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News release

2009 - That was the year that was...

18 December 2009

The National Landlords Association (NLA), the leading representative body for private-residential landlords in the UK, takes a sideways glance at the ups and downs in the private-rented sector over the last 12 months.

JANUARY
The beginning of 2009 sees difficult conditions in the property sales market. As sales grind to a halt increasing numbers of ‘reluctant landlords’ enter the private-rented sector. These landlords decide to rent their property out while they wait for the market to improve, but without experience many fall foul of the many rules and regulations required of landlords. Ignorance of everything from tenancy deposit protection to gas safety certificates not only causes problems for tenants, but gives the land lord profession a bad name.

FEBRUARY
As difficult economic conditions continue to bite increasing numbers of tenants fall behind with their rent. The NLA reveals 74 per cent of calls to the NLA Advice Line are from landlords concerned about rental arrears. But it’s not just arrears; the Advice Line takes calls on everything from energy performance certificates to letting agent renewal fees.

MARCH
Cannabis factories in rental properties continue to hit the news, with landlords losing out when their homes are used to grow cannabis. Horror stories abound of internal walls knocked down and fires from faulty electrics. The police and NLA offer advice for landlords on spotting a cannabis factory. These include blacked out windows, heat emitting from the property, and pungent smells. Landlords, you have been warned.

APRIL
Local Housing Allowance (LHA), the new way of paying housing benefit has been in operation for a year, but the system is failing. Tenants in receipt of LHA are now paid directly and must choose whether to pass the money on to their landlord. In practice this often fails to happen, leaving many landlords with severe rental arrears and struggling to pay their mortgages. In response, the NLA begins its campaign to get direct payments reinstated.

MAY
Government publishes its long awaited response to the Rugg Review which proposes a landlords’ register.  The requirement for all landlords to submit details of their property holdings at the time of registration and re-registration each year causes the most concern. A similar compulsory landlord registration scheme has existed in Scotland for three years and has been shown not to work. The NLA labels the plans ‘well meaning, but flawed.’

JUNE
Treasury Select Committee into mortgage arrears and the availability of mortgage finance invites the NLA to speak, as the leading voice on landlord issues. Giving evidence, the NLA suggests landlords have had significant difficulties in buying and selling property as well as refinancing existing portfolios. This is crippling the opportunity for landlords to grow their portfolio, while contributing to the housing shortfall.

JULY
The NLA Property Women Awards celebrate the cream of the crop of female landlords in the private-rented sector. Inspiring stories emerge of women who are running successful lettings businesses, while providing the highest standards of service and care for their tenants. Shona Davison is crowned NLA Property Woman of the Year 2009, thanks to her flourishing property portfolio and financial successes, generated by pure hard work and dedication.

AUGUST
John Denham MP proposes plans to stop the ‘studentification’ of areas, by restricting houses in multiple occupation (HMOs). Unfortunately, these plans not only affect students. Property experts say that using planning laws to restrict HMOs will raise rents and drive out the students, young professionals and migrant workers who rent them because they are an important source of affordable housing.

SEPTEMBER
Is your landlord claiming to be a professional? Many thousands of tenants are using landlords who claim to be professionals yet lack even the most basic understanding of how to manage their lettings business. Mynlalandlord.org.uk allows tenants to check whether their current or prospective landlord is claiming to be a member of the NLA. If so, the landlord will abide by the highest standards of private-residential letting.

OCTOBER
Proposals outlined by the Financial Services Authority (FSA) aim to bring buy-to-let within the FSA’s regulatory regime to ‘protect consumers making investment decisions on property’. The NLA feels the ‘devil is in the detail’ and although increased protection for smaller, less experienced landlords may be welcome, professional landlords who treat their lettings as a business will not require the same level of protection.  

NOVEMBER
The NLA National Conference sees landlords from around the UK question Ian Austin MP in a longer than scheduled question and answer session. Landlords are keen to discover exactly how a national register would root out the rogues. LHA, the licensing of letting agents and tenancy deposit protection are also discussed, but the landlord register remains the controversial topic for discussion and is returned to again and again. Austin admits ‘we want to tackle the minority of rogue landlords.’

DECEMBER
An unexpected Christmas present arrives in the form of a Government review of LHA - with the agreement to re-examine direct payments to landlords and allow tenants to keep the £15 excess on their housing benefit. The NLA, along with housing charities, welcomes this, but warns that the ‘consultation is by no means perfect’. The NLA continues to campaign for proper safeguards which ensure councils are able to deal with tenancies that get into difficulties quickly and effectively.

David Salusbury, Chairman, NLA, commenting on this year’s events, said:

“Undoubtedly the past 12 months have been challenging for landlords. Despite this, the role of the private-rented sector has been recognised as increasingly important. The housing shortfall needs to be filled and the private-rented sector has an important role to play in providing this much needed housing.

“The coming year does look more positive, rental prices seem to be improving as a number of ‘reluctant’ landlords leave the rental market and the demand for rental property increases. We now hope to see lenders release the purse strings and start lending again, to kick start the buy-to-let market.

“In 2010 the NLA will continue its campaigning successes by lobbying Government on the issues that affect landlords. Continued links and discussions with key stakeholders will also ensure the NLA is at the heart of influencing the private-rented sector.”

All media enquiries including enquiries for interviews:

Ellie Irwin
Press Officer, NLA
Email:
Tel: 020 7840 8925
Mob: 07833 683 281

Notes to Editors:
Representing landlords from all over the UK, the National Landlords Association (NLA) is the leading organisation for private-residential landlords. It campaigns for the legitimate interests of landlords by seeking to influence decision-makers at all levels of government and by making landlords’ collective voice heard in the media. The NLA helps landlords make a success of their lettings business by providing a wide range of information, advice and services. It seeks to raise standards in the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities.