Join the debate and experts at the next National Landlords Investment Show

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LandlordZONE readers are invited to join a gathering of like minds being organised by the National Landlords Investment Show in Elstree, Hertfordshire on 27^th September 2023.

Speakers at the free event will be discussing some of the hottest issues facing landlords at the moment and also offering advice on many of the key areas of interest to them.

Those on the panels at the show will include Nigel Lewis, editor of LandlordZONE and Paul Shamplina of Landlord Action (both main image).

Industry figures

Other appearing on the various panels being organised for the day, which is taking place at the Hilston London Elstree hotel, include NRLA chief Ben Beadle (pictured), tax expert Sean Hughes, property law figure Simone Ritchie, social landlord and agent Elliott Young, PRS lawyer Carly Jermyn and property development guru Ritchie Clapson.

Also appearing will be those with insurance, property services and smoke alarm expertise, all taking place at the same time as an exhibition of some 40 companies offering services and products to landlords and property managers.

To sign up for your FREE ticket visit the National Landlords Investment Show website to register and find out more.

View Full Article: Join the debate and experts at the next National Landlords Investment Show

Bill is solution to non-existent problem in student market, says landlord group

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Changes to the student rental market under the Renters (Reform) Bill could result in even less protection for students, according to York‘s Residential Landlord Association.

It believes moving from fixed-term tenancies to periodic tenancies might prompt landlords to offer licences by providing services to students alongside their occupancy, such as in-room cleaning, in a similar way to the Purpose Built Student Accommodation (PBSA) sector.

Others will claim, incorrectly or falsely, to enter into licences, says the landlord group. In either case, students will be deprived of not just the protections provided by the Bill, but also the current protections, such as notice periods in the event of rent arrears, and security deposit protection.

Simple solution

“Without a simple solution, we are concerned that landlords would be forced to move to a fixed-term room licence model similar to PBSA just to make sure the market operates as it is now,” chair Andy Simpson (right) tells LandlordZONE.

Property lawyer David Smith helped York RLA conduct an impact assessment which found that the loss of fixed-term tenancies would effectively destroy the current arrangement between students and PRS landlords, who would have no certainty that students were going to leave on any specific date unless they had given two months’ notice.

Similar code

Those in the PBSA sector who have signed up to the Unipol Code of Practice will be able to exempt themselves from the Bill and grant fixed-term tenancies. The group argues that landlords in the PRS could sign up for a similar code.

York RLA explains that there are already massive shortages in the city; the PBSA only houses 30-35% of students, with the PRS housing more than 50%. It adds: “York can ill afford to lose any landlords from the student accommodation sector and every one that leaves will lead to five or more students either being unable to take up a university place due to a lack of accommodation or being forced to live some distance away.”

View Full Article: Bill is solution to non-existent problem in student market, says landlord group

BBC scrutiny dents mayor’s bid to paint bleak renting picture

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London Mayor Sadiq Khan has been pulled up for selectively using statistics to lend weight to his demands for rent controls in the capital.

Khan recently Tweeted: “London’s average rent is expected to soar to £2,700 next year. The average take home salary per month in London is £2,131. Londoners cannot continue living this way. That’s why I’m calling on the government to urgently introduce a rent freeze.”

ONS forecast

BBC Radio 4’s More or Less programme investigated his claim and discovered that City Hall had worked out predicted take-home pay using the Salary Calculator UK website while average rent was worked out using Rightmove’s figure of £2,480 a month at the end of 2022 and Savills’ prediction of a 5% increase in rents next year.

The programme explained that Rightmove was describing new rental agreements while by looking at actual rents, the ONS had put the median monthly rent in London at £1,500 a month.

Property types

After speaking to Tim Bannister, director of property science innovation at Rightmove, it discovered that average monthly rent figures included all property types, with the most common properties counting for more. While a one-bedroom flat in London costs an average of £1,800, the most popular type of property is a two-bedroom flat with an average rent of £2,265 which, divided by two is £1,132 per room.

The programme concluded: “Nobody is claiming London is cheap, but if as Sadiq Khan did, you compare this year’s salaries with next year’s rents and if you look only at new rents, not existing ones, and if you focus on a single person’s income while including the rents for multi-person homes, you’re going to make things look considerably worse than they really are.”

View Full Article: BBC scrutiny dents mayor’s bid to paint bleak renting picture

BLOG: Probe will rule that deposit alternatives are pro-consumer choice

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The Competition and Markets Authority (CMA) is to probe five different activities involving landlords and letting agents, and their responsibilities to private tenants, with deposit alternative products as an area of focus (says Ben Grech at Reposit). 

As one of only two FCA-regulated providers within the UK, Reposit is all too aware of the unfair practices that some operators have unfortunately been allowed to continue. We want to see unfair practices banned but also a recognition that deposit alternative products are efficient and help create a more competitive market that improves consumer outcomes. Equally, we’d like to see the deficiencies of the cash schemes examined.   

Fair amounts

We see that, for the most part, landlords claim fair amounts and tenants pay what they owe. After six years of operation, our data shows 56% of tenancies end without any charges for the tenant to pay, while 14% of tenancies end with tenants owing more than five weeks’ rent (the maximum usually allowed from cash deposits). Five weeks’ rent is not enough protection for landlords if things occasionally go wrong and it’s unnecessary, and even inequitable, to require all tenants to lock up a large cash deposit.

So how can landlords secure the right protection without tenants paying more upfront? This cannot be achieved with cash. However, our product solves the tenant affordability issue while ensuring landlords are fairly and properly protected with up to eight weeks’ rent – 60% more cover than cash schemes. At the end of tenancy, any unfair charges can be disputed, while formal disputes are independently adjudicated and settled within 14 days. 

Locked away

Cash schemes are purportedly ‘free’ and protect tenants from unfair charges, while creating a more affordable and equitable rental market. Yet we believe there are two issues: they’re not equitable and are not free. With the Bank of England base rate at 5.25%, over £200 million per year is generated in interest on the £4.5 billion locked away in cash deposits – money which could be released into the economy. 

The CMA’s mission statement is to ‘Make markets work well in the interests of consumers, businesses and the economy’ and we’re therefore confident it will determine deposit alternatives are pro-consumer choice and promote a healthy market. 

• Ben Grech is CEO at Reposit.

View Full Article: BLOG: Probe will rule that deposit alternatives are pro-consumer choice

Local authorities are using selective licensing as a ‘cash cow’ – Special Report

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Lots of councils see selective licensing schemes as a way of improving housing stock in the private rented sector (PRS) and work hard at gaining government permission to set up and run these schemes.

But many of the same councils that claim to need a licensing scheme to boost standards in private rented homes are being regularly condemned by the Housing Ombudsman for ‘apathy and failures’ when it comes to their housing.

View Full Article: Local authorities are using selective licensing as a ‘cash cow’ – Special Report

Rent deposits eat up more than half of the average monthly income

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The average renter in the UK must spend 64% of their net monthly income just to pay the deposit on a new rental property, a study reveals.

The findings from Zero Deposit highlight that for women, the proportion is even higher

View Full Article: Rent deposits eat up more than half of the average monthly income