Spain takes drastic steps to stop Airbnb crushing tourism

Sevilla has become the inaugural municipality in Andalucia to enforce a recent regional law aimed at tightly regulating the number of properties available for tourist accommodations. 

The decree by the Junta focuses on managing tourist housing in the most densely populated areas of the region. 

The decision of the Sevilla City Council has received praise from the Andalucian Council of Colleges of Property Administrators (CAFINCAS).Jose Feria, the president of CAFINCAS, remarked, "This action addresses a long-standing desire of residents and marks an initial step towards addressing issues of cohabitation and gentrification present in certain Andalucian provinces."In Sevilla, the council plans to collaborate with the local Association of Property Administrators to compile a list of common complaints from community owners regarding disturbances caused by tourist accommodations.

 Additionally, the city will cease issuing new tourist accommodation licenses in 11 districts, including the Old Town and Triana, where holiday rentals exceed residential capacity by more than 10%.Jose Feria urged other municipalities in Andalucia to emulate Sevilla's approach in implementing the Junta's decree to regulate tourist housing. He emphasized, "It is crucial for various Andalusian municipalities to begin enforcing this decree, which will enhance coexistence and address issues previously unregulated." He added, "Our role as a group is to bridge the gap between citizens and institutions, supporting administrations in rule development and compliance while safeguarding the interests of community owners."Renting out your property to tourists in Spain can be financially rewarding, especially in popular vacation spots. 

However, as the popularity of Airbnb-style rentals continues to soar, regional authorities are cracking down on the industry. 

This crackdown coincides with a wave of anti-tourism protests in cities like Barcelona, Mallorca, and Sevilla, where locals blame tourism for escalating rental prices and urban transformation.Recently, the Junta de Andalucia issued a new decree aimed at regulating tourist rentals. 

These regulations won't apply retroactively to existing tourist accommodations and won't take effect until they are officially published, expected to occur in about a year. 

As always, individuals seeking to rent out their property must obtain a license from local authorities and register the property with the Tourism Department. Failure to do so in Andalucia can result in fines ranging from €2,000 to €150,000, depending on the severity of the violation.

In addition to this from 10th April 2024 San Sebastián  will be restricting the number of people that can be in a guided group to just 25, this is the reduce noise and nuscience in local areas popular with tourist. Loud speakers have also been banned from private tours, in addition tours will also been limited to run between 8am and 11pm.

On to of these measures, the city has banned the construction of new hotels.

This comes as many residents have complained on the strain tourism puts on the area.

Tour guides who ignore these rules will run the risk of being fined up to 1,500 euros by the council. 

Spain isn't the only country in Europe to impose new rules onto tourists.

In Venice, Italy, day trippers are being charged 5 euro a day to visit.

Not only that, there's a cap on the number of tourists allowed in - meaning you could be turned away at the turnstile.

Will many City’s turning against the Airbnb model with increased restrictions, licensing and cost, could this signal the end of the Airbnb revolution.

 

The Hidden Consequences of Right to Buy: Unveiling the UK Housing Crisis

The UK housing crisis is a multifaceted issue with roots deeply entrenched in historical policy decisions. One such decision, Margaret Thatcher's introduction of the Right to Buy scheme in 1980s, has left a lasting and detrimental impact on the availability of council-owned housing stock.

Originally intended to empower council tenants by allowing them to purchase their homes at heavily discounted rates, the Right to Buy scheme was meant to be accompanied by a promise to build replacement properties for every one sold off. 

However, this promise was not upheld, leading to a significant depletion in council housing stock across the country.

In London alone, over 300,000 council homes have been sold since Right to Buy introduced as part of the Housing Act in 1980. 

Astonishingly, only around 14,000 replacement council homes have been funded with Right to Buy receipts in the past decade, leaving a staggering deficit of approximately 285,000 homes.

While the number of Right to Buy sales has been declining in recent years, the repercussions of this policy persist. Rather than fulfilling its original goal of boosting owner occupation, recent research indicates that four in ten homes sold through Right to Buy end up being rented out in the Private sector.

Ironically, this more often than not results in these homes being rented back to the very councils that were compelled to sell them in the first place, in a futile attempt to accommodate homeless families.

The consequences of the Right to Buy scheme extend beyond the immediate loss of council housing stock. 

The surge in property prices, particularly in urban areas like London, has transformed former council houses into lucrative assets. 

