Last year, there was a shocking 86,000 complaints from tenants living in substandard accommodation and 15,000 of those were repeat complaints.

Shelter is right – the government needs to take a tough stance on private landlords who break the law.

However, we urge tighter regulation of all private landlords and the enforcement of the laws that already exist concerning the quality and standards of private rental accommodation that need to be met.

Currently, these laws are not enforced so Landlords are getting away with providing substandard or even squalid accommodation and giving the whole industry a bad name.

Girlings belongs to The Association of Residential Lettings Agency (ARLA) – a professional body that has a strict code of conduct and is campaigning for lettings agents to be regulated in order to raise standards and get rid of rogue landlords.

All private landlords should be required sign up to ARLA but more importantly local authorities need to be prepared take action and enforce regulation, good practice and compliance.

Only, then will we weed out these rogues.

New tenancy applications from those moving into rental accommodation was 275,000 which represents an increase of just under 25% over 2010 says the FT.

This increase reflects the state of the housing market and the difficulties facing, in particular, young first time buyer singles and couples, faced with stringent mortgage application criteria. Banks and building societies are now risk averse following the difficulties many got themselves into during the credit crunch and now demand increased deposits and fees.

This situation, which is exacerbated by the slow rate of new housing development in the recession, has created a mini-boom in renting with some areas facing severe shortages of rental accommodation, pushing up rental values to record highs.

Although the report highlights the plight of couples and singles under the age of 35, it also points to a growing trend of whole families moving into rentals in what appears to be a major demographic shift and a long-term trend in housing provision and ownership in the UK.

Increasing demand for rentals according to the report has also reduced the average voids (periods when rentals are empty between lets) to 13.6 days on average, which is down from 14.8 days in 2010. London, with its predominantly young professional rental scene, has the fastest moving market at just 12.2 days.

Figures highlighted in the report, some of which were provided by property services group Savills, point to a huge increase in UK housing stock now in the hands of private buy-to-let landlords.

They claim that these UK private landlords now account for almost 20% of housing ownership, with a consequent drop in the proportion of owner occupiers in the country.

Many buy-to-let investors are seizing on the opportunities of low mortgage interest rates and falling property values to increase their portfolios of rentals. For those with cash to spare for the larger mortgage deposits needed, and faced with few investment alternatives, property is seen as a relatively safe place for money giving far superior returns to those available in pensions on other types of investment.

The RLA says that according to the Government’s English Housing Survey 84% of the over 8 million private rented sector (PRS) tenants are satisfied with their tenancies, this is a higher satisfaction rating than tenants living in social housing.

To put Shelter’s report into context, their 86,000 complaints from tenants about their landlords amount only to 2% of all PRS tenancies.

The RLA condemns bad landlords. Those who breach regulations controlling standards are not just ‘rogue’ but are criminal, and they give a bad name to the vast majority who do offer a decent standard of housing and management. The problem, according to the RLA, is that local authorities have failed to focus on tracking down bad landlords because of seeking to meet central Government targets to licence landlords. With limited resources, they put their effort into the easy to check landlords who are the most visible and compliant and do not concentrate instead on those who deliberately seek to evade inspection. That’s why councils brought only 270 prosecutions of landlords last year.

RLA says Shelter’s five point plan (detailed response under notes) is an emotional charter of clichés which can spell danger for tenants too. Instead, the RLA welcomes dialogue to produce solutions and calls for :

• A culture change in town-halls to work with the PRS as a responsible supplier of housing
• Wider use of landlord accreditation schemes to promote self-regulation allowing councils to focus on criminal landlords
• Greater education for tenants to enable them to properly hold their landlords to account
• Fair-play for landlords with faster dispute resolution over non-payment of rent and tenant choice for the receipt of housing benefits

1. The RLA represents over 15,000 private sector residential landlords in England and Wales.

2. For further information please contact the RLA’s consultant, Ed Jacobs on 0113 278 0211 or email ed.jacobs@publicaffairsco.com or Alan Ward on 07764310325 or email award@rla.org.uk.

Detailed response to Shelter’s Five Point Plan

Tougher sentencing for criminal landlords: increasing the maximum penalty for ignoring a court order to improve conditions from £5,000 to £20,000.

• Penalties need to be proportionate to the crime but without better prosecution they are just window-dressing.

• The RLA calls for better training and resourcing of enforcement officials in council housing departments without charging the good landlords through spurious regulation.

A rogue landlord prosecution fund: earmarking money to help councils get tough on landlords blighting their area

• The RLA says, throwing more money at the problem does not produce solutions. It is about priorities. The cost of successful cases can be recovered.

New protection for brave tenants: safeguard tenants from being evicted in retaliation for whistleblowing.

• Shelter must not weaken landlords’ rights to evict non-paying or anti-social tenants. Speedy resolution of tenant problems is in everyone’s interests but neither court procedures nor council departments work in their favour. The RLA says there is scope for fast track procedures such as Alternative Dispute Resolution as used in tenancy deposit schemes.

An online landlord conviction database: a new website listing all convicted landlords to help tenants avoid criminal landlords.

• There is need for tenants to be aware of poor quality property which can often be detected on inspection of the property before signing a tenancy agreement and to examine appropriate certificates for gas and electrical safety and energy performance.

• Better landlords are members of associations and local accreditation schemes which set property and management standards. Some councils and university schemes include property inspections. Tenants have little knowledge of their responsibilities, for example to reduce humidity and stop condensation.

A rogue landlord summit convened by the Housing Minister to create a clear action plan to protect tenants.

• But action to protect tenants must be proportionate to the problem.

• The vast majority of good landlords must be protected from the hassle-factor just to provide statistics which look as though action is being taken.

• More than 70 laws and regulations exist to control the PRS – they must be used better to protect tenants and good landlords from the criminal minority.

References

(1)- English survey of Housing Condition – 2009 Satisfaction and aspiration. There is evidence that owner occupiers are more satisfied with their accommodation than people living in other tenures. Only two per cent of owner occupiers described themselves as dissatisfied with their accommodation compared to ten per cent of private rented tenants and 13 per cent of social rented tenants11.

(2) Shelter – policy briefing Nov 2011. Asserting Authority.
NB : There are 348 district and unitary councils in England and Wales.

(3) Ministry of Justice – Statistics – jcs-annual-2010

(4) http://www.publications.parliament.uk/pa/cm201212/cmhansrd/cm120208/text/120208w0001.htm#12020845000083

As at October each year Claims paid to landlords due to more than eight weeks of arrears. Total local housing allowance caseload:
2010 80,000 - 1,070,000
2011 90,000 - 1,240,000

New figures from the government and mortgage lenders show 16.5% of the housing stock in England and Wales comprises buy to let homes – compared with 17.5% that is social housing.

The gap 30 years ago was 3 million in favour of social housing – now it’s just 200,000 properties, says the Communities and Local Government Department’s Housing Survey for 2011.

At current rates, buy to let will over take social housing in less than five years.

Last year, the Council of Mortgage Lenders says landlords added 84,000 new homes to the total of buy to let homes in the UK.

The figure is ahead of 2010 but only a third of the level of the market high, which peaked in 2007.

“The buy-to-let market continues to operate at relatively subdued levels, but it is clearly continuing to recover from its low point in 2009,” said the Council of Mortgage Lenders.

The CML revealed buy-to-let mortgages make up 13% of total owed on mortgages in the UK, and 11% of gross mortgage lending in the last quarter of 2011.

CML director general Paul Smee said: “Buy-to-let lending continues to perform well. Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector.

“These figures do not suggest that buy-to-let is crowding out first-time buyers; more that it is performing a really important role within the overall housing market. The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide.”

The number of landlords buying and selling nudged up in the last three months of 2011, says ARLA, but activity is expected to drop back.

Landlords selling was up 2% to 8% from the previous quarter, while buyers increased from 23% to 25%.

Landlords in the North West were most active in the property market with 31% of landlords in the region buying at least one rental property in the year and 11% selling at least one home.

However, the number of landlords expecting to buy more properties in the next 12 months fell from 27% to 25%, while the number saying they expected to sell rose from 8% to 9%.

ARLA president Tim Hyatt said: “Forecasts have stated that the rental sector will still offer growth in the coming year. Rental growth will remain robust across all sectors, albeit at a more sustainable level of around 4% to 5% for this year.

“This will come about in part because of the continued inactivity in the sales market, but nothing like the growth we have seen for the past two years. However the private rental sector still represents substantial value for investors looking to enter the market or increase their participation.”

