Research Find Landlords are Key Market for Eco Installers Under Green Deal

New research from the Energy Saving Trust has found that tenants in private rented housing want to go green – but are least likely to be benefiting from energy efficient, money saving upgrades.

The survey of more than 2,000 UK adults found of those living in privately rented housing:

• 39 percent were interested in an energy efficient boiler upgrade
• 44 percent were interested in double glazing
• 45 percent were interested in insulation

When it comes to insulation research shows that homes in private rented accommodation with cavity walls are least likely to have cavity wall insulation fitted (34 percent) compared to homes owned outright or mortgaged (51 percent).

The biggest opportunity for the private rented sector is solid wall insulation, with nearly half of homes being suitable for this measure, which is approved to receive funding under the ECO as part of the Green Deal.

Energy Saving Trust housing strategy manager David Weatherall said: “This is a win-win situation for both landlords and tenants. Landlords get home improvements without the upfront costs, and tenants have warmer homes to live in.

“The problem’s been that over half of private rented homes were built before 1944. They’re often cold, expensive to heat and most have traditional solid walls. In the past there have been few grants to improve insulation in these solid wall homes. But now, substantial financial support for solid wall insulation is available to all GB private landlords under the ECO grant scheme, which is linked to the Green Deal.

“ECO will provide some of the funding for solid wall insulation, while the rest will come from a Green Deal loan with the money being paid back through financial savings on energy bills. The massive savings from solid wall insulation – typically around £490 per year – should cover the Green Deal repayments.”

Energy Saving Trust’s UK databank of home-by-home information lets organisations and installers target the right homes with advice about the right energy saving improvements at the right time. Following the launch of Green Deal and ECO, the Energy Saving Trust is urging tradespeople and builders undertaking refurbishment work in the private rented sector to encourage landlords to consider green upgrades and allow them to take advantage of the schemes.

All installers need to acquire Green Deal Installer certification to offer energy saving improvements through the Green Deal. Energy Saving Trust is the only consumer-facing organisation providing Green Deal Installer certification, making it a recognised brand for potential customers. 

Private rented accommodation is traditionally seen as some of the country’s ‘energy leakiest’. Landlords have a responsibility to provide habitable conditions for tenants by making sure the home is adequately insulated, and by 2018 homes with the two lowest Energy Performance Certificate ratings will be unfit for rental under Department of Energy and Climate Change (DECC) rules.

Green Deal enables private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses with no upfront payments. Costs are recouped – as savings accrue – through a charge in instalments on their energy bills, with money passed on direct to Green Deal providers by energy companies.

The Energy Company Obligation (ECO) is the Government’s new domestic energy efficiency programme, and is designed to supersede the CERT and CESP programmes. It will work in parallel with the Government’s Green Deal from the end of January.

ECO will create a legal obligation on certain energy suppliers to improve the energy efficiency of domestic households, particularly those on low income and those requiring more expensive energy-saving upgrades.

Click here to read the original article "Research find landlords are key market for eco installers under Green Deal"

'Give Private Landlords Tax Relief to Relieve Homelessness Crisis'

Private landlords should be given tax breaks in order to relieve the housing crisis, London Councils has urged.

The capital's councils claim that the withdrawal of private landlords from the social housing market has forced them to put more homeless people in bed and breakfast accommodation.

The latest figures show that nearly 900 families with children have been in put up in B&Bs for longer than the six-week limit set out in government guidance.

According to a survey of London housing directors, the number of private landlords willing to let to homeless people on benefits has dropped by around 20 percent in the last year.

Now London Councils - the umbrella organisation that represents the Capital's 33 local authorities - has started discussions with the Department for Communities and Local Government (DCLG) about a programme of action to bring private landlords back into the social housing market.

These include tax relief for landlords to increase the supply of private sector rented properties, improvements to government schemes to bring empty private properties back into the market and better joint working between government departments and local government.

Private landlords no longer need to rent to homeless people on benefits because the lack of housing in the capital promises both continually rising rents and a ready supply of tenants in employment.

Landlords also see employed tenants as more secure compared to tenants on benefits.

