Friday 21 December 2012

Home Rental Costs Record Rare Dip, Says LSL

The cost of renting a home has fallen for the first time since March, dropping by 0.4% in November, a survey says.
 
However, rents remained 3.4% higher than the same month in 2011, according to LSL Property Services, which owns Your Move and Reeds Rains.

The average cost of renting a home in England and Wales was £741 a month.

The largest month-on-month drop in rental costs was in the south east of England, the survey found.

The region saw a 1.9% drop. There were also falls in the north west of England (down 1.1%) and in the West Midlands (down 1%) compared with October.

The drop across England and Wales returned prices to the same level as they were in September.
The fall would have been greater, but for rental rises in London and Wales, as well as Yorkshire and the Humber.

"Landlords look to avoid having properties empty over the Christmas period, and are often more flexible on pricing at this point in the year," said David Newnes, director of LSL.

"But the rental market has not ground to a halt by any means. The housing market is still haunted by the demons of undersupply of new homes and tight credit conditions for buyers with the smallest deposits, which is pushing up tenant demand."

The total amount of late or unpaid rent fell to its lowest level since June 2010, equating to 7.4% of all rent across England and Wales.

"A drastic improvement in the jobs market in recent months has made a real difference to tenant arrears," Mr Newnes said.

Click here to read the original article Home Rental Costs Record Rare Dip, Says LSL

Tuesday 27 November 2012

Which? report claims tenants are being hit by unfair charges

A new report from consumer group Which? claims that tenants are being hit by unfair charges. Their report states:

New research by Which? has found that rental tenants feel disempowered and dissatisfied with their letting agents. Which? found that lettings agents are ranked second from the bottom in their comparison of markets.

Tenants hit by unexpected charges from letting agents

Unfair fees are another area of consumer detriment that Which? uncovered. Less than a third of tenants said that agents provided information about fees before they asked, which hints at a lack of transparency in the industry.

Which? also found that of the 32 lettings agents we looked at, none provided fee information on their websites.
Which? found that 41% of tenants think that upfront fees on rentals are unfair. Holding deposits cost an average of £400 (or one week's rent), deposits cost £1,000 (one month's rent plus six weeks' rent) and deposit administration fees cost up to £29.

And that's without the credit reference check, which can cost almost £100, and the administration fee – which can be as much as £420. Some 64% of consumers reported having to pay administration fees, while three-quarters told us they had to pay deposits when taking out a rental contract. Almost half (47%) said they had to fork out for a holding deposit.
Bad practice in the lettings market

Complaints to the Property Ombudsman have increased by a quarter this year. Which? found evidence of aggressive sales tactics, poor customer service and – shockingly – misleading consumers through out-of-date advertising.
Tenants aren't the only ones affected. Landlords were also found to have lost money because agents fail to pass on rent or unfairly handle holding deposits, and we also found that some letting agents fail to put deposits into protection schemes – something that is required by law.

Which? wants action taken on letting agents
Two-thirds of all private tenancies involve an agent, so this isn't a small problem. If you're planning on renting a property, always make sure the agent is a member of a professional body. We found that 62% of tenants and nearly half of landlords (45%) didn’t conduct a check on their letting agent.

Which? is also working on changing this bad practice. We are calling for increased consumer protection in the rental sector by extending the legal protection for people buying and selling rental properties.
This would ensure that lettings agents are covered by the same legislation as estate agents, making them more tightly regulated and giving the Office of Fair Trading the power to ban agents who break the rules. It would also require them to sign up to an ombudsman scheme.

'Greater transparency' from letting agents
Which? also want to see more transparency from lettings agents. This means fees being included in upfront quotes, in adverts and on websites. We also want terms and conditions to be provided in full.

Which? executive director Richard Lloyd says: ‘People searching for a rented home through a lettings agent are too often hit by unexpected fees or an unacceptably bad service. With the private rented sector now the only option for millions of people, it is vital that more is done to protect both tenants and landlords.’

Click here to read the Which? report Renting roulette: the great lettings agent gamble

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Thursday 22 November 2012

End to illegal charges on tenants

The law covering what fees letting agents and landlords charge private tenants has been clarified.

The Scottish Parliament has voted to approve secondary legislation so that all tenant charges, other than rent and a refundable deposit, will not be permitted.

From November 30, the law will now also allow any charges in relation to the UK Government’s Green Deal that may be attached to a privately rented property.

The current legislation, the Rent (Scotland Act) 1984, has not been explicit enough about additional charges such as reference checks, credit checks and inventory fees.

The move follows a consultation launched earlier this year on how to deal with unfair and illegal premiums.

It is estimated that there are around 500 letting agent businesses in Scotland involved in around 150,000 private lettings per year

Minister for Housing and Welfare Margaret Burgess, said:

“The vast majority of Scotland’s letting agents and landlords operate in a professional and above-board manner, and play an important role in the Scottish private rented sector.

“I am pleased that the legality of pre-tenancy charges has been clarified.

“This Government was determined to end the illegal practice of charges such as holding deposits and reference checks.

“The law is now clear on this matter and will help remove a barrier that will make the private rented sector more accessible for a wide range of individuals and families.”

