Posts with tag: private rental sector

Almost 6,300 Rogue Landlord Complaints Filed in Three Years in the North East

Published On: May 8, 2017 at 10:07 am

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Tenants in the North East of England filed almost 6,300 rogue landlord complaints between 2014-2016.

Almost 6,300 Rogue Landlord Complaints Filed in Three Years in the North East

Almost 6,300 Rogue Landlord Complaints Filed in Three Years in the North East

A Freedom of Information request submitted to the Tyne and Wear authorities by local property campaigner Ajay Jagota shows that the five councils received a total of 6,297 complaints about the condition of their private rental properties or the behaviour of their landlord during the three-year period.

Some 2,075 complaints were received in 2016, which, although is up by 3.4% on the 2,007 recorded in 2014, is actually down on the 2,215 complaints received in 2015.

Jagota, the Founder of KIS sales and letting agent, says: “To put these figures into context, every day in every local authority in Tyne and Wear, at least one person complains about the condition of their rented home, yet only one rogue landlord has been convicted in three years.”

Separate research shows that just one council – Sunderland – has brought a successful prosecution against a rogue landlord in the corresponding period.

The highest number of rogue landlord complaints was received in Newcastle, where complaints rose steadily from 1,007 in 2014 to 1,127 in 2016 – an increase of 8%.

In contrast, Sunderland saw rogue landlord complaints drop from 509 in 2014 to 290 last year, while Gateshead and North Tyneside recorded declines from 2014 to 2015, but experienced growth again in 2016, leaving them 7% and 4% below 2014 levels respectively.

South Tyneside Council refused to supply the information, claiming that it would take an officer 18 hours to retrieve it, what the authority describes as “substantial effort and disproportionate exercise of trawling”. The decision has been appealed.

Jagota reacts: “As both a resident of and business owner in South Tyneside, I find their decision to refuse our request extraordinary. How can you admit that you hold some information, but at the same time claim you don’t know where it is?”

With the General Election campaign underway, all the main political parties are making a pitch to voters that rent, but Jagota fears that the proposed policies “are just tinkering around the edges when more profound reform is needed”.

He adds: “It’s critical for all good operators in the private rented sector that the rogues are brought to task, and the only way that can happen is that the local authority executes the powers invested in them and ensure they take action when complaints are made.”

If you’re a student landlord or tenant and are wondering who to vote for, this is the best party for you: /political-party-benefit-student-tenants/

RLA Calls for New Housing Court for Landlords and Tenants

Published On: April 27, 2017 at 9:14 am

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The Residential Landlords Association (RLA) is calling on the next government to set up a new housing court to speed up justice for landlords and tenants.

Statistics show that it takes an average of 43 weeks for a landlord to regain possession of a property through the courts, during which time they may not receive any rent.

Tenants would also benefit from the new housing court, as they would be able to take quicker action against rogue landlords that fail to provide accommodation to legally required standards.

RLA Calls for New Housing Court for Landlords and Tenants

RLA Calls for New Housing Court for Landlords and Tenants

Freedom of Information (FOI) data obtained by the RLA last year shows that, among the 255 councils that responded, just 827 prosecutions were brought against landlords over the preceding five years following notices to improve a property being issued.

The RLA argues that establishing a new housing court would enable landlords and tenants to more swiftly access justice to uphold their contractual rights.

The Chairman of the RLA, Alan Ward, says: “The current court system is not fit for purpose. It takes too long and is too costly for landlords to repossess a property where tenants are not paying their rent, as well as for tenants to uphold their rights when faced with a landlord providing substandard housing.

“New housing courts would greatly improve the situation, enabling justice for good landlords and tenants to be provided more swiftly.

“Landlords are more likely to rent property out to tenants for longer periods if they can more easily regain possession of a home where tenants are not paying their rent or committing anti-social behaviour.”

He urges the political parties: “We call on all parties to support this common sense proposal.”

The new housing court proposal is just one of six practical policy suggestions put forward by the RLA ahead of 8th June’s snap General Election:

  1. Boost the supply of new homes by bringing unused public land and empty properties back into use for private rental homes, coupled with positive taxation policies that promote growth.
  2. Establish a new housing court to deliver quick and cost-effective justice, to help landlords and tenants enforce their rights.
  3. A fairer approach to welfare reform, giving tenants that claim Universal Credit the choice of having rent paid directly to their landlord and speeding up the claim process.
  1. Effective enforcement against rogue landlords through guaranteed long-term funding for local authorities, backed by a system of co-regulation for the majority of law-abiding landlords.
  2. Support landlords to improve energy efficiency in private rental homes, for the benefit of tenants and the environment.
  3. Create a new deposit trust for tenants, enabling them to transfer deposits seamlessly between tenancies.

