Landlord Law Newsround #328 » The Landlord Law Blog

Landlord Law Newsround is here again so let’s see what we have spotted in the housing news this week.

Shocking rise in fake tenancies applications

Homelet, a referencing agency has carried out recent research that fraudulent tenancy applications have quadrupled in the last two years with a surge of fake tenancies applications of a staggering 200 a day.

False tenancy applications are now the fastest growing area of housing fraud costing as estimated £60.1m in the UK alone, with false bank statements being the highest with 89% of applicants declined due to fraudulent bank statements. Homelet say that due to the housing shortage and fierce competition it is driving tenants to extreme measures.

Andy Halstead, chief executive officier of Homelet and Let Alliance says with landlords exiting the market, lack of housing supply and tenants battling with at least 20 other people to secure a property it has lead to extreme measures from tenants, he adds

As a result, we’re seeing fraudulent activity surging. Not only from career criminals, who are cashing in on the chaos but from people who would never dare commit fraud out of desperation to secure a property.

There are no winners in the rental industry at the moment, and without drastic change, it will be the same for the next few years. What the government fail to understand is the huge problems they have.

He states that the ‘old’ way of completing references is not up to today’s and tomorrow’s market. Food for thought there.

Mandatory national registration scheme for holiday lets in England

The government has announced that from this summer all holiday lets will be under new controls and will have to sign up to a mandatory national registration scheme. This is stop local people from being priced out and unable to live in their own community, and make local housing more affordable for them. Hotels, hostels & B&B’s are excluded.

The Department for Levelling Up, Housing and Communities have said that this will give councils the power to require planning permission for properties that go so short term lets, should they need to. Existing short term lets would automatically be reclassified.

The new register will give councils the ability know how many short term lets they have in their boroughs and what effect they are having on the local community along with ensuring the short term lets are complying to health and safety regulations.

Opinions are varied Airbnb welcomed the changes whilst Generation Rent had ‘significant doubt’ over whether the changes to the planning system would be enforceable. Chief Exec Ben Twomey said

Proposals to allow existing short term lets to automatically gain permission to continue risks shutting the stable door once the horse has bolted.

Michael Gove, Housing Secretary said the changes ‘strike the right balance between protecting the visitor economy and ensuring local people get the homes they need’. However Rachael Maclean was far from impressed and slammed the proposals as not going far enough saying

The changes … will not bring any of the hundreds of thousands of lost homes back, instead the new rules will reinforce their holiday-let status by automatically granting them retrospective planning permission.

She said that there would be a flurry of new holiday lets and remaining property would be snapped up before the controls come into force.

Landlords remain optimistic & committed despite their battering

A survey carried out by OSB, a finance house claims that 69% of landlords are planning to increase their property portfolio, and 42% are still optimistic about their future.

With high percentages like this it is no surprise that two thirds of landlords planning and investing now to keep ahead of all the legislative changes that they need to adhere to, and 68% spend more time thinking how they can improve the tenant experience engaging more with their tenants to better understand their needs and promote a positive relationship.

Jon Hall, Group MD of mortgages and savings at OSB group commented

Landlords play a critical role in society, and this research clearly demonstrates that they are optimistic and committed to the future of the sector.

The actions landlords are taking, such as future financial planning, investing in the growth of their businesses, and building better tenant relationships, are a clear sign of their drive to improve the PRS for the long-term despite the many headwinds.

Some positive news for a change.

Generation Rent re-ignite the call for rent controls

Generation Rent is pushing for rent controls to be part of the election process. Ben Twomey, the chief exec states that many key workers are being priced out of the rental market in big cities and for in order for the cities to survive they need to cater for key workers. He is calling for all candidates in May’s elections to back his idea. He says

The current cost of renting crisis is devastating London’s communities. It is vital that England’s Metro Mayors have the power to slam the brakes on local rents and give our key workers the breathing space they need to live and work in their community. It is also vital that the mayor and the government build more affordable homes in the capital and increase how much social housing is available.

Generations Rent’s analysis shows that no borough in Inner London is affordable for essential workers in the education, social care, healthcare, retail, commerce and hospitality industries.