Graeme Brown, Director of Shelter Scotland, says:

“This is great news for everyone who has been ripped-off by unscrupulous letting agents. It will finally put an end to this unlawful practice and ensure that tenants are no longer exploited.

“Shelter Scotland has been campaigning all year for these fees to be outlawed. Our reclaimyourfees.com web site has proved so popular that already more than a quarter of a million pounds worth of claims against letting agents have been made using our free step-by-step toolkit.

“Moves like this can only strengthen Scotland’s private rented sector and help make it a fairer and more secure place to live for the 270,000 households that now call the sector home.”

Click here to view the original article End to illegal charges on tenants

NetRent Comment

Clearly the Scottish Government believes that there is no cost to setting up a tenancy. They obviously believe that it's free to do the paperwork including references, tenancy agreement, inventory, bank set up etc. which will come as a surprise to landlords, agents and tenants alike.

In typical style Shelter, a charity, also believes that every other business should also be a charity and lays the blame for all the ills of the letting industry firmly at the door of letting agents who are exploiting tenants. Their claim that this makes renting in Scotland 'fairer and more secure' is dubious to say the least.

Having succeded in Scotland their next target will be Wales where the Welsh Assembly has already indictated that it too wants to end tenancy set up charges. England won't be far behind.

The reality is that it does cost to set up a tenancy and those costs will have to be passed in in the form of increased rents. So we'll have moved from a system where charges are transparent to a system where charges are hidden. And the benefit to everyone? None.

Tuesday 20 November 2012

Forget saving for a pension, buy-to-let landlords reckon rental income will see them through retirement

More than 80 per cent of private landlords in Britain intend to use their property portfolios to see them through retirement instead of a pension.

Figures from an independent Landlords’ Survey by BDRC Continental found that four out of five plan to sell off properties or live off rental income to fund their later years.

At a time when annuity rates are falling and pension drawdown changes are slashing retirement income, landlords are putting their faith in property over pensions and intend to live off rental income in their later years.

Another 20 per cent said they would sell off some of the properties they own, with five per cent saying they would sell all of the properties in their portfolio.

The HomeLet Rental Index released this week revealed that the average rent across Britain has increased in the last three years, from £679 per month in October 2009 to £790 per month now.
But those with property in London in particular are making much more, with the average rent coming in at a massive £1,240 per month, rising six per cent in the last year alone.

But with house prices still high - even after having fallen 20 per cent since their 2007 peak - large deposit demands represent a significant barrier to investment.
After the property slump hit, buy-to-let's source of potential income is attracting investors eying long-term rental returns rather than the capital growth from rising house prices chased in the boom years.

However, while people people may think they can bank on their property and not their pensions when they give up the day-job, they should remember the buying, maintenance and running costs that come with owning and letting a property.
As most buy-to-let mortgages are set up interest-only, they should also remember that their debt will not be cleared and that base rate will eventually rise from its record 0.5 per cent low.

Mark Long, director at BDRC Continental, said: ‘Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future.
‘On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.’

The research comes after the Council of Mortgages Lenders said that one in eight mortgages are now buy-to-let loans – the highest level since records began.
The loans now account for 1.44 million of the 11.3 million mortgages in the country, compared to there being just 275,500 a decade ago.

Click here to read the original article Forget saving for a pension, buy-to-let landlords reckon rental income will see them through retirement

 

Tuesday 13 November 2012

UK landlords lose out on £2.1bn a year

Are you losing out? Many landlords are, reveals new research, which shows that tenant arrears, empty homes and unexpected maintenance bills are costing private landlords in the UK £2.1 billion a year.

Landlords pay an average of £1,500 a year out of their buy-to-let pockets, Northwood found. The Guaranteed Rent provider's survey showed that 84 per cent receive less money than they thought from their monthly rental income due to unexpected costs.

Indeed, vacant properties are the biggest financial problem facing landlords, with half of them saying that they do not receive income for up to three months a year. Northwood's study also highlighted that over half of tenants are late with their rental payments, leading 91 per cent of landlords to be concerned about arrears over the next two years.

Managing Director of Northwood, Nick Cooper, comments, "Landlords have recently been under fire with accusations that tenants are victims to greedy landlords, but this research highlights that landlords too face a number of difficulties. The amount of money being paid out for unexpected costs each year is staggering, and with tenant arrears and vacant properties a very real concern, landlords can be hit hard."

But while Northwood's study shows that landlords are losing out, other reports show that landlords are very comfortable with their income. 61 per cent plan to live off their rental income alone when they retire, according to the National Landlords Association.

No wonder, as rents continue to hit new records in the UK. According to LSL Property Services, rates are now at a high of £741 per month. And if Savills' new forecast comes true, those numbers will climb even higher: average rents in the UK will rise by 2.5 per cent in 2013, predicts the firm, ultimately increasing by 18.2 per cent by 2017.

Those really looking to lose out, then, are the under-35s, with the amount of rent paid by the age group predicted to soar by 53 per cent from £24 billion to £37 period over the next five years.

"Every pound monthly rents go up, there's another pound renters cannot save for a deposit for their first home," comments LSL director David Newnes. "This is lengthening their stay in rented accommodation and increasing competition in the private sector."

