Newbuild and detached homes boost Scottish property market

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The Scottish property market has seen a slight dip in average house prices over the last year, but newbuild and detached homes have bucked the trend and recorded positive growth, data reveals.

The findings from lettings and estate agents DJ Alexander show that from July 2022 to June 2023

View Full Article: Newbuild and detached homes boost Scottish property market

Landlords ‘sleepwalking into huge fines’ as just 15% sign up for city’s licencing

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Birmingham landlords who fail to sign up to the city’s new selective licensing scheme have been warned they’re sleepwalking into being hit with a big fine.

With only a few days before enforcement of the new scheme takes effect – the UK’s biggest, covering up to 50,000 properties across 25 wards, it’s believed that only 15% of landlords have so far applied.

The slow take-up has been blamed in part on several landlord and property Facebook groups where members have urged landlords not to bother.

Landlords Licensing & Defence says since the scheme is already in place there are no excuses for not having a licence; it will be a criminal offence if they have not completed an application by 4th September.

Housing enforcement and casework director, Des Taylor, warns: “There is no reasonable excuse for not making the application, no matter what you are waiting for or are lobbying the council. Any social media group that tells you something different should not be followed.”

Well meaning

Compliance expert Phil Turtle (pictured) tells LandlordZONE that the “advice” being given is by well-meaning non-experts, many of whom are landlords who don’t like the selective licensing scheme and want to try to scupper it.

The firm now wants to warn landlords of the danger they are sleepwalking into, based on extremely poor peer advice.

Says Turtle: “Each of them faces a fine of £5,000 to £15,000 based on what we see with other councils.

“Councils treat failure to licence as one of the most heinous crimes anyone can commit and although it is a criminal act with the penalty at level five on the criminal scale (unlimited fines) most councils instead issue civil penalty fines which they get to keep as a massive revenue stream.”

LandlordZONE has contacted Birmingham Council for an update on application numbers.

View Full Article: Landlords ‘sleepwalking into huge fines’ as just 15% sign up for city’s licencing

REVEALED: Is it worth upgrading rental properties to meet new EPC rules?

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Landlords updating their properties to meet imminent Energy Performance Certificate (EPC) changes could make more in lifetime energy savings than they pay out for green improvements – but a significant number might end up out of pocket.

Analysis by Propflo, a decarbonisation platform for lenders, predicts that those who need to spend an average of £4,001 will end up saving £7,691 over the life of technology such as solar panels which typically last 25 years.

But those forking out an average of £9,121 would only save £8,015.

Founder and CEO Luke Loveridge (pictured) tells LandlordZONE that it hasn’t included factors such as mortgage savings, tax relief or grants which would be more specific to each landlord.

“If you include these benefits for both the £5,000 to £7,499, and £7,500 to £10,000 bands, they will likely mean landlords won’t be materially out of pocket. If they just do the minimum retrofit for £10,000, then they just might be left out of pocket.”

Increased rents

Loveridge adds: “Tenants typically directly benefit from energy savings, so landlords may realise this value through increased rents and/or increased/defended property value instead.”

Propflo says that while a significant majority of privately rented properties below an EPC grade C would need to spend close to or at the £10,000 cap (over 80%), 2% of properties would only require an average expenditure of £311 to achieve compliance, while another 6.2% would require an investment of £1,514 per property.

The analysis also finds that 81% of properties within scope have at least one low-cost energy efficiency improvement recommendation, including energy-efficient lighting or loft insulation, while 0.2% of properties only require a single low-cost improvement to get a grade C rating.

This analysis comes as the deadline for meeting new MEES regulations – expected to be announced later this year – could be relaxed.

Read more about EPC regulations.

View Full Article: REVEALED: Is it worth upgrading rental properties to meet new EPC rules?

Landlord bans gather pace as second person booted off register this week

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A second landlord has been removed from the register in Scotland in a week after failing to do any repairs to her decrepit property.

