Breaking: Five-year electrical checks to be compulsory for PRS landlords

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Landlords must have electrical installations in their rental homes checked every five years under new rules announced today. The new mandatory requirement for PRS landlords is one of a number of safety measures to be brought in by the Government, which has also launched a consultation into building regulations’ fire safety guidance. The Government has clarified the […]

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Prolonged heatwave puts properties at increased risk of subsidence

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Subsidence:

As Britain’s longest heatwave in five years continues, Hamilton Fraser, who provide specialist insurance services to the private rented sector, have issued a warning to landlords to ensure they have sufficient buildings insurance, as the shortage of rain puts properties at increased risk of subsidence. In extreme cases, such damage can result in houses being uninhabitable while repairs are being carried out.

Subsidence is the downward movement of the ground supporting the building. Typically, claims for subsidence increase over the warmer months as the lack of rain causes shrinkage of clay soils which expand and contract with changes in their moisture content. In 2017, 65% of subsidence claims to Hamilton Fraser were reported between May and October, despite having a wetter than average summer¹.

With June 2018 ranked within the top five driest on record in England and Wales (figures dating back to 1910²) and the hot weather looking set to continue into much of July and August, Hamilton Fraser is predicting a surge of claims over the next few months.

Modern properties are at less risk as they are normally built on deeper foundations, but Victorian and Edwardian homes, built on shallower foundations, are at greater risk. Trees near properties are often the cause of the worst problems as their roots absorb vast quantities of moisture, exasperating the shrinkage brought on by the dry weather.

Subsidence damage to buildings is most commonly identified by cracks in walls which are; visible from both inside and outside the property, tapered and extending below the damp proof course.

Eddie Hooker, CEO of Hamilton Fraser comments:

“Minor cracks often appear in properties for a number of reasons, and most of the time these are not related to subsidence and can be dealt with during routine maintenance. If your home is in a shrinkable clay area, cracks with widths up to 5mm can occur during unusually dry spells and can then be treated by redecoration when they have closed again after the normally wetter winter months. However, if the cracks do not close, or continue to open beyond widths of 5mm, it is likely there is a long-term problem and you should consult your insurance company immediately.�

¹ Met Office
² Met Office

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Solution for buying student property – Shares?

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We have just sold several buy to lets we have had for a long time. We are looking at re-investing with minimum hassle running of the investment

There are plenty of schemes around which get you to buy a student pod or a room in a hotel

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Scotland’s most ‘responsible’ student tenants

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Students aren’t always renowned for being the most house proud but, for the first time, it has been revealed which Scottish universities have the most responsible student tenants.

Research from SafeDeposits Scotland, the country’s leading tenancy deposit protection scheme

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She’s out – thank you readers for your support and advice

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She signed the Deed of Surrender at 8.30pm last night after demanding that I be there at 4pm yesterday having given me 4 days notice of vacating. Put out the flags.

Some of you may remember that my tenant owes £4k+ in arrears (housing benefit shortfall and a 6 month HB over-payment).

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Increasing concern about an exodus of buy-to-let landlords

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Buy-to-Let Exodus:

According to new research carried out by the Residential Landlords Association’s (RLA) research arm known as PEARL, the UK Private Rental Sector could soon see the loss of 133,000 homes, at a time when in many locations rental vacant accommodation is getting scarce.

Consequently, rental prices are set to rise, and according to another recent survey of The Royal Institution of Chartered Surveyors (RICS) members, letting and estate agents, rents could rise by 15pc over the next five years.

Landlords and their representative bodies are blaming this on the Government’s squeeze on landlords; tax changes, tightening of mortgage rules, and increasingly onerous regulations which are in combination forcing landlords to sell up, warn the surveyors.

RICS says letting agents are reporting a drop in rental properties coming onto the market for the 21st consecutive month, in July 2018. Surveyors think rents will rise gradually over the next 12 months, and keep on rising for at least another four years. The government’s crackdown on buy-to-let owners over the last few years means fewer homes will become available for renting out.

The RLA’s own survey, which takes in the views of 2600 landlords, shows that tenant demand is not slowing down. Around 84% of landlords reported that tenant demand is either increasing or remaining stable. But rising costs for landlords, making the ability to remain profitable after financing costs, are already forcing owners to sell up. On top of the forecast of 133,000 homes lost to the sector, the RLA recon that around 46,000 private rented homes have already gone.

David Smith, Policy Director for the RLA says:

“The demand for private rental homes shows no signs of slowing up, despite efforts to encourage home ownership. The Government was always mistaken to place homes to own and to rent in opposition to each other rather than seeking to supply more homes in all tenures�.

Dr Tom Simcock, Senior Researcher for the RLA, says:

“These changes make it easier for those who are wealthier and cash-rich to invest in the private rented sector, over those middle income earners that may look to purchase a property with finance while also limiting the access of the sector for the more vulnerable tenants and those who can’t afford to buy nor can’t access social housing�.

As if all this wasn’t enough, the government is currently holding a consultation on the possibility of introducing mandatory three-year tenancies. These would have a probationary period of 6 months when the tenancy could be ended by the landlord, but after that the tenant would have a legal right to stay for the remaining two and a half years, while retaining the right to leave at any time, most likely with one month’s notice.

To combat the exodus, the RLA has called for smart taxation policies that would encourage private landlords to provide long-term homes. It is lobbying the Government to end its tax on new homes, suggesting that the additional 3% levy should be waived where a landlord invests in rental property, adding to the overall rental housing supply.

Landlords should make their views known in this important 3-year Tenancy consultation, which ends 26^th August – see here

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