London Councils' Executive Member for Housing, Mayor Sir Steve Bullock, said: "While we need to address the long term housing shortage in London, we need to act now to tackle the acute housing crisis in the capital - primarily caused by the chronic shortage of temporary accommodation available for councils to place homeless Londoners.

"While local authorities have been doing their very best to mitigate the impacts, we need a concerted effort by central government departments and councils to take action to ensure a supply of good quality, affordable homes in the private rented sector.

"Londoners deserve to have safe, affordable and secure places to live. We hope to work alongside the government to make this a reality."

Click here to see the original article: "'Give Private Landlords Tax Relief to Relieve Homelessness Crisis'"

Update on the Government Inquiry into the Private Rented Sector

Communities and Local Government Committee

Select Committee Announcement

House of Commons London SW1P 3JA

Tel 020 7219 4972/1353 

Email clgcom@parliament.uk 

Website www.parliament.uk/clg

Media inquiries: Hannah Pearce 020 7219 8430 07917 488162 pearcehm@parliament.uk

Wednesday 30 January 2013 For Immediate Release

ORAL EVIDENCE SESSION

Private Rented Sector

Monday 4 February 2013

4.10 pm

• Dr Tim Brown, Director, Centre for Comparative Housing Research, De Montfort University
• Professor Martin Partington CBE, QC, Emeritus Professor of Law, University of Bristol
• Dr Julie Rugg, Senior Research Fellow, Centre for Housing Policy, University of York

5.00 pm

• Kay Boycott, Director of Communications, Policy and Campaigns, Shelter
• Cllr Tony Newman, Member of Environment and Housing Board, Local Government Association 
• Jacky Peacock OBE, Secretary, National Private Tenants Organisation
• Alan Ward, Chair, Residential Landlords Association

This inquiry is examining private rented sector housing, particularly the quality of housing in the sector, rent levels and the regulation of landlords, letting agents and houses in multiple occupation (HMOs) and tenure. This is the first oral evidence session and is focused on key issues facing the private rented sector.

The session will be open to the public on a first come, first served basis. For meetings in the Palace of Westminster please enter via the visitor entrance, located next to the main St Stephen’s entrance. For meetings in Portcullis House, the entrance is located on Victoria Embankment. There is no system for the prior reservation of seats in Committee Rooms. It is advisable to allow about 30 minutes to pass through security checks. Committee rooms and the timing of meetings are subject to change. Those interested in attending the session should check the venue by contacting the House of Commons Public Information Office on 020 7219 4272 on the day before the hearing.

FURTHER INFORMATION:

Committee Membership is as follows: Mr Clive Betts (Chair, Lab), Bob Blackman (Con), Simon Danczuk (Lab), Bill Esterson (Lab), David Heyes (Lab), James Morris (Con) Mark Pawsey (Con), John Pugh, (Lib Dem, Southport), Andy Sawford (Lab/Co-op), John Stevenson (Con) and Heather Wheeler (Con).

Specific Committee Information: clgcom@parliament.uk 

020 7219 1353 or 020 7219 4972

Media Information: Hannah Pearce, 020 7219 8430 or 07917 488162

Committee Website: www.parliament.uk/clgcom

Watch committees and parliamentary debates online: www.parliamentlive.tv

Cost of Government Green Measures for Private Landlords Revealed

Landlords are being urged to consider what works may be required to improve their property’s EPC ratings sooner rather than later to stay ahead of planned regulation.

Research provided by the BPF and Energy Saving Trust has shown that the cost of improving a typical F-rated property to an E rating – which is likely to be the minimum standard for private rentals from 2018 – ranges from just £100 up to £660.

However, improving the property to the highest possible EPC rating could cost almost £20,000.

With December’s census revealing home ownership had fallen for the first time since records began and the number renting from a landlord doubling to 3.6 million homes, improving energy efficiency in the private rented sector will be key in helping to meet the government’s climate change obligations.

With this in mind, the British Property Federation and the Energy Saving Trust today published a free guide explaining how landlords can plan and fund improvements to help ensure their investment will be lettable from 2018.

British Property Federation senior policy officer Thomas Younespour said: “The importance of a property’s EPC rating is likely to increase in the coming years.

