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Local housing allowance rate increase welcomed
E state agents need to embrace change and technology to survive the impact of the Cvoid-19 financial fallout. That’s the view of online property portal Residential People, which believes many high street agents could suffer significant losses due to unprecedented times. It says that as self-isolation and lockdown guidelines continue, agents should use technology to continue to generate business. The portal’s co-founder and director, Christopher May, said: “The property sector has faced big crises in the past and bounced back, so I see no reason why the market shouldn’t do the same this time around. Residential People strongly believes that the industry has the ability to not only make it through the dark days that lie ahead, but to expand to new heights, just as long as the sector is ready to embrace change.” His views were echoed by Sam Massey, head of professional training and qualifications for SDL Property Management. He added that as well as people within the industry, MPs had also spoken out following a debate on the issue. “The debate was hosted by Estate agents are urged to embrace tech in wake of Covid-19 crisis Labour MP Hilary Benn, who said some leaseholders in Leeds were paying an extra £670 every month, in addition to service charges and their mortgage, to cover a ‘waking watch’ because of fire safety risks in their building,” Mr Massey said. “During the same meeting, David Lammy, MP for Tottenham spoke about 432 local flat owners who could not get a mortgage or re-mortgage because of dangerous cladding on their building.” Fexco Property Services’ chief executive Niall McCann said the company was “proud to be part” of the coalition that had taken action.
T he government’s decision to increase local housing allowance (LHA) by 30% of local market rents in response to the coronavirus pandemic has been welcomed. A spokesman from London Councils said the move was a big step forward in preventing homelessness. They added: “The government has made the right call. Raising
and inadequate LHA rates have been a key factor behind growing numbers of private sector tenants falling into arrears and losing their homes. “Our research last year found 45% of the 200,000 Londoners claiming LHA did not receive enough to cover their rent. Only 8% of private sector rents across the capital are covered by current LHA rates.”
local housing allowance is a big step forward in preventing homelessness. “Boroughs are concerned the combination of Covid-19’s economic impact and London’s severe housing pressures still threatens a spike in homelessness – but this decision will help keep many Londoners secure in their homes. “In London, we face the worst homelessness crisis in the country
Coronavirus measures for landlords are welcomed
G overnment action to coronavirus outbreak has been welcomed by the UK’s leading landlord organisations. The Residential Landlords Association and the National Landlords Association said the three-month buy-to-let mortgage payment holiday would take pressure off support landlords and tenants affected by the
because of difficulties arising from the current situation. There does need to be some flexibility, though, such as with dealing with a tenant engaging in anti-social behaviour. “We would like to see further measures taken including pausing the final phase of restricting mortgage interest relief to the basic rate of income tax due in April.”
landlords. The organisations said in a joint statement: “Our priority is to ensure that tenants are secure in their homes during this crisis. The mortgage payment holiday will take a lot of pressure off landlords enabling them to be as flexible as possible with tenants facing difficulties with rent payments. No responsible landlord will be considering evicting tenants
Industry coalition demands cladding emergency fund
P roperty management companies and industry leaders have joined forces to demand an emergency fund from government to make buildings with cladding safe. A total of 20 organisations joined campaigners and residents to send an open letter to Chancellor Rishi Sunak asking the government to support leaseholders left to pay the price of unsafe cladding. The move follows new evidence that revealed the scale of the cladding crisis in the wake of Grenfell could affect up to 500,000 people. The Association of Residential
Scanlans, said leaseholders were being left to find thousands of pounds to resolve a situation which was not of their making. He added: “Those wanting to sell are unable to do so while their properties are ‘blighted’ by the presence of cladding or other materials on their buildings which, according to the latest government guidance, is unsafe. “Recourse to the original developers is difficult and most blocks fall outside of building warranties. “There are hundreds of blocks of apartments in a similar situation up and down the country, affecting many thousands of leaseholders.”
Managing Agents (ARMA) is one of the organisations that signed the open letter. ARMA’s CEO Nigel Glen said: “The Grenfell tragedy highlighted the dangers of ACM cladding, but it has also revealed a much wider building safety crisis which could affect over half-a- million people. “These buildings are being fixed by building owners and managing agents as quickly as possible but, without Government support, the process could take decades and leave leaseholders with life- changing bills on top of the anxiety that has already been caused.” Ian Magenis, a partner at
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ISSUE 106
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