Meanwhile, national franchise letting agent Belvoir is warning that buy to let rents are not as buoyant as they may seem – with rents in many areas stuck at 2008 levels despite gains in some places.

“Just five areas across the UK have overtaken the rental heights of 2008. These regions are London (+5%), North-East (+6%), Yorkshire (+2%), South-West and West Midlands (+1%),” said Belvoir managing director Dorian Gonsalves.

“Other regions such as the North-West were up in 2011 compared to 2010, but were still down compared to 2008 heights (-3%), with the East Midlands (-6%) and East Anglia (-5%) the furthest away from 2008 heights.”

Around 22 firms in the market place have either agreed to stop taking on new business or have stopped trading.

Firms in the sector faced floods of complaints for offering last-chance below market value deals to home owners facing bankruptcy and repossession.

The firms proposed cut-price deals to the home owners, often at 30% less than the market value, while promising to let them stay in their homes as tenants.

In many cases, the home owners who could not afford their debts or mortgages also failed to pay rents and were evicted.

The FSA branded the controversial deals as ‘unsuitable or unaffordable’, while claiming they should never have been sold.

One of the firms is also under investigation for buy to let fraud.

By 2009, at least 50,000 below market value sale and rent back deals were agreed with about 1,000 property investors, claims the FSA.

The market was regulated by the FSA in 2009, and only 60 deals have completed since.

“The FSA has referred one firm to its enforcement division while others have either stopped taking on new business or cancelled their permissions,” the FSA said.

“Effectively, this means the entire sale and rent back market is temporarily shut.”

The FSA said the investigation revealed a massive dossier of complaints, errors and bad practice across the sector.

“The resulting temporary closure of this market could have been avoided if sale and rent back firms had taken the time to fully understand their regulatory responsibilities and customers’ needs,” said the FSA.

“It seems most were more focussed on their own commercial success rather than the welfare of the customers, with one firm even resorting to fraud.”

- Date: Wednesday, 14 March 2012

- Time: 11am – 1pm

- Location: Fullwell Cross Library, 140 High Street, Barkingside IG6 2EA

To book your place/ or for questions: Email your name, business/organisation name, full address, contact number and contact email to neareacfsteam@london-fire.gov.uk or call 020 8555 1200 x35521.

Unrestricted mortgage lending before the credit crunch, some up to or even over 100% of property values, by banks and building societies, lead to many unsustainable mortgages with some landlords and home owners unable to maintain their payments.

This will probably mean larger deposit amounts needed to buy can be varied according to the state of the property market – if the market starts to boom the deposit required would increase.

The reverse would also be true: when markets slow mortgage packages could be made more attractive and deposit amounts needed for mortgage approvals may be lowered, perhaps to as low as 5 or 10 per cent.

MPs were told as they discussed the second reading of the Financial Services Bill that the new FPC committee (already set-up but not in force until January 2013) would be led by the Governor. Osborne said: ‘Its job is not just to try to moderate a credit boom but to try to alleviate a credit bust,’

Speaking in the debate Osborne said that “light-touch” regulation had led to an ‘unmitigated disaster’ for the economy and the committee would be ‘entrusted with the stability for the whole financial system’.

The event which takes place on Thursday March 1st 2012, will celebrate the professionalism of London’s landlords and agents. Eleven awards will be given to those landlords, agents and partners who have excelled in their service to the private rented sector.

Steve Barnes, Broking Manager, for Total Landlord Insurance, said:

“We fully support initiatives that improve standards in the private rented sector, and as such wholeheartedly endorse everything that the UK Landlord Accreditation Partnership stands for.

“The UK LAP is not only there to recognise good landlords but also offers support and training to new landlords to ensure that they can build a successful and well run business, and give all of its members access to the latest legislation.

“We are delighted to be a sponsor of such a prestigious event and wish all the nominees the best of luck on the night.”

Two new accreditation programmes will also be launched at the event.

The Green Landlords’ Accreditation Scheme which will train landlords to be more energy and water usage conscious for the sustainability of their businesses, and to the benefit of their tenants and the environment.