Glasgow landlord Madiha Tariq ignored a condemned boiler at the house in Everard Drive (pictured), which was found in an “unacceptable” state after the tenant raised concerns.

It follows the removal of landlord Ashiq Rasul and is a sign of what’s to come in England when the Renters Reform Bill – bringing in a national landlord register – becomes law next year.

Understand the Renters Reform Bill.

Glasgow City Council’s licensing committee heard that an inspection of Tariq’s property in November 2018 found extensive signs of damp and mould on the walls, gutters in serious need of repair, and leaking radiators in poor condition, reports Scottish Housing News. Tariq also failed to provide basic gas and electrical safety certificates.

The tenant told inspectors she had signed a disclaimer letter but had continued to use the boiler as she had no other means of heating or hot water.

Tribunal

The case was taken to the housing and property chamber of the first-tier tribunal for Scotland which ruled in July 2019 that the landlord, who had five properties in the city, failed to comply with a repairing standard enforcement order.

It issued a rent relief order and said it had, “rarely been faced with such a flagrant disregard for the duties of a landlord and takes the most serious view of the situation”.

Councillor Alex Wilson (pictured), licensing committee chair, says: “The failure to provide gas certificates, carbon monoxide, legionella – these are all things that can lead to death, and certainly to injury. The fact that they haven’t provided any of these items timeously is of great concern to this committee.”

The case has also been referred to Police Scotland.

What is the Scottish landlords register?

View Full Article: Landlord bans gather pace as second person booted off register this week

Landlords urged to ignore social media ‘experts’ and sign up to selective licensing scheme

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Landlords who are in Birmingham’s new selective licensing scheme are being urged to ignore social media ‘experts’ who say they don’t need to apply for a licence.

Landlord Licensing & Defence says the advice could see the landlords who don’t apply being hit with a £30,000 fine.

View Full Article: Landlords urged to ignore social media ‘experts’ and sign up to selective licensing scheme

Landlords pull out of London’s temporary accommodation sector

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London’s boroughs are sounding the alarm over the escalating housing pressures after it was revealed that there has been a surge in landlords pulling their properties from being used temporarily by homeless households.

The crisis has reached ‘new extremes’

View Full Article: Landlords pull out of London’s temporary accommodation sector

House prices need to plummet by 19.3% to reach pre-pandemic levels

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British house prices would need to plummet by a staggering 19.3% to reach their pre-pandemic levels as fears rise over a cooling market, research suggests.

The findings from property purchasing specialist, House Buyer Bureau, show this decline is more substantial than the -12.9% contraction seen during the global financial crisis of 2008/09.

View Full Article: House prices need to plummet by 19.3% to reach pre-pandemic levels

Climate change will hugely increase demand for greener short lets, says expert

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A leading energy efficiency consultant has called for a transformation in the way landlords operate short-let holiday accommodation, saying this housing sector needs to reduce its carbon footprint urgently to address guest needs and increase bookings.

James Tanner, who runs his is own eponymous consultancy, tells LandlordZONE that  climate change is now beginning to impact people’s holiday choices with recent research showing 78% of travellers intend to stay in a sustainable property this year, a 10% increase from last year, that 76% want to be in nature and 50% want to walk to activities.

According to Sykes Holiday Cottages four of the top five  activities guests want is to walk, cycle, be in the countryside or by the coast.

And as global warming is continuing  to progress there will be an increase in demand for sustainable travel, he says.

“This summer’s litany of forest fires abroad in places like Greece, and other European countries; flooding in Asia and the US;  and the unusual weather we’ve had in the UK are making people more aware that their holiday and travel choices need to be greener,” he says.

Released

Tanner says global climate warming will only make this more important – and pressing – for the holiday accommodation sector as people seek to find properties that help offset rather than contribute to the problem of too much carbon being released into the atmosphere.

“Given that around 20% of emissions globally and in the UK come from homes, the short lets sector can play an important role in reducing carbon emissions,” he adds.

