Currently viewing the tag: "sector"
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 »

RLA Hit Back At Rent Control Calls

RLA Hit Back At Rent Control Calls

Rent Controls Are Not The Answer
To The UK Housing Shortage

The Residential Landlords Association (RLA) have hit back at politicians and housing and homeless pressure groups who are openly calling for rent controls in the UK’s private sector by claiming that private sector rents are falling in real terms following analysis of the official English Housing Survey (EHS).

The English Housing Survey (EHS) results are taken from a continuous survey conducted by the Department of Communities and Local Government (CLG) and show that average private sector rents increased by just £10 from £153 to £163 (GBP) per week in 2014, representing a rise of 6.5%.

In contrast, average weekly rents in the UK’s social sector increased by more, with weekly rental prices increasing 25.4%, rising by £18 from £71 to £89 (GBP).

Continue reading »

ARLA Calls For Rental Regulation In England

ARLA Calls For Rental Regulation In England

Government Urged To Rethink PRS Regulation

The Association of Residential Letting Agents (ARLA) wants the Government to bring England in line with the rest of the UK by calling for greater regulation of the private rental sector to better protect tenants.

ARLA argues that tenants in England could soon be less well protected than their Scottish and Welsh counterparts, due to the delay by the Government to introduce laws allowing for better regulation of the lettings industry.

According to data released by ARLA, 36% of all households in England are in private sector rented accommodation and the lack of regulation of the Private Rental Sector (PRS) is fast becoming an issue that affects more of the population than ever before.

The Scottish government reviewed its strategy for the PRS on the 30th May, while the Welsh government is set to introduce a Housing Bill legislating for a compulsory licensing scheme for all letting agents in Wales, as well as a code of practice, before the end of the 2012/13 Assembly term.

The announcements by Scottish and Welsh parliaments are in stark contrast with the current UK Government’s stance of opposition to regulation of the Private Rental Sector because of an apparent fear that landlords will become bogged down and put off by having to wade through a mountain of red tape.

On the surface this seems incredibly thoughtful of the Government, however, it is not to be forgotten that they also intend for all landlords to become unpaid agents for the UK Border Agency policing the immigration status of all tenants. No matter how watered down that proposal becomes the intent of those in power was made clear – to tap into powerful resources to save themselves money. It does make you wonder if the reluctance for regulation is simply because the Government can’t find a way to financially benefit from introducing new regulatory legislation at this current time.

Continue reading »

Mortgage fraud is estimated to cost the UK economy £1 Billion (GBP) every year, according to the National Fraud Authority (NFA).

MyPropertyPowerTeam.com takes a look at the steps some bridging lenders are taking to mitigate fraud and how they vet the solicitors and valuers that they work with.

It is important to ensure that all mortgage lenders’ procedures and vetting measures are consistently in check, particularly for those lenders who outsource their professional services regularly.

In light of the increasing number of products and services being offered by lenders entering the short-term lending sector, the FSA are keeping a close eye on any poor practices.

But, are the systems and controls in place to detect and prevent mortgage fraud robust enough in the industry?

Banks and mortgage lenders are being extremely vigilant when looking at how vulnerable their own systems and controls could potentially be and in what places they can be improved.

The FSA are also keen to crack down on poor practices and in December 2011, they published a guide, entitled Financial Crime: A Guide For Firms.

This document provides guidance to firms on steps they can take to reduce their financial crime risk and is designed to help firms adopt a more effective, risk-based and outcome-focused approach to mitigating any financial crime risk, which includes examples of good and poor practice.

Many Bridging lenders have made substantial investments in ensuring that they mitigate fraud and are using both automated systems and human intervention to detect fraud.

Good bridging companies choose solicitors that they deal with very carefully and will have carried out due diligence to mitigate the risk of solicitor fraud. 

New systems actively search and cross reference data from all lender members and multiple government agencies for any indications of fraud including identifying and investigating potential fraud as well as money laundering and the identification of Politically Exposed People (PEP).

Want to avoid Mortgage Fraud?  Find a reputable mortgage broker here

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

UK Prime Minister David Cameron has a new vision of the welfare state. He wants state benefits to be a safety net – and nothing more!,

The Prime Minister outlined future radical changes which on top of existing plans, could save the UK an extra £10 Billion (GBP) by 2016.

Government ministers expect this “next wave” of benefit cuts to include the axing of all housing benefit currently paid to around 380,000 people aged under 25.

Such a move would force many young adults to move back in with their parents rather than living independently.