“Not only have the rules been tightened over the provision and display of EPCs to prospective tenants and buyers, but regulations are planned for April 2018 to ban the letting of property with the poorest ratings – likely to mean F and G-rated property.

“The details of such regulation are yet to be set out, but nonetheless indicate clear intent. It is often during void periods that improvement works can best be undertaken and therefore landlords are advised to consider sooner rather than later the energy efficiency of their properties and prepare a forward plan for works.”

The British Property Federation's guide on Energy Efficiency can be found here:  Energy Efficiency Guide 

Click here to read the original article: "Cost of Government Green Measures for Private Landlords Revealed"

Labour MP Kerry McCarthy Seeks Crackdown on Rogue Landlords

Bristol East Labour MP Kerry McCarthy has accused the Government of failing to protect tenants in privately-rented accommodation from rogue landlords.

Ms McCarthy is worried that as the private sector continues to expand, tenants are now facing a lack of security, poor quality accommodation and record rents.

She said this combination puts families and young people living in Bristol under considerable pressure.

In Bristol, private rents have risen 4.1 per cent over the past year, with 60,000 households reported to be renting privately in the city.

She said: "In cities like Bristol, families and young people are becoming increasingly squeezed by increasing rents and they have little security in terms of tenancy agreements.

The Government cannot go on ignoring this problem. Renting privately has to be fair for both the tenant and the landlord. I know from attending the Housing Benefit Poverty Hearing in Bristol, that tenants have had enough of rip-off fees from letting agents, instability from landlords and ever rising rents."

Click here to see the original article "Bristol MP Kerry McCarthy seeks crackdown on rogue Landlords" 

Scottish Landlord Registration

Figures obtained by the Scottish Conservatives reveal that the cost of identifying each rogue landlord is a staggering £410,000. In addition the cost of running the Scottish landlord registration website is an amazing £300,000 a year.

To date Scottish landlords have spent £11.2 million in fees and the Scottish Government gave a grant of £5.2 million to start the landlord registration scheme. So in total £16.4 million has been spent and yet only 40 landlords have been refused registration compared with over 200,000 who have been successful.

This is the type of scheme Labour leader Ed Miliband wants to see rolled out in England and both the Welsh Government and the Northern Ireland Assembly want to follow suit.

This could mean that landlord registration throughout the UK would cost at least £98 million and have annual running costs of at least £1.8 million. At the same time we could expect to see just 240 rogue landlords identified throughout the whole of the UK.

Scottish Tory housing spokesman Alex Johnstone said: "This farcical programme, introduced with the best of intentions, is failing to deliver at a tremendous cost to the taxpayer.

"And responsible people with aspirations to get into the property business are being hit in the pocket because of this inadequate scheme.

"The private rented sector is playing an increasingly important role in delivering solutions to housing need in Scotland, and we need a robust an efficient mechanism to help achieve that.

"These figures suggest that, at the moment, the Private Landlord Registration Scheme is not it."

The question has to be asked whether or not the amount of time, effort and money this scheme has cost represents good value for money for the Scottish Private Rented Sector and whether, based on these figures, there is any justification for rolling landlord registration out throughout the rest of the UK.

Northern Ireland MP Calls for Licensing of Private Landlords

An MP has called on the Minister for Social Development to consider the introduction of a licensing scheme for private sector landlords who operate in Northern Ireland, during a parliamentary session this week.

Gregory Campbell, MP for the Democratic Unionist Party, tabled a motion to ask the minister to consider the scheme due to the changing nature of housing stock in Northern Ireland as a result of the economic downturn and banking difficulties.

Campbell said the resulting expansion of the private sector and the “accidental landlord” factor, whereby individuals come by properties they do intend to live in, meant landlords should not only be registered but a licensing scheme should be introduced.

He said: “I know that the minister has done some considerable work on the registration process. However as that develops through the year, we would like him to give consideration to a licensing scheme beyond that.”

Nelson McCausland, the Minister for Social Development in the Northern Irish government, said the landlord registration scheme was on track to be ready by the summer and a licensing scheme was a natural progression.

