BREAKING: Housing minister reveals widening of eviction rules including Christmas bailiff ‘truce’

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The government has revealed several changes to the evictions ban including a halt in local lockdown areas and a bar on bailiff evictions during the run-up to Christmas.

Housing secretary Robert Jenrick has also announced an additional £40 million for Discretionary Housing Payment to support vulnerable renters this year.

As before, there will be exceptions including where tenants have demonstrated anti-social behaviour or committed fraud, or when a landlord ‘would like to re-let their property to another tenant’.

And in a sign that government is beginning to realise landlords are unhappy about the evictions ban, the government’s statement says that “we would like to thank landlords for their forbearance during this difficult time”.

The announcement also reveals that the evictions ban will not be extended past September 21^th ‘because no landlord, including those who only rent out a single property, has had access to the courts since March’.

U-turn

Also, the pre-action system much heralded by Ministers prior to the government’s U-turn in August extending the ban until August 21, are to be reinstated.

These include the prioritisation of cases (anti-social behaviour and other crimes pllus extreme rent arrears), mandatory re-activation procedures for evictions started before August 3^rd, and that landlords must work with tenants to see how they have been affected by the pandemic.

The Christmas truce will also exclude evictions involving anti-social behaviour and domestic abuse.

“It’s right that we strike a balance between protecting vulnerable renters and ensuring landlords whose tenants have behaved in illegal or anti-social ways have access to justice,” says Jenrick.

“Our legislation means such cases will be subject to shorter notice periods and then prioritised through the judiciary’s new court processes.”

Reaction

“It is welcome that renters will not face eviction by bailiffs around Christmas or where there are lockdown measures. But outside that, thousands of renters who have had eviction notices during the pandemic still have no assurance from the government whether they can stay in their home,” says Alicia Kennedy, Director at Generation Rent.

“Those who have lost income will find it difficult to find a new home so face many months of uncertainty, getting deeper into debt. The government must offer them more support than a Discretionary Housing Payment pot that was set up before the pandemic hit.”

Read the announcement in full.

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Northwood acquisition creates one of the largest agencies in Newcastle

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Congratulations to Inderpal Dhillon and Aman Singh of Northwood Newcastle who have completed on the acquisition of Bowes Mitchell Limited, adding 224 rental properties to their lettings portfolio, plus a highly successful residential sales business. 

“This is fantastic news for Inde and Aman, who have been truly outstanding since they first bought the Northwood Newcastle business just two years ago,” says Northwood MD Phil Gee. 

“They are a highly experienced team, with exceptional skills that have really benefitted the business, as Inde is a solicitor, his wife is a surveyor and Aman is an architect. Inde and Aman are superb operators, and immensely charismatic franchisees, as well as great ambassadors for the Northwood brand. Acquisitions remain a major growth strategy for Northwood, and I am very confident that the acquisition of Bowes Mitchell will be extremely successful, taking this business to an entirely new level. I wish them every success for the future.” 

“We are absolutely delighted,” says Inde. “Northwood Newcastle has been in existence for 16 years, and we bought it two and a half years ago, which really was one of the best things that Aman and I have ever done, as we had always wanted to work together and we enjoy what we do so much. It was always a goal of ours to grow the business, and as Northwood is part of the Belvoir Group, which has a fantastic assisted acquisition programme, the entire acquisition process was made easier. Gillian Mills, the Group Acquisition and Recruitment Manager, was invaluable throughout in terms of helping us to find the right business, advising, assisting and ultimately completing on the deal. 

“The acquisition of Bowes Mitchell has been a perfect fit for us, as it has added a further 224 rental properties to our portfolio, taking the number of rental properties in our portfolio to over 500. This was our target for next year – so to achieve this in 2020, a year ahead of target is amazing, and it means that we have now become one of the largest agencies in the Newcastle area.  

“Bowes Mitchell is a fantastic local business and will continue operating under its own brand, with the same team in place, so nothing will change in that respect. Bowes Mitchell has a strong reputation in sales with a ratio of 60% sales to 40% lettings, whereas Northwood has a lettings/sales ratio of 80/20. The added expertise and knowledge of the acquired sales team, plus a strong sales pipeline, will provide us with an enormous advantage over the competition. We will also be introducing Northwood’s highly successful Guaranteed Rent Scheme to the business, as well as investing in Proptech to make everything easier and even more efficient for landlords and tenants.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Northwood acquisition creates one of the largest agencies in Newcastle | LandlordZONE.

