LETTINGSnews
LEGAL
Possession cases on the rise
According to the Government’s quarterly court statistics in March 2012, there has been a further
increase of over five per cent in the annual number of possession cases in England and Wales, to 142,088, the highest since 2008. What is particularly significant is the number of landlords preferring to obtain possession without a money order. Under the accelerated procedure for shorthold tenancies, the number of claims is up by over 30 per cent following a similar increase from the previous year. In nearly a quarter of the courts in England and Wales the number of claims by landlords and agents which resulted in an order being made for possession has increased by 20 per cent on last year. These increases are being seen throughout the country with some substantial increases in south east and eastern areas; Chelmsford (65 per cent), Ilford (36 per cent) and Luton (56 per cent). The M4 corridor has also suffered with increases of 24 per cent in Reading and 27 per cent in Swindon. Michael Portman, MD of
LetRisks said, “In a recent survey we conducted amongst private landlords, we found that nonpayment, late or partial payment of rent is the biggest worry for them. With the continuing rise in possession cases, it is vital that landlords and agents deal with potential problems with tenants early, to prevent court action later on. “It is also wise for agents and landlords to ensure they have insurance cover for their legal costs, as a court cases can be expensive and cost up to £5,000 and beyond.” LetRisks was formed from the merger of PropertyRisks and Let Insurance Services, to offer specialist risk management and insurance solutions to the residential let property market, including tenant referencing services and specialist insurance for landlords and tenants.
www.letrisks.com
HOUSING BENEFIT Benefit cuts make letting unviable say NLA
A survey by the National Landlords Association (NLA) has found more than half
of landlords can no longer afford to rent to housing benefit tenants because of cuts to the allowance. The survey showed 53 per
cent of landlords believe the local housing allowance (LHA) cuts have made it unaffordable to rent to those on benefits.
Nearly half of landlords (46.9 per cent) believe tenants aged under 35 will be hit hardest by the changes and almost 69 per cent of landlords say they can’t see themselves
LETS WITH PETS Spot the dog
The boom in the rental market has led to a large number of former homeowners with pets looking for accommodation. Many prospective tenants find it difficult to find landlords that will accept pets in their properties. The result has been a rise in the number of ‘undeclared’ pets living in rented accommodation, with the landlord or agent, often none the wiser. According to the Association of Independent Inventory Clerks (AIIC), there are often tell-tale signs of pet damage to property and landlords and agents need to be vigilant about regularly checking their properties for signs of pets.
Many tenants will work hard to hide any signs of pets in advance of a visit from a landlord and
letting to LHA tenants in 2015. The LHA cuts have seen maximum rent benefit payments reduced to the 30th percentile of local average market rents, rather than the previous 50th percentile. The age at which a tenant on benefits qualifies for any more than a single room in a shared house has also been raised from 25 to 35, forcing many more people into shared accommodation. David Salusbury, Chairman, National Landlords Association, commented, “It’s concerning that so many landlords appear to be planning to withdraw from the
LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate.
“In view of the pressures on housing, the private-rented sector will inevitably play an increasingly important role in providing housing to LHA tenants, particularly those aged under 35, who aren’t able to access other housing. “It is vital that local authorities work with landlords to provide the support services needed to help this demographic, as many are forced to move into shared accommodation.”
damage over the years – some amounting to very expensive repairs. More recently, we have seen a trend of outside pets becoming inside pets – especially rabbits. They can create expensive
agent. So landlords and agents need to be vigilant in looking for evidence - the most obvious being pet hairs on sofas, chairs and on curtain linings, claw marks/ scratches on doors and door frames, table legs and kitchen cupboards; fluffing or thread-pulls on carpets, especially at door ways; and outside, dead patches of grass on the lawn. Pat Barber, Chair of the AIIC,
said, “We have seen all kinds of pet
damage to cables, doors and frames and furniture from chewing. Many tenants will go to great lengths to conceal a pet from an agent or landlord as they are well aware they are breaking the terms of the tenancy agreement.
“Our advice to landlords and agents is to be vigilant about checking the inside and outside of properties for pet damage.”
www.theaiic.co.uk
PROPERTYdrum JUNE 2012 53
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68