Contact us

Tag: Landlords

Evictions Ban Extended in England

Posted on by prateek

UPDATE: On the 14th February, just a week before the revised deadline mentioned in the blog below, Robert Jenrick MP announced a further extension to the evictions ban – until 31st March 2021. All other details in the below post remain accurate at time of writing.

The government has announced a further extension to the ban on bailiff-enforced evictions for private renters in England. The previous restrictions were due to end on Monday the 11th of January, following a month-long ban over the Christmas period. The new extension will be until the 21st of February 2021 and reviewed regularly, meaning that there could yet be another extension.

There are exemptions to the regulations, which include:

  • Illegal occupation
  • Anti-social behaviour
  • Where a property is unoccupied following the death of a tenant
  • Extreme rent arrears (equivalent to nine months’ rent, excluding any arrears accrued since the 23rd of March)

Claims for possession can still progress through the courts, however a large backlog of claims built up during the Covid-enforced court closure last year. This means that landlords making new possessions claims may face a lengthy wait for their claim to be heard. However, eviction notices will not be enacted by bailiffs until after the evictions ban has been lifted on the 21st of February at the earliest.

Confused?

Even without all of the temporary legislation that has been introduced over the last year, the private rental market is becoming more regulated than ever before. A previous blog revealed that landlords are now required to comply with 156 different laws over the course of a tenancy; it has never been more important for your tenancy to be managed by a knowledgeable, professional and regulated agency.

For guidance on all aspects of tenancy management, or if you are considering letting your property in Bath, contact us on 01225 445777 or info@localhost.

How Many Legal Obligations Do Landlords Have?

Posted on by prateek

Do you know how many different laws a landlord must comply with?

A recent study by the Residential Landlords Association has revealed the number of different laws that create an obligation on landlords in the private rental sector.

Back in 2010, this figure stood at 118, but has since shot up by a staggering 32% to 156.

With many regulations carrying financial or even criminal penalties if a landlord is found to be in breach of them, this is a stark reminder of how difficult it can be for private landlords to keep up with a sector that is becoming increasingly regulated.

With this in mind, it is perhaps unsurprising that Lord Best’s Regulation of Property Agents working group recommended to the government the wholesale regulation of all lettings agents. These measures, which are expected to be implemented in the next couple of years, would require all staff – from the director to the apprentice – to obtain industry qualifications, and for the company to belong to a regulatory body.

At a time when anybody, regardless of their experience or knowledge, can decide to open a lettings agency, thorough regulation seems sensible.

With 156 separate laws to comply with, tenancy management requires in-depth and up to date industry expertise.

Reside already chooses to be regulated through our membership of ARLA Propertymark, the industry’s main regulatory body, and a quarter of our staff are ARLA-qualified. Our clients can be confident in the knowledge that their tenancies are fully compliant, and in safe hands.

November Lockdown: What You Need To Know

Posted on by prateek

Updated: 4th November 2020

We have received many enquiries over the last few days from landlords and tenants wondering exactly how they will be affected by the second national lockdown in England, which passed through Parliament today.

The Health Protection (Coronavirus, Restrictions) (England) (No. 4) Regulations 2020 specifically states that activities relating to our sector are allowed to continue.

Property viewings are allowed, as long as we have the permission of the incumbent tenant to do so and they are not isolating. We are taking careful precautions when visiting any property; all parties present are required to wear face coverings and gloves, and any surfaces touched are wiped down before we leave.

Home moves are permitted, so any tenants due to move in or out of a property during November can still go ahead, unless they have been told to isolate. We are required to comply with strict safety guidelines, and the measures we have implemented go beyond what is asked of us; all moves during the lockdown will be completely contactless so tenants will not need to meet with anyone from Reside in person.

Contractors are allowed to attend properties to carry out repairs during the lockdown, as long as they observe safety guidelines. We are asking tenants to report maintaince issues to us during November, as long as they are comfortable with having an engineer visit their property, so that we can arrange repairs where possible, rather than build up a backlog of issues to be addressed after lockdown.

