Posts with tag: private rental sector

BBC landlord show serving as eye-opener to industry

Published On: July 20, 2017 at 9:46 am

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A BBC One landlord programme should serve as an eye-opener for the entire lettings industry, according to the Association of Independent Inventory Clerks.

The Week the Landlords Moved In, airing at 9pm on Wednesday evenings, allows landlords the opportunity to spend a week in their tenants’ property, living on their weekly budget.

Serious Issues

The AIIC believes that the single largest issue uncovered by the documentary series is the lack of communication between landlords, their management companies and tenants.

In the first two episodes of the series, problems ranged from mould and damp, to broken windows and leftover rubbish.

Living their tenants’ daily life has proven to be an eye-opening experience for all landlords taking part in the series. The AIIC says that the documentary should serve as a wakeup call for the entire industry.

Communication

Danny Zane, Joint Chair of the AIIC, noted: ‘It’s been interesting to watch this series and see that arguably the most significant problem for tenants, landlords or those managing rental properties is a lack of communication.’

‘Tenants failing to report maintenance issues or their landlords or managers failing to deal with requests resulted in some fairly serious problems in these properties which could have been avoided with better communication.’

‘One landlord taking part in the show noted that he would no longer be going on the ‘happy assumption’ that tenants would call him if there was a problem.’

‘Alongside a lack of communication, another issue raised by the series is a lack of site visits and inspections. When the landlords taking part in the programme actually visited their properties, the true extent of some of the problems became instantly apparent.’[1]

BBC landlord show serving as eye-opener to industry

BBC landlord show serving as eye-opener to industry

Inspections

The programme highlights the paramount importance of mid-term inspections. These are crucial in helping landlords assess how the condition of their property has altered in comparison to the inventory conducted at the start of the agreement. In turn, this will lower the chance of any disputes at the conclusion of the tenancy.

Emma Glencross, Joint Chair AIIC, stated: ‘Mid-term inspections and regular site visits to rental properties are essential. If landlords and property managers can attend to problems quickly, this is better for the tenant and the long-term condition of the property. It’s well-known that small maintenance issues left to get worse over a long period of time could end up costing a landlord a significant amount of money at the end of a tenancy.’[1]

Danny Zane concluded by saying: ‘It’s positive that this series has been given a primetime slot on BBC One as it will hopefully act as a reminder to both tenants and landlords that communication is all-important and maintenance issues should be reported and dealt with as swiftly as possible.’[1]

[1] http://www.propertyreporter.co.uk/landlords/aiic-bbc-landlord-show-is-an-eye-opener-for-the-industry.html

Developers call for professional approach to drive up BTL sector standards

Published On: July 20, 2017 at 8:54 am

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The most recent English Housing Survey published by The Department for Communities and Local Government has underlined the need for improved standards in the market.

More than one-quarter of homes in the private rented sector were found to have failed to meet the Government’s Decent Homes standards. This has led to calls for a more professional approach in order to improve conditions, from many developers of Build to Rent housing.

Substandard

28% of properties in the sector are currently considered to be in a substandard condition – taking into account electrical safety, disrepair, damp and other factors. However, there is a marked improvement from a decade ago, when this figure stood at 47%.

Worryingly, the survey revealed that nearly one in five of those living in the private rental sector lacked basic fire protection, such as smoke alarms. This is alarming considering that the number of private renters has nearly doubled during the last ten years.

In addition, the survey indicates that a number of people renting from a private landlord suffer from a lack of security. This is highlighted by the fact that nearly two-thirds of tenants evicted from their property were pushed out as their landlord wanted to use or sell the accommodation.

Security

As Jean Marc-Vandevivere, Chief Executive of PLATFORM, notes: ‘The issues across the private rented sector are often ones of security, from tenancy length to fire protection.’[1]

‘Those in the build to rent sector have a vested interest in keeping hold of their tenants and ensuring that the homes we provide are to the highest possible standard. The continual growth of the private rented sector demands a change in approach, we need to see a shift towards professionally managed homes that provide what renters are really looking for, a secure place to live and grow.’[1]

Developers call for professional approach to drive up BTL sector standards

Developers call for professional approach to drive up BTL sector standards

Dissatisfaction

Johnny Caddick, managing director at Moda Living, observed that the results of the survey found that dissatisfaction rates of those living in the private rented sector was the greatest of any tenure group.

With over 20% of tenants unhappy with their accommodation, this is a greater rate than 10% for social housing a 1% of owner occupiers.

