Monday 30 May 2011

House prices come under pressure as demand falls in May

Demand for housing fell in May for the first time in three months putting downward pressure on house prices once again, according to the latest survey of estate agents by Hometrack.

The property analytics business predicts that prices will end the year 1 per cent lower and that demand for housing is likely to continue to post further modest declines over the summer, with sellers forced to cut prices in areas outside London.

Click here to read the full story House prices come under pressure as demand falls in May

Friday 27 May 2011

Rent arrears hit 52% of landlords

More than half of landlords have suffered late rental payments in the last 12 months, with concern growing that the situation will worsen as benefit cuts hit cash-strapped tenants, according to the National Landlords Association (NLA).

Its research revealed that, of the 600 landlords surveyed, 52% experienced rent arrears in the past year, with the average late-paying tenant owing £730 in outstanding rent.

For more on this story please click here Rent arrears hit 52% of landlords

NetRent Comment

Rent arrears are steadily increasing and the danger is that this trend will continue. Simply credit checking the prospective tenant is not enough. Landlords should consider either insuring against loss of rent or protect themselves completely with Rent on Time.

Rent on Time pays the rent to landlords whether the tenant pays or not. It is a guarantee that you will get your rent paid every month, on time, without fail.

For more information about Rent on Time please click here Rent on Time

For more information about insuring against non-paying tenants please click here Rent & Legal Protection

Thursday 26 May 2011

Landlord prosecuted for putting tenants' lives at risk

A landlord was fined after dangerous defects were found on gas appliances at a property rented out to tenants.

Asif Azam of Whitelands Road, High Wycombe, plead guilty at Aylesbury Crown Court after an investigation by the Health and Safety Executive (HSE) found he failed to ensure gas fittings, including a wall mounted boiler, at a property he rented out in Hughenden Road, High Wycombe were safe.

HSE also found that the gas appliances and flues were not checked annually as required by law.

Click here to read the full story Landlord prosecuted for putting tenants' lives at risk

NetRent Comment

There is simply no excuse for any landlord to not have gas appliances checked annually. Landlords know what the law requires them to do and having appliances checked is proven to save lives.

Full information can be found within our Landlord Resource Centre, please click here The Landlord Resource Centre

You can also access a nationwide list of Plumbing & Heating Engineers who all offer Gas Safety Checks by clicking here The NetRent Business Directory

Tuesday 24 May 2011

Are Tenancy Deposit Schemes Dead?

We reported on this News Blog last week that recent court cases have seemingly killed the current Tenancy Deposit Protection by removing a tenant's right to make claims against their landlord once their tenancy agreement has ended.

In particular we provided a link to an article by David Smith published in The Negotiator magazine which explained the judgement in the recent appeal court case Gladehurst Properties Ltd v Hashemi. The court held that the monetary penalties for non-protection of the deposit are not available to the tenant when the tenancy has come to an end.

In other words, tenants cannot make claims against their landlords for three times the deposit at any point once the tenancy is over.

David Smith also explained that a judgement in a previous case Tiensia v Universal Estates means that "landlords are now simply unable to protect a deposit at all and if the tenant raises the issue during the tenancy they can then just place it into a scheme and rely on the decision in Tiensia to protect them".

David Smith is not alone in his understanding of the effects of these recent court cases. Several other commentators have also expressed their view that the current Tenancy Deposit Protection schemes are dead, so much so that the Government has indicated that it will use the forthcoming Localism Bill to clarify the legislation.

Meanwhile, where does this leave landlords, letting agents and tenants? Clearly we cannot be seen to be advising people to break the law but given that the law itself is now broken you have to wonder why anyone would bother using the Tenancy Deposit Protection Schemes. Unless a landlord or agent intends to use a Section 21 Notice it seems that the current law has no meaning.

We suggest that landlords, agents and tenants should read the various articles that have been published and make up your own mind about how the law now stands. For further information please click on the links below:

Tenancy Deposit Protection Bites The Dust

Tenancy Deposits- A Novel Argument on Hold

3 x deposit app by ex-tenant?

