Private Landlords Are Willing To Take A Hit To Support Their Tenants

Research from the National Residential Landlords Association has revealed that private landlords in the UK have been fully prepared to take a temporary hit to rental income to support tenants struggling as a result of the ongoing crisis. The survey of over 4,500 landlords found that an overwhelming 90% of landlords who had received a request for support from a tenant had responded positively. This included offering tenants a rent reduction or deferral, a rent-free period, early release from a tenancy or a refund on service charges included in rents for homes of multiple occupation. Of all the landlords surveyed, 44% had received a request for help. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/new-data-reveals-that-private-landlords-are-willing-to-take-a-hit-to-support-their-tenants.html

Government Announces Further Financial Support – Including Mortgage Holidays

The Chancellor, Rishi Sunak, has announced a series of measures to support individuals and businesses during the coronavirus outbreak. This included the announcement that the Treasury has agreed with the body representing mortgage lenders, UK Finance, that lenders will support customers who are experiencing issues with their finances as a result of COVID-19 and the options include a payment holiday of up to three months. Although nothing has been guaranteed for buy-to-let customers, UK Finance have told us  that customers who are concerned about their current financial situation should get in touch with their lender at the earliest possible opportunity to discuss if this is a suitable option for them. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/government-announces-further-financial-support-including-mortgage-holidays

Housing Secretary Announces Proposals To Change Planning

The Secretary of State for Housing, Robert Jenrick MP, yesterday announced a package of measures to reform the planning system and encourage house building. He also confirmed the Government intends to bring forward the Renters Reform Bill (encompassing the abolition of section 21, ‘lifetime deposits’, and the extension of the rogue landlords database) this year, as well as a social housing white paper. The Government plans to publish a ‘white paper’ in the spring, setting out their ambitions for reform of the planning system. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/housing-secretary-announces-proposals-change-planning

Budget Fails Tenants Say Landlords

Tenants will continue to face a rental supply crisis as the Chancellor’s Budget has today failed to boost the supply of privately rented homes. Following years of tax hikes on the sector, organisations including the Royal Institution of Chartered Surveyors, Hamptons International, Zoopla and ARLA Propertymark have warned that private sector rents are set to rise as the demand for such homes outstrips supply. The Residential Landlords Association and the National Landlords Association warn that this only makes it harder for tenants to save for a home of their own. Read more on the NLA website

https://landlords.org.uk/news-campaigns/news/budget-fails-tenants-say-landlords

Universal Credit: Landlord Guidance Update

The Department for Work and Pensions (DWP) has refreshed the guidance on Universal Credit to help landlords understand how to manage tenants who are reliant on the payments in order to meet their rental obligations. The guidance provides landlords with a summarised overview of how they can navigate issues relating to Managed Payment to Landlord (MPTL), Discretionary Housing Payments (DHP) and recovering rents arrears from a Universal Credit claim. For landlords, the guide is a one-stop shop that can help them deal with issues that can arise from different stages of a tenancy and it signposts them to various resources that can help them support their tenants. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/universal-credit-landlord-guidance-update

Landlords’ Income Drops 20 Per Cent Since 2011

Private landlords report a reduction in average yields from 6.7 per cent in 2011 to only 5.4 per cent at the end of 2019. Challenging economic conditions, and uncertainty around future business prospects have seen landlords’ income from property investment and management fall by 20 per cent, according to a survey of National Landlords Association (NLA) members. In Q4 2019, NLA members reported an average yield of 5.4 per cent, down from 6.7 per cent in 2011. This fall represents a drop in income of more than £19,000 against an average residential property portfolio. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/landlords-income-drops-20-cent-2011

LHA To Increase By CPI

Will Quince MP, Minister for Welfare Delivery, has announced that from April 2020, Local Housing Allowance (LHA) rates will be increased in line with the Consumer Price Index (CPI), ending the freeze to the LHA which has been in place since 2016.  The Government says this increase will mean the majority of people in receipt of housing support in the Private Rented Sector will see their housing support increase, on average benefiting by around £10 per month. The latest CPI rate for November 2019 was 1.5 percent.  The Government also confirmed their September 2019 commitment to an additional £40 million in Discretionary Housing Payments (DHPs) for 2020/21. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/lha-increase-cpi-april-year