Mr Caddick said: ‘The many real concerns people have around renting are totally justified, but our aim is to address all of these with purpose-built developments that are managed 24/7 and which engender a real sense of community.’

‘We have a commercial imperative to do things properly, whereas traditional buy to let landlords have little incentive to maintain and upgrade knackered old properties. Renters in Britain deserve a better deal – as they receive in the U.S. and Europe.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/–professional-approach-needed-to-drive-up-standards-in-prs-claim-btl-developers

The RLA Welcomes Reintroduction of Bill Concerning Housing Standards

Published On: July 19, 2017 at 9:14 am

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The Residential Landlords Association (RLA) has welcomed news that Labour MP Karen Buck is to reintroduce her Private Members’ Bill into Parliament today. If passed, it will hopefully improve housing standards in the private rental sector.

The RLA Welcomes Reintroduction of Bill Concerning Housing Standards

The RLA Welcomes Reintroduction of Bill Concerning Housing Standards

Buck, who represents Westminster North, is reintroducing the Bill, called the Homes (Fitness for Human Habitation) Bill, which would resurrect a law dating back to 1885 if passed.

Tenants already have the right to a home that is fit for human habitation, but only if the rent is less than £52 per year (or £80 in London) – figures that were set back in 1957.

Under more recent legislation – the Housing Act 2004 – landlords can be forced to make repairs to their properties by local councils, but the authorities tend to act only on tenants’ complaints and have few resources to proactively inspect housing standards in private rental accommodation.

Just 2,006 landlords have been convicted of offences under the Housing Act 2004 so far.

When Buck first introduced the Bill, almost two years ago, she explained that she wanted legislation to counter “a growth in the numbers of landlords who try to cut corners and get away with letting out substandard accommodation”.

The RLA is pleased that Buck plans to re-introduce the Bill today. The Policy Director of the organisation, David Smith, says: “Tenants have a right to expect that homes are fit for habitation, and the vast majority of good landlords already provide this. This Bill therefore reinforces what landlords should already be doing.

“By providing a route to direct tenant enforcement of basic housing standards, the Bill will give a further opportunity to deal with the minority of landlords who have no place in the market. Current legislation often lets these criminals off the hook due to underfunded councils being unable to properly enforce it.”

He adds: “We look forward to working with Ms. Buck as the Bill is developed and considered in Parliament.”

Do you support the Bill concerning housing standards in the private rental sector?

Tenants Reluctant to Report Repairs for Fear of Retaliation, Report Claims

Published On: July 14, 2017 at 9:49 am

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A new report from Citizens Advice claims that private tenants are reluctant to report repairs to their landlords for fear of retaliation, such as potential evictions, blacklisting and rent rises.

The study found that four in ten private tenants are too afraid to make complaints, which largely explains why sub-standard rental properties are the most common issue reported to the independent charity from those living in the private rental sector.

The report shows that more than two in five tenants (41%) – the equivalent of 1.85 million households – have waited longer than they usually should have for their landlord to carry out a repair in the last four years.

Tenants Reluctant to Report Repairs for Fear of Retaliation, Report Claims

Tenants Reluctant to Report Repairs for Fear of Retaliation, Report Claims

Citizens Advice now wants to see the significant power imbalance between landlords and tenants addressed.

Over the past year, Citizens Advice helped people with more than 16,000 problems around private rental sector homes in bad conditions.

Private landlords have a legal responsibility to fix problems in a reasonable time – usually a month or less, or 24 hours for the most urgent cases.

When tenants wait longer than is deemed reasonable, a court order can be issued to the landlord, or the tenant can be awarded financial compensation. In some cases, both will be served.

However, this new research suggests that tenants are not holding their landlords to account, due to fears that they could lose their homes.

Some 57% of tenants said that they did not want to force the issue with their landlord for fear of being evicted. More than half – 51% – also said that another concern was that their landlord would increase the rent if they continued complaining.

Rather than pursuing the issue with their landlord or taking formal action, Citizens Advice found that tenants often take matters into their own hands, with 30% carrying out repairs themselves and 14% paying for repairs out of their own pockets.

One family who turned to Citizens Advice for support had spent £10,000 of their own money fixing a number of issues in their home, including a broken heating system, after repeated complaints to their landlord failed.

The charity is calling for better protection against retaliatory evictions by rolling out independent complaints bodies – or alternative dispute resolution (ADR) schemes – across the private rental sector.

The Chief Executive of Citizens Advice, Gillian Guy, insists: “Renters should be able to ask for repairs to their home without fear of retaliation.

