The UK’s house prices stall – but rents rise

admin    Uncategorized     agents

The UK’s average house price increased by 9.5% over the year to September, down from 13.1% in August, data from the Office for National Statistics (ONS) reveals.

The latest house price index shows the annual percentage change slowed because house prices rose sharply in September 2021

View Full Article: The UK’s house prices stall – but rents rise

BREAKING: Minister says Government will ‘never allow rent controls in England’

admin    Uncategorized     agents

Newly-installed PRS housing minister Felicity Buchan has told a meeting of landlords that her Government would never bring in rent controls.

Her comments came during the NRLA’s annual conference in Coventry during which she also committed to ‘stick around’ and made several comical allusions to the short tenures of previous housing ministers.

Buchan also said the Government accepted the NRLA’s proposal to tackle anti-social behaviour by tenants.

This includes convening a meeting of key stakeholders representing landlords, tenants, the police, local authorities and others to develop plans to ensure swift and effective action can be taken against tenants who behave badly.

But the Minister confirmed that Section 21 would be going and counselled the sector to get ready for the eventuality, outlined the Government’s commitment to ensure its plans to reform the private rented sector work for responsible landlords as well as tenants and said she understood concerns about the impact its plans could have on the student housing market.

Likewise, she made clear the importance of the court system working “properly and efficiently” when Section 21 is abolished.

Confidence

Ben Beadle (pictured), Chief Executive of the NRLA, says: “We welcome the Minister’s comments and agree that the Government’s rental reform plans need to enjoy the confidence of both responsible landlords and tenants.

“The NRLA has made clear that more needs to be done to ensure the behaviour of anti-social tenants can be tackled effectively when Section 21 goes.

“We therefore welcome the Minister’s acceptance of our proposal for a roundtable on the issue.

“It is vital that all key stakeholders representing landlords, tenants, the police and others can develop clear and workable plans to ensure neighbours and fellow tenants alike are not left at the mercy of nightmare tenants.”

Pic credit: NRLA

Read more: What will happen after section 21 goes? 

View Full Article: BREAKING: Minister says Government will ‘never allow rent controls in England’

London’s rental prices reach record high weekly price

admin    Uncategorized     agents

New figures show that London’s rent prices have reached record highs, as rising interest rates and lack of supply put pressure on rents, Foxtons reports.

In October, rents reached a new record high of £571 per week, exceeding the previous high of £553 per week in September 2022.

View Full Article: London’s rental prices reach record high weekly price

LATEST: Landlords raise rents and sell properties as costs rise

admin    Uncategorized     agents

Almost three in five (60%) small portfolio landlords are preparing to increase rents to compensate for higher costs, while a fifth plan to sell some of their properties to directly combat the cost-of-living crisis.

A third of these landlords are looking for ways to make their properties more energy-efficient to address rising fuel bills, finds new research from Handelsbanken, which believes tenants could be impacted by any belt-tightening as a quarter of landlords say the economic climate will affect their maintenance and refurb programmes.

More than a fifth of portfolio landlords have had at least one mortgage deal fall through, with 40% reporting that their lender has increased the loan rate on one or more properties.

Stamp duty

As a result, 45% are planning to buy lower-value properties to remain under the stamp duty land tax threshold.

The study also shows that more than a third (34%) are cutting back on buying properties in cities as the market adjusts to more people working from home.

James Sproule (pictured), UK chief economist at Handelsbanken, says falling house prices in some areas and a rising regulatory burden are being viewed by some landlords as a reason to reduce their exposure to the market.

“While the ongoing cost-of-living crisis might be seen as the driving factor in the buy-to-let market, equally important are the post-pandemic movement back into cities, potential buyers delaying purchases and thus looking to rent, and fewer properties, meaning those who do persevere, are likely to see higher yields,” he adds.

Read the report in full.

View Full Article: LATEST: Landlords raise rents and sell properties as costs rise

Shamplina: Rising evictions are driven by landlords exiting, not rent arrears

admin    Uncategorized     agents

Leading evictions expert Paul Shamplina (main pic) has called out Generation Rent’s claim that private renters are “under stress like never before” as eviction activity rises within the private rented sector.

The comments have been made by its Deputy Director Dan Wilson Craw (pictured), who said the most recent eviction statistics from the Ministry of Justice suggest renters who are struggling face landlords using Section 21 evictions to remove them from properties.

The MoJ statistics show that no-fault evictions are at their highest since 2017 and that evictions for rent arrears are at their highest on record.

