The Advertising Standards Agency’s (ASA’s) ruling that all letting agents must clearly present their fees upfront will help vulnerable tenants, according to the organisation’s chief executive.

Guy Parker told ARLA that increased transparency will make it easier for people such as first-time renters and students to enter the sector and will prevent them feeling ostracised when looking for a home.

He commented: “For those who are new to the rental market, like students, navigating it can be particularly difficult. That’s why the ASA is clamping down on letting agents who hide fees.”

Mr Parker also said that renting a property is a significant commitment and the new ruling will make sure “that letting agents need to get their houses in order and treat potential tenants fairly”.

The ASA’s new regulations mean agents must present information concerning all of the fees they charge upfront. If this is not possible, they are required to make tenants aware that there will be extra costs on top of those advertised.

Let us know your thoughts…

One in three buy-to-let landlords avoid paying tax on their rental income, according to Exaro.

The investigative journalism website found that around one million private landlords failed to declare any income last year, compared to the 1.9 million who did. It claims this evasion results in a cost of £550 million for UK taxpayers.

Richard Murphy, the co-founder of the campaign group Tax Justice Network, told the Metro that HM Revenue and Customs (HMRC) needs to take action against these individuals.

“This has long been known as an area where people do not declare income. If they are not asked, they do not declare it,” he commented.

A source from HMRC said this is a “significant issue” and the £550 million is money “we should have”.

It is a legal requirement that landlords who are not part of the self-assessment tax scheme declare their rental income by October 5th of the following tax year.

Let us know your thoughts…

Rent arrears among tenants of social landlords taking part in a trial of the Government’s flagship benefit reforms have soared.

The pilot is testing out the effects of paying the tenants their rent money, and trusting them to pass it on to their landlords.

Although private sector landlords of tenants on Local Housing Allowance have been familiar with this system, in the social sector landlords have been continuing to get housing benefit paid to them.

In one trial in South Wales, there has been a seven-fold rise in rent arrears in just seven months from £20,000 to £140,000.

Social landlords in the Torfaen area are now warning that there will be more evictions if the trend continues after the system is fully adopted when the Universal Credit system comes in.

Private landlords of LHA tenants have been arguing that the system is depriving them of rent, with arrears increasing, and that as a result, more private landlords are turning their backs on the benefits sector.

Government ministers say that receiving their own money for rent will help people on benefits to manage their finances better.

Torfaen is one of six areas where the Department of Work and Pensions is running trials ahead of the launch of Universal Credit this autumn.

Bron Afon Community Housing, the biggest social housing landlord in Torfaen with 8,000 properties, has 950 tenants receiving direct payment of their housing benefit.

Chief executive Duncan Forbes described the rise in arrears to almost £140,000 as “significant”, adding that a large proportion of the tenants had not been in arrears previously.

“That was a group of people who had a good track record of payment and pretty low level of arrears, thrust into a position where they are now in significant arrears,” Forbes told the BBC.

“At the same time we’ve increased our staff levels by about double what we would normally put into income recovery.”

The other areas where the trials are taking place are: Edinburgh, Wakefield, Shropshire, Oxford and Southwark in London. In Wakefield the increase in rent arrears is 9%, and in Edinburgh, Oxford and Southwark the increase is around 30%.

Southwark Council is predicting that it will incur £14m in arrears if direct payment is introduced to all its tenants.

The Department for Work and Pensions said it will use the pilots to learn lessons and ensure the scheme is effectively implemented.

Minister Steve Webb said: “We currently pay housing benefit directly to one million people in the private sector and that works pretty well.

“We are trying to treat people in council houses the same way, but we want to get it right.”

Let us know your thoughts…

Six out of ten tenants do not think they will ever own a home, according to a report by Castle Trust.

The housing investment and mortgage provider found that three million social renters and 1.5 million private tenants do not expect to buy a property.

Meanwhile, of the three million people who do envisage themselves owning a home, half think it will be at least five years before they look to buy.

Earlier this year, Castle Trust carried out research that showed the number of renters in the private sector grown substantially. There were 3.8 million private tenants in 2012, which is an increase of 23 per cent on the 3.1 million figure for 2008.

Sean Oldfield, chief executive officer at Castle Trust, said: “Many people are either unable to get on the property ladder or stuck in their current home, despite interest rates still being at an all-time low.”

Let us know your thoughts…

The cost of renting a property in Greater London will soon be double the UK average, according to an industry expert.

Ian Fraser, managing director of HomeLet, said the typical rent in the capital is already 89.9 per cent higher than in the rest of the country, which is the highest difference on record.

In light of this, he claimed it is likely to “only be a matter of time” before costs in London are twice that of the British average.

Mr Fraser’s comments were made alongside the results of the latest HomeLet rental index. Its research found that the typical cost of renting increased by 3.9 per cent over the past year to £777 per month. However, it remained unchanged between January and February 2013.