Councils To Set To Benefit From Grant Funding To Tackle Rogue Landlords

The Ministry of Housing, Communities and Local Government (MHCLG) has confirmed that over £4 million will be shared by more than 100 councils following a bidding process to help tackle rogue landlords. Councils were invited to submit their bids for the Innovation and Enforcement Grant Fund by 1 December 2019 with an expectation that any funding has to be spent by 31 March 2020. This announcement follows on from the confirmation that the Government will proceed with abolishing Section 21 as announced in the Queen’s Speech as they seek to implement reforms with in the private rented sector. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/councils-set-benefit-grant-funding-tackle-rogue-landlords

Government’s Housing Plans Are A Crisis Waiting To Happen

Government plans to scrap ‘no fault’ evictions, reiterated in the Queen’s Speech, will dramatically increase the risk faced by private landlords and lead to the loss of thousands of homes in the private rented sector, the National Landlords Association (NLA) has warned. The NLA, which represents 42,000 members, urged the Government to avoid creating an unnecessary crisis in the private rented sector by ensuring that reform of the court process is implemented alongside any change to tenancy legislation. Read why a crisis will occur on the NLA website.

https://landlords.org.uk/news-campaigns/news/governments-housing-plans-are-crisis-waiting-happen

NLA Publishes Manifesto Comparison Document

Now that the three main national parties have released their manifestos, the NLA has produced this document outlining the key promises they have each made, by theme. The Conservatives, Labour, and the Liberal Democrats have all continued to build on the information in their official manifestos with further announcements on housing policy proposals made this week. We will be keeping the news pages on each manifesto linked above updated as an when further details are released. We will also continue to update this comparison document over the next two weeks, until the election on Thursday 12 December. Download the document from the NLA website.

https://landlords.org.uk/sites/default/files/2019-11/NLA%27s%202019%20manifesto%20comparison.pdf

DWP Guidance On Understanding Universal Credit

The Department for Work and Pensions (DWP) has released a Housing Queries Routeway to help landlords resolve issues regarding Universal Credit. The document includes links to online information and telephone numbers for special support.

The online support information provides:

·         General information for landlords

·         Alternative Payment Arrangements and deductions

·         Third party payments guidance

·         Newsletter

Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/dwp-guidance-on-understanding-universal-credit

Labour’s Right To Buy Idea For Private Tenants Is Ludicrous, Says NLA

The National Landlords Association (NLA) has slammed the Labour Party’s suggestion that private tenants could be given the chance to buy their homes at a discounted rate from their landlords. In an interview with the Financial Times, Shadow Chancellor John McDonnell said he hoped the policy would be a solution to the “burgeoning buy-to-let” market. The policy replicates the right to buy scheme that was introduced by the Thatcher Government, allowing social housing tenants to buy their homes at a fraction of the market price. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/labours-right-buy-idea-private-tenants-ludicrous-says-nla-0

Government Wrong To Say Section 21 Is Leading Cause Homelessness

Claims that landlords’ use of section 21 “no fault” eviction notices is the leading cause of homelessness in the UK are “factually incorrect, misleading and just plain wrong”, says the National Landlords Association (NLA). Research by the NLA, using the Government’s own statistics, found that of 33,020 households assessed by local authorities between October and December 2018, just 11.8 percent (3,890) of those faced homelessness as a result of being served with a Section 21 notice. The same data also showed that the top reason for losing the last settled home was because family or friends were no longer willing or able to accommodate them, which accounted for over 15,000 households. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/government-wrong-say-section-21-leading-cause-homelessness-says-nla

