to take part in a ballot that, if they win, will allow them to propose a bill to ban the fees.

Hedges believes that letting agent fees are “a tax on some of the poorest people in society who are engaged in private rented accommodation”.

A Welsh Government spokesperson said: “We are happy to consider how legislation on this might work. We want to look at the evidence from Scotland and see wider consultation to ensure that a ban on fees does not push rental costs up.”