Posts with tag: letting agents

Deadline to register for Rent Smart Wales is tomorrow

Published On: November 22, 2016 at 10:04 am

Tags: investors in Wales,landlords,letting agents,Rent Smart Wales

There are less than 24 hours to go until landlords in Wales must sign up to Rent Smart Wales.

The scheme, designed to push up quality of rented accommodation in the country, becomes mandatory tomorrow, 23^rd November.

Licensing Scheme

Rent Smart Wales is a new licensing and registration scheme that went live last year. It represents a large change for the private rental sector in the country.

Landlords and letting agents must register their properties and undergo training to gain a licence, should they wish to self-manage their investment.

Investors have until midnight tonight to comply with the new legislation, before it becomes an offence to manage or to let a property without the necessary licence.

Deadline to register for Rent Smart Wales is tomorrow

Registration

David Cox, Managing Director at the Association of Residential Letting Agents (ARLA) noted: ‘The law means landlords in Wales-and those in the rest of the UK who own properties in Wales-need to register themselves and their properties with Rent Smart Wales, as well as being suitably trained and licensed to carry out letting or property management activities.’[1]

‘If landlords do not wish to get trained, they need to arrange for a trained and licensed agent to manage their properties on their behalf. If landlords and agents find themselves unlicensed when the deadline arrives on 23 November, they will be unable to practice,’ he added.[1]

Landlords and agents can find out more about the Rent Smart Wales scheme by visiting the Government website.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/deadline-looms-for-landlords-to-register-in-wales

Letting Agents Profiting from Spiralling Fees, Believes Student Tenant Site

Published On: November 15, 2016 at 9:31 am

Author: Em Morley

Categories: Landlord News

Tags: letting agent fees,letting agents,rent prices,tenants

Letting agents are profiting from charging spiralling fees for “no extra work”, believes a student tenant website.

A study by StudentTenant.com – a free-to-list student lettings platform – highlights the extent to which letting agents are profiting from higher rent prices.

Their “antiquated model” of charging a high commission to let a property still allows them to pocket sky-high fees, without conducting extra work, insists the organisation.

Letting Agents Profiting from Spiralling Fees, Believes Student Tenant Site

In the last 12 months, rent prices have risen to an average of £901 per month – up by 3%, which is higher than the current rate of inflation.

The lowest rents can be found in the North East of England, at an average of £530 a month. However, in London and the South East, it’s a completely different story…

The cheapest London borough for private tenants is Croydon, where the average rent is £1,170 per month. In Westminster, this rises to a huge £2,241.

Although the problem is considerably worse further south, rent rises have been felt across the country.

The UK’s greatest increase over the past year was in Lambeth, where rents rose by 12% to reach £2,874.

Only one part of the UK, Scotland, has seen a decrease in rents over the past year.

Some London boroughs have experienced rent declines, however, with Haringey seeing the greatest fall, of 6.4%. Prices are also down in Brent, Bromley, Kingston and Chelsea.

With the majority of regions and London boroughs seeing rent price growth, letting agents will also have experienced a bump in their earnings, StudentTenant.com points out.

The firm’s research puts the average letting agent fee at 12.7% of the total rent for the year, meaning the typical fee across the UK is over £1,300. In the South East, it’s more than £1,500, while those in Westminster charge a whopping £3,415.

Following a bumper rent price rise, letting agents in Lambeth can now charge £345 more than at this time last year.

But is this justified, asks the group.

“It’s really hard to justify the amount that a typical high street letting agent charges in the first place, let alone above inflation increases in most parts of the country,” insists its Managing Director, Danielle Cullen. “There’s a significant shortage of good rental stock, which means higher rents and yields, which can be great news for landlords, but not so great for tenants.”

She adds: “But when much of that gain is eroded by greedy agents taking a fatter and fatter chunk of it, 12.7% of what would otherwise be the landlord’s income in effect, then buy-to-let investors might want to think twice about resorting to an old fashioned high street-based rental firm.”

In order to protect tenants from spiralling fees, Citizens Advice has called on landlords to cover letting agent costs. Do you think this is a good idea? And would this deter you even more from using a high street service?

Only 2 weeks left to register for Rent Smart Wales

Published On: November 8, 2016 at 2:32 pm

Author: Em Morley

Categories: Landlord News

Tags: landlords,landlords in Wales,letting agents,Rent Smart Wales,rental accommodation

Landlords in Wales have just two weeks to sign up for Rent Smart Wales, before the scheme becomes a mandatory requirement.