Tenants who purchased their homes decades ago at discounted rates are now sitting on substantial fortunes, with properties in sought-after locations commanding prices upwards of a £1m.

As a result, the dream of homeownership has become increasingly elusive for many, particularly for those reliant on social housing. 

The lack of affordable housing options has contributed to soaring rental prices, homelessness, and a widening wealth gap.

Addressing the UK housing crisis requires a multifaceted approach that acknowledges and rectifies the shortcomings of past policies like Right to Buy. 

Sticking to Mankato promises of Investing in the construction of affordable housing, implementing effective and efficient operating methods in the private sector, and incentivising the development of social housing are critical steps towards ensuring housing affordability and accessibility for all members of society.

The legacy of Right to Buy serves as a stark reminder of the unintended consequences that can arise from short-sighted policy decisions. 

Moving forward, policymakers must prioritise sustainable solutions that prioritise the needs of communities over short-term gains, laying the foundation for a more equitable and inclusive housing landscape.

EPCs to be replaced in April 2025

In December 2023, the UK Government initiated consultations regarding the Home Energy Model, aimed at replacing the existing Standard Assessment Procedure (SAP) for assessing new dwellings' compliance with the Future Homes Standard.

The Home Energy Model, slated to supersede SAP, is a novel government calculation methodology tailored for evaluating homes' energy performance nationwide. Its significance lies in its pivotal role in shaping and executing various governmental housing and climate policies.

Though still in the developmental phase, the Home Energy Model's initial iteration is scheduled for deployment alongside the Future Homes Standard in 2025. Subsequently, it will expand to encompass the production of Energy Performance Certificates (EPCs).

The deadline for the related consultations has been extended to March 27, 2024, due to an issue with the consultation version of the Home Energy Model.

The current SAP methodology, instrumental in estimating homes' energy performance, serves two primary purposes: ensuring new homes comply with Part L of the Building Regulations and generating Energy Performance Certificates (EPCs) for all residences.

Originally devised by the Building Research Establishment (BRE), SAP has evolved through multiple iterations, with the latest version, SAP 10.2, unveiled in June 2022.

The Home Energy Model project seeks to modernise the energy assessment industry, aligning the methodology with contemporary political and technological landscapes in the UK. This endeavour aims to create a more robust, accurate, and adaptable framework, crucial for advancing the UK's journey towards achieving net-zero emissions.

In contrast to SAP's simplicity, the Home Energy Model project endeavours to overhaul the methodology comprehensively, incorporating features like increased time resolution, adherence to international standards, modular architecture, and modelling of energy flexibility and smart technologies.

Furthermore, the project encompasses updates to the associated ecosystem, including an open-source methodology, revisions to software delivery, a revamped database of product characteristics, recognition of new technologies, and the use of "wrappers" to distinguish different use cases.

The anticipated benefits of this revamped structure include enhanced flexibility, clarity, and accountability, alongside the ability to employ diverse standardised assumptions tailored to specific policy requirements.

Post-consultation, the government will contemplate reforms concerning the model's recognition of new technologies, product-specific performance data, and software provision to energy assessors.

The overarching goal of the Home Energy Model initiative is to significantly enhance the calculation methodology for energy performance assessments, ensuring their robustness and suitability for future needs. 

Rather than a mere replacement, it should be perceived as an augmentation facilitating the transition to a net-zero future.

As yet, we do not know what this change will mean for existing EPCs but it is hoped they will not need to be updated until they expire, but this is yet to be confirmed

 

Could thousands of rental homes be lost to holiday style letting?

Proposed government changes announced in the recent budget which targets Airbnb-style rentals may result in the loss of over 10,000 long-term rental properties, particularly impacting families in London. 

While initiatives like scrapping tax breaks and implementing a registration scheme aim to regulate the holiday let market, a loophole allowing landlords to convert rented properties into vacation accommodations without planning permission could exacerbate the housing shortage.

Coupled with increased costly legislation and uncertainty of the private rental section there has been a sharp rise in the number of landlords taking their long term-lets off the market in favour of short stays and holiday lets

Adam Hug, leader of Westminster city council, warns that this loophole could lead to the disappearance of thousands of rentable homes, making it even harder for individuals to secure housing. Although councils can introduce planning controls in areas overwhelmed by holiday lets, the process is lengthy and may not effectively address the immediate issue.