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England must follow Scotland and Wales down mandatory landlord licensing route, says report

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A report into the failings of the private rented sector backed by leading political and industry figures has recommended that landlords should be regulated in the same way as financial services and utility companies are, and proposes a raft of wide-ranging reforms and initiatives.

This includes empowering renters, better enforcement of their consumer rights and increased protection of tenants from unscrupulous landlords and letting agents.

The 42-page Consumer Rights in the Private Rented Sector report includes calls for mandatory licensing of all landlords in England, a code of conduct and even enabling local authorities to confiscate properties.

It also proposes a single law to replace the 140+ pieces that currently govern the PRS.

The key recommendations are:

• Mandatory registration for English landlords and agents.
• Stronger banning orders including property confiscation.
• A Private Renters Panel to represent tenants in policy making.
• A separate regulator for the PRS.
• Reform of redress and dispute resolution by introducing mandatory membership of the Housing Ombudsman Service for private rented sector landlords and lettings agents.
• An open-ended, flexible tenancy to replace ASTs.
• Make landlords provider better tenancy info to tenants.
• Set up a nationwide renting information hub.
• Bring the industry together via a National Private Rented Sector Reference Group.
• Introduce a Private Renting Quality Standard.
• Review current deposit providers and consider a National Tenancy Deposit Scheme.

Meera Chindooroy (picture, right), Deputy Director of Campaigns, Public Affairs & Policy at the NRLA, tells LandlordZONE: Landlords are providing a service and renters are their consumers. But being a tenant also comes with responsibilities – to look after the property, to behave appropriately without harming neighbours and co-tenants, to pay the rent, and to let the landlord know when repairs are needed.

“It’s important that tenants feel able to raise concerns about their homes with their landlord, and that both tenants and landlords are aware of their rights and responsibilities.

“We would welcome streamlined regulation in the sector and a clearer policy direction around the role of the private rented sector within the housing mix.

“We are in principle supportive of the concept of a proportionate landlord register, and have been working with others in the industry on the concept of linking this to a ‘property MOT’ which would enable tenants and local authorities to immediate see whether a property is up to standard, at a low cost.

Landlord and tenants

“The Government has also made clear that landlords will be required to register with a redress scheme in future. This will help to formalise the framework within which the relationship between landlords and tenants exists,” she adds.

“When considering regulation of the private rented sector, we have to recognise that there are 1.5-2 million landlords, the vast majority with just one or two properties, and this is not the same as regulating utilities or financial services. Regulation must be proportionate and appropriate to the needs of the sector, and work for all parties.”

Its author Lewis Shand Smith says: “Legislation is fragmented, landlord registration patchy, monitoring and enforcement is weak, routes to complaining limited and access to free and independent redress absent for most renters in the PRS.

“We propose therefore that there should be a Private Rented Sector Act, consolidating the plethora of legislation that already exists and building on it.”

John Healey (right), former shadow housing minister, says: “People who rent from a private landlord are at the sharp end of the housing crisis, but the truth is we have often more rights as consumers when we rent a car, buy a fridge-freezer or take out a loan than we do as private renters.

“This report doesn’t pretend to provide a comprehensive set of prescriptions for the private rented sector, but it does provide a strikingly fresh perspective which I hope will provide food for thought for politicians in Westminster and beyond.”

Read the report, which has been funded by The Smith Institute, in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – England must follow Scotland and Wales down mandatory landlord licensing route, says report | LandlordZONE.

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LATEST: MPs green-light proposed HMO Bill including greater powers for local authorities

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A new Bill aiming to protect vulnerable HMO tenants has been introduced that will bring significant changes to the way HMOs are managed and approved.

But the legislation, which has been green-lighted via a ten-minute rule in parliament, is a long way off becoming law as its second reading isn’t scheduled until next year.

Tory MP Ian Levy’s Houses in Multiple Occupation Bill got its first reading in Parliament yesterday when he expressed concern about the impact that subdividing large properties into HMOs can have on the local community and the “appalling” minimum accommodation size for two adults of just 10.22 square metres, “the size of a reasonably-sized garden shed”.

However, the Bill’s second stage has been scheduled for 5^th February.

Levy (pictured, below) also pointed to problems caused by the many HMOs that are listed as hotels or marketed as Airbnbs or bed and breakfasts.

“When a property is not registered as a house in multiple occupancy, it falls through the gap, which means that local authorities such as the council and the police do not have the right of access and cannot implement boundaries, restrictions or measures to support the safeguarding of the clients living there,” he said.

