RLA Fear Anti- Social Tenants Will Move to Private Residential Lettings

Following the Government’s announcement of tougher action against anti-social tenants in social housing, the country’s leading voice for private landlords has called for greater efforts to combat the problem in the private rented sector.

The Residential Landlords Association (RLA) has raised serious concerns that landlords find themselves unknowingly taking on tenants kicked out of social housing for anti-social behaviour. Private landlords have no control over tenant behaviour nor the means to check tenant records.

Speaking following the announcement, RLA Chairman, Alan Ward said:

“The RLA strongly supports efforts to combat anti-social behaviour by tenants who blight communities across the country.

“However, by addressing the behaviour of tenants in the social rented sector alone, such tenants will simply find themselves with no alternatives but to seek private rented accommodation. Data Protection laws make it difficult for landlords to properly reference the behaviour of new tenants.

“The Government is once again looking to the PRS to meet the UK’s housing needs. What landlords require is a reformed court system that enables a quicker, more effective response to tenants causing anti-social behaviour, without the current delays of up to 8 months to regain possession.

“Anti-social tenants affect both the private and social rented sector and the RLA is writing to Housing Minister, Grant Shapps MP, to outline its concerns and calling on the Government to work with the sector to combat anti-social behaviour in all its forms.”

RLA Demand Nuisance Tenant Measures For Private Residential Sector

Following the Government’s announcement of tougher action against anti-social tenants in social housing, the country’s leading voice for private landlords has called for greater efforts to combat the problem in the private rented sector.

The Residential Landlords Association (RLA) has raised serious concerns that landlords find themselves unknowingly taking on tenants kicked out of social housing for anti-social behaviour. Private landlords have no control over tenant behaviour nor the means to check tenant records.

Speaking following the announcement, RLA Chairman, Alan Ward said:

“The RLA strongly supports efforts to combat anti-social behaviour by tenants who blight communities across the country.

“However, by addressing the behaviour of tenants in the social rented sector alone, such tenants will simply find themselves with no alternatives but to seek private rented accommodation. Data Protection laws make it difficult for landlords to properly reference the behaviour of new tenants.

“The Government is once again looking to the PRS to meet the UK’s housing needs. What landlords require is a reformed court system that enables a quicker, more effective response to tenants causing anti-social behaviour, without the current delays of up to 8 months to regain possession.

“Anti-social tenants affect both the private and social rented sector and the RLA is writing to Housing Minister, Grant Shapps MP, to outline its concerns and calling on the Government to work with the sector to combat anti-social behaviour in all its forms.”

Residential Landlords Report Rise in Arrears

RLA News Service reports that residential landlords across much of the country are worried about the number of tenants falling into arrears, according to statistics and a poll released by Upad, a rental website. Upad found that while confidence among landlords was quite high, monthly rental arrears were among the top concerns for those in the buy-to-let sector.

Six out of ten landlords in Britain feel a higher level of confidence now than they did just one month ago, when this figure stood at just 54 percent. The key factor behind this significant increase in confidence is the strong demand for buy-to-let properties among tenants, including young professionals seeking to rent over the long term.

But confidence among landlords is also related to low interest rates on buy-to-let loans, as well as relatively low property prices in much of the country. Many of the landlords who indicated that their confidence boiled down to these two reasons may be inclined to expand their portfolios at a time when rates remain at near historic lows and property values are also stagnant.

James Davis serves as Upad’s chief executive officer and he noted that his company’s own experience in the buy-to-let sectors suggests that there is good reason for optimism among landlords. Davis suggested that Upad has seen an almost 200 percent rise in the volume of inquiries among tenants seeking assistance in their search for a flat or house to rent over the past six months. But arrears do pose a risk to landlords and Davis predicts that with high unemployment and government cuts, the number of tenants who will be unable to pay their rent on time may increase in the coming year.

Residential Landlords Confident Despite Arrears

RLA News Service reports that residential landlords across much of the country are worried about the number of tenants falling into arrears, according to statistics and a poll released by Upad, a rental website. Upad found that while confidence among landlords was quite high, monthly rental arrears were among the top concerns for those in the buy-to-let sector.

Six out of ten landlords in Britain feel a higher level of confidence now than they did just one month ago, when this figure stood at just 54 percent. The key factor behind this significant increase in confidence is the strong demand for buy-to-let properties among tenants, including young professionals seeking to rent over the long term.

But confidence among landlords is also related to low interest rates on buy-to-let loans, as well as relatively low property prices in much of the country. Many of the landlords who indicated that their confidence boiled down to these two reasons may be inclined to expand their portfolios at a time when rates remain at near historic lows and property values are also stagnant.

James Davis serves as Upad’s chief executive officer and he noted that his company’s own experience in the buy-to-let sectors suggests that there is good reason for optimism among landlords. Davis suggested that Upad has seen an almost 200 percent rise in the volume of inquiries among tenants seeking assistance in their search for a flat or house to rent over the past six months. But arrears do pose a risk to landlords and Davis predicts that with high unemployment and government cuts, the number of tenants who will be unable to pay their rent on time may increase in the coming year.

UK Letting; Record Demand for Residential Rentals

Demand for private sector residential rentals in Britain has not been this high at any point over the past eight years, according to statistics published by the Association of Residential Letting Agents. ARLA reported that letting agents in much of the country found major shortages in the supply of available properties, particularly as demand appears to keep rising.

Ian Potter, ARLA’s director of operations, noted that seven out of ten letting agents reported that potential homebuyers were turning to the private rental to meet their accommodation needs, as owning a home has become too heavy a financial burden for many young professionals and families.

A total of 81 percent of all letting agents in England’s south-east noted that demand for properties was significantly higher than the available supply of rentals. The supply was only slightly less tight in London, where 73% of agents noted that the number of prospective tenants exceeded the available pool of residential properties.

Both London and the south east, however, tended to exceed the national average, when it came to demand. Nationally, 67 percent of all letting agents in Britain found that demand was higher than supply in the buy-to-let sector.

Social Housing Cuts Could Impact on London Residential Landlords

The coalition government’s decision to cut back on social housing payments may impact private sector residential landlords, with some observers concerned that the change may lead to a larger number of tenants falling into arrears. The new rules will limit the maximum amount that tenants can receive in payments.

The landlords who may be the most heavily impacted by the housing allowance changes are those in London and England’s southeast. According to the Upad survey, nine out of ten landlords in the capital and southern cities believe that the housing allowance change will impact their business. The proportion in Scotland is 25% of all landlords, while a third in northern England expect to be effected by the change.

The vast majority of landlords will not decrease their rents, as a result of the changes to the LHA. In fact, only 12% indicated that they would be willing to consider a decrease.

Average Buy to Let Rent Rises

Landlords see continued rise in rents reports the RLA News Service

The average monthly rent in the residential buy-to-let sector now stands at £676, according to figures released by LSL Property Services. This rise is largely due to very high demand among tenants, particularly in the London area and in the southeast. The main reason for the large number of tenants and tight supply of properties is the continued dearth of both residential mortgages for first-time buyers, as well as buy-to-let products for landlords looking to expand their existing portfolios.

Further tightening the supply of rental properties in the buy-to-let sector was the fact that a growing number of temporary or accidental landlords have by now sold their properties.

Yet there are very significant differences in what £676 per month would get a tenant seeking to rent a home. In the Midlands, it may be possible to even find a semi-detached house, while one may have trouble finding even the smallest flat for this amount in Central London.

PriceWaterhouseCooper’s research suggests that house prices will increase each year by approximately 2% over the next decade and this may also serve as positive news for landlords. But specialists point out that the rate of increase may be lower in the next few years than the average annual rise of 4% per annum, measured through much of the nineties and until the end of 2007.

Higher number of approved buy-to-let mortgages

RLA news service reports that the number of buy-to-let mortgages increased over the course of the second quarter, according to statistics released by Britain’s Council of Mortgage Lenders (CML). The Council detected a 13% rise in the number of loans extended to landlords and buy-to-let investors, bringing the total number of approved mortgages in the private rental sector to 24,900, during the last quarter.

This compared to just 22,000 approved buy-to-let loans during the first three months of the year and it represents a 15% improvement over figures from late 2009. Michael Coogan, CML’s director, predicted that the buy-to-let market would likely remain strong over the coming months, especially as many Britons are still unable to purchase their first home, due to the lack of mortgage products.

Additionally, Coogan observed that some tenants who may wish to seek social housing will find that since demand is so high, such accommodation is extremely challenging to find. This means that first-time buyers locked out of the homeowner’s market due to a dearth of credit, as well as demand from lower income tenants will leave room for expansion in the supply of private rental properties.

Coogan anticipates that private sector landlords will make “a powerful contribution” when it comes to offering housing to Britons from a wide range of backgrounds and with diverse needs. While the number of buy-to-let mortgages is still far lower than they were when they peaked in 2007, they are now at levels last seen in late 2008, just after the start of the financial crisis.

RLA Welcome House Of Lords Support on Tax Issue

One of the thorniest issues in rented housing has brought together the UK’s private sector landlords and a group of House of Lords peers.

The Residential Landlords Association has now written to the peers – led by Baroness Gardner of Parkes – to welcome their support.

As the government launches a three-month consultation period on a proposal to change the tax rules for furnished holiday lettings, the peers have challenged the government’s treatment of properties that are let to holidaymakers – which currently attract tax benefits different from normal residential properties.

They are calling for residential lettings to be given the same treatment by a taxation system that does not currently recognise them as equal businesses.

The peers were told, in a House of Lords debate (July 26), that holiday lets attract more generous tax rules because they offer extra equipment and services in order to compete with hotels and guesthouses – and there were “no plans to change the tax or other arrangements for tenancies in the private rented sector.”

It was, said Baroness Gardner of Parkes, a “disappointing reply”.

She told Lord Sassoon, the Commercial Secretary to the Treasury: “if you have holiday lettings, you can roll over capital gains and therefore there is every encouragement to extend your business, whereas if you are a private residential landlord, you do not have that.

“Furnished holiday accommodation can only be let to anyone for a maximum of 31 days. Surely there is a desperate need for long-term residential accommodation in this country.”

Alan Ward chairman of the Residential Landlords Association, added: “We have long argued that, with 40 per cent of the private rented sector built before 1919, these properties cannot afford to be allowed to decline.

“Better tax allowances for improvements, and improved energy efficiency are essential – but roll-over tax relief on the sale of one property, for investment in another, would help to provide more economical, affordable homes to rent.”

Video Inventories Protect Landlord Losses

Shocking new figures from The Video Inventory Agency (TVIA) have shown that poorly prepared inventories are costing the residential property market millions every year in lost claims. reports the RLA.

Since the introduction of the Tenancy Deposit Protection Scheme (TDPS) in 2007, the onus has been firmly with the landlord to prove their case. However as a result of improperly prepared inventories and lack of proper evidence, landlords now have less than a 1 in 10 chance of winning in the event of a deposit dispute.

Video inventories are the method preferred by the organisations that operate the Tenancy Deposit Schemes and they are recognised as being the most accurate way of conducting an inventory.