Our office will stay open. Although we are heading into a national lockdown, we will still be here should you need us. Our office will be staffed during our standard opening hours, but you should telephone, email or arrange a Zoom meeting should you need to speak with us. Please do not visit our office in person during the lockdown, unless it is essential to do so.

Whilst we will be permitted to carry out the vast majority of our work, we must take extra safety precautions, all of which have been carefully planned to reduce risk to all parties.

We expect to receive more detailed guidance from government after the vote in Parliament, and we shall let you know if anything changes. In the meantime, if you would like more regular updates, these can be found on our social media channels or by contacting our office directly.

New Bath Apartments Offer Premier City Centre Living

Posted on by prateek

Space Available in Recently Completed John Street Development

Space is now available at a prime location in Bath city centre, offering the conveniences of modern living nestled within the splendour of Georgian architecture.

Kingsgate Apartments, 7 John Street, a development by Longacre, contains six apartments, a mixture of one and two bed. The new homes sit in the heart of Bath, between the prestigious Queen Square and bustling Milsom Street.

Longacre, renowned for its sensitive, high quality developments, is well versed in creating stunning modern apartments throughout Bath.

From Fitzroy House on Great Pulteney Street, to Milsom Apartments on Milsom Street, the company has a growing reputation for creating excellent living spaces in stunning locations.

Kingsgate Apartments are no exception. This secluded development nestled within the city’s back streets, filled with independent businesses, quirky cafes, traditional pubs and popular restaurants.

Alongside the expected conveniences of modern living, the development also benefits from lift access and superfast broadband. At a time when more people are discovering the benefits of working from home, this is a fantastic opportunity for young professionals, entrepreneurs or retirees seeking a level walk to all amenities.

Available through Reside, high levels of interest are expected in the remaining apartments. Prices start from £1,050 pcm.

For more information, view our available properties or call 01225 445777.

COVID-19 Update: Back To Work

Posted on by prateek

The New Normal

On Wednesday 13th of May, the government removed restrictions on residential lettings and issued strict guidelines, specifying how we can return to work. Safety remains paramount and we have had to radically adapt our methods to ensure that our staff and our customers are safe. The peak of the epidemic may have passed but the virus is still a very real threat and we have a clear duty of care towards everyone we engage with.

From Monday the 18th of May, our office will be staffed, however it will not be open to the general public for safety reasons. We have a self-contained space adjacent to our office (pictured), which is COVID-Safe and can be used for meetings by prior arrangement, if you need to see us in person. Even so, it would be safest for everyone if you were to contact us via email or phone.

We are now able to respond to non-urgent repairs, however many trades have not yet returned to work, and many are finding it difficult to source parts and materials. As a result, there may be a delay in some issues being resolved.

Like many others, we have adapted our processes and procedures during the lockdown period, making use of video technologies and remote working.

Although we are now permitted to return to work and visit properties, many of our clients will continue to act with caution and may prefer to meet with us remotely. If you would like to discuss letting your property, please contact us to arrange a full market appraisal via video call, or in person.

 

General Election 2019

Posted on by prateek

WHAT IT MEANS FOR THE PRIVATE RENTAL SECTOR

Heated debates over Brexit and the future of the NHS may have dominated headlines in the run-up to this year’s snap General Election, but when voters go to the polls on 12 December they will also have their say on a broad spectrum of policies which will plot the direction of the United Kingdom for the foreseeable future. Flagship housing policies have been announced by all of the main parties, each of which would mean significant changes for the private rental sector. Change is coming for landlords and tenants alike, regardless of who has the Downing Street keys come the New Year.

Armed with a strong brew and a highlighter, we trawled the manifestos to bring you a summary of the main partys’ plans for the sector.

The Conservative Party

Before an election had even been called, the Conservatives outlined their intention to abolish Section 21, or ‘no-fault’ evictions; their manifesto follows through on this promise. It is expected that Section 21 of the Housing Act will be replaced by a reworked version of Section 8, which would allow landlords to take back possession of their property if they had a valid reason, for example a breach of contract or to sell. The government sold this as a fairer solution for both tenants and landlords by promising greater security to tenants, and a simpler, faster eviction process for landlords with a genuine reason for seeking possession.