The Bill urges more powers for local authorities, while forcing large HMOs to provide a nominated person responsible for the residents living there on a 24/7 basis as a point of contact.

Levy also suggested that the police should have an input into planning applications for large HMOs because they often have to deal with resulting antisocial behaviour.

He added: “I want to ensure that someone being able to buy a house in a sub-prime area and divide it into multiple bedrooms, while showing absolutely no care for the individual or the local residents, becomes a thing of the past.”

Read more details about the Bill.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: MPs green-light proposed HMO Bill including greater powers for local authorities | LandlordZONE.

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Student flight fright: London landlord pain revealed as some see 18% drop in rent

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An exodus of international students has dealt a heavy blow to the London rental market, with demand dropping by nearly a fifth this summer.

As universities start the new academic year with a ‘blended learning’ approach, estate agency LiFE Residential says landlords have a tough decision to make as some face up to an 18% drop in rent.

“The dilemma landlords have on their hands now is to weigh up the calculations of adjusting their expectations to the new market conditions and take less rent, or hold out in the hope that there is a notable wave of student demand in Q4 and they will be able to achieve something close to what they were achieving before,” says area director Daniel de Abreu.

Some student landlords are no doubt still smarting from disputes with tenants last term when swathes of students left their accommodation early and demanded refunds.

Rent bills

After the Government refused to step in and help pay rent bills, many even went on rent strike at colleges around the country.

Despite this, interest from British students is still consistent, claims LiFE Residential, with only a 5% drop in applications for 2019-2020.

“The behaviour of domestic students seemingly hasn’t been impacted in the summer months,” says De Abreu, who adds that they’re enjoying a more tenant-friendly market, as average rent on those student properties is down about 11% for August.

He predicts that international student demand for London property will return in Q4, as many universities are offering remote study options for only the first term. And he adds landlords should remember that professionals in the capital are also continuing to flood the market looking for homes to rent, making the last two summer months traditionally the busiest of the year.

Visit LiFE residential.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Student flight fright: London landlord pain revealed as some see 18% drop in rent | LandlordZONE.

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Blogger takes apart threatening letter sent by Samuel Leeds’ lawyers following her critical videos

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Self-styled property investment guru Samuel Leeds has met his match in blogger Georgie Taylor, who has replied in kind to Leeds’ legal firm after it sent her a threatening ‘cease and desist’ letter last week.

This follows her two-part video blog looking into Leeds and his property academy, which forensically took apart many of his ‘make a fortune’ claims and promotional commentary.

Taylor – who blogs under the pseudonym Munecat on Youtube – then received a letter from legal firm Ellisons demanding that the videos be taken down.

“It has been brought to our clients’ attention that you have been posting abusive and defamatory YouTube videos about our client,” it says.

“In addition to your defamatory videos constituting harassment of our clients, the abusive and false information that you are posting demonstrates a clear breach of the Malicious Communications Act 1988.

“Offences under this Act carry criminal penal sanctions, which include imprisonment of up to 6 months and a fine of up to £5,000.”

Gender confusion

Taylor has given Ellisons a robust reply, pointing out several failings in their correspondence including that they think Taylor is a man which, she points out, suggests the lawyers involved may not have watched her videos.

Her letter also points out that regulatory guidance requires lawyers to watch videos before issuing warning letters, and that Ellisons has not provided any evidence of defamatory or abusive material within the videos.

“When it comes to dealing with third parties, lawyers must not take unfair advantage of third parties, including Litigants in Person ( i.e. me),” her letter says.

“Behaviour which might constitute the taking of unfair advantage includes bullying, the making of unjustifiable threats, or claiming a sum which cannot properly be claimed or demanding something which cannot properly be demanded.

“It seems you have breached a number of these terms/ethics in your letter to me, including claiming that your client has suffered £1million in damages and advising me of the length of a prison sentence for a criminal activity that I have not even undertaken and you have not provided evidence to prove I have!.”

Taylor has said she will report Ellisons to the Solicitors Regulation Authority if they contact her again in this ‘style of communication’.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Blogger takes apart threatening letter sent by Samuel Leeds’ lawyers following her critical videos | LandlordZONE.

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He simply wants to keep it because he’s paid for it?

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Hi. We have a tenant who left a fixed-term tenancy agreement 2 months earlier than his end of tenancy agreement and moved into a larger property nearby.

He paid all his rent till the end, but would not hand over his keys or give consent for us to access the property to prepare it for the next tenant.

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