Campaigners claim letting agents ‘egging on’ landlords to raise rents

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Renters groups have blamed letting agents for encouraging private landlords to raise rents to unacceptable levels to help boost their revenues.

In a Generation Rent survey of more than 1,000 renters in England, when tenants facing rent rises asked their landlords for an explanation, 17% cited letting agent advice compared with 11% of landlords who cited mortgage costs as the reason for increasing rent.

The survey found that a third of prospective tenants had been asked to attend mass viewings with other renters, a quarter were asked for multiple months’ rent in advance and a fifth had been told to bid up rents to secure a home.

Deputy director Dan Wilson Craw (pictured) tells the Financial Times that rent increases are, “symptoms of a market where there is a shortage of homes, but letting agents are making life harder for tenants, making the whole process more stressful”.

Michael Deas, a co-ordinator for the London Renters Union, adds: “Rents don’t just go up — they are inflated by…agents and the market reports they put out.”

Lettings boss Greg Tsuman, president-elect of ARLA Propertymark, refutes the claims that agents’ behaviour has distorted the market and says prices are going up because of fierce competition for properties.

He adds that letting agents often advise landlords to go for lower prices as they would be more sustainable long-term.

“If everyone is fighting for the property, it’s stressful,” Guy Gittins, chief executive of estate agent Foxtons told the newspaper.

“Guess what, it’s stressful for the agent too, it’s not an environment we welcome. We sympathise with the renters of London; it is a supply and demand dynamic that is not healthy.”

View Full Article: Campaigners claim letting agents ‘egging on’ landlords to raise rents

BREAKING: ‘Rent Smart Wales’ style scheme revealed for Welsh holiday lets

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The Welsh Government wants to know what landlords who operate holiday accommodation in the country think of its proposed regulation of the sector.

Following a deal with Plaid Cymru, the Welsh Labour Government has committed to a statutory licensing scheme for holiday lets, which is likely to be very similar to the existing Rent Smart Wales scheme for traditional lets.

This would see properties on platforms such as Airbnb or Booking.com required to meet much tougher conditions before being offered for rent, including all providers to evidence that they have met certain requirements in order to operate.

Permission

This include having the correct insurance for accommodation providers, confirmation of planning permission to allow the premises to be let, evidence of a fire risk assessment, gas safety certificate, and proof of electrical safety, to list a few examples.

The scheme is part of a package of measures to address the negative impact second homes and short-term holiday lets can have on the availability and affordability of housing for local people in Welsh communities.

A licensing scheme would include a database of who is operating in the sector as it is “currently not possible to determine how many visitor accommodation businesses there are in Wales, or in any given community,” the consultation document says.

It is also expected that the licensing scheme will be backed up by a mechanism – and funding – to ensure property owners comply with the scheme.

Economy Minister, Vaughan Gething (pictured) says one key thrust of the scheme would be to ‘level up’ regulation and compliance – many hotel and B&B owners argue that they must comply with fire and safety legislation, for example, while properties on Airbnb do not have to.

“Over the course of the past year, we have been exploring and engaging with stakeholders on how such a scheme could work in Wales,” he adds.

“As the consultation now opens, we would like to hear further views and would encourage the sector to respond to the consultation.”

His opposite number at Plaid Cymru, Siân Gwenllian, says the initiative is part of a wider effort in Wales to take “radical and immediate action to address housing market failures and the lack of affordable housing, using the planning, property and taxation systems to make a difference.

“There has been a huge increase in the short-term holiday let sector in recent years which is exacerbating the housing crisis in Wales. While we have a regulatory framework in place in Wales for private rental accommodation,” she says.

Read the consultation document and respond here.

View Full Article: BREAKING: ‘Rent Smart Wales’ style scheme revealed for Welsh holiday lets

Scots Minister shows ‘blatant disregard’ for landlords with higher BTL stamp duty

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Landlords in Scotland have been hit with a stamp duty rise as the government strives to raise additional revenue.

It announced legislation in the Budget statement to increase the rate of the Additional Dwelling Supplement from 4% to 6% for second home buyers and buy-to-let landlords, which also aims to protect opportunities for first-time buyers.

The Scottish Fiscal Commission forecasts that the changes – which take place immediately – will raise an extra £34 million in revenue in 2023-24.

The Scottish government blames Westminster for forcing it to make the decision. Deputy First Minister John Swinney told the Parliament: “The calamitous choices made by successive UK governments have made our economy weaker and put the public finances under tremendous strain.

“Increasing the tax due on the purchase of additional dwellings such as second homes maintains our commitment to protect housing opportunities for first-time buyers in Scotland, while also raising vital extra revenue.”

Propertymark points to an already plummeting desire for landlords to remain in the sector, with 68% of letting agent members in Scotland reporting an increase in notices to sell due to ongoing legislative changes.

4% to 6%

Timothy Douglas, its head of policy and campaigns, says: “It’s disappointing to see the blatant disregard for the importance of incentivising investment in the private rented sector by raising the Additional Dwelling Supplement from 4% to 6% for additional homes.

“The private rented sector is a key solution to resolve the housing crisis but if the Scottish Government continue with policies that disincentive landlords this will only make the situation worse.”

Scottish landlords have already been hit with emergency legislation, banning evictions and rent rises until at least next April.

Read the Budget statement in full.

View Full Article: Scots Minister shows ‘blatant disregard’ for landlords with higher BTL stamp duty

Bank Base Rate Rise – Worked Examples for Landlords – NEW VIDEO

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Property118 members seem to love worked examples when it comes to understanding the principles of tax related to finance costs, so that’s exactly what my latest video on the Property118 TV YouTube channel provides.

I recorded this latest video below immediately following the Bank of England’s announcement that they had increased interest rates by a further 0.5% on 15th December 2022.

The post Bank Base Rate Rise – Worked Examples for Landlords – NEW VIDEO appeared first on Property118.

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Property leaders urge Michael Gove to address PRS pressures

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Leading members of the property sector have written to Michael Gove calling on him to address the unsustainable pressures on the private rental sector.

They say that Government policy needs addressing to help deliver cheaper rents for tenants – because that is what most tenants want.

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View Full Article: Property leaders urge Michael Gove to address PRS pressures