Additionally, proposals to grant retrospective planning permission to properties currently used for holiday rentals could further disadvantage local residents seeking affordable housing. 

Holiday lets, which are more profitable for landlords, often outcompete traditional rental options, exacerbating the housing crisis.

While long-term renters provide landlords with consistent cashflow throughout the year, data suggests the lucrative potential of higher rates on shorter terms is a strategy that more buy-to-let landlords are starting to seriously consider.

While the government aims to provide more control over short-term lets and eliminate tax advantages for holiday properties, the impact on existing regulations in London remains uncertain. 

Despite recognising the importance of short-term lets in the tourism sector, the government acknowledges the challenges faced by local communities in accessing affordable housing.

But as yet the Government have failed to introduce and clear legislation or plan that is devoted to resolving this long term issue, instead focusing its energy on sticking plaster reforms to steam the arterial bleed of the lack of homes that the voting public can afford.

Rural housing prices outstripping affordability

A recent report has revealed that over the past decade, rising house prices in the English countryside have driven more than half a million people into renting. According to the County Councils Network, there has been a 19% increase in rural renting, surpassing the rises observed in London and other cities across England. 

The average house price in rural counties now stands at £309,000, making them the most unaffordable areas outside of London. Compared to the average rent in the UK which is currently £1,220 per month after 8.3% growth in the last year

Meanwhile, the government has expressed its commitment to establishing a fair housing system.

In regions like the Cotswolds, traditionally favoured by the wealthy and famous, local residents are grappling with being priced out of the property market. 

The Gloucester Rural Community Council (GRCC) has been addressing this widespread issue. Cara Loukes, the GRCC's affordable housing manager, highlighted the impact of holiday lettings and second-home purchases, which have reduced the availability of long-term rental properties. Consequently, more individuals are being forced to join council waiting lists, with the development of new affordable rental homes taking years to materialise.

This leaves those on lower incomes with limited options, often resorting to unstable living arrangements such as sofa-surfing or residing in inadequate housing conditions.

The recent report by the County Councils Network (CCN) paints a stark picture of the housing landscape in rural areas. Between 2011 and 2021, the number of households in private and social rental properties increased by 550,000. 

Currently, rented properties constitute almost one-third of all housing in England's county council regions. Private renting experienced a 31% surge, surpassing London's 25% increase. Additionally, property prices in these counties are now significantly unaffordable, averaging over £309,000. Council housing waiting lists in rural areas rose by 10% between 2018 and 2023, while the use of temporary accommodation increased by 52% over the past five years. 

Moreover, rural homelessness saw an 18% rise over the last three years.

Acknowledging the worsening housing crisis, the CCN is urging the government to devise a new plan for rural housing, prioritising social housing and reassessing the impact of the right-to-buy policy. The Department for Levelling Up, Housing, and Communities emphasised its commitment to addressing these challenges by allocating £10 billion to boost housing supply and £11.5 billion to provide more affordable homes. While last year saw the delivery of approximately 234,000 new homes, the government maintains its target of building 300,000 homes annually. 

Additionally, the Renters Reform Bill aims to establish a fairer private rented sector for both tenants and landlords, but has been moving through parliament at a glacial pace.

 The government asserts its dedication to creating a housing system that caters to the needs of all individuals, regardless of their location, income level, or housing tenure.

But the ever-increasing demand for affordable housing remains and is unlikely to be remedied in this or the next governments residency.

Tackling Rent Arrears: The #1 Concern for Landlords

As the property market continues to evolve, one constant concern remains at the forefront of every landlord's mind: rent arrears. 

I have just delivered my first of this years training sessions for the NRLA (National Residential Landlords Association) on "Managing Rent Arrears," 

In the training I delve into the strategies landlords can employ to mitigate rent arrears and foster positive tenant-landlord relationships.

The adage "prevention is better than cure" rings especially true in the realm of rent arrears. 

