Propertymark calls for an end to the freeze on local housing allowance

Reply to the comment left by Mick Roberts at 06/04/2023 - 15:44
Yep.
40 years me and the wife been been landlords. Last 25 years full time.Sellingsome as they become empty .evicting a few undesirables. Overall our tenants are wonderful .some been with us over 20 years .we basically charging them only enough to cover our costs.they can't afford to find no more than £20 or £30 wk out of their benefits.

Reply to the comment left by radnor man at 06/04/2023 - 17:03
Yes same here, although this week I've started sending this text out:

Emma
I'm sending you email for rent increase if you want to ring me when u got it.
This is Selective Licensing/Govt/Council/Interest rates etc. They keep giving you charges that you don't want. You MUST let them know otherwise it gets worse.
I've also in the last 12 months had another £100 pm pay out per house for extra mortgage interest if you've been watching the news. £68,000 extra this year for me. All Landlords have gave rent increase just for that.
Plus on next repair, rent has to be more in line with market rents.
But try telling yourself if/when rent has to go up, say 'We've had a good run last 5 years or so, rent should have been £700+ 5 years ago, should have been £750/£850 last two years, Mick has been giving us £2-£3000 per year & he can't keep doing this in 2023 with all recent changes & inflation costs. His insurances alone including our house is £7000 per year.
Plus an extra £68,000 on mortgage interest
Plus got to pay out £57,000 in Licensing for our houses in August.
Rent increases can be reduced, if u can get toby.neal@nottinghamcity.gov.uk in charge of Selective Licensing 07734 525943 to see if I can pay the £57,000 in one go for your homes, if I do not have to do one single bit of paperwork and hundreds of hours and months of tortuous unnecessary form filling doing 14 hour days for months.

Reply to the comment left by Mick Roberts at 07/04/2023 - 07:45
You might need to make it easier to digest for the tenant Mick they dont care about what it costs you only what it means to them.

I am thinking of something like..

Dear X

Both the Council and government have decided that it is in some way necessary that I pay more to them both- just so I can continue to let my property to you.

They are preparing to charging me £XXX per year (equivalent) for a 'selective licence'. This is based purely on the postcode of the property. There are too many issue with HMO's in the area (even though your home is not one of them) and as a result EVERY property now has to have a licence.

The licence will require additional work to be carried out by the Landlord. For example a mains operated smoke alarm will have to be installed (even though you already have smoke alarms throughout). Other requirements like fire doors will replace all internal doors even though there is no legal requirement to do this if you lived in your own property. It is expected the total bill will run into the thousands of pounds.

Central government are also demanding that the EPC rating on every rental property is increased to a minimal rating. This may mean significant work costing up to £10,000. It may cause you major disruption in the process.

I have no problem in paying for the paper licence, and all work involved as this is apparently all about raising property standards to ensure that every tenant lives in the best possible property.

The government have assumed therefore that you will be more than willing to pay for all this - after all you will directly benefit from all the improvements made.

This email is to inform you, that unlike previous years where a rent increase may not have been made/or only raised by a minimum amount, this will no longer be the case.

Each and every year the rent will now increase to factor in the above costs and also ensure that the property is fully in line with the average market rent. Any increases to annual and ongoing costs like building insurance, gas checks, and maintenance will still have to be factored in.

What choice have I got?

As every private Landlord will have to take such measures it is inevitable ALL rents for all types and sizes of properties increase.
Unfortunately some landlords will have no choice than to sell their property as they cannot afford to make these changes, so property available will reduce further, pushing demand up and increasing rents further.
Unless the government commits and builds more social/affordable housing there will never be enough housing for everyone.

It is clear that both the Council and government do not understand the implications that licencing and changes to EPC legislation will have.

I will face prosecution and unlimited fines, if I do not obtain a licence and additional work is not carried out, but the reality is you will not be able to afford to live in the property you now call home, if it is.

I suggest you now write to the Council and your MP to explain to them exactly what this will mean for you and ask them to lobby the government accordingly.

Reply to the comment left by DSR at 07/04/2023 - 12:17
Yes very good, I'm going to nick several parts out that for mine.

My full increase letter is far too long.

Reply to the comment left by Mick Roberts at 07/04/2023 - 12:30
Great generic letter which we can all bespoke. I used to increase rents 2% per annum anyway but this no way covers the Selective Licencing cost changes which is coming to my area. By the way Mick I note Nottingham rents are increasing significantly in 2022. Newham is top of the charts in London for rent increases year on year of 17% and guess what- Newham have boroughwide Selective Licencing.

https://www.bbc.co.uk/news/business-65103937

DSR can you post your generic letter as a separate readers items post with some intro to increase awareness of it. Otherwise it will be trapped in this thread so not everyone will pick it up/benefit from it.

Reply to the comment left by Crouchender at 07/04/2023 - 12:58
Yes I think Newham were the first to introduce Selective Licensing.