LATEST: Scotland launches loans scheme for Covid-hit tenants

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Renters in Scotland now have access to an interest free, hardship loan scheme to help pay-off COVID-related rent arrears.

Similar to the Welsh Tenant Saver Loan Scheme launched last month, the Scottish government has put aside £10 million for its new Tenant Hardship Loan Fund for tenants who can’t access other forms of support to pay their housing costs. The Discretionary Housing Payment fund, which helps tenants claiming benefits, will increase by £3 million, bringing the total to £19 million.

Holyrood’s move has prompted the National Residential Landlords Association to call for a similar scheme for England. Policy director Chris Norris says that once again the UK Government finds itself trailing behind the rest of the UK. Says Norris: “The best way to prevent repossessions is to tackle the root cause by ensuring tenants are able to pay their rent.” 

Scottish Housing Minister Kevin Stewart says the new announcement will mean that no one should be left in a position where they can’t access support. He says: “I fully expect landlords to be flexible with anyone facing such challenges, signposting them to the sources of financial support available, and tenants in difficulty should engage with their landlord and seek advice on the options open to them.”

He also confirmed that emergency legislation will be extended to ensure no evictions can take place until March 2021 but is reverting back to a one-month period for repossession where tenants have behaved in an anti-social or criminal way.

The Scottish Association of Landlords welcomes the Tenant Hardship Loan Fund but fears tenants will be cautious of accessing a loan that would add to their debt. 

Chief executive John Blackwood tells LandlordZONE: “We hope the Scottish Government will consider additional support in grant form to help tenants pay their rent and prevent us facing a greatly amplified problem for a key part of the housing sector down the line.”

But Shelter is less keen on the loans initiative. “The answer to rising tenant debt is not another form of debt,” says Gordon MacRae, Assistant Director for Communications and Advocacy at Shelter Scotland.

“This proposal is tone deaf to the needs of renters and was cooked-up behind closed doors with no consultation with tenants and their representatives.

“The Scottish Government must produce a solution that doesn’t see tenants footing the bill for this pandemic.”

Read the proposals in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Scotland launches loans scheme for Covid-hit tenants | LandlordZONE.

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Deregulation Act 2015 – EPC prior to 1st October 2015?

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David Smith wrote an excellent article https://news.rla.org.uk/blog-section-21-after-1-october-2018/ in August 2018 about the Deregulation Act 2015. David raises the issue of whether you are required to serve an EPC prior to serving a section 21 notice if the tenancy started before 1 October 2015.

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Late student accommodation search surge pushes London and Home Counties to ten-year high

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Viewing figures in the lettings market hit a ten-year high in London and the Home Counties last month, according to new research by estate agency Knight Frank.

Although the number of new prospective tenants registering in July was down 26% on last summer, the arrival of exam results both in the UK and overseas prompted a late mini-surge in the week ending 22nd August, as some students had been holding out before deciding to look for digs.

Tom Bill, head of residential research at Knight Frank, says students account for almost a quarter of the market and that uncertainty around the start of the new academic year meant July was quieter than normal.

Strong demand

“Demand is strong in the capital and many students have worked for years with the specific aim of a place at a London university,” he says.

“Should flight schedules around the world continue their return to normality, this will support demand in the normally quieter final quarter of the year and could lead to a few more seasonal records being broken.”

Traditional tenants have been taking advantage of falling rents, reports Knight Frank, prompted by a strong supply of properties since the lockdown ended, including many short-term lets.

In the 12 months to July, average rental values in prime central London fell 5.8%, while in prime outer London they dropped 5.4% – the largest annual decline since 2009.

For most of the summer, the number of tenancies was about a third below the level seen last year, although in the week ending 22nd August the figure was 17% higher, suggesting that rental values may start to rise.

Read more about student rental market.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Late student accommodation search surge pushes London and Home Counties to ten-year high | LandlordZONE.

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Title split for house redevelopment?

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I am after some advice! I am currently in the process of redeveloping a four-storey house that was already converted into four separate apartments, but is all under one title.

The project is almost complete, and we are trying to refinance.

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Leading tenant groups backed by famous names write to Boris to extend evictions ban

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A coalition of renter organisations and their supporters have sent a letter to the PM urging his government to extend the evictions ban past September 20^th.

