Revealed: 5,700 evictions sitting in limbo following ban, EXCLUSIVE analysis estimates

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True extent of problems caused by government’s sudden evictions ban are uncovered by the analysis, which reveals how thousands of landlords must now wait for months until proceedings can restart or conclude.

Research on behalf of LandlordZONE has revealed that there are over 5,000 evictions which have become stuck in the legal system following the government’s evictions ban announced on 18^th March.

We have spoken to several of these private landlords, many of whom launched evictions proceedings against tenants for non-payment of rent well before the ban.

These landlords are now stuck with tenants who have often not paid rent for months and who are now able to live rent free in their properties until at least early June.

And as LandlordZONE has pointed out before, the huge backlog within the court system that has built up since the evictions ban means these landlords may have to wait until July or August before court hearing dates become available.

£22,000 arrears

We have been made aware of one case of a landlord owed £22,000 in arrears from her tenant who had not paid rent for the best part of eighteen months and had the eviction date set with the bailiff that week.

But the court cancelled the eviction and she will now have to wait for up to six months to complete the eviction, adding more lost rent to her debt, which she says could push her into financial collapse.

Tim Frome, Legal Director of Landlord Action, estimates that there are 25,000 cases now stuck in the system of which 15,370 are social landlords, 4,345 are ‘accelerated cases’ via a Section 21 notice not requiring a court hearing (but needing a judge to look at the paperwork). This leaves 5,723 private landlord cases via Section 8 notices left in limbo.

These estimates are based on analysis of the previous three months’ government possession statistics.

20,000 cases

“We must be talking over 20,000 cases that may require some form of hearing that have currently been stayed,” says Frome.

“There will also be new cases that have been issued over the last month, and the practice direction relating to the stay on current possession cases was updated yesterday to say new cases should still be issued.

“At Landlord Action we have over 600 cases that are in the different possession stages including serving a notice.

“Over 500 are live possession claims with the courts that are currently stayed. We have done all we can to prepare for when the hearings are rescheduled from beginning of July as it is clearly going to be a busy time for us.

“The Courts will be
under huge pressure as the block listed hearings generally only last 5 minutes.
As there are likely to be further rent arrears by the time of the hearing and
potentially other issues that have occurred during the extended period we are
likely to see a number of these cases adjourned for longer hearings in the
future.

“This will put
more pressure on the court system over the next six to nine months.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Revealed: 5,700 evictions sitting in limbo following ban, EXCLUSIVE analysis estimates | LandlordZONE.

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Right to Rent: Government wins appeal

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The government has won its appeal against a ruling that its Right to Rent scheme breaches human rights laws, it was revealed today. Under Right to Rent, private landlords face potential imprisonment of up to five years if they know or have “reasonable cause to believe” that the property they are letting is occupied by someone […]

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BREAKING: Campaigners lose latest legal battle to have Right to Rent scrapped

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Four years after it was first introduced, legal campaigners have lost their latest court appeal over the scheme, which they claim is responsible for prompting discrimination against ethnic minorities by landlords.

A campaigning group has lost its latest legal battle to have the government’s controversial Right to Rent scheme scrapped on the grounds that it prompts landlords to discriminate against ethnic minorities.

In a judgement published earlier today at The Royal Court of Appeal, Lord Justices Davis, Henderson and Hickinbottom agreed that the scheme was discriminatory, but stopped short of finding that it violates human rights law.

They instead left it to MPs and the government to decide whether the racial discrimination is ‘greater than envisaged’, pointing out that only a small minority of landlords were being discriminatory.

This legal process has been ongoing for nearly two years after the Joint Council for the Welfare of Immigrants (JCWI) secured permission for a Judicial Review of the scheme, which was launched by Theresa May when she was Home Secretary.

Supreme Court

After several more court actions, this latest decision means in practice that the JCWI must now take its case to the Supreme Court, most likely its last chance to have Right to Rent amended or scrapped.

The scheme was introduced fully in October 2015 following a six-month trial in the Midlands, and requires landlords to check the immigration status of prospective tenants.

Any landlord found to have rented to someone who doesn’t have the required immigration status faces a fine of up to £3,000 or a criminal sentence.

Commenting on the
decision, Chai Patel, Legal Policy Director of the JCWI, says: “At a time when
our lives depend on our ability to stay home at home safely, ethnic minorities
and foreign nationals are being forced by the government to face discrimination
in finding a safety place for them and their families to live.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Campaigners lose latest legal battle to have Right to Rent scrapped | LandlordZONE.

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Covid-19 text message scams crackdown funded by Banking Industry

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A specialist police unit funded by the banking industry has executed several warrants across the country in a crackdown on criminals sending scam text messages and emails exploiting the coronavirus outbreak.

The Dedicated Card and Payment Crime Unit (DCPCU) is made up of officers from the City of London Police and Metropolitan Police and is responsible for targeting the criminal gangs responsible for fraud.

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MPs to grill ministers and officials on Coronavirus evictions policy

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Parliamentary committee is to looks at the evictions ban and also wants to hear from landlords before its starts quizzing the government. Have your say.

MPs
are to investigate fears that tenants are building up rent arrears and facing
eviction when the three-month ban expires.

Parliament’s
Housing, Communities and Local Government Committee has launched an inquiry to
find out how effective its support for private renters has been during the
crisis as well as what long-term strategies will need to be put in place to
support them once current measures expire.

MPs on the committee are to grill ministers and officials on their response to Covid-19 including a number of schemes intended to support people in the private rented sector.