Greater London landlords will be the biggest beneficiary, says Savills, with rentysomethings just outside the capital set to pay 3 per cent more in rent next year - ahead of the national average - and 26.4 per cent more by the end of 2017, far outstripping that of even prime central London.

"Recent population trends suggest that demand will continue to increase in coming years," says Yolande Barnes, director of Savills world research. "Current levels of occupier demand make the private rented sector the only truly fully functioning market in the UK residential sector. Yields and income in London remain strong by world city standards and make the capital an attractive buy in a global context."

Click here to read the original article UK landlords lose out on £2.1bn a year

Click here to find out how to guarantee your rent: Rent on Time

Friday 9 November 2012

Court imposes maximum penalty for 'minor' omission of prescribed information

This week a residential landlord who failed to produce the prescribed information to the tenant under the Tenancy Deposit Scheme has received the maximum penalty from The Court of Appeal.

Although the landlord produced "most" of the materials and the omission was described as "minor" the case, which was initially dismissed by a judge, The Court of Appeals overturned the decision and awarded the full penalty to the tenant.

After the case, lawyers pointed out that the omission could have been rectified by simply giving the tenant a copy of the Tenancy Deposit Scheme's leaflet. It should also be noted that this is something the tenant was able to get for themselves.

The Housing (Tenancy Deposits) (Prescribed Information) Order 2007 states that landlords (or the agents representing them) are obliged to produce a list of "prescribed information" to all tenants. This "prescribed information" sets out exactly how the scheme works and its implications.

In this instance, the case of Ayannuga v Swindells, the landlord omitted seemingly minor pieces of information that had been listed in the prescribed information, regardless of the fact the information was already in the public domain.

The landlord argued in the initial hearing that he had provided most of the information with only minor deficiencies related to the technical details of the scheme and that these details were easily accessible to the tenant by contacting the provider of the scheme. The judge found in favour of the landlord and the claim was dismissed with the landlord being able to keep the deposit.

However, this was followed by a hearing at the Court of Appeal in which the previous decision was overturned. In addition, it was ruled that the tenant be awarded the maximum compensation of three times the deposit.

Luke Maunder, a property specialist with law firm Barlow Robbins, said: "This case has important implications for residential landlords and residential agents.

"It is not uncommon for minor pieces of information to be omitted from the prescribed information, particularly as the Act allows it to be produced separately from the Tenancy Agreement, and some required items instinctively seem less important as the tenant can find it easily elsewhere.

"In the case of Ayannuga v Swindells, the landlord failed to provide details of the procedures to be followed in certain events. Details of the Tenancy Deposit Scheme had been provided, but the omission of the additional information - potentially as simple as including a leaflet provided by the Scheme - has cost him thousands.

"The maximum fine is three times the deposit, but the landlord also forfeits the original deposit, so in reality it is four times. As a deposit is usually at least a month's rent, a small error can be very costly."

The important lesson to be learned from this is that guidelines and rules within the property industry must be adhered to with absolute precision. More and more stories are emerging of landlords and agents alike being reprimanded for details, which may seem arbitrary but have far-reaching consequences.

Luke Maunder concludes: "All residential landlords and letting agents need to take note of the important decision in Ayannuga v Swindells and make sure that they provide all the necessary prescribed information, ideally well within the 30 days allowed."

Click here to view the original article Court imposes maximum penalty for'minor' omission of prescribed information.

Click here to visit The Landord Resource Centre

Friday 2 November 2012

Indoor laundry drying 'poses a health risk'

Drying laundry in the home poses a health risk to those prone to asthma, hay fever and other allergies, according to new research.

A study carried out by the Mackintosh School of Architecture found that many homes had too much moisture indoors.

Up to a third of this moisture was attributed to drying laundry.

The researchers have called on housebuilders to build dedicated drying areas into new housing to address the health concerns.

A study of 100 homes by the Mackintosh Environmental Architecture Research Unit in Glasgow found 87% dried their washing indoors in colder weather.

Researcher Rosalie Menon said people were not aware how much moisture this added to the air.

She said: "Going into people's homes, we found they were drying washing in their living rooms, in their bedrooms.

"Some were literally decorating the house with it, but from just one load of washing two litres of water will be emitted."

A total of 75% of households, which were of mixed styles, had moisture levels which could lead to dust mite growth.

There was also a strong association between drying laundry and mould spores.

A particular mould spore known to cause lung infections in people with weakened immune systems was found in 25% of the homes sampled.

The research, funded by the Engineering and Physical Sciences Research Council, was the first to track the implications of drying laundry passively inside the home.

All of the types of housing surveyed had a lack of suitable spaces for drying clothes.

The researchers want to see dedicated drying areas incorporated into new housing.

Ms Menon said: "These spaces should be independently heated and ventilated. It's very much going back to the airing cupboards we saw in more historical types of housing."

Click here to view the original article Indoor laundry drying 'poses a health risk'

Wednesday 24 October 2012

The Government launches inquiry into the Private Rented Sector

The Government has announced an inquiry into the Private Rented Sector and is inviting submissions of no more than 3,000 words by 11am on 17 January 2013.

