Landlords leaving the sector ‘not as bad as claimed’ says leading estate agent

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A new survey has downplayed the scale of landlords ready to quit the sector due to heavy-handed government regulations and upcoming legislation.

Leaders Romans Group’s poll of 271 landlords found that only 7% plan to sell up in the next year while 12% aim to reduce their portfolio. In contrast, 71% hope to hang onto their portfolio and 10% will expand it.

Of the 51 landlords planning to sell, most cited changes in policies including increased smoke and CO detector requirements and the imminent Renters Reform Bill. The economy – interest rates, energy costs, lack of disposable income – and personal circumstances unrelated to income were also blamed.

A recent NRLA survey found that 30% of landlords planned to cut the size of their portfolio this year, the highest level of planned disinvestment seen in more than six years, many blaming government tax measures and red tape. The Bank of England also revealed that government tax and other policies were forcing out investors.

Housing crisis

Allison Thompson, Leaders’ MD of lettings (main picture), says the government must realise that the housing crisis, specifically the under-supply of rental units, can’t be resolved by penalising the already stretched PRS.

Instead, it should reconsider proposals to require rented properties to have an EPC rating of C, plans to ditch Section 21 and assured shorthold tenancies.

“It has been suggested that tenants might be permitted to serve notice of two just months at any point – this would create considerable uncertainty for landlords, which is unwelcome in an already challenging market,” adds Thompson.

View Full Article: Landlords leaving the sector ‘not as bad as claimed’ says leading estate agent

Council green lights more HMO licencing despite proof on higher rents

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Nottingham councillors have voted through a contentious additional HMO licensing scheme.

The current scheme, covering central areas of the city, will soon come to an end and the council plans to introduce a new citywide scheme in January 2024.

It says this would prevent landlords who choose not to comply with licensing and standards – ineffectively managing their single occupancy properties – from trying to convert them to small HMOs where the “spread of harm could potentially be worse”.

The authority insists that its current additional scheme has had a positive impact on HMOs, including tackling problems with waste management and anti-social behaviour.

There are 3,230 smaller HMOs in the proposed area and 4,628 reports of issues were made against them between 2019 and 2022, a rate of 1.43 per property, according to the council which will now run a 12-week consultation. Proposed standard fees are £1,474, and £1,118 for accredited landlords.

Increase rents

Landlord group EMPO is opposed to the additional scheme as well as the new selective licensing scheme, which has caused many Nottingham landlords to increase rents, an external auditor’s report has found.

Audit consultancy Grant Thornton was asked to investigate concerns over value for money for both tenants and landlords, and although it says no formal audit action is needed, it has recommended addressing problems in the online application process, the scheme’s footprint and whether it should be better targeted, as well as whether inspection targets can be achieved, according to the Westbridgford Wire.

The current selective scheme is due to end in July and the council has drawn up a replacement, which EMPO warns would prompt many to quit the sector.

View Full Article: Council green lights more HMO licencing despite proof on higher rents

Boiler Upgrade Scheme has been a flop, Lords climate committee warns

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Peers have slammed the government’s Boiler Upgrade Scheme for attracting a “disappointingly low” take-up of grants.

Launched in May 2022 and open to landlords and home owners, 9,889 vouchers have been issued and 7,641 vouchers redeemed so far, making the government’s 2028 target of 600,000 installations per year very unlikely to be met, according to the Lords’ Environment and Climate Change Committee.

It warns that if the current take-up rate continues, only half of the allocated budget will be used to help households switch to low-carbon heating systems and that there won’t be enough installers and manufacturers to implement the government’s low-carbon heating policy.

It slams inadequate promotion of the scheme and misleading messages from the government which it says has negatively affected take-up of established low-carbon home heating technologies such as heat pumps.

Upfront costs are too high for many households and landlords, even with the help of the grant, making it impossible for low-income households to benefit from the scheme.

Extended

The committee wants the government to provide greater clarity on feasible options for low-carbon home heating through a consistent policy framework, public communications, and householder advice. The remainder of the scheme’s first year budget could be rolled over into the second year and possibly extended.

It also suggests correcting Energy Performance Certificates methodology so that certificates properly reward households for making the switch to low-carbon heating.

Committee chair Baroness Parminter (pictured) says: “The government must quickly address the barriers we have identified to a successful take-up of the Boiler Upgrade Scheme in order to help grow the take up of low-carbon heating systems.

“It is vital they do so if we are going to meet our Net Zero ambitions.”

Read official guidance about the scheme.

View Full Article: Boiler Upgrade Scheme has been a flop, Lords climate committee warns

Citizens Advice calls for ‘Awaab’s law’ to be extended to PRS

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A charity is calling for a new law aimed at cracking down on mould issues in social housing to be extended to private housing landlords.

Citizens Advice is urging the government to bring regulation of the private rented sector (PRS) in line with social housing after the death of Awaab Ishak.

View Full Article: Citizens Advice calls for ‘Awaab’s law’ to be extended to PRS

NEW: Citizens Advice says Awaab’s law must be extended to private landlords

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Citizens Advice has urged the government to extend Awaab’s law to the PRS to help the estimated 1.6 million children living in damp, mouldy or excessively cold privately rented homes.

Awaab Ishtak died aged just two years old after living in a mouldy and poorly ventilated council flat that led to him suffering heart failure, and so far the Government has limited its measures to the social housing sector.

These include more powers for the sector’s ombudsman and rules that will require landlords to investigate and fix serious problems within strict time limits.

Keep warm

New research by the charity found that 30% of renters can’t heat their home to a comfortable temperature and that some in the least energy efficient properties are paying an extra £950 a year just to keep warm. 

Its poll of 2,000 private renters in England found 58% are struggling with either damp, mould or excessive cold or a combination of these issues. If these renters had two children and the figures were extrapolated, it would add up to 1.6 million affected children, reckons Citizens Advice.

It wants the private rental sector to be brought in line with social housing by following the lead set by Awaab’s law – legislation which will place strict, legally binding timelines on social landlords to deal with damp and mould.

The Government has already announced that the PRS’s new housing ombudsman will lead the battle against mould while new measures would specify the time limits landlords must meet on investigating hazards and acting where there are health concerns.

EPC call

The charity is also calling on the government to make good on its promise to ensure all new private rental properties are upgraded to a minimum EPC C by 2025 and existing tenancies by 2028, and for the cap on landlord investment to increase from £3,500 to £10,000. 

Gillian Cooper (pictured), head of energy policy at Citizens Advice, says every week it hears stories about people living in cold, damp and mouldy properties they can’t afford to heat properly.

She adds: “Improving energy efficiency in privately rented homes has never been more urgent. It’s the step needed to keep people’s essential bills low, while also helping to protect their mental and physical health.”

Read more about mould and damp prevention.

View Full Article: NEW: Citizens Advice says Awaab’s law must be extended to private landlords

Agent requesting 2 months notice on a periodic tenancy?

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Hello, I’m hoping the Forum can help me. Bit of a different one as the advice needed is for a tenant rather than a landlord.

My niece has a periodic tenancy after the fixed term lapsed. In the initial contract

View Full Article: Agent requesting 2 months notice on a periodic tenancy?