Apart from the passing of the 1988 & 2004 Housing Acts by Parliament I have never experienced such a collection of changes to renting a flat all in one go. The following Legislation has just become effective (April 2012).

• Tenancy Deposit Protection information must now be provided within 30 days or you may be fined and invalidate your right to evict a Tenant by issuing a S21 notice.
• An EPC must be commissioned before a property can be marketed and the EPC must actually be issued within 7 days of marketing.
• In 2018, rental properties with the two lowest EPC scores are due to be banned from the market, meaning that landlords must have improved them by then.
• DHSS allowances for Housing Benefit (LHA) change dramatically.
• The age limit of the Single Room Rate (SRR) rose from 25 to 35 years old. Anyone under 35 yrs will only get Bedsit LHA
• The five bedroom Local Housing Allowance rate has gone so that the maximum level is for a four bedroom flat.
• Local Housing Allowance rates are reduced so that about 3 in 10 properties for rent in the area should be affordable to people on Housing Benefit, rather than every 5 in 10 properties as before.
• Local Housing Allowance weekly rates in any area cannot exceed:
• £250 for a one bedroom property
• £290 for a two bedroom property
• £340 for a three bedroom property
• £400 for a four bedroom property
• Local Housing Allowance (Housing Benefits) will be set in line with the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI)
• Small-shared houses or flats occupied by between 3 and 6 unrelated individuals who share basic amenities were reclassified under planning laws from “C3 Dwelling Houses” to “C4 Houses in Multiple Occupation“. Depending in which part of the country you are you may need Planning Permission to rent these.

So from today the tenancy agreements that you use should be different to the ones that you used to use. The way that I keep up to date with legislation is through my membership of the Guild of Landlords which costs me £80 p.a. and provides me with current documents and a legal advice line to advise me on their use.  I chose the Guild because it was strongly recommended to me, and I appreciate the personal nature of the organisation. However the other landlord organisations have their own supporters, and I don’t think that it is important which one you join, just that you do join one of them.

Photo credit: LibraryatNight

I was ill – I caught a debilitating disease for which the medical term is Domii Pauci – my G.P. identified the problem and got me an appointment with a specialist who had devoted his life to curing people with this complaint. I prepared a wet fish, and finally the day came for my appointment and I marched into his surgery and announced:

“You bloodsucking leech! How can you live off the misery of your patients! How dare you sit in your comfortable surgery, taking taxpayers money? I am going to make sure that you never practise medicine again! Then I hit him round the face with a wet fish. I don’t think we will see HIM in surgery again!

At least that was the message that I got from today’s Independent in their story:

A new era of house building could create jobs, stimulate growth, and help the poor. So why won’t Cameron do it?

It’s a great story with a lousy message.

Yes there is a problem, especially in London: a modest two-bedroom place in London’s Zone 2 – a standard monthly rent is indeed £800, even £900. The Independent reports hundreds of furious Londoners bombarding with their renting horror stories. One had a 35 per cent rent hike imposed on them at Christmas; another was forced to desert their Stockwell flat after a 40 per cent increase. “My tiny flat in the East End went up by £200 a month for the next occupants when I left”. Clearly the patient is sick, sick with Domii Pauci – a housing shortage.

The Independent’s solution is the wet fish: “Private landlords can do as they please, of course. Having a roof over your head is a basic human requirement and, when there is a lack of houses to go around, it is a need that can be exploited. A landlord knows that, if their tenants don’t like an outrageous rent hike, their only option is to put themselves back at the mercy of the ever more pricey private renting market. According to Shelter, annual rents in inner London went up by 7 per cent last year – or just under £1,000 for a two-bedroom house. When people’s wages are flat-lining, that’s a big hit.”

As a Landlord of some 20 years I have seen this coming, indeed it’s why I am a Landlord. The strange thing is that the Government hasn’t seen it coming, and still doesn’t understand why it is happening, and getting worse. The fixed costs of being a Landlord are increasing exponentially – Pimlico Flats has had to take on an employee solely for the purpose of administering deposits, council tax, utilities. Computerisation has enabled big corporations like Westminster City Council to remove thinking from their activities and leave automated mailshots. New regulations require building work to prevent such things as “death by only having one lock” ……. again, many of the new initiatives are good, and contribute to tenants well being, but some don’t. And all carry a cost, and at the end of the day the tenant bears that cost,  not government, or the landlord.