The announcement on the Parliament website says:

The Communities and Local Government Committee has decided to conduct an inquiry into the private rented housing sector.
The Committee invites submissions from interested parties covering the quality and regulation of private rented housing, and levels of rent within the sector.  Those making submissions may wish to consider the following issues:

·         the quality of private rented housing, and steps that can be taken to ensure that all housing in the sector is of an acceptable standard;

·         levels of rent within the private rented sector – including the possibility of rent control and the interaction between housing benefit and rents;

·         regulation of landlords, and steps that can be taken to deal with rogue landlords;

·         regulation of letting agents, including agents’ fees and charges;

·         the regulation of houses in multiple occupation (HMOs), including the operation of discretionary licensing schemes imposed by a local authority for a category of HMO in its area;

·         tenancy agreements and length and security of tenure; and

·         how local authorities are discharging their homelessness duty by being able to place homeless households in private sector housing.
In its recent report on the Financing of New Housing Supply, the Committee considered the supply of housing across all tenures; it does not therefore propose to focus in particular on supply in this inquiry.

NetRent strongly urges all landlords and letting agents to make their views known to the Communities and Local Government Committee. In our opinion it is vital that as many landlords and agents as possible contribute to this inquiry.
In particular the Committee is clearly wishing to look at the regulation of landlords. There are already over 80 pieces of legislation that affect landlords, do we really need more? Or is the industry being set up for mandatory landlord registration and licensing?

We intend to run a debate on our Facebook page and make thatdebate available to the Committee, please visit our Facebook page by clickinghere and contribute to the debate.

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You can also comment on the NetRent Forum, please click here.

Tuesday 23 October 2012

First local authority hits landlord with Proceeds of Crime Act

A Norwich landlord has been ordered to pay £40,000 under the Proceeds of Crime Act (POCA) after pleading guilty to nine breaches of Houses in Multiple Occupation (HMO) regulations.

Norwich City Council, which brought the prosecution, has become the first local authority in the country to use POCA against a landlord who failed to comply with license conditions.

Joseph Howman let a house on Unthank Road as ten bedsits with shared bathrooms that posed a number of hazards to its tenants, Norwich Magistrates' Court heard last Friday.

In November 2010, Norwich City Council inspection officers who called on the property found that rooms had no heating, the main bathroom had no hot water, the communal bathrooms were dirty, the fire doors were in poor condition with many not working, and there were electrical hazards, including hanging wires and defective lighting.

On top of the POCA costs, Mr Howman, of Grosenvor Road, was fined £5,000 plus £135 victim surcharge and £8,500 costs, which brought his total bill to £53,500.

The £40,000 POCA bill will be divided up between various bodies. The money goes firstly to the Treasury, which keeps 50% of it. Of the remaining 50%, 12.5% goes to the courts to cover admin fees with the remaining 37.5% being split 50/50 between the investigating and the prosecuting authorities. In this case, Norwich City Council was both the investigating and the prosecuting authority so will receive the whole 37.5% (£15,000).

This is known as the Home Office Incentivisation Scheme, and is designed to encourage law enforcement agencies and local authorities to bring proceedings under the POCA.

Ellen Spencer, private sector housing officer, said: "Norwich City Council is committed to making sure private tenants live in safe houses which meet legal standards. In this case the landlord risked the safety of tenants by cutting corners and refusing to make improvements.

"We are pleased that the court recognised the serious nature of the offences and hope that this will send out a message that rogue landlords will not be tolerated in Norwich."

Click here to read the original article First local authority hits landlord with Proceeds of Crime Act

Friday 19 October 2012

Rents increase to new record high of £741 per month

The cost of renting a home has risen for the sixth month in a row to a new record high of £741 a month.

The new data for September released by LSL Property Services reveals a further 1.1 per cent increase in the cost of renting in England and Wales.

This means there has been a 3.2 per cent increase in the past 12 months.

LSL said that the increases were due to increased demand as first-time buyers are finding it increasingly difficult to get their foot on the property ladder.

It is expected that the Bank of England’s Funding for Lending Scheme (FLS) will help to increase the availability of mortgages for first-time buyers through cheaper mortgages that require a smaller deposit.

David Brown, commercial director of LSL Property Services, said: “Rents have risen consecutively for half a year as tenant demand strengthens on the back of a historically subdued mortgage market.

“However, every pound monthly rents go up by is another pound that renters can’t save for a deposit for their first home. This is lengthening their stay in rented accommodation, and increasing competition in the private rented sector.”

Extra demand has come from graduates looking to rent accommodation after securing new jobs.

Rents increased across seven different regions. London and the south-east saw the biggest increases of 1.9 per cent and 1.7 per cent respectively.

These two regions have seen annual increases of 6.2 per cent and four per cent. The average rental cost in London is now £1,092 per month.

Only three regions saw the cost of renting fall in September. They were the East of England, Yorkshire & the Humber and the West Midlands.

Click here to read the original article Rents increase to new record high of £741 per month

Thursday 18 October 2012

Rise in rent arrears leads to increase in landlord possessions

Landlord possession claims in England and Wales are rising as rent arrears increase to their highest level in four years, it is claimed.

