Deposit alternative platform Reposit has signed new deals with three big estate agencies.

SW firms Symonds & Sampson and Webbers plus Northern agency Bradley Hall all now offer their landlords and tenants the Reposit service.

The new partnerships also coincide with a 69% increase in sales for Reposit during December compared to the same period in 2022.

Surge

Reposit says this surge in demand highlights the growing recognition among agencies of the product as a valuable alternative to the conventional cash deposit.

Symonds & Sampson, which operates in Hampshire, Dorset, Wiltshire, Somerset, Devon and Cornwall, is offering an alternative to the cash deposit for the first time in its 166-year history.

Shared

Ben Grech, CEO at Reposit (main picture), says: “These partnerships reflect a shared vision for efficiency and customer-centric solutions while offering a practical solution for agencies navigating the ever-changing rental landscape.”

Reposit’s deposit alternative fits with our goal to provide efficient, customer-focused solutions.”

Rachael James, Head of Lettings, Symonds & Sampson

Rachael James, Head of Lettings at Symonds & Sampson, says: “We are excited to partner with Reposit to enhance the rental experience for both landlords and tenants.

Since partnering with Reposit, Symonds & Sampson has provided its landlords with over £96,000 in cover, including £36,000 of additional cover to what they would receive with a cash deposit.

Tenants pay a one-week non-refundable fee instead of five weeks’ rent with the Reposit plan. And landlords receive up to eight weeks’ worth of cover against rent arrears and dilapidations.

Bradley Hall is based in the north east, and Webbers covers Cornwall, Devon and Somerset.

Don’t believe the naysayers. Tenants who ‘zero deposit’ are better off in the long run

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Two thirds of private renters experienced a problem with the quality or condition of their property during the past six months, research from the TDS Foundation reveals today.

While 40% of tenants did not have any problems, 60% encountered one or more problems, the report reveals.

TOP FIVE

The five most common problems included leaks or dodgy plumbing (21%), difficulties keeping their home warm (20%), repairs not being carried out (18%), serious problems with damp or mould (16%) and outside doors, walls, roofs or windows being in need of repair (16%).

Of this group, 85% reported these problems to their landlord or letting agent, with over three quarters (78%) saying the issue was either fully or partially addressed.

The minority of tenants who did not report the issues to their landlord or letting agent said this was due to a perceived ineffectiveness of reporting (30%), the hassle involved (27%), fears about not being seen as a “good tenant” (23%) and concerns about potential rent increases (22%).

REPORTED

Dr Jennifer Harris, Head of Policy and Research at TDS Group, says: “Whilst a large proportion of tenants are experiencing problems with the condition of their property, they are being addressed by landlords in a majority of cases when they are reported.

Dr Jennifer Harris, TDS Group

“That said, it is worrying that over one in ten tenants who had problems with their homes did not feel confident reporting it.”

And she adds: “The Government’s plans to reform the rental market, including developing a decent homes standard for private rented housing, need to ensure tenants feel confident to speak out where their homes meet all required standards.

“The TDS Foundation will continue to work to ensure tenants fully understand and make use of their rights when calling out the minority of landlords failing to tackle poor quality housing.”

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A former director of a lettings company has received a suspended prison sentence for defrauding seven landlords.

Linda Murray, aged 40, who was a director of 12-year-old firm Let Me Lettings in Wigan, was given a 20-month sentence suspended for two years.

£6,000 lost

Wigan Trading Standards, which led the prosecution, received complaints from seven landlords, about nine different properties, with over £6,000 lost due to fraud.

Murray, of Ellerthwaite Road, Windermere, faced eight counts of fraud under the Fraud Act 2006. Her company charged landlords for a service that included managing their properties and taking tenant deposits, Bolton Crown Court heard.

The deposits were supposed to be held in the Deposit Protection Service (DPS).

Guilty plea

Murray pleaded guilty to not placing the money with the DPS, and misleading both landlords and tenants. During her trial it was highlighted by Wigan council lawyer David Birrell that “she even charged landlords a fee for placing their deposits with this tenancy deposit service” but then failed to do so.

Rather than a custodial sentence, she has been given 30 days’ rehabilitation, disqualification from being a company director for seven years, and ordered to pay £3,660 in compensation, The Mail reports.

