Tenants at potential risk, says Belvoir

Labour’s anti-business plans could lead to industry contraction for the PRS and make thousands of tenants homeless, says Belvoir
 
March 13, 2015 - PRLog -- Dorian Gonsalves, Director of Commercial and Franchising for Belvoir, warns that flawed proposals in Labour’s manifesto are likely to result in industry contraction for the private rental sector (PRS) and could ultimately make thousands of tenants homeless.

“There has been increasing press coverage about Labour’s plans to outlaw tenant fees and introduce other flawed policies such as rental caps and long-term rental agreements,” says Dorian. “The Labour party is blatantly targeting the PRS to try and win votes from the UK’s nine million renters. However, in my opinion their proposals are not only anti-letting agents, they are also anti-business and will in fact harm tenants - the very people that Labour say they want to help.

“The most recent figures released by the Office of National Statistics estimates that for the year ending September 2014 net long-term migration to the UK was 298,000 and yet the number of new homes built last year was only 118,760. A combination of high migration figures, low new builds, plus the difficulties that people face in obtaining mortgages and changes in lifestyle choices, such as increasing numbers of single parent families, means that many more rental homes are needed in this country. The numbers simply do not add up.

“An independent report on the PRS in England (Private Rented Sector 360 Degrees) published last month by industry expert Kate Faulkner provided an in-depth analysis of the impact of proposed housing polices. Leading members of the industry including Belvoir, ARLA, British Property Federation, RICS, The Property Ombudsman Ltd (TPO), Chestertons, Concentric Lettings, Countrywide, Leaders, Knight Frank, Savills and Your Move supported this report. The conclusion was clear - it is not the PRS that needs remedying in this country, but the supply of social and affordable homes.

“The majority of letting agents work extremely hard on behalf of tenants as well as landlords and it is completely appropriate that tenants bear the cost of this work rather than landlords. Outlawing tenant fees will simply mean that tenants will suffer, with letting agents unable to provide them with the standards of service and levels of protection they deserve. Tenants could easily become vulnerable to rogue private landlords who may try to take advantage of them by illegally charging for maintenance issues, failing to carry out regular property checks and leaving them without redress to The Property Ombudsman.

“If landlords are forced to bear the brunt of increasing costs, but are unable to increase rents to help cover them, many are likely to sell up or put their property to different use, further reducing the level of good quality rental properties in this country. As a result, thousands of tenants could become homeless, because there will be nowhere for them to go.

“I firmly believe that Belvoir is in a strong position to cope with the effects of any proposed changes to legislation. However, I also believe that these changes could result in the industry contracting as landlords exit the market and independent agents find it difficult to survive. In the long-term, the more contracted the PRS becomes, the more likely it is that private landlords will require the services of skilled letting agents like Belvoir franchise owners to help them remain on the right side of the law regarding new policies such as long-term tenancies, rental caps, and minimum standards for energy performance for rented properties.

“I am encouraging all Belvoir franchise owners to write to their tenant and landlord clients in order to make it very clear to them that if Labour gets into power at the next election they will implement proposals that will result in increased landlord fees, and this will either force landlords to increase rents to help cover their costs or cause them to sell up, which could put thousands of tenants at risk of losing their homes.”

ENDS

• Belvoir now has more than 160 offices nationwide. To find your nearest Belvoir office, visit their website at www.belvoir.co.uk

NOTES TO EDITORS


·       Belvoir was founded in February 1995 by Mike and Stephanie Goddard. Its Central Office is in Grantham, Lincolnshire.

·       Mike was chairman of the bfa for three consecutive years and is currently the Chief Executive Officer of Belvoir. Dorian Gonsalves is Director of Commercial and Franchising. Dorian sits on the Board of The Property Ombudsman.

·       Belvoir is recognised as one of the largest specialist lettings agency franchises in the UK, with 160 offices nationwide and aims to have 200 franchises in the next three years.

·       Belvoir was officially awarded the Best Lettings Agency Franchise – Gold Award at the 2014, 2013, 2012 and 2010 Lettings Agency of the Year Awards in association with The Sunday Times & The Times. Belvoir also won the Silver Award in 2011.

·       Belvoir was voted Best Large Lettings Chain at the Estate & Letting Agent Awards (ESTAs) 2013, which was hosted by Phil Spencer, and won Silver in 2014. Belvoir has won Brand Builder of the Year at the bfa Franchisor of the Year Awards 2011 and Best Marketing Campaign of the Year at the Franchise Marketing Association (FMA) Awards 2011.

·       Belvoir is a founder member of the SAFEagent Kitemark scheme, which is fully supported by NALS. SAFEagent promotes client money protection (CMP) and provides consumers with a clear message on those agents they should do business with.

·       Belvoir successfully listed on the AIM market of the London Stock Exchange on 21st February, 2012.

·       Belvoir won the Gold Award for Franchisor of the Year, at the Negotiator Awards 2014.

For further information or to arrange an interview with Dorian Gonsalves please contact Andrea McHugh, Headlines Journalism, tel: 01476 567438/07940 930 331

email: andrea@headlinesjournalism.co.uk
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