Year: 2020

An increasing number of over-60s are now turning to the private rental sector – but, like other demographic sectors, they face obstacles affording the initial deposit. That’s the claim of new tenant deposit replacement scheme Ome, which has assessed the cost required to secure a rental property for tenants aged 60 or over.

The tenant deposit replacement scheme claims that with the average rental deposit currently setting tenants back £1,139, it can be “a tough ask” to accumulate such a large sum of money in order to secure a rental property.

For the average male, this cost equates to almost half a month’s wages (47 per cent) climbing to 69 per cent for the average female.

Specifically for those aged 60 and above the deposit costs 68 per cent of the average net salary, falling marginally to 62 per cent for males but climbing to 76 per cent for females.

“Those in the youngest age groups tend to be on the lowest wages and as a result, have to pay out more of their monthly wage on a deposit, but more often than not they have a support network of family that can help them start out on their rental journey and contribute to some of the costs” notes Ome co-founder Matthew Hooker.

“However, this isn’t always the case for those 60 and above who may be on a lower wage and don’t have the option to borrow from friends or family.”

Blog Post from Letting Agent Today

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Growth in the number of short holiday lets across the country is a symptom of skewed policy that favours holiday homes over long-term properties to rent.

A new report published today by ARLA Propertymark suggests that nearly half a million properties could be left unavailable for longer-term rent as more landlords exit the market and in favour of short-term lettings.

The RLA argues this is in large part because the tax system favours holiday homes over the provision of long-term homes for private rent.

Whilst the government has almost completed the process of restricting mortgage interest relief for landlords to the basic rate of income tax, this measure does not apply to furnished holiday lets.

Inconsistent

David Smith, policy director for the RLA, said: “Today’s report highlights how inconsistent the government’s approach to the rental market now is.

“On the one hand the Ministry of Housing wants to encourage more landlords to offer properties to tenants on a long-term basis.

“On the other hand, the Treasury has a tax system which makes renting out holiday homes more appealing at a time when demand for homes to rent is outstripping supply.

“What we need is a tax system that supports and encourages the majority of hardworking landlords doing a good job to provide the long-term, quality rental accommodation tenants desperately need. We call on the Chancellor to do this in his forthcoming budget.”

Written by Sally Walmsley

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According to a business insurance firm 26% of landlords have every intention of selling at least one or more and in many cases leaving the sector this year due to BTL Tax Restrictions.

The firm undertook a survey with 800 investors and found that because of the ever increasing BTL tax restrictions coupled with the uncertain economic situation, around 82% of landlords have no plans to buy any new properties throughout 2020.

A paltry 13%stated that they would indeed buy at least one more property this year.

The major reasons why landlords will be selling properties are the punitive tax increases and changes, ever changing government legislations constantly dumped onto the private rented sector and the banning of admin/tenant fees.

The other reasons for selling up from the survey include increasing rental costs – 10%, turning their investments into cash – 9%, the fluctuating economic situation – 5%, and the slowing down of house price growth – 4%.

The survey also uncovered that around a third of investors said that they had experienced a lower rental yield in 2019, which undoubtedly will lead to further property sales within the sector.

27% of landlords predict that they will have to face a reduction in rental yields throughout the year with one in five expecting of around a 5% fall, whereas 6% are forecast a drop in rental yield between 5 and 10%.

Just 2% of landlords believe that the reduction in rental yield will reach between 10 and 15%.

CEO of the business insurance firm, Bea Montoya, said: “Tax increases imposed by the government are proving counter-productive for landlords, while ongoing political and economic uncertainty hasn’t been providing landlords with the confidence they need to stay in the market.

“Any tenants should be made aware of plans to sell as early as possible, and given reassurance their tenancy still stands. When it comes to selling, landlords need to understand any tax implications involved, such as capital gains tax. If the property is sold for more than it was paid for, there will be a capital gains tax liability.”

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The DWP (Department for Work and Pensions) has recently updated its published guides to help landlords if their tenants are or about to become Universal Credit recipients.

An industry body is demanding the government to fast track its proposed special housing court after publishing data Its findings more than suggests that London courts are simply unable to cope with the numbers of repossession cases.

It is coming up to nearly a year since the government set up its consultation on the introduction of a specialist housing court, which if auctioned will hopefully reduce the time in the ever increasing delays to resolve disputes and legal repossessions.

The industry body is demanding that the government gets on with it after having received Freedom of Information details. The report states the average time it takes a landlord to legally repossess their properties last year was 30 weeks, whereas in 2018 it was 23.

The body warns the government that the time for the eviction process (for legal reasons) will rapidly increase when and if it abolishes Section 21, as courts will be flooded with repossession cases for anti-social behaviour and rental arrears.