Let us know your thoughts…

An 80-year-old convicted sex offender, who has come under fire for his boarding homes in Ayer and Littleton that provide housing for recovering addicts and sex offenders, was cleared of allegations that he grabbed a female tenant, spit on her and flashed his private parts.

After a one-day trial on Tuesday, an Ayer District Court jury found Hugh Ernisse, of 128 Washington Ave., not guilty of assault and battery, intimidation of a witness, open and gross lewdness and interfering with police.

Prosecutors had alleged that on Feb. 23, 2012, Ayer police received a report from a woman who said she got into an argument with Ernisse after she accused him of entering her room and stealing items. Ernisse, who was wearing a robe, was accused of grabbing the woman, spitting on her and then flashing her.

Ernisse told police the woman made up the story because she hadn’t paid her rent.

This is one of several cases Ernisse has pending in Ayer District Court.

Let us know your thoughts…

A THREE-MONTH nightly curfew has been imposed on a man who assaulted his girlfriend’s landlord at a property in Newquay after an argument over noise.

Kevin Brentnall, 31, of Trebarwith Crescent, Newquay, appeared before Bodmin magistrates on Monday when he pleaded guilty to assaulting Samuel Taylor by beating on August 24. He had originally denied the charge.

Mr Taylor had gone to the property because he heard loud talking coming from Brentnall’s girlfriend’s flat and was concerned that others in the block who needed to get up for work would not be able to sleep, said Julia Cox, for the prosecution.

Brentnall, who was at the property, became aggressive and there was an argument during which he punched Mr Taylor to the head. Mr Taylor then fell to the floor and Brentnall kicked him once while he was on the ground.

Ms Cox said that Mr Taylor had suffered a cut and bleeding nose and a tender arm and had to make repeated visits to his GP because of worsening headaches which eventually led to him having a CT scan which did not raise any further concerns.

Brentnall, who has previous convictions for offences including dishonesty and possession of drugs, admitted that the assault breached a conditional discharge imposed for shoplifting.

The court was told that since the assault he had received a suspended prison sentence for another assault but was engaging well with probation and had tested negative for heroin, a drug which had been an issue for him in the past.

Brentnall was ordered to pay Mr Taylor £150 compensation as well as being curfewed from 9.30pm to 7am on Wednesdays and Thursdays, and from 7pm to 7am the rest of the week.

Let us know your thoughts…

A DARTFORD landlord who locked his tenants out of their flats by changing the locks has been fined.

Sundra Tony Padayachee, 51, of Dene Road, pleaded guilty to altering the locks on three different occasions during 2011 at the flats he rented to tenants in West Hill.

A Dartford Council prosecution under the Protection from Eviction Act 1977 saw Padayachee brought in front of magistrates in Dartford on February 12.

He admitted four counts of harassing an occupier to give up occupation of a premises.

Magistrates fined him a total of £600 and he was also ordered to pay £200 in costs.

Dartford Council’s portfolio holder for housing, Councillor Pat Coleman said, “We’re satisfied with the outcome of this case.

“It sends out a clear message that action will be taken by the council to deal with landlords who break the law.

“The majority of the borough’s landlords are responsible and law abiding and we work with them to offer both landlords and tenants support and advice on their rights and responsibilities.”

Let us know your thoughts…

The private rental sector is becoming increasingly concerned about the growth of the ‘rent to rent’ phenomenon, according to landlord insurance and tenant referencing company LetRisks.

This development sees individuals renting a property and then sub-letting it at a profit, often without their landlord’s or letting agency’s consent.

Some tenants have even signed contracts for multiple properties and then rented them to unsuspecting third-parties who are not aware of the true situation.

While sub-letting a home is not illegal, it does require the property owner’s consent. It is often not in a landlord or agency’s interest to allow sub-letting as there is no contractual agreement between them and the occupier, which could cause disputes to arise.

Michael Portman, managing director of LetRisks, said: “We urge landlords to be aware of this and to seek advice if they discover that their property is being sub-let without permission, as all sorts of problems can arise.”

Let us know your thoughts…

Letting agents are marketing illegal properties, a BBC programme alleged last night.

It named an agent, which according to its website, is an NAEA member. The property shown was a flat without any external windows, behind a fake garage door, being let out for £1,000 a month to a family whose first language is not English.

Inside Out, broadcast in London, also drew attention to a new generation of ‘beds in sheds’ – more upmarket, generally well built structures at the end of gardens, but which had nevertheless been built without any planning permission.

The programme said that many owners claimed the new-looking properties had been built four years ago, meaning that they could no longer be subject to enforcement action. Inside Out described the properties as being under the radar, and despite their better appearance sub-standard.

In the case of the 1930s block of garages, Inside Out showed a flat without windows, where the tenants said they were paying £1,000 rent a month. The agent was named as Milestone, of Willesden, which displays the NAEA and TPO logos on its websites.

Milestone denied to the BBC that it even had the property on its books and asked the reporter to leave.

Ombudsman Christopher Hamer appeared on the programme, saying that it was agents’ responsibility to make further inquiries about the properties they are handling.

Let us know your thoughts…