Tenancy Deposit Court of Appeal decision – the Judges’ dilemma
 
Court of Appeal Rules on Tenancy Deposit Protection

Monday 23 May 2011

Benefit cuts to hit landlords as more than 50% report rent arrears

More than half of landlords have experienced late rent payments in the past year, with housing benefit cuts expected to put further pressure on tenants, a survey has found.

Research by the National Landlords Association has found 52 per cent of landlords have reported rent arrears in the past 12 months.

The survey of nearly 600 landlords found the average late paying tenant owed £730 in late rental payments.

Click here to read the full article Benefit cuts to hit landlords as more than 50% report rent arrears

Landlords to be forced to improve energy efficiency of properties

New legislation will require all landlords to ensure properties they let meet energy efficiency standards. Plans outlined in the government's Energy Bill will also mean owners of leased residential properties cannot refuse requests from tenants to improve their homes.

Outlining the proposals in the House of Commons, Energy Secretary Chris Huhne said they will "provide a voice for tenants living in poorly insulated, draughty homes". From April 2016, landlords will have to comply with any "reasonable" request from a tenant to make the property they live in more energy efficient.

Click here to read the full story Landlords to be forced to improve energy efficiency of properties

Friday 20 May 2011

Tenancy deposit protection bites the dust

The Court of Appeal has made a decision that effectively nullifies tenancy deposit protection by removing a tenant's right to make claims against their landlord once their tenancy agreement has ended. David Smith explains.


The Court of Appeal has handed down judgement in the case of Gladehurst Properties Ltd v Hashemi. This case has significantly changed the interpretation of tenancy deposit protection legislation and will make the legislation almost completely without effect.

Click here to read the full article Tenancy deposit protection bites the dust


NetRent Comment

It seems true to say that this shakes the current deposit protection rules to the core. Landlords and Agents have always complained that Deposit Protection was a burden that was unfair and not required. It now seems that it is effectively legally unenforceable.

Landlords and Agents have to ask themselves whether or not it is still worth going to the time, trouble and expense of Deposit Protection if, as it appears, there is nothing to gain for either themselves or tenants. If Landlords and Agents conclude that Deposit Protection is not worth the time, trouble and expense and simply do not comply with the legislation there appears to be little downside unless they wish to issue a Section 21 Notice.

In short this legislation is now a complete mess and the Government needs to resolve this urgently.

Thursday 19 May 2011

Landlords are hurting the housing market

As homeowners and first-time buyers suffer, landlords are cashing in on a surge of tenants and a buy-to-let mortgage sector that’s bouncing back from recession

It’s a well-worn mantra that you should never let a good crisis go to waste. And the financial crisis is no exception.

Earlier this year the government reported that the number of renting households had risen by one million between 2006 and 2010. Unsurprisingly, half of all these households are under 35; young people prevented from getting onto the housing ladder by a paralysed mortgage sector and the need for large deposits.

But as first-time buyers suffer, the private rental sector is thriving. The surge in tenants – along with general rising costs – has pushed up rents, with half of all landlords planning to increase their rates in 2011.

To read the full article please click here Landlords are hurting the housing market

NetRent Comment

Clearly landlords are to blame for just about everything these days!!. In our opinion the righteous anger of the journalist should be directed towards the Banks who dictate who they will lend to, not landlords who have been squeezed heavily over the past few years.

Wednesday 11 May 2011

Update on The Damage That Some Tenants Do

We have been deluged with shocking and disgusting pictures from Landlords following the launch of our campaign The Damage That Some Tenants do.

Landlords from all over the UK have sent us their photos of the disgusting mess they have been left to clean up after tenants have left.

In addition to these photos Landlords have also emailed us with their stories of how some tenants have abused Landlord's property, leaving a trail of damage and debt often running into thousands of pounds.

We have now posted a selection of these photos onto our Facebook page to highlight the Damage That Some Tenants Do.

The reason for posting these pictures on Facebook is to counter the Shelter Facebook campaign Evict Rogue Landlords. Shelter's campaign makes no mention of the Damage That Some Tenants Do and concentrates solely on the small percentage of bad Landlords who blight the industry.

