Browsing all articles from December, 2020
Dec
16

Splitting a property horizontally?

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We own and rent out a maisonette (c. 1900) which is a single building, with one entrance leading to the ground floor flat and the second leading directly to the first floor flat. It appears that it was split into two flats sometime after it was built (perhaps c.

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Dec
16

Coalition of 19 pro-tenant groups launches backed with £150k fighting fund

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A new ‘super group’ of 19 charities and renters’ unions has been formed to increase the pressure on the Government in a bid to shake up the housing system.

The Renters Reform Coalition wants it to use the upcoming Renters’ Reform Bill to end section 21 ‘no fault’ evictions, improve the condition of privately rented homes and empower tenants.

It says the Bill – announced in the Queen’s Speech a year ago – is a chance to go beyond tenancy reform and change the landscape of renting for the better.

Made up of groups including Citizen’s Advice, Crisis, Generation Rent, Greater London Authority, Joseph Rowntree Foundation and the NUS, it promises to work with the Government and others to ensure all renters have access to a safe, affordable and secure home, where they can live and flourish.

It’s also calling for an extension to the eviction ban, – which ends on 11th January – to renters under tier two and three restrictions, to keep them safe for the duration of the pandemic. It’s being funded to the tune of £150,000 by the Nationwide Foundation.

young

Bridget Young, programme manager at the Nationwide Foundation (pictured) says the Bill is an opportunity to redesign the housing system, creating a fairer balance between renters and landlords. “Implemented correctly, these reforms are also a chance to improve the safety, security and condition of privately rented homes,” she adds.

“We are looking forward to working with the Government and other partners to take this opportunity to deliver a more just housing system. The coalition is a broad group but we are united in our belief that everyone needs a safe, affordable and secure home, where they can live and flourish.”

Other organisations within the coalitions include: Advice 4 Renters, Camden Federation of Private Tenants, the Chartered Institute of Environmental Health, the Greater Manchester Tenants Union, London Renters Union, the Nationwide Foundation, New Economics Foundation, Priced Out, Renters Rights London, Safer Renting, Toynbee Hall and Z2K.

Read NRLA CEO Ben Beadle’s views on the Renters Reform Act and how it will change the PRS.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Coalition of 19 pro-tenant groups launches backed with £150k fighting fund | LandlordZONE.

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Dec
15

LATEST: Liverpool makes ANOTHER bid to win approval for unpopular licensing scheme

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Liverpool Council hopes its new scaled-down selective licensing scheme – covering half the previous number of wards – will win government approval.

Smarting from Housing Secretary Robert Jenrick’s refusal of its city-wide application in January, it had planned to launch a judicial review of the decision but shelved this in favour of a new application that covers about 80% of the 55,000 privately rented properties in 16 of the city’s 30 wards.

An evaluation of the 2015-2020 city-wide licensing scheme found more than 34,000 inspections of licensed properties had been completed, identifying that 65% of properties were not fully compliant and resulting in 2,500 legal notices issued.

liverpool wendy simon

Deputy mayor, councillor Wendy Simon (pictured), says this showed how council intervention forces bad landlords to take action to improve their properties.

She adds: “This life-saving scheme would be one of the largest in the country covering the vast majority of properties that were under the original programme, ensuring landlords meet their obligations, such as putting in smoke detectors and fire doors as required by law.”

Liverpool’s latest public consultation revealed that tenants and residents were generally supportive of the new proposal, while landlords and agents were against it.

If approved by the council this week, it will submit an application to government in January, although a scheme is unlikely to come into force until June 2021 at the earliest.

HMO consultation

The council has also just announced a two-month consultation on limiting HMO conversions. It points to fears that the volume of HMOs has reached a tipping point, threatening the housing offer in the city for families and causing parking, anti-social behaviour and waste collection issues.

Conversions of family houses into seven bedrooms and above currently need planning permission and it’s considering whether these rules should apply to smaller HMOs as well.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Liverpool makes ANOTHER bid to win approval for unpopular licensing scheme | LandlordZONE.

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Dec
15

Guess who’s footing £100bn bill to decarbonise homes? Yes, landlords!

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The Government’s new Energy White Paper has emphasised that landlords must help foot the £100 billion bill for decarbonising domestic and commercial properties.

Along with householders and businesses, it names landlords as part of the solution when setting steps to cut emissions from industry, transport, and buildings by 230 million metric tonnes over the next decade. This includes changing the way the country heats its homes.

Building on Boris Johnson’s 10-point plan for a ‘green industrial revolution’, the White Paper states: “Meeting our commitments to decarbonise and improve the energy performance in buildings will require the mobilisation of around £100 billion of capital across homes, businesses and the public sector over the 2020s alone.

“It is investment that must come principally from businesses and homeowners, and from landlords of domestic and commercial premises.”

