Another licensing scheme delayed ‘due to Covid’

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Weymouth’s proposed selective licensing scheme has fallen victim to COVID-19 and still hasn’t been approved more than a year after its public consultation ended.

More than 500 people had commented on the seaside town’s proposals by the end of last April and since then, Dorset Council has held meetings with the police, landlords and agents, but admits that dealing with the pandemic has held things up.

The scheme, planned for part of the Melcombe Regis ward, would cover more than 900 properties and cost up to £625 for a five-year licence; it’s in the 10% most deprived neighbourhoods in the country, with 46% of properties privately let.

The council hopes licensing would raise management standards there and ensure proper tenancy arrangements are in place, while tackling anti-social behaviour and deprivation. Its consultation revealed that 60% of people thought that the scheme would positively improve the area.

Councillor Jon Orrell says: “It is frustrating that progress has stalled. Good standards of housing are key to improving the lives of many people. Now the council reorganisation is settled and coronavirus has temporarily abated the Melcombe board is due to resume with a new chairman. I hope to see improvements in the most deprived streets of Dorset.”

The council received representations from the Weymouth Landlords Association, Dorset Police and the National Residential Landlords Association. A spokesman adds: “We have also considered alternatives such as targeted enforcement of rental properties, improving relationships with landlords and agents and by providing training.”

Its executive advisory panel is set to meet on Wednesday when it’s due to recommend the next step.

Read more about selective licensing.

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LATEST: Liverpool reveals latest licensing plans after rejection

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Liverpool City Council has opened its politically-sensitive consultation on a new Selective Licensing scheme for 16 wards within northern and western parts of the city, half the number its previous city-wide scheme covered.

The revised scheme will run for five years from 2021 and will cost landlords between £300 and £570 per property depending on whether they take up an early bird offer and which type of licence they choose.

Landlords have until 26^th October to have their views heard alongside those of letting agents, industry associations, residents and resident’s groups, private tenants, charities, advice agencies, registered housing providers, councillors and businesses.

The new scheme is the latest salvo from the council in its ongoing battle with Housing Secretary Robert Jenrick to re-introduce selective licensing for rented properties.

In January Jenrick rejected its bid to renew the council’s existing city-wide scheme, citing insufficient evidence of low demand for homes within the city.

Liverpool City Council then said it planned to launch a judicial review of the decision but this was shelved in favour of a new application. After the consultation ends, the council will make a fresh application to government in December.

“This will cover council wards where there are high levels of private sector rented properties, and acute problems with complaints and hazards,” the council says.

“Owners will be required to licence their properties and comply with conditions. By doing this we can tackle poor management and condition of properties. There are several options for this. Views are welcome on these alongside proposed fees and draft licence conditions.”

Read the consultation documents in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Liverpool reveals latest licensing plans after rejection | LandlordZONE.

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BREAKING: People can move home within North West lockdown, government confirms

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The government has updated its guidance on the regional lockdown in the North West today to clarify that people can continue to move home.

This will be a huge relief for landlords and letting agents in the affected areas, as many other activities have been curtailed.

This includes a ban on visiting gyms and swimming pools and restrictions on weddings, funerals, travelling by car, visiting friends at home, going on holiday and visiting people in care homes.

A Ministry of Housing, Communities and Local Government said the guidance update has been included following questions from those working within the housing market following the regional lockdown, which includes Greater Manchester, five areas of Lancashire (Blackburn (pictured), Burnley, Hyndburn, Pendle and Rossendale) as well as three areas of West Yorkshire (Bradford, Calderdale and Kirklees).

This new lockdown, which was announced over the weekend following spikes in Covid infections within these areas, enables both sales and letting agents to go about their business along with removals firms.

Also, landlords and their contractors can continue to attend to repair and maintenance issues at properties, and those planning to move home can still attend viewings.

Two other regional lockdowns have been implemented so far. These are in Luton, which ended on 1st August, and in Leicester, where restrictions continue albeit in a smaller area.

Read the guidance in full.

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Tenant demanding deposit back unfairly?

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We have a prospective tenant that failed the referencing due to a CCJ they apparently didn’t know about (we refunded their holding deposit). We liked them and tried to work with them and offer an olive branch through them finding a suitable guarantor.

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Myth-busting – Electrical Safety installations Act 2020

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The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 came into force on 1 June 2020 and will apply to all new tenancies in England from 1 July 2020.

Thanks to Bill Stiles from Adept Electrical –

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Landlord mortgage holidays ‘don’t give tenants an automatic right to rent cancellation’

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A leading industry figure reckons critics should give landlords a break and not assume that they’re raking in cash by taking a Covid ‘mortgage holiday’.

David Alexander, who is boss of he property management platform Apropos, has defended those landlords getting help from their bank, and hopes to dispel the misconceptions and assumptions made by those who believe they shouldn’t charge rent while taking a payment break.

“This assumes that the rent is required only to cover the mortgage payments when it’s often part of the landlords’ income as well. Equally not all landlords have mortgages, and many are solely reliant on their rental income to live,” he says.

Alexander believes there’s been a tendency to portray the landlord and tenant relationship as an ‘us and them’ situation but says the welfare and well-being of both is paramount.

He adds: “The truth is that both are interdependent on one another and need to work with agents to create a fair and fully functioning connection.”

Evictions – and disruption to tenants’ lives – should be the last thing on anyone’s mind now, he says, while agents and landlords must work closely with tenants to build strong relationships.

500 tenants

Apropos is currently working with about 500 tenants whose landlords have reduced rents, agreed payment plans and, in some cases, cancelled rents altogether.

“These are temporary solutions for unusual times and we would, when the situation improves, always work with landlords and tenants to maintain regular payments to avoid arrears becoming an issue,” he explains.

“Obviously, many landlords have major issues of their own at the moment, and it is important to respect these but developing long-term, mutually beneficial relationships is crucial and requires understanding, communication, and trust.”

Read how landlords are being penalised for taking a mortgage holiday.

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Apple demanding up 50% rent reduction for its UK stores

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Operator of a 38 store estate in the UK, and one of the biggest companies in the world by capitalised value on the NASDAQ Stock Exchange, the iPhone-maker Apple posted a record profit of $55.3bn last year. And last week the company, which despite having its stores closed throughout the period due to Covid-19, reported 2^nd quarter sales up by 11% to a record $59.7bn (£45.6bn).

Despite its huge advantages the company has over many traditional retailers on the high street, it is nevertheless pushing for these huge rent reductions to the consternation of its landlords up and down the country.

The company has said that it is offering to extend its leases by several years in return for the rent reduction concession plus a rent-free period.

Apple says it is seeking to bring its rents into line with other retailers, many of them having negotiated cut-price deals with their landlords, as they desperately try to keep their stores and shopping centres occupied. The difference between many other retailers and Apple is that many of the former businesses are “on their uppers”, unable to make up for lost sales as Apple can through its online sales.

According to a Sunday Times report, Apple has said that online demand for iPhones and iPads has been “phenomenal” during the lockdown period, even though its stores remained closed. Apple’s outlets are said to be among the most profitable in the industry and their customer draw in shopping centres, means that landlords are desperate to keep them as tenants.

As the stores have varying years left on their leases their landlords are not legally obliged to respond to Apple’s demands, but any concession agreements arrived at are likely to be commercial decisions based on Apple’s long-term value to their landlords.

Last week, Apple CEO Tim Cook, along with the other main Silicon Valley tech titans, Facebook, Google and Amazon, appeared before America’s Congress faced with the accusation that they are using their market dominance to crush competitors and they face the further question as to whether they should have their businesses broken-up in the public interest?

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