A new registration and licensing system, Rent Smart Wales represents a large change for the private rental sector. The scheme is intended to push up the quality of rental accommodation in the country and went live last year.

Rent Smart Wales requirements

The scheme obliges all landlords and letting agents to register their investment properties and to undergo training to gain a licence, should an investor wish to self-manage their property.

Now, only 2 weeks remain until the 23^rd November deadline, after which it becomes an offence to either let or manage a property without the sufficient licence.

Designed to improve standards in the private rental sector in the principality, Rent Smart Wales offers training courses and information for landlords. In addition, it gives local councils a greater understanding of where properties are located.

Only 2 weeks left to register for Rent Smart Wales

Registration

David Cox, Managing Director, Association of Residential Letting Agents, observed: ‘The law means landlords in Wales-and those in the rest of the UK who own properties in Wales-need to register themselves and their properties with Rent Smart Wales, as well as being suitably trained and licensed to carry out letting or property management activities.’[1]

‘If landlords do not wish to get trained, they need to arrange for a trained and licensed agent to manage their properties on their behalf,’ he continued.[1]

However, concern is growing that a number of buy-to-let landlords and letting agents in Wales have not signed up for Rent Smart Wales.

Cox notes: ‘Given the 23^rd November deadline for registration and licensing is only two weeks away, it’s concerning that it appears only about one quarter of agents are currently licensed.’[1]

‘If landlords and agents find themselves unlicensed when the deadline arrives on 23^rd November, they will be unable to practice, so it’s important to act to soon to ensure the necessary qualifications and other regulatory requirements have been undertaken before then, in order to comply with the legislation,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/deadline-looms-for-landlords-to-register-in-wales

New Provisions Under Immigration Act for Landlords and Letting Agents

Published On: November 3, 2016 at 9:37 am

Author: Em Morley

Categories: Landlord News

Tags: immigration act,immigration checks,letting agents,Right to Rent,right to rent scheme

Earlier this week, the Home Office announced new provisions under the Immigration Act 2016 for landlords and letting agents.

Failure to comply with the Right to Rent scheme will become a criminal offence for landlords and letting agents on 1^st December 2016.

The Home Office explained that the new criminal offences have been created to deal with rogue landlords and letting agents that knowingly, or with reasonable cause to believe, let to illegal migrants.

Under the new provisions, it will also be easier to evict illegal migrant tenants.

New Provisions Under Immigration Act for Landlords and Letting Agents

The Right to Rent scheme was first implemented in parts of the West Midlands on 1^st October 2014, before being expanded across the rest of England from 1^st February 2016. The Home Office claims that it will be extended to the rest of the UK in “due course”.

Under the civil penalties currently in place, landlords or letting agents that fail to make the relevant immigration checks are liable for a fine of up to £3,000 per illegal migrant tenant.

At present, if a landlord finds that an existing tenant is an illegal migrant, they cannot evict them from the property.

The new provisions will enable landlords to evict illegal migrant tenants more easily, and in some circumstances, without a court order. Landlords will obtain a notice issued by the Home Office, which confirms that the tenant is disqualified from renting in the UK as a result of their immigration status. On receipt of this, the landlord will be expected to take action to ensure that the illegal migrant leaves the property.

The Government has also introduced four new criminal offences to target rogue landlords and letting agents that exploit migrants and consistently flout the law by failing to conduct Right to Rent checks, or failing to take steps to remove illegal migrants from their property.

These landlords or agents may face a fine, up to five years’ imprisonment, both, or a fine and imprisonment and further sanctions under the Proceeds of Crime Act.

However, the Act also offers a defence against the offences for landlords who have taken reasonable steps within a reasonable timeframe in seeking to terminate a tenancy involving an illegal migrant.

The Immigration Minister, James Brokenshire, comments on the new provisions: “We are clear that illegal immigrants should not be able to access or remain in private rented accommodation, preventing lawful residents from finding a home.

“We know the vast majority of landlords are diligent in their responsibilities when it comes to their tenants, and we want to help them to be able to evict illegal immigrants more easily.

“But unscrupulous landlords and agents who exploit migrants and who repeatedly fail to carry out Right to Rent checks or fail to take steps to remove illegal immigrants from their property will find they could now face going to jail.”

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, also responds to the announcement: “We are pleased to have a date for implementation; this goes some way towards addressing the issues revealed by Right to Rent checks since their implementation earlier in the year. If these measures prove to be effective in tackling rogue landlords who offer overcrowded and poor quality housing, it will be positive.

