Tenants face little chance of finding Legal Aid when remote possession hearings begin in August

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The Law Society has called for vulnerable
tenants to be given access to Legal Aid when the possession hearings re-start
in August, but experts that LandlordZONE has talked to warn that this laudable intention
is unlikely to be delivered.

The Law
Society says the lengthened stay on evictions is an important step to protect
vulnerable tenants, and its president Simon Davis claims that: “When hearings
recommence, it is vital that legal aid is available to tenants and that the
safety of court users is ensured.”

After August 23^rd, Courts will hear most possession hearings
remotely until the autumn and could conduct possession hearings by phone or
Skype.

Letters sent our recently by at least three county courts suggest that the lack of a duty solicitor, plus the practicalities of remote hearings, will make it hard for tenants to access any sort of advice and support, including Legal Aid.

Duty solicitor

But housing solicitor Sue James, of Hammersmith & Fulham Law Centre, believes taking away the duty solicitor will almost certainly mean more evictions.

“Clients facing possession proceedings often
have welfare benefit problems which means they are on very low incomes,” she
says.

“They may also lack computers to access the
court remotely or to have data or credit on their phones. Remote hearings for
duty possession cases are not workable.”

The housing team at Citizen’s Advice tells LandlordZONE that many of its offices are already working with their local courts to discuss what support can be put in place so defendants have access to advice beforehand, and representation if needed.

It adds: “If they have been unable to access
advice, then they should ask the court about what local arrangements have been
made. They could also ask the court to adjourn the case to allow more time to
get advice.”

Paul Shamplina of Landlord Action adds: “Getting Legal Aid at the best of times is very difficult for tenants because they have to prove they quality and often they don’t, but until we get a clear understanding of court representation, everyone’s a bit in the dark.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tenants face little chance of finding Legal Aid when remote possession hearings begin in August | LandlordZONE.

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Latest research reveals London’s rental market Covid battering

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New lets agreed in the prime London lettings market over the course of lockdown fell by more than 70% compared to the same period last year, while achieved rents dropped by 3.4%, it has been revealed.

House prices did worse, though, falling by 8.4% between mid-March and the end of May compared with the period pre-lockdown, according to data firm LonRes.

It says while there was a 23% reduction in new lettings listings during lockdown compared with 2019, sales saw a 67% fall in new listings over the same period. It explains that this reflects the fact that landlords wanting to avoid void periods list their properties as soon as they become vacant, whereas owner-occupiers can often hold off selling until market conditions become more certain.

It reports that with
agents unable to show properties and home-movers unable to transact, it was no
surprise that the number of lets over lockdown was significantly down. Many tenants have been choosing to say put while
agents are reporting high levels of renewals. This meant that activity,
even pre-lockdown, was lower than during the same period in 2019. 

But as estate agents
opened and viewings began, new instructions have increased; in the second half
of May, there were 16% more new lettings instructions than during the same
period in 2019

Marcus Dixon, head of research at LonRes, says: “Looking ahead, landlords will be hoping that pent-up demand from tenants will be enough to absorb increased levels of stock currently on the market, if not we could see some further downward pressure on rents in the coming weeks.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Latest research reveals London’s rental market Covid battering | LandlordZONE.

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CGT – I “want” to pay, but how?

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I seem to be caught between two systems. I sold a property in February 2020 and made a small loss. I sold another in May 2020 and made a gain which is not completely cancelled out by the previous loss plus my allowance.

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BREAKING: New cleaning rules revealed for Airbnb landlords

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Airbnb owners may have to follow a new set of property cleaning protocols when the tourism industry re-opens on 4^th July, it has been revealed.

The UK Short Term Accommodation Association (STAA) has developed the protocols with many of the UK’s leading tourism bodies for self-catering and short-term lets rentals.

The document has been shared with the Department of Culture, Media and Sport (DCMS) and are designed to support DCMS Secretary Oliver Dowden’s efforts to open up this part of the tourism industry if ‘consistent with public health’.

Merilee Karr, Chair of the STAA says: “Self-contained accommodation has a lower risk than other areas, so I would hope that that will be at the front of the queue and the industry wants to ensure everyone is ready and able to meet the right standards,” he said recently.

“These protocols should provide consumers with the confidence to travel safely to any property that meets them,”

“I agree with Minister Dowden that short-term rentals which adhere to these cleaning protocols, offer a comparatively low-risk option for customers looking to book a holiday in the current environment.”

For landlords with Airbnb or other short lets platform properties, one of the best steps they can take is to get independently accredited by the STAA industry partner Quality in Tourism, through its Safe, Clean and Lega assessment scheme.

The protocols include:

Risk assessment

• The core principle of the guidance is risk management which is why a risk assessment of the property is the first thing that needs to be done. Broadly speaking, it involves identifying potential risks within a property and taking active steps to mitigate those risks.

Cleaning

• Cleaners must wear appropriate protective clothing, avoid using microfiber cleaning cloths and instead use disposable sanitising wipes because they are less likely to spread the infection accidentally. They must use products which both sanitise and disinfect and keep any contact with guests to an absolute minimum.

• It’s recommended that a cleaning checklist is given to cleaners with a clear set of instructions to follow, guidance on the basic materials and equipment to be used and specific areas that cleaners should be mindful of. Also, provide a cleaning standards tick list for incoming guests to show what has been cleaned.

Guest contact

• Contact may sometimes be inevitable e.g. when checking passports/IDs. In these circumstances, operators should wear protective clothing and maintain a safe two metre social distance whenever possible.

