LATEST: Priti Patel says Right to Rent review delayed until Spring ‘due to Covid’

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Delays caused by Covid have pushed back a Government report on how the Right To Rent scheme might change.

Home Secretary Priti Patel says the pandemic has impacted field work which means the delivery of its final implementation report won’t happen until Spring 2021.

In response to a written question from Stephen Timms, chair of the work and pensions committee, who asked for an update on the Windrush Lessons Learned Review, she said the Government was in the “discovery and scoping phase of the review”.

One of the six areas studied in the review is how to prevent people without lawful status from accessing the private rental sector.

Patel said: “A full evaluation of the Right to Rent scheme is already underway.

The evaluation includes a call for evidence to tenants, landlords and letting agents, a mystery shopping exercise and surveys of landlords. Members of the right to rent consultative panel provided input into the design of the evaluation.”

New regulations

New regulations being implemented tomorrow (25th November) will allow non-UK nationals in England to prove their status for Right to Rent through a digital Home Office check.

Tenants will get a share code, which landlords and agents can combine with their date of birth, to access a real-time Home Office system. Some checks will still require document checks as not everyone will have an immigration status that can be checked online.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Priti Patel says Right to Rent review delayed until Spring ‘due to Covid’ | LandlordZONE.

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Deposit scheme £ mistake?

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I have a property that was let in 2009 via an agent. The agent gave me the deposit and the 1st month’s rent.  I didn’t know that the deposit should have been protected in an account at the time.

Then in 2015 the agent said that he will deposit £675 in a government scheme.

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Covid changes: Renters now want longer leases, decent broadband and a home office

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Tenants are asking for longer leases with the average length now 22 months, research by estate agency Kinleigh Folkard & Hayward (KFH) among 2,000 London tenants has discovered.

Its annual tenant barometer found that 38% of renters prefer leases of 18 months or more, with more than a third wanting a lease that’s at least three years long.

KFH says that as more people spend time at home, 58% of all tenants say access to private outdoor space is paramount, with 48% citing optimal broadband speed as a key factor and 44% wanting a dedicated space to work.

Job insecurity

Against the backdrop of furlough and job insecurity, KFH says 66% of tenants cited affordability as high on their wish list, along with the desire for outdoor space.

Tenants are also rethinking their commute times and as a result are happy to keep their options open when looking for rental properties; 44% of tenants living in zones one and two would consider moving to zone three, while 46% of tenants in zone three are open to moving to zone six and beyond.

The pandemic has not only changed how and where we live, but also how and where we work, says Paul Masters(pictured), group operations director of KFH.

He adds: “It’s too early to tell if tenants will trade off commute times against the internal and external space advantages of living slightly further out long term, but tenant sentiment is likely to keep shifting as we move through the next few months.”

Read more tenants/landlord surveys.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Covid changes: Renters now want longer leases, decent broadband and a home office | LandlordZONE.

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LATEST: FCA extends landlords mortgage ‘holiday’ scheme until July

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Landlords seeking a new mortgage payment deferral or who want to extend an existing one have been given a new cut-off date for the scheme of July 2021.

The date has been revealed by the Financial Conduct Authority (FCA). It says lenders must allow landlords to extend ongoing payment deferrals after the original cut-off date of 31^st March 2021 up until July next year. Borrowers are able to take ‘holidays’ of six months in total, but it can be taken in tranches.

Also, landlords newly impacted by the pandemic have until the beginning of February to request a deferral as the scheme runs for a maximum of six months.

The FCA has also said lenders should not downgrade a landlords’ credit rating if they do request a mortgage payment deferral, although documentation shown to LandlordZONE by a leading buy-to-let broker suggests that some lenders are rejecting applications if a landlords has received other kinds of Covid-related government support.

But industry organisations Safeagent has questioned whether the new FCA guidelines are the right approach at all.

“We question if deferral of mortgage payments is the answer, or if it pushes the problem further down the track,” says its Chief Executive Isobel Thomson.

