Build to Rent is the REAL key to rental reform says portal boss

admin    Uncategorized     agents

A summer of government chaos has led to several questions being left unanswered, particularly for the property industry.

When Michael Gove unveiled the Levelling Up White Paper, setting out a plan to transform the UK by “spreading opportunity and prosperity” to all parts of it, it was made clear that the rental market must reform. 

Experts believe that had Gove remained, his focus would have turned to the Build to Rent (BTR) sector and the benefits that it offered.

This would have included a spotlight on the role of institutional investment or professionally managed renting, and how this could form central pillars of the rental reform White Paper and the need for more high-quality rental homes. 

Dedicated Minister

Love to Rent, the first and only digital marketing platform for BTR, has been calling for some time for a dedicated Minister for Renting to address some of the problems in the private rented sector.

The industry at large believes a dedicated minister is needed to support the households which are private rentals and to encourage and play a part in the growing BTR sector, which can improve the lives of millions in the future.

Michael Gove has been vocal about the need for reform in the rental sector and has highlighted areas of improvement such as the need for more quality rental homes, better customer service, more responsible landlords and to lessen the environmental impact.

These are the same objectives that are core to the Build to Rent sector and which are carried out with each new development.

Read more: What does BTR mean for BTL?

It is our hope that the new housing minister, Greg Clark, will ensure that the thousands of people renting will get the protection they deserve.” 

It is not just Gove who recognised this need for change. Surging demand has led to local authorities favouring the Build to Rent sector with many creating their own Build to Rent planning policy to speed up delivery. 

Anne-Marie Brown, the Founder and CEO of Love to Rent

View Full Article: Build to Rent is the REAL key to rental reform says portal boss

What can a tenant’s deposit be used for?

admin    Uncategorized     agents

Hello everyone, I have had a housing benefit tenant, with the rent paid by Universal Credit, since April 2021 and the tenancy ends on 31 October 2022.

The rent for April and May was paid on time by Southwark council but I was only notified by the tenant at the end of June 2022 that the UC rent payment is in arrears

View Full Article: What can a tenant’s deposit be used for?

Do landlords need guarantors for all tenants?

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Hello everyone, In these difficult economic times, firms are regularly going bust and creating financial problems for their employees, and the SE (self employed) are just as vulnerable.

Would it not make sense to have guarantors for all tenants?

View Full Article: Do landlords need guarantors for all tenants?

Unacceptable tenants – do I need to supply a reference?

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Hello everyone, We had tenants for 4 years living in our 5 bed house next door.

We got on very well and we were quite relaxed with them.

Over time however, I came to realise that they were moving in more rodents in cages into bedrooms.

View Full Article: Unacceptable tenants – do I need to supply a reference?

Shelter’s warning after landlord repossessions rise

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The number of landlord possession actions in England for all court stages has increased compared to the same quarter of last year, the Ministry of Justice has revealed.

In the latest data, they have compared April to June of this year

View Full Article: Shelter’s warning after landlord repossessions rise

Where UK property investors are bulk buying to boost their portfolios

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British investors are spending an average of £1.2 million to quickly bolster their property investments by buying full portfolios rather than single properties, research reveals.

According to specialist property lending experts, Octane Capital, the North East is currently providing the best value for money.

View Full Article: Where UK property investors are bulk buying to boost their portfolios

Can you help with research on new tenant referencing tools?

admin    Uncategorized     agents

The University of York and the University of Bristol are undertaking work on new digital risk profiling tools in housing. Digital automated products that undertake tenant referencing are part of a new digital landscape for landlords and agents that automate parts of the tenant selection and tenancy and property management processes.

View Full Article: Can you help with research on new tenant referencing tools?

Shaving Foam Is Dead!

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Those of you with long memories will recall the talks I gave 5 to 10 years ago about my ‘shaving foam technique’. It got me hated by the #leaseholdscandal keyboard warriors, who saw it as encouraging developers to fleece leaseholders.

View Full Article: Shaving Foam Is Dead!

HMOs moving upmarket as more professionals embrace ‘shared living’

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HMO landlords report that more professional tenants seeking better facilities are helping move the sector ‘up the value chain’, a new report suggests.

Lender Paragon says these prospective tenants now expect en suite bathrooms, larger rooms, high-speed broadband and quality furnishings.

