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  • Property-a-holics

    Direction of travel of the PRS



    It is clear from recent announcements that there is a clear direction of travel in the private rented sector and it is not in favour of landlords!

    I thought it might be helpful to document these trends as they give a clear indication of how the PRS will be reformed going forwards.

    1.  Abolishment of Section 21

    Generation Rent launch campaign to end S21 

    Centre for Social Justice: PRS & S24 reforms

    2.  Introduction of Rent Controls

    London PRS heading towards rent controls 

    Labour gaining traction with Rent Controls

    Rent controls are coming

    3.  Introduction of blanket licensing

    Start planning for blanket licensing now!

    4.  Longer tenancies

    Labour advocating Indefinite Tenancies

    Government consultation on 3-year Tenancies 

    Report says private renting unfair to tenants

    5.   End of discrimination against tenants

    Zoopla to ban phrase "No DSS" in listings

    Ruling - Right to Rent breaches human rights

    What other trends do you see or predict?

    SEE ALSO  -        Anti-landlord sentiment perpetrated by media

    UP NEXT -            Insider insights on "game-changer" PRS report

    DON'T MISS -       Landlords' public image - spivs and rogues

    NOW WATCH:

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    Think about this for a second

    this is a game changer and it will be retroactive

    I think your forecast will come true and I think AST will go

    Our sector is changing from an investment into  a business.

    Personally,  I don’t wish to have to depend on BTL in my old age because a time will come where I can’t run a business.

    Spread risk invest in other assets not just BTL !

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    I don't see any clear direction of travel within the PRS. Each announcement creates more fragmentation, regionalisation and confusion.

    I'm an English resident landlord, most of these changes and announcements don't apply to me. I'm also a Welsh residential landlord and again many of these announcements don't apply.

    I don't have any political affiliation, although I have a particular disdain for Mr Brokenshire and the MHCLG. I'm baffled at why it is believed that Mr Corbyn, with a Labour government, will be successful in making radical changes to the PRS. The Welsh Assembly has a Labour majority, and the authority to make many of these changes now, but it isn't happening.

    Many of the changes within the English PRS appear to be London based, either the problem is in London and the legislation affects all of England or the UK (London) government won't introduce legislation to standardise the PRS across England - licencing in particular.

    One aspect that has particularly shocked me, is the recent reports by DL regarding selective licencing in Newcastle. As a Welsh landlord I am required to register and obtain a licence if I self manage with Rent Smart Wales at a reasonable cost of just under £200. That's it, for a reasonable sum I am registered and licensed to rent as many properties as I own, perfectly legitimately for 5 years any where in Wales. If I had chosen to invest in Newcastle I could have faced a cost of £700 per property to achieve the same level of legitimacy and in another English town or city there may be no requirement to obtain any form of licence.

    Wales is slowly going through the process of changing the AST to an Occupation Contract which in theory provides better protection for the tenant and landlord. Wales, nor the rest of the UK, have adopted the Right to Rent checks, another English fiasco. It will also be interesting to see if any housing court for England and Wales tries to impose English legislation on Welsh tenancies.

    Now someone in Scotland will have a different viewpoint as will someone in Northern Ireland.

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    Clearly Gary Newcastle Council sees landlord licencing as a simple cash cow.

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    Newcastle City Council do appear to have an element of greed in their approach. They are only able to do this however, due to the complete lack of direction by central government in England.

    Newcastle can introduce this scheme per property on the premise it provides a minimum standard within the PRS. Councils in Wales, Scotland and Northern Ireland wouldn't be able to justify such a scheme as the national landlord licencing schemes already satisfy this premise.

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    Local schemes are also justified on some very flaky statistics. Thanet District Council claimed that it was estimated that 58-85% of properties in the selective licensing area were likely to have class 1 hazards under HHSRS, all based on computer modelling. They also linked high levels of antisocial behaviour with the prs, the justification was a “self evident link” ie, lots of prs units and high antisocial behaviour.

