Welcome to our weekly Landlord Law Newsround, where we bring you the latest housing news. And there has been no shortage of news this week.
Committee Stage of Renters Rights Bill
As the Renters’ Rights Bill went back to the House of Lords this week there has been a lot of heated discussions this week in the House of Lords with Baroness Scott of Bybrook claiming that the bill does not give equal balance between landlords and tenants, and could reduce rental supply and increase rents for tenants, whilst Baroness of Stevenage responded by saying that it will bring greater stability to tenants.
Baroness Eaton was concerned that it would drive landlords out of the market and this impact vulnerable tenants saying
In reality, landlords will no doubt be more reluctant, under the new burdens placed on them, to take on more vulnerable tenants, for example, those who enter the market for the first time, without references, and those in receipt of housing benefit.
It will pass to the report stage if the bill passes this committee stage this week. However, there are a lot of amendments scheduled, so it could take longer.
The HMO Market valued at £78 million
There have been a number of articles this week discussing the importance of the HMO market. New analysis from HMO management platform COHO highlights that there are an estimated 182,554 HMO properties in England and Wales with the market as a whole valued at £78 million.
We are told that a total of 74% of the 182,554 HMO properties in England and Wales are shared by three or four tenants, while 26% have five or more tenants. With the largest HMO market being in London (as you would expect).
Vann Vogstad, of COHO, said:
HMOs are a significant force on the national rental market, generating a combined rental total of well over £6billion every year. But while this sounds like a strong number, HMO landlords are actually leaving a huge amount of money on the table.
Claiming that HMO tenants would pay up to 10% more in rent if their HMO experience were improved. For example, by ensuring that co tenants are compatible and providing better communication with tenants and a speedy maintenance service.
I would add to this, though, that HMOs are heavily regulated, so landlords looking to enter this lucrative market should undergo legal training first. We have a huge amount of information on HMOs on Landlord Law, which can help HMO landlords be compliant and avoid penalties and prosecutions.
Are guarantors now the ‘norm’?
Generation Rent is claiming that landlords asking for guarantors is ‘almost the norm’ now. Five years ago, 26% renters were asked for a guarantor compared to 39% of tenants over the last 12 months. They say that this is an increase of 50%.
This is now becoming so normal, they claim, that it is putting some tenants at a disadvantage. Guaranatees, they say, should only to be used for ‘those who can source one’ and for those who cannot they should not need to provide one.
Generation Rent are also calling for the the Renters’ Rights Bill to be amended so that it restricts the situations whereby a landlord can ask for a guarantor, such that it can only be asked for if the prospective tenant cannot prove that the rent is affordable to them. They also want those who have been in care to be able to use their council as a guarantor where they struggle to provide guarantors.
I suspect, though, that if landlords are prohibited from asking for guarantees, they will just not let to those tenants.
Student accommodation providers claim government has not listened
A coalition of student accommodation providers, The Student Accredited Private Rental Sector (SAPRS) is claiming that the government risks reducing student housing accommodation, giving uncertainty to students and ‘disrupting a well-functioning rental market’ if the new bill is passed, and calls on the government to act now before it is too late.
The new bill will abolish fixed-term tenancies, which is what makes student accommodation such a successful market for both landlords and students. Calum MacInnes, chair of SAPRS said that the Renters Rights Bill brings new risks to the UK student housing market and to students’ ability to be able find appropriate accommodation. He says
a straightforward solution remains – retaining the fixed-term tenancy system for the private student housing sector. This approach offers security to student renters and ensures landlords can make their properties available to new students at the start of each academic year.
He fears if the Bill is not changed, not only will the housing system for students be permanently damaged, but the higher education system will be as well.
Battersea Dogs Home to work with landlords
Battersea Dogs Home has launched a new Pet Friendly Properties campaign where they work with landlords and tenants to try and keep pets with their owners if they move into a new rental property or where tenants are told that they can no longer keep a pet.
They claim that the UK is very behind other countries in its attitude of keeping pets in rented accommodation, but they welcome the Renters Rights Bill where having a pet should not be unreasonably refused by a landlord. They claim more and more people are renting, and having a pet can save the NHS £2.4 billion every year, with benefits for both physical and mental health that a pet can provide.
Battersea Dogs Home plans to develop their guiding principles and where permission is granted, that it lasts for the duration of the tenancy and that moving forward, there is a positive ‘culture shift’ in accepting pets in rental properties.
And finally
The BBC has set up a ‘housing tracker’ page where you can input your postcode and see how many homes have been built in your area. Find it here.
Snippets
Council slammed for holding landlords responsible for tenants’ fly-tipping
Labour considers EPC C exemptions for listed buildings
Can increasing the supply of rented housing bring down rents?
Action needed: social housing providers must be made accountable for the treatment of their tenants
‘Ours was inspired by the Empire State Building!’ The chaotic brilliance of the UK’s biggest self-build town
See also our Quick News Updates on Landlord Law
Newsround will be back again next week