Another controversial reform which could come in further down the line is setting benefit payments regionally – which would mean less money going to claimants who live in less-expensive parts of the country.

Some Tory MPs say the current system is unfair – with differing “incentives” on people to seek work depending on where they live. Liberal Democrats, however, would be likely to oppose any such changes.

The Prime Minister said his overall aim in reforming welfare was to stop people “languishing on the dole and dependency”.

Here are some of the welfare reforms Mr Cameron is considering

• Stopping most under-25s claiming housing benefit. Cameron said the government was spending almost £2bn a year on housing benefit for this group, and that 210,000 people aged 16 to 24 were social housing tenants. Many of them could live with their parents, he suggested.

• Scrapping the non-dependent deduction. Cameron said people could lose up to £74 a week in housing benefit if they have an adult child living with them. That “doesn’t seem right”, he said.

• Cutting benefits for the under-21s. Cameron said that in Holland the benefit system does not normally help the under-21s. When it does, benefits are set at a low level, and parents are expected to top them up.

• Ending subsidised social housing for the wealthy. Cameron said that between 12,000 and 34,000 families on more than £60,000 a year, and between 1,000 and 6,000 families on more than £100,000 a year, were living in council homes. “When you have people on £70,000 a year living for £90 or so a week in London’s most expensive postcodes you have to ask whether this is the best use of public resources,” he said.

• Uprating benefits in line with wage inflation instead of price inflation when price inflation is much higher. Cameron said in September benefits went up by 5.2% (inflation) even though workers were getting much lower pay rises. “Given that so many working people are struggling to make ends meet we have to ask whether this is the right approach,” Cameron said.

• Cutting benefits for the long-term unemployed. Cameron said that when the Americans decided to time-limit benefits in the 1990s, case-loads fell by more than 50%. “Instead of US-style time-limits – which remove entitlements altogether – we could perhaps revise the levels of benefits people receive if they are out of work for literally years on end,” he said.

• Cutting housing benefit further.
The government has already introduced a benefit cap to stop a relatively small number of families claiming exorbitant sums in housing benefit. But Cameron said this would still allow people to receive up to £20,000 a year in housing benefit. “Surely we should ask if it’s fair that the maximum amount that you can get on housing benefit is set at a level that only the top five per cent of earners would otherwise be able to afford,” he said.

• Stopping people from claiming child-related benefits if they have more than a certain number of children. Cameron did not say how many children, but he quoted the number of people on income support with three or more children (150,000) and four or more children (57,000), implying benefits could be capped at two children.

• Requiring people on out-of-work benefits to gain basic literacy and numeracy skills.

• Requiring people on out-of-work benefits to prepare a CV.

• Requiring able people on out-of-work benefits to do full-time community work after a certain period. In Australia this was standard after just six months, Cameron said.

• Requiring people on sickness benefits to improve their health. “Today if someone is signed off work with a bad back there’s no requirement to take steps to get well to keep on receiving that benefit – even if they could be getting free physiotherapy to get back to health and start working again,” Cameron said.

• Requiring more single parents to work – or at least to prepare for work. Cameron said the government was already forcing single parents to look for work when their youngest child reaches five, not seven as before. But, with free nursery care available from the age of three, there was a case for changing the rules again, he said. “Even if there’s no scope for actually working, there should at least be for preparing to work: getting down to the job centre; writing a CV; learning new skills.”

• Imposing tougher restrictions on people claiming benefits if they have never worked than if they have paid tax and national insurance for years before submitting a claim.

• Stopping teenagers from claiming benefits as soon as they leave school. Cameron said he wanted to ask “if it’s right that people continue to have the option of leaving school and going straight onto benefits, without ever having contributed to the system in any way.”

• Stopping paying winter fuel payments and other non-contributory benefits to people who live abroad.

• Stopping paying some benefits in cash and paying them instead in benefits in kind, like free school meals.

Private Rental Sector (PRS) Tenants are finding Buy To Let rents are unaffordable as many are handing over more than half of their take home pay to keep a roof over their heads according to the property website – Rightmove.

The average pay to rent ratio across the UK is 38% – but up to a 1 million of the country’s 3.4 million Private Rented Sector tenants are paying much more, say the online property portal.

Tenants paying out the most rent from their pay packets:

  • South East – 41%
  • London – 40%

Paying the least rent from gross wages:

  • Scotland – 35%
  • North East – 36%

Some tenants pay even more – with 16% in London and 19% in the South East forking out 60% of their net income.