In the second quarter of 2012, there were 25,422 landlord possession claims that led to an order being made on the seasonally adjusted basis. This is slightly higher than in the first quarter of 2012 and continues the upward trend since 2010, according to the government’s quarterly Court statistics.
Landlord possession claims leading to orders made in England and Wales are up by 8% year on year to the end of the second quarter of 2012.
Areas with particularly big rises include Gloucestershire up by 29%, West Sussex up by 20%, and Hampshire up by 29%. Some towns have also seen big rises such as Bournemouth up 30% and Croydon up by 28%.

The rate of growth in the number of tenants in severe arrears is slowing, but nevertheless rose by 1.6% in the third quarter of this year. There are now 99,000 tenants in arrears of two months or more, the highest since 2008 and 15% more than last year, according to figures from Templeton LPA, a specialist practice of LPA Receivers and part of LSL.
Tenants in severe arrears represent 2.5% of tenancies in England and Wales. Although severe arrears cases climbed steadily last quarter, overall tenant arrears fell slightly in August, with 9% of all rent late or unpaid, the first improvement in this measure in three months.

Despite the steady growth in severe tenant arrears so far this year, there was a slight reduction in the number of tenants who faced eviction through court order on a quarterly basis.
In the second quarter of 2012, 25,422 tenants faced eviction notices, a quarterly fall of 6% compared to the previous quarter, reversing the previous 6% quarterly increase. However, evictions remain 8% higher on an annual basis.

Friday 12 October 2012

End to illegal fees in Scotland


Currently, under the Rent (Scotland Act) 1984, landlords and their agents can legally charge rent and a deposit only when granting a tenancy.
However, current legislation has not been explicit enough about additional charges such as reference checks, credit checks and inventory fees.
The law will now be clarified so that all tenant charges, other than rent and a refundable deposit, will be deemed illegal. These will come into effect in November.
Gordon MacRae, Head of Communications and Policy at Shelter Scotland said:
“This is great news for everyone who has been ripped-off by unscrupulous letting agents. It will finally put an end to this unlawful practice and ensure that tenants are no longer exploited.
“Shelter Scotland has been campaigning all year for these fees to be outlawed. Our reclaimyourfees.com web site has proved so popular that already more than £100,000 worth of claims against letting agents have been made using our free step-by-step toolkit.”

NetRent Comment
There is no doubt that some landlords and agents charge excessive fees to set up a tenancy, but there is a cost to set up a tenancy including reference checks, credit checks, inventories etc. If landlords and agents are not able to make a charge for these then rents will rise to cover the cost of setting up a tenancy.
Landlords and agents in England and Wales are not affected by this decision, only Scottish tenancies are affected. However, there is growing demand for Parliament and the Welsh Government to follow suit and ban additional charges. This demand will continue to grow if landlords and agents charge unreasonable costs to set up a tenancy.
We strongly advise all landlords and agents to join TenantVet, the free online tenant referencing service, including all Scottish landlords and agents.

Monday 8 October 2012

Thousands of tenants lives threatened by rogue landlords

The lives of thousands of tenants are being put at risk by England's rogue landlords, a report has revealed.

Councils received 85,000 complaints against landlords last year, 62% of which concerned serious and life-threatening hazards.

The research by homeless charity Shelter shows that landlord complaints have risen by almost 30% in the last three years.

There were 487 successful prosecutions against private landlords last year, an increase of 77%.

Shelter is now urging people to contact their council and demand that they stamp out rogue landlords.

Campbell Robb, Shelter’s Chief Executive, said: "Despite the significant increase in complaints, we believe that the number of rogue landlords is still underestimated – some local authorities don’t keep records of complaints and tenants often hold back from complaining out of fear of the consequences or because they don’t believe their voices will be heard, even though such a high proportion of complaints are about life-threatening issues."

Jack Dromey MP, Labour’s Shadow Housing Minister, responding to the report, said: “These shocking statistics highlight the growing abuse tenants face from rogue landlords in the private rented sector. It is absolutely wrong that tenants have no protections against rogue landlords who make their lives a misery.

"These figures should be a wake-up call to the government and the new Housing Minister, Mark Prisk. They should change course and implement those protections rolled back by his predecessor."
Click here to read the original article.

NetRent Comment

We support the drive to remove rogue landlords from the lettings industry but Shelter and Jack Dromey need to get some perspective. 85,0000 complaints represents less than 3.5% of the private rented sector.

Dromey claims that 'tenants have no protection against rogue landlords' clearly forgetting that his party was in power for 13 years and commissioned the Rugg Report which it then chose to almost completely ignore.

Councils have over 80 pieces of legislation which they can use to target 'rogue landlords' with Mr Dromey, hardly no protection.

And nowhere in either Shelter's report or Mr Dromey's statement is there any mention of the damage that some tenants do to landlord's property. Nowhere in Shelter's report or Mr Dromey's statement is there any mention of the increasing number of tenants who default on their rent.

What this report amounts to is a one sided attack on the lettings industry with cheap headline grabbing sound bites about 'rogue landlords'.

Wednesday 3 October 2012

Landlords enjoy another monthly rise in rental values

While the home-buying market remains largely stagnant, those with an investment in rental property continue to reap the rewards.

According to research from LSL Property Services, the typical rent paid in England and Wales rose for the fifth consecutive month in August, increasing by 2.9 per cent to reach £734 per month.