Read more about deposits.

Photo credit: Google Streetview.

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Shawbrook Bank has helped a professional landlord to refinance a large portfolio of 36 properties in a £20 million deal, it has been announced.

The landlord, based in the Greater London area, wanted to overhaul their portfolio with a £19 million loan, plus £1 million capital to fund future investments and renovate existing properties.

The specialist lender provided the full loan amount on a 10-year term, fixed for five years, at 57% LTV after the landlord was introduced to Shawbrook by Business Finance 1st Limited.

Streamline

Shawbrook says gaining a deeper understanding of the client’s business and future plans helped to streamline the process, with credit approval received before the valuation was instructed and mitigating the risk of further obstacles to a swift pay-out.

A 36-property portfolio is not simple.”

Jas Bhogal, Senior Regional Development Manager at Shawbrook (main picture), says: “Applying our relationship banking approach to this case was crucial as we could take the opportunity to understand the exact needs of the client, their future business plans and this helped us formulate the best way to support their funding needs.

“A 36-property portfolio is not simple, but I’m delighted that we could take the time to provide a personal and practical funding solution for this professional investor.”

This was a large portfolio refinance.”

Laurence Foux, Director at Business Finance 1st Limited, says: “In a world of technological enhancements, it’s nice to see Shawbrook tailoring their approach to cases that require a more hands-on approach.

“This was a large portfolio refinance and it was great to see the team meeting the client, taking the time to understand their ambitions for the portfolio and providing funding to support them.”

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A decline in the number of renters and more available stock has returned balance to London’s lettings market, latest data from Foxtons reveals.

The number of new renters in the capital decreased 24% month-on-month in December  with demand 12% lower than in 2022 while overall stock levels in 2023 were 13% higher than in 2022.

MORE BALANCED

The London estate agent says that the year-on-year decrease of 22% in new renters per new instruction shows a shift towards a more balanced lettings market.

While the number of renters per new instruction has decreased across London, figures remain high in South London with 24 renters per instruction, as well as West and East London’s 23 and 22 renters respectively.

Gareth Atkins, Foxtons

Gareth Atkins, Managing Director of Lettings at Foxtons, says: “Our belief is that the 2024 London Lettings market will be a far more traditional market than we have seen since 2020.

“Our expectations are for volumes to rise with seasonality over spring and summer before plateauing in Q4 offering more predictability for renters and landlords despite the General Election on the horizon.”

Foxtons also revealed that the firm has seen a sharp uplift in both the number of sales applicants entering the London market in the last 30 days, as well as the number of viewings being scheduled across the firm’s 50+ branches.

AHEAD OF THE CURVE

Guy Gittins (main picture), Foxtons Chief Executive, adds: “It’s fair to say that as planned, we are ahead of the curve when it comes to delivering the right results for our clients and customers.”

Meanwhile rival Chestertons reports an end of ‘Covid Tenancies’ has boosted the number of available rental properties by 45%.

The agency believes that a large number of three-year tenancies agreed by tenants at lower-than-average rates during the pandemic have now come to an end.

PANDEMIC EFFECT

Adam Jennings, Head of Lettings at Chestertons, says: “At the height of the pandemic, rents dropped considerably and gave tenants the opportunity to secure a property that they might not have previously been able to afford.

Adam Jennings, Chestertons

“To give both, the tenant and landlord, a greater degree of security during those unsettling months, many of the tenancies agreed were for up to three years.

“These contracts are now coming to an end and many of the properties are now coming back onto the market, giving tenants looking to move a greater choice.”

Chestertons is forecasting a 5% increase in rents across the UK and London in 2024, followed by 3-3.5% in 2025 as the accumulation of new supply begins to soak up demand.

Source: Foxtons

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A million more rental homes are needed to meet the rocketing demand in most parts of the country, Savills warns.

And most of the new properties for rent have to be suitable for families, the estate agency says.

Savills is calling for an extra £250 billion of investment in the country’s property industry in order to tackle the housing crisis, The Times reports.

£60bn waiting

Just over 10,000 build to rent homes have so far cost £3.5 billion, and to create another million by 2031 would cost £250 billion, Savills estimates.