This has included halting evictions for three months and raising the Local Housing Allowance rate.

However, there are concerns
about the short and long-term impact of these strategies, including the quality
of accommodation and access to amenities and the exit strategy when social
distancing measures are reduced.

The committee has launched the inquiry by calling for evidence, which landlords can submit their responses to.

Chair
Clive Betts, MP says: “It is vital that those in precarious living situations
are supported by the Government. People cannot be forced to leave their homes
at a time when finding a new place to live simply isn’t possible.

“However,
we must also look at what will happen a month from now and beyond. What happens
in three months’ time when the eviction ban lapses for people who have no job
and now owe three months’ rent?”

The committee particularly wants to focus on what problems remain an immediate concern as well as the post-lockdown impacts for renters and what action is needed to help them.

Have your say here.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – MPs to grill ministers and officials on Coronavirus evictions policy | LandlordZONE.

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Blog: Coronavirus: Welsh landlords ask for ‘level playing field’

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Grants of up to £10,000 have been offered to businesses running holiday lets, while the PRS is ignored. Wales policy officer Tim Thomas shares the latest on NRLA calls for a level playing field. ‘Now is a precarious time to be a landlord. Businesses across Britain have been hit hard by coronavirus – and landlords […]

The post Blog: Coronavirus: Welsh landlords ask for ‘level playing field’ appeared first on RLA Campaigns and News Centre.

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EXCLUSIVE: Number of licensing scheme starts set to DOUBLE after crisis is over

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Landlords around the UK can expect to see a significant increase in the number of councils launching new licensing schemes over the next 12 months once the pandemic lockdown has eased.

A new local authority licensing scheme is set
to be launched every eight days in the next 12 months one the Coronavirus
crisis is over, LandlordZONE can reveal.

The surprising statistic is part of new data which shows how quickly schemes are springing up around the UK; in the last 12 months, 20 schemes were launched – one every 18 days – but they’re rapidly accelerating, with about 47 schemes expected to launch in the next year, according to consultancy Kamma.

Its data shows there are more than 100
discretionary schemes across the UK in more than 70 councils, with a greater
number of selective schemes implemented.

Meanwhile, the National Residential Landlords Association submitted freedom of information requests to councils in England between November 2019 and February 2020, and received more than 200 responses, with 53 councils confirming they’re operating additional or selective schemes, or are in the process of launching one. It found that London has the most schemes, with 20 boroughs insisting landlords buy a licence.

Trend

“We’re definitely seeing a trend amongst
councils towards implementing a greater number of licensing schemes,” Kamma CEO
Orla Shields tells LandlordZONE.

“London is certainly becoming a hot-spot for
licensing schemes, and there are a number of consultations that have taken
place or are currently underway in the capital.

“But we’re also seeing a big increase in other councils around the UK introducing schemes, particularly in more urban areas.”

The Government’s review into selective licensing last year concluded schemes were effective ‘when implemented properly’. However, some councils such as Coventry have been criticised recently for going ahead with new schemes during the lockdown.

The Ministry
of Housing, Communities and Local Government’s Coronavirus guidance is that
where they’re in the process of introducing non-mandatory licensing schemes,
councils should consider pausing them at an appropriate point, “in line with
the advice on proactive and reactive work”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Number of licensing scheme starts set to DOUBLE after crisis is over | LandlordZONE.

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VAT rate on 52 HMOs?

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I have a portfolio of 52 all residential HMO units and my question is what VAT rate should I be paying?

British Gas states more than 60% or more domestic is 5%.

Please can anyone confirm.

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Covid-19: 74% of tenants have contacted landlords about rent payments

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A survey carried out by Landlord Action, has revealed that since government measures to prevent the spread of COVID-19 were introduced on 23 March, 74% of landlords have been contacted by tenants saying they will struggle to pay their rent.

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Three quarters of landlords say tenants are worried about paying the rent

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Survey by Landlord Action highlights how the lockdown is beginning to significant impact the finances of both tenants and landlords.

Three quarters of landlords canvassed by evictions specialist Landlord Action say their tenants have been in contact during the Coronavirus crisis to discuss their rent.

The survey of 537 landlords found both that their tenants are worried about paying their rent in the future, but also that 36% of landlords claimed they would struggle to pay their mortgage if their tenant stopped paying the rent.

“We’ve been inundated with phone calls from landlords concerned about rent payments and our advice is to speak to your tenants, understand how they are financially impacted but also explain how you will be financially impacted,” says Paul Shamplina of Landlord Action.

“Where possible try and come to an arrangement with them, understand what government support they are asking for. Having something to help cover the mortgage is better than nothing.”

Some 70% of the landlords said they would not start eviction proceedings against tenants during the crisis if they fell into arrears.

And referring to recent calls by several rental sector campaigning groups to introduce a rental holiday during the crisis, Shamplina has warned that offering a blanket rental waiver to tenants within the private rental market is the wrong approach to take.

“This is a nightmare scenario for everyone – landlords and tenants alike. However, taking from one group to give to another is not the solution,” he says.

“The vast majority of private landlords own one or two properties, many with mortgages, and they too will be facing the same challenges of job losses.

“Good tenants do not become bad tenants overnight. These are extraordinary circumstances, and everyone is impacted in some way.”

Download Landlord Action’s free rent reduction agreement pro-forma.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Three quarters of landlords say tenants are worried about paying the rent | LandlordZONE.

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