Report calls for Universal Credit five week wait to end

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A report published today by the Trussell Trust reveals that people claiming Universal Credit in July 2019 experienced a 42% increase in rent arrears since rollout commenced in 2015. The report recommends that the Government ends the five week wait for people to receive Universal Credit when applying for the scheme is ended. The findings […]

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Tenant Reform not to be retrospective?

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Maybe I haven’t read previous articles thoroughly, but I’ve just learned that this Government does not intend for new Tenancy Reforms to apply retrospectively. See reply below from Mark Lambert.

His answer was a blanket answer & did not address my specific concern

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First banning order issued against a landlord

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The first ever banning order against a landlord has been issued in England. The banning order-imposed by Telford & Wrekin Council, means that the landlord in question is barred from letting out a house-or being involved in any aspect of property management for the next five years. Telford and Wrekin Council applied for both a […]

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Scrapping Section 21 will trigger a rise in homelessness

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Section 21:

Leading tenant
eviction company, Landlord Action, says that as many as 50% of
Section 21 cases they handle are as a result of tenants wanting to be
re-housed by the council.

They believe the
abolition of Section 21, and subsequent expansion of Section 8, could
put thousands of tenants at greater risk of receiving a County Court
Judgement (CCJ) and ending up homeless as local councils will not be
obliged to re-house those with rent arrears judgements.

According to
Landlord Action, 95% of Section 8 cases are for mandatory two months’
rent arrears. It is unknown how many Section 21 cases are as a
result of rent arrears, but Landlord Action says it is the number one
reason landlords serve notice.

Data from the
Ministry of Justice reports that there were 22,527 accelerated
possession claims issued in 2018 (section 21 claims). Of those
accelerated possession claims under Section 21, 10,127 resulted in
evictions carried out by County Court bailiffs.

Therefore, if
landlords are forced to use Section 8 route in the future, thousands
more tenants will have rent arrears judgements against them, rather
than simply being evicted using Section 21. In addition, more tenants
could find themselves with a County Court Judgement (CCJ), which will
severely impact their future credit rating.

Commenting on what
this means for tenants, founder of Landlord Action, Paul Shamplina,
says:

“Local councils
will see when a tenant has a rent arrears possession order made
against them so will consider that that tenant has made themselves
homeless. Therefore, the council will not be obliged to re-house
them as they do at present under Section 21 accelerated procedure. If
those tenants cannot get accommodation in the private rented sector
and cannot be re-housed by the council, what will happen to them?�

In addition, Paul
Shamplina is concerned that the figures demonstrate that the number
of Section 8 hearings will double because landlords who would
previously have used Section 21 will use Section 8. This will double
the amount of court time before judges that is required, meaning that
a major recruitment drive of judges will be required to deal with the
increased number of hearings.

Recently, MHCLG
attended Landlord Action offices shadowing the solicitors and
para-legal staff to gain a greater understanding of the possession
process, and what impact reforms to Section 8 and court processes
could have.

“As well as a rise
in homelessness, I believe there will be many other unintended
consequences following the abolition of Section 21. These will
include, but not be limited to; vulnerable tenants struggling to find
accommodation as landlords become more selective; a surge in Section
21 claims as landlords feel increasingly powerless and opt to exit
the market.

“A shrinking
private rented sector will result in further rent rises for tenants.
In addition, unless anti-social behaviour is tackled within the
reforms, unruly tenants will have the opportunity to remain in
properties for longer causing landlords and their neighbours
unnecessary stress.�

The government
consultation on Tenancy Reform ends on 12th October. Landlord Action
is urging all landlords and lettings agents to have their say and
complete the survey as a matter of urgency.

https://www.surveymonkey.co.uk/r/52JFF5T

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Base Rate unchanged with inflation below target

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The Bank of England Monetary Policy Committee (MPC) has today voted unanimously to maintain the Bank Base Rate at 0.75%. This is largely because inflationary pressures have dropped below the medium term target of 2% with August’s CPI at 1.7%

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Scrapping Section 21 will trigger a rise in homelessness

admin    Uncategorized     agents

Leading tenant eviction company, Landlord Action, says that as many as 50% of Section 21 cases they handle are as a result of tenants wanting to be re-housed by the council. They believe the abolition of Section 21, and subsequent expansion of Section 8

The post Scrapping Section 21 will trigger a rise in homelessness appeared first on Property118.

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Lib Dems would scrap Section 21

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Banning Section 21:

Following
Labour’s example, the Liberal Democrats have passed a motion at
their conference which would result in the scrapping of the Section
21, the “no fault, no blame� eviction process, if they ever came
to power, or have any influence in a coalition, after the next
general election.

Removing Section 21 is currently under review by the Conservative government, and it is also the policy of any incoming Labour government.

The
Liberal Democrat members’ vote for the policy, which has been
mooted within the party for some time, was by an overwhelming
majority.

The Conference commitment on Section 21 and other private rented sector (PRS) reforms by the Liberal Democrats was to:

• Reform
  the private rental market generally
  to make it fairer for
  private renters.
• Provide
  support for private renters to enable them to safely report health
  and safety issues in rented properties.
• Support
  renters by enabling local authorities to create and maintain
  registers of landlords providing private rental properties for
  lease.

The
Conference specifically called for:

• The
  abolition of S21 by reforming
  of the Housing Act 1988.
• The
  reform of court process (as has happened in Scotland) to enable
  landlords to have easier access to justice if tenants are found to
  be in breach of their tenancy agreements.
• Further
  work to be undertaken with tenant and landlord organisations and
  groups to explore the opportunities for further reform and
  improvement of the private rental sector, such as revising the
  current assured short-hold tenancy legislation to encourage the use
  of long-term tenancies as a standard.

Tim
Farron, Liberal Democrat Shadow Secretary for Housing, Communities
and Local Government commented on the proposals saying:

“People
in this country are demanding a safe, secure home to live in. Yet the
Tories have failed to fulfil their promises to end “no fault
evictions� leaving many at the mercy on unscrupulous landlords.
Liberal Democrats demand better.

“That’s
why it’s fantastic that Liberal Democrats have passed this motion.
It is vital that the private rented market is made fairer for
renters, while we have a duty to support landlords who are doing the
right thing too.

“We
cannot stand by while tenants are turfed out of their homes through
no fault of their own – that’s why we’re demanding that this
Tory government do what they’ve said they will. And if they don’t,
they should make way for a party who would.”

David
Cox, Chief Executive of ARLA Propertymark has since responded by
saying:

“The
vote at the Liberal Democrat Conference is another attack on the
private rental sector and landlords operating within it.

“The
effects of the tenant fees ban have not yet been felt, and yet more
proposed legislation could deter landlords from operating in the
market. Although in the majority of cases there is no need for
Section 21 to be used, there are times when a landlord has no choice
but to take action and evict tenants from a property.

“The
proposed commitment will only increase pressure on the sector and
discourage new landlords from investing in buy-to-let properties.
This comes at a time when demand is dramatically outpacing supply,
and rent costs are rising.

“ARLA
Propertymark will be engaging with the Liberal Democrats to ensure
they fully understand the consequences of any changes, and all
changes are based on evidence, so landlords have the ability to
regain their properties if needed.�

The
ongoing Section 21 consultation

ARLA
Propertymark is urging its members to respond to the current UK
Governments, “A new deal for renting: resetting the balance of
rights and responsibilities between landlords and tenants�,
consultation, which is seeking views on implementing the Government’s
views on removing Section 21 and improving Section 8 eviction
grounds. Have your say:

The Section 21 consultation

What ARLA Propertymark is doing

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