Bring in rent arrears loans for tenants in England, says lettings giant Belvoir

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One of the UK’s largest letting agencies has backed tenants in England being offered government-backed loans to pay their rental arrears accrued due to Covid, as Wales announced earlier this month.

Belvoir, which manages 30,000 properties with a value of £10 billion across the UK, says it stands behind the National Residential Landlords Association (NRLA) campaign to persuade ministers that a tenant loan scheme would go a long way towards reducing the number of tenants who may face eviction after the ban ends on Monday.

On August 11^th Wales launched its Tenant Saver Loan scheme, which is backed via an £8 million fund and is being provided through credit unions at 1% APR. Scotland has taken a different approach, and set up a £5 million scheme to directly compensate its landlords if their tenants get into arrears.

Bank accounts

With both the Welsh and Scottish schemes, money is paid straight into landlords’ bank accounts and tenants will have to pay back the loan over a period of up to five years. They won’t be means-tested and loans can only be used to cover rent arrears.

Belvoir CEO Dorian Gonsalves says: “With confirmation that the UK has officially fallen into recession we believe that it is more important than ever for the Government to introduce a loan scheme similar to that in Wales.

“This will ensure all tenants are able to pay their rent, and landlords can continue providing much needed housing.”

He says the housing market is entering the recession as a very different animal compared to the 2008/9 financial crisis; private renters now make up a much larger proportion of the landscape and more people now rent privately than through social housing.

“Homeowners who have been financially impacted by coronavirus have had the advantage of being able to access a mortgage holiday, and it would seem only fair that tenants should have access to a similar loan scheme to the one operational in Wales,” he says.

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Belvoir backs NRLA campaign for Government Tenant Loan Scheme

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Belvoir, the UK’s largest High Street property franchise, welcomes the adoption by the Welsh Government of proposals for a Government backed loan scheme for tenants who have accrued rent arrears due to the impact of coronavirus. Belvoir is also backing the NRLA campaign to introduce a similar scheme in England to protect tenants within the Private Rental Sector (PRS).  

Belvoir CEO Dorian Gonsalves says: “With confirmation that the UK has officially fallen into recession we believe that it is more important than ever for the Government to introduce a loan scheme similar to that in Wales, which will ensure all tenants are able to pay their rent, and landlords can continue providing much needed housing for the PRS.  

“It is important to realise that the PRS is entering into this recession in a completely different position to the credit crunch of 2008, with a much closer proportion of people renting property compared to homeowners with a mortgage. In addition, according to the latest English Housing Survey, for the first time as many people are now renting through the PRS as through social housing. Homeowners who have been financially impacted by coronavirus have had the advantage of being able to access a mortgage holiday, and it would seem only fair that tenants should have access to a similar loan scheme to the one operational in Wales.  

“Belvoir’s Q2 rental index, which is provided for us by property expert Kate Faulkner, confirms that the rental market has so far not been dramatically affected by the coronavirus. Belvoir continues to monitor rent arrears, and our most recent data shows an arrears percentage of 3.34% directly related to coronavirus. Rents in most areas have remained stable, although there is a definite post lockdown demand for more rental properties with outdoor space and far less demand for flats. In England, Wales and Scotland, Belvoir’s Q2 2020 rental index reveals an average rent for offices trading over the last eight years of £746 per month – a decrease of around -3.5% versus Q2 2019. When comparing Q2 2020 to the 2019 annual average of £755 per month, which has proved to be a more robust measure over time, this reveals a smaller, almost insignificant fall of around -1%. 

“Although the rental sector remained robust throughout lockdown, the furlough scheme is due to end in October and there is inevitably some uncertainty about how this will impact on the job market and the ability of a small percentage of tenants to pay their rent. A loan system of the type operating in Wales will help to protect tenants by ensuring they can continue to pay rent and reduce the risk of evictions. In the long term a loan system to subsidise the rental market and protect tenants may ultimately be less costly for the Government than a potential increase in homelessness, especially as councils will struggle to rehome people due to a shortage in social housing.  

“Landlords and agents play an important role in the economy, contributing significantly in terms of employment of staff and contractors, ensuring compliance of safety regulations, maintaining properties to a high standard etc. Belvoir’s rental index confirms that the majority of tenants choose to remain in their rental home for between a year and two years, with one office reporting an average of almost four years. Belvoir remains committed to the care of all of our tenants and landlords and we are delighted that the NRLA campaign for the tenant loan scheme in Wales has proved successful. Belvoir is very much behind the campaign to introduce a similar scheme in England.”

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EXCLUSIVE: Shocking story behind council’s failed Selective Licensing bid

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A leading member of the private rental market community in Luton has contacted LandlordZONE to highlight the actions of Luton Council over the past 18 months as it has attempted, so far unsuccessfully, to introduce a Selective Licensing scheme.