The letter, sent by Manchester-based umbrella organisation Homes For All, follows a very different letter sent by the NRLA to Johnson last week, pointing out 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’.

Homes For All describes itself as a non-party political national alliance of tenants, leaseholders, campaigners, unions, writers, artists and activists. Previously, it has been campaigning for rent controls and has the backing of several politicians such as the Mayor of London and many within the Labour party.

Demonstrations

It also backed Tenants Union’s demonstrations over the Bank Holiday weekend outside County Courts across a dozen cities.

The letter has been signed by several high-profile organisations and people including the Big Issue magazine, Polly Neate of Shelter, former shadow chancellor John McDonnell, two trade unions, movie director Ken Loach, a leading UK Black Lives Matter organisation and Generation Rent.

Although neither letter has been officially responded to, the government’s concessions to landlords on Friday are understood to have followed heavy NRLA lobbying of No.10 to take a more balanced approach to the evictions ban.

As we reported then, landlords can now evict tenants after several weeks (depending on the reason) rather than six months under several exemptions such as rent arrears of more than six months and domestic violence.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Leading tenant groups backed by famous names write to Boris to extend evictions ban | LandlordZONE.

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Tiny government concessions including domestic violence cases

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The Government announced a tiny concession amongst its horrendous anti-landlord policies on Friday, when it stated that in cases of domestic violence, the landlord only has to give 2 weeks’ notice and in cases of anti-social and/or 6 months’ arrears

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Legally frustrated?

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Hello 118 ers, I engaged with a legal firm for advice that I came across on a property forum. Long story short. I was advised to follow the steps laid out, they would complete the legal documents etc and all would be fine.

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95% of landlords reluctantly accepting Covid clauses in guarantor contracts but government ‘must step in soon’

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The UK’s largest rent guarantor supplier Housing Hand has revealed that 95% of landlords it has contacted agreed ‘reluctantly’ to accept a Pandemic Exclusion Clauses exempting tenants from paying their rent due to Covid under some circumstances.

Housing Hand has told LandlordZONE that it has contacted 2,000 landlords and agents since the pandemic began about accepting ‘Covid clauses’.

These sit alongside he accommodation provider’s Deed of Guarantee and has been on offer since March this year. These include:

• If a tenant cannot take up the tenancy due to World Health Organisation (WHO) or government instructions, the AST cannot be executed, so the tenant and their guarantor are not financially liable.
• If during the fixed term, the WHO or government advises the tenant to leave a property, then again neither the tenant nor the guarantor are liable to pay the rent when they are not in the property.

Housing Hand says some landlords and agents have refused the waivers, claiming they are relying on the tenants paying regardless of them being able to travel or the AST starting.

“Hopefully all will be well and the waiver clauses will not be needed, but if the rules are laid down at contract stage we can avoid the problems that arose earlier in the year where rent that should have been paid was not and many tenants were still legally liable,” says Terry Mason, Group Operations Director of Housing Hand.

Mason warns that, although many landlords are happy to accept these Covid clauses within guarantor contracts, unless the government steps in soon to relieve the financial pressure, evictions will start in earnest.

“The government cannot expect private landlords to bail them out, or just waive the debt the tenants owe, when the law states the tenants have to pay,” he says.

“This is the area the government funding needs to address, resulting in fewer evictions, undamaged credit histories and more property available to rent.”

Read more about ‘Covid clauses’.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 95% of landlords reluctantly accepting Covid clauses in guarantor contracts but government ‘must step in soon’ | LandlordZONE.

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Eviction ban campaign – Make your voice heard now!

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SAL was dismayed to hear the announcement by First Minister Nicola Sturgeon that her government intends that the emergency restrictions on evictions, due to the impact of coronavirus, will be extended until March 2021, subject to parliamentary approval. On the 21 August SAL launched its campaign to encourage members to write to their MSPs.

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Evicting Tenants – Landlord Action

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Personalised Professional Advice on Evicting Tenants available from Landlord Action

The risks associated with illegal eviction missed rent payments and possible damage to your property if tenant eviction is badly handled are significantly reduced by paying for professional advice or services.

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