Guest blog – Ome’s 2021 predictions for the rental market

admin    Uncategorized     agents

Ome is part of the Hamilton Fraser family, a Deposit Replacement Scheme re-imagining renting through pioneering transparency and choice.

Ome allows renters to reduce the upfront costs associated with renting by replacing traditional deposits with small non-refundable monthly payments.

Established in early 2020, Ome has some predictions for the rental market in 2021…

For more information visit omehq.com.

Ome’s 2021 rental predictions

As 2021 begins, the coronavirus pandemic continues to dominate public consciousness, having a lasting impact on jobs, wages, education, legislation, and health.

And it seems inevitable that this ongoing crisis will impact rental trends this year too.

At Ome, we have four major predictions for the upcoming year:

1. Renters will choose suburbs over cities
2. There will be an increased need for financial flexibility
3. There will be a tenancy boom in early 2021
4. More people will opt for deposit replacement schemes

Suburbs over cities

As people continue to work from home where possible, in accordance with government guidance, we predict that suburban properties will remain more attractive than city dwellings. This is due to the space and value for money they offer.

This prediction is supported by data from Rightmove, which reported that enquiries from city residents for village locations increased 126 percent in June and July 2020 compared to the same period last year. They refer to ‘the shift in more buyers looking to move outside big cities’ which began in April and is continuing.

SpareRoom.com compiled similar research and LandlordZONE reported that 27 percent of renters in London are waiting to move once restrictions lift; with half of them expecting to leave the capital.

In addition, according to a recent survey of over 1,700 renters by letting agent Benham and Reeves, fast broadband was the number one feature renters looked for in a rented property, overtaking access to good transport links which had topped a previous poll. Perhaps this demonstrates that as long as suburban houses have strong internet for home working, there is little need to be near big cities in order to work.

Need for financial flexibility

The devastating impact of the current pandemic has resulted in the UK’s unemployment rate being the highest it has been in three years.

According to the ONS the unemployment rate for those aged 16 and over stood at 4.8 percent from July to September 2020 and of those out of work around 60 percent are young people. SpareRoom reported that almost a quarter of 23-29-year olds left their rented accommodation during the pandemic to save money.

In addition, analysis of the private rental sector conducted by the London School of Economics suggests that there could be three times the current number of private tenants in rent arrears in England in the next 12 months.

However, perhaps one of the benefits of the financial uncertainty caused by the pandemic is that people will become more financially aware.

Therefore, our prediction is that those who choose to remain in their rented accommodation will look for more flexible and affordable options to help them manage their finances.

For advice on managing your properties as a landlord during the financial uncertainly caused by the pandemic, check out the Hamilton Fraser guide What should I do if my tenants can’t pay rent?

Early 2021 tenancy boom

In November, LandlordZONE reported  that the rental market had bounced back in May after the lockdown during March and April 2020.

Our analysis revealed that although market activity slumped by 31 percent during March to May, new tenancies increased by 22 percent year on year, from the beginning of June to end of August.

Using this data, we predicted that the second national lockdown in November will also be followed by a boom in tenancies. This prediction remains likely to materialise as the third national lockdown, which was announced by the Prime Minister on 4 January 2021, will see the housing market remain open.

This third national lockdown (like the previous one) has not caused a total shutdown of the market but renters are still encouraged to view properties online, which could cause them to wait until later in the new year. However, it is impossible to foresee exactly what will happen due to the disruption caused by constantly changing restrictions and continued public health crisis.

Increased use of deposit replacement schemes

Deposit replacements offer an alternative to traditional upfront cash deposits that are taken at the start of a tenancy.

This new model has grown in popularity over the last few years to support renters’ desire for choice and flexibility with their cash flow.

We predict that, due to cash flow issues exacerbated by the pandemic, more renters will utilise deposit replacement options which reduce the upfront costs associated with moving; instead, relying on small non-refundable monthly payments.

Deposit replacement schemes also remove the ‘double bubble’ issue whereby renters are usually asked to pay for a new deposit before receiving the funds back from their previous deposit.

For more information about the pros and cons of different types of deposit replacement schemes, check out the blog by the Property Redress Scheme, ‘What are the risks of ‘do-it-yourself’ deposit replacement schemes?’

It is impossible to predict exactly what next year will bring, especially after the disruption and difficulties wrought by coronavirus. But, as the light at the end of the tunnel appears through vaccine development and roll out, it is possible to look towards the end of the COVID-19 crisis.