Landlords can significantly reduce the risk of arrears by implementing robust policies and procedures from the outset. One crucial component is having a detailed rent arrears policy in place, outlining clear expectations and consequences for late or missed payments. Additionally, thorough tenant referencing, including financial checks and previous rental history, can help identify potential red flags before signing a tenancy agreement. The key point to make here, it that seeking a reference from the immediate landlord may not provide the best picture of a current tenants performance, let’s face it, a landlord looking to rid themselves of a problem tenant is hardly going to regale you with a list of woes, instead they will paint the tenant as an angel to ensure they are rid of the problem. To counter this, where possible try to get a reference from the landord prior to the current accommodation, this landlord has nothing to lose by telling you the truth warts and all…

When a tenant falls into arrears, the initial approach taken by the landlord can set the tone for how the situation unfolds. It's essential for landlords to maintain open lines of communication and approach the issue with empathy and understanding. Rather than immediately resorting to legal action or eviction proceedings, landlords should first seek to understand the underlying reasons for the arrears and work collaboratively with the tenant to find a solution.

My advice here, make a call as soon as the tenant is a day late or a penny short.

Start your phone call with “Hi, I see you haven’t paid your rent. Is everything ok?”

This will set a more open and supportive tone. Please don’t open the call with “Where’s my money” or “You haven’t paid your rent I’m evicting you”

As I can guarantee this will not end with a positive outcome.

In many cases, tenants facing rent arrears may be experiencing financial hardship due to unforeseen circumstances such as job loss, illness, or changes in personal circumstances. 

As landlords, we have a responsibility to support our tenants during difficult times and help them access available resources. 

Remember the private rental sector is governed by Consumer Protection regulations for a reason, your tenant is your customer.

Support may include providing information on grants, financial assistance available via local councils, or local charities that offer support for rent payments. 

By taking a proactive approach and offering assistance early on, landlords can demonstrate compassion and foster goodwill with their tenants.

Effective communication is essential throughout the arrears management process. Landlords should maintain regular contact with tenants to monitor their financial situation and provide guidance or support as needed. Establishing a transparent and non-judgmental dialogue can encourage tenants to be forthcoming about any difficulties they may be facing and increase the likelihood of reaching a mutually beneficial resolution.

While landlords strive to resolve rent arrears amicably, there may be instances where legal action becomes necessary. 

It's crucial for landlords to familiarise themselves with relevant laws and procedures to ensure compliance and protect their interests. 

Seeking legal advice early in the process can help landlords navigate complex legal frameworks and make informed decisions regarding eviction or debt recovery proceedings.

Rent arrears remain a significant concern for landlords, but with proactive measures and a compassionate approach, these challenges can be effectively managed. By implementing robust policies, maintaining open communication, and offering support to tenants in need, landlords can mitigate the risk of arrears and cultivate positive tenant-landlord relationships. 

Together, we can navigate these challenges and foster a thriving rental market built on trust, understanding, and cooperation.

Check out the NRLA website for my next ‘Managing rent arrears’ training

https://www.nrla.org.uk//training-academy/finance-and-tax/managing-rent-arrears

Prefab homes cited as the answer- but UK is still way behind Sweden and Japan

The concept of using pre-assembled components in home construction is not new and many would argue that modern tech-enabled modular housing offers a faster and more sustainable solution to housing crises. However, while some countries have embraced this approach, others like the U.K. have struggled to scale it up.

Prefabrication has a long history, from William the Conqueror's defences in 1066 to Sears' mail-order homes in the early 1900s. 

Today, entire modules can be constructed in factories and assembled into houses within weeks, offering advantages like speed and sustainability. This is particularly crucial in countries like the U.K., where affordable housing shortages persist.

Modular housing, built in controlled factory environments, generates less waste and results in more energy-efficient homes. 

For example, British modular developer TopHat Communities reported sending "zero waste to landfill" in the last three years. Additionally, modular construction reduces vehicle movements to development sites, as highlighted by a 2022 report from Make UK Modular.

Studies have shown that modular home construction can significantly reduce embodied carbon emissions by up to 45%. 

Despite these benefits, the sector has faced setbacks, with firms struggling to profit amidst challenges like high energy costs and interest rates.

The construction industry, including modular housing, experiences a high rate of failures. Factors like perceptions based on past versions of prefabrication and industry conservatism hinder widespread adoption of new methods.

Countries like Sweden and Japan lead in prefabrication, with significant portions of their housing stock built using offsite construction methods. In contrast, the U.K. and U.S. lag behind, with limited adoption of modular housing.

Efforts to address affordable housing shortages in the U.K. include ambitious targets set by the government and opposition parties. 

