Tag Archives: finance-update
UK govt plans could prevent selective landlord licensing by councils
Councils in the UK could be prevented from introducing selective licensing for private sector landlords unless there are specific reasons for doing so. The Department of Local Government and Communities believes that for an area to be designated as subject to selective licensing it must contain a high proportion of properties in the private rented sector, in relation to the total housing accommodation in that area. It has announced proposals that would mean that if an area has one or more of four specific conditions, the authority may consider introducing licensing. These include hazards caused by poor housing conditions, an influx of migration and if the area is suffering from a high level of deprivation which affects a significant number of the occupiers of properties. In addition it can be granted if the area suffers from high levels of crime. If the local authority and the local police together say that licensing may contribute to controlling or reducing crime, a licensing system could be considered. The National Landlords Association (NLA) has welcomed the proposals at a time when there is unease about a number of councils introducing their own licensing schemes without providing evidence that they are needed. An example is Liverpool City council which requires landlords to pay upwards of £400, from next month for a five year licence. Applicants will be checked to see if they are ‘a fit and proper person’ to be a landlord. Landlords will also have to meet health and safety guidelines and be seen to be keeping the exterior in a good state of repair and dealing with complaints about anti-social behaviour caused by tenants. Those without a licence could be fined up to £5,000 and see their properties taken over by the council until an alternative licensed landlord is found. But the NLA believes this is heavy handed. ‘The change in the legislation is welcome as it stops local councils introducing unnecessary borough wide licensing schemes, without an evidence base,’ said NLA chief executive officer Richard Lambert. ‘Instead it pushes councils towards resolving specific issues in targeted local areas by outlining the key criteria by which schemes should be implemented and judged. We hope to see this progress before the dissolution of parliament later this month,’ he added. The borough of Redbridge in London has issued proposals to introduce a £500 five year licence for private landlords. It says it will improve the standard of living by providing tenants with the same living conditions as other households and help to maintain a landlord’s register, making it easier to notify landlords and letting agents of their responsibilities, improve their reputation, provide support, reduce anti-social behaviour and fly tipping, and build an area that would be safer and more appealing to live in. In Hastings landlords are challenging plans by the council to introduce a £400 licence and say that there is little evidence that such a scheme is needed. Last December a landlord in Enfield successfully challenged the local… Continue reading
Rents in Scotland up 1.3% in last 12 months, latest index shows
Residential rents in Scotland have increased by 1.3% in the last 12 months, just half the pace of rent growth in England and Wales, according to the latest sector index. It means that average rents stand at £536 per month following a 0.1% fall in January however rents in the east of Scotland reached a new record high in January after increasing 3.2% year on year. The Scotland Buy to Let Index from Your Move, one of Scotland’s largest lettings agent networks, also shows that despite a slight monthly improvement, tenant financed are worse than a year ago with 7.1% late paying their rent. The average monthly rent in Scotland is now 5.3% higher than at the time of the previous elections to the Scottish Parliament in May 2011. By contrast, the average residential rent across England and Wales has climbed 9.6% since May 2011, according to the index. Also, rents in England and Wales have risen 2.8% year on year. Scottish tenants are having a much smoother ride than their counterparts south of the border, with rental prices in Scotland climbing at a considerably slower pace, according to Brian Moran, area lettings director at Your Move. ‘Despite snowballing demand for homes to let, the private rented sector has managed to shelter tenants from the worst extremes of rent inflation, and rents have navigated an affordable route broadly trailing inflation,’ he said. But he pointed out that the overall story since the previous election papers over the different chapters we’ve experienced within this parliament. Scottish rents were largely on pause throughout 2011 and 2012, and it was the abolition of tenancy fees in November 2012 which jolted to life a sudden uptick in rents, as costs were recouped other ways. He believes that the majority of the rent growth falls in the last two years, and the tempo is just easing back into a more organic swing. ‘Housing is a policy area that impacts every one of us, and ahead of the general election tenants will have their ears on the ground to listen out for any rumbles of further changes to lettings legislation that might impact the sector. Investment in homes to let needs to keep pace with demand, and landlord confidence is an essential ointment to soothe the pains of the current housing shortage, and make rent rises an easier pill to swallow for tenants,’ added Moran. The index also shows that in the past year, rents have risen in three out of five regions of Scotland. Rents in Edinburgh and the Lothians have increased nearly three times as fast as across the rest of the country, jumping 3.8% in the 12 months to January 2015, compared to a 1.3% annual rise for all of Scotland. The East of Scotland has seen the second strongest annual rent growth, with a 3.2% year on year increase and in Glasgow and Clyde there was a 1.3% annual rise in average rents. In two regions, average… Continue reading
Warning over use of photos in tenancy disputes
The use of technology in inventories appears to save time and money, but UK lettings agents and landlords are being warned that in reality it is not full proof. Often technology does not allow for the inclusion of sufficient detail to provide indisputable evidence of the original condition at the start of a tenancy, according to research by My Property Inventories. The perception of inventories by some lettings agents is that inventories can be very long, time consuming and somewhat of a laborious process. As a result, several landlords and management companies opt for the use of technology in inventories believing it will save them time and money. The use of technology in inventories claims to help landlords and management companies to complete inventories in a matter of minutes, with the ability to add large quantities of photographs, which can provide evidence in tenancy, dispute claims. But according to Danny Zane, director of My Property Inventories, in many tenancy dispute cases, the adjudicators are likely to reject some technology based inventories, as they cannot deliver the level of detail required which means that the landlord can lose hundreds of pounds in lost cases. ‘Many landlords and agents are using digital evidence to replace essential written descriptions in inventories, at check-in and check-out, leaving landlords exposed to potentially costly disputes over damage and other issues. The law clearly states that the deposit remains the tenant’s money and that they are entitled to get it back at the end of their stay, provided they have met the terms of the tenancy agreement, so the onus lies with the agent or landlord to provide proof of any proposed deductions,’ he said. ‘Without an accurate and properly detailed inventory, a landlord has no evidence to prove that the property has been damaged in any way during the tenancy and therefore will find it almost impossible to withhold any deposit money from the tenants. A glossy inventory that relies heavily on photographs will be of little use in a dispute. In fact, there is no point in producing a picture book for an inventory, with very little proper description and hundreds of photographs. Inventories like these just do not provide enough detail,’ he explained. ‘Photography and video are great for large areas of damage such as carpet burns, serious damage to worktops and interior décor etc. However, they are not so good for showing really fine detail of the sort of problems that occur most frequently on a check-out, such as small chips and scratches in sinks and baths, knife marks on worktops, scratches to halogen hobs. All of which will cause financial loss to the landlord if negligence can’t be proved,’ he added. The firm points out that inventory reports should contain a full description of a property and its contents, with detail on… Continue reading
