Posts with tag: private rental sector

Welsh Housing Bill Will Make it More Difficult for Vulnerable Tenants to Access Homes

Published On: December 4, 2015 at 1:07 pm

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The Residential Landlords Association (RLA) has voiced its concerns that vulnerable tenants will find it more difficult to access accommodation after the Welsh government’s Renting Homes Bill was passed.

Welsh Housing Bill Will Make it More Difficult for Vulnerable Tenants to Access Homes

Welsh Housing Bill Will Make it More Difficult for Vulnerable Tenants to Access Homes

The bill introduces huge changes to the way the private rental sector is operated in Wales. The RLA believes that while the bill was being passed, the government missed an opportunity to improve access to housing for vulnerable renters.

Prior to the bill, private tenants had to be offered a minimum of a six-month tenancy. The Renting Homes Bill originally planned to abolish this, known as the six-month moratorium.

Explaining this decision, Lesley Griffiths AM, the Minister for Communities and Tackling Poverty, noted that the moratorium prevented landlords “from offering tenancies to people they deem to be high risk”. She said the situation concerned her “greatly”1.

The government reversed its decision as the bill passed, admitting that this will make it more difficult for vulnerable tenants to access rental homes.

Now that the bill has completed its passing through the Assembly, the RLA has expressed its concern that the minister did not meet with it or any other landlord organisation, despite repeated requests since her appointment.

The RLA Vice Chairman for Wales, Douglas Haig, comments: “Ministers in Cardiff will now be implementing a set of radical changes to the private rented sector that will cause many landlords to consider if it is worth continuing in the market. At a time when we need more homes to rent, this will only make it more difficult still, especially for young and vulnerable people to access the homes they need.

“Given this, it is deeply concerning that the minister responsible for housing has so far failed to meet personally with bodies representing landlords to understand the true impact of the Government’s policies.

“Even at this late stage, we urge the minister to find time to meet to discuss how we can work constructively to meet our shared agenda to kick out the criminal landlords, whilst supporting the vast majority of good landlords to provide the homes we need.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/welsh-housing-reforms-a-missed-opportunity

Majority of Letting Agents Could be Breaching Law on Fees

Published On: November 24, 2015 at 4:04 pm

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Last month, members of the Home Sweet Home group went undercover in Brighton and Hove to examine letting agents’ compliance of consumer rights law. Their findings are shocking.

Majority of Letting Agents Could be Breaching Law on Fees

Majority of Letting Agents Could be Breaching Law on Fees

The team of local campaigners found that 80% of letting agents are potentially in breach of consumer rights laws.

Home Sweet Home visited 67 letting agents, finding that 55 offices may not be complying with the Consumer Rights Act 2015, which was enforced on 1st October.

Agents that do not comply with the new rules could face council action and a fine of £5,000.

The group assessed the agents on their membership of Government-approved deposit protection and dispute resolution schemes, and checked the offices for a prominent display of the fees they charge.

Of the 67 offices inspected, just 12 appeared to be compliant with all three. The biggest failure regarded fees, with only 15 displaying a full list of fees in a place that it is likely to be seen.

With so many agents apparently in breach of the regulations, Home Sweet Home plans to contact the branches by letter, stating the changes to the law and recommending best practice regarding the display of fees.

The letters will be hand-delivered alongside Home Sweet Home certificates for the 12 agents that passed all three criteria.

Campaign Leader of Home Sweet Home, Summer Dean, says: “Our aim is to uphold the letting agents’ legal obligation to provide transparency to tenants regarding the often hidden fees they have to pay. Our longer term goal is to create a more open and accountable renting culture in Brighton and Hove, so that people can start to see rising standards here.”1

The group is made up of local councillors, Labour Party members and renters hoping to raise the profile of private tenants in Brighton and Hove. It is supported by the broader organisation Movement for Change, which gives local leaders the power to campaign on issues important to their communities.

Representatives from student unions have also been part of the campaign and are working to create a comparison table of the fees charged by the agents in question.

Lead Councillor for Private Rented Sector Housing at Brighton & Hove City Council, Tracey Hill, comments: “The Citizens Advice Bureau reports that housing is the second biggest issue they deal with, especially regarding the private rented sector, which is growing as fewer people can afford to get onto the housing ladder.

“Poor living standards, rising rents and housing scarcity leave private tenants extremely vulnerable to the housing market.”1

Home Sweet Home hopes to make a difference to the nine million private tenants in England, many living in the one-third of private rental homes that do not meet the Decent Homes Standard. Part of this involves the fair treatment of tenants and landlords by letting agents.

1 http://brightonandhoveindependent.co.uk/undercover-survey-of-letting-agent-fees-in-brighton-and-hove/

Fewer tenants see rent increases

Published On: November 23, 2015 at 2:00 pm

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An encouraging new report has indicated that a lesser number of tenants are experiencing rent rises.

