Social media adverts prompt council to come down hard on landlords

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Rotherham Council is set to start using banning orders in a bid to crack down on the town’s rogue landlords.

Those guilty of unlawful eviction, harassment, overcrowding and fire or gas safety offences would then find themselves banned from renting out properties with a custodial sentence of up to 51 weeks, an unlimited fine, or both, if they ignore the order.

Social media

A council report says Rotherham has seen an increase in unregulated and/or unaccredited agents and landlords advertising rented properties through social media, without any appropriate letting background. It adds: “A number of landlords have now, as a result of selective licensing, been found to be in breach of relevant legislation. This policy will offer the council the means to take action against landlords and agents who have been convicted of certain offences, and who routinely offer poor housing, often to the poorest and most vulnerable in society.”

The authority believes there is a clear public interest in managing landlords who commit serious offences effectively, both to protect their tenants and the wider community. It explains: “Strategic housing within adult care, housing and public health have noted that the potential to use banning orders are a necessary tool to improve the private rented sector and protect tenants.”

Financial burden

In 2020, the council extended – and expanded – its selective licensing scheme, despite protests that it would be an unnecessary financial burden on landlords. Those with properties in the Eastwood/Town Centre, Masbrough, Maltby South East, Dinnington, Thurcroft and Parkgate areas have to stump up £521 for a licence.

Banning orders are set to be approved at the council’s next cabinet meeting on 25^th April.

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WFH and HS2 increase rental inflation outside London

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The cost of renting a home in London is now on average four times more expensive than some parts of northern England, new research shows. Renters now face having to fork up to £1,757 per month on average to secure the keys for a pad in Greater London.

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Proportion of landlords reporting increasing tenant demand reaches high of 62%

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Research undertaken on behalf of Paragon Bank has revealed that the strong tenant demand seen during last year has continued into 2022 after growing to the highest level recorded since 2011, when research agency BVA BDRC started tracking the metric.

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Due diligence is time-consuming – but ignore it at your peril

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Investors and landlords have been urged not to skimp on research and detective work when sourcing new business opportunities in order to prevent falling victim to scams.

Louise Reynolds, director of Property Venture whose firm helps expats and professionals through a bespoke property sourcing service, tells LandlordZONE that many people are coming a cropper when they’re new to property investing. “They trust everything someone says,” she explains. “There are certainly more people out there who are ready to hoodwink novices with a sales spiel.”

Property show

Reynolds joined Landlord Action’s Paul Shamplina, landlord Patricia Ogunfeibo and Hayley Andrews from Your Freedom Empire at the recent Property Investor show in London, to talk about due diligence, offering tips for landlords when dealing with new tenants and for investors looking to do business with individuals and companies.

Reynolds explained how a recent search on social media and LinkedIn had revealed a gap in a prospective developer’s profile which coincided with a period working at a different company which had gone bust. This rang alarm bells and prompted more digging. She advised: “When you’re checking people out, it’s what’s missing as much as what’s there. Some people supress information.” She said it was wise to get three points of information before signing up to anything, so that investors were not just relying on Companies House data or one person’s review.

Land Registry

Putting a tracker on a particular name at Companies House to bring up other companies they have been involved with is a good way to make sure they haven’t gone bankrupt, it was suggested, while looking on the Land Registry and putting a name into Google to check customer reviews were also good ideas.

“Use Google to find information about people, do a CCJ search and check their company accounts to find out whether they’ve filed them, and break these down to build up a picture,” advised Shamplina. “If you’re dealing with a professional, such as a letting agent, ask to see their professional indemnity insurance to understand what it covers.”

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Funny film makes serious point about renters’ poor treatment

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Shelter has produced a darkly comic short film to highlight the ‘broken rental system’, featuring a fictional letting agency and overly truthful agent.

Comedian Rory Marshall ambushes potential tenants browsing the property listings of Only Choice Lettings’ window, explaining features about the properties, including the lack of a boiler and contaminated drinking water. He tells one mother and child: “It’s all the original features. So we’ve got a working fireplace, asbestos, wooden floorboards.”

Haunted house

Back in the office he’s on the phone with another prospective tenant, saying: “Some people have said that the house is haunted, because the landlord will ghost you at the mere mention of mould! He will be there to collect the rent though.” The agent admits that he cuts a few corners but adds: “It’s either take what we’ve got or go and live on the streets, so…not really our problem.”  

All the properties mentioned in the two-minute online film are based on true stories according to the homeless charity which aims to use the film to help achieve its goal of making private renting safer and fairer, and to build support for the upcoming Renters’ Reform Bill, the ban on Section 21 evictions, and a national landlord register.

Grim reality

“Every day our services hear from private renters stuck in nightmare situations, too afraid to complain for fear of eviction,” says Osama Bhutta, director of communications, policy and campaigns at Shelter. “This satirical film will make you laugh at first, but then it will make you gasp. It is a powerful reminder of the grim reality of private renting where millions of people have no choice but to put up with poor conditions. We hope it will unite renters in the fight for home.”

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LATEST: Landlords report huge leap in demand for their rental properties

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Demand for rental property is nearly four times higher than just before the start of the pandemic, latest research reveals.

Mortgage lender Paragon says 62% of landlords polled by research agency BVA BDRC on its behalf reported increasing tenant demand in recent months.

This is compared to just 16% during the first three months of 2020 just before the first Covid lockdown.

Significant increases

Some 700 landlords advertising properties to rent were asked to assess tenant demand over the previous three months and a ‘significant increase’ was seen by 34% of respondents, with a further 28% reporting some increases.

Perceived decreases in tenant demand, both significant and slight, were recorded by just 3% of landlords, the lowest on record.

The rental markets seeing the greatest increases include within inner London where 84% of landlords operating in the inner capital along with the South West of England and Wales.

Moray Hulme, (pictured) Mortgage Sales Director for Paragon Bank says: “Another record high in the proportion of landlords reporting increasing tenant demand reaffirms the need to increase the supply of homes in the private rented sector.

“There is evidence of landlords exiting the sector with many citing increasing tax and regulatory requirements making their lettings business more arduous to operate.

“While it is clearly important that landlords are taxed appropriately and the sector is regulated to ensure high standards are maintained, we must ensure that buy-to-let remains attractive enough to investors who are vital in supplying the properties needed to meet demand.”

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RICS compensation claim guidence for loss of light

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Homeowners left in the shadows by neighbouring sheds, fences and home extensions could claim for compensation or have them removed – help for these homeowners is set out in a new consumer guide published by the RICS. Click here to download the guide.

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