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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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More Severe Weather Warnings For UK Property Owners

More Severe Weather Warnings For UK Property Owners

Landlords Urged To Ensure Insurance Is Up To Date Before Severe Weather Hits Again

There was more bad news for property owners and landlords this week as the UK Meteorological Office (Met Office) has issued further severe weather warnings for the week ahead, bringing more misery for landlords and property owners in the South of England already seriously affected by flooding.

Met office staff have predicted a “Valentine’s Day Massacre” as the UK prepares to be battered by 80mph winds and more torrential rain on Friday 14th February, however there will be much more rain before then, with a slightly weaker weather front expected earlier in the week (Tuesday 11th – Wednesday 12th February).

Government departments, local authorities and agencies are working together to do everything they can to help communities at risk, but landlords are urged to check that they are adequately covered by specialist landlord insurance policies.

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Help-To-Buy scheme Is The Deal Of The Century For The Government Government Say Help-To-Buy Scheme Is Creating

 75 New Homeowners A Day

The Prime Minister, David Cameron has been defending the controversial Help-To-Buy scheme, stating publicly that the scheme is creating up to 75 new homeowners a day.

Over 2,000 first-time buyers have made offers on properties using the scheme and the Prime Minister is rubbing his hands with glee because there is a dark secret behind the incentive.

More than £369 Million (GBP) has been lent to new home owners, making the loan figures average £155,000 (GBP) per person. Wages will likely rise with inflation and so will mortgage rates, doing little for the financial security of working homeowners who will be trying hard to pay off the percentage stake in their property that is owed to the Government.

Mr Cameron insisted that the state-backed loans are helping hard working responsible people purchase residential property to live in, and he also dismissed fears over a new housing bubble and taxpayers helping the wealthy middle-classes as nonsense.

What he did not say was what the prospects are likely to be, for people buying property now using the Help-To-Buy scheme, in a few years time.

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Government Set To Backtrack On Landlords Conducting Immigration Checks

Government Set To Backtrack On Landlords Conducting Immigration Checks

Bill forcing landlords to check Immigration status of tenants
will be watered down

As previously reported on Spotlight the Government proposals for landlords to check the immigration status of all tenants, has already caused a great deal of outrage from all sectors.

http://mypropertypowerteam.com/landlords-expected-to-do-uk-border-agencys-job-for-them/
http://mypropertypowerteam.com/even-mps-think-landlord-immigration-checks-are-unworkable/

Government ministers look likely to perform the expected U-turn and backtrack on the proposal that would require landlords to verify the immigration status of their tenants.

Prime Minister, David Cameron is reported to have been livid when he was told that the proposed new legislation would have to be watered down.

According to a report in the Daily Telegraph, the legislation that is set to become part of a the new Immigration Bill, will not be rolled out nationally, instead, only landlords in certain parts of the UK will be forced to carry out immigration checks and the newspaper named some boroughs in West London would where landlords would be at the forefront of policing the immigration requirements.

Communities and Local Government (CLG) secretary, Eric Pickles, is reported to think that a mandatory requirement for all UK landlords would involve a great deal of additional red tape, and the resulting extra costs would end up being paid for by tenants.

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UK PRS Landlords still avoiding housing benefit tenants

1/3 of Private Rental Sector Landlords Avoiding Tenants Claiming Benefits

A new Government report has revealed a growing concern about UK landlords, as an increasing percentage are now refusing to accept applications from tenants claiming housing benefits.

The situation regarding LHA tenants is set to get much worse, following the recent statements made by UK Prime Minister David Cameron and his party’s vision for further welfare reform. Read full story

The Government commissioned report was compiled by the Centre for Regional Economic and Social Research at Sheffield Hallam University revealed that over one third of the 1867 landlords who agreed to take part, are already actively refraining from accepting LHA tenants or are considering avoiding benefit tenants in the future.

This change in UK landlord’s perspectives has developed since the government capped housing benefit payments in April 2011, meaning that many LHA claimants are no longer able to claim the entire rental amount from the local authority.

33% of the UK landlords surveyed admitted having severe reservations concerning the reliability of payments from LHA tenants, and as a result they were either planning to or considering no longer accepting benefit claimants as tenants.