We will bring in a Better Deal for Renters, including abolishing ‘no fault’ evictions and only requiring one ‘lifetime’ deposit which moves with the tenant.

The Tories’ manifesto also plans to introduce a ‘lifetime’ deposit which moves with the tenant from property to property, also known as tenant deposit passports. In practice, this will allow a tenant to port their existing security deposit to their next tenancy; it is not yet known how deposit deductions or tenancy overlaps will work. A working group formed of the various deposit protection schemes had been due to report back to the government in the autumn, but the election has forced the Conservatives’ hand.

The only other reference to the sector in the Tory manifesto is an allusion to a policy introduced in 2015, protecting tenants from ‘revenge evictions’. We can only assume that legislation and enforcement of this issue will be tightened to give tenants greater protection against unscrupulous and ill-informed landlords.

The Labour Party

Jeremy Corbyn’s manifesto says that the UK’s 11 million tenants are ‘at the sharp end of the housing crisis’, and promises urgent action to protect private renters. Plans for open-ended tenancies will mean an end to no-fault evictions, echoing the Conservatives’ intentions to scrap Section 21, whilst rent increases would be capped at inflation. Labour would also give local authorities powers to introduce rent caps, should rents locally be deemed excessive against the national average.

We will take urgent action to protect private renters through rent controls, open-ended tenancies, and new, binding minimum standards.

An annual property ‘MOT’ would replace current landlord safety requirements, with hefty fines, landlord licensing and renters’ unions in place to hold sub-standard homes and rogue landlords to account. One of the party’s more radical policies is the introduction of national licensing for landlords.

Labour would abolish the Conservatives’ contentious Right to Rent policy, which in March 2019 was found to be in contravention of human rights law. This would remove the burden on a landlord to check the immigration status of their tenant before and during their tenancy.

The Liberal Democrats

Jo Swinson’s most eye-catching policy for the private rental sector is the introduction of a Help to Rent scheme, which would provide government-backed deposit loans to first-time renters under the age of 30. This has drawn criticism from some who believe the government should be supporting the younger generation into home ownership; however, Swinson maintains that increasing numbers of young people require state support in order to break into the rental market.

To reform the private rental sector, we will help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.

The Liberal Democrats complete the triumvirate of major parties who have pledged greater security to tenants in the form of longer-term tenancies. Whilst they have not explicitly pledged in their manifesto to remove Section 21, the party voted in favour of doing so at their Bournemouth conference last September. They would also introduce a cap on annual rent increases, linked to inflation.

The Lib Dems’ final flagship rental policy is the mandatory licensing of all private landlords, in order to improve enforcement of current regulations.

What does it all mean?

Regardless of your political inclinations, landlords should accept that changes will be made to the sector after the 12th of December, but behind the dramatic headlines are policies which will have little impact on most conscientious landlords.

Section 21 evictions are going to be abolished, regardless of who holds the keys to Number 10, but landlords should find succour in the fact that reforms to Section 8, if done correctly, may actually simplify the eviction process for landlords with a legitimate reason to seek possession of their property.

Proposed rent controls will restrict annual rent increases to inflation, however most standard tenancy agreements already cite RPI as the bellwether by which to gauge rent reviews.

All three parties are seeking to make life more difficult for ‘rogue landlords’, their message being that dutiful landlords with a keen awareness of their obligations should have nothing to fear. Proposed landlord licensing or tightening of legislation is intended to clamp down on those landlords with little care or knowledge of the law.

Whilst it is not included in any manifestos, it is still widely expected that all letting agents will be required to comply with the recommendations of the RoPA Report, which proposed mandatory qualifications and licensing for all professional agents; something which Reside already complies with by virtue of our ARLA Propertymark membership.

With changes to the sector undoubtedly coming soon, and strict enforcement of housing legislation being proposed, there has never been a better time for landlords to employ a qualified, knowledgeable and regulated letting agency.

If you are a landlord with property to rent in Bath, please don’t hesitate to contact us – we would love to help.