Despite demand far outpacing the number of properties available to rent, Rightmove Director, Miles Shipside reckons tenants cannot afford to pay any more.

Searches for buy to let properties have soared by 43% in the past 12 months, while the number of properties to rent has only nudged up by 3% according to Rightmove’s latest quarterly consumer confidence report.

61% of tenants and 47% of landlords predict higher rents in the next 12 months, but 43% of landlords expect rents to hold steady.

Mr Shipside said: “While the rental bubble is unlikely to deflate as there is no readily acceptable alternative to the rented roof, it does appear to be approaching a limit in some areas. Agents report that the seemingly incessant demand is causing rental price pressure to spill over into other previously less sought-after areas and some tenants are attempting to negotiate lower rent. This is a clear sign that rents may be hitting an affordability ceiling in some locations. It is an early warning of some overheating and, as well as raising demand in cheaper locations, it will force some to find alternatives such as stay with parents or squeeze more people into smaller spaces.”

Eviction numbers increase as tenants struggle with finances

Evictions for Rent Arrears Increase by 10.2% This Year

County court closures are being blamed for prolonging tenant rent arrears eviction hearings

The number of tenants in severe financial difficulty has climbed by 10.2% in the first quarter of this year according to the latest tenant arrears tracker by Templeton LPA, part of the LSL Property Services plc Group.

Almost 8,800 more tenants were over 8 weeks in arrears and facing the threat of eviction than there were in the last quarter of 2011.

In the first quarter of 2012, an average of 94,400 tenants in England and Wales were in severe arrears, an increase of 20% compared to the same period in 2011.

The figures were affirmed by specialist landlord service provider, Legal 4 Landlords, who handle an average of 20 tenant evictions per day across the UK.

Legal 4 Landlords spokesman Sim Sekhon said: “At the current rate of growth, the number of PRS tenants facing arrears greater than 8 weeks will climb above 100,000 in the next quarter. Tenants have been facing increasing financial pressures due to the state of the economy and the rising cost of living and unfortunately landlords without rent guarantee insurance have been suffering the most”.

Although severe rent arrears cases have continued to increase, PRS tenancies in severe arrears only represented 2.4% of all properties in the private rental sector (PRS) in England and Wales in the first quarter of 2012.

Overall tenant arrears have improved, with 9.3% of all rent either late or unpaid by February 28th, a decrease from 10.7% at the end of 2011.

Paul Jardine, director and receiver at Templeton LPA, said: “While the general tenant population has absorbed the rising cost of renting in the last two years, a minority of tenants are facing severe financial difficulties, a minority that is growing. These tenants have been pushed into deeper and deeper arrears by a combination of rising living costs, high rents and a weak labour market, and are now months behind with the rent cheque. In turn, these severe rental arrears figures have been inflated by the ongoing impact of county court closures. The closures have prolonged arrears cases, with landlords less able to gain court dates to quickly remove non-paying tenants. This is creating a backlog of tenants in extreme arrears, increasing the amount of rental income lost for landlords or their appointed receivers of rent. Despite the recent surge in severe arrears cases, overall tenant arrears have performed remarkably well given the challenging economic environment. In fact, as we often see at this point in the year, more financially robust households are now paying down post-Christmas debt and putting their finances in order, which is helping to reduce the overall level of tenant arrears.”

The annual growth in tenant arrears has been matched by a yearly rise in the number of tenants being evicted by court orders.
In the last quarter of 2011 some 24,702 tenants faced eviction notices, an increase of 9% on the 22,634 in the last quarter of 2010, although the figures reported are 4% lower than they were in the third quarter of 2011.

New data released by LSL property services has shown that in February, working tenants in the UK Private Rented Sector were paying 0.6% less in rental asking prices than they were in January.

Rents for working tenants have been falling slightly since November 2011, after rising steadily for the preceding nine months of the year.

According to LSL, the average private sector rent for working tenants in England and Wales is now around £707 per calendar month.

Tenants in employment are paying on average £24 a month more now compared to the same period last year, that’s an increase of 3.5%.However, residential property rents in London continue to outpace the rest of the UK, with rental values up 5.6% on March 2011 prices.

Tagged with:
 
Shelter want to see an end to the bad practices of rogue landlords

RLA say bad landlords are not "Rogues" they are "Criminals!"

The UK’s largest homeless charity Shelter and the Residential Landlords Association (RLA) have clashed over the issue of bad landlords.

Both organisations have been using very strong words over the last few days, whilst calling for more action by the UK government to stamp out bad landlords.

