The Private Rental Sector – Overview 2009
Author: Joe Smith / Category: UncategorizedJanuary
Sales within the property market were down creating difficult conditions for homeowners. A significant increase in “reluctant landlords” was noted with many taking the decision to rent out their properties until the market improved. These inexperienced landlords had little knowledge of the rules and regulations to be adhered to when renting a property causing subsequent problems for tenants and giving the landlord profession a bad reputation.
February
The recession continued to cause problems for landlords with many tenants falling behind on their rent payments. The NLA revealed 74% of calls to the NLA advice line were from landlords concerned about rental arrears.
March
Tenants renting properties in order to set up cannabis factories were all over the news with stories of walls being knocked down, to fires from faulty electrics. The police urged landlords to look out for signs of a cannabis factory which included blacked out windows, pungent smells and heat emitting from the property.
April
Local Housing Allowance, where claimants were paid housing benefits directly instead of the money going straight to their landlords, had been in force for a year. The system was proving unpopular with many tenants preferring the old system and falling into rental arrears under new legislation.
May
National Landlord Registration Scheme was announced by the Government in response to the “Rugg Review” where landlords are required to submit details of their property holdings at the time of registration and re-registration each year. This was not well received and a similar scheme set up in Scotland resulted in failure.
June
A boost of confidence in the buy-to-let market was reported when the Letting Agents Association carried out a survey which found that an increasing number of landlords had taken the opportunity, with falling house prices and low interest rates, to further invest in the buy-to-let market and boost their property portfolios.
The lending rates had remained at an all time historic low with the Bank of England holding the base rate at 0.5% since March 2009 and the trend of falling house prices had said to reach the bottom in the UK – this acted as a huge motivation for landlords to expand their portfolios under the current economic climate.
July
The Land Registry, a governmental body which aims to find out who owns land, decided to increase the land registration fees for the first time since 1993. It was claimed that the increase was due to the downturn in the property market.
August
John Denham MP proposed plans to stop the “studentification” of areas by restricting houses of multiple occupation. However these plans would raise rents by driving out students, young professionals and migrant workers who rent the properties as they are affordable.
September
A decline in the number of “Reluctant Landlords” was reported as the housing market started to pick up and house prices increased.
October
Research demonstrated that one in five households had suffered problems with badly behaved neighbours this year. The issue of anti-social behaviour has concerned the Government in recent years. An incident of a single mother who committed suicide with her disabled daughter in 2007 due to the stress and anxiety brought on by constant attacks carried out by groups of gangs highlighted the seriousness of this problem. She had complained to the authority more than 33 times over a 10 year period regarding the ongoing anti-social behaviour targeting her and her family members – yet not a single individual had been arrested.
November
Thousands of students received late payment of their student loans and could not pay their tuition fees or their rent on time. Landlords suffered an increase in rental arrears during this period.
December
The Government announced that it would review the Local Housing Allowance, pleasing local housing charities.
The Government also launched a national crackdown on social housing tenancy cheats with the aim to recover up to 10,000 council and housing associations homes which have been sublet illegally.
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