Landlords holding back on rent increases during Covid, poll reveals

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Landlords are continuing to support hard-pushed tenants during the pandemic by not raising rents, but won’t be able to maintain their efforts without more Government help, letting agents have warned.

ARLA Propertymark’s latest survey finds the number of renters experiencing rent increases fell by almost a fifth year-on-year in September; 40% of agents witnessed landlords increasing rent compared with 48% in August – 18% lower than in September 2019, when the figure stood at 58%. 

President Angela Davey (left) says that as we head towards winter and further uncertainty due to increasing lock down measures, it’s vital that tenancies are maintained.

“To this end, with the furlough scheme finishing in October, Westminster must follow the Scottish and Welsh authorities in providing a package of support to tenants to keep the rent flowing,” says Davey.

“This is absolutely vital in keeping people with Covid-related arrears in their homes and ensuring that landlords continue to have funds to make mortgage payments.” 

Fewer tenants

ARLA’s Private Rented Sector report also found that the number of new prospective tenants fell in September, the first time since the housing market reopened in May.

The average letting agent branch registered 82 new tenants – a drop from 101 in August and the lowest figure recorded since February. The number of rental properties available per branch fell from 208 in August to 193 in September – the same number seen in September 2019.

The number of landlords selling their buy-to-let properties rose from four per branch in August, to five in September. Year-on-year this is the highest figure since 2015 for September.

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Leicester first council to offer direct financial Covid assistance to landlords

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Landlords and tenants are to be helped during Covid by a ground-breaking scheme launched today by Leicester City Council, an initiative that other councils around the UK will be watching with interest.

The council wants to help prevent evictions and, in the absence of a direct financial support scheme in England for either tenants or landlords during Covid from government, will offer to help landlords financially.

The council’s new service is designed to support landlords where their tenants are not fulfilling their legal obligations, or where financial difficulties have developed.

Examples include mediation and negotiation between tenants and landlords, facilitating payments to sustain tenancies in certain cases, or arranging for discretionary payments to solve affordability problems. The team also has strong links with universal credit and housing benefit services.

“It will focus on preventing homelessness by helping tenants who are renting privately to sustain their tenancies, making sure that landlords can rest assured on matters of income,” the council says.

The Leicester scheme is unusual because it is being offered to all PRS tenants and landlords across the city and not just those with direct links to the council.

“The council may be the biggest landlord in the city, but many of our most vulnerable residents rent from private landlords,” says Assistant city mayor for housing Elly Cutkelvin.

“We recognise that this sector has a very big part to play in meeting the needs of some of those who are most in need of a housing solution.”

“We rely on the support of responsible private landlords to help us provide homes, so it’s vital that we grow and maintain good relationships with landlords, as part of an overall housing strategy that also includes building more council homes.”

Local landlords interested in getting help should email landlordadvice@leicester.gov.uk in the first instance.

Read more stories about the Leicester private rental market.
ADVICE: How to manage property maintenance during Covid.

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You take the risk and I will take the tenant!

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I am constantly being approached by various Local Authorities to house single homeless people, something I am only too willing to do with certain conditions.

In summary, my reply demands a guarantor, for both rent and damage without limit

The post You take the risk and I will take the tenant! appeared first on Property118.

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I am a Landlord myself – Break clause?

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I served a notice on 16th October to terminate my tenancy, according to a 2-months break clause in my contract, expecting to pay only 2 month’s rent till I vacate the property on 15th December.

However, the letting agent has got back to me saying the break clause falls within the statuary law which means the notice must be served in line with the rent due date (1st of each month).

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5.8% annual house price growth at 5 year high

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The Nationwide House Price index just released for October is showing annual house price growth rising to 5.8%, the highest rate since January 2015.

House prices on a month-on-month basis, after taking account of seasonal factors are up 0.8%.

The post 5.8% annual house price growth at 5 year high appeared first on Property118.

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WHAT A DIFFERENCE A YEAR MAKES! Lovelle benefits from franchisor investment and creates three new franchised sales offices

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Less than a year after Newton Fallowell acquired the Lovelle brand, MD David Spackman has announced that the predominantly sales-oriented brand, which is based in Lincolnshire and East Yorkshire, has benefitted from considerable investment and resources, with three corporate sales offices being bought and franchised by former staff members.

“This is a very positive news story for Lovelle and I am so proud of what everyone has achieved,” says David. “When Newton Fallowell agreed the acquisition of 18 Lovelle branches last December, six of those offices were corporately owned. As we are part of the wider Belvoir Group, we have been able to introduce considerable investment into Lovelle this year, including a stunning new rebrand, investment in a new website and working with offices to streamline systems and procedures to help improve the client experience.

“We knew at the time of the acquisition that some Lovelle staff members had expressed an interest in taking on the six corporate owned offices, and I am delighted to confirm that we have honoured these aspirations. The Lovelle Skegness, Hessle and Grimsby sales offices have now been franchised to existing staff, which is always hugely beneficial as they understand the business and the clients and are totally committed to growing and developing their investment. Interestingly, the Lovelle Hessle office was taken on by Sophie Witter, who had enjoyed working for Lovelle in the past until her family moved to Essex. On her return to the area I offered her a job, and eight weeks later she became a franchisee!