29% of landlords had already gone through the process of tenant eviction with LHA tenants or had refused to renew the tenancies of benefit claimants when they came to an end.

36% also admitted that they were experiencing increased rental arrears from LHA tenants because of the changes to benefit payment levels made last year.

Landlords can safely and legally recover rent arrears/debts from all types of tenants, including absconded tenants by using Legal 4 Landlords professional services

Welfare Reform Minister, Lord Freud, didn’t see the results of the Government commissioned report as worrying, stating that: “The research gives us an early insight into what is really happening, and it shows that the many scare stories about the effects of housing benefit reform are simply not materialising.”

If that were true, why are an increasing number of UK landlords wrongly avoiding accepting LHA tenants?
Don’t miss out on the opportunity to get regualr direct payments from any Local authority – Get “The Landlords Essential LHA Handbook” by John Paul – The LHA Expert

Despite the exorbitant claims about lower LHA rents and the acceptance of them by private rented sector, (PRS), landlords made by the coalition government Prime Minister David Cameron in Parliament on January 11th. Only a handful of landlords with tenants on Local Housing Allowance are actually accepting lower rents in exchange for getting rent paid to them directly.

The claim by the Prime Minister David Cameron that private rents are falling as a result of welfare reforms was wrong!

Mr Cameron had claimed in Parliament on January 11th 2012 that: “rent levels have come down, so we have stopped ripping off the taxpayer”. Apparently he was quoting rental data from LSL Property Services, which had only been quoting falling private sector rents.

The data published by LSL Property Services does not take into account LHA rents.

In an attempt to get landlords to lower rents, councils have temporary powers to pay landlords, rather than tenants, the LHA in exchange for lowered rents.

A later statement from 10 Downing St said: “Private landlords were reducing rents – lessening the impact of benefit cuts – in return for local housing allowance being paid directly to them.

The prime minister made his wildly inaccurate claim in the middle of the Welfare Reform Bill’s rough ride through the House of Lords at a time when his government was desperately seeking to convince peers that the package of reforms would not increase homelessness as tenants would be left struggling to meet their rents under the new benefit caps.

Mr Cameron’s claims that private rents are falling as a result of the governments welfare reforms were difficult to swallow for a number of property professionals, prompting one magazine to take action.

The same data was quoted again on 30th January 2012 by Housing minister Grant Shapps, who seized on the same survey by estate agency LSL Property Services, citing it as the evidence Mr Cameron had used to support his claims.

The survey did indeed show rents fell by 0.8% in December – the second successive monthly fall.

However, if the data is examined correctly, the figures reveal the seasonal drop in private sector rents before Christmas was actually less than the 2.3% drop in December 2010 and rents overall had actually risen 4% year-on-year.

The magazine Inside Housing, used the Freedom of Information Act to request information on LHA rents from the Department of Work and Pensions (DWP), and every local authority in England following Mr Cameron’s claim in the House of Commons.

204 local authorities responded, with only 36 reporting any rent reductions in return for direct payment of LHA. Of the 36, 12 reported a combined total of 65 landlords cutting rents, an average of fewer than six landlords in each area.

The DWP says it has ‘no data records’ of how many landlords have reduced rents, but it has collected ‘anecdotal evidence’ from around 80 councils.

It states: ‘The majority have reported that they have used the new safeguard to help claimants negotiate down rents and all plan to use it during 2012 as transitional (payment) protection runs out.

The Inside Housing survey suggests that most PRS landlords are not even remotely tempted to accept lower rental payments for their properties, either directly from local authorities or not.

The National Landlords Association (NLA) and the Residential Landlords Association (RLA) have each disputed the claim rents are falling and believe landlords are more likely to reduce the number of tenancies let to benefit recipients, warning that landlords would rather re-let their properties at the full market price to working tenants, and are able to do so in the current climate of high rental demand.

Labour’s shadow housing minister, Jack Dromey, has already written to number 10 about the issue but received no response and will raise the matter in parliament demanding that Mr Cameron corrects his statement or justifies it.

Mr Dromey said: “Now we know the truth. The nationwide Inside Housing story exposes the reality of rising rents in most areas of the country and explodes the myth that rents are falling”.

 

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