LATEST: Government urges landlords to use third-party mediation services

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The government has urged landlords to consider mediation before starting eviction proceedings and, unusually, pointed them towards three commercial platforms; TDS Resolve, Property Redress Scheme Mediation Service and Resolve by Flatfair.

“We welcome the Government highlighting the importance of third party assistance to help come to settlements during this difficult period. This is often what is needed to get an agreement over the line,” says Sean Hooker, Head of Redress at the PRS.

“Our service is a comprehensive mediation, which allows for all eventualities. It is quick, affordable and you only pay for the stage of the process you reach.

“Given that rent arrears can mount up to thousands of pounds in a short time, the outlay on such a service is invaluable.

“We have also put together a package with Landlord Action that allows you to start the court process at the same time as engaging in mediation. This will save time and money as both processes will run in tandem.”

Using these kinds of mediation services landlords and tenants can come to an amicable resolution over rent and repossession, then decide if they want to formalise the agreement in a legally binding document.

Pre-Action Protocols

As the Pre-Action Protocols that apply to social landlords looks set to be extended to landlords in the private rented sector, the new initiative will also help cases that continue to court by providing them with reports that can be used to show they’ve tried to resolve issues with their tenants.

Landlord Action founder Paul Shamplina says when the courts reopen next week, there’s going to be a huge backlog of cases and waiting periods of between a year and 18 months to get possession.

“Through our partnership with PRS we can offer landlords an expert eviction process and the chance to get their property back sooner than current court process allows,” he says.

Franz Doer of Flatfair says: “We were quick to recognise the immense challenges faced by both landlords and tenants and launched Resolve in May, and it is great to see the Government is now actively encouraging them to work together to find a solution. 

“For tenants, letting your landlord know that you are in financial difficulty as soon as possible is the most important thing.”

Visit: landlordaction.co.uk/eviction/take-action or tenancymediation.theprs.co.uk/mediation

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Westminster prepares huge PRS shake-up for landlords and properties

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Westminster City Council has launched a raft of new measures in a bid to shake up its huge private rented sector.

The authority – which boasts the largest number of private rented properties in England with about 52,700 homes, 43% of all its housing stock – will start by consulting on a discretionary licencing scheme for all HMOs.

It also plans to review its enforcement policy and encourage more landlords and letting agents to sign up to its London Landlords Accreditation Scheme.

A private rented sector forum where landlords and letting agents can share best practice is planned, while Westminster has promised to offer support to its tenants, landlords and letting agents, and to help tenants take legal action against rogue landlords.

Recent studies found that 13% of privately rented properties in the borough have at least one serious hazard which could endanger tenants, such as faulty electrical wiring, severe damp or mould.

Serious hazards

The analysis showed nearly half of HMOs are likely to have serious hazards.

The council already operates a Housing Standards Taskforce which has led to £80,000 in civil penalty fines and £200,000 in fines for landlords who let HMO properties without a licence.

Last month, it launched an online rent repayment checker for tenants to check if their HMO is licenced and to help them claim back rent.

Councillor Heather Acton, cabinet member for public protection and licensing, says: “We want tenants, landlords and letting agents to be aware of their rights and responsibilities so we can raise standards in the sector as high as possible.

“Our new policy sets measures designed to ensure Westminster’s private rented sector is well managed, operating within the law and above all else, safe for the people living here.”

Read more about Westminster City Council’s PRS schemes.

Advice: Are HMOs the way forward?

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Leading peers to attempt evictions block manoeuvre in Lords tomorrow

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Liberal Democrat housing spokesperson Baroness Grender and Labour peer Lord Ponsonby of Shulbrede have secured time in the Lords tomorrow afternoon during which they will try and block the resumption of evictions in England.

The pair have introduced two little-used procedural mechanisms, a ‘Motion to anul’ and a ‘Motion to regret’ in a last ditch attempt to prevent evictions going ahead as the say on possession hearing lifts in the courts.

Some 19 speakers are already scheduled to speak during the ‘orders and regulations’ debate including some of its leading housing specialists such as Lord Best, Lord Whitty, Baroness Altmann and Baroness Kennedy.

If successful, the procedural manoeuvre would block tenants from being removed from their properties after a possession order is granted by forcing a wider parliamentary vote on the government’s Coronavirus regulations.

“This Government made a promise that no renter who has lost income due to COVID would lose their home, yet from Monday tens of thousands are facing that very real threat,” Baroness Grender (pictured) told The Mirror.

