Shelter blames private rental sector for growing child homelessness

Shelter says there are nearly 139,000 children officially homeless and living in temporary accommodation – and it’s blaming the private rental sector, in part.

The campaigning charity, in a statement which also refers to its annual winter fundraising appeal, says the 139,000 figure is a record high and up 14 per…

Landlord Law Newsround #319

Landlord Law Newsround #319

Landlord Law Blog NewsroundWelcome to our weekly Newsround where we give you all the trending housing news, plus a little bit more.

Social Housing Ombudsman to take on PRS disputes

Government minister Jacob Young has confirmed that going forward, disputes between private landlords and tenants will be dealt with by the existing Social Housing Ombudsman Service.

Landlords will be required to join its service and pay a fee. Tenants will then be able to raise any complaint about their landlord to the PRS Ombudsman for free, if they are unhappy with the way in which their issue is being dealt with by their landlord.

This will mean that there will be two redress routes open to tenants, those who are managed via an agent can go to either the Property Redress Scheme or The Property Ombudsman, and the new service will mediate directly between the tenant and the landlord.

A spokesperson from the Department of Levelling Up, Housing and Communities says

 We intend for our Ombudsman Service to complement the existing housing redress landscape. This will ensure that tenants, regardless of whether they rent socially or privately, have high-quality, consistent access to redress where they have a legitimate complaint about their home.

This will significantly increase the Housing Ombudsman Service workload with some 4.6 million new tenants. It states that it will only deal with the more complicated cases and not low-level issues such as broken windows or leaky taps. Some other industry leaders disagree with this statement.

Jacob Young who is a junior minister within the Department for Levelling Up, Housing and Communities has also defended the government’s decision to reform the courts before they abolish section 21 saying that it is essential and not a delaying tactic.

Government denys court reforms is an intentional delay

Jacob Young has stated this week to a group of MPs scrutinising the Renters Reform Bill that they need to get the ‘system ready’ before they abolish system 21. He said

Court rules and systems need updating to reflect the new law; there is no way that this can be avoided. Furthermore, we have already fully committed to a digital system that will make the court process more efficient and fit for the modern age.

He further adds

We are also working to tackle concerns about bailiff delays, including by providing for automated payments for debtors. That will reduce the need for doorstep visits, so that bailiffs can prioritise possession enforcement.

Furthermore, he states that there are 2.4m landlords who have concerns over the court system and that the implementation would have to be phased. He pointed out that to ignore these concerns would be ‘unwise’.

You can read more here.

Older renters downsize and move to cheaper areas

According to a new BBC News report, Renters over 30 are moving to cheaper areas as rents increase and the supply of properties dwindles.

The report claims that almost half of all new tenancies in this age bracket who earn between £30,000 and £70,000 were for one or two-bed homes. This compares to 57% back in the 2020 lockdown period, where they were taking on three-bedroom homes.

Sandra Jones, managing director of Dataloft, says this is due to the severe shortage of homes that has now driven up rents. Their report shows that between the ages of 30 and 39 only one-fifth would move to a higher-priced area, while more than a quarter would move cheaper.

Greg Tsuman, president of ARLA Propertymark, says

Fundamentally, the problem is that landlords are exiting the market when demand for rental properties continues to rise.

Percentage rent increases keep rising

Rents have soared by more than a quarter since the start of Covid and continue to rise according to analysis by Savills, the estate and lettings agents. The average private rent will by 9.5% higher than in December 2022 by the end of this year with a further rise of 6% in 2024 which will be stretching the affordability area for many renters.

The demand for property has been blamed on demand outstripping supply along with the cost of borrowing, with 14 consecutive interest rate rises which has caused landlords to increase their rents. Competition is harsh with many tenants vying for just one property and willing to pay over the market rent for the property and some landlords even asking for a years rent upfront.

Emily Williams from Savills says

Competition for stock is tough, and tenants are having to bid upwards to secure a tenancy, supported – but only in part – by a strong growth in incomes, fuelling rents upwards in the short to medium term. It’s very difficult to see where an increase in rental supply will come from in the next couple of years.

