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UK landlords and rental agents unrealistic about wear and tear, it is suggested
Landlords and agents in the UK are still pushing for rental homes to be in a better condition when a tenant leaves and often have unrealistic expectations, new research has found. Whilst the tenant has a duty of care to return the property in the same condition at the end of the tenancy as found at the start and listed on the inventory report with allowance for wear and tear, the law does not allow landlords to claim ‘new for old’ from the tenant’s deposit. Yet the Association of Independent Inventory Clerks (AIIC) has found that many agents and landlords are seemingly unaware of the ‘betterment’ principle which means that if an item was old at check-in, and after a two year tenancy there is some additional damage, the law will not allow a landlord to simply replace this item with a new one. Instead, some sort of compensation is allowable towards future development. The betterment principle applies to cleaning issues as well. If a carpet was badly stained at the time of check-in, a landlord can’t expect the tenant to pay for cleaning at the check-out, no matter how long the tenancy has been. ‘We have seen many cases where the landlord or letting agent has not bothered to read the check-in inventory, so when it comes to the check-out, they are unrealistic over issues, which they believe should be included in the check-out and charged to the tenant,’ said Pat Barber, chair of the AIIC. She gave as an example a case where the landlord demanded that the tenants pay for repainting several rooms following a one year tenancy. The check-in inventory clearly stated that the walls were already well marked and the few additional scuffs and rubs were clearly a normal wear and tear issue due to the length of the tenancy. ‘The key underlying problem is that landlords, agents and tenants have different expectations when it comes to fair wear and tear issues. Obviously, there is a distinct difference between fair wear and tear and actual damage. For example carpet tread will flatten over time where there has been foot traffic, but cigarette burns, stains or soiling will require a charge,’ explained Barber. ‘Normal wear and tear is a fact of life with rental properties, just as it would be at home. The best way to landlords and agents can ensure that the property’s condition is fully recorded, is by having a comprehensive inventory in place at the start of any new tenancy, and that a thorough check-in and check-out report is completed,’ she pointed out. ‘Members of the AIIC are experts in assessing fair wear and tear and have the knowledge and experience to take into account all factors, and make a reasonable judgement as to whether something is fair wear and tear or not,’ she added. Continue reading
Councils in England will help self builders find land, UK govt pledges
Anyone in England who wants to build their own home should be able to turn to their local council for help to find a suitable plot of land under new plans published by the UK’s housing and planning minister. Brandon Lewis unveiled the details of a new Right to Build plan which he said will make custom build a more realistic option for more people. This comes at the same time as a government supported Private Member’s Bill on plans for a Right to Build register is being taken forward through Parliament by the MP for South Norfolk Richard Bacon. Eleven areas are already pioneering the Right to Build scheme, developing a register of prospective custom builders in the area and matching them up to shovel ready sites. The consultation seeks views from local planning authorities, the custom build sector and prospective custom builders about what they would like to see from the Right to Build. ‘Custom build should not be the preserve of a select few but a realistic opportunity for anyone who wants to build their own home and that’s why we’re supporting this Bill. Eleven areas are already leading the way on the Right to Build. And our plans for this Right across England will help more people turn their ambitions into reality and clear the way for a new generation of custom builders,’ said Lewis. He pointed out that it is just one of a range of measures to help aspiring home owners, and to get Britain building, adding that house building levels are at their highest since 2007 and rising. ‘House building is at the heart of the government’s long term economic plan, including supporting people to design and build their own homes which can often be at a lower cost than buying an existing property,’ Lewis explained. ‘This will not be a free for all and those looking to build will still need to go through the normal planning application process,’ he added. Other measures include a £150 million investment fund to support delivery of up to 10,000 serviced plots, making custom builders exempt from paying the community infrastructure levy and scaling back section 106 tariffs. The government also introduced a £30 million Custom Build Homes Fund in October 2012, which has made available repayable finance for larger multi-unit projects and grant funding for community custom builders. Continue reading
Private rental prices in Britain up by 1% year on year, latest index shows
Private rental prices paid by tenants in Great Britain rose by 1% in the 12 months to September 2014, the latest figures from the Office of National Statistics show. A regional breakdown of the figures show that rental prices grew by 1% in England, by 1.4% in Scotland and by 0.2% in Wales. Since January 2014, the annual rate of change in Wales has fallen below that of England and the Great Britain average. The annual growth rate in Scotland continues to be higher than both England and Wales. Rental prices increased in all the English regions over the year to September 2014, with rental prices increasing the most in London with growth of 1.5%. Private rental prices in England show three distinct periods: rental price increases from January 2006 until November 2009, rental price decreases from December 2009 to November 2010, and increasing rental prices from December 2010 onwards. Of these three periods, 2008 showed the largest rental price increases. When London is excluded, England shows a similar pattern but with slower rental price increases from around January 2011. Rental prices excluding London grew by 0.8% in the same period. The ONS said that the difference is due to the higher inflation in rental prices experienced in London when compared to the rest of the country and its large weight in the Great Britain index. The large weight that London has in the overall index reflects its high average rental prices and its large volume of private rented property. The Index of Private Housing Rental Prices (IPHRP) measures the change in price of renting residential property from private landlords and is currently an experimental index. The index is published as a series of price indices covering Great Britain, its constituent countries and the English regions. IPHRP measures the change in price tenants face when renting residential property from private landlords, thereby allowing a comparison between the prices tenants are charged in the current month as opposed to the same month in the previous year. The index does not measure the change in newly advertised rental prices only, but reflects price changes for all private rental properties. Continue reading
