‘Landlords facing double whammy of higher materials bills and more tenants WFH’

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Tenants are piling pressure on landlords to fix a multitude of minor jobs, with boiler repairs and general wear and tear maintenance on the increase as a result of the trend to work from home.

“In the last few years, we have witnessed people being more cautious and trying to reign in their spending,” director Callum Lee (main picture) at Adam Lee Property Maintenance tells LandlordZONE.

“At the same time, we’ve never been busier as tenants are spending more time working from home and noticing when things go wrong.

“They’re also very quick to point this out to landlords, while pre-Covid, they might not have been so bothered about that wobbly door handle.”

The north-west London-based property maintenance firm deals with everything from same-day small plumbing, heating and electrical jobs to major refurbs and new builds, working with landlords, estate agents and management companies.

Rising costs

“Rising labour and materials costs – sometimes by as much as 40% in the last couple of years – as well as a shortage of skilled labour are hitting home across the maintenance sector, he adds.

“It’s hard to get a workman to drive across London, to pay the congestion charge and parking, and do a small job, but this is what tenants want done.” 

Despite this, many landlords are grateful they’ve got good tenants and are now often more open to agreeing to get work done, says Lee who’s currently dealing with a list of more than 70 maintenance issues pointed out by one very new tenant, of which 75% are “very picky” – but he reckons the landlord will probably agree to fix them all.

However, there will always be those who are reluctant to spend any more than they have to, and insist tradesmen should patch up a shower leak with silicon rather than spend more to investigate the problem.

“Sometimes we’ll get a call a few months later from the landlord saying the leak has come back and our work wasn’t good enough. We have to be diplomatic,” Lee adds ruefully.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Landlords facing double whammy of higher materials bills and more tenants WFH’ | LandlordZONE.

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What about landlords’ rights? Association says Scots plans to protect tenants ‘unfair’

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Landlords’ rights will be eroded if the Scottish government goes ahead with plans for PRS reform in its draft rented sector strategy, according to Propertymark.

The association believes the tenant-centred approach of A New Deal for Tenants overlooks the needs and rights of letting agents and landlords, particularly around their ability to seek possession of properties.

The government is currently consulting on proposals which include a system of rent controls, setting up a regulator for the private rented sector, and creating a new housing standard covering all homes.

In its response, Propertymark opposes rent controls and describes a proposal to ban winter evictions as “unnecessary and unworkable”.

It is also against the removal of mandatory grounds for possession and is “deeply concerned” that such a change would make the uncertainties around possessions too risky for landlords and that some will simply quit.

Propertymark adds that without providing incentives to stay, it risks losing investment and properties from a sector that is already struggling to keep up with demand.

As a flavour of how ‘tenant-centre’ the New Deal for Tenants is, throughout it the word ‘tenants’ appears 289 times — nearly twice as many times as ‘landlords’ (165 times).

Daryl McIntosh, policy manager for the UK devolved nations, says that by considering tenants in isolation, policymakers are showing little regard for the legal rights of landlords and their letting agents.

“The Local Government, Housing and Planning Committee has just published its scrutiny of the Coronavirus (Recovery and Reform) (Scotland) Bill in which it too leans favourably towards tenants, despite hearing warnings directly from landlords that permanent changes to the possessions process would place too much financial risk on them and could force more to sell up,” says McIntosh (pictured).

He adds: “The sector is already under huge strain and desperately in need of more investment, not less, so we urge the Scottish government to carefully balance its reforms to ensure any interventions to achieve short-term objectives do not lead to market failure in the long run.”

The comments by Propertymark have not gone down well with local housing rights campaigners. Living Rent, the country’s largest tenants’ union, has slammed the comments and suggested the trade body is trying to shield landlords from the “biggest squeeze in income for generations”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – What about landlords’ rights? Association says Scots plans to protect tenants ‘unfair’ | LandlordZONE.

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ONS data for cost of living crisis – 34% of renters reporting rent increases

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The Office for National Statistics has released its latest report using data from the Opinions and Lifestyle Survey analysing how different demographics have been affected by an increase in their cost of living from November 2021 to March 2022: Click here

The results show housing costs have also been a growing contributor with 34% of renters reporting their rent had increased in the last six months

View Full Article: ONS data for cost of living crisis – 34% of renters reporting rent increases

‘More government regulation of the PRS won’t work – here’s why’

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It is common to hear from both politicians and campaign groups that the Private Rented Sector (PRS) needs more regulation.

But the question they have not addressed is what the purpose of this regulation will be.

If it’s to drive landlords out of the market, then it will succeed. If it’s to drive bad landlords out of the market, then it will not. That sounds wrongheaded but let me explain.

We have a very unusual market made up of millions of small landlords owning less than three properties who often do not have the capital resources to deal with onerous regulations.

Many of them want to comply with the current rules and most provide homes that range from very good to OK.

But if they are faced with new regulations that they cannot afford to meet then they will leave the market.

The bad landlords who do not comply with the existing rules are unlikely to comply with any new ones.

What is more, if as a result of good landlords leaving the market there is a massive surge in demand the bad ones will see this as an opportunity.

As more tenants are forced to occupy their properties at higher rents because they have nowhere else to go, so bad landlords will prosper.

But surely, you say, the new rules will drive them out of the market?

No – enforcement in practice does not work because it’s incredibly expensive to enforce rules against those who will not comply because, although they are a small percentage of the overall market, it still means policing 100,000s of properties.

What’s our PLAN?

History shows that if you want to create new conditions the carrot is far more effective than the stick.

If the objective of a policy is to create more landlords providing better homes, then we must encourage more landlords into the market who have the resources and scale to create good homes for tenants.

Such landlords will have the capital resources to invest in properties, comply with regulations and provide good homes.

To do that, you need to create a framework that incentivises such landlords to come into the market.

Instead of cutting supply, you will increase it. And if you increase the supply then you give tenants more choice and create the right market, one which will respond positively to regulations.

Surely that should be the objective of policy for all parties and stakeholders be they Conservative, Labour, Generation Rent, Shelter or whoever?

Unfortunately, it does not appear the be. My organisation, PLAN, is trying to win support to rethink the whole strategy for the PRS and appeal to those who agree with this to support us.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘More government regulation of the PRS won’t work – here’s why’ | LandlordZONE.

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Land Registry holding up loan?

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I purchased a property six months ago and have a subsequent new loan agreed in principle.

However, I am still waiting for the Land Registry to complete the registration of the title and until the process is completed

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