“While lenders will be adhering to the guidance which provides up to six months deferral, we know it may take badly affected tenants much longer to get back on their feet, meaning landlords could be building up debt and struggling to meet mortgage payments for many months to come.

Safeagent is calling on the government to introduce grants or loans for landlords who have tenants are in receipt of Universal Credit and whose housing payments do not cover all their rent.

“This would recompense landlords for the shortfall on their mortgage and any additional interest over the period.”

Read more about the mortgage holiday.
Read the guidance in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: FCA extends landlords mortgage ‘holiday’ scheme until July | LandlordZONE.

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Claiming possession of a part of my garden leased from the council?

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I moved into the end terrace property 20 years ago and part of the garden to the side and rear of the house was leased from the council.

Approximately a year after I moved in the lease expired on the part of the garden and the council wrote and offered me the opportunity to purchase.

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Pets can keep landlords and tenants happy during Lockdowns

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The Deposit Protection Service (The DPS) has issued new guidance on domestic animals in rented properties following the surge in pet ownership during lockdown.

According to the Kennel Club, two out of five new puppy owners this summer bought their pet as a ‘Covid companion’

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EICR – Consumer Unit installed by unqualified electrician?

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I hired an electrician to do an EICR who found the Consumer Unit needed to be replaced. I then gave the job to him to complete.

However, after the job was completed, it turned out he isn’t qualified to register the installation with Building Control at the local council

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LATEST: Tenants win battle with billionaire landlord over ‘revenge evictions’

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A group of campaigning tenants are celebrating an eviction reprieve from their billionaire landlord.

The renters, who live in Olympic House, a block of 170 flats mainly owned by property developer John Christodoulou in Somerford Grove, Stoke Newington, tried unsuccessfully to negotiate for a temporary 20% rent reduction during the first lockdown.

The group’s organisers’ tenancies then appeared to be singled out for eviction, with notices citing the reason as a ‘business decision’ which prompted a raft of protests.

However, their notice of eviction has now been rescinded, while Hackney Council has confirmed that the block is now under investigation for unlicensed HMOs.

It says “ongoing and complex investigations” are taking place into multiple properties in the block.

Hackney Mayor Philip Glanville backed the tenants’ campaign and says: “Let’s hope that this is the start of something far broader from the landlord and their agents, and only one potential victory in a much bigger struggle for renters’ rights across Hackney and London.”

Councillor Sem Moema, Hackney’s mayoral adviser for private renting, adds: “This is a huge win for Somerford Grove renters…that this revenge eviction has been stopped.”

Somerford Grove resident Jordan Osserman told The Hackney Citizen it was good news but suspects the landlord may be getting things in order, ready to issue a valid eviction notice.

He said: “If the landlord and letting agent had agreed to meet face to face I’m sure we would have been able to reach an amicable agreement. It wouldn’t have gone this far. But they chose to behave this way, so we’ve done everything we can under the law to defend ourselves.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Tenants win battle with billionaire landlord over ‘revenge evictions’ | LandlordZONE.

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Building & Construction, the Challenges and Opportunities after Brexit

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With the transition period almost over, 11^th hour talks still don’t give a clean signal as to whether a trade deal can be reached by the 31^st of December, or if indeed a trade deal will be agreed at all.

Whilst some argue that reaching a deal is imperative, others argue that trading on WTO rules, with average tariffs at only 3%, will make little difference, though it certainly will to some industries, in particular agriculture and the motor industry, with their much higher tariffs trading with the EU.

Despite this uncertainty, the construction industry has been given a clear signal as to exactly what is coming in the new planning laws of July 2020. The changes announced by Robert Jenrick, the Housing Secretary, are focussed on speeding up the processes that supply new homes to market, and helping breathe new life into town centres across England to meet rising private, domestic, and commercial property needs.

Covid-19 has made the sourcing of raw materials problematic writes Paul McFadyen, Managing Director of metals and workwear retailer, metals4U but he has insights on what this means for business and the construction industry.