“Rather than scrapping no-fault evictions as promised in the election, Tory Ministers are enabling evictions of an estimated 55,000 private renters.

Under threat

“People who have been furloughed, made redundant, have children going to a local school are all under threat.

“If this goes ahead countless families will find themselves without a home, on this Government’s watch, in the midst of a pandemic.

“The loss of a private tenancy is the main factor behind someone becoming homeless, which is why the Liberal Democrats are determined to put a stop this legislation.”

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First trial date December 2021!

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Finally, the courts officially reopened, after six months of suspension. Some cases on possession matters will be prioritised including: Anti-Social Behaviour, Domestic Violence and Rent Arrears totalling over a year.

We suspect there are about 55-60k possession cases in the court system now

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Illegal evictions ballooning as possession restrictions continue, says expert

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As we predicted in August, growing numbers of law-abiding landlords are turning rogue, frustrated by a lack of Government help and restrictions around evictions, it has been claimed.

Their actions are pushing tenants into the semi-criminal, parallel renting sector – leaving them without tenancies or deposit protection.

Ben Reeve-Lewis, strategic case manager with Safer Renting, which works with local authorities, says the situation is the worst he’s seen in the last 30 years and is expecting a “massive” increase in illegal evictions.

“Landlords who wouldn’t generally be in the criminal end of the market are resorting to taking a chance out of frustration with tenants unable to pay their rent,” he says.

Rent arrears

While rent arrears are the most common reason landlords decide to remove tenants, another significant cause is the rise in unlawful HMOs where it’s common to find up to 15 people in a small three-bedroom house.

When councils find out about a particular property, a landlord will often forcibly remove the tenants before evidence can be gathered to bring a prosecution, Reeve-Lewis (pictured, below) has told The Independent.

“It used to be people on housing benefit who were exploited by the worst landlords but now you have an underclass of poor.

“Now it’s gig economy and migrant workers who don’t get tenancy agreements or rent receipts, and end up being forcibly evicted.”

Numbers of illegal evictions are up by 50% in some parts of the country since the pandemic, according to tenant relations officers.

Their association believes incidences of harassment and illegal activities will increase in areas where local authorities have been slow and ineffective in their response to the problem.

It says landlords believe that with fines of about £1,000 for illegal eviction, it’s cheaper to take a risk and be prosecuted than going for a legal possession order through the courts and being unsuccessful. 

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Law Society says new eviction rules must support tenants

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The UK government yesterday lifted its stay on housing possession proceedings. It introduced a moratorium on tenant evictions in March and this was extended further in June. The moratorium expired on 20 September, although a further reintroduction cannot be ruled out if lock-down measures need to be reintroduced.

These new rules sit alongside additional measures outlined by the government on 11 September, which sought to protect tenants during winter.

Law Society president Simon Davis has says:

“Possession proceedings must be made more workable in anticipation of the huge increase in cases, the established backlog and the difficult circumstances facing landlords and tenants. However, in order to protect vulnerable tenants it is vital that legal advice (and Legal aid) is available to all tenants.

“It is unacceptable that, in the face of a pandemic and difficult economic prospects, tenants are being left without representation during possession proceedings.

“The changes to the possessions procedures are a positive step, but they cannot replace legal advice in achieving access to justice. More needs to be done by government departments to support tenants at this time, to prevent them losing their homes and to stop an increase in homelessness

“They will also have a limited impact where mandatory evictions, such as section 21s remain available to landlords.

“Allowing judicial discretion in all current possession proceedings will help to reduce homelessness and encourage better relationships between tenants and landlords. This must be considered if these changes are going to have the intended impact.”

“Tenants are still required to pay their rent and many are therefore accruing significant rent arrears, despite the looming end to the furlough scheme and employment prospects continuing to dwindle,” said Simon Davis.

No widespread or speedy evictions

However, law firm Royds Withy King says that widespread evictions are unlikely to follow the lifting of the landlord possession restrictions. There is unlikely to be an immediate spike on evictions following new eviction protocols and there is a backlog of cases, says the law firm.

Jacqui Walton, a senior paralegal in the residential property team at Royds Withy King commented:

“It is unlikely that we will see an immediate spike in evictions and certainly not tenants kicked out onto the streets any time soon. Landlords are bound by strict rules designed to slow the process down.

Landlords that started eviction proceedings before the 3 August must now serve what is called a ‘reactivation notice’. If they do not, any claim will not be relisted by the courts or heard by a judge.

