BREAKING: ‘Stop rewarding renters who are wilfully avoiding rent’, says NRLA letter to Prime Minister

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The NRLA has written to Boris Johnson today to claim that his government’s latest evictions extension means it is asking landlords to subsidise struggling renters and rewarding those who are wilfully avoiding paying rent.

The industry association has also calculated that on average landlords will now be waiting for two years to regain possession of their properties, and an average loss of £20,800.

This follows the ‘chaotic’ U-turn announcement last Friday that the stay on possession hearings is to be extended until September 20^th, with a six-month minimum notice period before eviction notices can be served and the de-prioritisation of rent arrears within the court system for all but the most serious cases.

The letter points out to the Prime Minister that most private landlords are individuals, renting out just one or two properties, and are not ‘property tycoons with deep pockets able to subsidise rents indefinitely’.

Ben Beadle, Chief Executive of the NRLA (pictured, above) says that the government’s refusal to help landlords in England and Wales will also have consequences for tenants as landlords turn to money orders to recoup their losses, leaving tenants credit scores ‘in tatters’.

To solve the crisis, Beadle suggests the government must offer the worst affected tenants hardship loans to pay off Covid rent arrears once the pandemic is over, a scheme that the Welsh government recently pioneered.

“The overwhelming majority of landlords have been working constructively with their tenants to sustain tenancies where rent arrears have built as a direct result of the pandemic,” says Beadle.

“The Government’s actions are a kick in the teeth for all these landlords who have done the right thing.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: ‘Stop rewarding renters who are wilfully avoiding rent’, says NRLA letter to Prime Minister | LandlordZONE.

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CELEB ACTIVISM: Maxine Peake speaks at street protests against eviction ban ending

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Actress Maxine Peake took a new supporting role when she joined tenants’ groups in Manchester protesting against evictions.

The film and TV star turned up at the socially distanced event organised by Tenants Union, Acorn and Greater Manchester Law centre which saw trade unionists, housing activists and homelessness groups demonstrate outside the Manchester and Salford Civil Justice Centre.

She told protestors that she was there to lend support. Said Peake: “It’s appalling what’s going on. I’ve realised how bloody lucky I am. We can try to continue to fight for people’s right to live without stress and fear of eviction, or where their next meal is coming from.” She encouraged them: “Get involved as much as you can and keep up the amazing work.”

Salford thespian

A long-time supporter of the law centre, the Salford thespian is known for her sometimes radical views and was recently embroiled in the scandal over Rebecca Long-Bailey’s sacking by leader Keir Starmer, after an interview Peake gave that contained an anti-Semitic conspiracy theory, which the MP re-tweeted. She later said the statement was inaccurate.

Despite the Government’s last-minute extension of the ban on evictions, protests have been held throughout Manchester, including outside courts where cases will be heard.

The Acorn union is calling for a serious reform to renting, to prevent a wave of homelessness and has repeated its intention to resist evictions and defend communities when the COVID eviction freeze comes to an end on 20^th September.

It reckons 20,000 renters across Greater Manchester are at risk of losing their homes.

Union leaders have also written to the Government stating that they fear that homelessness could return to the streets of Greater Manchester on a scale not seen since the 1930s if rapid and decisive action isn’t taken to avert the crisis.

Watch Peake’s speech.

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EXCLUSIVE: FCA to ensure buy-to-let firms look after landlords who have taken ‘mortgage holidays’

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The FCA has revealed that buy-to-let mortgage providers may soon be covered by the same Covid regulatory guidance that consumer mortgage providers are required to follow by the financial regulator.

This means that landlords who have taken a mortgage holiday during Covid would be covered by the same ‘duty of care’ rules that home owners in the same position are currently afforded.

LandlordZONE contacted the FCA after it published new draft guidance for mortgage lenders, which aims to ensure that home owners get the support they need in these extraordinary times, to ask if landlords would get the same protection as other mortgage borrowers.

“The framework we are proposing for the tailored support that we want firms to provide after the expiry of the June Guidance is that set out in our Mortgage: Conduct of Business rules (especially MCOB 13),” the FCA says.

Mortgage holiday

It says this guidance is designed to ensure that mortgage firms provide support to borrowers who have taken a mortgage holiday during the Coronavirus pandemic but who continue to face financial difficulties, as well as those who may be considering a mortgage holiday in the future.

This guidance was published on 20^th March and updated twice during June, enabling borrowers to take-up a first and subsequent ‘payment deferral’. This expires on 31^st October and the FCA is now consulting on its future approach as ‘the wider situation develops’.

But the guidance has not included most buy-to-let mortgages, which are unregulated, unlike those for home purchases,

“However, we do have regard to the unregulated activities of the firms we regulate – and the draft guidance (at para 2.6) explains that we might look at the guidance when assessing if a firm was meeting our Threshold Conditions,” the FCA has told LandlordZONE.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: FCA to ensure buy-to-let firms look after landlords who have taken ‘mortgage holidays’ | LandlordZONE.