The General Election & The Private Rented Sector

Posted on by prateek

When the United Kingdom goes to the ballot box on the 7th of May, the electorate will cast their votes with a host of prominent issues in mind, but how will your choice of political party impact on Tenants and Landlords in England?

The key parties’ manifestos don’t make for the most thrilling reading, so we made a strong pot of coffee and scrutinised them for you.Conservatives

The Conservative Party‘s manifesto actually makes no explicit reference to the private rented sector, but focuses intently on helping more people onto the housing ladder by extending the Help to Buy scheme. Their Help to Buy ISA will aid renters trying to save up for a deposit, and they aim to build 200,000 ‘Starter Homes’ exclusively aimed at first-time buyers under 40.

As far as the lettings industry goes, the Conservatives are taking an ‘if it ain’t broke, don’t fix it’ approach. Over the past five years, the coalition has made minor adjustments to legislation to make letting agents’ fees more transparent and to increase living standards and security within privately rented properties, and they seem to feel that this has left the industry in a good position.

Labour Party 3

In this area, the Labour Party has taken a drastically different approach to their rivals. Ed Miliband is proposing a shake-up to the industry which will involve a ban on ‘unfair letting agent fees [which] will save renters over £600’. The Labour manifesto does not stipulate what constitutes ‘unfair’, but it is not clear whether this will be the blanket ban on fees that some had expected, such as the one implemented in Scotland in 2012.

Other Labour initiatives include legislating to make three-year tenancies the norm, and imposing a ceiling on ‘excessive rent rises’. As with the above policy, ‘excessive’ will presumably not be defined until after the election, but it is bound to be linked to inflation rates. Finally, Labour has pledged to ‘drive standards up’ by introducing a national register of private landlords, doubtless designed to weed out ‘rogue’ Landlords.Lib Dems

The Liberal Democrats‘ manifesto covers similar ground to that of Labour, in that it proposes standard ‘multi-year’ tenancies with rent increases linked to inflation. They also moot a ban on letting agent fees, although this would not be implemented until 2017 and would be on the condition that fees have not dropped to an ‘affordable level by the end of 2016’ following transparency requirements brought in by the coalition.

Nick Clegg has also pledged to introduce a new initiative called ‘Help to Rent’. With other parties placing sole emphasis on helping first-time buyers onto the property ladder, the Liberal Democrats would also aim to assist those struggling to save a deposit for a rented property. This would be aimed at first-time renters under 30, and would take the form of a government-backed tenancy deposit loan.

UKIP

UKIP‘s manifesto is another that focuses solely on home ownership and does not set out any major changes for Tenants or Landlords. They wish to build more affordable housing aimed at first-time buyers, and aim to bring some of England’s ‘279,000 privately-owned long-term empty homes’ back into use through increasing taxation on properties that remain empty for more than 2 years.Green

The Green Party manifesto usurps Labour’s proposals and sets out its own plans for what would be a highly regulated private rented sector. Natalie Bennett’s party would introduce a ‘living rent’ tenancy which would include five-year fixed tenancy agreements, as well as ‘smart rent control’ that caps annual rent increases to the Consumer Price Index.

Local not-for-profit letting agencies would be set up, and fees for tenants would be abolished across all agencies. A mandatory license for Landlords would be established, and alterations would be made to make buy-to-let mortgages less attractive, including removing tax incentives such as mortgage interest relief.

In Summary…

The Conservatives and UKIP seem content with the current condition of the lettings industry, and do not address private renters or landlords in their manifestos. The Liberal Democrats and Labour both outline alterations to the sector, with both parties agreeing on rent control, standard multi-year tenancies and regulation of agency fees. The most radical policies are those of the Green Party, whose plans would drastically change how renting works for tenants, landlords and agents.

On May the 7th, Britain’s political landscape may well change; it remains to be seen whether the private rented sector will also be affected.

Landlords & Tenants Endorse Bath’s Modern Makeovers

Posted on by prateek

An increasing number of contemporary new developments are being surreptitiously smuggled into Bath’s renowned Georgian architecture. Whilst a staggering 14% of buildings in Bath have listed status, well above the national average of 6%, developers have pinpointed certain areas of the city as ripe for a contemporary makeover – something that has gone down very well with both tenants and investors.

