industry news


Edward Lister appointed new chair of HCA


Sir Edward Lister is to be the new chair of the Homes and Communities Agency, which continues to have a key role in implementing Goverment targets for social housing and regulating the sector. His appointment was confirmed after he appeared before MPs at the Communities and Local Government Select Committee.


“A former leader of Wandsworth Council, more recently Sir Edward was the London mayor’s chief of staff and deputy mayor for policy and planning at City Hall. He will be supported by Julian Ashby, as chair of the body’s regulation committee”


He will be supported by Julian Ashby, as


chair of the body’s regulation committee. Ashby has had his term of office at the HCA extended by another 18 months to 2018. A former leader of Wandsworth Council,


more recently Sir Edward was the London mayor’s chief of staff and deputy mayor for policy and planning at City Hall. Clive Betts, chair of the CLG committee,


said: “The Homes and Communities Agency (HCA) has an important role to play in delivering the Government’s housing targets and regulating the social housing sector. “On the basis of the evidence presented


to us, we believe that Sir Edward has the necessary skills, knowledge and experience to undertake the role of chair and we wish him well in the post.”


Cost of renting one bed flats soars for under 30s


their take home wages in rent. Tenants under 30 are the hardest hit while


T


those living in the capital are having to pay almost 60% of monthly wages in rent, according to figures from property firm Countrywide. The average cost of a new tenancy for a one-


bedroom property hit £746 a month in May, taking up 48 per cent of the take-home pay of a worker aged under 30. In London, the average rent on a one-bed property was £1,133 in May, Countrywide said. Rising rents have outstripped the growth in


earnings to such an extent in the capital that since 2007 the proportion of take-home pay used to pay the rent has risen from 41 per cent to 57 per cent. Countrywide reports that increasing


numbers of young adults are responding to the higher costs by moving into house share arrangements. Since 2007 the proportion of one-person households in the private rented sector has decreased by 3 per cent, while four- and five-person households have risen. The figures are based on properties let


through Countrywide’s letting agents and income figures from the Office for National Statistics (ONS), adjusted for tax. They show


“The average cost of a new tenancy for a one bedroom property hit £746m a month in May, taking up 48 per cent of the take-home pay of a worker aged 30”


he cost of renting one-bed properties in the private sector has soared, with younger workers paying almost half of


that the lowest rents as a proportion of income are found in the east Midlands, where tenants are only spending a third of their take-home pay on rent.


Increases


Countrywide’s analysis of all new lettings shows landlords have increased prices by 2.9% since May 2015, with the average monthly rent for all types of property across Britain rising to £945. Across London, the average new rent was up by 0.3% year-on-year at £1,292. Tenancies coming up for renewal showed a


bigger jump in costs, with rents rising by 5.2% over the year, to an average of £907 a month. In Wales, Countrywide said landlords were charging 9.4% more than in May 2015, with rents at £661 a month. Higher demand for rented properties has


been driven by a number of factors including high house prices, demands for large deposits of up to 40% and harder eligibility tests for mortgages. Even when the housing market appears to


have cooled, there is no let-up in rising rents in the private sector. The most recent monthly report from the Royal Institution of Chartered Surveyors predicts that private rents will rise at a faster pace than house prices over the next five years. Meanwhile social landlords are having to reduce rents by 1% a year until 2020. Johnny Morris, research director at


Countrywide, said that rising incomes had softened the impact of increasing rents in most parts of the country, but in London affordability was being stretched. “Many tenants have adapted to rising prices


by either moving to cheaper areas, further from the centre, or sharing,” he said. “Stalling rental growth in the capital raises the question of whether London’s rents have reached their affordability limits for now.”


Uncertainty over electrical safety standards following late amendment to Housing & Planning Act


A late amendment to the Housing & Planning Act saw a new power introduced to impose electrical safety standards on properties in the private rented sector. However, that is almost the sum total of our


knowledge. The details of what the standards will actually cover will only become known once the regulations have been finalised. It is likely the regulations will not be agreed until 2017. The standards could cover any number of


things – the property’s fixed wiring, or the fixtures, fittings and appliances. They might


require regular testing and certification from qualified electricians, or members of an approved trade body. The type of premises covered could include


caravans and mobile homes, while the type of tenancy covered could include licences, as well as holiday lettings and lodger arrangements. How the standards will be checked, enforced


and regulated and who by, with what penalties at their disposal, could become contentious details which are argued over. It is understood the DCLG have set up a working group to draw up draft regulations,


with representatives drawn from across the private rented sector and electrical industry. Members of the working group include Residential Landlords Association policy director David Smith. Writing in a blog post on the RLA website,


Smith summed up the industry’s uncertainty as follows: “It is common to hear politicians talk about how our rental sector should be more like Germany where no electrical goods (even white goods) are provided to tenants at all. However, I am not sure this is the similarity they had in mind!”


www.housingmmonline.co.uk | HMM July 2016 | 15


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