NetRent spoke to Shelter and tried to explain that there are bad Landlords and bad Tenants and focusing on just bad Landlords will not help the industry raise standards, it will simply polarise opinion. Shelter were not interested, they believe that the problem is with Landlords and tenants are the victims.

Our campaign The Damage That Some Tenants Do is a direct response to Shelter's campaign and is designed to bring some balance to their one-sided attack on Landlords.

But we need your help.

We need more Landlords to send us their photos of the Damage That Some Tenants Do. We will post a selection of these photos onto our Facebook page.

When we feel we have enough photos we will bring these to the attention of the media to re-dress the balance and show people what too many Landlords have to deal with.

Please send your photos of the Damage That Some Tenants Do to support@netrent.co.uk

It is vital that you include your name, address and telephone number. We will not publish your contact details but we need to ensure that we have a record of where these photos have come from.

We ask all Landlords and Letting Agents to visit our Facebook page and please click 'Like' to indicate that you support our campaign.

Click here to visit the NetRent Facebook page.

Over 7,700 people have clicked that they 'Like' Shelter's Evict Rogue Landlords campaign.

We are asking all Landlords and Letting Agents to help us re-dress the balance and support our campaign The Damage That Some Tenants Do.

Please visit our Facebook page now and click 'Like'.

Tuesday 10 May 2011

Cannabis farm busted by cops

A Cannabis farm was shut down by police after they were tipped-off by a landlord.

The crop worth an estimated street value of £5,000 was found growing in the loft of a home on Thornes Lane.

PCs Matt Lewis and Toby Warden, of the Central neighbourhood police team (NPT), raided the house on Saturday morning at around 11.15am.

Acting Insp Lis Walker said: “It was a rented property and the landlord had organised a routine inspection.

“While there he went into the loft, which I don’t think the tenants expected him to, and then he called the police straightaway.”

Click here to read the full story Cannabis farm busted by cops

Private landlords turn down young tenants

Landlords are increasingly refusing younger tenants on housing benefit as they prepare for the Government's cuts to social housing funds.

One of the key changes planned for next January will be to encourage younger tenants to live together in shared properties rather than more expensive one-bedroom flats.

The 'shared accommodation rate' currently limits the benefit a single person under 25 can receive to the average rent charged for a room in a shared house.

This will be extended to the age of 35. But housing charities Crisis and Shelter have warned as many as 88,000 people will lose £47 a week each, triggering a surge in homelessness.

Click here to read the full article Private landlords turn down young tenants

Friday 6 May 2011

Local authorities make life difficult for landlords

April saw the implementation of new rules on Local Housing Allowance and their effects will soon begin to be felt by both landlords and tenants as old tenancies end and new ones begin.

The maximum benefit now allowed is £400 a week or £20,800 a year for a four bedroom property. Weekly Local Housing Allowance (LHA, otherwise known as housing benefit) rates are a maximum of £250 for a one bedroom property, £290 for a two bedroom property, £340 for a three bedroom property and £400 for a four bedroom property. In addition, rental levels will be benchmarked against the lower 30% of rents rather than the median rents in an area.

These new rules will affect any new tenancy which is signed after 1st April 2011 and existing tenants from nine months after the anniversary of their claim. Landlords who are currently charging more to a tenant who is a benefit claimant will be able to receive their rent direct from the local authority if they reduce the rent to comply with the new limits. Local authorities are starting to offer this incentive to private landlords.

Click here to read the full article Local authorities make life difficult for landlords

Tuesday 3 May 2011

Sellers return to housing market

The UK housing market in February saw a jump in the number of people putting their house up for sale, according to estate agents.

The National Association of Estate Agent’s (NAEA) market report for February shows a year-on-year rise of 25 per cent in the level of available housing stock.

The number of house hunters registering with an agent across the country also rose to 268 reported in February compared with 252 in January per branch – the highest level for seven months.

Sales increased across the property market in February, growing from an average of 6 to 8 per branch month on month, despite continuing consumer concern regarding interest rate rises.

Click here for more information Sellers return to housing market