“In addition, the Horncastle office has been taken on and rebranded by the owners of our Newton Fallowell Boston and Spilsby offices, whilst retaining all team members. Discussions are currently underway to franchise the remaining two corporate offices to staff members and we will make a further announcement about this when those transitions have completed.

“There is no doubt that the Covid pandemic has resulted in a challenging year for so many businesses, but I am delighted that Lovelle has come through lockdown stronger than ever and I would like to pay tribute to all the people who work there. Everyone has been amazing, and incredibly supportive of all of the new investments and initiatives that have been introduced.

“This success story has all been made possible because we are part of the wider Belvoir Group and we are able to access the fantastic marketing, accounting, auditing and acquisition teams who work so hard to ensure the success of the business. The enthusiasm and willingness of new franchisees to commit to taking on former corporate offices is testimony to their appreciation of what Belvoir offers, and I am confident that the future of Lovelle as a franchise business is very bright.”

Belvoir CEO Dorian Gonsalves says: “I am very pleased that we have been able to make this happen, as it is always very worthwhile when former staff members decide to buy into a business that they are already working in. I wish all of the new Lovelle franchisees every success as they continue to operate these businesses, whilst developing a stake in their own future. Belvoir is actively looking for further opportunities to acquire reputable regional estate agencies where there may be managers who are considering owning and operating their own business.”

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The National Landlord Investment team to host their online Super Show, Tuesday 3rd November with over 1200 minutes of free content!

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Join the team and over 40 expert speakers and connect with 50+ exhibitors online.

The team delivered there first online event on 8th October which covered the Midlands and Manchester area’s. The event was fantastic and over 2000 Landlords took part.
The show next Tuesday the 3rd Nov is the team’s national event and would normally take place at London Olympia.

We are delighted to announce we will be hosting 40+ seminars covering everything you can imagine in the private rented sector including a lively panel debate in association with the NRLA and Paul Shamplina of Landlord Action, the debate will give landlords an update on evictions and future landscape for UK landlords.

There will also be expert tax advice, finance advice, investment opportunities, HMO advice, property training, everything to help you grow and retain your property portfolio.

Visitors will still be able to connect with their favourite brands and discuss their needs in online, easily browse the superb products and services on offer, watch seminars by leading industry experts, network and benefit from the depth of knowledge and experience the National Landlord Investment Show has to offer, but from the safety of their home or office.

We have Thousands of landlords, investors and property professionals hungry to hear about services and products and listen to seminars. We’ve already seen 1000’s of landlords register for our live events and have no doubt they will be equally eager to engage online.

Show Founder Tracey Hanbury shared her view: ‘It’s been a challenging year for the events industry, but this a hugely exciting opportunity for us at the Landlord Investment Show. We have exhibitors galore with superb products and services, and an audience hungry to engage post the Covid-19 vacuum. With the property market remaining buoyant, and government incentives to buy, there’s no time like now to get involved’.

We are also delighted to announce our Main Sponsors include Nova Financial Group, LOFT, MFS, HMO On Steroids, Less Tax 4 Landlords and Property Master Academy and in addition our Co Sponsors Mortgages for Business and Acuity Professional.

Paul Mahoney Managing Director & Founder of Nova Financial Group quotes:
“We’ve worked with the National Landlord Investment Show for over five years and all of their events have resulted in business for us. We have scaled up on our involvement over the years due to the success they have delivered for us. We are looking forward to a slightly different approach this year in light of COVID – 19 and are proud to announce that we are main sponsors of the 3 online super shows”

Ben Hall CEO of LOFT adds:
“LOFT are excited to be partnering with the National Landlord Investment Show for the seventh consecutive year, being part of over 75 shows & events. This year we are main sponsors for the first ever online super-shows allowing us to continue to support property professionals across the UK during this challenging year, helping to bring everyone together in the buy-to-let market”.

Leah Brunskill – Marketing Manager of MFS quotes:
“We usually attend the NLIS in person, but are really excited to be taking part in the online shows this time, which will reach an even wider audience, its’s clear from demand and the latest stats that just because we are still in a version of lockdown, it does not mean that waves are not being made across the buy-to-let market.
Between stamp duty, interest rate cut, and mortgages becoming significantly delayed, property investors need clarity more than ever. The National Landlord Investment shows have always delivered that, it’s just being done from home or the office now”.

David Smith – Economics Editor of The Sunday Times –
“We are all having to adapt to difficult circumstances and these online shows are a great way of doing so. I am sure that they will be excellent and I am very happy to be taking part in them”. I am looking forward to delivering my live seminars on “The outlook for the economy and the housing market at all 3 super shows”.
Meet an array of exhibitors and view 40+ delivered leading Industry Experts covering all aspects of buy-to-let including:
As always, entry is free, all you have to do is register. Learn more about the National Landlord Investment online Super Show by visiting our website

www.landlordinvestmentshow.co.uk/nationwide-super-show-3-nov

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REVEALED: Why rent controls have been an utter failure in Scotland

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Scottish Rent Pressure Zones (RPZs) have proved so ineffectual that no council has been able to meet the stringent tests giving them the ability to cap rents, according to new research.