All landlords operating in Northern Ireland will be required to register as soon as a new tenancy is created and within 12 months if they have existing tenancies.

When the landlord registration regulations were proceeding through the Assembly it was specified that a register of landlords was the first step to making improvements in the sector.

McCausland said private rented sector licensing is how local authorities in England are seeking to improve the regulation of their private rented sectors.

English authorities are using powers in the Housing Act 2004 to ensure that rogue landlords are unable to operate while Scotland already has compulsory landlord registration and Wales is currently working on its own scheme.

A licence is issued only where landlords declare any criminal convictions, meet health and safety standards and have adequate systems in place for their tenants to report repairs and defects.

Landlords without a licence may be prosecuted and may no longer be able to operate their businesses.

He added: “If we decide that licensing is the next step for the private rented sector new legislation will be required.

“Members may be interested to learn that I am already considering the benefits of requiring landlords of houses in multiple occupation to have a licence before they may operate and that too would require new legislation and the support of the Assembly.”

Click here to read the original article "MP Calls for Licensing of Private Landlords" 

Landlord Aiming to Help Vulnerable Family has Croydon Property Ransacked by Tenants

A LANDLORD said he did not know whether "to laugh or have a heart attack" when he discovered this three-bedroom family home had been utterly ransacked by the outgoing tenants.

Mohamed Shabir, who owns 45 homes across south London, said he believed the damage caused – including stripping the property of its piping – would cost £20,000 to repair.

And he claimed it was situations such as this that put landlords off renting to social housing tenants and exacerbated Croydon's critical housing shortage.

"All the time you hear that tenants get a bad deal from their landlords – but this is the reality. It has happened to me four times now and I can't let it happen again," he told the Advertiser.

"I'm not the only person this has happened to – it happens all the time.

"The council says we should take on more social housing tenants, but this is what happens when we do."

Damage caused to the three-bedroom north Croydon property, whose precise location the Advertiser is not publishing for legal reasons, included:

Floorboards ripped up to steal copper piping

The boiler torn from the wall and stolen

Doors pulled from their hinges and furniture trashed

The gas meter was stolen

Mr Shabir is adamant the damage was done by his former tenant and her "druggie" boyfriend and was not the result of a subsequent break-in.

And to make matters worse, the Tooting-based landlord said he was now unable to contact the woman because she is in a women's hostel.

"I've reported it to the police but they're not interested," he added.

Mr Shabir said his tenant had been recommended by Bromley Council after fleeing domestic violence.

"I thought I was doing a good thing – giving a home to a vulnerable family – but this is how I am repaid," he said.

"What they [the council] need to do is to make the tenant responsible for their actions. They have to warn the tenants that this kind of behaviour is not acceptable.

"If they are going to do something like this, the money should be taken from their benefits.

"If there was going to be a real consequence for them, then they would soon stop doing this sort of thing."

Police said they were investigating the case.

Click here to view the original article "Landlord Aiming to Help Vulnerable Family has Croydon Property Ransacked by Tenants"

New Plans to Solve Scottish Housing Disputes

Steps to help resolve disagreements between tenants and landlords will be outlined in a consultation being launched today.

The Housing Panel consultation will look at the best ways to prevent disputes from arising between landlords and tenants in the private and social rented sectors, and to help parties to resolve issues themselves with input from an independent mediator.

The consultation will also discuss the creation of a housing panel to settle such disputes. Options for this include: a problem solving panel to try and resolve cases before they reach court; or the creation of a specialist housing tribunal which would make decisions instead of a court.

Housing and Welfare Minister Margaret Burgess said:

"Every year, huge amounts of time, money and resources are spent to no effect trying to resolve issues that arise between tenants and landlords.

"This is something I have experienced first hand while helping people in previous roles, and it is absolutely vital that we come up with solutions to ensure that disputes are resolved as quickly and as painlessly as possible.

"While the majority of those in the rented sector enjoy good relationships with their landlords, this consultation will address those cases where this does not happen and will extend support where most required.

"This will help us come up with new ways to resolve the few difficult issues, through seeking the advice and recommendations from our key stakeholders and third party groups."