“And even when a reactivation notice is served, in fault-based evictions the courts will allow more time between the claim and hearing, typically eight weeks, and given the backlog of cases that is likely to be significantly longer.

“Eviction claims that started on or after the 3 August now require landlords to enter into what is called a ‘pre-action protocol’, with landlords needing to attempt to agree a resolution with their tenants before issuing a possession claim. Landlords will also need to provide the courts with information on what impact the coronavirus pandemic has had on a tenant, which may have an impact on how much time a tenant is given by the court to vacate a property.

“The guidance on what this means for landlords, what information is needed and what happens if it is not provided is unclear and could leave eviction claims stuck in the courts for many months to come, leaving landlords in limbo. Whilst this may give respite to tenants, there does not appear to be any recognition from government that landlords too may be struggling with the loss of income during the coronavirus pandemic.

Notes & Links:

In July 2019, the Ministry of Housing Communities and Local Government launched a consultation: A New Deal for Renting, which sought views on how section 21 has been used in the past and how landlords should be able to regain possession once it has been abolished. The Law Society’s housing law committee backed government moves to abolish ‘no-fault’ evictions in January 2020.

In October 2019, the Ministry of Justice (MoJ) consulted on proposals to change the HPCDS, with its stated aim to ensure the scheme is sustainable in the long-term and can maintain this vital service for those who need it.

In January 2020, the Law Society responded to the consultation, welcoming many of the proposals. There has been no response from the MoJ to that consultation or implementation of proposals.

In April 2019, the government announced it will end ‘no-fault’ evictions by repealing section 21 of the Housing Act 1988.

Section 21 of the Housing Act 1988 allows landlords to end Assured Shorthold Tenancies (AST) without having to give a reason, provided the correct procedure is followed and proper notice is given.

In July 2019, the Ministry of Housing Communities and Local Government launched a consultation: A New Deal for Renting, which sought views on how section 21 has been used in the past and how landlords should be able to regain possession once it has been abolished.

The Law Society’s housing law committee backed government moves to abolish ‘no-fault’ evictions in January 2020. 

Read press release

Read government’s winter support press release

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NEW TV SERIES: Extreme Nightmare Tenants, Thursday 24th September at 10pm

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A new TV series focussing on some of the worst eviction cases filmed by Channel 5 for its series Nightmare Tenants, Slum Landlords has kicked off.

Called Extreme Nightmare Tenants, the third episode is due to screen this Thursday 24^th September at 10pm featuring Paul Shamplina of Landlord Action as he deals with several evictions.

This Thursday’s episode follows several new nightmare tenant cases including:

Yossi Harel

Yossi rented out his family home in North London to take a job in Israel, securing a teacher and his family as tenants. But they soon stopped paying the rent and, on the brink of financial collapse, he called Landlord Action for help.

“The family played Yossi for time with various excuses, ran up £1,000s in rent arrears while continuing to buy designer goods,” says Shamplina.

“We suspected but couldn’t prove they were serial nightmare tenants but on the day they were to be evicted tempers frayed – the landlord had to get them out so he could sell the flat and pay the debts they had caused him to build up.”

David Simpson

Things began well for builder David Simpson when he bought a property as an investment and rented it out – until the payments stopped and he faced an evasive tenant and her aggressive partner. David then turned to Shamplina to help him get his property back.

“This tenant continually took advantage of David’s kind nature; he was a landlord who had set out to offer this social tenant somewhere to live and help out her family, who prior to moving in were homeless,” says Shamplina.

“On eviction day there were fireworks. The property was left in a state and the tenant didn’t give two hoots about what she owed David.

“Most landlords would have sold up after this experience, thankfully David was able to re let the property to a tenant who appreciated the property.”

Sade Ademoye

Sade wanted to help her cousin who was in financial trouble after a divorce, and temporarily let him a room in her elderly mother’s home, charging him a discounted rent.

But after her mother died, the cousin refused to leave. With this family feud turning acrimonious, Sade wanted to get him out.  

“Over the years we have dealt with numerous family evictions, which can get very messy,” says Shamplina.

“On the day of eviction I ensured things remained calm as I have seen landlords reach breaking point and end up with ‘Landlord Rage’.

“Our main purpose at Landlord Action is gaining possession without any dramas, which is often easier said than done.”

THE new 6^th Series of Nightmare Tenants, Slum Landlords on Channel 5 should be out very soon.

Visit Landlord Action.

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‘Landlords cannot continue funding tenants where the government should be helping out’

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NRLA Chief Executive Ben Beadle has appeared on Channel 4 News to defend the government’s decision to remove the stay on possession hearings, the first of which will be heard today in courts around the country.

