Money Issues affect both landlords and tenants

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Rent Payment:

GDP growth is the most widely used indicator of the county’s economic performance, but it may not give an accurate picture nationally of people’s economic well-being, especially in the short term.

There are more than 8m people in the UK struggling with some degree of hardship and problem debt.

Though problem debt is primarily an issue for low earners and those with few assets to their name, it also affects those on larger incomes. Its ramifications are felt by many: landlords, with the resulting rent arrears problems, just as much as family and relationship strains felt by their tenants.

An ageing population and a shift towards becoming a parent
later in life means that an ever-increasing number of people are struggling to
balance work and caring duties, sacrificing their wellbeing, their finances and
their time to look after those around them.

The rising cost of living and asset prices and difficulty getting on the housing ladder also means that children are often dependent on their parents for longer.

There are 3.4 million 20 to 34-year-olds in the UK who are
still living with their parents, an increase of 25% over the last two decades,
according to Office for National Statistics data.

A recent survey* conducted by YouGov on behalf of Aviva targeted one particular group, a group that has
increasingly become renters, the “sandwich generation.�

Nearly 1 in 4 of the estimated 4 million in the sandwich
generation (a generation of people who care for their aging parents while
supporting their own children) are struggling to pay their rent due to their
caring duties

• 24% of
  sandwich carers say their caring duties are affecting their ability to pay
  their rent
• More
  than 1 in 7 (15%) sandwich carers admit their caring duties are affecting their
  ability to pay their mortgage
• Nearly a
  third (32%) of sandwich carers wouldn’t be able to afford an unexpected expense
  of £500 or would need to go into debt.
• Almost half of those in the sandwich generation
  have four hours or less for themselves each week – less than 35 minutes a day.
• Around one third of time-poor ‘sandwich
  generation’ adults feel that caring duties have negatively impacted their
  mental health and quality of life.

Interestingly, the percentage of those who think their
caring responsibilities are affecting their ability to pay their rent was found
to be higher in men (32%) than in women (19%), says Aviva.

Not surprisingly, caring duties were also found to affect
many survey respondents who have a mortgage. According to the survey, more than 1 in 7 sandwich carers (15%) is
having difficulty paying their mortgage due to their caring responsibilities.

Most people in these groups said they would have difficulty putting
their hands on £500 in an emergency. When they were asked whether they could
afford an unexpected expense of
£500, 28% of
sandwich carers said they would be able
to afford it but would find it difficult. 10% of respondents said they would be able to afford it
but would need to go into debt,
while more than 1 in 5 (22%) said
they would not be able to afford it at short notice.

Alistair McQueen, Head of Savings and Retirement,
commented: 

“Money is tight for
many people, especially for those in the sandwich generation who are having to
care for others. For those able to save it is essential that our money works as
hard as possible…�

*All figures, unless otherwise stated, are from YouGov
Plc.  Total sample size was 6707 adults of which 531 were part of the
sandwich generation. Fieldwork was undertaken between 1st – 6th March
2019.  The survey was carried out online. The figures have been weighted
and are representative of all GB adults (aged 18+).

www.aviva.com | www.aviva.co.uk

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Splitting title deeds and the potential tax implications?

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I am looking to buy two properties which are currently under one title deed. I am looking to split the title deeds and sell one of the properties.

What additional stamp duty and capital gains issues do I have?

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Bad advice and penalty fee for HMO let in Newham?

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Hi, I have a very tough situation here with my letting agent. Beginning of this morning, my letting agent found 3 sharers for my 3-bed flat located in Stratford. Basically, I was told that I just pay additional £500 upgrading my selective license to the additional HMO.

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£1,000s of tenant’s property in communal cupboard disposed of?

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I have a flat in Scotland which is within a new style development with a communal stairway. Within the stairway are located only two flats and a communal cupboard. The stairway has a locked door as does the communal cupboard and the exterior/communal areas are maintained by a 3rd party factoring company.