It confirms that it will take action to improve the energy efficiency of homes in the private rental sector and is currently consulting on proposals for 2.8 million privately rented homes to meet a minimum energy performance standard of EPC Band C by 2028, “where practical, cost-effective and affordable”.

Urgency

During the debate in the Commons, Ed Miliband (pictured), shadow secretary for business, energy and industrial strategy, challenged Business Secretary Alok Sharma over the paper’s timing and a lack of urgency in the private rented sector.

He said: “For existing homes, the Government have known for years about the challenge of insulation and conversion of the way they are heated, but frankly we still have one-off announcements of resources with no proper plan.

“For homes owned by private landlords, the targets are still too weak and too far off. Does the Secretary of State recognise that the only answer to meet the transition and fairness is a proper long-term, street-by-street house-by-house plan?”

Sharma replied: “Of course we need to go further, but the Government are putting their best foot forward in delivering on a green industrial revolution.”

Read the White Paper in full.
Read more about green rental properties.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Guess who’s footing £100bn bill to decarbonise homes? Yes, landlords! | LandlordZONE.

View Full Article: Guess who’s footing £100bn bill to decarbonise homes? Yes, landlords!

Dec
15

LATEST: Government to get serious about policing rented property EPCs next year, says Minister

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Housing minister Christopher Pincher (pictured, above) has revealed plans to clamp down on landlords and letting agents who do not hold or display the minimum required EPC certificate when renting out a rented property.

Pincher says his housing ministry team is to to work with stakeholders within the private rented sector on how to better enforce EPC compliance, and also build on enforcement pilots that are already under way in partnership with local authorities.

His counterparts in the The Department for Business, Energy and Industrial Strategy have been busy too. They have been working with seven councils to test bottom-up, local authority-generated solutions to monitoring, compliance, and enforcement of the EPC regulations.

As we reported in February, this includes an initial scheme in Oxford, which BEIS is funding to increase EPC compliance.
Pincher’s comments were in answer to a parliamentary question from Liberal Democrat business spokesperson Sarah Olney (pictured).

She asked whether his department was working with local government to assess whether lettings agencies and landlords are compliant.

Landlords have been required to hold an EPC for their rental properties since 2008 but it is only recently that the government has begun to ratchet-up the legislative pressure.

Although they need only obtain a new EPC every ten years depending on the cost, complication or potential devaluation of the work needed, landlords for both new and existing tenancies must now hold an minimum ‘E’ certificate.

The government has said this will rise to a ‘C’ for existing tenancies in 2025 and for all tenancies by 2028. A consultation is under way on this and landlords can input into it.

But while this is all well documented, enforcement – as in all areas of the PRS – is less certain.

A survey by the i-newspaper in October via Freedom of Information requests found that just 6% of the 238 councils it canvassed had taken any enforcement action over EPCs.

Read the official guidance or property marketing and EPCs.

 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Government to get serious about policing rented property EPCs next year, says Minister | LandlordZONE.

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Dec
15

Landlords need more time to comply with new electrical safety regulations

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The government has been warned that the huge task of ensuring rented homes comply with its new electrical safety standards is unlikely to be achieved by the deadline of 1st April 2021.

That’s when rented properties must comply with the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.

These went live in June this year but landlords or their letting agents were given until the 1st April. But trade association ARLA Propertymark is now asking for a 12-month extension to this deadline.

A letter sent to housing minister Christopher Pincher yesterday by the organisation’s campaigns manager Timothy Douglas does not mince its words, saying that an ‘anticipated and widespread failure in compliance’ will follow unless his warnings are heeded.

These include:

  • Half of letting agents canvassed in a recent poll said they had 60 or more properties on their books that needed all their electrical installations inspected and checked before April 1st.
  • The various regional and national lockdowns this year have slowed and complicated the work needed to upgrade properties to the required standard.
  • Many tenants are reluctant to allow tradespeople into their homes during the pandemic – particularly as electricians often need to spend up to four hours in a property to test, inspect and upgrade the electrical installations.
  • There is a shortage of qualified electricians available to do the work and current supply chain issues make sourcing the correct equipment difficult.

“On behalf of our members, I ask that you consider the benefits to tenants, landlords and letting agents of extending the requirements for existing tenancies in order to ensure that landlords and letting agents can meet their legal obligations,” the letter says.

Read more about electrical safety.
Read more about recent regulation changes.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords need more time to comply with new electrical safety regulations | LandlordZONE.

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Dec
14

Positive changes to HMRC’s Stamp Duty manuals

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For individual landlords and relatively new Partnerships, the changes to HMRC’s manuals could be very welcome news.

The 3% additional rate does not apply to residential properties if a property rental business has a commercial element, e.g. flats over a shop or any other commercial property.

