Welcome to our last Newsround for October.
PRS Ombudsman body named
The Housing Ombudsman is now expected to run the new PRS Ombudsman service, which will run as an independent dispute resolution service, according to the government this week.
Matthew Pennycook, housing minister, said
The government’s intention is that the existing Housing Ombudsman Service, which currently provides mandatory redress for social housing tenants, will set up and operate the service.
Further details have yet to be announced; however, there is speculation that compensation for tenants could be set at up to £25,000.
Tenants unaware of deposit challenge
A new survey out this week claims that out of 860 tenants surveyed, 38.2% were not aware that they could challenge their landlord on any deductions, and 25% only had a partial awareness of being able to do so.
Surprisingly, 21.8% of landlords were not aware that their tenant could challenge a deposit deduction, and 31.5% were only vaguely aware of the correct process. However, formal adjudication on disputes only accounts for 1% of all protected deposits according to Tenancy Deposit Scheme. Cleaning is the biggest dispute at 54%.
LRG lettings agents who carried out the survey said that agents should be the ones educating both tenants and landlords of their rights and options within a deposit scheme.
LHA gap widens across the private sector
The freezing of local housing allowance continues to raise concerns as more tenants are falling into rent arrears. Charities are putting pressure onto the government to raise the allowance.
One MP has challenged the government on its methodology, how up to date it is and how it is actually calculated. Stephen Timms minister for equalities rebutted the question and said
The local housing allowance determines the maximum financial support for renters in the private rented sector. Households in similar circumstances living in the same area are entitled to the same maximum rent allowance, regardless of the rent that they are required to pay.
He added that any further reviews will be based on the Government’s priorities.
Rent in advance ban locks out tenants
Two leading letting agents have stated that the government’s ban on taking rent in advance is now causing unintended major problems for poorer tenants and those from overseas.
Renters with poor credit ratings cannot now pay in advance with cash, this is locking out those tenants from renting or moving where they have been served a possession notice from previous landlords. This is putting undue pressure on homeless housing.
International students are failing the referencing criteria now that rent in advance is banned. And with no Section 21 to fall back on, landlords are understandably less likely to take the risk where previously they would have. One solution is to have a guarantor, but this is not an option for all tenants.
Snippets
New electric vehicle charging rights for tenants and leaseholders
Agents back more regulation to remove rogue firms
Renters Rights Act sees one in four landlords more likely to reject tenants
Property firm fined £240,000 for high-rise fire safety failings
Unfitness in the High Court
‘Local services are vital’: Former rough sleepers on what helped them off the streets
Newsround will be back again next week. In the meantime, check out our Daily Tips service.
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