It’s time for Government and Shelter to examine what leads to higher rents, and what leads to lower rents, and to act accordingly.

Meantime don’t be surprised if Landlords leave the Planet saying thanks for all the fish.

I try to keep this blog tightly on the subjects of Pimlico, Renting, and Flats. It’s not too difficult because I can use the Forum to ramble about other subjects, and this keeps the blog focussed.

I thought that I would stray a little to talk about this blog, and blogging, as a way of thanking my many sources of information, and I have broken the story into three parts.

Pimlico

Renting

Property

Pimlico

Blogging about Pimlico is probably the easiest of my 3 core subjects, particularly since I define “Pimlico” as being anywhere within walking distance of Pimlico Flats – so that covers Central London, and makes:

• Victoria & Belgravia “North Pimlico”,
• Kensington and Chelsea “West Pimlico”,
• Battersea, Vauxhall, Stockwell, Clapham “South Pimlico”
• Westminster, Soho “East Pimlico”

I try to focus on free and little published events and attractions, as the bigger professional things are generally commercially advertised and known about. My biggest source of information is the weekly publication The Pimlico News and Journal which is something that I publish myself and is automatically curated from various feeds. It has been sufficiently successful that I now carry it as a page on this website which can be accessed from the menu on the left.

It’s a great Newspaper but I must give thanks to some of the contributors. There are of course the usual traditional sources of information, BBC, Newspapers, but the purpose of niche blogging is to uncover the real story, and here are the local blogs and websites which I follow in order to reach the news other blogs can’t reach:

London Blogs

• Foremost has to be the Westminster Chronicle  just because we need professional journalists and local newspapers in our lives, and if you don’t use them and pay for them we will lose them, and be all the poorer. I don’t know how the power of the internet will pan out, but printed news is under pressure from free blogs like this, and the free “Pimlico News and Journal” that I just promoted. In spite of my competition with the Chronicle all I can say is that we need our local shops, and newspapers, so please buy a copy from your local newsagent.
• Londonist  a website about London and everything that happens in it – it’s a professional publication set up in 2004 as The Big Smoker. I like it because, although it is a comprehensive London-wide reference resource, it carries this off with humour and is in touch with it’s community roots (e.g. the Hand Drawn Maps initiative). They provide everything you need to know about the capital, as well as celebrating the quirks, eccentricities, hidden and surprising bits that make up the alternative side of the city.
• Discovering London - which I juxtapose alongside Londonist because Peter’s blog is small, if not tiny, yet it is brimming over with personality, quality, and originality. Peter has yet to reach his 1st anniversary of blogging, but already his website is one of my favourites.
• Tired of London, Tired of Life began in October 2008 as a place to document those moments of inspiration for making living in London exciting & different. Doing the same thing day after day can get anyone down, but our city has an almost infinite number of things to see and do. If you’re not getting the most out of London, it is a sad truth that you have no one to blame but yourself. This site was part of a personal plan for the author to get the most out of the greatest city on earth, and it has worked.
• Going Underground Look at what the mainstream press has to say! The magic, mystery & sometimes maddening shortcomings of London’s Tube are documented with love, enthusiasm & sometimes despair by its unofficial social historian ……. The best blogs have a tinge of obsession about them … On some mornings it can feel like the only reason to be grateful that the Tube exists … one of London’s obsessives
• Young and Poor  Cheap/free events, gigs, food & drink, or sales —  never paid to mention things so it’s only things worth recommending.
• Ian Visits does NOT list the mainstream music/theatre/film events which are already so well supplied by the major newspapers and magazines – but DOES list the heritage open days, walking tours and mostly, the astonishing array of free (or cheap) lectures that the societies and universities of London provide. It’s a personal resource of remarkable usefulness.
• Boris Watch An act of frustration, at the loss to apparent personality politics, and the accusation that somehow young people are to blame …… but also a great tap into the stories that THEY don’t want you to read about.
• Laura Porter London-based travel writer & VisitBritain Super Blogger, mum, copywriter, tea drinker, afternoon tea addict & all-round London obsessive. She is a professional travel writer for About but I have recommended her twitter feed as she is a model in how to use Social Media. She does so much more than just promote her own writing, and is very generous with the links and information that she publishes. Consequently I would say – if you want to keep your finger on the pulse of mainstream London – follow Laura.