Landlord Confidence Hits Record Low

Landlord confidence in their own lettings business has reached a record low, according to research* by the National Landlords Association (NLA). In the NLA’s survey for Q2 2019, only 29 percent of landlords said their business expectations for the next three months were good or very good, the lowest level since the survey began in Q4 2006. Confidence levels dropped significantly in the second half of 2015 in response to George Osborne’s changes to landlord taxation, but had until now remained above 35 percent. This represents a marked shift in confidence since the Government announced its proposal to abolish section 21 no-fault evictions. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/landlord-confidence-hits-record-low

Universal Credit Report: Urgent Action Is Needed

The All-Party Parliamentary Group (APPG) on Universal Credit (UC) has launched a report outlining how the UC system can be improved, following their inquiry into the issue. The key recommendations are:

·         Ending the controversial five-week wait

·         Make payments fortnightly by default

·         Split payments to each member of a couple

·         End the freeze on benefits and the two-child Limit

·         Pay childcare costs in advance

·         Allow claimants the option for direct payment to their landlord from the start of the claim.

Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/universal-credit-report-agrees-nla-urgent-action-needed

Tenants On Benefits Likely To Be “The Biggest Casualties” Of The Plan To Abolish Section 21

The government should “think twice” before changing the rules on eviction in the private rented sector, the National Landlords Association says. In a survey of landlords, the NLA found that of those who had sought to end a tenancy in the past five years, 57% had done so because of rent arrears.  43% said that if the government pressed ahead with its controversial plans, they would become more selective when choosing tenants for their property. This was a clear message that people on state benefits would be the first victims of the plan to abolish Section 21. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/tenants-on-state-benefits-likely-be-the-biggest-casualties-the-governments-ill

Government Fails To Inform Tenants Of Their Rights And Responsibilities

The Government urgently needs to provide tenants with better information on their rights and responsibilities if it is to avoid a breakdown of trust between renters and their landlords, the National Landlords Association warns. New research, commissioned by the NLA, found that over three quarters (79%) of tenants need better information about what they should expect from their landlords or agents. Worryingly, the NLA also found that more than two thirds (67%) of tenants were not aware of the Government’s How To Rent guide that is designed to help them understand their rights and responsibilities. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/the-government-fails-adequately-inform-tenants-their-rights-and

£45.5 Million To Help House The Homeless In The Private Rented Sector

The MHCLG has announced that £19.5 million will be shared amongst local authorities in England, to help the house the homeless and those at risk of becoming homeless. A further £26 million will be used to fund specialist support for vulnerable tenants struggling with mental health problems and substance misuse issues. The £19.5million scheme which will involve 54 local authorities includes 15 London boroughs with varied regional representation through the participation of Manchester, Portsmouth, Norwich, Birmingham, Bristol and Exeter City Councils. The £26 million pot of funding is yet to be allocated but councils must submit their bids by 29 March 2019. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/ps455-million-help-house-the-homeless-in-the-private-rented-sector

Minority Of Landlords Offering Informal Short-Term Lets

Only three percent of landlords are currently engaged in the informal short-term lettings market, according to research by the NLA.  Short-term lets, which range in length from one night up to around six months, have increased in popularity in recent years following the success of companies such as Airbnb. Landlords can generate significant income from letting their properties in this way.  However, this can breach a landlord’s mortgage terms and invalidate their existing insurance policy, so it’s vital for them to be aware of the problems it can present.   Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/minority-landlords-offering-informal-short-term-lets

Shared Home Tenants 'May Face Rent Rises Or Eviction'

Tenants living in shared houses in England could face eviction or increases in rent because of changes to government rules, the National Landlords Association (NLA) has warned. From 1 October an extra 160,000 houses of multiple occupancy (HMOs) have to be registered with local councils, almost triple the current figure. The Tenants Union said any increases in rent would be unfair on tenants. The government said the new rules would raise housing standards for tenants. HMOs are homes where people, who are not related, sleep in separate rooms but share facilities such as kitchens or bathrooms. Read more on the BBC website.

https://www.bbc.co.uk/news/uk-england-45641216