Data from the investigation from the Association of Residential Letting Agents (ARLA) shows the total number of letting agents reporting rent increases for tenants dipped to 25% in the last month, in comparison to 32% in September.

This represented the lowest number of monthly rent hikes during 2015.

Dropping demand

Demand for rental accommodation fell in October, as did supply of available accommodation. ARLA agents recorded 33 new tenants on average per branch during the month, the lowest of the year.

However, the rental market in the capital went against this trend. The report indicates that demand for privately rented accommodation rose in the capital during October, with an average of 42 new prospective tenants registered per branch, an 8% increase from September.

Supply for rented properties dropped in line with typical seasonal demand, falling from 182 properties per branch in September to 173 in October. Would-be renters in the East of England and in the South West have the best chance of securing a property, with agents in these regions managing 199 and 184 properties respectively.

Fewer tenants see rent increases

Fewer tenants see rent increases

Seasonal Relief

David Cox, managing director of ARLA, said that the findings, ‘should bring some relief to tenants before Christmas. It’s definitely a step in the right direction, however a quarter of tenants are unfortunately still seeing hikes.’[1]

‘Although it’s typical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we expect to pick up again in January. Looking ahead to next year, we’d hope to see the number of tenants experiencing rent hikes remain low with supply and demand leveling out. However, a lot is resting on the economic and political agenda,’ he continued.[1]

Cox went on to say that, ‘we’re still waiting for new houses, promised by the Prime Minister to be built. Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market.’[1]

‘Further, it’s been a waiting game all year to see if Mark Carney will raise interest rates in the New Year-this will play a big part in determining whether renters looking to buy a home will be able to afford to. And when interest rates do rise, the goal of homeownership will be pushed further out of reach for many and of course put further pressure on the private rental sector,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-hold-off-on-rent-hikes.html

 

Could American-Style Renting Arrive in the UK?

Published On: November 19, 2015 at 1:24 pm

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An American style of private renting, called multi-family renting, could arrive in the UK after a conference was held in London on the idea by US property trade body, the National Apartment Association.

The firm said that it was pleased with the success of its first UK conference, with plans to establish itself in the British market and hold further events.

Multi-family is similar to institutionally-backed build-to-rent schemes that are beginning to appear in the UK, through brands like Be:Here, Essential Living and Fizzy Living.

Could American-Style Renting Arrive in the UK?

Could American-Style Renting Arrive in the UK?

Countrywide has also entered the build-to-rent industry.

The American multi-family style of renting is a much more advanced and longer established model. Multi-family is also focused on putting tenants with very similar interests or lifestyles together.

More than 300 UK property professionals attended the conference.

It highlighted how much more evolved and professional the rental sector is in the USA. In America, branding and customer service are two of the most important aspects of the multi-family industry.

As with the UK, the US rental market is thriving, with homeownership declining slightly to 64% of the population.

It is unknown whether the term multi-family will ever be used in the UK, but key features of the regime were discussed at the conference.

It explained how US schemes offer a range and variety of facilities for residents. Fitness suites and pools are common, but wine rooms and bike workshops are also popular, alongside pet spas. Social communal space is also provided, with a wide range of resident events on offer.

These services are designed to be convenient to the resident. Amenities are offered on renters’ doorsteps, forming a community atmosphere and a place for residents to spend their leisure time.

Many developments feature a 24-hour tech café, with high-speed wifi, printing facilities and refreshments. These spaces have become increasingly popular as more people work from home, giving them a change of scenery.

An on-site concierge is usually available during business hours, providing a range of additional services, from dry cleaning to room service meals, made by an on-site restaurant. High quality customer service means that maintenance and repairs are dealt with within a specified timeframe.

Apartments are often let unfurnished, but managers usually offer a furniture rental service. They use third party firms to provide furniture without the landlord having to kit out the property.

Revenue management systems are in place with these schemes, designed to maximise revenue by updating rents on a daily basis. In the UK, properties are valued when they are empty, but in the US, the rent price is set based on market demand and income achieved. The average lease is 12 months and firms prefer a break in the agreement to review rents for potential increase at the end of the tenancy.

The model emerging in the UK includes all costs in one monthly payment, whereas the US charges for everything separately. As well as providing additional income, this method can benefit the environment, as occupiers paying their own utility bills are more like to use less, with consumption down 25% in these situations.

As a landlord, would you be interested in this type of lettings scheme? And do you believe it is more professional than the British private rental sector?

Rogue Landlord Consultation Outcome Released

Published On: November 16, 2015 at 4:52 pm

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The Department for Communities and Local Government (DCLG) has released the full outcome of its consultation, titled, Tackling rogue landlords and improving the private rental sector.

Rogue Landlord Consultation Outcome Released

Rogue Landlord Consultation Outcome Released

More than 600 responses were given to the document, including one from the Association of Residential Letting Agents (ARLA).

