INVESTIGATION: Why a Worcester landlord was refused permission for an HMO at appeal

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The story of property owner Mark James’s attempts to turn a house into an HMO gives a fascinating – but frustrating – insight into how and why some councils make their decisions.

Landlords are being warned that they
can’t rely on informal legal advice from local councils when fighting court
battles.

Worcester
landlord Mark James saw his appeal thrown out by planning inspectors, after the
city council rejected his plan to convert a three-bedroom detached house into a six-bed HMO.

The property, in Comer Road, had been on the
market for nearly 12 months but hadn’t had a single offer, so Mr James decided
to apply to convert it.

He told the appeal he had been advised by
council planners that converting the home would not exceed its 10% limit on the
number of HMOs within a given area, but the government inspector said the
council was not bound by informal advice.

“You might assume that you’re getting correct advice from
a statutory body but if they’re only giving you informal advice there’s no
legal obligation,” says Gavin Dick,
local authority policy officer for the National Landlords Association.

Mr James had also argued the council could
ignore its policy in “exceptional circumstances” and approve plans if it could
be shown the home had gathered little interest when put up for sale as a normal
home.

Ironically, Platinum Property Agents
confirmed that a significant factor in its failure to sell was the
proliferation of student HMOs in the immediate vicinity.

Councils usually charge for formal legal
advice. But even this might not be enough as the highly political nature of
HMOs for many councils mean local councillors can be swayed by vocal opponents
and neighbours of proposed plans, despite applications meeting legal conditions,
says Dick.

In this case, several neighbours had objected
to the plan when it was put forward last year.

“Councillors will often vote against them,” he says. “Councils
create market distortion and it will be hard to sell a house where there are
other HMOs because families don’t want to move into an area of HMOs, which is
why landlords want to convert them.”

Mr James’s plea to be awarded full
costs was also rejected because it could not be shown that the council had
behaved unreasonably.

LandlordZONE has approached Mark James for comment but
not received a response yet.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – INVESTIGATION: Why a Worcester landlord was refused permission for an HMO at appeal | LandlordZONE.

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RENT TO RENT: ‘Why landlords should read my horror story, so they don’t get ripped off like me’

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Read our interview with a London landlord who is significantly out of pocket after signing up to a three-year guaranteed rent scheme recommended to her by a reputable letting agent.

A landlord is urging others
to be wary of letting their properties via ‘rent to rent’ deals after one
tenancy went wrong and cost her £15,000 in lost rent and court costs.

Juliette Elderton, who looks
after 18 properties in South London on behalf of her family, instructed a
leading national estate agency to rent out one of the houses within her portfolio
two years ago.

The agency offered her a three-year deal on the property in Thornton Heath (pictured), in which she would be paid a guaranteed rent of £1,100 a month and, because she lives in Essex and has family commitments, Juliette was happy to accept, as it offered her regular income with the minimum of hassle.

Sold to her as a ‘corporate let’
via a specialist ‘rent to rent’ company, the arrangement began to unravel after
the rental payments stopped, and Juliette realised what she had let herself in
for.

It transpired that the rent-to-rent company had sub-let the property without permission to a Brazilian-based ‘estate agent’ who specialises in finding accommodation for Brazilians arriving in the UK to look for work, and who was charging the family in the property £1,600 a month, £500 more than Juliette was receiving. And then the rent payments stopped, without explanation, even though the tenants told her they were paying rent to the ‘Brazilian agent’.

It then took Juliette over
20 months to evict the family living in the house, and her attempts to persuade
the original agent to compensate her have been rebuffed.

“When you’re paying an agent
a lot of money to manage a property or find tenants you assume they are making
the appropriate checks on who they are dealing with, but in my case it turns
out they weren’t,” says Juliette.

According to Landlord
Action, which helped her evict the tenants, she now only has two paths open to
her; report the agent to the relevant property ombudsman and hope for redress,
or persuade the agent to admit liability and claim off their Public Indemnity
insurance.

“This is the fifth time I’ve
had to take a tenant to court over the past eight years and each time I’m so
relieved to get the property back that I can’t be bothered to chase the money
I’ve lost – but this time, because I’ve been treated so badly, I am going to
take it further,” she says.

Landlord Action’s Paul
Shamplina says: “The problem with rent-to-rent deals like this is that there
are so many companies and people in the chain paying rent to each other that it’s
difficult to even identity who to evict.

“And in my experience, these
kinds of scam rent-to-rent schemes are becoming more and more common; they need
to regulated so that landlords have piece of mind, but it’s too late for
Juliette.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – RENT TO RENT: ‘Why landlords should read my horror story, so they don’t get ripped off like me’ | LandlordZONE.