For a more in depth look at what is in store for the rental market in 2021 check out the full Ome blog here: https://www.omehq.com/2021-rental-market-predictions/

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Guest blog – Ome’s 2021 predictions for the rental market | LandlordZONE.

View Full Article: Guest blog – Ome’s 2021 predictions for the rental market

First hefty fine of the New Year slapped on HMO landlord in Reading

admin    Uncategorized     agents

It’s only 13 days into the New Year but Reading Council has already secured a heavy fine for a local landlord, who must now pay £66,000 after flouting HMO rules.

Mohammed Naseer Zamir, 41, had claimed that his property in Short Street consisted of two self-contained flats, each one occupied by a single household, when in fact it was an HMO.

During several visits, the council’s private sector housing team then identified serious security and fire safety concerns, as well as general disrepair.

The main external entrance door was insecure, leaving the property vulnerable to intruders, while fire precautions weren’t properly maintained, putting the occupants at risk.

A long list of safety issues were also spotted, including socket outlets next to shower cubicles, taped-up electric cable to a fridge freezer and poorly maintained socket outlets.

No current gas safety certificate was supplied when requested and concerns about fire safety were so serious that the fire service was brought in to carry out a joint inspection.#

Ignored informal requests

Reading Magistrates Court heard that Zamir failed to comply with the council’s written request for information about the property and then, despite being given the opportunity to address matters informally, failed to carry out the necessary work.

He was found guilty of one charge of failing to comply with the Local Government Act and 13 HMO management regulations charges. He was also ordered to pay £4,480 costs and a victim surcharge of £181.

The council’s lead member for housing, John Ennis (pictured), says this acts as a stark warning to landlords to comply with the rules.

“Our Reading Rent with Confidence scheme is also helping by awarding gold, silver and bronze standards based on quality of accommodation and good management practices,” he says.

“By providing good landlords with a market advantage and potential tenants with confidence, along with prosecuting substandard landlords, we are driving up living conditions for Reading’s residents.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – First hefty fine of the New Year slapped on HMO landlord in Reading | LandlordZONE.

View Full Article: First hefty fine of the New Year slapped on HMO landlord in Reading

EXCLUSIVE: Landlord wins battle with DWP over ‘failing’ UC payments system

admin    Uncategorized     agents

A Nottingham landlord has vowed to keep challenging the DWP with possibly hundreds of complaints after scoring his second victory against the Department of Work and Pensions (DWP).

The Independent Case Examiner (ICE) has ordered it to apologise for the mistakes it made dealing with Mick Roberts – who operates one of the largest private property portfolios in the city – and to implement the recommendations by 9^th February.

Last May, Mick received another rare apology from the DWP over problems he encountered while attempting to register an Alternative Payment Arrangement (APA) for one of his tenants. However, it took two years for the ICE to find in his favour.

This time the problem started in 2016 when a tenant in one of his shared properties, who owed eight weeks rent, made a live service claim to Universal Credit.

Mick then requested an APA and, after waiting more than a year, found it wasn’t clear which tenant the payment related to.

In 2019, he made a number of complaints to the ICE which has now found that the DWP failed to:

• Acknowledge and use the letter of authority sent by the tenant;
• Include appropriate reference details when making direct payments into his bank;
• Call him to discuss his complaint;
• Consider the impact that sanctions on his tenant would have on the accrual of rent arrears;
• Consider his request to save his bank details to use across his records.

However, the ICE didn’t accept that the DWP should repay Mick £7,900 he was owed in rent arrears.

Mick tells LandlordZONE that the experience has made him decide not to take on any more tenants on benefits, but he adds: “It’s the system that’s at fault.

“Yet again there’s no financial redress and you wonder if there’s any point in complaining about the DWP, the massive financial losses and mistakes for them to say, ‘Oh sorry, the tenant is now homeless’.”

He currently has 20 more complaints with ICE regarding tenants on UC, and potentially 350 more.

Mick explains: “With all the potential tenants I have that will be switched onto UC in the next five or so years, unless UC sorts themselves out and start talking to landlords, then – at the rate it keeps making mistakes on every single claim – I can’t see the complaints stopping. They beat you down with stupidity and bureaucracy, but I’m going to keep fighting.”

Read more about DWP’s APA payments system.

PIC credit: Nottinghamshire Live.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Landlord wins battle with DWP over ‘failing’ UC payments system | LandlordZONE.

View Full Article: EXCLUSIVE: Landlord wins battle with DWP over ‘failing’ UC payments system