The latest addition to the city has seen Red Earth Developments rejuvenate twenty four studio, one and two bedroom apartments with allocated parking in the Lansdown area of Bath. Whilst these apartments do not reflect the traditional period splendour that one has come to expect from property in Bath, their modern and practical finishes have proved popular with tenants, especially with young professionals. At the time of writing, Reside has let six of these apartments for investment landlords, taking an average of just nine days to find each new tenant.

Reside has let apartments in several of Bath’s most recent developments such as Norfolk Court and Ladymead House, and a distinct pattern has emerged. For all the stunning architecture, high ceilings and period features that exist in Bath, there are a wealth of house hunters who are happy to eschew Georgian splendour. Some tenants, it seems, prefer contemporary comforts over classical cornices. Despite the differences between these two developments – one is a Bath Stone-clad new build with a stylish metallic upper tier, the other a Georgian building formerly used as sheltered accommodation for the elderly – they both boast stunning contemporary interiors with integrated appliances under warranty, granite work surfaces and wiring for satellite television and high-speed broadband. All of these factors make moving such an easy transition for new tenants, who have to act quickly to secure such a property. Our most recent Ladymead House apartment was bagged by a tenant before we could even begin to market it.

These new developments have also proved to be a popular way into the market for first time investors. Typically consisting of practical, stylish and high spec apartments, they are targeted towards the more affordable end of the investment property ladder, and come with long warranties which would provide any landlord, no matter how experienced, with peace of mind. At The Coachworks on London Road, Bath’s newest development, as little as £99,000 buys an investor an exclusive and modern apartment with instant access to the city centre. Based on our previous experiences with similar developments, such an apartment would come with strong tenant appeal and would be likely to let very quickly.

Bath is a city renowned worldwide for its stunning Georgian architecture, something for which many tenants specifically move to the city. For investors and certain tenants, however, contemporary and practical properties are becoming increasingly appealing.

If you are a landlord and wish to speak to us concerning your property, new or old, please do not hesitate to contact us.

1 In 4 Landlords Earn A Living From Rental Property

Posted on by prateek

It seems that there has never been a better time to be a private landlord: tenant demand is up and predicted to rise even further; rents are increasing and yields are at their highest since the Landlords Panel research study began in 2006.

It is unsurprising therefore that more than one in four landlords are now making a living from letting their properties, according to recent research by BDRC Continental.

The research also found that a further 52% use rental properties to supplement their income, with 74% of those planning to use rental income to help fund their retirement.

Landlords stated that the opportunity to achieve a better return on property than investing in the stock market was a major factor in entering the buy-to-let market, along with the chance to make rental income their main source of income in the future.

It seems that optimism is in the air with 68% of landlords rating their capital gains and rental prospects as good or very good, compared with 60% in the third quarter of last year. This was found to be at the highest level since 2007.

John Heron, managing director of Paragon Mortgages, said: “Tenant demand for rental property remains strong, and with the mainstay of investment coming from private landlords, it is important for lenders to develop products that can underpin sustainable growth.”

Many of the landlords surveyed said they were looking to expand their portfolios, which is good news for buy-to-let mortgage providers and brokers. However it raises another issue when you consider that 63% agree ‘strongly’ that the buy-to-let market would benefit from greater competition. The industry cannot afford to have its key customers believing there’s too little competition in the market.

The research sounded a warning note for brokers and intermediaries: 21% of all landlords agree ‘strongly’ that they will approach a lender directly the next time they need funding.  And meanwhile some lenders are moving in the direction of providing a more holistic service to landlords – e.g. educating them on legal obligations, marketing and how to become more profitable.

With tenant demand almost certainly set to increase into 2014, it seems inevitable that even more landlords will be able to make a living from their rental properties in the future. If you are a landlord or are thinking about investing in rental property in Bath, we would be more than happy to discuss any questions you have about this topic either in person or via Facebook or Twitter.