The body’s policy manager, said: “If landlords feel that they might have to wait forever to regain possession of their property where they have good reason, such as tenants committing anti-social behaviour or failing to pay their rent, increasing numbers are going to feel it is not worth the risk of letting the property out in the first place. This will just add to the already growing shortage of investment in rented housing which is badly needed to meet a rising demand.

“We were delighted when the government consulted on its proposal for a housing court a year ago but nothing has happened since. It needs to get on and get it set up for the benefit of landlords and tenants alike.”

However the Law Society is not backing the introduction of the housing court, as it said: “The case for a housing court has not been properly put and further evidence is needed as to why improvements within the current system will not suffice,’ said the Society. ‘Some private landlords do not understand the complexities of their case and are often reluctant to pay for legal advice. Such advice would ensure they understand the defences and counter-claims available to tenants, as well as the built-in safeguards within the legal process. However, without this knowledge, landlords often complain about perceived ‘delays’.”

In February the think tank Justice will be publishing its report on resolving housing disputes after having carried out surveys of the current procedures and taking a ‘fresh look’ at the system.

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According to a sales and lettings agent, tenants’ percentage of income spent to rent homes has rocketed by as much as 72% since the dawn of the new Millennium twenty years ago.

The firm’s latest research found that in 2000 the average monthly rent in England was around 28.7 % of the monthly income. As expected London was the highest with 41.1% of income taken up by rent, followed by the South East at 31.2% and the South West with 29.4%.

Since twenty years ago the percentage of income that is needed to rent homes has risen by 16.8% throughout England to its present 45.5%.

Of course the capital ‘leads the way’ with an apparent 74.8% of the average monthly take home pay to cover the rent, a massive rise of 33.7% in the twenty years.

East of England is the second highest increase over the last two decades of 18.7%, with the South East at 18.6% making the region the second largest income to rent ratio at 49.8%.

In 2000, the East Midlands was the lowest region for an income to rent ratio with just 24.5% of average income being spent on rent, however toady it is the North East which has the lowest income to rent ratio of 32% with only a 7.4% increase since twenty years ago.

Director of the sales and lettings agent, Marc von Grundherr, said: “There’s been plenty of positive changes to the rental market in the last 20 years with better codes of practice and improvements through technology allowing for a fairer, more transparent process for both landlords and tenants.

“Unfortunately, the one thing this can’t address is the huge demand for rental properties and the resulting increase in the cost of renting as a result and with wage growth failing to keep pace, the proportion of our earnings required to cover rent has spiked notably since the turn of the millennium.”

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Home ownership is increasingly out of reach for British consumers, who say the market has become expensive and inaccessible and that saving for a new home is now not their top financial priority.

According to a survey by Dutch bank ING some 79 per cent of Britons agree it is increasingly difficult for first-time buyers to get a foot on the property ladder, although 71 per cent acknowledge that home ownership better than to rent from a financial perspective.

While 43 per cent expect house prices to increase further in the coming year and 58 per cent say the housing market is on the ‘wrong track’, the substantial majority of consumers who have never owned a house say they are prioritising at least one other goal, such as raising a family, paying off education debt, living in a convenient location or funding hobbies or travelling – any or all of these over saving for a house.

Buying a house remains an important life goal for most people in the survey.

Of those currently renting and who have never owned a house, just eight per cent say they never want to.

Of those who rent and have never owned, 39 per cent say they don’t expect to be able to buy. Those who do expect to own a house in the future appear to accept this will likely come later in life.

A quarter of 25 to 34-year olds anticipate having to wait until they are older than 35 before buying. Just nine per cent of non owners anticipate buying before the age of 30.

For the third year running, the percentage who say the housing market is heading in the wrong direction has increased – this year it’s 58 per cent compared to 50 per cent in 2017.

A lack of affordable housing locally and nationally were the most commonly cited reasons.

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The Tenants Reform Bill worries many in the private rental sector but the government says there is still no date for the legislation.

The Tenants Reform Bill was formally announced in the Queen’s Speech before Christmas and will contain:

– abolishing section 21 of the Housing Act 1988, a measure the government describes as “improving security for tenants in the rental sector and empowering them to challenge poor property standards without fear of being evicted as a result”;

– strengthening the rights of landlords who need to gain possession of their property through the courts, via a reformed section 8 and an improved court process;

– introducing a new lifetime deposit to ease the burden when tenants choose to move.

But the Ministry of Housing, Communities and Local Government says the Bill will only be introduced to Parliament “when time allows” – with no specific deadline set.

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Private sector renters are enjoying greater security in their homes than at any time over the last decade according to new official data.