The current U.K. government has the target of building 300,000 homes a year, but 234,400 were built in 2022-23. Keir Starmer, the leader of the Labour party, has pledged to build 1.5 million homes within a five-year term if his party is elected. That's 300,000 houses a year, and there is zero chance of that happening if there is not some form different approach adopted

Modular construction could play a role in meeting these targets, but widespread adoption may take time.

a Make UK Modular report published last year said more than 3,000 modular homes were being built in the U.K. annually, though there was capacity to build five times that number

In comparison to the already mentioned Sweden and Japan who are cited as leaders in the prefab build market. Savills Research highlighted in 2020 that 45% of homes in Sweden were built using offsite construction. In Japan, it said modular construction  was used in building 15-20% of new homes, which equated to between 150,000 and 180,000 homes a year

Looking ahead, there is optimism for the modular sector, with potential for increased adoption in the coming years. However, other modern methods of construction, such as panellised solutions, may also gain traction alongside modular housing.

Lack of inspectors means London council unable to police planning applications

Greenwich council in south London has acknowledged its inability to oversee planning applications due to a lack of funding for inspectors. 

This revelation comes after controversy arose over the retroactive approval of a homeless hostel in a prime residential area.

Last year, the council granted retrospective permission to convert a two-storey building into 26 studio flats to accommodate vulnerable adults and children. 

Despite objections, the council justified its decision by emphasising the need to provide housing for local homeless individuals, particularly women and single mothers.

However, the council has admitted it cannot fulfill the agreement made with the developer to house Greenwich's homeless population. 

This has led to concerns among residents, who observed an unexpected influx of mainly single men occupying the property, despite assurances of strict control over occupancy.

Residents feel left in the dark, as the council struggles to manage the situation. While the council emphasises its commitment to safe and affordable housing, it acknowledges its financial constraints in conducting development inspections post-planning permission.

As a result, the council relies on reports from the public to identify breaches in planning permissions. 

The planning enforcement team is currently investigating the situation to determine if the property's use deviates from the approved permissions.

Recent research conducted by the Royal Town Planning Institute (RTPI) has unveiled significant challenges facing planning authorities due to a £364 million reduction in annual local authority spending on planning. 

These challenges manifest in issues related to resourcing, skills, and performance.

The study highlights that nearly 90% of local authorities are grappling with a backlog of planning enforcement cases, indicating widespread strain on the system. 

The root of many challenges appears to lie in inadequate funding, with a 43% decrease in net expenditure on planning by local authorities, plummeting from £844 million in 2009/10 to £480 million in 2020/21.

Recruitment struggles exacerbate the situation, with 70% of surveyed local authorities facing difficulties in hiring enforcement officers over the past five years. Moreover, 80% of respondents lamented the shortage of officers to handle the workload effectively. 

Delays from the Planning Inspectorate further compound the challenges, with 71% of respondents citing negative impacts on service delivery.

These pressures have significantly undermined compliance efforts, as only 46% of respondents indicated that their local authorities possess the capacity to monitor compliance post-enforcement action successfully. The RTPI underscores that these struggles also have broader implications, particularly as the government contemplates introducing additional responsibilities such as Biodiversity Net Gain policies.

Almost unanimously, those surveyed (96%) expressed the need for increased funding, advocating for a centralised government fund to support direct action initiatives. 

In light of these findings, the RTPI questions the effectiveness of proposed enforcement powers outlined in the Levelling Up and Regeneration Bill, including time limits, temporary stop notices, and development progress reports, as solutions for aiding councils in managing breaches effectively.

Why Investing in Holiday Lets in Vendée is A Lucrative Venture Yielding 16% Net Returns

People are always surprised when I tell them I don’t invest in the UK, all my investments are in France.

I always hear “weren’t you scared?” “How did you find the properties?”

As an investor I was seeking good returns but for a small outlay, an opportunity in the realm of holiday lets seemed the perfect answer

After a lot of internet searching I found myself drawn to the picturesque region of Vendée, France. With careful research and a discerning eye, I ventured into this market, acquiring my first property for just €9,995 and subsequently reaping a remarkable 16% net yield, I went on to purchase a further 9 to run as holiday lets and managed the bookings on Airbnb. 

Here’s why I chose Vendée as my investment destination and why it has proven to be a wise decision.