Alan Ferguson, Director of Chartered Institute of Housing Scotland, said:

"CIH Scotland has been seeking an alternative route of redress for housing cases in Scotland for many years and it is pleasing that the rationale behind this is also recognised by Scottish Government in the form of this consultation.

"It marks a very significant stage on the journey to the modernised, efficient system we have been calling for. What is important now is that fellow housing professionals and legal specialists respond to the consultation and ensure that the opportunity to bring about fundamental change is firmly grasped."

Click here to read the original article "New Plans to Solve Scottish Housing Disputes"

Miliband Sets Out Plans to Protect Private Rented Housing Tenants

Labour leader Ed Miliband has pledged to protect private renters from rogue landlords while giving them more long-term security, as he fleshed out his One Nation philosophy.

The Labour leader said action is needed to prevent damaging social divisions between home owners and people who rent.

He pointed out that 3.6 million households – including one million with children – are now in privately rented accommodation – outnumbering the social rented sector for the first time in almost 50 years.

The opposition leader also once again looked to distance his party from New Labour.

‘We cannot have two nations divided between those who own their own homes and those who rent,’ Mr Miliband said in a speech to the Fabian Society.

‘Most people who rent have responsible landlords and rental agencies. But there are too many rogue landlords and agencies either providing accommodation which is unfit or ripping off their tenants.

‘And too many families face the doubt of a two month notice period before being evicted. Imagine being a parent with kids settled in a local school and your family settled in your home for two, three, four years, facing that sort of uncertainty.’

Mr Miliband said his party would introduce a national register of landlords and greater powers for local authorities to find and take action against rogue landlords.

They would also ’end the confusing, inconsistent and opaque fees and charges regime’, and make them easy to understand, upfront and comparable. And they would take steps to enable longer term tenancies.

He also said that if Labour wins the next general election, it will have to find ways of achieving change while tackling a lingering deficit. One Nation Labour has learnt the lessons of the financial crisis, he added.

A Conservative spokesman said: ‘Not once does Ed Miliband answer the tough questions, like how he would deal with the record deficit his Labour government left behind.’

Click here to read the original article "Miliband Sets Out Plans to Protect Private Rented Housing Tenants"

The NetRent Submission to the Communities and Local Government Committee Inquiry into the Private Rented Sector

NetRent Ltd has worked with the Private Rented Sector since 2003. We own and manage the largest independent lettings website in the UK with over 70,000 landlords and letting agents registered on our database. Before making this submission we contacted our database as asked for specific comments from landlords and agents by both email and direct to our Facebook site. This submission is based on both those replies and our own observations of the Private Rented Sector (PRS).

The feedback we received clearly stated that landlords and agents do not feel that there is any real need for further legislation of the PRS. The PRS is already subject to around 70 pieces of legislation. What is lacking is both the will and the means to implement existing legislation.

Landlords feel that there is a significant minority of landlords who fall ‘below the radar’ and it is those landlords who cause problems for the rest of the industry. It is felt that rather than target and deal with these ‘rogue’ landlords the authorities target good landlords and impose blanket regulation because good landlords are an easy target. At the same time problem landlords remain under the radar and avoid scrutiny.

Landlords clearly feel that decent landlords are targeted whilst bad landlords face little or no sanction.

There is a widely held belief that the emphasis seems to be that all the perceived ills of the PRS are the fault of landlords and agents. This attitude is both incorrect and divisive. Organisations like Shelter and the CAB continue to run concerted campaigns about rogue landlords.

This also ignores the fact that there are two sides to this equation. The impression given is that all landlords are rogue and that all agents are ripping off both landlords and tenants. Some time ago NetRent contacted Shelter and we tried to explain that there are rogue tenants. Shelter were not interested and were completely unwilling to change their campaign which appears to label all landlords as rogue landlords.

Although there are clearly landlords who can be described as rogue there is a significant minority of tenants who can also be accurately described as rogue. And yet all the focus and blame for the ills of the PRS is heaped upon landlords whilst tenants are viewed as innocent victims.