• Operators should consider using contact-free check-in methods, such as key safes, although they must be mindful that such methods still pose a contamination risk.

• Operators should ensure that guests have all of the relevant information that they need ahead of their arrival. Tips include providing information for guests via email before they arrive such as helpful numbers and contacts, guidance in case a guest shows COVID-19 symptoms, a list of local walks/attractions that are open under social distancing rules and appliance and heating instructions.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: New cleaning rules revealed for Airbnb landlords | LandlordZONE.

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Mortgage company put me on variable rate doubling my interest payments?

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I have lost my job, because of the coronavirus lockdown recently. I had a two year fixed term on a BTL property with Precise Mortgages which ran out on 1st of April and instead of giving me a new fixed term (which they refused) they put me on variable rate doubling my interest payment.

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OPINION: Despite government support, many landlords feel they have drawn the short straw…

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Whilst the government has shown landlords support, both commercial and residential landlords, laws currently being passed are putting both on the back foot, by preventing them from pursuing rent arrears claims and evictions.

Covid-19 is causing
widespread devastation across the whole country as tens of thousands
of people die earlier than they should, and a nationwide lockdown has
an impact on the economy that will take years to overcome. The
coronavirus pandemic is going to be the biggest post-war crisis our
country has seen, not withstanding its effect on the world-wide
economy – there is no doubt we will all be the poorer as a result
of this.

Firms are in danger of going out of business, and doubtless many will; families are in mourning, thousands will lose their jobs and landlords are facing unprecedented challenges – residential landlords are trying desperately to balance their desire to show human compassion while covering their costs, and commercial landlords want to help their business tenants survive, while balancing this with their own cash flow problems.

Some landlords have
really drawn the short straw: in particular those who were in the
process of evicting for legacy rent arrears prior to the lock-down,
and they now find themselves housing tenants for free, long-term –
the eviction bans, it seems, are constantly extended. Other landlords
fear that their tenants are avoiding paying rent, even when they
could afford to do so.

There’s a
compromise to be had somewhere: between the two opposing camps of
those landlords who want to stop the worst cases of deliberate rent
non-payment of rent, those tenants taking advantage of the situation,
and the government’s actions to support tenants, informed by
tenants and tenant lobbying groups.

Commercial landlords
in particular are worried about the new laws on rent collections,
with a bill set to pass through the House of Lords which will further
weaken their position: these landlords could soon be blocked from
perusing business rent arrears for at least 90-days

The Corporate
Insolvency & Governance Bill includes in its rubric a temporary
ban on landlords using winding up petitions where a tenant company
cannot pay its rent bills due to the coronavirus. It prevents
landlords from recovering rents, unless they are overdue by at least
90 days. Ordinarily, commercial landlords can pursue rents arrears
after seven days.

Commercial
landlords, and this includes many small private investors, argue that
this new legislation tips the balance of power too far in favour of
the tenant. And this, coupled with the temporary ban on their ability
to evict corporate tenants, who refuse to pay their rent, will overly
weaken the landlord’s negotiating position when it comes to
valuations and lease renewals.

With a new quarter’s
rent due on the June 24^th quarter day, many commercial
landlords are getting very concerned that they will receive even less
in rent payments than they did in March. It has been estimated that
only around 50% of the rent due from businesses in the UK had been
collected 10 days after the March quarter deadline. This compares to
around 70% in a normal year.

Landlords fear that
this latest bill will incentivise corporate tenants to not pay rent
even if they can afford to, so for many smaller landlord investors,
and some of the struggling mega corporates, the suspension of rent
payments, it is argued, could push them over the edge into
insolvency.

Residential
landlords appreciated that the Ministry of Housing, Communities and
Local Government recognised early on the vital role they play in
supporting their own tenants through the crisis by announcing a
series of measures to help both landlord and tenants, including:

• Changes to
  Local Housing Allowance rates to cover 30 per cent of market rents,
  helping tenants on low incomes
• A commitment to
  cover up to 80 per cent of wages of furloughed workers, a critically
  important decision, enabling more tenants to continue to pay their
  rent and their bills during the outbreak. The self-employed also
  qualify for payments of up to £2,500
• An extension of
  the mortgage ‘holiday’, initially offered to homeowners to buy
  to let, allowing landlords (although obviously only those with
  mortgages) to let tenants defer
  rent payments
• The deferral of
  VAT payments, meaning no business had to pay any VAT in March, April
  or May An extension to the notification period for repossessions to
  three months, with courts suspending all possession hearings for 90
  days

• Loosening of
  the rules around Right to Rent checks, allowing documents to be
  submitted electronically.

These concessions
are all in addition to the loans, grants and rates reliefs announced
in the budget. However, many private residential landlords fail to
benefit from much of this. Those without mortgages still need to
cover their costs and many rely on their rental income to fund their
living.

Student landlords in
particular are struggling when they find their tenants have gone home
to live with their families, as the universities and colleges closed
down. This could leave landlords with council tax bills to pay, while
many of their tenants think they don’t have top pay rent, even when
they are contracted to do so, and are refusing payments. Not only
does this seriously compromise the student landlords’ position,
they have perhaps even greater worries for next term, for the
possible dramatic reduction in foreign student numbers. It could mean
that many student landlords will leave the sector for good.

The National
Residential Landlords Association (NRLA) is making representations to
government for extra help for struggling residential landlords left
with empty homes, and it is calling for landlords of houses in
multiple occupation to be given council tax relief.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – OPINION: Despite government support, many landlords feel they have drawn the short straw… | LandlordZONE.

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