Welcome to February's Newsletter! 

As you may have seen on social media, we're received reports this week of 2 online property scams being run in the Swansea area. I was interviewed today for Swansea Bay TV, talking about the scam after our warning about the scams was picked up by Wales Online and Property Industry Eye.

On a lighter note, there's good news this month for the Kingsway Infrastructure Project and Tidal Lagoon as more investment is made, and an offer revised. We're also encouraging landlords to consider (where appropriate!) lets with pets, and this month's stats are a prime example of supply and demand at work!

We are warning all tenants about online fraudsters who are targeting would-be-tenants on private landlord pages on sites such as Facebook, Gumtree, and Airbnb.

The advertisers pose as landlords and offer properties they do not own at reduced rental prices, using agents own marketing photos to lure prospective tenants in. They then request deposits and rent up front, and promise to send contracts and keys in the post.

Scams in Swansea

We have been made aware by a concerned member of the public that an online fraudster is running a scam on one of our properties here in Swansea, using our marketing photos and advertising it as a private let.

She was told by the fraudster that he didn't live locally, but that she could view the property by looking through the windows. Thankfully, this rang alarm bells for her, and she contacted us to see if the landlord was also marketing it privately, which we have confirmed is not the case.

Some would-be tenants prefer to deal directly with the landlord, saving money on referencing and admin costs. One of the benefits of working with a reputable letting agent is that the landlord is also checked to ensure tenants are protected against imposter landlords - people who claim to own the property, but don't.

We are urging all private tenants to do basic due diligence referencing on their prospective landlords before parting with any money.

Further Afield

Two other agencies in Weston-Super-Mare have also been targeted, and Telford & Wrekin Council have issued a warning to consumers about scammers posing as estate agents. It is unknown if it is the same fraud ring using different accounts, or individuals getting wind of an easy scam.

As estate agents don't have any control over the use of photos and information which is publicly available online, this type of crime is worryingly easy to set up, and preys on vulnerable tenants.

Following our warning, both Wales Online and Property Industry Eye have published articles on this topic. Managing Director of McCartan Lettings, Hannah, has been interviewed today by Swansea Bay TV talking about the scam too.

Subletting

In another case, a tenant has been caught posing as a landlord on Airbnb and taking bookings for holiday lets.

Not only is the tenant in breach of his contract with his landlord, he is also in breach of his contract with Airbnb.

His actions also make the actual landlord’s property insurance invalid, which puts everyone involved at risk. It also puts the guests at even greater risk of having their booking cancelled at short notice with little or no alternative accommodation to go to.

When Airbnb were contacted about the advert, they claimed they could not do anything to stop the listing, and could not discuss anything to do with the property with anyone other than the ‘host’ as it breached their confidentiality. This raises further questions as to how much responsibility and care Airbnb has to the unsuspecting public who making books through their site.

Airbnb are reporting a 52% loss of listings in their hometown of San Francisco, USA, this week following a tightening of regulations on short term lets in the city. It is assumed the losses are due to tenants renting out rooms through the company without their landlord’s knowledge or permission.

Sources: Property Industry Eye / BBC / Telford and Wrekin Council

Swansea Council are hailing EU investment in the Kingsway Infrastructure Project, “digital village”, and a revised bid for the Tidal Lagoon as major steps forward for the City Deal that will transform Swansea in the coming years.

The Kingsway

The Wales European Funding Office (WEFO) have announced an investment from the EU of &4.5m for the Kingsway Infrastructure Project.

As part of this project, two buildings in Oxford Street will be demolished to create a new link between the bus station and the Kingsway. It will see 850 square metres of new office space created within refurbished buildings on the Kingsway, which is believed will attract companies in the digital sector and contribute to the creation of a “digital village”.

Rob Stewart, leader of Swansea Council, said “The EU funding is a key part of the story that will enable us to get on and transform the Kingsway and the city centre.

"It’ll help us create new public areas where people can sit, eat and relax. We’ll use contemporary design to enable public events, parades and gatherings to take place.

“The support we’re getting via the Welsh Government’s Wales European Funding Office will help us create more public leisure space in the city.

“This will help to attract jobs and investment and to support the new city centre we are building, and also, importantly, simplify traffic flows across the city centre and make it easier for people to get from east to west.

Hannah McCartan, Managing Director of McCartan Lettings, said “Surrounding areas to the Kingsway, such as St. Helens Road, should benefit from the development and investment.

By making the Kingsway a more desirable place to visit, along with the added employment benefit, it will ultimately make living in the area more appealing. We are anticipating rents on apartments in the area to rise but with that property prices as well”.

The Tidal Lagoon

A revised offer has been put forward to Westminster for the Swansea Bay Lagoon. This comes after the Welsh Government announced in January it had offered a "substantial investment" to try and get the long awaited project over the line.