For example, we have been told of instances where some local authorities have encouraged tenants to fall into arrears and force landlords into implementing Section 21 notices before those authorities will re-house the tenants. At the same time local authorities are claiming that landlords are harassing tenants.

This ‘us and them’ attitude simply polarises the PRS. It breeds suspicion and contempt at a time when the PRS has never been more needed or vital.

There seems to be a belief that regulating landlords and agents will somehow cure all the industry’s ills. Local authorities tell NetRent that they do not have the resources or budget to regulate the PRS and the only solution is to register and charge all landlords as is done in Scotland or in Newham.

Newham’s own survey concluded that tenants are in favour of landlord registration but their survey failed to ask tenants whether they would be happy to pay for landlord regulation, because obviously the costs of regulation will be passed on to tenants.

At the same time there is a call for an end to up-front charges. This is already a fact of life in Scotland. This presupposes that there is no cost to setting up a tenancy, arranging for reference checking, inventories and the like. It is a remarkable assumption because clearly there are potentially significant charges to set up even a simple tenancy.

If Landlords and Agents are unable to charge tenants upfront for the costs of setting up a tenancy all that will happen is that the rent will have to increase to cover these costs. The Scottish Government claims that tenants want an end to up-front charges but has anyone asked Scottish tenants whether they are happy to see increased rents to cover these legitimate costs?

The fact is that these costs do not disappear because somebody doesn’t like them. There may be issues around the amount charged but it does cost money to set up a tenancy and ultimately it will be the tenant, as the customer, who will pay that cost.

The question also has to be asked whether or not benefit payments will be increased to cover the increased rents due to regulation and/or the ending of up-front charges.

As with any business if costs are added to that business it is the consumer, in this case the tenant, who will eventually pay those costs.

There is evidence that the overall standard of PRS housing is rising as tenants demand better facilities and landlords continue to improve their properties to attract and then keep good quality tenants. But as in all things this is budget led. There is no doubt that at the lower end of the market some landlords remain unconcerned about the conditions their tenants live in. It is this area that local authorities need to concentrate their efforts on.

However, without a local or central register of rented property finding those properties is difficult. Tenants are often reluctant to raise their concerns with either their landlord or the local authority for fear that they will face eviction. But there is a cost to running such a register and that cost will again have to be passed onto the tenant.

Unlike Scotland there is no central landlord register in England and Wales and it seems that the Government will allow each local authority to determine for itself whether to impose a register and at what cost to the landlord. This is legislation via the back door as is highlighted by Newham’s decision to register all landlords and many other authorities imposing discretionary licencing schemes.

It could also be argued that it is also democratically unfair. Often a landlord is subject to licencing because the property they own is in a licenced area whilst they themselves do not live in that local authority area and therefore have no say in what that authority intends to impose. Local Authorities claim that they consult before imposing licensing but landlords have told us that they are effectively excluded from this process and their concerns are ignored.

Landlords complained to us that they feel it is unfair that they might be forced to register, and pay for the privilege, whilst there is no requirement for tenants to do the same. This leaves landlords exposed to rogue tenants. As we explained above this attitude erroneously assumes that all the ills of the PRS can be ended if landlords and agents are licenced, managed and registered, whilst completely ignoring the fact that there is a significant number of rogue tenants.

There is also concern about who might run a landlord register and what such a register might be used for. For example, would the register be open to HMRC or private companies? Would landlords be forced to join a landlord association if the associations were tasked to run the register?

In general landlords are prepared to invest in their business and continue to raise standards but they feel that there needs to be a similar emphasis on imposing sanctions on the significant minority of rogue tenants.

Controlling rents within certain areas is only likely to move the PRS out of that area or prevent landlords from investing in that area. Therefore we believe that rent control is likely to lead to less rather than more PRS housing.

The default tenancy agreement is a 6 month assured shorthold tenancy but there is nothing to stop landlords and tenants agreeing a longer term contract. The fear that all landlords have is that their tenant will stop paying the rent.

It is essential that Section 21 notices remain available to landlords, both for the landlords’ peace of mind but also for the benefit of buy-to-let lenders. If Section 21 notices were changed or abolished, as some campaigners demand, lenders would not be able to gain vacant possession and therefore would be most unlikely to lend. This could lead to an immediate collapse in buy-to-let lending at a time when the emphasis should be on finding ways to expand the sector.