Luton Council has been thwarted in its attempts to introduce a scheme partly through the campaigning work of local landlords and letting agents, and partly because of errors made by the council.

Quick history

The council tried to introduce a scheme in April 2018, faced significant local opposition and then went silent about its plans until December 2019 when a council committee approved its plans, which were then rubber stamped by its executive committee several weeks later.

After two virtual meetings with concerned locals during July, the scheme was still going ahead. A group of agents, landlords and concerned residents then got together and formed Luton Landlords and Letting Agents Ltd, whose solicitor then launched a legal challenge.

The council then admitted errors in its implementation and decision making, and the scheme now appears to be on hold as the council says want to “continue to work with landlords to help drive up standards in the town and will be undertaking a further review to gauge the current need for/scope of any new Licensing scheme.”.

What went wrong

The person involved wishes to remain anonymous but says the story in the public domain is only part of the picture. They claim that:

• The communication and consultation efforts during the process have been poor and designed to keep locals out of the process.
• Luton Council over-egged problems within the private rental market to justify its Selective Licensing decision.
• The council revealed a conflict of interest – it said if landlords didn’t want to sign up to the scheme, they could rent their homes through the council’s own ‘social tenants’ lettings agency.
• Councillors Dave Stevenson (Private Sector Housing and Enforcement) and Councillor Tom Shaw ignored calls to justify the scheme or explain how it would improve standards in the town.
• Landlords and agents were given a matter of weeks to apply for the scheme which, given the 10,000 properties involved, was optimistic given it was during the height of the Covid lockdown.
• Luton Council failed to follow the proper statutory procedures for bringing in a Selective Licensing scheme and, it now transpires, did not have the authority to make a designation and bring in the scheme at all, which should have been submitted to the Secretary of State for approval, making the original attempts to introduce the scheme unlawful.
• Luton has wasted significant sums of taxpayer cash at a time when it claims to be under financial stress.

“We should be able to trust that people employed by the Council are competent to do the job, to not mismanage their resources, get value for money from staff and contractors, provide much needed services to local… not wasting taxpayer monies and trying to introduce stealth taxes,” our source says.

LandlordZONE has approached Luton Council for comment but so far not received a response.

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Belvoir backs calls for Government Tenant Loan Scheme

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Belvoir, the UK’s largest High Street property franchise, welcomes the adoption by the Welsh Government of proposals for a Government backed loan scheme for tenants who have accrued rent arrears due to the impact of coronavirus. Belvoir is also backing the NRLA campaign to introduce a similar scheme in England to protect tenants within the Private Rental Sector (PRS).

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‘Wales isn’t for sale’ say local politicians as they call for changes to planning laws

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Welsh politicians have slammed news reports for encouraging investors to buy holiday lets in the region, putting the housing market under pressure.

The Telegraph and This is Money have both published articles recently flagging up areas in Wales that offer affordable housing to buy as holiday lets amid the staycation boom.

This is Money’s article highlights tax perks tempting landlords struggling to make a profit from traditional buy-to-lets, and lists the top 10 holiday let hotspots, including Ceredigion in second place, Isle of Anglesey (pictured) in ninth and Gwynedd in tenth place, based on the number of short lets as a proportion of all lets.

Anglesey MP Hywel Evans says the housing market is already under severe pressure. He believes the growth of the second home or holiday home sector prevents local people from buying affordable properties in their native area, and poses a threat to the Welsh language and communities.

Second homes

“Recent statistics for Gwynedd showed that 40% of homes sold there last year were second homes or to be used as holiday homes,” says Evans. “I have no doubt that the figure for Anglesey is even greater, and in our coastal areas that figure is likely to be higher.”

The deputy leader for Plaid Cymru, Rhun ap Iorwerth, joined in the criticism on Twitter, saying that it showed a blatant disregard for communities. “Encouraging people to see houses as ££££ rather than what they should be – homes. We need legislation to protect our local housing stock.”

Evans wants new laws to be brought in to protect local housing stock, including a change in planning rules, so that buyers would have to apply for change of use permission to turn a permanent home into a holiday home.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Wales isn’t for sale’ say local politicians as they call for changes to planning laws | LandlordZONE.

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Liverpool considers asking Secretary of State for national crackdown on Airbnb accommodation

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Liverpool City councillors are to debate a motion calling for the much tighter short-lets or Airbnb regulation that could be a blue print for both local and national approaches this booming accommodations market.

Its housing committee is convening later today to consider a motion by councillor Alan Tormey who wants the council to tackle, in particular, ‘headache’ Airbnb party houses.

But he also seeks to minimise the effects of unregulated short-lets on the local housing market and rental property availability, and the safety risks to visitors who use such accommodation.

