News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 2001 issue RPI news archive

Asylum seeker threat - June / July 2001

Provision of properties to house asylum seekers under the Government's dispersal initiative has to date proved very worthwhile for the residential investors. Insurance companies are not reporting excessive claims concerning asylum seeker tenants, while financial institutions are overcoming their initial reluctance to be associated with the sector. Meanwhile other agencies are saying that the private sector provides the best properties.

However, dark clouds are gathering on the horizon. There are worries that some of the main contractors to the Government National Asylum Support Service, the asylum support agencies, are trying to eliminate the small landlord from the equation by supplying properties themselves. Many investors are reporting late payment of rents, sometimes up to four months in arrears. And this despite the Government's own commitment through legislation to combat late payments of business debts.

There is clearly a possibility that private landlords could suffer should a support agency not live up to its financial commitments. Yet although absolute control over housing asylum seekers has been handed to a few chosen agencies, the NASS washes its hands of all such responsibilities ­ saying these are private matters between agency and landlords.

To make matters worse, many of the agreements being offered landlords are not worth the paper they are written on. Unfair terms and conditions are being imposed with agents failing to report in a verifiable manner on the repairs they are carrying out and for which they are charging landlords. Indeed, the letting agency industry leaves much to be desired in its professionalism and much improvement is necessary.

The Government should have consulted landlords before commencing its asylum dispersal and housing programme, but failed to do so. Let's hope this oversight does not lead to a housing investor crisis.

Martin J Moylan
 

other artilces from the June / July 2001 issue

• Asylum seeker threat
• Earnings link points to house price fall
• Dome Minister takes on housing
• New landlords should look to the long term
• Where tenant must act as tax agent
• 'Reasonable steps' absolve blam
• Easy does it
• House prices still risingt
• Alternative to gas
• Regeneration VAT incentive falls down
• Lease preparation costs to be disallowed