The new planning laws are intended to fast track and streamline the planning application process, to allow businesses and domestic housing to expand without the need to relocate. The intention is to reduce the need for building on greenbelt land surrounding towns and villages while keeping economic communities strong and viable, helping retain jobs, and provide continuity for the local workforce, businesses, and communities.

Full planning applications will no longer be required to demolish unused buildings before rebuilding; these buildings can now be repurposed into housing, retail, or commercial concerns, with less bureaucracy, to bring new revenue quickly into the heart of towns and cities.

Homeowners can also add up to two storeys to their existing homes to help transition the changing face of family life – this will be especially helpful to growing families and to help provide support and familiar surroundings for our ageing population.

Updating the planning permission system is well overdue writes McFadyen; for years the construction industry has bemoaned the amount of red tape creating a bottle next in terms of time, and the finance to get construction projects off the ground.

The new system is attracting large scale investment from Westminster; £12 billion has been injected into the government’s affordable home programme, this is projected to underpin the building of 180,000 new homes.

The government have also pledged to boost the Home Building Fund with £450 million to help give access to financial support to small developers – in real terms this is expected to assist the building of 7,200 new homes, and a further £400 million has been assigned to support the building of around 24,000 new homes through the Brownfield Land Fund to target housing provision in city areas such as Liverpool, Manchester, Tyne and Tees Valley, Sheffield, and the larger areas of West Yorkshire and the West Midlands.

This amount of financial commitment to the construction industry will definitely help safeguard the security of the industry, construction workers, and associated services and suppliers well into the new Brexit period.

Access to products and services post-Brexit are a major factor in the future planning and security of construction. Details of how the UK will do business with the EU and Global markets are beginning to emerge, however, Covid-19 is also heavily affecting the sourcing of raw materials, construction materials, and labour; it is a major contributing factor to the current recession the UK is now facing.

The best way to grow the construction industry through these trying times says Mr McFadyen, “is to invest within our shores as highly as possible. By utilising the skills and products already held, or manufactured, within the UK we can support the UK economy while making a real difference at a grass roots level to the livelihoods of all the sectors and services that make up, and contribute to, the construction industry supply chain.”

“We need to prioritise UK based materials manufacturers and suppliers, utilise the skills and talents of UK based architects, surveyors, tradespeople, project managers, and the entire collective of workers that are instrumental in the success of all construction projects,” he says.

The UK construction industry currently relies heavily on migrant workers from other EU countries and the end of the free movement of labour post-Brexit will lead to a skills shortage in some areas. The Construction Industry Training Board, (a public body sponsored by the Department for Education) has recently published its Strategic Plan for 2021-2025; this focusses heavily on how the department is investing in training support for the construction industry to increase the opportunities and outcomes for trainees and existing workers. Although this will not necessarily solve the problems in the short term, it offers hope for the longer-term success of building a skilled and innovative workforce post-Brexit.

Much of the investment for larger infrastructure construction projects currently comes from the European Investment Fund and the European Investment Bank – this funding will end when we exit the EU, and at the present time it is unknown if the revenue the UK will save in EU membership fees will adequately plug this €7.8bn deficit, an educated guess would suggest not says Paul McFadyen, the Metals4U CEO, and he concludes:

“There is no doubt that the construction industry will suffer in the wake of our exit from the EU, however, with a forward-facing positive attitude, a commitment to investing in UK based suppliers and services from within the industry, the pledge of government investment, and an update to planning laws to remove some red tape, the future success of construction in the UK has much promise of a brighter tomorrow.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Building & Construction, the Challenges and Opportunities after Brexit | LandlordZONE.

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Non-resident Landlord scheme and 6 months rule?

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Hi everyone. I’ve been reading some conflicting advice about people who have lodgers and go away for a few months (fixed-term stay somewhere say for a summer job, less than a year, definitely not “moved out”, all belongings still in main home and room kept free).

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