 

1. **The Vendée Globe**: The allure of the world-renowned Vendée Globe race, where 40 international skippers embark on a solo, non-stop circumnavigation without any assistance, was a significant factor in my decision. The event, organized every four years in Les Sables d'Olonne, not only attracts avid sailing enthusiasts but also draws global attention, ensuring a steady stream of tourists seeking accommodation during this exhilarating event.

 

2. **Olympic Torch Relay**: Vendée's inclusion as one of the sites for the Olympic Torch Relay further solidified its appeal as an investment hub. With the torch journeying through 64 territories, including Vendée, the region is poised to experience heightened tourism activity, presenting ample opportunities for holiday let owners to capitalize on the influx of visitors.

 

3. **Cycling Haven**: Vendée’s reputation as a cycling paradise, epitomized by the renowned "Vélodyssée" route tracing along its scenic Atlantic coast, caught my attention. With 18 designated cycling routes, the region caters to outdoor enthusiasts seeking adventure amidst breathtaking landscapes. 

This emphasis on outdoor activities ensures a steady stream of tourists throughout the year, making it an ideal location for holiday lets.

4. **Puy du Fou**: The presence of Puy du Fou, a world-renowned theme park located in the northern part of Vendée, further sweetened the deal for me. Boasting spectacular shows ranging from gladiatorial battles to medieval jousts, the park attracts millions of visitors annually. 

Its immersive experiences and captivating performances ensure repeat visits, providing holiday let owners with a reliable source of rental income.

Moreover, the evening spectacle, Le Cinéscénie, offers a mesmerizing journey through Vendée's history, featuring over 1,100 participants and several animals. 

This cultural gem adds depth to Vendée's appeal as a tourist destination, enhancing the overall experience for visitors and, consequently, the attractiveness of holiday let investments in the region.

My decision to invest in holiday lets in Vendée, France, has proven to be astute, yielding a remarkable 16% annual net return. By meticulously researching and understanding the local attractions and activities, I was able to identify a lucrative market ripe for investment. 

Vendée's blend of sporting events, cultural festivities, and natural beauty make it an irresistible destination for tourists, ensuring a steady demand for holiday accommodation. As well as providing guaranteed rentals from sponsors, hosts, participants and promotors of these events, meaning I never have to worry about void periods or low occupancy.

As we struggle more and more to get on the UK property ladder, I remain confident that overseas investments will continue enduring appeal and profitability as an investment destination. 

Mortgage arrears hit 7 year high

Mortgage arrears reached a seven-year peak in the last quarter of 2023, highlighting the strain of elevated borrowing costs on households, according to official data.

 The Bank of England reported that the ratio of total loan balances in arrears, relative to outstanding mortgage balances, climbed to 1.23% in the three months ending December 31, up from 1.12% in the previous quarter. This marks a departure from the long-term decline in overdue payments, reaching the highest level since the final quarter of 2016.

The surge in mortgage costs over the past three years, driven by the BoE's efforts to curb inflation by raising interest rates to a 16-year peak of 5.25%, has contributed to the trend of rising home loan arrears. 

However, the current share of mortgages in arrears remains notably lower than the peak of 3.64% observed in the first quarter of 2009 during the global financial crisis.

Karen Noye, a mortgage expert at Quilter, commented on the significant rise in mortgage rates, stating that it has become challenging for some borrowers to keep up with their increased payments, leading them into arrears.

Financial markets anticipate the BoE to commence interest rate cuts from this summer, projecting a decrease in the benchmark rate to 4.5% by the year's end. 

As interest rate expectations have shifted, lenders have begun offering cheaper deals. However, households continue to face higher mortgage payments as their fixed contracts expire.

While the proportion of loan balances in arrears remains relatively low at 1.23%, the pace at which it is increasing is a cause for concern among policymakers, according to Simon Gammon, managing partner at Knight Frank Finance.

Despite the rise in mortgage arrears, they are lower compared to the 2008-2009 financial crisis, partly due to a robust labor market and enhanced mortgage regulations.

Recent research from the BoE revealed that the majority of borrowers who reached the end of fixed deals in 2023 were offered rates lower than those initially agreed upon. Additionally, data from the BoE indicated a decline in the share of gross mortgage advances for buy-to-let purposes, dropping by 4.9% points year-on-year in the final quarter to 7 percent, the lowest since 2010. Noye attributed this decline to various changes in the buy-to-let tax landscape in recent years, making it a less appealing option for landlords.