HMO landlords identify a flight to quality as a trend characterising the past year, with 48% saying they’d seen growing demand for better quality HMOs and 45% saying demand from young professionals was up over the past year.
Just under a quarter, 23%, of landlords also said HMOs were appealing to older, affluent tenants.

The data reflects the difficulties of getting on the property ladder for even relatively well-off tenants, and may help change the sector’s reputation for low-quality, basic accommodation that appeals solely to the economically disadvantaged.

Of the landlords canvassed by Paragon, just over a third said tenants were asking for office facilities to enable home working.

Strong demand

“We saw strong growth in demand from landlords to acquire HMOs during the pandemic,” says its MD of Mortgages Richard Rowntree.

“This may reflect the wider shortage in rental property with tenants opting for a room in a shared home because one or two-bedroom properties are in short supply.

“Tenants also like the flexibility and social nature of HMOs, particularly if they are renting with friends.”

The research also revealed why the HMO sector is booming. Nearly half of HMO landlords said they offer better rental yields than other residential rental properties.

And some 40% said HMOs offered better financial protection from voids, while 53% said there was no material difference in capital gain between single units and HMOs, making income the deciding factor.

Who are the new HMO tenants?

Nearly half, 46%, of tenants fell into the young single bracket, with 47% students and 41% white collar, clerical or professional workers. A quarter of tenants were manual workers, with 15% represented by older singles. Smaller groups included Universal Credit Claimants (9%), families with children (4%) and migrant workers (4%).

Read more: What’s the difference between an HMO and a bedsit?

View Full Article: HMOs moving upmarket as more professionals embrace ‘shared living’

NEW: ‘Grim’ evictions data shows cost-of-living crisis already hitting poorer tenants

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Shelter has jumped on the most recent government repossessions data which reveals that bailiff warrants rose by 39% between and April and June compared to the same period last year.

It says these figures are proof that the cost of living crisis is beginning to bite at the budget end of the private rental market and has claimed that the total number of eviction proceedings is now back at pre-pandemic levels, before the eviction ban took effect. 

But experts warn that the figures should be looked at in context. Repossession levels are low compared to the four million PRS households in England and just 3,405 bailiff warrants were executed during a three-month period, which is significantly below the high-point of the 1990s.

Also, despite claims to the contrary, LandlordZONE’s analysis of the figures indicates repossession levels remain below pre-pandemic activity.

But Shelter is keen to suggest that an evictions tsunami is already enveloping poorer tenants as the economy cools, and justify its call for Ministers to reverse the housing benefit freeze so it reflects real housing costs. 

The Ministry of Justice figures suggest this tsunami has not yet hit the PRS although, given the cost of living crisis has only just begun, it’s probably just around the corner.

Polly Neate (pictured), Chief Executive of Shelter, says: “Today’s figures paint a grim picture of households across England unable to keep their heads above water as the cost-of-living crisis bites.

“People who don’t leave their home before the bailiff comes are the ones who have run out of options and have nowhere else to go. 

“Whoever becomes the next Prime Minister needs to get a grip and put ending the housing emergency at the top of their to-do list.”  

Financial difficulty

Tim Frome (pictured), Associate Director at Hamilton Fraser, says: “From running the Property Redress Scheme, mydeposits and Landlord Action we are seeing more and more examples of tenants getting into financial difficulty and the knock on effect this can have on their tenancy.

“Shelter’s request for the government to unfreeze housing benefit could provide short term respite and we would recommend tenants raise any concerns they have with their landlords as quickly as possible.

“We have found early and transparent discussion is the best way to find solutions to keep tenancies going.

“As we saw all during the pandemic and since, landlords do not want to lose good tenants so will in most circumstances work with their tenants to find suitable solutions.”

Lewis Shaw, founder of Mansfield-based Shaw Financial Services: “Now that the Government moratorium on repossessions is over, it’s unsurprising that we’ve seen a considerable rebound, albeit still at lower levels than pre-Covid.

“However, with the cost of living crisis looming over us, it’s odds on that these figures will continue to rise as people’s disposable income is stretched to breaking point.”

Read more about Shelter.

View Full Article: NEW: ‘Grim’ evictions data shows cost-of-living crisis already hitting poorer tenants