Tanner is calling on short-let landlords to help guests by ensuring their properties meet the highest eco-friendly standards in terms of heating; offering sustainable travel options; reduced waste and recycling; the availability of locally-produced, low-carbon food; and ‘no carbon’ activities nearby such as walking.

Play its part

“This may all sound something that will be needed in the future, but as the weather is demonstrating, the challenges for the environment and those who live in it are becoming apparent now and the huge short-lets holiday accommodation sector needs to play its part,” he adds.

“The time for change is now – caring about sustainable travel and the environment will soon become something guests from all walks of life adopt as the signs of environmental change become more obvious.”

Read more: Ultimate guide to ecofriendly rental properties.

View Full Article: Climate change will hugely increase demand for greener short lets, says expert

Landlords leave temporary accommodation market as private rents soar

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An unintended consequence of the Government’s crackdown on the private rented sector has been revealed as councils across London report more landlords withdrawing from the temporary accommodation market for homeless households.

London Councils, which represents the 33 boroughs across the capital, says a lack of rented accommodation within the traditional rented market, and skyrocketing rents, are persuading many landlords to stop offering accommodation for homeless people and instead rent them out to long-term market-rate tenants.

This means councils, who rely in part on this kind of short-term privately-supplied accommodation, are now struggling even harder to house people waiting for long-term affordable accommodation, as they are required to under the law.

Its survey of all 33 boroughs found that 15 reported receiving a Notice to Quit (a legal notice requesting the return of a property) from landlords for 3,531 properties in use as temporary accommodation.

This is a 120% increase on the 1,601 notices received over the same period in 2021-22 and is equivalent to a loss of 6% of London’s total temporary accommodation stock.

Unmanageable

Darren Rodwell (pictured), London Councils’ Executive Member for Regeneration, Housing & Planning, says: “Nobody wants this happening, but boroughs face a complete lack of other options for keeping a roof over an increasing number of homeless families’ heads.

“The homelessness situation in London is becoming unmanageable.

“We need the government to treat this as the emergency it is and work with us in reversing the numbers relying on temporary accommodation.”

London Councils is calling on the Government to raise the Local Housing Allowance, which has been frozen since 2020; support councils to buy accommodation sold by private landlords; boost Homelessness Prevention Grant funding and increase Discretionary Housing Payments.

View Full Article: Landlords leave temporary accommodation market as private rents soar

Bristol reveals big expansion in landlord property licencing across city

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All Bristol landlords could soon have to licence small HMOs, while those in the Bishopston and Ashley Down, Cotham, and Easton wards are bracing themselves for a proposed selective licensing scheme.

The council has launched a consultation on plans to drive up standards as it reports that previous licensing schemes have proved a success.

The first discretionary scheme ran from 2013 to 2018 in the Stapleton Road area and licensed 1,207 properties. Of these, 396 properties had at least one serious hazard resolved, 845 required improvements to meet licensing conditions, and 10 landlords were prosecuted for 37 offences.

The Eastville and St George selective and additional licensing scheme ran from 2016 to 2021, issuing 3,316 licences. It reports that 3,019 properties were improved to meet licensing standards, and 675 had fire safety improvements made. An additional HMO licensing scheme is now in place in 12 central Bristol wards, which will run until July 2024, alongside Horfield, Bedminster and Brislington West, which were added last April. 

Protections

Councillor Tom Renhard (pictured), cabinet member for housing delivery and homes, says it will write to landlords and tenants during a consultation on the additional and selective schemes that closes on 7th November.

He promises landlords will be offered advice and guidance on the improvements required to ensure their properties comply with licensing conditions.

Renhard adds that those in private rented accommodation have lived for too long without adequate protections and very limited options to guarantee decent living standards.

“While we know that the majority of landlords offer good quality homes and have positive relationships with their tenants, these additional measures would allow us to take action where this is not the case,” he says.

The council has also been investigating the impact of rent regulation across the city.

Take part in the consultation.

View Full Article: Bristol reveals big expansion in landlord property licencing across city