Demand for rental accommodation across the country is strong, with little movement in house prices and potential buyers still struggling to obtain the finance they need.

London is still the strongest performer, with rents having increased 4.9 per cent year-on-year, but the east of England has also seen a 3.9 per cent rise, and other areas of the country are also seeing an increase in rents. David Newnes, director of LSL Property Services, commented: “London and the south east may be the powerhouses of the national rental market, but rent rises haven’t been limited to these areas by any means.

“In fact, rents have hit record highs in five regions as tight mortgage finance criteria and large deposit requirements for new buyers continue to ramp up the pressure on the limited stock of rental homes available.”

For landlords, the average total return for August was 5.3 per cent, a rise of 0.3 per cent and further encouragement for property investors.

However, while times are reasonably prosperous, now may be the right time for landlords to look at their outgoings, and see whether any changes can be made to reduce these and maximise returns. This could involve restructuring a buy-to-let mortgage, or shopping around for a better rate on landlord insurance. Yet agency fees should also come under consideration - and this is not just related to how much is paid for the services, but what services are provided.

Recent research from Shelter recently indicated that a quarter of tenants feel “ripped off” by the high fees charged by some letting agents, with some asking for more than £500 in ‘administration costs’.

Yet landlords are also being overcharged, Shelter claims, with some unscrupulous agencies charging both landlords and tenants for the same administration.

Kay Boycott, director of campaigns, policy and communications at Shelter, said: “It’s scandalous that some letting agents are creaming off huge profits from the boom in private renting by charging both tenants and landlords fees that are totally out of proportion to the service they provide.”

Click here to view the original article Landlords enjoy another monthly rise in rental values

Tuesday 2 October 2012

Landlord hit with £1.4m fine after planning permission failure

A North London landlord has been fined a record £1.4 million for turning a house into 12 flats without planning permission, reported the Brent and Kilburn Times.

The fine was issued after Salah Ali illegally converted a property on Willesden Lane into 21 separate flats despite not having planning permission to do so.

Mr Ali has been ordered to pay a total of £1.438 million within six months or face being sent to jail for 10 years, Norwich Crown Court Heard.

The London Borough of Brent have described that order, made using powers available to local authorities to recover the proceeds of crime, is believed to be the highest ever confiscation order granted for a planning offence anywhere in the UK.

Having reportedly ignored planning laws for the last 10 years, the fine represents rent Mr Ali has received from the tenants in the house.

The landlord was also ordered to pay a fine of £4,000 for a breach of planning regulations, as well as facing legal costs of almost £35,000, following a two-year investigation by the council.

A restraint order has also been placed on Mr Ali to prevent him from disposing of his assets before fulfilling his obligations to pay the £1.438 million fine levied against him.

The local authority, Brent council, will receive 37.5 per cent of the money once obtained, with the rest going to the Treasury and the court collection agency.

The news comes in light of the title’s report into the council’s proposed clampdown on landlords who housed tenants in illegal extensions, known as ‘Beds in Sheds’.

Chris Walker, Assistant Director of planning and major projects at Brent Council, told the Times: “This landlord ignored planning rules designed to ensure that the quality of accommodation in the boroughs is maintained and that the environment for surrounding residents is protected.

“He ignored the council’s notices and as a result, he profited hugely from this sub-standard accommodation.”

Click here to read the article Landlord hit with £1.4m fine after planning permission failure

Friday 28 September 2012

UK House Hunters Would Pay 5 Per Cent Extra for Faster Broadband Homes

A new trial conducted by independent estate agents Delaney’s in Essex (England, UK) has revealed that houses which were advertised alongside their broadband ISP download speeds were twice as likely to get a viewing request and scored 40% more online web page views in general.

The study, which involved BroadbandChoices.co.uk, also found that a third of the 2,000 strong house hunting respondents would be willing to pay between 2% and 5% extra for a home if it meant they could have a “high speed broadband” connection. That could mean adding anything from between £4,000 to £10,000 on to the price of a home advertised at £200,000.

Click here to read the full article UK House Hunters Would Pay 5 Per Cent Extra for Faster Broadband Homes

Thursday 27 September 2012

Taxpayers subsidise buy-to-let landlords by £2bn

Buy-to-let landlords are enjoying a tax subsidy in the UK worth £2bn a year – the same amount being axed from the national housing benefit budget, research from investigative website Exaro, reveals.

That figure is expected to rocket to £3bn in coming years, raising questions about whether buy-to-let (BTL) should be subsidised so heavily by other taxpayers.

Landlords currently own 1.4m properties with a collective BTL mortgage of £160bn as of June - up 250,000 since the financial crisis of 2008, according to the Council of Mortgage Lenders.

Click here to read the whole article Taxpayers subsidise buy-to-let landlords by £2bn

Tuesday 25 September 2012

Exclusive Offer From NetRent

Save an Extra 10% on Landlord Insurance


We are delighted to announce an exclusive offer only available through NetRent.co.uk. Our business partners Towergate now offer all NetRent customers an extra 10% off the cost of landlord insurance. This is how it works:

1. Obtain a quote from Towergate Risk Solutions in Sevenoaks

2. Agree that quote with Towergate

3. Claim your extra 10% discount by quoting Ref NRT12

For more information please telephone Towergate on 01732 747599 or phone NetRent on 01352 721300.

