Currently viewing the tag: "generation rent"
Landlords Outraged At Right To Rent Prison Threat

Landlords Outraged At Right To Rent Prison Threat

Landlords Outraged At
Right To Rent Prison Threat 

Private rental sector landlords and letting agents have expressed outrage over proposed amendments to the forthcoming Immigration Bill (2015) expected to be introduced in September, when MPs return from their summer break.

Section 20 – 37 of the Immigration Act 2014 contained the provision to make it compulsory for landlords to check the immigration status of all new adult tenants. Now officials want to enforce the measures, in order to strengthen their grip on the private rental sector (PRS).

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PRS Rental Prices Keep Going Up

PRS Rental Prices Keep Going Up

PRS Rents Increase 2.5% In The Past Year

According to the Office for National Statistics (ONS) latest Index of Private Housing Rental Prices, tenants in the UK’s private rental sector (PRS) have seen rents increase by an average of 2.5% in the 12 months up to June 2015,.

Private rental prices increased across the whole of the British isles with rents increasing by:

  • 5% in England
  • 1% in Scotland
  • 8% in Wales

PRS rents increased across all English regions during the year with rental prices increasing by 3.8% in London, while the overall Consumer Price Index (CPI) inflation stood at 0% over the same period.

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Politicians Want PRS Control

Politicians Want PRS Control

Labour Announces Further PRS Controls

The Labour party leader, Ed Miliband, has announced his party’s plans to reform the private rented sector (PRS), with longer term tenancies and rent cap proposals, should they win the May general election.

Labour have been at the forefront of the PRS reform movement for some time, campaigning for longer term tenancies for tenants in the private sector and now the political party leaders want to introduce even more legislation that would effectively cap rental prices so they cannot be increased by more than the rate of inflation (CPI) during the proposed secure three-year tenancies.

The PRS control proposals were supposed to win the hearts and minds of the 9.1 Million households currently living in private rented sector properties, however even tenant campaign groups can see that these new proposals have more holes in them than an old Swiss cheese.

The introduction of new legislation that Labour are proposing would require landlords and letting agents to disclose the rental prices charged to any previous rented property occupants, allowing tenants to have the upper hand in negotiating the best possible rental price with landlords, before the start of a new tenancy.

Do TESCO provide customers with information concerning the actual purchase price that they pay for items before they sell them on at a huge profit, do they reveal operational profit margins – No they don’t!
Prices fluctuate as do operational costs, why should landlords be singled out for special measures when other business sectors are left alone?

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UK Private Rental Sector Landlords Fear Upcoming General Election

UK Private Rental Sector Landlords Fear Upcoming General Election

UK Private Rental Sector Landlords Fear Upcoming General Election

With The UK’s next General Election less than 80 days away it is feared by some economists that many UK private rental sector (PRS) landlords will choose not to expand rental property portfolios this year.

Fluctuations in regional property prices and housing legislation changes have already hit the UK property market, and now the electioneering hype being spouted by MP’s from all political parties is doing very little to encourage landlords to increase their rental property portfolios.

Already there is a great deal of talk and speculation about the possible introduction of rent controls and the threat of increased taxes for landlords as the current Government and opposition MP’s attempt to leverage the strength of the UK’s buy to let property market.

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Tenancies Reform Bill Fails On Technicality

Tenancies Reform Bill Fails On Technicality

Tenancies Reform Bill Fails On Technicality

UK private rental sector (PRS) and social landlords were able to breathe a sigh of relief on Friday 28th November 2014, when the controversial Revenge Eviction Bill, or to use its correct title, the Tenancies Reform Bill, presented by Lib Dem MP Sarah Teather, failed to progress past its first reading in the House of Commons.

Rather than failing on a vote, the bill failed on a technicality after MP’s Philip Davies and Christopher Chope chose to talk it out, known as filibustering, because there were not enough MP’s present in the House of Commons to vote for the Bill. The debate started at approximately 9.30am and parliamentary procedure dictates that only Bills which remain unopposed after 2.30pm may make further progress.

MP’s who supported the Bill tried bringing forward a closure motion, to end the debate and call for an early vote, however for a successful majority, at least 100 MP’s must support it, but the motion was only supported by 60 MP’s and the debate on the Bill subsequently ended.

In order for the Tenancies Reform Bill to become law by the next election it must pass a second reading stage in the House of Commons, but it is not certain whether the Government will commit more parliamentary time to debate the Tenancies Reform Bill to try to force it through.