“Private renters are under stress like never before. The rising cost of living has pushed thousands into rent arrears, who now face homelessness as their landlords seek eviction,” says Craw.

“Even staying on top of rent is not enough for other renters, whose landlords are using Section 21 eviction notices to force them out without needing a reason. These properties will often end up back on the market at a much higher rent.” 

Covid delays

But Shamplina says the figures do not reflect the cost-of-living crisis but rather the huge bottleneck of Covid-era eviction activity finally passing through an already-creaking courts system.

“Despite the data showing that evictions and Section 21 notices have surged recently, they continue to be at very low levels compared to the millions of households within the private rented sector – our figures suggest this year some 6,000 people will be evicted via Section 21 notices by private landlords,” he says.

“We also know that an unprecedented number of landlords are selling up; 26% of landlords that served a section 21 through landlord action during the past 12 months did so because they are exiting the market. “

Nevertheless, Craw has called on the Chancellor to take emergency steps during his Autumn statement on Thursday to stop tenants being evicted by their landlords and “stop rents from worsening the cost of living crisis”.

“We need Jeremy Hunt to freeze rents, suspend no-fault evictions, and re-link Local Housing Allowance rates to market rent,” he added.

View Full Article: Shamplina: Rising evictions are driven by landlords exiting, not rent arrears

The ethics vs financial realities of paying a tenant to leave?

admin    Uncategorized     agents

Hello, We have an awkward freeloader who’s stopped paying. If it takes 6-12 months to evict him we will have a lot of unpaid rent (Yes, we can sue, but CCJ’s may go nowhere with a “paper” debtor), plus legal/court fees

View Full Article: The ethics vs financial realities of paying a tenant to leave?

Dodgy ‘guaranteed rent’ firm RHP is STILL in business, says another fed-up landlord

admin    Uncategorized     agents

Dodgy rent-to-rent firm RHP Lettings – previously exposed on TV’s Slum Landlords, Nightmare Tenants – has been up to its old tricks again.

Another fed-up landlord who has put up with late payments for years is now desperate to break free from her agreement with the London-based outfit.

The landlord – who wants to remain anonymous for fear of retribution – first signed her flat up with RHP Services (as it was known before changing its name) a few years ago and says she grew used to its poor communication, service – and excuses.

“In 2020, after finding some appalling reviews on allAgents, I got really fed up and even thought about tracking down who they were actually letting my property to,” she tells LandlordZONE. “I thought this might put pressure on them to start making payments again.”

That year, Landlord Action’s Paul Shamplina highlighted the story of a landlord who warned others not to use the company after it failed to pass on rent and mismanaged his properties. Shamplina explained how he had received numerous complaints against RHP Services/Lettings, from those in similar situations.

Read more: Don’t let this happen to you, says landlord after losing £40,500 to guaranteed rent scheme.

This landlord says her rent payments stopped again in the summer. She now wants her property back but is uncertain whether a simple year-long contract signed with RHP years ago is still valid.

“I wouldn’t want to evict anyone so I’m trying to work out what the best thing is to do,” she adds. “Looking back, I was naïve. But once you’re in their clutches it’s hard to get out.”

LandlordZONE has approached RHP Lettings for comment.

View Full Article: Dodgy ‘guaranteed rent’ firm RHP is STILL in business, says another fed-up landlord

Inventories provide landlords with a ‘last line of defence’

admin    Uncategorized     agents

Landlord and agent fears over controversial Government proposals for the private rental sector (PRS) would be eased by the adoption of a rigorous, professional inventory policy, says one industry boss.

The chief executive of No Letting Go, Nick Lyons

View Full Article: Inventories provide landlords with a ‘last line of defence’

Rents pass £1,200 for the first time

admin    Uncategorized     agents

The average rent on a newly let home in Great Britain rose to £1,204 per month in October, up £80 or 7.1% year-on-year, costing the average tenant an extra £960 each year, data reveals.

The findings from Hamptons show that rents in five regions have nudged into the next £100 price band this year

View Full Article: Rents pass £1,200 for the first time

Landlord group pushes for publication of new MEES rules

admin    Uncategorized     agents

The landlord association iHowz has written to three Government ministers urging them to publish the new domestic Minimum Energy Efficiency Standard (MEES) rules so landlords can prepare to meet them in good time.

The organisation says it is worried that the new version of the EPC and accompanying Standard Assessment Procedure (SAP) will be published before the MEES criteria.

View Full Article: Landlord group pushes for publication of new MEES rules