For more information on the Towergate range of products and services please click here: Insurance through NetRent.co.uk

Friday 21 September 2012

Lettings market strengthens

LSL Property Services said in England and Wales the average rent rose by 1.2% to £734 per month in August, surpassing July’s record high of £725. Rents climbed by 2.9% compared to August 2011. 

Tenants saw rents reach record highs in five regions in August, hitting new peaks in London, the South East, the East of England, the North West and Yorkshire & the Humber.

On a monthly basis, rents rose in eight regions. The South East saw rents climb the fastest for the second month, rising by 2%, while rents in both London and the East of England rose by 1.6%. Rents decreased in Wales and the West Midlands.

Click here to read the full article Lettings market strengthens

Monday 20 August 2012

Rent Arrears On The Rise


According to a survey conducted by the National Landlords Association (NLA), rental arrears are on the rise.
49% of landlords questioned have experienced rental arrears in the last 12 months and 37% of landlords are worried about instances of arrears in the months ahead.

According to the research, a typical NLA member landlord, is owed £2,363 by tenants.
Arrears problems are also affecting small scale landlords (landlords with one letting), including accidental landlords, who make up a large proportion of all landlords. In fact, according to the NLA, 16% of landlords with one letting are making a loss on their investment.

One way for landlords to minimise rental arrears is to thoroughly check tenants before handing the keys over. NetRent are encouraging all landlords and letting agents to join TenantVet.

This free service enables landlords and agents to register every tenant and let other landlords and tenants whether the tenant has been a good tenant or not.
Landlords and agents thinking of renting to a tenant can check their rating on TenantVet – again at no cost.

TenantVet complies with data protection legislation and is being used by an increasing number of local authorities who are also recommending TenantVet to landlords and agents in their area.
NetRent believes that if landlords and agents work together by registering every tenant the numbers of tenants in arrears will decrease. Good tenants will be rewarded and bad tenants will be ‘named and shamed’.

But TenantVet will only work if the majority of landlords and agents join and register their tenants. Remember – this service is free and once you are logged in it takes just seconds to complete each tenant.
Help yourself and other landlords and agents and join TenantVet now.

Or ring NetRent on 01352 721300 or use this form ContactNetRent

Monday 2 July 2012

Tenants' deposit protection schemes launched in Scotland

New schemes have been launched which require all Scottish landlords to protect tenants' deposits.
Landlords must now hand over deposits to an independent third party.

Three government approved schemes have been set up following the introduction of new regulations last year.

It is hoped the initiative - free for landlords and letting agents - will prevent agents holding on to money on false grounds.

Click here to read the full story Tenants' deposit protection schemes launched in Scotland

Wednesday 27 June 2012

English Council to License All Landlords

The London borough of Newham is to become the first local authority in England to license all private landlords. The programme is due to come into force on 1 January, 2013.

The council claims it has consulted extensively with residents, stakeholders, private sector tenants, landlords and lettings agencies. Newham claims that seventy-four per cent of residents and 76 per cent of private tenants supported the borough-wide licensing scheme. Interestingly there appear to be no figures available on how many landlords support the scheme.

Private landlords will pay £150 for a five year license if they register before 1 January, 2013. Otherwise the full fee is £500. Landlords who fail to license face fines of up to £20,000.

As we have reported on this News Blog previously many other local authorities have been watching the Newham experiment carefully and many plan to introduce a similar scheme.

Newham have no plans to introduce any licensing of tenants, so the clear inference is that all the housing problems in the borough are the fault of landlords. Newham mayor Sir Robin Wales said: "This scheme shows that Newham is leading the country when it comes to tackling bad landlords who flout the law.

"We want to ensure that private sector rented properties are well managed and meet a good standard. We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing.”

This view was, unsurprisingly, supported by the charity Shelter who urged other councils to follow Newham’s lead. Kay Boycott, director of communications, policy and campaigns at Shelter, said: "We are delighted to hear that Newham Council will be introducing this scheme, which will help protect vulnerable tenants from rogue landlords who are making their tenants' lives hell.

"We urge other local councils to follow Newham's lead in sending a clear signal that enforcing the law against rogue landlords is a priority."

Kay Boycott failed to mention that Newham already has around 70 pieces of legislation it could use to tackle ‘rogue landlords’. Neither the council nor Shelter offered any explanation as to why they are not already using existing legislation to tackle the perceived problem.

So the real question is exactly why does Newham feel it needs to charge landlords? Could it be that Newham’s decision is a ‘nice little earner’ for the council? According to their own figures if every landlord registers before the 1st January deadline Newham stand to raise in the region of £5.25 million. They will raise considerably more if landlords are late with their applications.

The Scottish Government already has mandatory landlord licensing and the Welsh Government has said it will also introduce landlord licensing. However, unlike Scotland or Wales, it seems that landlord licensing in England will come into effect council by council with each council able to set its own tariff.


Have your say about Newham’s decision:


Wednesday 23 May 2012

Mandatory Licensing for Landlords Moves Closer

Mandatory licensing for landlords throughout Great Britain continues to move closer. Scotland already has mandatory licensing for landlords and now the Welsh Government has issued a White Paper which will require all landlords to register.