These proposals form part of the RLA’s ongoing campaigning around tax, the Right to Rent scheme, rent controls and landlord licensing schemes.

40% of renters feel the marketplace is ‘ruthless and unethical’

Published On: April 26, 2017 at 9:07 am

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A new survey over 2,000 UK adults by online estate agent LetBritain has uncovered the sentiments of those in Britain’s rental market.

According to the data, 40% of UK renters, or 7.21m people, called the marketplace, ‘ruthless and unethical,’ citing unscrupulous letting agents and gazumping as their main irks.

Demand

37% said that the present rental system is unfit for purpose as it cannot meet demand and cannot adapt to the changing speeds in the market. Another 37% said that they have been misled by an estate agent with regards to the competition that they faced from rival renters.

In addition, 38% of UK renters said that they were knowingly advertised properties that were never available, while 31% feel they lost out as their estate agent preferred another tenant.

40% of renters feel the marketplace is 'ruthless and unethical'

40% of renters feel the marketplace is ‘ruthless and unethical’

Given that there are 4.3m rented households across Britain, a large number of tenants are seemingly disillusioned by the process of securing a property through a high street agent.

Fareed Nabir, founder and CEO of LetBritain, noted: ‘Today’s research delivers some revealing insights into the opinions of generation rent. It is obvious that renters up and down the country feel let down by their estate agent – from luring them in with properties that aren’t available to misleading potential tenants about the competition they face, the country’s rental population is suffering at the hands of questionable practices. Clearly a faster, fairer and more transparent system is required to alleviate the time and stress involved in securing a rental property.’[1]

[1] http://www.propertyreporter.co.uk/landlords/uk-renter-sentiment-revealed-in-new-survey.html

 

 

Which Political Party will Mostly Benefit Student Tenants?

Published On: April 26, 2017 at 8:30 am

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As the UK prepares to go to the polls once again, student tenants and landlords alike will be considering which political party to vote for.

StudentTenant.com has assessed the many morals, manifestos and tactics from the three main political parties to guide those in the student lettings market on who to vote for to get the best deal.

A lot has happened since Britain voted to leave the EU last year: David Cameron has stepped down as Prime Minister; Theresa May has taken over and triggered Article 50; and now Britain is preparing for another General Election.

Since May announced the snap General Election to be held on 8th June, party campaigners have been fighting for votes. But finding the right party to benefit student tenants and the future of the private rental sector can be confusing.

Last year, 18-24-year-olds overwhelmingly voted to remain in the EU (71%), but many things have changed since then.

Who should student tenants and their landlords vote for? StudentTenant has investigated the pledges of the top three political parties:

Labour

Private rental sector reform:

  • Reduce rents and increase security for tenants renting from private landlords.
  • Regulate the rental sector to stop substandard accommodation and unfair charges from lettings.
Which Political Party will Mostly Benefit Student Tenants?

Which Political Party will Mostly Benefit Student Tenants?

University tuition fees:

  • Last year, Jeremy Corbyn campaigned to abolish tuition fees by raising £10 billion in taxes from businesses and high earners.
  • 7% rise in National Insurance for those earning over £50,000.
  • 5% increase in Corporation Tax.

There has been no mention of tuition fees by Labour for the upcoming General Election.

Post-Brexit economy and business:

  • Long-term investment in the workplace – creating a high wage, highly skilled workforce to increase productivity and create more job opportunities for young people.

Conservative 

Private rental sector reform:

  • Encourage housing associations and local authorities to increase the supply of rental properties.
  • Attract investors into residential development, including homes for rent.

University tuition fees:

  • Previously raised the tuition fees to £9,000 under the coalition government and has recently increased by a further £250 without an announcement from the Department of Education.

Post-Brexit economy and business:

  • Investment into smaller businesses and enterprises, to create 1.9m new job opportunities for young people.
  • Cut Corporation Tax to help companies invest internally and grow, to create more job opportunities.

Liberal Democrats

Private rental sector reform:

University tuition fees:

  • Last year, the Liberal Democrats announced that they would force a vote by MPs in a bid to stop raising the current £9,000 limit.

There has been no mention of tuition fees by the Liberal Democrats for the upcoming General Election.

Post-Brexit economy and business:

  • Build a sustainable economy for the future by supporting small businesses and new business models.