Councils currently need to apply to the Scottish Government, proving that rents are rising too fast, that those rises are causing problems for tenants, and that they put pressure on the council to provide housing.

However, the Progressive Policy Research Group says it can take local authorities up to five years just to collate the evidence. “As a result, the pressure that the private rented sector puts on family finances, and the impact it has on child poverty rates, go unmitigated,” it says.

New proposals

It’s come up with new proposals for reforming the sector, suggesting that these zones should apply to individual properties instead of tenancies as a way to incentive landlords to upgrade their properties and to stop them significantly increasing rent when a tenancy ends.

The group says the current system can disincentivise tenants moving, and in worst case scenarios can encourage eviction.

The research group wants the government to devolve responsibility for RPZs to local government and suggests that the Scottish Landlord Register is upgraded to include:

• HMO licence,
• Confirmation of using an approved tenancy deposit scheme,
• Energy Performance Certificate,
• Details on lengths of tenancy and rent levels,
• Verification that all appropriate tax has been paid and deposit information.

It explains: “This upgraded register should become the central data resource of a significantly more powerful and resourced regulatory body, whose purpose will be to ensure that landlords are complying with the law, and to drive up standards in the PRS.”

The Scottish Government is currently consulting on the Fair Rents (Scotland) Bill which would cap rent rises at 1% above inflation and give renters protection against excessive or unfair rent increases.

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Making Airbnb hosts meet same rental regulations as traditional lets ‘will cost 17,000 jobs’

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Airbnb has joined a chorus of calls from Scotland’s short-lets sector urging the government to rethink hard-line plans to regulate its activities.

The hosting platform warns that these could jeopardise 17,000 jobs in the country and take almost £1 million a day out of the Scottish economy.

Holyrood is currently consulting on the plans which include a mandatory licensing scheme to ensure all short-term lets are safe and address issues faced by neighbours.

They would also give more power to local councils to manage pressures created by the sector and, if passed by Parliament, would take effect by April 2021.

Airbnb’s research shows how tourism related to the site boosts the Scottish economy by £677 million a year and supports more than 33,500 Scottish jobs.

It adds that the average Scottish family would need to pay more than £700 to meet the legal and technical requirements of sharing a spare room in their home under the Government’s proposals.

Licence

Before Scots could welcome guests into their homes, hosts would also need to pay for a licence and potentially pay for government mandated renovations such as replacing wooden floors with carpet or vinyl flooring. 

Airbnb director of public policy, Patrick Robinson (left), says: “It can’t be right that hosts need to rip up their floors and hire consultants before they can welcome a guest into their home for the night. We want to find a balanced approach and work with the government to regulate short-term lets while protecting livelihoods.” 

Airbnb wants short-term rentals to be regulated and suggests instead that there should be a national registration system with lighter rules for occasional hosts and more thorough conditions for commercial operators. 

The news comes after 38 prominent figures from the tourism sector wrote to Housing Minister Kevin Stewart, calling on him to delay the licensing plans amid the Covid-19 pandemic.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Making Airbnb hosts meet same rental regulations as traditional lets ‘will cost 17,000 jobs’ | LandlordZONE.

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Back to school? Landlord licensing in England is only a few years away, warns estate agency leader

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Landlords in England have been warned that they are only a few years off having to be fully registered and licenced as operators, a leading property industry figure has warned.

Mark Hayward, Chief Executive of trade association NAEA Propertymark (left) made the comments during a 45-minute webinar that updated his members about the looming Regulation of Property Agents (RoPA) legislation.

This will squeeze out rogue lettings and sales agents by requiring firms to be licenced to operate and for agents to attain compulsory minimum levels of qualification before they can do their jobs.

But Hayward also warned that the cross-sector industry Regulator, once established, is to be given the powers to include landlords within the scheme.

Property managers

He also said that as RoPA stands now, landlords who manage their own properties won’t have to be qualified or licenced even though agents who do the same job will, but that this area of landlord activity would also eventually be ‘professionalised’.

It will take up to three years to get the estate agency sector fully regulated, he said, and that only then this “vast piece of work to identify landlords and work out how they could be regulated” would begin.

Rent-to-rent regulation

Lastly, it was also revealed that ‘rent to rent’ operators – people or companies who landlords sub-let their properties to in return for a guaranteed income – would also be covered by RoPA.

This will be a major departure. Now, anyone can set themselves as a rent-to-rent operator including the many inexperienced people who are urged to do so by so-called ‘property investment guru’ courses.

In only a matter of years they will have to attain a Level 3 NVQ qualification to operate a rent-to-rent scheme, a qualification which would take up to 150 hours to complete and cost between £500 and £600.

Read the RoPA proposals in full.
More about Rent Smart Wales.

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