Currently viewing the tag: "Housing"
UK landlords are societies new favourite target for criticism

UK landlords are societies new favourite target for criticism

Everyone Appears To Be Taking A Pop At Landlords

I don’t think I am becoming paranoid but have you noticed that public attitude towards landlords has changed over the last couple of years?
I know opinion can be like the property cycle and generally rolls around, but have you spotted a few subtle and not so subtle digs being aimed at our profession?

Targeting the private rental sector and the landlords who provide tenants with much needed housing used to be the reserve of newspapers such as the Daily Mail, but now the derision is much more widespread.

Continue reading »

RLA find errors in wording of proposed deregulation act

RLA find errors in wording of proposed deregulation act

RLA Find Serious Drafting Error In Rented Housing Regulations Of Proposed Deregulation Bill

The Residential Landlords Association (RLA) have called on the Government to delay the implementation of the proposed Deregulation Act after they found errors in the wording of the document that would expose private rental sector landlords to a legal minefield.

The RLA published the following on their newshub

A major drafting error in Government regulations affecting the private rented sector risks undermining confidence in new legislation being applied to the sector.

The Deregulation Act, passed prior to the General Election, provides Ministers with the power to introduce a new standard form for landlords to complete and provide to a tenant when seeking to regain possession of a property on a no fault basis, known as a Section 21 notice.

With the form due to become legally binding from the 1st October, the Residential Landlords Association (RLA) has written to the Housing Minister, Brandon Lewis MP, to seek a delay following the revelation of a serious drafting error.

The standard form, as currently drafted, notes that where a fixed term tenancy ends and then turns into a rolling or periodic tenancy the Section 21 notice would only be valid for four months from the date that it is served on the tenant*.

This contradicts the Deregulation Act, which makes clear that the required period to regain possession of a property where a tenancy is a rolling or periodic tenancy, should instead be four months from the date the Section 21 notice expires**.

Despite having engaged thoroughly with the Government on its proposals, the final version of the standard form, published last week, had not been shown to the RLA.

The RLA is warning that the drafting exposes landlords to a legal minefield, and is calling for the implementation of the plans to be delayed to give more time to get them right.

RLA policy director, David Smith, said “The RLA continues to share the Government’s ambitions to ensure that all landlords understand and properly implement their legal responsibilities and obligations. In light of the major changes being introduced for the sector it is vital that all documents published by the Government are clearly understood. This drafting error will serve only to dent the confidence of landlords in the legislation. Whilst Ministers are understandably eager not to let these new measures drift, it would make more sense not to rush their implementation than face the potential legal difficulties that will now arise for landlords.”

Continue reading »

Right To Rent Immigration Checks Making PRS Landlords Over Cautious

Right To Rent Immigration Checks Making PRS Landlords Over Cautious

Lawful Tenants Refused Rental Properties
Because Of Right To Rent Immigration Checks

Right to Rent immigration checks could cause more UK private rented sector (PRS) landlords to refuse tenancy applications from lawful tenants because they are over cautious about letting to tenants with foreign accents and names or have unfamiliar identity documents.

According to the Residential Landlords Association, (RLA), the complexity of the Government’s plans to turn landlords into unpaid Border Agency staff could see lawful tenants being refused housing.

The warning comes as new research by the Joint Council for the Welfare of Immigrants (JCWI) indicates the difficulties caused by the Government’s Right to Rent scheme, originally piloted in the West Midlands, concluding that UK PRS landlords Right to Rent checks have resulted in discrimination against tenants who appear “foreign”.

The JCWI research discovered that:

  • 42% of landlords were less likely to consider tenant applications from someone who did not have a British passport,
  • 27% of landlords were reluctant to engage with tenancy applications from people with foreign accents or names

Under the new immigration bill, PRS landlords are set to be legally responsible for checking the immigration status of tenants. Following the pilot scheme in the West Midlands, the Government recently announced that the immigration checks by landlords would be expanded nationwide, with landlords facing up to five years in prison for failure to undertake the Right to Rent checks.

Residential Landlords Association policy director, David Smith, said: “Whilst the RLA opposes discrimination against tenants because of their race or nationality, the Government’s plans are causing confusion and anxiety for many landlords. If the Government expect landlords to act as border police it should provide the training and material needed to give them the confidence to carry out the checks required of them. In the absence of such support, today’s research sadly shows the inevitable consequences of the policy which the RLA has long voiced concerns about. Faced with considerable sanctions, landlords will inevitably play it safe where a tenant’s identity documents are either unclear or simply not known to them. It is concerning that the Government remains committed to rolling out the Right to Rent policy nationwide without first publishing its assessment of the impact it has had in its own pilot area. Ministers should halt plans to proceed with its rollout to allow time for proper scrutiny and consideration of the impact it is likely to have.”

The research by the Joint Council for the Welfare of Immigrants comes before the publication of the Home Office’s own assessment of the Right to Rent pilot scheme detailing its level of effectiveness.

There seems to be a huge communication breakdown somewhere, we as landlords are now unpaid members of the UK Border Agency, like it or not, we mustn’t discriminate against any tenant applicant because it is an “ism” and can be punished by imprisonment and a large fine, however, if we house someone in need, we leave ourselves open to prosecution and a large fine. If we act in a professional manner, we are accused of not caring, but if we have too much contact with tenants we are seen as overbearing and interfering. If we spend money on properties we are seen as rich money grabbers that are open to exploitation and if we don’t spend vast amounts to correct damage caused by tenant lifestyles as and when tenants demand then we are called tight and heartless. Homeless charities want the UK PRS closed down, the Government want as much of our profits as they can get their hands on and the media think we are all descendants of Rachman and Rigsby – How is the system supposed to work?