The agency says there is £60 billion waiting to be invested into the build-to-rent sector, mostly into houses rather than flats.

Build-to-rent can help to deliver many more homes, more quickly.”

Jacqui Daly, Director of Residential Research, Savills

Jacqui Daly, Director of Residential Research at Savills, says: “We need to adopt a positive response to the housing crisis, across all tenures.

“Build-to-rent can help to deliver many more homes, more quickly, and secure investment that improves the energy efficiency of the private rented sector, while meeting the needs of young, middle-income households.”

Huge increase

Average rents were nearly 9% higher last year compared to rents recorded in 2022, the latest Rental Index from Goodlord revealed earlier this month.

Despite month-on-month rents dropping slightly from November 2023 to December 2023, year-on-year figures show rents hugely increased throughout the course of 2023, with several records broken during the summer.

Across 2023 as a whole, average rents across England rose by almost 9% when compared to 2022.

Bullish landlords bounce back despite rate rises

Landlords turn back on buy-to-let as mortgage costs rise

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A record 50,000 limited buy-to-let companies were set up across the UK last year, despite a sharp fall in the number of homes bought by landlords.

The figure surpasses by 3% the previous record of 48,540 in 2022, according to Hamptons.

As investors faced higher mortgage rates, limited companies set up to hold buy-to-let homes accelerated to benefit from more favourable tax rules.

Largest pick-up

Hamptons says Scotland recorded the largest pick-up, with an 8.4% year-on-year uplift in the number of new companies set up.

The South West and North East were the only two regions of the UK to record a small fall in the number of new limited companies.

A record 58% of limited company buy-to-lets in the North East were held in a company that was set up outside the region.  This reflects how landlords from across the UK are targeting higher yielding buy-to-lets.

Active

At the start of this year there are a total of 345,426 active limited companies designed to hold buy-to-let property, up 11.6% from 309,643 at the beginning of 2023.

Of the 615,077 limited company buy-to-let properties, 75% (458,838) have a mortgage charge against them.

Over the last 12 months, there was a 21.9% increase in the number of homes held in companies with a single property.  This compares to a 3.8% increase in the number owning 20+ homes.

The number of homes being put into a corporate structure will remain high.”

Aneisha Beveridge, Head of Research, Hamptons

Aneisha Beveridge, Head of Research at Hamptons, says: “Despite last year’s slowing sales market, there was no let-up in landlords rushing to incorporate.

“For as long as landlords continue rolling off cheap fixed-term mortgages onto rates which are twice or triple what they were paying, the number of homes being put into a corporate structure will remain high.”

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Letting agent RSB has been ordered to repay a ‘holding deposit’ of £500 to a tenant who agreed to take a room before being told about ‘extra charges’.

Andrea Aakanksha took up a room in a flat in Shepherd’s Bush, west London, after seeing it advertised on Spareroom.co.uk, and a viewing.

The advert said: “All bills included — Gas, TV licence, electricity, wifi, water and council tax.”

Charges added

Picture: Google Street View

But after she accepted the room in Goldhawk Road (pictured), letting agency RSB Estate Agents then added a DPS admin charge of £85, a reference fee of £85 and an energy bill charge of £86.66.

Aakanksha said the additional charges pushed the room rent from the agreed £850 per month (weekly £200) to £936, which pushed it outside of her budget.

Teerat Singh from the agents said the ‘holding deposit’ was not repayable as Aakanksha had pulled out on the day she was due to move in last year.

Prohibited payment

The Property Tribunal decided the deposit had to be repaid, according to the Tenant Fees Act 2019.

“In our judgement, the holding deposit is repayable. There are a number of legal routes to reaching this result, but they all result in the same conclusion,” said Judge Adrian Jack.

The holding deposit was paid on one basis, namely that there would be no energy charge.”

“It is common ground that the agents demanded a holding deposit of £500. This was more than one week’s rent. Accordingly, they demanded a “prohibited payment”. This is in breach of Section 2 of the Act.

“The holding deposit was paid on one basis, namely that there would be no energy charge (save for a possible £20 charge for excess usage) and no other charges; yet the landlord and the agents sought an agreement for more money.

“This is directly contrary to the terms of the Spareroom advertisement”, he said.

Read the full judgement here

More from the Property Tribunal

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