View Full Article: RENT TO RENT: ‘Why landlords should read my horror story, so they don’t get ripped off like me’

Housing Court LATEST: all-party reform group sets out how landlords will access justice

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As the housing sector waits to hear if the government will give a national Housing Court the green light, Justice sets out how it should work.

Campaigning
legal group Justice has come up with plans for a more unified and accessible
housing dispute system, as an alternative to the Government’s proposed Housing
Court.

Its
report Solving
Housing Disputes calls
for greater coherence, access to legal advice and information, along with
conciliatory methods to resolve disputes.

A
proposed national Housing Dispute Service (HDS) would be funded by subscription
from housing providers, fusing elements of problem-solving, investigation and mediation
used elsewhere in the justice system.

Two years ago, Ministers unveiled plans for a specialist
Housing Court to speed up the settlement of property disputes between landlords
and tenants.

However, Justice says its dispute service is a credible
alternative. A spokeswoman explains: “We have no indication at this stage as
to whether the Government will proceed with a Housing Court. But in any event,
our proposal for an HDS pilot is as an alternative to a court-based system.”

Last year, the Government also announced plans to create
a housing complaints resolution service – a single point of access
for all housing redress schemes – which would allow homeowners and tenants to have
their complaint directed to the right redress scheme.

Justice’s report suggests ways to improve the current
system, building on this resolution service, including making courts and
tribunals more accessible for resolving disputes, and assisted online services to
help people engage with the system.

Andrea Coomber, director of Justice, says: “The proposal for the HDS comes
within the context of the Government pitching a ‘new deal’ for tenant-landlord
relations. Within that context, we think a new approach to disputes, based on
conciliatory methods, transparency and exploration of underlying problems
should be explored.”

“This is a substantial report which has been well researched and evidenced,” says Sean Hooker, Head of Redress at the Property Redress Scheme.

“I like the approach that combines a radical solution that will stimulate debate and further consideration but also offers practical measures that could help improve the housing complaint landscape within the existing framework”

Read the
report in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Housing Court LATEST: all-party reform group sets out how landlords will access justice | LandlordZONE.

View Full Article: Housing Court LATEST: all-party reform group sets out how landlords will access justice

Elderly widow and her landlord son win fight for Housing Benefit

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Here RLA trainer, housing benefit and Universal Credit expert Bill Irvine examines a recent case in which a local authority refused to pay housing benefit to an elderly woman renting a home from her son.  “RLA members may recall an earlier article involving an aunt and niece, where Housing Benefit had been wrongly refused, simply on the […]

The post Elderly widow and her landlord son win fight for Housing Benefit appeared first on RLA Campaigns and News Centre.

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Rent controls central plank in Sadiq Khan’s mayoral re-election bid

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Mayoral Election:

London’s mayor
Sadiq Khan says the mayoral election is nothing less than a
referendum on rent controls.

“If I am
re-elected on May 7th, I will continue to stand up for Londoners
bearing the brunt of our city’s housing crisis by demanding that
City Hall is given the power to introduce rent controls in the
capital. Today, I launch my re-election campaign by declaring that
the forthcoming contest is nothing less than a referendum on rent
controls.

“Voters will face a clear choice between a Labour mayor who will continue to stand up for renters, or a Tory candidate who has shown he will oppose the measures needed to help Londoners struggling with the cost of living, says Khan.

However, The
Residential Landlords Association (RLA) and the National Landlords
Association (NLA), landlord bodies representing over 60,000 landlords
between them have voiced their concerns about Sadiq Khan’s plans to
introduce rent controls.

Both associations
agree on the issue, claiming that rent controls in London would be a
disaster for aspiring tenants.

“Khan’s proposal
comes after experts highlighted the danger rent controls would cause
at a time when the demand for private rented homes in the capital is
outstripping supply, according to both the RLA and the NLA.

Mr Kahn has said
that, “London gave me the chance to go from the council estate
where I grew up to being mayor of the greatest city on earth. But I
fear that if my Tory opponent gets into City Hall, many Londoners
will be forced out of our city due to skyrocketing rents and denied
the same opportunities to fulfil their potential.

“It’s clear that in recent years, London’s private rents have spiralled out of control – between 2010 and 2020, rents rose by 27%. The average private rent for a one-bedroom home in London is now more than the average for a three-bed home in every other region of England. The Tories might not like it, but Londoners need rent controls now,” Khan says.

But the Centre for
Cities has expressed its concerns about imposing strict rental
controls which it says would “close off London to new residents.”
And last year, Professor Kath Scanlon, a housing expert at the London
School of Economics, following a detailed study, said that the rent
control proposal would result in landlords deciding to leave the
rental market.

John Stewart, policy
manager for the Residential Landlords Association and Chris Norris,
policy director for the National Landlords Association, said jointly:

“Rent controls
might appear attractive to those already renting but they would be a
disaster for anyone looking for somewhere to rent.

