LETTINGSnews
legislaTiOn
The PRS – good news!
The Government has given its formal backing to a backbench bill aimed at giving tenants
greater protection when their landlords face repossession action. Currently, if a landlord doesn’t have a buy-to-let mortgage or ‘consent to let’, tenants are often unable to discuss their situation with those taking repossession action as the lender does not know they are there and the court is unable to take account of their circumstances. These tenants can then find themselves with little or no time to find a new place to live. The Mortgage Repossessions
(Protection of Tenants etc) Bill, tabled by backbench MP Dr Brian Iddon (pictured above), aims to change this. It will allow judges to delay repossession by up to two months, giving tenants time to find a new home. Housing Minister John Healey
said: “I am determined that help is available for tenants who may have little or no notice that the place they call home is at risk. “That’s why the Government is backing Brian Iddon’s Bill, which will ensure that judges have the power to stop tenants from being thrown out onto the street and instead offer them breathing space to find somewhere to live.”
bUY TO leT
Landlords investing
One in 10 landlords plan to purchase investment property, but are hampered by
a lack of mortgage finance. Paragon Mortgages’ Trends research reveals that 10 per cent of landlords planned to expand their portfolio in the first three months of 2010. Nearly two thirds of those
surveyed said that they would purchase a terraced property, followed by semi-detached houses (25 per cent), flats (20 per cent) and detached property (10 per cent). However, mortgage finance looks likely to remain a serious issue in 2010.
44 MARCH 2010 PROPERTYdrum
John Heron, Paragon
Mortgages’ MD, says, ‘It is encouraging that landlords are still active in the market and are looking to expand their portfolios. With tenant demand at such strong levels and soft house prices presenting bargains, it is easy to see why. But investors continue to be frustrated by a lack of choice in the buy-to-let mortgage market, which is dominated by just two lenders. Landlords have told us that it was more difficult to source mortgage finance in the fourth quarter and we see nothing to suggest that the situation will improve quickly.’
‘Judges will have the power to stop tenants from being thrown out onto the street.’
and The bad news
The Government has ignored opposition from landlords and the National Union of Students (NUS) and gone ahead with plans to crack down on homes by three or more adults. Under the plans announced in February, landlords of Houses in Multiple Occupation (HMOs) will have to obtain planning permission giving councils the right to say no.
More worryingly, it will further
clog up the planning system further, jeopardising councils’ abilities to process applications. Housing Minister, John Healey (pictured left) confirmed he would be pressing ahead with measures that could allow councils to clear students out of residential areas. But immigrants, young professionals and others who rent HMOs will also be affected. British Property Federation (BPF)
chief executive Liz Peace said, “At precisely the time where the
government should be doing all it can to support housing and support students, it’s twisting the knife in the recovery of the housing market. This won’t just affect students however, it will hit key workers and other young or low paid people who benefit from being able to cheaply rent a shared home.” The plans have been universally derided as a ‘nimby’s charter’ and opposed by all landlords groups and the Conservatives. But even the government’s own review of the private rented sector – carried out by Sheffield University academic Julie Rugg, condemned the plans as an ‘extreme response’ which ‘local authorities are ill-equipped to handle’.”
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insURance
Value over cost
If the continuing struggle through recession is leading you to choose cheaper products and
services remember that cheaper is rarely better. Let Insurance Services, LIS, say that they help their clients with extra value in the level of training and support for all lettings and accounts staff. LIS believes that the fast way for agents to gain value for money with insurance is use companies that offer knowledgeable support by phone, in person or by in-house training where necessary. “Anyone buying insurance by price alone should remember the
old adage about knowing the cost of everything and the value of nothing,” warned Michael Portman, MD. “The cheapest may not provide the right levels of cover for a property, agent or landlord. Only fully supported staff can make the right judgement calls for the myriad of property types and lettings scenarios that occur.” The majority of the company’s
directors and senior staff have actively run, or been closely involved with, successful lettings or insurance businesses. In some instances both. “We understand the importance of personalising our services so that clients have the knowledge to recommend the right products to their clients.”
illegal Tenancies
Sub tenant scam grows
Landlord Action says it has seen a 15 per cent increase over the last year
in the number of overcrowding cases they are dealing with, with more in London than anywhere else. Paul Shamplina says, “The most common cases appear to be organised gangs looking for an easy money making scam. They take out a tenancy and then sublet to multiple occupants. The worst case was a three-bedroom, one-bathroom house in North London which was found to have had 53 occupants, all illegal immigrants. There were mattresses literally littering the floors from wall to wall in every available space. The sanitation facilities were stretched to say the least. “Another case was that
of a lady who had a lovely two-bedroom flat in Victoria. Her tenant paid six months up front but she later discovered that 18 sets of bunk beds had been put into her property and it was being used as a youth hostel. A website in China was offering students visiting London accommodation at £20 per night.”
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