Rent Rises Slowed but Rents high, what does this mean for the future?

House available to rent

The rate at which rent rises has apparently slowed according to the latest results published in the Home Let Rental Index. According to the index (over the last three months) every region in the UK has been witness to a moderated pace of rent rises, this has slowed and has in fact retracted in some regions.
This trend is particularly noticeable in areas that have been rising exceptionally quickly, such as the South East of England and East Anglia. However, whilst the speed at which rent rises has slowed the price of rent remains significantly higher, with the average rent 10.5% higher than at this point last year. Though on the other hand three regions; the South East, the North West and the North East, saw rent prices fall in the three months leading to August and in addition no region saw a rise by more than 2%, which could be seen as new hope. Yet as Martin Totty of Barbon Insurance Group states the question on everyone’s lips is “will the next few months see the pace of rent price growth resume, or has this slowing set the tone for the rest of 2015”.
Landlord fined £20,000 over HMO licence and Health concerns

A Newport Landlord of a HMO has been successfully prosecuted by the city council for failing to manage and licence the property safely.

Kaeeza ABid, of Alexandra Road, pleaded guilty to failing to licence a HMO in Alma Street under the Housing Act and has now been fined £10,000. She has also been proven guilty of 10 more offences, failing to conform to the 2006 Management Regulations, being fined £1,000 for each offence. Furthermore, Abid has been ordered to pay the council costs of £1,229 and a victim surcharge of £120.

Environmental health officers inspected the property on 22/01/2015 and found that not only did it lack a licence but that the fire escaped were blocked by several obstructions and were poorly lit. Whilst this may not seem much, it in fact put its tenants at a high risk of severe injury and even death has a fire occurred in the property.

Whilst it is good to see Justice prevailing Newport City Council’s Cabinet Member for Regulatory Functions, Bob Poole want to remind all landlords that they, “…have the responsibility” to licence their properties in order for tenants to live safely in their accommodation and that “ the council will not hesitate to take action against those who put tenants at risk”.

Immigration plans encourage landlords to be prejudice against lawful tenants.  According to the Residential Landlords Association the complexity of the Government’s “Right to Rent” scheme has turned landlords into a form of border police which is seeing lawful tenants being refused housing. Under the Government’s new scheme, private sector landlords are legally responsible for checking the immigration status of their tenants. The scheme which was piloted last year in the West Midlands has now been expanded to a nationwide scale with landlords facing up to 5 years in prison for failing to undertake the right checks.

Moreover, as stated in the “No Passport- No Home” research report published by the Joint Council for the Welfare of Immigrants (JCWI), Landlords in the West Midlands are becoming progressively more cautious about renting property out to any tenant with identity documents which are not familiar to them.

Commenting on the research RLA policy Director, David Smith, said: “Whilst the RLA opposes discrimination against tenants because of their race or nationality, the Government’s plans are causing conclusion and anxiety for many landlords”, Smith goes on to add “If the Government expect Landlords to act as border police it should provide the training and material needed”. In correlation with Smiths view, Saira Grant of Legal & Policy argues that, “the Right to Rent policy encourages discrimination and has created a hostile environment for all migrants and ethnic minorities in the UK seeking to access the private rental market”. Grant adds that “the scheme must therefore be properly evaluated and scrutinised by Parliament before any decision is taken on a national roll-out”

I can therefore confidently recommend Goldcrest Insurance to anyone that wants good affordable insurance with great customer service.

- Greg Newman - DOR-2-DOR

Read more testimonials

All our Quotes are tailor made to get you the best cover

Request a Call Back