Better relationships result in fewer end-of-tenancy clashes

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The number of tenancy disputes dropped last year despite a growth in the amount held in UK deposit protection schemes.

The average amount disputed fell from £793 to £784 in 2021, while the total number of disputes also fell by 12% to 34,444 in 2021. According to mydeposits, more than 4.5m tenancy deposits are protected across the rental market, up 2.3% on the previous year. It reports that at an average of £1,005 per tenancy, £4.6 billion is now held in protection schemes, up 1.1% on the previous year, meaning that the number of disputes as a percentage of all deposits has fallen from 0.9% to 0.8%.

Contentious cleaning

Although only a small number of tenants disputed the deductions made to their tenancy deposit, mydeposits estimates that the total value of rental deposit disputes was almost £27 million in 2021. Cleaning was by far the most contentious issue between landlords and tenants, with damages to the property, redecoration costs, gardening and rent arrears also ranking highly. 

mydeposits CEO Eddie Hooker says: “The good news is that deposit deduction disputes are actually few and far between and account for less than 1% of all deposits held within authorised protection schemes.”

Tenancy length

He adds: “We’ve also seen a reduction in total disputes lodged, which suggest the rental sector has become a more harmonious place over the last year, or that tenancies post-pandemic are increasing in length, resulting in less end of tenancy issues. Either way, it looks as though the sector is heading in the right direction where tenant-landlord relationships are concerned.”

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Resort urges council to kick out holiday home owners

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Whitby residents have voted overwhelmingly to end second home ownership in the North Yorkshire resort.

At the first local referendum in more than a decade, fed-up locals backed the question posed by the parish council: ‘Should all new-build and additional housing in Whitby parish be restricted to full-time local occupation as a primary residence only and forever (in perpetuity)?’

Planning decisions

Many complain that the seaside town is swamped with holiday cottages, fuelled by the staycation boom. Local businesses are struggling to get staff because the area is too expensive to attract new people, while existing residents are forced to buy elsewhere. The result of the referendum is not legally binding, but it could help inform future planning decisions or encourage Whitby Town Council to formally put a neighbourhood plan in place, similar to one in St Ives.

Leo Thai, from Jacksons Estate Agents, told the BBC that about 75% of properties were currently sold as second homes or to investors. “A lot of the time people find that they are out priced or find that they are in a position where they are competing with people coming into Whitby,” he added.

Council tax

Many other coastal communities around the UK are calling for more powers to reduce the amount of second homeowners in their areas. In Wales, the Local Government and Housing Committee has just called on the Welsh Revenue Authority to use consistent definitions when designing policies so that it can differentiate between buy-to-let investments and properties that can be classed as second homes or holiday lets.

Last month, it was announced that landlords in Wales who rent out self-catering accommodation on an infrequent basis will be liable for council tax – an average of £1,777 for a band D property. In England, second homes will need to be rented out for a minimum of 70 days a year to access small business rate relief rather than paying council tax, from April 2023.

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No Banks “too big to fail”

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The Bank of England has published their assessment that out of the 8 major Banks in the UK sector there are none that are “too big to fail” and would need government support if they got into trouble again.

If a major UK bank failed today it could do so safely

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I can’t be the only one facing credit frustration or am I doing something wrong?

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Since the crash and subsequent restructuring of the BTL market, our business borrowing has gone from a business loan to a lot of “personal” loans that now appear on our credit searches. I imagine this is the same for all landlords unless you own your properties outright.

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