“Homes in poor condition are the most common private rented sector issue people turn to Citizens Advice for help with. Issues such as broken fittings, faulty electricals or leaks can make life hard for renters, and can even lead to ill health. But renters aren’t pursuing their rights to repair because they are worried their landlord will put up their rent or evict them. To add to this, formal routes to redress aren’t being used either because they’re too difficult and expensive.”

She continues: “Rent is the most expensive costs households face, but protections for renters simply don’t reflect this. The new Government needs to make it easier for people to have their rights enforced when their home is in poor condition.

“The redress process also needs to give renters protection from retaliatory action, so they feel confident reporting a problem in their home and don’t feel like their only option is to dip into their own pocket.”

While this study highlights the issues still tarnishing the private rental sector, the latest English Housing Survey appears to dispel certain myths surrounding private renting: /latest-english-housing-survey-dispels-myths/

Latest English Housing Survey Dispels Myths Around PRS

Published On: July 14, 2017 at 9:16 am

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Latest English Housing Survey Dispels Myths Around PRS

Latest English Housing Survey Dispels Myths Around PRS

The latest English Housing Survey (for 2015/16), released yesterday, dispels the myths surrounding the private rental sector.

Tenants are more satisfied with private rental accommodation than those in the social rental sector, the report shows.

The most recent English Housing Survey found that 82% of private tenants are satisfied with their current accommodation, ahead of the 81% in the social rental sector.

Rates of dissatisfaction were also higher in the social sector, with 13% of social tenants dissatisfied with their accommodation, compared to just 10% in the private rental sector.

Furthermore, 67% of private tenants said that they were satisfied with their current tenure status.

The survey also dispels the myth that tenants are constantly living in fear of eviction, with the average length that a private tenant has been in their current property now standing at more than four years.

According to the statistics, 73% of tenants in the private rental sector left their last property because they wanted to, with just 11% doing so because they were asked to by their landlord or letting agent.

Just 2% of tenants moved out because of rent increases by their landlord.

The Chairman of the Residential Landlords Association (RLA), Alan Ward, responds to the findings: “Whilst today’s data clearly shows that many challenges remain for the sector, it is clear that the picture is one of significant improvement.

“With only a very small minority of tenancies ended by a landlord or because of increased rent, it is time that those who suggest that landlords spend their time looking for ways to evict tenants or make profits at their expense replaced fear mongering with facts.”

The complete results of the latest English Housing Survey, including full statistics on the private rental sector and social rental sector, can be accessed through the Government’s website here: https://www.gov.uk/government/collections/english-housing-survey#2015-to-2016

L&G Completes £39m Loan to Regenerate Housing Site in Whitechapel

Published On: July 13, 2017 at 9:51 am

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L&G Completes £39m Loan to Regenerate Housing Site in Whitechapel

L&G Completes £39m Loan to Regenerate Housing Site in Whitechapel

LGIM Real Assets (L&G) has completed a three-year loan of £39m to a fund managed by GreenOak Real Estate in order to regenerate a housing site in Whitechapel.

This is the shortest loan term to date that L&G has provided. It was arranged on behalf of Legal & General Retirement by Legal & General’s Private Credit business – part of LGIM Real Assets.

The loan, which replaces an existing bank loan facility, is secured against 160,000 square feet of mixed-use space in Whitechapel. 50% of the site is arranged as private rental sector accommodation, comprising 181 studios, flats and houses. The rest of the asset is commercial space let mainly to a single, strong credit tenant.

The loan will help pave the way for GreenOak Real Estate’s longer term goal of redeveloping the site, demonstrating how L&G’s money can help support positive urban regeneration, boosting housing and jobs, and better utilising existing infrastructure.

The Lending Manager of LGIM Real Assets, Steve Boyle, comments on the deal: “At three years, this is the shortest dated loan that we have yet provided, demonstrating the breadth of our lending capabilities and proving the platform’s ability to provide competitively priced debt at the shorter end of the market. This is the very essence of a mixed-use site, but provides us with robust income streams from both its private rental sector and commercial uses.”

Toby Phelps, a Partner at GreenOak Real Estate, adds: Whitechapel remains a highly strategic location, with next year’s arrival of Crossrail providing further impetus for the continued attractiveness of the area. After actively managing this site to significantly increase income, whilst maintaining near full occupancy, we have been able to secure new financing that allows us to lower costs, while continuing to pursue our longer term goal of redeveloping the site.”

This latest deal is just part of the work L&G is doing to invest in housing. Just this week, it revealed its turn-key modular housing prototype, designed to help tackle the housebuilding crisis.