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Westminster online tool encouraging HMO tenants to claim Rent Repayment Orders!

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In a move designed to punish as many landlords as possible with crucifying Rent Repayment Orders of up to 12 months rent, the City of Westminster has launched a “Find out if you can screw your Landlord” tool on their website.

The post Westminster online tool encouraging HMO tenants to claim Rent Repayment Orders! appeared first on Property118.

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EXCLUSIVE: Fergus Wilson reveals he’s now served 75% of his tenants with Section 21 notices

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Multi-millionaire landlord Fergus Wilson has confirmed that he is to retire and sell off his impressive portfolio around Ashford and Maidstone, and revealed his progress.

The well-known landlord, who once had about 970 two-and three-bedroom properties and has an estimated net worth of £180 million, says that he has decided to exit the sector, only leaving himself 10 houses.

He tells LandlordZONE that he’s already served about 75% of tenants with a Section 21 eviction notice in the last two or three months and that he’s now sold “a good many” of the properties. “They’re going like hot cakes, helped by the new stamp duty rules – I’ve never known a time like it.”

Wilson says many of his houses are being snapped up by tenants rather than investors but his decision has already sparked anger from some; Callum Oakley and Emma Plaskett in Ashford were handed an eviction notice this week and claimed to the local press that they have faced a number of problems with the property including a faulty oven and a garage door fusing shut.

Section 21

However, Wilson said he had had the garage door repaired quickly but added: “If I had intended to give Mr Oakley a Section 21 due to reporting disrepairs, I would have done so in November 2019.”

In 2017 a court ruled that Wilson’s policy preventing people from renting his properties based on their ethnicity was unlawful following intervention from the Equality and Human Rights Commission.

An injunction was imposed, banning him from applying criteria discriminating against “coloured” tenants, or those of Indian or Pakistani backgrounds.

The colourful character is unapologetic about his business and adds: “If people think I’ve got too many houses, that’s their opinion. I’ve enjoyed my work and I’ll miss it.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Fergus Wilson reveals he’s now served 75% of his tenants with Section 21 notices | LandlordZONE.

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Next stages for mortgage holidays

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The Financial Conduct Authority (FCA) has announced proposals to ensure that firms provide tailored support to mortgage borrowers who continue to face payment difficulties due to coronavirus. During the initial phase of the pandemic, payment holidays provided mortgage borrowers with immediate and temporary support.

The post Next stages for mortgage holidays appeared first on Property118.

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Two sharing AST, one working, one on UC?

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I am aware of the potential disadvantages of dealing with tenants on benefits, but wondering how to set the rent on this one. Large flat, advertised at £395 for one person. The previous pair of tenants were paying £475.

The working tenant will pay first months rent and deposit upfront and I realise it’ll probably go to regular rent in arrears at least partially.

The post Two sharing AST, one working, one on UC? appeared first on Property118.

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Tenants given political backing to continue rent reduction battle with billionaire landlord

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Frustrated tenants who were refused a Covid-related rent reduction then handed eviction notices have pledged to front up their landlord after failing to secure a meeting with him.

The renters, who live in Olympic House (pictured), a block of 170 flats mainly owned by billionaire property developer John Christodoulou in Somerford Grove, Stoke Newington, are fighting their eviction.

They have the support of the Mayor of London’s office and the local council, who are holding up the struggle as emblematic of a private rented sector in need of reform.

In an example of how not to handle tenant relationships during the crisis, after they tried to negotiate with Christodoulou for a temporary 20% rent reduction, the group’s organisers’ tenancies appeared to be singled out for eviction, with notices citing the reason as a ‘business decision’.

Renters’ group organisers, who are London Renters Union members, were also threatened with legal action in a letter from letting agents Tower Quay, which cited procurement of others to breach their contracts.

Deputy mayor Tom Copley says the case highlights the inherent power imbalance within the private rented sector between landlords and tenants.

“The fact that landlords can for no reason simply choose to evict tenants who have been paying their rent, make them homeless, in what looks like a classic case of revenge eviction, I don’t think it’s right,” he says.

After initially saying renters’ requests for relief would be dealt with individually, they were turned down and instead told to use money saved on lunch, holiday, entertainment, clothes and travel to pay rent.

Those facing eviction at Somerford Grove have been asked to leave on 21st September, the day after the recently extended eviction ban ends. A spokesperson for the Somerford Grove Renters told local media if Christodoulou still refused to meet with them, they would continue with public action.

LandlordZONE has approached Tower Quay for a comment.

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UPDATE: New Fire Safety Regulations in the pipeline

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Genefell showed up the major failings in building fire safety in the UK and has prompted the need for consultations and new legislation initially in the form of a Building Safety Bill due to introduce new and enhanced regulatory regimes for building safety in England and construction products throughout the UK.

