Scrapping Section 21 will trigger a rise in homelessness

admin    Uncategorized     agents

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

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Scrapping Section 21 will trigger a rise in homelessness | LandlordZONE.

View Full Article: Scrapping Section 21 will trigger a rise in homelessness

Base Rate unchanged with inflation below target

admin    Uncategorized     agents

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%

The post Base Rate unchanged with inflation below target appeared first on Property118.

View Full Article: Base Rate unchanged with inflation below target

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.

View Full Article: Scrapping Section 21 will trigger a rise in homelessness

Lib Dems would scrap Section 21

admin    Uncategorized     agents

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

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Lib Dems would scrap Section 21 | LandlordZONE.

View Full Article: Lib Dems would scrap Section 21

Habito enters buoyant Company BTL market – new range of mortgages

admin    Uncategorized     agents

Buy-to-Let
Mortgages:

LONDON, 18 SEPTEMBER
2019: Habito, the pioneering mortgage broker and lender, today
launches its first suite of Company buy-to-let mortgages adding to
its BTL offering just two months after it entered the lending space
with a range of Individual BTL products.

â—�
Industry-leading rates: highly competitive pricing makes Habito a top
three lender in the Company BTL space

â—� Lightning speed
time-to-offer: Habito continues its pledge to more than halve the
industry’s standard time to offer

â—� First ever
jargon-free mortgage T&Cs: Habito becomes first lender with
mortgage T&Cs certified as “Clear & Simple� by Fairer
Finance

Available
exclusively through Habito’s brokerage, the rates and pricing are
among the industry’s most competitive, placing Habito in the top
three Company BTL mortgage providers, by price, speed to offer and
certainty. Eligible landlords will be able to secure financing for
their investment with a deposit of just 20%. An introductory cashback
offer of £250 is available for a limited period.

Habito’s new range
of mortgages will provide landlords with a range of financing options
designed to optimise their property investments, while delivering
speed and certainty throughout the mortgage application process.
Products are available in fixed terms up to 10 years, with 2-year
fixed rate prices starting at 2.59% for a 60% loan to value (LTV)
product and a market leading 75% LTV price of 2.84%.

Since launching its
own range of mortgages in August, Habito has been making good on its
promise to more than halve the industry’s standard time to mortgage
offer from 21 days. Using proprietary technology and fast-track
underwriting, Habito now aims to deliver a 10-day Time To Offer
service meaning that buy-to-let mortgage applicants can be better
served than ever before.

Daniel Hegarty,
Founder and CEO of Habito said: “In spite of uncertain political
and economic times, financing a buy-to-let property through a limited
company is proving to be a very appealing route for a growing number
of landlords. Clearly competitive rates and value for money,
operating costs and yields are the key drivers for property
investments, but we’re seeing more and more demand for mortgage
offers with speed, innovation and certainty – something we’re proud
to be taking a lead on at Habito.�

Alongside the launch
of its company BTL range, Habito will debut its new Mortgage Terms
and Conditions which have been written in partnership with consumer
group, Fairer Finance, to remove all jargon and meet the most
rigorous readability measures[1]. Habito’s mortgage Terms and
Conditions become the first of their kind to be awarded Fairer
Finance’s “Clear & Simple� mark and set a new standard for
the industry.

Hegarty continues: “I’m beyond proud to be unveiling our brand new “Clear & Simple� mortgage T&Cs which speak to a personal ambition of mine to rid the mortgage world of jargon.

Our mission has always been to set people free from the hell of mortgages and our research has proven a correlation between mortgage jargon and people paying over the odds each month on their mortgage.

Jargon has a lot to answer for and we’re committed to rooting it out. We still have a long way to go but tackling the industry’s lengthiest, most complex and least customer-friendly document is a big step in the right direction.�

Habito’s range of
Company BTL mortgages will be available exclusively via the Habito
brokerage where all customers receive free, whole-of-market and
independent advice. For more information about Habito’s vision, the
full range of mortgages and how to apply, visit:
https://www.habito.com/borrow-with-us

About Habito:

Habito’s
mission is to release people from the hell of getting a mortgage and
to transform the UK’s £1.3tn mortgage market by taking the stress,
unnecessary paperwork and arduous and confusing process out of
financing a home.

Since launching
in April 2016, Habito has:

â—� Helped more
than 250,000 people better understand their mortgage needs

â—� Completed
£2.7 billion in mortgage submissions

â—� Built an
award-winning service – Corporate Excellence Awards 2019 – Most
Trusted Online Mortgage Broker, MoneyNet Awards – Best Online
Mortgage Broker 2019 and The Great British Entrepreneur Awards – Top
20 Most Exciting Companies 2019

â—� Created a
service customers love: 5* rating on Trustpilot, from more than 3,300
reviews

â—� Increased
staff headcount to over 185 and continues to grow

â—� Raised
£32.5million in funding from some of the biggest names in Venture
Capital – Augmentum, Atomico, Mosaic Ventures and Ribbit Capital

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Habito enters buoyant Company BTL market – new range of mortgages | LandlordZONE.

View Full Article: Habito enters buoyant Company BTL market – new range of mortgages

Call of the week – missing gas safety certificate

admin    Uncategorized     agents

Most landlords thankfully never have to use a section 21 notice but almost all of them rely on the certainty they can use it.  According to our recent survey on possession reform, the largest ever performed non-governmental survey of the PRS, 98% of landlords think being able to use section 21 is vital to their […]

The post Call of the week – missing gas safety certificate appeared first on RLA Campaigns and News Centre.

View Full Article: Call of the week – missing gas safety certificate

Lowest annual house price growth since September 2012

admin    Uncategorized     agents

ONS UK House Price Index: July 2019: Monthly house price inflation in the UK, calculated using data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland.

Average house prices in the UK increased by 0.7% in the year to July 2019

The post Lowest annual house price growth since September 2012 appeared first on Property118.

View Full Article: Lowest annual house price growth since September 2012

Council Bonds and S21 Court Costs

admin    Uncategorized     agents

I am in the process of evicting a tenant with a Section 21. The council told the tenant to stay put after the Section 21 expiry date (typical), so forcing me to pay up £355 to send it all off to court to progress to possession.

The post Council Bonds and S21 Court Costs appeared first on Property118.

View Full Article: Council Bonds and S21 Court Costs

Possession reform: Have you made your views heard?

admin    Uncategorized     agents

The RLA is encouraging members to make sure they have responded to the Government’s consultation on plans to change the possession process. There is only a few weeks left for landlords and letting agents to have their say, with the consultation closing on 12th October 2019. What the consultation wants to know Specifically, the consultation […]

The post Possession reform: Have you made your views heard? appeared first on RLA Campaigns and News Centre.

View Full Article: Possession reform: Have you made your views heard?

Lib Dems vote for Section 21 ban

admin    Uncategorized     agents

Assuming the Liberal Democrats ever get near government again, their members have voted for the policy proposal of banning Section 21 at their party conference in Bournemouth.

This policy will presumably feature in next Lib Den manifesto and may or may not have time to be updated following the government consultation that is due to be completed on the 12th of October.

The post Lib Dems vote for Section 21 ban appeared first on Property118.

View Full Article: Lib Dems vote for Section 21 ban