Airbnb bans CCTV cameras in the interest of privacy

Airbnb is implementing a comprehensive prohibition on indoor security cameras, citing a commitment to safeguarding the privacy of its community. 

Previously, Airbnb allowed indoor security cameras in shared spaces like hallways and living rooms, as long as they were disclosed upfront, easily visible, and excluded from sleeping quarters and bathrooms.

Effective from 30th April 2024, Airbnb's updated policy bans hosts from utilising indoor cameras anywhere within a rental, irrespective of their purpose, location, or prior disclosure. However, outdoor security cameras remain permissible, provided hosts disclose their presence and general placement before guests confirm their booking. 

These outdoor cameras are prohibited from monitoring indoor spaces or areas where privacy is expected, such as outdoor showers or saunas.

While hosts may still use noise decibel monitors in common areas, they must disclose these devices beforehand. Airbnb defines noise decibel monitors as tools that measure sound levels without recording or transmitting audio.

Airbnb warns that any violation of these regulations may lead to the removal of listings or suspension of accounts. 

The decision to prohibit indoor cameras followed extensive consultation with guests, hosts, privacy experts, and advocacy groups.

Exploring the Advancements of Online Mediation

AI is now a commonly accepted part of everyday life, from predictive text to high-level machine learning this AI is becoming the first step of customer interaction for most companies.

So it was only a matter of time before AI began to mediate the human problems.

Envision an electronic mediator capable of gauging and reshaping the emotional states and overall atmosphere of parties based on their speech patterns within an Online Dispute Resolution (ODR) program. 

Picture the recreation of genuine emotional and social connections through avatars in an online mediation environment. Consider the possibilities of anonymous brainstorming, clandestine meetings in virtual rooms, and the accessibility of web-based intelligent agents offering counsel on alternative solutions and interest-based compromises. 

This isn't the plot of a sci-fi movie—it's the reality of ODR technology, the best-kept secret of the mediation world.

The utilisation of ODR is steadily increasing in the US. Here, Mediator Julie Ford aims to underscore the remarkable potentials that ODR extends beyond traditional email and telephony.

Commercially available ODR services leverage an array of technologies, including:

- E-mail

- Web forums

- Instant messaging

- Chat rooms

- Video conferencing

- Mobile and smartphone technology

- Artificial legal intelligence

- Blogs

- VoIP (voice over Internet protocol)

- Avatars

- Social networking sites

- Wikis

- Web maps

As technologies reshape interpersonal communication and interaction, they inevitably reshape the resolution of conflicts and the conduct of mediations.

These technologies are employed in various ways within negotiation and mediation processes. Here are a couple of examples:

Facilitated negotiation entails the utilisation of secure websites, such as virtual collaborative workspaces or e-rooms, enabling parties to exchange messages, share documents, and engage in synchronous or asynchronous negotiations.

This fundamental ODR service is offered by a growing number of providers in the US, facilitation is provided by the technology itself and the process rules established by the e-room provider, rather than a human mediator.

Human mediators are also employing such software to conduct online mediation processes. Online applications specifically designed for mediators are common in the US, but yet to be applied in the UK, many mediators will utilise existing online software such as Zoom or Teams to facilitate their mediations.

Another example is automated negotiation, such as blind bidding procedures, offering positional negotiation and settlement calculations without human third-party intervention. These are available in the United States for insurance claims arising from car accidents and personal injury claims.

Yet another ODR technology comes in the form of negotiation support systems, enabling the manipulation of negotiation variables for participants to consider various options and alternatives, while also providing an overview of negotiation stages and expert advice on strategies and outcomes. 

Mediators can utilise this technology to assist parties in their negotiations. Examples of this development in Australia include Family Winner and IMODRE, primarily used in property settlement mediation in family disputes.

While mediators are traditionally known as the 'third party,' in the realm of online mediation, technology is often referred to as the 'fourth party.' 

This concept suggests that technology alters the communication and power dynamics of the mediation process, offering new and imaginative ways for mediators to intervene and for parties and lawyers to engage in the process. 

However, it also introduces new risks for users related to issues around the security of the online platform, authenticity of online participants, and the handling of a written record of a text-based ODR process.

The future of online mediation hinges largely on the ability of mediators and potential users to embrace and utilise the fourth party and specific ODR platforms. 