Appearing alongside Dan Wilson Craw, deputy director of Generation Rent, Beadle was challenged on whether it was the right time to restart evictions and why landlords need recourse to the Section 21 ‘no-fault’ mandatory eviction process.

“The courts have put in pretty strict measures to ensure that, if there are local lockdowns, the enforcement of eviction notices will not proceed,” he told Channel 4 reporter Fatima Manji.

“Landlords aren’t property tycoons and they don’t have massively broad shoulders to be able to carry on funding [tenants] where the government should be helping out.

“Section 21 notices are not being prioritised under the Master of the Rolls working group guidelines, and only the most serious cases are to rise to the top to be dealt with.

Beadle told the programme’s seven million viewers that landlords “don’t wake up and think ‘I’ll evict my tenant today’ – there is invariably a fault,” he said.

“I accept that selling a property is not the fault of the tenant, but we must look at the full financial package that is available to both sides. And landlords have faced increased costs and taxation, so we’re now facing the perfect storm.

“But this is not the time to be increasing rents.”

During the programme Wilson Craw’s key message was to call for ‘no fault’ evictions to be banned.

Beadle countered that the new court rules that went live today “are going to give courts serious teeth including the deprioritisation of Section 21 evictions, which is what Dan is calling for.”

The government has already announced that it intends to scrap Section 21 evictions once Covid is over.

Watch the Channel 4 interview in full.

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Law Society says eviction rules must support tenants and ensure access to justice

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New housing possession rules unveiled by the government must protect vulnerable tenants, ensure access to justice and prevent a spike in homelessness, the Law Society of England and Wales warned today. On 20 September, the UK government lifted its stay on housing possession proceedings

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Revealed: How Covid is changing the student accommodation sector

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The impact of Covid 19 on the student accommodation sector was swift, with Students leaving their accommodation to return home in significant numbers.

Many students, without part-time work because of the pandemic, struggled to make rent payments creating pressure for Landlords. A number of Purpose Built Student Accommodation (PBSA) providers responded by enabling students to cancel their contracts, with one provider – Unite Students – cancelling over £100 million of rent payments.

Continued demand

Even during the peak of the lockdown restrictions, it was noticeable that demand for student accommodation remained. Enquiries for student accommodation were up 38%.

This demand was driven by students who were midway through their degree and through new applicants, attracted by the quality of UK universities. A university education is highly regarded and despite the challenge of online learning, a record 40% of the UK’s 18 year olds applied to go to University this year. Therefore the number of students studying for a degree remains robust. 

Shifting patterns of demand

The potential impact of reduced numbers of international students has been widely covered by media. In reality, the number of international students who have a place this year at University is up by over 1,000 to 71,320.

Again the demand is there, however the main concern is whether these students will take up that place or choose to defer. This seems to have had an impact in London and in particular on purpose build student accommodation, which would typically rely on volumes of international students.

Outside of London there has been less of an impact. One major change Accommodation For Students (AFS) has seen is increased demand for shared housing and HMOs, which are up 42%.

Growing in interest in shared housing

This growth in interest in shared housing at a time when we would typically see the majority of demand for PBSA reflects three things;

·        Increase in applications from domestic students to UK Universities

·        The impact of Covid 19 on accommodation choices

·        Delays in existing students finding accommodation as a result of lockdown

As a result, AFS anticipates a busy early letting season (October – February) where groups of students traditionally seek to secure their shared housing for the next academic year.

This in particular will be driven by increasing numbers of domestic students looking to move on from University owned halls. However, the ‘season’ may start a little later than in previous years as some University stagger return dates and it may take longer for this year’s cohort of students to orientate themselves into student life, because of some of the social restrictions that are in place.

Beyond 2020 

UK Universities are world class. Oxford University continues to top the list of the world’s best Universities. This quality will continue to attract students and the sharp rise in the number of 18 year olds in the UK, with a million more in the next ten years, point to continued growth in the sector and the need for student accommodation.

While the long term prognosis is positive, there are short term challenges to overcome. However there are some positive trends for landlords and agents to capitalise on – in particular the growing interest in shared housing.

To capitalise, a radical strategy would be to build some flexibility into tenancy agreements to adapt to the short term impact of Covid, as many in the PBSA sector have.  However, the basics of good marketing, competitive pricing and the right location should be enough to ensure a positive outcome for most.

Simon Thompson is CEO of AccommodationForStudents.com

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