Danielle Cullen, the Managing Director of StudentTenant, comments: “Educating young people about the upcoming General Election and what each political party is offering them is incredibly important to the future of Britain. We’re edging ever closer towards Brexit, and young people must make an informed decision on who they should vote for, and actually make the effort to go out and put a cross in the box.

“Looking into specific housing, university and post-Brexit economy pledges from political parties, it’s clear that some parties are much more beneficial to the student demographic than others. However, it is also important to think about life beyond university, and the job market for young people and housing issues for young professionals. If we can help some people in more than just finding a student property by actually helping them shape their future, I will be pleased.”

She continues: “A lot is changing in the student sector, particularly in the private housing market, with the announcement that the Government is planning to abolish letting agency fees. It’s encouraging to see that the Government is finally putting in place structured policies to help the rental market, but it’s so important to understand more about the logistics of how this will affect young individuals.

“The current Tory plans leave an area of uncertainty in who is going to foot the bill. Property specialists are predicting that landlords will seek to recoup the costs from rising rents, eventually absorbing the agency costs. We could see some landlords quit the rental market when faced with absorbing these extra costs which could be problematic for the student rental market in particular.”

It’s a Tenant’s Market in the Home Counties, Reports Knight Frank

Published On: April 21, 2017 at 9:39 am

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With significantly more rental properties to choose from, it’s a tenant’s market in the Home Counties, as reflected by a drop in rent prices so far this year, reports Knight Frank.

It's a Tenant's Market in the Home Counties, Reports Knight Frank

It’s a Tenant’s Market in the Home Counties, Reports Knight Frank

Despite a 23% annual rise in the volume of new tenancies agreed in the first three months of the year, prime rental values dropped by 2.3% across the Home Counties, following a 1.8% decline in the previous quarter.

The estate agent was instructed to let 33% more properties in the first quarter (Q1) of 2017 compared with the previous year, while the number of market appraisals – a good indicator of future stock levels – rose by 39% year-on-year, placing downward pressure on rent prices in the Home Counties.

The volume of new prospective tenants increased by 15% over the year, with demand highest in the sub-£2,000 per month price bracket.

Around 60% of new tenants in Q1 were from the UK, followed by those from North America, the data shows.

Corporate enquiries from individuals relocating to the Home Counties for work were fairly robust over the quarter, up by 17% on the same period last year. Indications suggest that interest from corporate tenants will rise further over the summer months, ahead of the start of new school terms.

A Partner at Knight Frank’s Home Counties lettings team, Jemma Scott, says: “The figures very much reflect the feedback that we have been getting and the general sentiment within the market.

“After a challenging summer last year, we saw a surge in rental deal volumes at the beginning of 2017, which, coupled with the heightened level of enquiries from prospective tenants, means we head into the traditionally busy spring and summer market with great optimism.”

Do you let properties in the Home Counties? If so, have you seen conditions shift towards being a tenant’s market?

Private Renting to Match Homeownership Levels in London by 2025

Published On: March 14, 2017 at 9:53 am

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Private renting in the capital will match the levels of homeownership in London by 2025 – just eight years away, according to a new report from the Mayor of London.

Private Renting to Match Homeownership Levels in London by 2025

Private Renting to Match Homeownership Levels in London by 2025

The study, titled Housing in London: 2017, will form the basis for the Mayor’s forthcoming London housing strategy.

It shows that private renting was once the single largest housing tenure in London, but shrank from 46% of all households in 1961 to just 14% in 1991, a decline that was similarly matched across the rest of the country.

By 2011 – the latest date quoted in the report – the private rental sector accounted for 26% of all London households.

In contrast, social housing made up 35% of housing in the capital in 1981, before dropping to 24% in 2011.

The Mayor of London’s new report, which will provide evidence for his key strategy, forecasts both social renting and homeownership to continue falling in the capital, while private renting will grow.

By 2025, it expects both private renting and homeownership to each account for 40% of all London households, while social renting will make up just 20%.

The 114-page report analyses historical data on housing tenures in the capital, certain demographic, economic and social trends, before addressing the crisis that is now blighting Londoners.

It assesses housing supply and the number of empty homes, the costs of buying and renting a home, along with the serious issue of affordability, and the need for housing across the capital. In addition, the study considers mobility and decent homes.

To read the full report from the Mayor of London, click here: https://files.datapress.com/london/dataset/housing-london/2017-01-26T18:50:00/Housing-in-London-2017-report.pdf

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