The actions he is asking councillors to vote through to write to the Secretary of State to request national policies that:

• Create a ‘change of use’ planning classification for short term holiday lets, similar to that used for HMOs.
• Give councils powers to apply an enforceable exception to such a classification allowing use of residential premises as temporary sleeping accommodation for up to 90 days, as is the case in Greater London.
• Bring Airbnb businesses under the business rates system, which would benefit local services.
• Establish a licensing regime for short term holiday lets, as with small HMOs, to improve safety and quality for visitors and to enhance management practices so as to benefit neighbours.

“Innovation in how property can be rented has expanded the market and created opportunities for individuals to make a legitimate second income,” he says.

“But the growing market for ‘party houses’ can give local councils a headache.

“Houses rented only for a short time, with the aim of having a large party and leaving the resulting mess behind have the potential to damage both the landlords and the local area. My motion aims to tackle these issues.”

Councillor Tormey has an uphill battle on his hands, despite his best intentions. A similar motion six months ago did not get voted through, and the government has said several times that it it is happy with the current ‘light’ oversight of Airbnb accommodation.

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Tenants should be assisted but still responsible for rental debt

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The Welsh Government last week announced their Tenancy Saver Loans scheme – adopting an idea I first put forward on conservativehome in June, namely that tenants should be ‘the ones expected to take out Government loans to cover their own debts.

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‘Like all councils, it is desperate to look tough’ says NRLA as Dales councillors plan new landlord fines

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Derbyshire Dales District Council is planning a tough crackdown on landlords who don’t comply with housing regulations – at least two years after the widespread initiative was introduced.

The Matlock-based local authority (pictured) is debating whether to pass a Civil Penalty Policy and threaten landlords with fines of up to £30,000 for housing offences under the Housing Act 2004 and a breach of a Banning Order under the Housing and Planning Act 2016.

An officers’ report states that the Derbyshire private rented sector, “consistently has some of the poorest quality housing with tenants having to put up with cold and avoidably hard to heat homes”.

It points to a small minority of landlords who knowingly flout their legal obligations, rent out accommodation which is substandard and harass tenants.

Penalties would cover issues such as housing repairs, energy retention and HMOs which fall short of criminal prosecution.

Derbyshire Dales is suggesting a fine of £1,875 for a low impact offence while a second set of fines related to the energy performance of rented properties would range from £200 for failing to provide tenants with an energy certificate to £5,000 for letting substandard homes and neglecting improvement orders.

The introduction of civil penalties as an alternative to prosecution and a way to root out rogue landlords came at least two years ago, Gavin Dick, National Residential Landlords Association’s local authority policy officer, tells LandlordZONE.

“Most councils already use them – this one has come quite late to the party and appears to have now realised it has this power,” he says. “Like all councils, it is desperate to look tough.” 

Read how councils have been using civil penalties to levy thousands off landlords.

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18,000 illegal evictions by landlords during Covid despite ban, councils report

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A nationwide ban on evictions hasn’t prevented about 18,000 households across England being made legally homeless during the pandemic, according to a report in the New Statesman.

Freedom of Information responses from 212 councils found that 22,798 households who applied for support after 1st April were legally homeless – which can include evicted tenants and those in short-term accommodation.

As these figures only cover around two-thirds of councils, the report claims that the total is likely to reach about 33,000 homeless households – minus the 15,000 existing homeless people housed under the Government’s rough sleeper programme.

Of the councils which responded, Manchester recorded the highest number of newly homeless people since April, with 858 households. The city’s Acorn group told the New Statesman that landlords should have been made more accountable and regulated closely to ensure they weren’t making people homeless.

Spokesperson Iris Breward said: “As it stands, there seems to have been the expectation that profits from renting to tenants would continue regardless of the current crisis, whereas tenants have been expected to continue to pay full rent despite the financial struggles that many are facing.”

The report also claimed that while the Government has suspended legal eviction proceedings during the pandemic, some tenants evicted by their landlord might have left without knowing their rights. 

However, the National Residential Landlords Association says during the ban, landlords have been unable to take action against anti-social tenants and end tenancies where it might help victims of domestic violence leave the perpetrator.

Policy director Chris Norris says: “We need the courts to deal with cases where tenants are committing anti-social behaviour or where there are long-standing rent arrears that have nothing to do with the pandemic. Over the last five months landlords have been powerless to take any action against those who cause misery for fellow tenants and neighbours.”

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This is a Joke – Judges rule EPC served?

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I have severed a section 21 on a tenant for a pre 2015 AST. The EPC was sent to the tenant 18 months prior but not signed for. However, the tenant denies receiving the EPC.

Two district Judges have independently determined on probability the EPC was severed and issued a possession order.

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