LEADING AUTHORITY IN LETTING INDUSTRY PREDICTS DRAMATIC INCREASE IN THE PRIVATE RENTED SECTOR
July 2009
Tenants and Landlords Warned to Use a Reputable Agent
More people are opting to rent rather than buy with the private rented accommodation sector forecast to rise by 13 per cent over the next five years - according to latest research from a leading property authority. But tenants and landlords are being warned to watch out or risk facing huge losses.
The research, carried out among letting agents in the UK, indicates that the majority of letting agents (89 per cent) believe the lettings industry will grow over the next five years and names employee mobility, possible increases in interest rates, shortage of affordable housing and the availability of personal finance for investment in buy to let as the main reasons for growth.
Looking at property currently in demand, the research shows that there is an almost even split between the different sizes of property from one bedroom flats to four and five bedroom detached and that the most popular 'features' are space for parking, a good bathroom with shower and, as ever, a good location close to amenities.
When it comes to the most 'interesting' property available to let, the list includes a 9ft by 9ft studio flat for £130 per week in London, a detached house with a listed pig sty, a Victorian Town Clerk's house next to a Bishop's Palace, a mill house with a mill race running under the house and, as one upbeat lettings agent said, a property that does not let in two days!
But despite the growing popularity of buy-to-let investments or opting to rent rather than buy, the National Approved Letting Scheme (NALS), a government-backed code of standards for letting agents, is warning that it is essential to use an approved letting agent to ensure the let is hassle-free and financially sound.
And in order to help tenants and landlords, NALS is today launching a free factsheet and website for consumers to help people through the minefield of the private rented sector. The factsheet provides the essential facts on letting without risk. The website, as well as giving information to landlords and tenants, also provides a full on-line directory of all agents who are members of NALS, and therefore operate within the scheme, so that tenants and landlords can seek out a NALS agent in their area.
The National Approved Letting Scheme is a collaboration between the main property professional bodies, the Association of Residential Lettings Agents (ARLA), the National Association of Estate Agents (NAEA), the Royal Institution of Chartered Surveyors (RICS) and NALS has established best service standards for its members who, in exchange, are entitled to use the NALS logo in their marketing and as a window display to give landlords and tenants a visible assurance of quality service. At the same time NALS will help offer protection to the public - both landlords and tenants - from inexperienced or incompetent agents who often operate without even a minimum level of professional indemnity insurance.
Says NALS Chairman, Ted Watts: "The private rented sector continues to grow but so, unfortunately, do the number of horror stories. Would-be tenants and landlords must use an agent with the NALS logo in the window to ensure they are using a company that abides by an industry standard and that they have a form of re-dress if things go wrong. Almost three quarters (72.5 per cent) of letting agents believe that the internet is the way forward for landlords and tenants and we believe the NALS website, with information and a directory of NALS agents, will help potential tenants and landlords to make the right choice. Our free factsheet will also provide some of the essential information they need."
The launch of the NALS factsheet and website coincides with the unveiling of the Private Rented Sector Forum's Best Practice Note, A Guidance Note for the Letting of Residential Property in the Private Sector.
Minister for Housing Nick Raynsford, who spoke today at the launch of the Guidance Note and the unveiling of the National Approved Letting Scheme research and website, welcomes NALS:
"Landlords and tenants need an agent they can trust to do a good job. We can't let the cowboys continue to tarnish the image of private renting as a whole. We need a single 'British Standard' for letting agents to guarantee a level of service and that's why I support the National Approved Letting Scheme. I want to see a significant increase in the number of agents displaying the NALS logo and I urge those who have not yet joined the scheme to consider its numerous benefits."
Said Frances Burkinshaw, Chairman of the Association of Residential Letting Agents, ARLA: "This is a superb opportunity to ensure that the public is kept fully aware that there are standards in the Private Rented Sector that can, should and will be satisfied."
Hugh Dunsmore-Hardy, Chief Executive of the National Association of Estate Agents, NAEA, says: "The National Association of Estate Agents is wholly committed to the standards set by NALS being nationally recognised by landlords and tenants as providing a guaranteed level of service."
Christopher Legrand, Director of the Residential Faculty of the Royal Institution of Chartered Surveyors, RICS, says: "RICS supports all initiatives to provide high standards and better consumer protection. It is for this reason that the RICS sees the NALS logo as a visual assurance of good practice and has supported the NALS initiative."
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