The Government’s recently published English Housing Survey for 2018-19 revealed that the average length that private sector renters lived in their current rental property was 4.4 years, up from 4.1 years in 2017-18. This is the highest average length of time tenants were staying in their current homes over the last decade.

With growing numbers of families with children now reliant on the sector for a home, the figures show that the market is responding by ensuring tenants remain in properties for longer periods of time, enabling them to establish roots in a community.

Private renters are enjoying greater security in their homes than at any time over the last decade according to new official data.

The Government’s recently published English Housing Survey for 2018-19 revealed that the average length that a private-sector tenant lived in their current rental property was 4.4 years, up from 4.1 years in 2017-18. This is the highest average length of time tenants were staying in their current homes over the last decade.

With growing numbers of families with children now reliant on the sector for a home, the figures show that the market is responding by ensuring tenants remain in properties for longer periods of time, enabling them to establish roots in a community.

Blog Post from Property Reporter

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Research reveals that 36% of British households don’t have carbon monoxide detectors installed, despite these life-saving devices being simple and inexpensive to install.

36% households in the UK do not have carbon monoxide detectors, according to a poll conducted by reichelt elektronik, an online electrical retailer, and of those 9% did not know what a carbon monoxide detector is and why they would need one, while 52% of the people without one said they know what they are but see no need for one. And yet, according to stats from the Office for National Statistics, around 50 people a year die from carbon monoxide poisoning, most of them in their own homes.

The problem is that carbon monoxide is incredibly hard to detect. It’s known as the ‘silent killer’ with good reason, but that description only covers one of its features, as it’s also odourless, colourless and tasteless. All fossil-fuel appliances emit CO, so if you have a gas boiler, an open fire, gas stove or have a petrol or diesel car, you’re potentially at risk and should have a quality CO alarm.

It’s likely that the enigmatic nature of this gas accounts for the relatively low level of public knowledge of the risk. Unlike fire, CO won’t destroy your home and your possessions – events that make a highly visual impact.

Symptoms of carbon monoxide poisoning

Accurate diagnosis of CO is a nightmare, as the symptoms are so similar to other far more common ailments. Victims may feel shivery, have headaches, and be generally run down. Although these symptoms are similar to flu, CO poisoning will not result in a rise in body temperature.

Nausea, vomiting and dizziness are other symptoms, which can be confused with gastroenteritis or food poisoning. Most of us will feel some of these symptoms at some time or other (and probably ignore them), so it’s understandable why CO symptoms may be ignored or misdiagnosed: not least as most relatively-mild sufferers will start to feel better once they are out and about. A breath of fresh air really is the antidote in this case.

Anyone who is feeling under the weather to such an extent that they visit a doctor’s surgery could be told to go home and wrap-up warm. If you think about it, this is the worst thing to do; by shutting all the windows and pumping up the heating the affects of CO poisoning will be accelerated.

And, if the worst happens, some health professionals may reasonably conclude that death was as a result of natural causes or existing medical conditions. This is because of the way CO affects the body. It binds with haemogloblin, an element of blood that would otherwise carry oxygen around us. In short, it deprives the brain, heart and other vital organs of the life-source we need.

However, with swift treatment the effects of mild CO poisoning can be reversed. Victims are given 100% oxygen via a mask until the level of carboxyhaemoglobin in the blood falls to less than 10%. The level of CO in the body is established via a blood test.

How to detect monoxide gas

CO is almost undetectable unless you have a decent detector in place. But it is possible to spy some tell-tale signs that dangerous levels of carbon monoxide may be in the atmosphere. Alarm bells should ring if you spy soot or yellowy-brown stains on or around fuel appliances.

Excessive condensation in rooms where appliances are installed is another indicator that all is not right. If you have a gas cooker, small yellow or orange-coloured flames instead of vibrant blue ones may also hint at a problem. A pilot light that frequently blows out is a further notice of possible dangerous levels of CO.

If you spot any of these signs, take immediate action to limit the potential risk of CO poisoning by opening windows and doors and by calling the National Gas Emergency Service (NGES) on 0800 111 999.

The NGES advises consumers to ventilate the area by opening doors and windows and call the emergency line. You should never leave cars and motorbikes running in closed environments, such as garages, as these emit large quantities of CO.

CO detectors

There is a vast array of carbon monoxide detectors on the market, although these can be categorised as either spot detectors or audible detectors.

Spot indicators are fixed to or near to appliances and change colour if significant levels of CO are present. They are not recommended as they do not produce an audible alarm, so unless you regularly check them (and even if you do, they won’t help when you are asleep) they are of limited value.

Audible alarms look similar to typical smoke detectors. They are battery-operated, either being fitted with a tamper-proof battery, or utilising AA batteries. These devices are available from DIY sheds, supermarkets and online. A cross section of European Standard EN 50291 audible alarms is presented in the following table. All emit an audible alarm of 75DB to 85DB.

Even with an audible alarm fitted, it’s advisable to have gas boilers and working chimneys, flues and vents serviced on a regular basis as there are believed to be around 50 deaths from carbon monoxide poisoning each year in the UK, according to data from the Office for National Statistics.

Where to position carbon monoxide alarms

CO alarms will come with guidelines from the manufacturer, but generally you are advised to position CO alarms about 1-3 meters away from the source of carbon monoxide. You should put one on every storey of your house as carbon monoxide can build up on a single level without spreading to the rest of the house.

Unlike smoke alarms, CO alarms should ideally not be positioned on the ceiling. This is because heated air rising to the top of the room can prevent carbon monoxide from rising. Instead, place your CO alarm high on the wall or on a shelf about 15cm below the ceiling.

You should avoid your alarm being too close to sources of heat or humidity such as showers, radiators and fireplaces, and away from windows where the fresh air might prevent the CO being picked up.

Landlords and their legal obligations

As of October 2015 if you rent out your property you are legally required to install carbon monoxide detectors in all rooms with a solid fuel appliances such as log burners and coal fires. Landlords are required to make sure the alarm is working on the day the tenancy begins.

Although there are as yet no legal requirements to install a carbon monoxide alarm without a solid fuel appliance present in the property it is still a good idea to provide one in rooms with boilers and gas ovens.

Find out more about the CO and smoke alarm requirements for landlords from the Residential Landlords Association.

Carbon monoxide alarms

The following is s a cross-section of the type of alarms available on the UK market that comply with European Standard EN 50291.

[table width =”100%” style =”” responsive =”false”]
[table_head]
[th_column]Model[/th_column]
[th_column]Battery type[/th_column]
[th_column]Warranty[/th_column]
[th_column]Other[/th_column]
[th_column]Price[/th_column]
[/table_head]
[table_body]
[table_row]
[row_column]Aico Ei208[/row_column]
[row_column]Sealed tamper-proof[/row_column]
[row_column]5 years[/row_column]
[row_column]Read reports on your tablet or phone with the AudioLINK app.[/row_column]
[row_column]£35.34[/row_column]
[/table_row]
[table_row]
[row_column]Aico Ei261ENRC[/row_column]
[row_column]Mains[/row_column]
[row_column]5 years[/row_column]
[row_column]Read reports on your tablet or phone with the AudioLINK app.[/row_column]
[row_column]£57.99[/row_column]
[/table_row]
[table_row]
[row_column]FireAngel CO-9B [/row_column]
[row_column]AA[/row_column]
[row_column]7 years[/row_column]
[row_column][/row_column]
[row_column]£20.49[/row_column]
[/table_row]
[table_row]
[row_column]FireAngel CO-9D[/row_column]
[row_column]Sealed tamper-proof[/row_column]
[row_column]7 years[/row_column]
[row_column]Digital room thermometer[/row_column]
[row_column]£29.99[/row_column]
[/table_row]
[table_row]
[row_column]FireAngel CO-9X[/row_column]
[row_column]Sealed tamper-proof[/row_column]
[row_column]7 years[/row_column]
[row_column]Automatic self-check facility[/row_column]
[row_column]£23.99[/row_column]
[/table_row]
[table_row]
[row_column]Honeywell H450EN[/row_column]
[row_column]Sealed tamper-proof[/row_column]
[row_column]6 years[/row_column]
[row_column]7 year life[/row_column]
[row_column]£20.00[/row_column]
[/table_row]
[table_row]
[row_column]Kidde 7CO[/row_column]
[row_column]AA[/row_column]
[row_column]10 years[/row_column]
[row_column]For boats, homes and caravans[/row_column]
[row_column]£25.26[/row_column]
[/table_row]
[table_row]
[row_column]Kidde 10SCO[/row_column]
[row_column]9V[/row_column]
[row_column]10 years[/row_column]
[row_column]Combined smoke/CO detector.[/row_column]
[row_column]£18.98[/row_column]
[/table_row]
[table_row]
[/table_body]
[/table]

Further advice

The Health and Safety Executive has advice on carbon monoxide.
The NHS has a raft of information and a video explaining the symptoms and dangers of CO.
If you believe that an appliance is leaking CO contact the National Gas Emergency Service on 0800 111 999.
Carbon Monoxide – Be Alarmed is a national campaign website focusing on all matters CO.

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