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Startling News on Interest-only Mortgages and end of term

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By January 2024, approximately 250,000 borrowers will have reached the repayment date for their interest-only mortgage. Most have no plans in place to deal with this problem and will struggle to find a new deal elsewhere, according to research by Kensington Mortgages.

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Breach of lease covenants: what every landlord needs to know

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Letting Agreements:

Most lease agreements include covenants, which are deals with tenants that can be tailored to meet the requirements of landlords. For example, a residential tenancy agreement could contain a covenant which prevents the tenant from using the property for business purposes, or perhaps detail a requirement for the tenant to maintain the property in a reasonable state of repair.

In situations where breach of covenant occurs, landlords can legally enforce these obligations through the UK’s court system. The ability to pursue enforcement of lease covenants differs between residential properties and commercial premises, however, it’s also important that any landlord ensures no implicit waiver of lease covenants takes place throughout the period of tenancy.

Enforcing requirements of lease covenants

The main enforcement remedies available to landlords include:
– Forfeiture
– Specific performance
– Injunction

About forfeiture

Where landlords claim forfeiture for breach of lease covenants, it will be necessary to confirm whether or not these breaches can be remedied. In most cases, the courts don’t consider breaches of repair, or those relating to the use or sharing of the premises as irremediable. However, if a tenant breaks a covenant relating to assignation or sub-leasing or is using the property in an illegal manner, the cases are always upheld in court.

When remediable cases are taken to court, the landlord needs to serve the tenant with a Section 146 Notice, except in the case of non-payment of rent due. You can find out more about Section 146 Notices and how these relate to the Law of Property Act 1925 on the UK government’s website (insert link: https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/146).

For commercial tenancies

Where Section 146 Notices are issued it is important to allow tenants a reasonable amount of time to remedy the breach of the lease covenant. With regard to commercial leases, once this time period has elapsed the landlord can legally and peaceably regain access to the premises or begin court proceedings to evict the tenant.

A peaceable re-entry to premises is the most cost-effective way forward. In these circumstances, the landlord can enter the premises, using force if needed, and change the locks, while also leaving a written notice that the tenancy has come to an end. In these circumstances, it is essential for landlords to ensure no people or property still remain in the premises.

It is illegal for landlords to access properties and change locks if somebody is present who has an objection to this forfeiture. Also, where tenants have left property in the premises, the landlord will have a legal responsibility for ensuring its safekeeping until the tenant collects it.

Regarding residential tenancies

When it comes to residential tenancies, landlords are not allowed to use the peaceable re-entry mode for recovery of possessions unless it is very clearly apparent that the tenant has left the property and does not plan to return. It is really only acceptable for landlords to use court proceedings to regain possession of the property.

What is relief from forfeiture?

If a successful relief from forfeiture is achieved by the tenant, the lease will be reinstated under all terms applicable prior to the allegation of any breach. Relief is awarded by County Courts or High Courts.

So what is specific performance?

When landlords go down the specific performance route, this relates to court action that will make an order for the tenant to conform with all covenants. The landlord will need to prove the existence of the covenant and this is an equitable remedy. 

Injunction

Injunctions are court orders which can prevent tenants from either commencing or continuing with certain types of conduct. This is the most common court action taken by landlords. 

Is it possible to claim damages?

It is possible for courts to award damages to landlords where agreed covenants have been breached. 

You can find out more about the legal implications of being a landlord and property leasing news on the LandlordZONE website (insert link: 
https://www.landlordzone.co.uk/category/information/case-law Alternatively, get in touch with the experts at Myerson Solicitors to seek professional support and advice.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Breach of lease covenants: what every landlord needs to know | LandlordZONE.

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The No Dss Debate – Landlords Alliance advice

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The National Landlords Alliance does not advocate contravening legislation so where the law says that ‘No Dss’ ads contravene equality legislation we must not use the terminology.