While there may still be skepticism regarding technology's ability to facilitate solutions, foster relationships, and maintain trust in the process, it appears that an increasing number of mediators and mediation users are open to the idea of ODR

Online Mediation- the secret weapon for todays rental market

In today's digital age, various aspects of life, including education, employment, and even marriage, have transitioned online. 

With over £1.2 million generated in e-commerce every 30 seconds, the property business landscape has predominantly become virtual. 

However, until recently, dispute resolution has largely remained a costly and in-person process.

Covid forced us all to remote work and many businesses had to quickly adapt to the new landscape.

Covid may be a distant memory for some but the new online world it created remains and landlords who embrace available tools, such as online dispute resolution, stand to gain a significant advantage in terms of reduced costs and increased profits. 

It's logical that dispute resolution, particularly mediation, would shift to the virtual realm. 

Indeed, it's already becoming the norm for addressing customer service issues and conflicts in the e-commerce sphere.

There exists a range of online mediation tools tailored for the property market.

The process is straightforward. Upon connecting with your online mediator, communication occurs via video chat, phone calls, and email. 

Your qualified mediator, equipped with professional training, guides both parties through the issues individually. 

Landlord-tenant mediation unfolds entirely at your convenience, eliminating the need to leave your residence or workplace.

Why, mediation

As we all know, small claims and eviction courts are overburdened and underfunded in the UK. 

Meanwhile, 88-92% of all cases resolve before trial. 

Many of these resolutions occur just before trial in the courtroom hallway before anyone has seen a judge. When this happens, landlords find themselves wondering why the outcome wasn’t reached sooner.

Since 25^th July 2023, mediation has been mandatory for small claims, with judges ushering parties off to court appointed mediation services, to reach a solution and free up the court for other business.

Finding the route to resolution is the job of a professional mediator and can be done long before any legal process is started

Mediation is a voluntary process in which people hire a neutral professional, the mediator, to facilitate a mutually beneficial, legally-binding resolution to their dispute.

Put plainly, it’s a negotiation between you and your tenant with the assistance of a professional negotiator. 

You control almost every decision along the way: one-on-one conversations or everyone discussing at once; a single sitting or over a period of time (i.e., “synchronous” v. “asynchronous”); in-person or by video chat/phone/email; and you craft your own resolution. 

You know what your interests are, so you are in control.

Potentially the biggest benefit of mediation, compared to court, is that all risk of losing at trial is eliminated.

Every party, in every court case, has a chance of losing—no matter what the facts are (or how sure the solicitor is in the case). 

The problem is, unlike expensive cases, trials for landlord-tenant cases last about 10 minutes. And the outcome is at the judge’s discretion in many cases, which very well could hinge on the current mood of the particular judge. 

Landlord Tenant Mediation: A Modern Approach to Tenant Issues

According to ONS, over £112 million of unpaid rent is lost by 22 million British landlords per year. 

For large property management companies and hobby landlords alike, these figures are staggering.

Generating profit from rental properties is the founder mental reason everyone invests in property.

But the success of this depends on tenants paying rent on time. The margin for error—i.e., the number of days a rental payment is late—is lowest for those landlords with fewer than five rental properties.

Consider the immediate financial impact: solicitors are expensive (on average, +£190/hour); and eviction is very expensive (£1,265 on average). 

In addition to cost, evictions can take months depending on the outcome and any defence. That means your tenant is living in your property for another month or more for free.

Because you chose to go to court and make the situation adversarial, your tenant is not likely to pay another penny with many steadfast that they “want their day in court”

Evictions are also messy. Removing people from their homes predictably invokes emotions. 

In addition to affecting you on a human level, this also has a bottom-line impact. Evicted tenants make angry ex-tenants; angry ex-tenants leave bad reviews; and bad reviews affect the quality of future tenants, resulting in more issues down the road. 

After all, 88% of people read reviews to determine the quality of a potential property. 

You need to protect your reputation and evictions don’t help.

It’s pretty obvious that evicting bad tenants is the best option. 

However, not all non-paying tenants are bad, and if eviction is your only lever to pull in the face of nonpayment of rent, you don’t have any choice but to pull it. 

In a series of articles I will explore mediation as a new lever, one that uses modern technology and has the potential to change how landlords handle nonpayment issues with tenants, as well as many other problems that arise during the course of renting a property.