    A foi request to kent police asking for data on crime/ antisocial behaviour being linked to a resident in the area and or address in the area split by tenure.Showed that on a per unit of accomodation weighting the liklihood of crime/antisocial behaviour

    self contained psr    1

    social sector LA/social provider 2

    care home, childrens home, halfway house, hmo 36

    my figures were rejected on grounds they did not perfectly mirror the licence area, but council had nothing better than their “ self evident link”

    In addition despite being an area of very high inward migration, it was the only licensing proposal criteria that was not considered. ( you can identify roads with high inward migration using crashmap.co.uk, try it in an area you know well, very revealing)

    we’ve had one extension already ( this expires in 2021) , no report on the schemes since 2015. Lack of enforcement legislation for buildings divided into flats owned by multiple landlords means that in those condition of exterior and common areas is ignored.


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    I agree with Gary that there is no 'clear direction for the PRS'. just confused, ill thought and reactive sound bites, some of which are being implemented for entirely vote-catching reasons. 

    The one common factor is the deliberate policy of renters' groups, some charities, some councils, the Greens and Labour, to promote the view that PRS landlords are the lowest of the low, providing sub standard accommodation, raising rents at will, evicting just because they feel like it and becoming millionaires whilst vulnerable people are homeless.

     I challenged this GR post a few days ago: "Private renting is so renowned for terrible conditions that an artist is making artisan cheese from the black mould bacteria cultures found on the walls of rented homes." I did call it arrant nonsense and said that most PRS property is not in a terrible condition at all.

    I have so far been told:- to grow up, that all landlords are cockroaches, that landlords are spoilt, privileged brats, that I am an hysterical woman who needs to take a pill, that tenants who work harder than landlords are getting poorer because of us, that tenants are working long unsocial hours so landlords can enjoy their evenings out and that landlords who hire agents are just too lazy or can't be bothered to run their own business.

    In order to provide some balance to the 'debate' I posted a message I had seen from an agent regarding a landlord who is suffering mental health problems due to being owed nearly 20K by tenants.  The responses were along the lines of 'tough shit' and 'no sympathy'.

    I talked about the diversity of landlords - that unlike the commonly held perception that we are all multi-property millionaires, landlords might be your neighbour renting out their Mum's home to pay care fees, or a soldier on deployment abroad for a couple of years.  The response? Well if the soldier has set the rent to just about cover his costs that might be okay, but if he is making a profit then he's just as bad as every other landlord.

    So, clear direction?  I don't think so.

    All political parties have their eye on a looming general election and they are all after the renters' votes.  Its a very poor, but very common way to make policy. We can see that S24, ending S21, removing 'No to DSS' are not helping renters at all. 

    Until all stakeholders can come together - representatives of social and private landlords, social and private tenants, people supporting the homeless, councils and MPs, there will be no clear direction for housing of any tenure.  And, as always, the most vulnerable will continue to suffer.

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    If tenants are working long unsocial hrs - that is largely due to the changes in UK economy over past 50 odd yrs - whereby many jobs which would have generated "pin money" in a past era are now expected to cover the household breadwinner role.

    If we widen the tenant definition to "all tenants" including those in SRS - we find that close to 50% are claiming housing benefit - and DWP say that only 23% of such claimants are in working households per se (some 28% being retired so not "unemployed").

    Noteworthy too as far as condition of rentals - is that EHS 2017 flags higher Tenant Satisfaction in PRS v SRS.

    Same survey flags average PRS tenancy duration is over 4 yrs - making a nonsense of suggestions that tenants are out on their ear after 6 months to enable rent increases.


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    Agree.  And the SRS is being rocked almost daily by accusations of fraud, disrepair, bullying, mismanagement and safety concerns. 

    Problem is, the renters' unions and similar groups have the ear of the media at the moment and their goal seems to be be turn PRS housing into social housing - with individual landlords taking all the risks

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    1.  Abolishment of Section 21 

    2.  Introduction of Rent Controls 

    3.  Introduction of blanket licensing 

    4.  Longer tenancies 

    5.   End of discrimination against tenants

    All of the above I think are sensible policy and none of them I object to.

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    I have to agree with you

    at one time in the uk A Taxi was not regulated and the regulation came

    I predicted long ago we would have rent control and it’s comming

    I can see major problem for the SE on this the north will cope in general because rents are not high

    we will see major changes which move BTL away from invest to a bussiness and I think it’s a good thing

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.