Now for some straight talk. Shelter have campaigned for the abolition of S21

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‘No DSS’ clauses in rental ads to be stamped out

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By the end of this month, the two biggest property portals in Britain, Rightmove and Zoopla, will no longer allow ‘No DSS’ lettings listings i.e. those that state tenants who receive housing benefits cannot rent an advertised home.

The decision by the portals is part of a wider stance being taken to stamp out discrimination where landlords have what is called a ‘No DSS’ policy and refuse to rent to those in receipt of benefits.

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Parliamentlive.tv – Work and Pensions Committee ‘No DSS’ debate

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Please click the video link below to watch the full Work and Pensions Committee evidence session for the “No DSS: discrimination against benefit claimants in the housing sector inquiry”

09:36:34 Witnesses: Helena McAleer, Landlord , Lynne Mapp, Mother of tenant

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Housing Secretary’s new statement on housing reform…

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Banning Section 21:

The Housing Secretary James Brokenshire has made a statement
to the House of Commons, also read out in the Lords, giving more information
about the forthcoming housing reforms in England.

This follows his announcement last week that the Government
plans to consult on banning Section 21, and a subsequent announcement in Wales
that Section 21 was to be scrapped there. Similar reforms were brought in in
Scotland in December 2017.

In his statement to the House this week James Brokenshire
said that the forthcoming Government consultation will be “the start of a
longer process� which will then introduce reforms to the housing market.

In his statement Mr Brokenshire said:

“You will have seen that last week I announced reforms to
the legislative framework governing how private tenancies can be ended in
England to improve security in the private rented sector for both tenants and
landlords. This announcement followed my department’s recent consultation on
‘Overcoming the Barriers to Longer Tenancies’. I also published the
government’s response to this consultation.

“The private rented sector has changed dramatically in the
last twenty years, and the sector needs to keep pace with these changes. The
number of people who live in the private rented sector has doubled, and it is
home to more families with children and older people. These households need
stability and security in their home.

“The current legislative framework leaves tenants feeling
insecure. They can be asked to leave their homes, with as little as two months’
notice, without the landlord providing any reason, using eviction proceedings
under Section 21 of the Housing Act 1988. This sense of insecurity can
profoundly affect the ability of renters to plan for the future, to manage
their finances or to put down roots in their local communities.

“The government intends to establish a fairer system for
both tenants and landlords by legislating to repeal Section 21 of the Housing Act
1988. Bringing an end to so-called ‘no fault evictions’, would mean that a
tenant cannot be forced to leave their home unless the landlord can prove a
specified ground, such as rent arrears or breach of tenancy agreement. It would
provide tenants with more stability and protect them from having to make
frequent and short notice moves. It would also empower tenants to challenge
their landlord about poor property standards where this occurs, without the
worry of being evicted as a result of making a complaint.

“The private rented sector must also remain a stable and
secure market for landlords to continue to invest in. The legislation I intend
to introduce will include measures that provide landlords with additional
safeguards to successfully manage their properties. We will strengthen the
existing grounds for eviction available to landlords under Section 8 of the
Housing Act 1988. This will allow the landlord to regain their property when
they want to sell it or move into it themselves.

“It is important that landlords can have confidence that the
court system works for them in instances when there is no other option but to
seek possession of their property through the courts. That is why this
announcement includes improvements to court processes, to make it quicker and
smoother for landlords to regain their properties when they have a legitimate
reason to do so.

“Removing no-fault evictions is a significant step. This
announcement is the start of a longer process to introduce these reforms. We
want to build a consensus on a package of reforms to improve security for
tenants while providing landlords with the confidence that they have the tools
they need.

“We will launch a consultation on the details of a better system that will work for landlords and tenants. The government will collaborate with and listen to landlords, tenants and others in the private rented sector to develop a new deal for renting. Ministers will also work with other types of housing providers outside of the private rented sector who use these powers and use the consultation to make sure the new system works effectively.�

https://www.parliament.uk/writtenstatements

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