A review of the project has been conducted, but ministers are yet to respond to its more than a year since it was published.

There is hope; Mr Graham, who represents the city of Gloucester where the company who will be building the lagoon, Tidal Lagoon Power (TLP), are based, revealed that the company had now revised their offer and were proposing the same terms as those accepted by the Government for the Hinkley Point C nuclear power station in Somerset.

'Huge potential'

A spokesman for TLP told BBC Wales a new agreement on price was "one of the possible outcomes of current talks between the UK and Welsh Governments."

Hinkley Point C's developers, EDF Energy, were granted a 35 year contract with a fixed price of &92.50 per megawatt hour of electricity produced.

Mr Graham said the Swansea Bay Lagoon was "no longer more expensive in the short term than nuclear, with huge potential for future efficiencies."

He also suggested that Prime Minister Theresa May had "always felt there was something in this for our nation", and urged the Treasury and Business departments to "seize the moment".

Sources: BBC on Q&A for Swansea Bay Tidal Lagoon / BBC "new deal on price" / Wales Online

Related: 2018: The Year Ahead / Tidal Lagoon made "Substantial" Offer by Welsh First Minister

Pets in properties have always been an issue in the Lettings industry. In a bid to win votes, Labour have proposed a series of animal welfare measures this week that include giving tenants a “default right” to pets.

The proposal would mean that landlords would not be able to advertise their properties as “no pets allowed”. They would also have to show evidence that the pet would be a nuisance in order for the applicant to be refused on the ground of having a pet.

Reasonable Refusal

Since 2015, there have been restrictions in place to limit the grounds on which a landlord can refuse to tenant a pet – but consent can be withheld if it is considered to be reasonable.

Landlords have many legitimate reasons for not wanting a pet in their property. Some properties are simply not suited to certain types of pets, and there are concerns around the higher risk of damage, flea infestations, and possible allergy issues for future tenants.

Some landlords even have severe allergies to pet hair themselves, so wouldn’t be able to enter the property to undertake routine visits if a pet was present in the property.

A member of McCartan staff visited a property last year where there was a pet present, and had to be doused liberally in flea-powder upon returning to the office as he’d caught fleas!

Higher Demand for Lets with Pets

There are many benefits to accepting a pet (or two!) in a property, if the property is suitable to house them.

The demand for pet-friendly properties is high due to the supply (and quality) being so low. In turn, tenants with pets are generally open to paying higher deposits, and agree terms in their contract to pay for professional cleaning and specialist flea treatments at the end of the tenancy.

Tenants with pets are also more likely to be looking for long term accommodation, and are generally more inclined to want to be settled, and make the property their home.

Worst Case Scenarios

From an animal welfare position, accepting pets also reduces the amount of animals that end up in rehoming centres (such as Llys Nini, and Cats Protection, both in Swansea) because their owners were unable to move with their pet. In the worst case scenarios, healthy animals are being put down if they cannot be re-homed.

Currently, over 5 million households rent across the UK, and the majority of landlords have concerns over accepting pets.

Whilst it is unlikely that anything will come of this proposal in the short term as the next election is still 5 years away, it does open the debate around animal welfare in the rental sector.

Social Impact

If more discussion is had about how landlords can be better protected against their biggest concerns around accepting pets, lets with pets are likely to become more common – without the need for heavy-handed Government legislation forcing people into it and driving landlords out of the sector.

Since renting in general is becoming more common, it makes more sense to expand the Lettings industry than to shrink it.

Labour have said they will be consulting with industry bodies on the subject.

Protecting Your Property

We at McCartan Lettings always encourage landlords to accept pets where the property is suitable. There are several, easy-to-implement ways in which a landlord can protect their properties against accidental pet damage, such as taking a higher deposit, and having additional clauses in the contract for professional cleaning and flea treatments at the end of the tenancy.

In some instances, landlords can also insist the tenant takes out a 3rd party policy for pet damage, which is usually added onto their contents insurance.

Having a professional inventory is also essential to avoid doubt on the condition of the property at the start of the tenancy, and makes claiming against a deposit much easier.

If you are considering renting your property in Swansea and would like some free professional advice on letting with pets, please contact us on 01792 430100, or click here to email us.

Sources: Letting Agent Today / BBC / Property 118

Related: Pets Considered / Teaming up with Ella’s Kitchen to Save the Planet / Are You Liable for Paying Your Tenant’s Water Bill?

Rents in February are generally up, with 3 and 4 bedroom properties performing better than 1 and 2 bed properties. This may be to do with the stock levels on these sized properties being lower at the moment. There are almost 15% fewer 4 bedroom homes available this month, which could explain why rents are up over 10%. 

 

Never under estimate how supply and demand works, even on a monthly level!