In England Newham Council has completed the first phase of its plan to introduce mandatory licensing throughout the borough – a plan that is being closely monitored by other local authorities.
The last Labour Government looked closely at mandatory licensing but chose not to introduce it. The current Government say that they have no plans to introduce such a scheme. But it now seems that many local councils will introduce mandatory licensing no matter what Government may think.

Sir Robin Wales, Mayor of Newham, said about the first phase of licensing: "We want this to be just the start. Good landlords have nothing to fear from this scheme. For the bad ones, this a clear message they must clean up their act”.
This is despite Newham already having access to around 70 pieces of legislation they could use against bad landlords. Newham have not explained why they are not robustly using existing legislation to tackle what they clearly believe is a serious problem of bad landlords.

Kay Boycott, director of communications, policy and campaigns at Shelter, said: "We are delighted to hear that Newham Council could be introducing this scheme, which would help protect vulnerable tenants from rogue landlords who are making their tenants' lives hell”.
Landlords will note the use of the emotive phrase ‘rogue landlords’ which ties in neatly with the current Shelter campaign called Evict Rogue Landlords.

At the same time landlords will note, without any surprise at all, that neither Newham or Shelter have announced any plans to help landlords deal with bad tenants.
Whilst everyone would agree that eradicating bad landlords would be of great benefit to the vast majority of good landlords throughout Great Britain, it is difficult to view these schemes as anything more than a money raising exercise for local authorities at the expense of landlords.

What Newham and Shelter seem to fail to recognise is that landlords will have to pass the cost of licensing on to tenants. They also seem to fail to understand that this will also put people off becoming landlords. Ultimately this will only serve to increase costs and reduce options for tenants. This is at a time when the country is crying out for more decent, affordable housing.
The whole landlord licensing exercise is one-sided. It assumes that there are only rogue landlords and that there are no rogue tenants. Only landlords need licensing according to councils like Newham and bodies like Shelter and the CAB. There is no initiative to license or regulate tenants.

As our Facebook campaign ‘The Damage that Some Tenants Do’ showed there is a significant minority of tenants who cause massive damage to rental properties costing landlords £ millions a year. This is ignored by councils like Newham and campaigns like Shelter’s Evict Rogue Landlords.
To help landlords and letting agents identify bad tenants NetRent will shortly launch a brand new service. Landlords and agents will be able to register good and bad tenants on a nationwide database which fully meets Data Protection and Human Rights legislation.

This database will be free of charge and open to every landlord and agent in the UK. We will also be working with our business partner to offer this service to every local authority in the country. We believe that this database will be of huge benefit to landlords, agents and tenants and will help start and maintain a partnership between good landlords and tenants that is so desperately needed.
Good landlords, good agents and good tenants working together – this is just what the UK lettings industry needs – not more cost and regulation. Our next newsletter will bring you full details of this exciting new service and how you can join to make the whole industry better for everyone involved in it.

Friday 11 May 2012

Landlords "relieved" that squatting is a criminal offence

Landlords are "relieved" that squatting is soon to be a criminal offence in the UK.

In a statement issued by the Landlord Syndicate this week, the support centre welcomed the news that squatters will face up to a £5,000 fine and a six-month prison sentence from 1st September 2012.

Click here to read the full story Landlords "relieved" that squatting is a criminal offence

Thursday 10 May 2012

The woman who lives in a shed: how London landlords are cashing in

Maria's front door has a house number – 48 – screwed in to the wood and its own letterbox, but it isn't possible for a postman to get here to deliver anything. The healthcare assistant's home is a shed in the back garden of a shabbily converted bedsit property, only accessible via the main building and through the filthy, rubbish-strewn yard.

Her thrifty landlord has recycled the front door from another property, but Maria likes it; she likes having her own entrance and her own privacy. On balance, she thinks the shed is a better place to live than the crowded HMO (house of multiple occupation) she was in before. It has electricity and a tiny kitchen which leads into a bathroom, but there's no hot water, so when she wants to wash she needs to boil two huge vats of water on the stove.

Click here to read the full article The woman who lives in a shed: how London landlords are cashing in

Saturday 5 May 2012

Buy-to-let at risk as tenants demand to see mortgage permission

Tenants are increasingly asking to see the landlord’s permission from the mortgage lender to allow a residential property to be let.

This is a particular problem for ‘amateur’ landlords – for example, those who choose to let their property until they can find a buyer – many of whom do not ask the lender’s permission to let, as this would almost certainly involve an increase in their mortgage costs.

Click here to read the whoile article Buy-to-let at risk as tenants demand to see mortgage permission

Thursday 3 May 2012

Scottish government proposes clamp down on buy to let landlords who give tenants a poor deal

A consultation period regarding the Scottish Government’s proposals for the future of the private rented sector has begun and will run until Monday 28 May 2012.

The proposals follow the approval of a compulsory tenant deposit scheme by Scottish Housing Minister Keith Brown.

The first tenancy deposit scheme to be approved is the Letting Protection Service Scotland.

The scheme also aims to protect the reputation of the majority of private rented sector landlords who act professionally and responsibly.

Click here to read the full article Scottish government proposes clamp down on buy to let landlords who give tenants a poor deal