Security of tenure is a two-way business agreement between landlord and tenant. Landlords need to feel secure that tenants will pay the rent and respect the property. Tenants need to feel that their rent is fair and landlords will respond to their concerns.

It is vital that any legislation and implementation reflects this balance.

Most Local Authorities want to work closely with landlords and agents and many Authorities work very well with the PRS. However, local authorities have to work with the PRS and at the same time they have a statutory duty to ‘police’ the PRS. This can often be a difficult balancing act which can cause friction between landlords and Authorities.

Many authorities have set up Landlord Accreditation Schemes but these schemes often suffer from some basic flaws. The conditions required of landlords to become Accredited vary throughout the country and they often offer little tangible reward for landlords. Some Schemes are based on checking Landlords as ‘fit and proper’, some are based on checking that the property is ‘fit and proper’, some are based on both and some based on neither. There is little consistency throughout the country and even in those areas where a regional Accreditation Scheme exists implementation from Authority to Authority can vary widely.

Landlords are business people and need to see tangible benefits from spending time, effort and money in becoming Accredited. Landlords have complained to us that some Authorities seem more interested in teaching landlords in a classroom type setting about how to be landlords rather than adding value to the landlord’s business in the form of tangible benefits.

Suppliers and potential suppliers to landlords see little benefit in random ad-hoc Accreditation Schemes that only manage to attract small numbers of landlords and therefore are unwilling to offer benefits such as extra discounts or special rates to Accredited landlords.

Some authorities have ‘sub-contracted’ their Accreditation Schemes to Landlord Associations. Whilst this can work, this can cause landlords two specific problems. First, they are required to join that Association in order to become Accredited and they may not wish to do so. Second, landlords have expressed concern to us that they feel the role of the Associations is to campaign on behalf of landlords and landlords feel they cannot do that if the Association is effectively working on behalf of the Authority.

It is vital that Authorities and Landlords can work together, especially when dealing with homeless people, however, too often landlords see little or no reason to work with their Authority because they perceive no value in doing so. At the same time Authorities are not able to offer tangible benefits to landlords to work with them.

Landlords have also expressed their concerns about the Benefits system. They are concerned that if they house people on Benefits they will not get their rent paid. Overwhelmingly landlords have told us that they want to return to the old system where rents are paid direct to the landlord. Failing this they want a quick and easy system where tenants with cash flow problems can opt to have their rent paid direct to the landlord promptly without having to go through too many hoops to set this up.

Many landlords will not entertain the idea of housing tenants on Benefits under the current system. Many landlords will also not work with their Local Authority because they perceive no value in doing so.

All the evidence currently points to a shortage in the amount of properties available in the PRS. In early 2008 there were around 3,000 buy-to-let (BTL) mortgages available to landlords. This fell at one point to less than 250 and although the number of BTL mortgages has increased lenders have introduced a policy of excessive set-up costs and/or higher interest rates. In addition the number of BTL lenders remains historically low. All of which means that there is severely reduced competition in the BTL mortgage market.

The result is that whilst many landlords want to increase their portfolios they are unable or unwilling to do so under the current offers from BTL lenders.

One of the main reasons why rents are rising to record highs is a shortage of rental property. The Government could help ease this situation which in turn would help stabilise or even reduce rents by making the banks lend to landlords under more favourable terms. This would lead to more PRS property coming onto the market which would also help give impetus to the wider housing market.

Given the opportunity landlords could be a major factor in reviving the UK housing market, which in turn would greatly benefit the whole economy. The PRS has shown that it is extremely robust and has weathered the economic downturn vastly better than many ‘experts’ predicted in 2008 when lenders like Paragon were expected to follow the likes of Northern Rock into meltdown. Not only did the PRS survive it has become even more vital to the UK housing market.

The Government now needs to support the PRS and rather than impose more sanctions and legislation it needs to help the PRS to grow. The Committee needs to devise new and imaginative ways to work with rather than against the PRS.

