Beware of Rogue Landlords as Housing Prices Rise

19 May 2012

Rising house prices are certainly no new thing in Northumberland with the average house price topping the regional average by around £25,000.

While this is good news for people looking to sell, it's not so pleasing for the county's house hunters - especially first-time buyers.

With the average house price in Northumberland reaching around £175,000 - even to meet a traditional 10 per cent deposit - buyers need to have saved £17,500 to secure a mortgage, but with some lenders now demanding a mammoth deposit of up to 30 per cent, many buyers are seriously looking at their options.

Buying your own home has always been a popular choice throughout the UK with young people keen to get a foot on the property ladder as soon as possible but now many are considering renting in order to find their ideal home. 

Although renting can offer lots of advantages, there are also a number of serious pitfalls, of which anyone considering a private rental should be aware. A recent survey by Shelter found that nearly five per cent of people know someone who has been a victim of a rogue landlord scam when privately renting.

One particular scam on the increase sees potential tenants asked to wire funds - usually via a service such as Western Union - to a friend or relative and to provide proof of receipt to show they can afford the property. The landlord will then quickly withdraw the funds using the receipt's transfer details. Reputable landlords will accept a cheque or bankers' draft so never agree to wire any money for a deposit.

One of the more elaborate scams involves fraudsters breaking into a property and renting it out as their own. After collecting large deposits the landlords will simply disappear and the unsuspecting tenants are evicted as, legally, they are squatters. Always ask for a landlord's name and UK contact address - the property's owner can be checked through the Land Registry website - before handing over any money.

Some rogue landlords may suggest to tenants short of money that they pay extra rent each month rather than an upfront deposit with the promise of returning the additional funds at the end of the lease.

Unless a deposit is paid into a legitimate and authorised deposit scheme it can prove extremely difficult to recoup any monies paid so never agree to topping up the monthly rent with deposit payments.

At the start of a lease tenants should always find out what deposit scheme their money will be paid into and also ask for written confirmation of what money is to be paid throughout the length of the lease within the tenancy agreement. Any additional debts will not legally fall to the tenant so check the agreement carefully.

Any Northumberland resident can contact DAWN Advice for free support and advice on a range of housing law issues on 01670 785 500.