Snippets

Tenant abandonment – what is it?
Landlords warm to tougher energy rules – but need more help
Rent rise next year forecast to be one of the highest ever
London borough HMO licensing scheme goes out to consultation
Landlords warned they must ensure property ads are accurate

Newsround will be back next week.

The post Landlord Law Newsround #319 appeared first on The Landlord Law Blog.

Landlord Law Blog Roundup for November

Landlord Law Blog Roundup for November

Here is a roundup of our blog posts for November.

Thursday 2nd November

Landlord Law Blog Roundup for October 2023

Our roundup of posts for October

Friday 3rd November

Landlord Law Newsround #315

Housing news and weekly updates

Monday 6th November

Urban Myth – it can’t be an HMO if all the tenants sign the same tenancy agreement 

know when you have an HMO or not

Wednesday 8th November

If the tenancy agreement ‘gifts’ white goods to the tenant, are they really his?

This was a question asked via my Blog Clinic from a tenant

Friday 10th November

Landlord Law Newsround #316

Our weekly Newsround

Pets and the ‘headlease’ problem

Be aware of potential issues with tenancies that have a ‘headlease’

Friday 17th November

Landlord Law Newsround #317

Housing news and other legal updates

Saturday 18th November

The continuing revolving door of housing ministers and problems in the department

How many housing ministers does it take?

Monday 20th November

What should a tenant do if he wants to leave at the end of the fixed term?

This was asked in my Blog Clinic this week from a tenant

Friday 24th November

Landlord Law Newsround #318

Our last Newsround for November

Sunday 26th November

What does this landlord need to do when allowing the tenancy to continue as periodic?

This was asked by a landlord via my Blog Clinic

Monday 27th November

Urban Myth – You have GOT to evict a tenant once the S21 notice expires

Read my Urban Myths series, this part answers the myths around S21 notices

Further Reading

Landlord Law News Blog

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Click here to get the weekly roundups sent direct to your email ‘in box’ every week – the easy way to keep up with what’s happening on the blog

The post Landlord Law Blog Roundup for November appeared first on The Landlord Law Blog.

Agency calls for Landlords Reform Bill to redress rental balance

Leaders Romans Group is calling for a Landlords Reform Bill to balance the challenges and apparent disincentives now deterring landlords from remaining in the rental sector. 

In a recent survey conducted by LRG, landlords called for a measure that ensures that they are not disproportionately penalised. This Bill would recognise landlords'…

Trading Standards reveal details of new Material Information requirements

Parts B and C of the process to improve material information disclosure in property listings are published today within comprehensive new guidance for sales and letting agents.

Representing the culmination of a programme of work led by the National Trading Standards Estate and Letting Agency Team (NTSELAT) alongside industry leaders and the…

Hundreds of objections to large Build To Rent development

Another large Build To Rent scheme is in the offing, this time in Devon’s capital city, Exeter.

Plans to build 246 BTR units and 188 co-living homes on the site of Haven Banks Retail Park near Exeter Quay have been recommended for approval by council officers – despite more than 350…

Controversial ex-Countrywide boss appointed to new post

Almost six years after her departure as chief executive of Countrywide, Alison Platt has been appointed to a new senior position.

She is to become the non-executive chair of the Hargreaves Lansdown wealth management consultancy.  

Platt joined Countrywide when it was the UK's largest agency but her tenure was extraordinarily tumultuous.

In…

Agent says second home clampdown is no answer to long-term shortage

The long-term shortage of rental accommodation is now addressed by a short-term clampdown on second homes and empty properties, a leading lettings agent insists. 

David Alexander, head of Scotland’s largest lettings agency DJ Alexander Ltd, says recent research by Admiral Home Insurance revealed that almost 7,000 homes in Edinburgh were empty…

Belvoir agents have access to private rental licensing data

Franchise giant Belvoir is the latest agency group to sign a deal with geospatial technology firm Kamma.

The partnership will offer all 340 offices access to Kamma’s 24/7 licence compliance services to help them keep up to date with new licensing regulations. 

Nearly 50 new schemes and consultations have launched throughout the…

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