The technical discussion paper was launched in August this year. It set out a series of questions on various measures designed to combat the worst offenders in the lettings industry. Questions included how to tackle rogue landlords and dealing with abandoned properties.

Some of its key findings are:

  • 85% of respondents think that data held by tenancy deposit protection schemes should be made available to local authorities.
  • 95% believe that there should be a blacklist of persistent rogue landlords and letting agents.
  • 82% agree that additional criteria should be added to the fit and proper persons test for licensed properties, such as Houses in Multiple Occupation (HMOs).
  • 85% think that Rent Repayment Orders should be introduced for situations when a tenant has been illegally evicted.
  • 51% believe that a proposed new process for dealing with abandoned properties would be effective. This is when a tenant disappears without reason.

Some of the measures proposed in the technical discussion document have been included as provisions in the new Housing and Planning Bill, which has passed its second reading in the House of Commons.

Chairman of ARLA, David Cox, spoke at the Public Bill Committee last week to give further evidence on behalf of ARLA members.

Of banning orders, he said: “Sales agents can already be banned under the Estate Agent Act 1979, but it’s about time that the lettings sector followed suit. The easiest solution would be to add a section to the Housing and Planning Bill, which follows a similar structure as that already provided for estate agents in the 1979 act.

“However, it’s important that the banning order is placed on individual agents, not on a company or agency, and if banned as an estate agent you should be banned as a letting agent too and visa versa.”1

The full outcome can be read here: https://www.gov.uk/government/consultations/tackling-rogue-landlords-and-improving-the-private-rental-sector

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/dclg-rogue-landlords-consultation-outcome-published

Are you ready for Right to Rent?

Published On: November 13, 2015 at 12:44 pm

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Last month, MP’s decided to back the controversial ‘Right to Rent’ legislation as part of the second reading of the Immigration Bill in Parliament. This means that the scheme is moving ever closer to being rolled out across the whole of England, following a prolonged trial period in the West Midlands.

Concerns

However, this trial has uncovered some serious issues for tenants and landlords alike. Research from the pilot scheme shows that some landlords were guilty of discriminating against some tenants purely on the basis of their background. Others were said to turn away some would-be tenants purely because they had a foreign accent.

An investigation conducted by The Joint Council for the Welfare of Immigrants of tenants and landlords in the trial area also found that some tenants were being charged an extra £100 in administration costs. What’s more, some landlords were found to be reluctant to offer viewings to potential tenants who would need more time to provide paperwork, suggesting many migrants could be turned down.

Tips

In light of these problems, buy-to-let landlords should follow these helpful tips in order to be confident and vigilant in conducting Right to Rent checks:

  • Establish who will be living in the property

Landlords should consider if the number of occupiers looking to rent is reasonable for the size, type and condition of the property. All enquiries and responses should be recorded

  • Source original versions of documentation

All agents and landlords should obtain original copies of documentation required that proves a potential tenants’ immigration status. These include passports, visas and national identity cards. Checks must be made up to 28 days before a tenancy agreement can be started.

  • Check in the presence of the holder

It is important that landlord conduct validity checks in the presence of the potential tenant(s). Landlords or agents must be sure that the documents belong to the person(s) in question and pay attention to information such as DOB’s, to ensure they are consistent throughout all documentation.

Are you ready for Right to Rent?

Are you ready for Right to Rent?

  • Make copies and date them

Documents should be copied and retain with the date that they were checked. Copies should be made in a manner in which they cannot be edited at a later date. These in turn should be securely retained, either electronically or by hard copy.

  • Conduct follow-up checks on time

These should be carried out in the same manner as initial checks. If someone is found to no longer have the Right to Rent, the owner does not need to evict. Instead, they should inform the Home Office by phone or email.

  • Get help with proof

If a potential tenant cannot prove their immigration status because of ongoing issues, agents or landlords can request a check from the Home Office. An answer will be sent within two working days.

  • Remember that some properties are excluded

Tied accommodation, local authority tenants and leases of seven years or more are excluded from the checks. In addition, students nominated by a higher educational institution are also exempt.

Hard  

Jane Morris, Managing Director of PropertyLetByUs.com, said, ‘the research shows that some legitimate tenants who cannot easily identify themselves using a British or EU passport are finding it harder to secure somewhere to live.’[1]

‘Under the pilot scheme, would-be tenants have to produce evidence from a checklist of documents that they have permission to be in the UK and landlords have to take a copy for their records. Before dismissing a prospective tenant, it is important that landlords make all the necessary checks.  The legislation requires landlords to carry out extensive checks to ensure a tenant has British, EEA or Swiss nationality.  If the prospective tenant is of a different nationality, their visa or passport will have to be checked to see if they have a right to rent. Landlords are also required to notify the home office if the tenant’s visa expires,’ she added.[2]

[1] http://www.propertyreporter.co.uk/landlords/top-tips-for-landlords-on-conducting-right-to-rent-checks.html