The housing secretary Robert Jenrick has described the planned reforms contained in the Bill as “the biggest change to our building safety regime for 40 years”. Landlords in particular will need to quickly adapt to the changes to ensure they are compliant.

The provisions contained in this draft Building Safety Bill will provide a complete regulatory overhaul of buildings fire safety and will bring in a new era in the way buildings are constructed and the products used to build them.

The new building safety regime will be overseen by the Health and Safety Executive (HSE) and will apply initially to all new multi-occupied residential buildings over 18 metres high, or six storeys, in height in England. All existing buildings will be brought within the parameters of the new legislation on a phased basis.

Cultural change

This is going to be a big cultural change for the property industry, construction and buildings maintenance, and will involve significant new duties for the buildings involved throughout their life cycle.

There is to be a mandated use of accurate digital models to maintain what is referred to as the “golden thread” of building safety information. For those involved in construction, building management and maintenance, their duties will be overseen and enforced by the regulator, and with serious consequences for non-compliance.

The HSE will be given new responsibilities for the safety and performance of every building, regardless of its height. HSE will oversee local authority building control and approved private building inspectors, it will advise on changes to the building regulations, and is tasked with improving the competence of all those personnel involved in the building industry, including building inspectors.

New terms are to be implied into long leases in England and Wales to govern the recovery of building safety costs from residents, and a New Homes Ombudsman for England will be established. New regulations will govern the safety of construction products and the competence of architects across England, Wales and Scotland.

Other buildings in England will have their fire safety regulations reviewed starting with a consultation process which aims to strengthen compliance and the enforcement powers to improve communication between building control bodies and fire and rescue services for all new developments.

Three stage approval

Those carrying out major refurbishments of residential high-rise buildings will be required to seek approval from HSE at three stages: planning permission; pre-construction; and prior to occupation.

For occupied high rise buildings an “accountable person” will need to be appointed to ensure that fire and safety regulations are adhered to and that residents have an input in this process. The accountable person will appoint a building safety manager to monitor the building safely on a day to day basis. HSE will oversee this process.

Buildings that come within the scope of the regulations will have to be registered before HSE will issue a “building assurance certificate” allowing occupation of the building, to be reviewed every five years. Failure to comply will be a criminal offence.

Duty holders will also be responsible for keeping vital safety information about how the building was designed and built and is managed up to date. This so-called ‘golden thread’ of information will be stored electronically for the entire life of the building. The government is likely to require that this digital record complies with building information modelling (BIM) standards.

Fire safety reform in buildings

The government has now published a consultation document seeking views on proposals to:

• Improve fire risk assessments
• record the identity of the responsible person for all buildings;
• introduce competence requirements for fire risk assessors;
• strengthen the rights of residents to access building safety information;
• increase penalties for non-compliance;
• enable all fire and rescue services to charge fees for enforcement activity, in a similar way to HSE ‘fees for intervention’;
• implement the recommendations from Phase 1 of the Grenfell Inquiry; and
• enhance consultation between building control bodies and fire and rescue services.

The consultation will close on 12 October 2020.

Draft Building Safety Bill

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Landlord loses £6,364 in guaranteed rent payments after dispute with agency over damp

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Rent guarantee schemes are under the spotlight once more after a letting agency in London was booted out of The Property Ombudsman after failing to pay an award to a landlord following disputed rent payments.

Kent-based agency The London Landlord Limited, which claims to have three branches in the capital, is now believed to be trading illegally after its membership of TPO’s redress scheme was cancelled after it both failed to pay £6,364 awarded to a landlord and pay its TPO memberships fees.

The award was the culmination of a long investigation into the case of an unnamed landlord who entered into a guaranteed rent agreement with the agency, which in turn rented the property to a tenant.

After several months at the property, the tenant complained about damp within the property but the landlord and agency could not agree on its source, and no remedial work was completed.

Stopped payments

The agency then stopped payments to the landlord claiming he was in breach of his repairing obligations under the lease, withholding rent totalling £5,874.

After the dispute was referred to TPO, it found in the landlord’s favour and awarded him the disputed rent and £500 for aggravation, distress and inconvenience.

This was because the agency should have chased the freeholder not the landlord to complete a suspected leaky roof – and dealt direct with the tenant to see if their actions were causing the damp.

But despite the award, neither sum was paid to the landlord and, as TPO has no teeth to enforce the payment, the agency has instead been expelled, leaving the landlord to find another way to recoup the cash.

“As a member of TPO, agents are obliged to comply with awards made by the Ombudsman, which The London Landlord Limited failed to do,” says Gerry Fitzjohn, Non-Executive Director and Chairman of TPO’s Finance Committee.  

“It appears that this agent could still be trading so this is a warning to all consumers in the local area.”

Read more about Guaranteed rent schemes.

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