The Tenant Accreditation Scheme will also be launched which will advise tenants on how to be responsible residents. The benefits of gaining accreditation will make tenants more knowledgeable as to their rights and responsibilities, and, they will be more desirable to landlords as they will have shown their commitment to being ideal tenants.

Dave Princep, chair of both the London Landlord Accreditation Scheme and the UK Landlord Accreditation Partnership, said: “We are seeking nominations from the capital’s best accredited landlords and agents. The time is right to award professional landlords and agents and to encourage others to follow their excellent examples.

“The launch of the two new accreditation schemes, in addition to the range of Continuous Professional Development courses that UK LAP offers, shows that the UK Landlords Accreditation Partnership is committed to supporting and training private landlords with the many and varied skills required from legal obligations to general duties as a landlord. By supporting landlords the UK LAP enables them to provide good quality housing for their tenants with minimum intervention from the authorities.”

The Future of Housing in the Private Rented Sector will be hosted at

The Thistle Hotel, Edinburgh Suite, Bryanston Street, London W1H 7EH. For more information go to www.llas-conference.org.uk.

For more information on Total Landlord Insurance and our products go to www.totallandlordinsurance.co.uk or call 0800 63 43 880.

Total Landlord Insurance is a trading name of HFIS plc. HFIS plc is authorised and regulated by the Financial Services Authority.

For general information about Total Landlord Insurance visit our web site at www.totallandlordinsurance.co.uk or telephone on 0800 63 43 880

Buying a house to let is exciting; but it comes with many responsibilities. From preparation to let, routine home maintenance and renovations to Landlord insurance; there is a lot to think about. Here are some important steps to take after purchasing a house.

1. Landlord Insurance

If you have a mortgage you are required by your lender to carry property insurance. If you do not have a mortgage, Landlord insurance is still essential for financial protection. You have the option to choose any insurance carrier you wish. After you have let your house and your tenants are settled; take the time to compare insurance rates to make sure the policy you are carrying offers adequate coverage at the most affordable price.

Be sure to do this regularly, at least once a year, to make sure you are always getting the best coverage at the best price. Bundling your property insurance with other policies like block policies and auto insurance is one way to save. Insurance companies sometimes offer multi-policy discounts. Having a monitored alarm system and other security measures installed is another way to get a discount.

2. Maintenance

There might be some work that needs to be done to your new house, or it might be move in ready. Just keep in mind that even after any initial work you complete when you first buy your house, a house will continue to require regular maintenance to provide a safe environment for your tenants and retain its value.

Even if your home does not currently need any work done to it, plan to set aside money each month to cover maintenance issues that come up. You will find a range of recommendations for how much to set aside for home maintenance; but it will depend in part on personal factors like the age and condition of your buy-to-let and the cost of living. You will probably want to set aside somewhere between one and four percent of the house’s value per year to be used for maintenance. One year you might not spend anything, another year you might be faced with a costly roof replacement.

3. Organise

You will be left with a ton of paperwork following the purchase of your house. It is important to file this properly as you will need it again for tax purposes when you sell. Take the time during lettings to organize all of the important paperwork like insurance documents, warranties and loan documents. Also be sure to keep and know where to find all of the manuals for your appliances; whether they were already in the home or you purchased them during move in – do copies of these for tenants.

Knowing where all of this information is can save you time and money. Warranty documents will help you to know when a repair is covered and what exactly is covered. Appliance manuals are important for making sure your tenants are operating appliances properly and maintaining them to help them last as long as possible – you could be liable if there is an accident and you have not supplied tenants with operating instructions.

4. Find Resources

Even if you do not currently have any issues in your house that need to be fixed; chances are there will come a time when you need services like a plumber, electrician, heating or air conditioning repair, landscaping and other services.

Talk to local friends and neighbours and check reviews to find reliable service providers in the area, and make a list for you to keep in a convenient place. Landlords should try to develop contacts for tradesmen they can call on in an emergency. Sometimes it’s more important to get someone quickly than having the cheapest service, so pay them quickly and well and they will always give you good service. This will save time and stress when you are in need of a home repair or service.

From searching for a house investment, securing a mortgage, going through the closing process and moving your tenants into your new house; buying a house is a time consuming, sometimes stressful, but worthwhile experience.

Make sure to take the time after things settle down to get organized and take important steps to protect your large investment. These simple steps can save you time, money and frustration over time.