Posts with tag: private rental sector

Should more be done to improve renting?

Published On: January 12, 2017 at 9:56 am

Tags: private rental sector,renters,renting,tenancies,tenancy agreements

An industry peer has stated that he feels more needs to be done to improve renting, as opposed to focusing solely on making properties more affordable for those looking to buy.

Peter Girling, chairman of Girlings Retirement Rentals, has said he wants to see longer private tenancies introduced, in order to give renters ‘greater security of tenure.’

Tenancies

Mr Girling said: ‘In our latest customer survey carried out in October 2016, we found that 85% of people wanted a tenancy of 12 months or more and 71% said that the security of assured tenancies we offer that enable residents to rent their property for as long as they choose, mattered most to them when making the decision to rent.’[1]

His comments come only days after Citizens Advice said that it will be heightening its campaign for longer tenancies, in an attempt to overhaul the sector.

According to figures, 39% of people living with their children in rented accommodation have a tenancy agreement of just six months or less, which creates uncertainty.

Should more be done to improve renting?

Longer agreements

In addition, 34% of private renters want their tenancy to be longer, with this number rising to nearly 40% for those with children. Families now account for nearly 40% of the private rented sector.

Concluding, Mr Girling noted: ‘Like Citizens Advice, we believe that should longer tenancies become more widely available for all sectors of the market – from young professionals, to families and older people – this may remove the uncertainty people face and give them more reassurance and greater security of tenure to plan for the future.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/longer-term-tenancies-needed-to-enable-tenants-to-plan-for-the-future

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.

Keynote Speakers Announced for the ARLA 2017 Conference

Published On: December 30, 2016 at 10:05 am

Author: Em Morley

Categories: Landlord News

Tags: ARLA conference,events,letting agents,private rental sector

The keynote speakers have been announced for the ARLA 2017 conference, which will be held on Tuesday 28^th March 2017.

Keynote Speakers Announced for the ARLA 2017 Conference

The Association of Residential Letting Agents has secured former foreign secretary and leader of the opposition Lord William Hague, as well as national broadcaster and ITV political editor Robert Peston as its keynote speakers.

The speakers will assess the impact of moving towards Brexit and the triggering of Article 50 at the ARLA 2017 conference, as well as the forthcoming ban on letting agent fees for tenants. The leader of the campaign to ban agents charging fees to tenants, Vicky Spratt, will take part in a debate on the issue.

The ARLA 2017 conference, which will take place at the world-famous ExCel London, is the largest and most attended event in the private rental sector.

For attendees, it is a great opportunity to get up to date with important industry news, keep abreast of changing legislation and network with peers from across the sector.

Early bird tickets are now on sale for those wishing to secure their place at the event. The full agenda is available here: www.arlaconference.co.uk

The President of ARLA, Nik Madan, says: “We’re really looking forward to welcoming everyone at next year’s event. We expect to see a lot of key industry figures and are pleased to have secured such fantastic speakers.

“The conference will be packed with vital information and updates, and is a great opportunity for visitors and delegates to seek out new innovations, products and services for their businesses. This is our second year at ExCel and, last year, the conference attracted in excess of 900 delegates – a record number. This year, we expect to top that record and host the biggest and best ARLA conference to date.”

Remember that Landlord News continues to keep you updated on the latest industry advice and information. Sign up for our handy monthly newsletter here: /register/

Housing Minister Expresses Support for Letting Agent Fee Ban

Published On: December 16, 2016 at 11:47 am

Author: Em Morley

Categories: Property News

Tags: homelessness,letting agent fee ban,letting agent fees,lettings fees,private rental sector

The Housing Minister, Gavin Barwell, has expressed his support for the forthcoming letting agent fee ban, which was announced during the Autumn Statement.

During a debate in the House of Commons on homelessness, MPs expressed concerns over the high cost of renting.

Barwell, who called homelessness a “moral stain”, said the Government is attempting to “deal with the up-front cost of accessing the private rented sector”.

Housing Minister Expresses Support for Letting Agent Fee Ban

He continued: “In terms of dealing with statutory homelessness, access to the private rented sector is key. That is why the Chancellor’s announcement in the Autumn Statement about letting agent fees – I am sure the opposition welcome that announcement – is an important step.”

However, back in September this year, he rejected the idea of a letting agent fee ban, saying it was a bad idea: “Landlords would pass costs to tenants via rent. We’re looking at other ways to cut upfront costs and raise standards.”

The Shadow Secretary of State for Housing, John Healey, who was the last housing minister under Labour, moved this week’s debate.

He pointed out that a record number of homeless people are now sleeping rough, and over 10,000 children will spend Christmas Day in temporary accommodation. Remember that if you want to help fight homelessness, you can join in Just Landlords’ Christmas competition in association with Shelter: https://www.justlandlords.co.uk/news/enter-christmas-competition-help-shelter/

Healey said there was a lack of action to help private tenants, “while eviction or default from a private tenancy is now the biggest single cause of homelessness”.

During the debate, the private rental sector was repeatedly mentioned.

The Conservative MP for Colchester, Will Quince, believes the private rental sector is part of the problem: “We know that the largest cause of homelessness is the ending of a tenancy, largely via a section 21 notice.

