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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

Charity Claims Young Tenants Lose out Because of Gazumping And First Come First Served Basis

19th Apr 2022

The Step by Step homelessness charity has jumped on the anti – landlord bandwagon by demanding that rival rental bidding on PRS homes must be ‘outlawed’ as it stops the poorest of younger tenants from being housed.

Image credit: Pexels

The charity believes that landlords’ apparently encouraging rental bidding wars within the PRS, are “taking advantage” of the demand over supply crisis by taking on applicants willing to stump up six months in advance.

Chair spokeswoman of the charity, Susan Muckart, is adamant that young people cannot afford to enter into a rental bidding war, as the majority are having to face countless challenges in these inflation busting times.

She said: “As the need to bid for a property becomes more commonplace, the likelihood of a young person securing their own property declines. Young people who have faced challenging upbringings and experienced homelessness will be at an immediate disadvantage.”

The charity has just released a statement claiming that landlords used to solely award tenancies on a first come first-served basis upon the potential renter passing reference and credit checks and able to afford the deposit.

But the charity further claims that currently some landlords are telling prospective tenants to send them a written application detailing their background, who they are and how much they are able to bid on either the monthly rent they are willing to pay or how much they can pay upfront.

It says landlords are now making their decision after finding out who is able to afford pay more than the advertised rent and their detailed application is the most impressive and “Applicants are often gazumped by those offering to pay up to 25 per cent more rent”.

The charity states that because of the supposed ‘dark arts’ of actually carrying out proper background checks  younger people are unsuccessful in their attempts to be housed, and advertised rental prices are hiding the fact that they are only a minimum bid amount, which further exacerbates the issue.

Another Step By Step ,spokesperson, Kelly Headen, adds her own anti-landlord generalised stance when saying: “It is deeply concerning that the decision-making process is now based on unregulated ‘assumptions’ from a landlord. It is unquestionably unethical and open to significant discrimination.”

She states younger prospective tenants will probably miss out on being housed because of this ‘apparent’ so-called process.

The charity also says that another nail in the coffin for younger renter applicants is down to the law ‘outlawing’ additional fees charged to tenants which include referencing etc.

The Step By Step’ statement reads: “A change to the law in 2019 means that tenants no longer have to pay the fees associated with obtaining references. Instead, the landlord is expected to foot the bill.

“While this is ostensibly good news for tenants, in reality it has led to landlords seeking references only once they have already made the decision about who to let to; with so many potential tenants vying for each property, it would prove very costly for a landlord to obtain references for each initial applicant.

“This effectively means that references do not factor into a landlord’s decision making. Even if a young person has strong references, these would afford no advantage in being considered over rival applicants.”

Richard Merrick of PIMS,said:” What absolute nonsense from another anti landlord organisation as numerous comments from our members show choosing applicants on a first come first served basis and the instances of gazumping are few if any.”

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"In May, you MUST give your Tenants the Renters Rights Information Sheet or

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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/