“All they would
achieve, as history and experience elsewhere tells us, is to drive
landlords out of the market exacerbating an already serious shortage
of homes available.

“Instead of
putting out simplistic and superficially appealing proposals in
attempt to win votes, the Mayor should focus on boosting the supply
of available housing using the powers he already has.

“Only then will he
make any discernible impact on improving the affordability of housing
across the capital.”

David Cox, chief
executive of ARLA Propertymark, has said:

“Rent controls do
not work; it hits hardest those its designed to help the most, and
the Mayor of London has failed to learn the lessons of history. The
last time rent controls existed in this country, the private rented
sector shrunk to the lowest levels ever recorded.

“At a time of
demand for PRS homes massively outstripping supply, rent controls
will cause the sector to shrink. In turn, this means professional
landlords will only take the very best tenants, and the vulnerable
and low-income people that rent controls are designed to help, will
be forced into the hands of rogue and criminal operators, who may
exploit them.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Rent controls central plank in Sadiq Khan’s mayoral re-election bid | LandlordZONE.

View Full Article: Rent controls central plank in Sadiq Khan’s mayoral re-election bid

Selective licensing confirmed for South Wigston

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Landlords with rental properties in the ward of South Wigston, Leicestershire, will have to apply for a licence in order to rent out their property lawfully. It comes as plans to introduce a selective licensing scheme in the ward were given the go ahead at a recent council cabinet meeting. The new selective licensing scheme […]

The post Selective licensing confirmed for South Wigston appeared first on RLA Campaigns and News Centre.

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Today in politics: Benefits, flooding and electrical safety

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The property ombudsman has today warned agents must not discriminate against benefit tenants. We look at what she has to say, along with new figures on the number of elderly renters living in poverty and benefit overpayments. We also look at what the government has to say on support for tenants in flood risk areas.  […]

The post Today in politics: Benefits, flooding and electrical safety appeared first on RLA Campaigns and News Centre.

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Credit checking giant backs platform hoping to disrupt traditional tenant referencing

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London firm CreditLadder is now partnered with global giant Equifax to help landlords and letting agents reference tenants by checking their rent payment track record.

An online platform that both enables tenants to improve their
credit score by paying their rent on time, and landlords and letting agents to
check their rent payment track record, has begun a partnership with one of the UK’s
largest credit checking agencies, Equifax.

CreditLadder’s service helps landlords and letting agents better
understand which prospective tenants have the best rent payment records if they
use CreditLadder’s tenant referencing service that uses its own rent recording
data.

This is the same data that is also then added to a tenant’s credit
history and used by Equifax, which in turn helps the UK’s main high street
lenders determine creditworthiness.

The announcement makes CreditLadder the UK’s largest rent
reporting platform; it has thousands of tenants signed up to its service and
has reported rent worth over £150 million since it launched four years ago.

It also recently received £500,000 in funding from an HM Treasury
tech fund after the government signalled its desire to see a more level playing
field in the housing market.

While homeowners have their mortgage repayments recognised, until
recently renters have not, an imbalance the previous and current Conservative
government have wanted to correct.

Huge lift

“The inclusion of rental
data in credit assessments is a huge lift to improve financial inclusion and
fairer access to the right financial products,” says Janice Rudd, Data Director
at Equifax.

“This data insight provides
lenders with a much more reflective picture of the amount renters can afford to
borrow.

“Renters who make full and
timely monthly payments should see a significant benefit in proving their
ability to repay a commitment, just like mortgage payers. We’re pleased to work
with CreditLadder to unlock better financial outcomes for consumers and lenders
alike.”

Sheraz Dar, CEO at CreditLadder.co.uk,
say: “CreditLadder’s mission is to deliver financial fairness to the UK’s
millions of tenants, helping them access the credit they need, for example when
they want to buy their own home.”

The other online service
offering a similar rent reporting service is Canopy, while Homelet recently
integrated the Open Banking capabilities of Movem into its referencing service.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Credit checking giant backs platform hoping to disrupt traditional tenant referencing | LandlordZONE.

View Full Article: Credit checking giant backs platform hoping to disrupt traditional tenant referencing

Blogger says tenants with Coronavirus should get 3 months rent free!

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Richard Murphy of Tax Research LLP, a Professor of Practice in International Political Economy at City, University of London and regular columnist for AccountingWEB.co.uk, claims Landlords should bear the cost of Coronavirus and provide three months free rent to tenants who contract Covid-19.

The post Blogger says tenants with Coronavirus should get 3 months rent free! appeared first on Property118.

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Definitive answer on live-in landlord status?

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I’m just wondering whether you can tell me definitively from a legal point of view: I have lodgers in my house and the fourth bedroom is mine. I have been offered a summer job abroad which could see me going away up until mid December.

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