“The system – whereby an individual comes to their council for assistance at the earliest possible opportunity when they get into trouble, and the council turns them away and says: ‘Come back when the bailiffs are knocking on your door’, at which point, the person has arrears and a County Court Judgement against their name, and will never again be able to rent in the private rented sector – is failing those individuals and it has to stop.”

Quince insists that the Government should introduce Help to Rent schemes, similar to its Help to Buy initiatives.

The former shadow housing minister, Jack Dromey, spoke of a “rapidly growing private rented sector, characterised by soaring rents, with the average tenant paying £2,000 more over the past five years, insecurity, and often poor accommodation.”

Conservative MP Bob Blackman also called for a national scheme where prospective tenants could get deposits, while the Shadow Housing Minister, Andy Slaughter, said the Government has a “responsibility” to legislate for longer tenancies and rent controls.

What do you think of the proposed measures, particularly the letting agent fee ban?

Majority of People Want the Lettings Industry to be Regulated

Published On: November 18, 2016 at 10:34 am

Author: Em Morley

Categories: Landlord News

Tags: lettings industry,private rental sector,regulations,rent controls,tenants

The majority of people want the lettings industry to be regulated, according to a survey for the BBC’s popular Victoria Derbyshire show.

76% of people believe the lettings industry should face tougher regulation, including controls over letting agent fees, lengths of tenancies, deposits and inventory checks.

Majority of People Want the Lettings Industry to be Regulated

In addition, 74% want rent controls in the private rental sector.

Yesterday’s Victoria Derbyshire programme discussed the lettings industry and the results of its study.

The survey, of 1,002 people, also found that 69% believe rent rises when a tenancy is renewed should be capped, while 63% want the standard minimum lettings term to be increased to 12 months.

The accompanying BBC news story looks at three case studies, including a family with three children who have moved ten times in the last 12 years, and a tenant who was given 28 days’ notice to leave his home of five years, but struggled to find the money needed for a deposit, rent in advance, and letting agent fees for his next rental home.

The Chairman of the Residential Landlords Association (RLA), Alan Ward, told the BBC that although the idea of rent controls may seem “attractive”, they would be a “disaster” in reality.

He adds: “All experience of them shows that they lead to landlords cutting investment or quitting the market, reducing both quality and choice for tenants. The way to moderate rents is to encourage investment and boost supply.

“There are already well over 400 regulations affecting the private rented sector, and the actions of successive governments is raising the cost of renting.”

He continues: “The problem is not about a lack of regulations, but proper enforcement of them, and we support local authorities in their efforts to root out criminal landlords.”

A spokesperson for the Department for Communities and Local Government also says: “This Government is committed to creating a bigger, better private rented sector, with up to £10 billion in Government-backed guarantees to build more quality homes for rent.

“We are doing this without the need for excessive state regulation that would push up prices and make it far harder for people to find somewhere to rent.”

The Government’s blacklist of rogue landlords, which will also be controlled by local authorities, will be in operation from autumn 2017: /blacklist-rogue-landlords-operation-autumn-2017/

The Valuation Office Agency released statistics on the private rental sector in England yesterday. It found that the median monthly rent over the past year was £650. London had the highest, at £1,473, while the North East is the lowest, at £480.

Mortgage chief urges Government to abolish stamp duty

Published On: November 10, 2016 at 11:28 am

Author: Em Morley

Categories: Finance News

Tags: Brexit,landlords,private rental sector,Stamp Duty

Another leading industry peer has urged the Government to show more support for the private rental sector by removing recently introduced tax changes.

Laura Lamb, director of The Mortgage Company, penned an article in the Mortgage Finance Gazette stating that she would like to see the removal of the 3% stamp duty land tax charges on buy-to-let property.

Buy-to-let mortgage drops

Lamb feels that sales of buy-to-let mortgages have fallen sharply since the tax changes-coinciding with the shortage of the homes in the lettings sector.

In her article, Lamb noted: ‘My business has seen a sharp decline in the number of clients buying to let and also doing let to buy. Some may attribute this to Brexit but it is my opinion that most of this is due to the massive changes in the buy to let regulation and taxation.’[1]

‘There is always going to be a need for rented properties, whether you live in one on a short-term basis or more long term. Punishing investors who own one or two properties that simply want to plan for their retirement and offer reasonable rents to good tenants is not the answer,’ she added.[1]

Mortgage chief urges Government to abolish stamp duty

Portfolios

In addition, Lamb feels that the surcharge should be aimed at landlords owning more than three buy-to-let properties, instead of one. This, she feels, will see professional landlords bearing the burden of extra tax, instead of amateur ones.

She warns: ‘Responsible lending is very important and I fully support that but stress-testing mortgages rates at 5.5% interest rates with a rent cover of 145% is just ridiculous and will massively limit lending.’[1]

‘I would focus more attention on offering more assistance to those trying to buy. The Government has introduced the Help to Buy ISA but it’s only available if you are purchasing a property under £250,000. Most first-time buyers in London and the south are looking at purchase prices in excess of this so they instantly lose out,’ she concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/11/hands-off-buy-to-let-mortgage-chief-tells-the-government