UK PRS and social tenants do need to be protected from the small minority of rogue landlords, and so do good, reliable, law abiding landlords.

It is far from fair that the majority of upstanding landlords should be expected to alter legal business practices because of criticism drawn by a few rogue operators within the UK’s private rented sector.

The Tenancies (Reform) Bill proposed restrictions on the serving of section 21 notices even where only a “hazard awareness notice” has been issued by a council. Landlords wouldl also be prevented from serving a section 21 notice where an improvement notice has been served on a rental property relating to category 1 or category 2 Hazards under the HHSRS rating system, or where the rental property requires emergency remedial action.

Tenants would also be able to challenge section 21 notices where they had complained to the landlord or council before the notice was issued, but the council was still deciding whether to even inspect the property in question.

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More Details Emerge On Government Demand For Transparency Over Letting Agent Fees

More Details Emerge On Government Demand For Transparency Over Letting Agent Fees

More Details Emerge From Government
On Letting Agent Fees Debate

The Government have declared that all UK letting agents and property management agents must display full details of all fees charged to tenants on websites and in offices.

Deputy Prime Minister, Nick Clegg faced a tough grilling at his House Of Commons session from Labour MP Harriet Harman, who wanted the Government to back the ban on letting agents charging fees to tenants.

Ms Harman told MPs: “Not least because of the difficulties of affording to buy a home, there are now 9 million people renting, including 1.3 million families with children – security and continuity are particularly important for them. It is time to move from one-year tenancies with unpredictable rents to three-year tenancies with predictable rents. What we need to be sure is that letting agents do not rip tenants off by charging fees to the tenants, as well as charging the landlords.”

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UK PRS Expanded By 1 Million Households In 5 Years

UK PRS Expanded By 1 Million Households In 5 Years

One Million More Rented Households In UK
Since 2009 With More To Come

It has been well documented over recent years that there has been a cultural and generational shift towards renting in the UK with “Generation Rent” emerging as the dominant force in the UK property market.

The shift towards the continental style of living in rented property has been largely influenced by the difficulty for people to raise the necessary deposit and finance for property ownership.

CBRE believe that significant activity by UK Buy-to-Let property investors and foreign nationals acquiring property in major towns and cities within the UK has also contributed significantly, and the influence of these interested parties is still growing.

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Expect 1 Million More PRS Tenants In 5 Years

Expect 1 Million More PRS Tenants In 5 Years

UK PRS should prepare for a million more tenants, say Savills

Giant UK estate agency, Savills are predicting a massive increase in the number of tenants living in the UK private rented sector (PRS) over the next five years.

The company is also predicting that more UK housing associations will seize upon a fantastic business opportunity and that these associations will add to increasing competition for private rented sector landlords.

Savills say there were 4.3 million tenanted households in the private rented sector in the UK during 2011 and tenant demand remains strong despite the recent upturn in the UK economy and recovering housing market, leading to the prediction of at least another 1 Miliion additional tenancies being required over the next five years.

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Buy-To-Let Mortgage Lending Increases By 31%

Buy-To-Let Mortgage Lending Increases By 31%

UK Buy-To-Let Mortgage Lending Hits £5 Billion (GBP)

The resurgence of property investment in the UK means that landlords are extending their rental property portfolios and cashing in on the strong demand for rental property from “generation rent”.

The buy-to-let boom has seen mortgage lending reach another milestone as latest figures released by the Council of Mortgage Lenders (CML) show that mortgage borrowing has hit a five-year high, and the Bank of England’s (BoE) historically low interest rates are predicted to fuel even more growth in the sector.

Buy-to-let mortgage lending has continued to excel expectations as the latest CML data shows £5.1 Billion (GBP) was advanced to landlords in the second quarter of 2013, that’s 21% up on the first quarter of the year and up 31% on 2012 figures.

The new governor of the Bank of England, Mark Carney, has indicated that interest rates are expected to remain low until at least 2016, encouraging further growth in the UK private rental sector (PRS).

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Buy-To-Let Remortgaging Eclipses Property Purchase Borrowing

Buy-To-Let Remortgaging Eclipses Property Purchase Borrowing

Buy-To-Let Remortgage Surge

Buy-to-let remortgages have witnessed a huge surge in demand during the second quarter of 2013, as existing landlords refinance to raise capital for further rental property purchases.

Remortgaging activity has eclipsed all other types of mortgage transactions covering multiple property types, other than granting new mortgages for buy-to-let property purchases.

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