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Tenant survey reveals the secrets they keep from landlords
The most common secret that tenants in the UK don’t want revealed is making excuses to try and avoid paying the rent, followed by keeping pets without permission, a new survey has found. Some 63% said they have tried to avoid paying rent and 45% have pets without letting the landlord know while 45% have damaged walls by knocking nails into them, according to the report from online letting agent Property Let By Us. The research also reveals that nearly a quarter of tenants confessed that they have rarely, or never cleaned their oven, 18% haven’t mowed the lawn regularly, 11% have dumped rubbish at the front and in the garden and 6% have sublet a room. When it comes to expensive damage to property, 4% admit to burning holes in floor coverings and concealing them with mats. ‘Our research shows that large numbers of tenants have made excuses to avoid paying the rent, which is worrying. The latest industry figures show that tent arrears are on the rise again, up by 7.2% in 2014, an increase of 4,600 tenancies compared to the same quarter in 2013,’ said Jane Morris, the firm’s managing director. She pointed out that one way that landlords can ensure they protect themselves from arrears and potentially bad tenants, is by conducting thorough tenant reference checks. ‘These background checks on tenants are so important. Picking the right tenant can save a long, costly eviction process further down the line,’ said Morris. ‘Landlords need to be thorough in conducting background checks and reference gathering, including bank statements for the past three months, previous landlord references to check the tenant paid rent on time, credit checks, incorporating fraud indicators and employer references. It’s important to also check identity and proof of current address, ideally tax or insurance documents, and talk at length to a prospective tenant,’ she explained. She added that landlords should also make regular checks on their property during the tenancy, so they can spot any breaches. In addition, landlords should also check each rental property thoroughly for signs of common damage, which can often be missed at the end of the tenancy, potentially costing landlords hundreds of pounds. Continue reading
UK starter homes initiative could create infrastructure shortfall
UK Government plans to create 100,000 cut-price homes for first time buyers risks creating a shortfall in local infrastructure, according to the British Property Federation (BPF) has warned. In its response to a government consultation on its ‘Starter Homes’ initiative, the BPF said that exempting developers from providing necessary infrastructure could mean that other sites in the area will find themselves under additional pressure to cope with a resulting shortfall in amenities. While praising the government for its ambitious approach to increasing the supply of housing, the trade body said the overall effect of the proposals may hold back development in surrounding areas. The BPF suggested that there should perhaps be the option for developers to provide some of the necessary infrastructure in exceptional circumstances, over and above the contributions suggested for site-specific development mitigation. The initiative proposes to bring forward 100,000 homes for first time buyers. Developers will be encouraged to see the homes at a discounted rate in return for building on brownfield sites and being exempt from infrastructure requirements. ‘While the Starter Homes initiative is welcome and holds a lot of potential, the detail does need to be worked through more carefully if it is to work in practice,’ said Melanie Leech, chief executive of the British Property Federation. ‘Infrastructure is vital for places to succeed – not only transport infrastructure, but space for people to work and relax, and the right social infrastructure for a healthy society. Many brownfield sites are lacking in amenities, so we would urge government to act carefully to make sure that starter homes do not hamper the wider growth of their surrounding areas,’ she added. Meanwhile, the property industry has today backed Labour’s plans to consider designating large scale housing as national infrastructure. Labour’s draft remit for a new National Infrastructure Commission (NIC) sets out 10 national infrastructure goals. It includes making sure that the enabling infrastructure is in place to support rapid housing development and that housing investment is integrated with investment in transport and utilities. The British Property Federation has consistently lobbied government to include residential into the Nationally Significant Infrastructure Plan (NSIP) regime, repeatedly pointing out that the National Planning Policy Framework (NPPF) advocates mixed-use development, and that sustainable communities need to include a mix of both commercial and residential units. Including a provision for residential in the NSIP regime could help unlock significant amounts of much needed housing development. ‘If we are to deliver housing at scale at the same time as creating commercial hubs that will drive economic growth, we need to encourage the development of well connected, mixed use communities where people can both live and work. Including residential within the NSIP process would be a significant step forward in this respect, and we hope that whoever is in power after the next election takes this forward,’ said Leech. Continue reading
CML warns Scottish Govt that rent controls could have adverse effects
Proposals by the Scottish Government to introduce new rules for the private rented sector could have a negative impact on buy to let lending, according to the Council of Mortgage Lenders. It has sent a detailed response to a consultation document issued by the Scottish Government, and while it recognises that some of the proposals will benefit the sector, others are likely to have a detrimental effect. In particular the CML is concerned about rent controls. In its reply it says that rent levels in Scotland are complex picture and while some areas such as Aberdeen and Edinburgh may have seen above average increases in rent levels these are very much as a result of demand exceeding supply. It points out that these areas are also seeing above average house price increases for the same reason and the long term solution has to be to increase the supply of housing in areas where this is an under supply. ‘We believe that the introduction of rent control is likely to dampen appetite amongst institutional investors to invest in the sector, will impact adversely on the availability of buy to let mortgages, will result in higher rents being set at the outset to compensate for lower rent increases during the rental term and could impact on quality if a rental yield cannot be achieved to allow continued investment in the property,’ the CML says. ‘Overall we believe the introduction of any form of rent control is likely to reduce investment in the sector thus reducing the supply which is badly needed to meet housing need. Currently we do not believe there is any need for the Scottish Government to take any action as there is no evidence base which would justify it doing so,’ it adds. The CML explains that while there are a number of models which could be selected in terms of rent controls, any such model would have to be an effective, transparent and a fair way of increasing rents so that it was attractive to both landlords and tenants. ‘A careful balance would need to be struck between landlords’ expectations over future rental yields and the expectation of tenants,’ it adds. The CML document welcomes the development of a model tenancy agreement and modernised grounds for possession. ‘However we believe that a number of the proposals contained in the paper are likely to have the unintended consequences of both reducing investment in the sector and the supply of private rented sector housing,’ it points out. These include the removal of the no-fault ground for re-gaining possession, the removal of the ability to continue tenancies on a month to month basis at the end of their term and potential controls over rents. ‘We believe that landlords need to have confidence in their ability to end a tenancy when they need to do so otherwise this may discourage future investment in the sector. Existing arrangements provide flexibility for both landlords and tenants…. Continue reading