Overall the UK PRS is a huge success story. It is vital that this message is not lost in the tide of negative publicity from organisations with their own narrow agendas and campaigns.

You can also make your own submission, please click here The Government Inquiry into the Private Rented Sector.  This must be done by the 11 am on the 17th January.

You can also make comments on our Facebook page, please click here The Netrent Facebook page or click here to post on the Netrent Forum.

Tenant Arrears Fall By 16pc

It's good news for landlords as the number of tenants in severe arrears has fallen for the first time in over a year.

New figures from Templeton LPA have shown that in the final months of 2012, the number of tenants in arrears of more than two months fell by 15.6pc. This contrasts with the trend in the preceding four quarters, where severe arrears rose by an average 10.8pc per quarter.

The number of tenants in severe arrears fell by 16,000 in the fourth quarter to 86,000 – or 0.3pc – the lowest level since the final quarter of 2011. Such tenants now represent 2.2pc of tenancies in England and Wales, down from 2.5pc in the previous quarter.

While severe arrears cases (tenants with arrears of more than two months) fell back rapidly, there was also a wider improvement in tenant finance. According to LSL's latest Buy-to-Let Index, overall tenant arrears fell in November, with 7.4pc of all rent late or unpaid. This compares with 8.1pc in the previous month.

"Tenants' finances have suffered a gruelling combination of rising living costs and rental inflation throughout much of 2012," said Paul Jardine, director and receiver at Templeton LPA. "With many budgets balanced on a knife edge, a slight reprieve from rapid rent rises towards the end of the year has been very significant. But the recent strength of the labour market has played the biggest role in halting the upwards climb in the number of tenants in severe financial difficulty."

Mr Jardine pointed out that unemployment has fallen dramatically to 7.8pc, with 44,000 more full-time jobs in the three months to November. He said that fewer households have faced seeing their monthly income halted and their ability to meet the monthly rent cheque hampered. "If the UK's economy can avoid falling into a triple dip recession in 2013, a further improvement in employment levels will go some way towards preventing arrears cases from rocketing up," he said.

However, those facing eviction through court order are yet to feel the impact of a better financial situation for tenants. In the third quarter, 25,756 tenants faced eviction notices, a quarterly rise of 5.5pc. On an annual basis this puts evictions marginally up, increasing 0.25pc from a year ago.

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UK house prices fell 1% in 2012, Nationwide says.

UK house prices fell by 1% on average last year, the Nationwide says, and it predicts a similar outlook for 2013.

The building society said that the average property was valued at £162,262 at the end of 2012, following a 0.1% drop in December.

Buyers nervous about the economy and a lack of mortgage availability meant there was relatively little housing market activity during 2012.

The 1% drop reversed a 1% average price increase in 2011, the Nationwide said.

However, the average price masked significant differences in property price changes in the different nations and regions of the UK.

For example, prices were 0.7% higher in London at the end of 2012 compared with a year earlier but dropped 8.2% over the same period in Northern Ireland.

The figures are based on the Nationwide's own mortgage data, and show less of a bubble in the capital than Land Registry figures released on Wednesday which indicated house prices in London had risen by 7% in the year to the end of October.

Outlook

The Nationwide said that conditions in the housing market remained "fragile", despite positive jobs news, with wages growing more slowly than the cost of living.

"The uncertain outlook for the wider economy is also likely to have kept many potential buyers on the sidelines, unwilling to make a major financial commitment until they feel more optimistic about the future," said Robert Gardner, the Nationwide's chief economist.

He said the reason that prices had remained "relatively resilient" in the circumstances, and had not dropped further, was that low interest rates had meant mortgages had remained affordable for many people.

This meant that people under financial pressure had not been forced to sell up, which would have increased supply and led to prices falling.

Mr Gardner predicted that activity would remain low in 2013, and prices would remain the same or dropping slightly throughout the year.

There have been slightly more optimistic forecasts from the Council of Mortgage Lenders (CML) and the Royal Institution of Chartered Surveyors (Rics), who have both predicted a modest rise in sales for 2013.

Completed sales were 6% higher during 2012 than they were the year before, according to figures from HM Revenue & Customs.

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