Pimlico Flats

In theory according to The Accommodation Agencies Act 1953 an agent is not allowed to charge the tenant. The Act was originally passed as a short-term measure, however, after a series of annual renewals, it was made permanent by the Expiring Laws Act 1969. Although the legislation was introduced nearly 60 years ago, it can still be enforced and Flatland itself was successfully prosecuted by Westminster City Council in the 1990s. The Act was introduced to prevent agencies taking fees in advance from prospective tenants in return for details of properties, and Agents cannot charge prospective tenants for lists, addresses or details of properties that they have in their possession, and the Act is quite clear in this respect.

As a general rule, the agent is at liberty to act either for a landlord or for a tenant (and accordingly to charge the appropriate commission).  The only restriction placed upon the agent by the general law is not to act for both.  Thus relocation agents may charge tenants for finding specific accommodation which includes advertising their individual requirements. Where an agent takes a deposit or fee, refundable on demand, where the deposit is not in respect of any particular property, an offence is committed. Where an agent asked clients to sign an agreement under which a fee would become payable if and when they took accommodation found for them by the agent, the payments related to the finding of suitable accommodation and not for the supplying of an address, and no offence is committed. An amount chargeable at any time before the prospective tenant finds acceptable accommodation is an illegal payment, even if deemed returnable in the event  of the prospective tenant not finding accommodation.  Yet, an agent may legitimately charge for finding accommodation for a tenant who actually takes it, but may not demand a fee (even a returnable deposit) for merely supplying him with the address in the first place.

In practice Agents seem to find it fairly easy to charge fees without contravening the Act, or else the authorities find it too onerous to enforce the law. Agents also make money by charging for services – a local Pimlico Letting Agent made the following equivalent charges in 2010:

• Administration £350
• Referencing £52
• Agreement £188
• Inventory charges depending on the Flat & can vary from £80 – £300 per inspection. The tenant pays the Check In fee, the Landlord the Check Out fee.

The charges are subject to VAT. In theory the charges should reflect the actual costs to the Agent, however there are several online Agencies who offer Landlords free advertising, and they clearly only operate if they are making a profit from the charges to the tenant. They are clearly contravening the principle that the agent should only act for either the landlord or the tenant, but as with “Key Money” the authorities clearly don’t have the motivation to address what has become a custom & practice flouting of the law.

Pimlico Estate Agent Douglas Gordon has sparked controversy, and gone viral with a controversial video about estate agents which has featured in the Daily Mail. It is a grossly unflattering film that shows estate agents as their many detractors would imagine them – as obnoxious, sleazy, unprincipled louts.

 

Douglas Gordon are one of the top agents in London, so the film is unlikely to damage their reputation, nevertheless the reaction to the film hasn’t been to recognise it’s intention – as a spoof – but to recognise the stereotyped characteristics as being a genuine documentary. Who knows how this will play? Nevertheless the Property Industry should be alarmed at the number of people who look at what is intended to be a spoof & say “that’s just like my agent!”.

SafeAgent Logo

Both landlords and tenants are at risk from lettings agents and estate agents who disappear with rent and deposit money. A kitemark-style scheme has been launched to reassure tenants and landlords worried about losing money handed over.

Agents displaying the SAFEagent mark will already belong to a client money protection scheme operated by the National Approved Letting Scheme, the Association of Residential Letting Agents, the National Association of Estate Agents and the Royal Institution of Chartered Surveyors. These pay out in the event of the agent going bust or misappropriating money that has been handed over as a deposit or rent.

The scheme is backed by organisations including housing charity Shelter, the NUS,  the Trading Standards Institute, the Residential Landlords Association and the British Property Federation.

In practice landlords are more at risk from rogue agents than tenants – tenants need to ensure their money goes to the genuine owner of the property that they are going to live in, Landlords need to ensure that the business handling their money is protecting it in a client account rather than using it to fund their own activities.

