industry news
Bleak outlook for jobs in
social housing A survey by a leading audit firm has revealed that almost one in five social housing providers are planning job cuts in the coming year and only three in five are planning salary increases. The findings from RSM’s annual ‘Health of
the Sector’ survey shed new light on how the sector is responding to financial pressures and the housing policy reforms announced in recent Budgets. Despite improving conditions in the wider
UK economy, 58 per cent of social housing providers said they feel they are operating in a recessionary environment with 89 per cent stating that they will be required to make further cost savings.
Cutbacks
Previously protected areas of spending now appear to be at greater risk. Tenant services, protected by many providers in previous years, are now becoming vulnerable, with 41 per cent of respondents saying they have made or plan to make spending cuts in this area, more than double 12 months ago. In total, 62 per cent of housing providers
in England said they expected more than five per cent of their housing stock to be affected by the new voluntary Right to Buy regime. However, fewer than half of respondents (44 per cent) expected each sold home to be replaced on a one for one basis, heightening fears that there will be an overall reduction in the social rented housing stock. The survey also provides some evidence of
a change in focus among providers away from developing homes for social rent in favour of low cost ownership and market rental homes.
Pessimism
In total, 55 per cent of respondents said they have or were considering developing homes for market rent, while 43 per cent said they have or were considering reducing plans for social rental homes. There was also a degree of pessimism
among respondents about the future of the sector with more than three quarters (76 per cent) saying that they feared there were more provider failures to come. Faced with the current policy and financial pressures, more than a quarter indicated that they would consider mergers or strategic alliances. Gary Moreton, RSM’s head of social
housing said “Last year, the sector received a series of shocks as the Government announced further reforms to welfare and housing policy. Faced with these challenges, the social housing sector appears to have been remarkably agile and willing to take the difficult operational decisions required to ensure future sustainability.”
Common breaches of responsibilities by private landlords
lack of knowledge and in the use of poorly worded agreements. As many as one in ten landlords have no
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formal tenancy agreement in place with their tenants and even when contracts are in place, many are not legally binding as the landlord has wrongly adapted the wording of earlier versions. New research from Direct Line for Business
has found a series of problems exist, many caused by landlords trying to save money by not using professional advice. Among the findings are:
• 10 per cent of landlords have no formal tenancy agreement in place with their tenants;
• Among landlords who do not use a letting agent, 58 per cent are using contracts they have adapted themselves and which may not be legally binding as they have not been checked by a lawyer;
• 13 per cent of landlords have experienced disputes arising from a tenants’ rental contract in the last two years;
• 9 per cent of landlords have not informed their tenants that their deposit is held in a Government-backed tenancy deposit protection scheme (TDP), despite this being a legal requirement; and
• 4 per cent of landlords have not taken any deposit from their tenants.
14 | HMM May 2016 |
www.housingmmonline.co.uk
rivate landlords could be storing up major disputes and problems in relations with their tenants through
Of the landlords who said they had used adapted tenancy agreements, 38 per cent said the forms used either came from old agent contracts or other landlords while 20 per cent said they used a template they found online. When it comes to rights and protection, 38
per cent of landlords in England said they have never heard of the Government’s document ‘How to rent: the checklist for renting in England,’ which explains the rights and responsibilities of landlords and tenants. Less than a third (29 per cent) of landlords have supplied or directed tenants to this guide. The research exposes the issue of where
contracts are in place, landlords may unwittingly be asking tenants to sign documents that are not legally compliant. Nick Breton, Head of Direct Line for Business
said: “Tenants and landlords need a contract in place to protect both their interests. Contracts, deposits and deposit protection all help to make clear what is expected from each party when renting a property, and which can help minimise disputes where possible. If an old contract is adapted it may not comply with new legislation or be relevant for the current market. Given the volume of disputes arising from tenancy agreements it’s important to get the contract seen by a legal professional before it’s signed.” Linked to the release of the research
findings, Direct Line for Business has launched a new legal documents service, which provides a range of legal documents including tenancy agreements and repossession notices.
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