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Dec
14

LATEST: Wannabe Mayor labels London landlords ‘cruel’ for rejecting pets

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A London mayoral candidate has vowed to introduce pet-friendly tenancy clauses if she wins the election next May and branded landlords ‘unfair and cruel’ to deny tenants pets.

Former businesswoman, the aptly named Farah London, promises to work with housing associations and local authorities to promote contracts that allow Londoners to keep their animals.

The independent candidate, whose other policies include making council tax exempt for tenants under 25, says it’s unfair and cruel to deny tenants their pets.

“If this pandemic has done one thing, it’s reinforced the benefits of keeping pets, with multiple studies showing the positive impact it has on our wellbeing,” she says.

Pet owners

Despite more than 2.7 million people renting in London, only 8.5% of advertised properties were available to pet owners in 2019.

The capital is also ranked lowest in the country for the percentage of people who own pets, which she attributes to unfair renting clauses.

Conservative MP Andrew Rosindell’s Dogs and Domestic Animals (Accommodation and Protection) Bill, which aims to give tenants the right to live with their pet, has already had a successful first reading and gets its second reading on 29th January.

London believes a change in policy will reduce the number of pets being abandoned and help stem the exodus of renters.

She adds that landlords often fail to recognise the benefits pets bring to tenants and points to research that shows pet-owning tenants stay twice as long, providing steady and reliable income.

There are currently 16 candidates in the capital’s election; Mayor Sadiq Khan hopes to be elected for a second term to the post he’s held since 2016.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Wannabe Mayor labels London landlords ‘cruel’ for rejecting pets | LandlordZONE.

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Dec
14

Ministers reject controversial petition calling for evictions after two weeks’ rent arrears

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The Government has moved to reassure landlords that it’s committed to introducing reforms to create a fairer and more effective rental market, but has rejected a petition’s call for quicker evictions.

Responding to an online petition signed by nearly 12,000 people that pushes for landlords to be able to instigate court proceedings when tenants have stopped paying rent for two weeks, it says: “We are grateful to landlords for their forbearance during this difficult time and are conscious of the financial pressure on landlords.”

It explains that it will reform the market “when parliamentary time allows”, adding: “This will be achieved by legislating to remove Section 21 of the Housing Act 1988, to provide tenants with more security – but also strengthening the grounds for eviction to ensure that landlords have confidence that they can gain possession when it is fair to do so.

“This includes working closely with the Ministry of Justice to explore how we can simplify court processes and make them work more efficiently.”

Petition

Leading property investment mentor and landlord, Ranjan Bhattacharya (main picture), launched the petition in early October, which now has 11,804 signatures.

He believes the current system is unfair to landlords who have to wait lengthy periods for repossession, while incentivising some to only rent their properties to tenants with higher than average income who are likely to care about getting a bad credit rating.

In its reply, the Government says that given the ongoing pressures of the pandemic, it believes its current approach strikes a fair balance between ensuring landlords can progress the most urgent cases and ongoing protections to tenants.

It says: “The Government has been clear that tenants remain liable for paying their rent.

“Where possible and appropriate, including cases of rent arrears, we encourage landlords and tenants to consider alternative dispute resolution such as mediation to reach a mutually acceptable agreement to resolve their dispute, without the matter needing to go to court.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Ministers reject controversial petition calling for evictions after two weeks’ rent arrears | LandlordZONE.

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Dec
14

LATEST: Record rent rises outside London but capital slumps by 4.4%

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Rents for new tenancies in the UK are increasing by an annual rate of 2.9% according the UK’s largest monthly survey of the private rental market.

Tenant referencing giant HomeLet says the average monthly rent for a tenancy is £974 across all property sizes, £27 more than a year ago.

It also says the million-plus tenancies that pass through its books each year also make it the most accurate.

The company says its index for November shows both the biggest rent increases it’s has ever recorded outside London, and the largest drops ever reported in the capital.

The index masks several regional rental price surges. These include increases of 8.6% in the South West, 7.3% in the East Midlands, 6.5% in Wales and 6.2% in the North West.

Rents are increasing in nine of the UK’s 12 regions except London and, when that is excluded, rents across the UK are increasing by 5.6% year-on-year.

Record drops

London landlords are enduring a particularly difficult period, the index shows.

Demand for rented in property in London has slumped since its key central office districts were closed down by Covid.

Agreed rents for new tenancies in the capital have reduced by 4.4% over the past 12 months, a record low. Only six of the 21 London boroughs say their average local rents increase, while Westminster’s reports a 16.1% decrease and undermining the Mayor of London’s calls for rent increases to be halted.

let alliance rents

“Whilst the trend is being driven by the increase in people working from home and tenants looking for properties with extra space, both inside and outside the property, we may also be seeing the continued impact of Brexit on central London,” says Andy Halstead (pictured), CEO of Homelet/Let Alliance.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Record rent rises outside London but capital slumps by 4.4% | LandlordZONE.

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