Jenny Jones, Wikipedia

Following the National Housing Federation report into the national housing crisis, Jenny Jones – the Green Party Mayoral Candidate for London – has called for a change to tenancy law to give tenants the right to stay in their home for 4 years.

With more and more Londoners reliant on the private rented sector Jenny Jones is calling for them to have greater security.

The report predicts that:

• In England, the proportion of people living in owner occupied homes will fall from a peak of 72.5% in 2001 to 63.8% in 2021.
• In London, the majority of people living in the capital will rent by 2021 with the number of owner occupiers falling from 51.6% in 2010 to 44% by 2021.
• The average house price in England will meanwhile rise by 21.3% over the next five years from £214,647 in 2011, to £260,304 in 2016.
• Average rents in the private sector will increase sharply by 19.8% over the next five years fuelled by high demand and a shortage of properties.

Jenny Jones said:

“Home ownership in London has been in decline for a decade, dropping from 60% to 52% of households. This means that more and more Londoners rely on one of the most insecure rental sectors in Europe, where tenants are unable to resist rent hikes and are scared to challenge slum landlords.”

“Ireland is more enlightened - after six months you get an automatic right to stay for another three and a half years and landlords need a good reason to evict you. In the UK you can be kicked out with two months’ notice and the landlord doesn’t need to give you a reason. We urgently need to protect London’s private tenants, whether they live there by choice or because they’re priced out of home ownership.”

How Far – Can I walk?

Everyone knows how important local shops, restaurants, pubs, buses, trains and tube stations are to where you live. The key question when flat hunting is – “how far away are local amenities?” and – “can I walk to them?”.

In order to speed up hunting for a London Flat to rent it’s important to do your research online before you start the time consuming process of booking and attending viewings. Use Google and Google Streetview to look at the property, the street it is in, and how far it is to local amenities.

Fortunately there is a new facility to enable you to automate the process, and I’ve embedded it in this blog, so you can give it a spin.

Here is the amenity report for Pimlico Flats, as you can see we are just about in the top 10% of all locations for walkable amenities. You can put any address into the panel above to compare other locations to us. I am confident that you will find that Pimlico Flats is a better place to rent a Flat than 90% of all other locations in London.

Image via Wikipedia

Students will no longer be able to afford to live at University but will choose courses which allow them to remain in the family home while they study. Some cities which rely heavily on their university population to boost their local economy, could become ghost towns as non-local students abandon them for cheaper study closer to home.

• Twice as many university students will live at home by 2020
• Areas worst hit will be
  • Jesmond (Newcastle)
  • Moorside (Newcastle)
  • Broomhill (Sheffield)
  • Sharrow (Sheffield)
  • Boultham (Lincoln)
  • Carholme (Lincoln).
• The number of UK higher education students will fall by 14% over the next decade
• Crime and criminal damage will increase in affected areas, as many properties become vacant and derelict

Student Exodus Could Leave University Cities ‘Ghost Towns’ by 2020

Old Pimlico Map

Yesterday the Property Consultant and upmarket Estate Agent Cluttons issued a Press Release in which they state that Pimlico is fast becoming a haven for London buyers seeking centrally located homes for half the price of those a few minutes away in Belgravia (also know in most of my postings as “North Pimlico”). They report that houses in Pimlico are selling for approximately £750 – £1,000 per square foot, compared to £2,000 per square foot just a short walk away in sought-after Belgravia, a hotspot for international investors and the wealthy. Pimlico remains a pocket of reasonably priced homes in the centre of London, attracting young professionals such as lawyers and city workers who want a stylish, central location, domestic buyers seeking family homes have been priced out of central London, but Pimlico has so far avoided the ‘prime London’ label among international buyers and continues to offer excellent value for money.

Frankly Pimlico can do without press like this. It relies on being one of London’s secrets for it’s village atmosphere and value for money, and the last thing that we need is a load of international buyers after prime London at half the price. Once they discover that Pimlico is like Belgravia, but with real people, and great shops, restaurants and pubs then we are all doomed. Doomed I tell you doomed. Actually to be fair to Belgravia there are a couple of nice pubs tucked away in the mews, but it doesn’t have Pimlico’s utility.

Even if it was the same price I would prefer to live in Pimlico any day of the week, but keep it to yourself!