Shelter is calling on the UK coalition Government to hold a “Rogue’ Landlord” summit, but the wording has angered the Residential Landlords Association.

In particular, the RLA are incensed by Shelter’s use of the word ‘Rogue’, saying it belittles what is really ‘criminal’ activity. The RLA have also accused Shelter of using emotional clichés in their action plan, which could rebound and spell danger for tenants.

The heated exchange began after the homeless charity posted a question on its website asking if the Housing Minister, Grant Shapps, is doing enough to evict rogue landlords?

Shelter also launched a ‘5 point’ action plan on its website, saying that the housing minister should stop talking about stamping out rogue landlords and start taking action.

Shelter says its 5 point plan is based on 86,000 complaints by tenants about landlords.

Below are the bullet points Shelter would like to see, with The RLA’s response below:

Tougher sentencing for criminal landlords: increasing the maximum penalty for ignoring a court order to improve conditions from £5,000 to £20,000.
The RLA prefers the word criminal to rogue which has Del-Boy overtones of sympathy. Penalties need to be proportionate to the crime but without better prosecution they are just window-dressing.
The RLA calls for better training and resourcing of enforcement officials in council housing department without charging the good landlords through spurious regulation.

A rogue landlord prosecution fund: earmarking money to help councils get tough on landlords blighting their area
The RLA says, throwing more money at the problem does not produce solutions. It is about priorities. The cost of successful cases can be recovered.

New protection for brave tenants: safeguard tenants from being evicted in retaliation for whistleblowing.
Shelter must not weaken landlords’ rights to evict non-paying or anti-social tenants. Speedy resolution of tenant problems is in everyone’s interests but neither Court procedures nor Council departments work in their favour. RLA says there is scope for fast track procedures such as Alternative Dispute Resolution as used in tenancy deposit schemes.

An online landlord conviction database: a new website listing all convicted landlords to help tenants avoid criminal landlords.
RLA says this is playing to the gallery with all the risks of “Trip Advisor” sites. There is need for tenants to be aware of poor quality property which can often be detected on inspection of the property before signing a tenancy agreement and to examine appropriate certificates for gas and electrical safety and energy performance.
Better landlords are members of associations and local accreditation schemes which set property and management standards. Some councils and university schemes include property inspections. Tenants have little knowledge of their responsibilities for example to reduce humidity and stop condensation.

A rogue landlord summit convened by the Housing Minister to create a clear action plan to protect tenants.
The RLA says landlords must also retain rights to defend themselves from tenants from hell – including cases of malicious damage, false allegations and anti-social behaviour.
But action to protect tenants must be proportionate to the problem. The vast majority of good landlords must be protected from the hassle-factor just to provide statistics which look as though action is being taken. More than 70 laws and regulations exist to control the PRS – they must be used better to protect tenants and good landlords from the criminal minority.

In a statement, the RLA said: “The problem is that local authorities have failed to focus on tracking down bad landlords because of seeking to meet central Government targets to license landlords. With limited resources, they put their effort into the easy-to-check landlords who are the most visible and compliant and do not concentrate instead on those who deliberately seek to evade inspection. That’s why councils brought only 270 prosecutions of landlords last year.”

Instead, the RLA said they would welcome dialogue to produce solutions but condemn spurious regulation that would hurt good landlords but not criminal ones. The idea of a rogue landlord prosecution fund would merely throw money at the problem without producing solutions. In cases where landlords are prosecuted the costs can be recovered.

While supporting safeguards for tenants against retaliatory evictions, the RLA said Shelter must not weaken the landlords’ right to evict non-paying or anti-social tenants. The speedy resolution of tenant problems is in everyone’s interests but neither Court procedures nor Council departments work in their favour. The RLA says there is scope for fast track procedures such as Alternative Dispute Resolution as used in tenancy deposit schemes.

The RLA are calling for constructive dialogue to produce solutions including:

1. A culture change in Town Halls to work with the Private Rented Sector, (PRS), as a responsible supplier of housing. The PRS provides housing for tenants evicted by social housing, yet gets little or no support when problems arise.
2. Wider use of landlord accreditation schemes to promote self-regulation allowing councils to focus on criminal landlords.
3. Fast-track dispute resolution – 135,000 re-possession cases come to the courts a year. The average time for repossession is over 4 months after the tenant has not paid rent for two months.
4. Fair-play for landlords: direct payment of Local Housing Allowance (LHA) through tenant choice. Over 7% of LHA rents (90,000 tenancies ) are not received by landlords within 8 weeks.

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!