Shelter Target PRS Landlords Again!

Shelter Target PRS Landlords Again!

Shelter Attacks PRS Landlords With
More Bogus Propaganda

The homelessness charity, Shelter are once again targeting private rental sector landlords, with claims of abuse and neglect being aimed at the sector.

Shelter claim that that 125,000 tenants have suffered abusive behaviour from landlords in the past year and the health of 1 Million private rental sector tenants have been affected by rogue landlords not doing property repairs or dealing with poor conditions in their rented property, with almost 300,000 parents who rent reporting serious impacts on their children’s health caused by poor property management.

The charity maintain that damp, mould, and bad ventilation in private rented sector properties are causing asthma, allergies, breathing problems and worse among tenants, and they are laying the blame squarely on landlords shoulders.

Continue reading »

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).

Continue reading »

UK PRS Rents Highest In EuropePRS Rents Still Increasing

Rent paid by tenants in the UK’s private rental sector, (PRS), increased by 2.1% in the 12 months up to and including March 2015, according to the latest published figures released by the Office for National Statistics (ONS), drawing claims from the National Housing Federation (NHF), that the UK is the most expensive country to rent property in within the European union.

In the 12 months to March 2015 UK PRS rents increased by:

  • 2.1% in England
  • 2.1% in Scotland
  • 0.8% in Wales

UK PRS rents are the highest in Europe, taking up 40% of tenant income despite having the shortest length of secure tenancies. In comparison our European counterparts only pay an average of 28% of their income on rent.

The NHF analysed the ONS data and found that on average UK PRS rents of approximately £750 per month for properties were almost double the rental costs of dwellings in countries like Germany and Holland, where average earnings are similar. However, it is worse for tenants in shared UK properties, who typically spent around 55% of their income on rent.

Across Europe, 43% of tenants had moved property in the last five years while in the UK this figure was more like 77%.

When the figures are analysed more closely it works out that approximately 23 minutes of every hour worked by UK PRS tenants is spent on rent; elsewhere in Europe, it is more like only 17 minutes.

The NHF also showed that the UK has repeatedly failed to invest in its own housing stock when compared to European standards, between 1996 and 2011 only 3% of the national Gross Domestic Product (GDP) was invested in UK housing, compared to 6% in Germany and 5% in France.

Other findings from the analysis include the fact that 72% of tenants renting in the UK private rental sector are employed compared to 62% of residential owner-occupiers.

NHF chief executive David Orr commented on the findings, stating: “UK tenants get a raw deal in comparison to their continental counterparts. High rents are just one symptom of the UK’s housing crisis, as a nation, we are simply not building enough houses due to under investment and problems with the land market.”

Reena Shares How To Get Over £100k Profit From Property In Just 9 Months!

Reena Shares How To Get Over £100k Profit From Property In Just 9 Months!

Reena Shares How To Get Over £100k Profit From Property In Just 9 Months!

Our friend, Reena Malra, “The Queen of Lease Options” will be running a Free Live Online Interactive Training and Case Study session on How To Really Profit From Property this week on Wednesday 10th June @ 8pm.

After attending Reena’s last exceptionally informative online training session, I can tell you it really was really insightful to hear, not only from Reena, but also from one of her very successful lease option mentee’s on how they are making huge profits from property!

We have been into property for a number of years and we learned so much from Reena’s last session that it opened our eyes and a few doors and we have only utilised just a few of the tips we learned, so this session is very exciting for us, that’s why we are sharing this fantastic FREE opportunity with you!

Discover How YOU can get £118,920 (GBP) Profit from Property in just 9 months WITHOUT…

  • Help from the banks
  • Using any of your own money
  • Relevant experience!

Register Here For This Free, Live Interactive Training!

Here’s what you can look forward to learning on the night:

Continue reading »

Will The Housing Crisis Win The Election?

Will The Housing Crisis Win The Election?

The Politics Of Housing

It is still generally acknowledged by all political parties that there is a housing shortage in the UK, and each political party wants to offer the public alternative methods of tackling the problem in an attempt to win electoral favour.

Most political parties see the housing crisis in the UK as a possible election winning issue and each party’s election manifesto promises the general public many things, including further private rented sector (PRS) reforms and the introduction of additional legislation. There isn’t much offered by any political party for landlords, except for the promise to put an end to the private rental sector.

A recent survey by Ipsos MORI research published in January 2015 discovered a confusing conundrum, in that:

  • 75% of the public agree that there is a housing crisis in the UK
  • 48% of the public disagree there is a housing crisis in their locality

The publication of each political party’s election manifesto is intended to give the public a clearer indication of the housing priorities of the UK’s next parliament.

However, despite claims of a housing shortage nationally there are still some UK regions that have large proportions of derelict and abandoned properties, many still in a habitable condition.

Continue reading »

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?

Continue reading »

Referrals To The Property Ombudsman Increase

Referrals To The Property Ombudsman Increase

Huge Rise In Referrals To
The Property Ombudsman

There was a 42% increase in the number of referrals to The Property Ombudsman (TPO) last year, according to The Property Ombudsman’s Annual Report for 2014.

The latest publication of The Property Ombudsman’s annual report shows that six months after the introduction of new legislation, making it a legal requirement for UK letting agents and property managers to join one of the three government approved redress schemes, the number of letting agencies and property management companies signed up to the TPO scheme has reached 12,915, a new record level.

The 42% increase in registered property lettings and estate agent businesses brings the total number of UK estate agents and property lettings offices offering free, independent route to resolve property and tenancy disputes to 26,735.

Continue reading »

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!