“Letting agents need to remember the new rules mean if they do flout the law, their company will be liable to pay a £3,000 civil penalty per occupier who is an illegal over-stayer, and they may be personally liable to an unlimited fine, as well as the potential of up to five years in prison.”

The Government’s factsheet can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/537218/Immigration_Act_-_Part_2_-_Residential_Tenancies.pdf

Landlords want mandatory client money protection

Published On: October 26, 2016 at 1:39 pm

Author: Em Morley

Categories: Landlord News

Tags: Client Money Protection,landlords,letting a property,letting agents

New research has revealed over four out of five landlords believe that client money protection (CMP) should be made compulsory when using a letting agent to rent out property.

The investigation., conducted by Total Landlord Insurance, asked organisations to provide a response on whether they think CMP should be made mandatory in 2016. Of 85% of landlords who use a letting agent, 81% think it should be made compulsory.

Risk

Recent data released by YouGov revealed that hundreds of thousands of pounds of landlord and tenants’ cash are at risk, as they are not protected by CMP.

At present, letting agents in the UK currently hold more than £2.7bn of landlord and tenants’ money in the form of rent and tenancy deposits. However, it is believed that around one in five tenants will not be able to recover funds should their agent steal them, or uses it for fraudulent purposes.

Steve Barnes, associate director at Hamilton Fraser, noted: ‘Client money protection, like redress scheme membership, should be compulsory for this sector. This change would give the consumer added protection and ultimately raise standards throughout the industry.’[1]

Landlords want mandatory client money protection

Group

The Government has moved to establish a working group with colleagues from the House of Lords to assess if CMP schemes should be made mandatory. This is being led by Liberal Democrat Peer Lord Palmer and Labour’s Baroness Hayter.

These schemes, which hold cash independently, are voluntary, with the Government estimating that only 60-80% of agents use them.

Sean Hooker, head of redress at the Property Redress Scheme, said: ‘With an increasingly growing rental sector and the money involved, the risk of serious economic damage that could easily occur without adequate safeguards, is something we cannot be complacent about.’[1]

‘These figures clearly show that landlords see this protection as essential to ensure they deal with safe and professional agents that they and their tenants can trust,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/landlords-overwhelmingly-support-compulsory-client-money-protection

Rental Housing Supply Rises to 18-Month High

Published On: October 24, 2016 at 9:13 am

Author: Em Morley

Categories: Property News

Tags: letting agents,private rental sector,rental demand,rental housing,rental property,rental supply,tenants

Rental housing supply rose to an 18-month high in September, according to the latest study by the Association of Residential Letting Agents (ARLA).

Rental housing supply

In September, letting agents managed an average of 193 properties per branch, up from 183 in August and the highest level recorded since April 2015, when there were also 193 rental properties registered per branch.

Rental Housing Supply Rises to 18-Month High

Rental housing supply had dropped to lows of 171 so far this year. Therefore, the jump in September paints a positive picture for tenants, amid industry-wide expectations of post-Brexit uncertainty.

Demand for rental property

Demand for rental property also grew in September, with 40 prospective tenants registered per letting agent branch, compared with 37 in the previous month.

In line with expectations, demand for rental property has been steadily increasing since the start of the year and is now at the highest level since February 2015, when there were also 40 hopeful tenants registered per branch.

Rent price growth

The amount of letting agents recording rent price growth is at the lowest level so far this year, with just 24% of agents reporting increases for tenants.

This is down by 3% on August, when 27% of agents saw rent rises, and 8% down on this year’s high of 32% in March.

The Managing Director of ARLA, David Cox, comments on the figures: “This month’s findings paint a really positive picture for renters. Although demand is rising, we’ve seen this happen gradually over the course of the year, and would expect it to slow again in line with seasonal trends over the next few months.

“On the other hand, the supply of rental stock has risen astronomically, which suggests it’s not quite right that landlords are pulling out of the market as a result of Brexit. This is supported in our findings, which reveal the number of landlords selling their buy-to-let properties hasn’t changed since April, when three landlords were selling up per branch.”

He continues: “It’s good to see less landlords hiking rents this month, but 24% is still too high. The cost of renting is already high in many parts of the country, and until the Government converts its pledges and promises into bricks and mortar, we won’t see renters reach a position where they’re able to save to get on the housing ladder. It will be interesting to see how this is tackled in the upcoming Autumn Statement.”

Tenants may be disappointed to learn that the Government’s Help to Buy scheme will be scrapped in December this year.

However, the new Housing Minister, Gavin Barwell, has spoken out in support of the private rental sector, pledging to make renting more affordable and stable for the nation’s tenants.