‘The landlord trap is never ending’

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Following the announcement of another national lockdown, founder of Landlord Action, Paul Shamplina, says there is no end in sight for desperate landlords and there must now be government support.

“This is an exceptionally difficult situation for everyone and as before it is vital that tenants who are genuinely impacted by the pandemic are protected from losing their home,” he says.

“Echoing calls from the NRLA, the Government should be following Scotland and Wales and providing access to a Tenant Hardship Loan Fund to prevent further possession action.

“However, it should not be a case of protecting tenants over landlords or vice versa, it should be about protecting people.  

“We now have a situation where some landlords have rent arrears cases which started in 2019 and they still do not have possession of their property, nor are they receiving any rent.  Some of these landlords have also lost jobs and are trying to cover mortgages.

“Landlords are desperate for some kind of timescale. The reality is that the ban on evictions will now continue throughout lockdown, and it could even be April or May before bailiffs are able to enforce evictions, depending on what kind of restrictions or tier systems are put in place in Spring. All the while, caseloads are increasing but old cases are not being cleared.  

“Since the property market remains open for people to move home and Courts are still operating, pre-Covid eviction cases would be able to proceed.”

Speaking to Nick Ferrari on LBC tomorrow morning, Shamplina will say that if something is not done soon to alleviate the mounting pressure on landlords, the market will experience a surge of illegal evictions landlords selling with tenants in situ.

Paul is discussing the impact of lockdown #3 on landlords and tenants with Ferrari tomorrow at 7.40am (6 January 2021).

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘The landlord trap is never ending’ | LandlordZONE.

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2021: Parliament’s packed year of legislation for landlords

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There was a time when governments tinkered occasionally at the edges of housing, but not at the moment.

2021 is shaping up to be another year during which Ministers and campaigning MPs will introduce major changes for the private rented sector as renting remains at the centre of the Johnson government’s ‘level up’ agenda.

Here is LandlordZONE’s rundown of the key regulatory and legislative moves being planned or due during 2021.

Pets Bill

A Bill aimed at banishing no-pet clauses for rented homes. It’s a Private Members Bill launched by MP Andrew Rosindell in October last year and is expected to make it through to Royal Assent later this year, with all-party support.

Read more

HMO regulation bill

MP Ian Levy is due a second reading of his HMO regulation Bill, full details of which are due to be published before February 5^th when it will have to get through its second reading in parliament.

It will bring in greater regulation including larger minimum room sizes, and stop HMOs being disguised or marketed as hostels, Airbnbs or other types of accommodation when they are not.

Hostels regulation bill

MP Steve McCabe’s Supported Accommodation Bill received it first reading in parliament last November and aims to raise the quality and safety of unregistered HMO hostels, which often purport to support vulnerable tenants when often their operators do not offer such services.

Owners and managers of these ‘hidden’ HMOs will be monitored more closely and be required to reveal their identities.

MP Kerry McCarthy has also tabled her version of this proposed legislation via her own Private Members bill. It’s called the Supported Housing (Regulation) Bill.

Read more.

Fire Safety Bill

This legislation, which is due to become law this year, is much more than a ‘fire safety’ bill. Instead, it ushers in a new regulatory system for multi-occupancy properties and in particular high-rise towers like Grenfell. The idea is to make it clear where the responsibility for managing safety risks lies throughout the design, construction and occupation of buildings ‘in scope’.

Read more

Renters Reform Bill - Section 21

Full details of this bill are yet to emerge, as the government is still sitting on its consultation. But it is expected to ban Section 21 ‘no fault’ evictions, introduce a new way of bringing tenancies to an end, and make renting more secure.

Read more

Electrical Safety regulations

These require landlords to complete electrical safety checks on their rented properties by 1^st April 2021 and then after that ever five years.

But ARLA has called for more time for landlords and lettings agents to comply as Covid has made finding qualified electricians more difficult, while some tenants have refused entry to tradespeople during the pandemic.

Read more.

Budget – CGT tax hike

Nothing is set in stone yet, but Rishi Sunak is widely expected to announce an overhaul of the capital gains tax system that will particularly hit landlords who pay higher rates of income tax.

Read more.

Carbon Monoxide alarms

The government wants to beef up the current carbon monoxide rules for rented properties and is consulting on its proposed measures until 11^th January. The new rules would cover more types of appliance and require both more frequent checks and maintenance.

Read more.

Mediation launch

Ministers have said a pilot national mediation service is to be launched this month which will require landlords to negotiate and reconcile with their tenants prior to going to court. A contract is expected to be awarded to a third-party supplier very soon.

Domestic Premises (Energy Performance Bill)

This is currently working its way through parliament and is expected to become law. It will require most rented properties in the UK to achieve an EPC band C or above by 2025.

Read more.

Evictions (Universal Credit Claimants) Bill

This is a Private Members bill proposed by MP Chris Stevens that would prevent landlords evicting tenants who are in receipt of Universal Credit and in rent arrears. It achieved its first reading last year but is not expected to become law.

Read more.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 2021: Parliament’s packed year of legislation for landlords | LandlordZONE.

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LATEST: Government relaxes requirement for Green Homes Grant installers to be registered or certified

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The English government has executed a U-turn on its Green Home Grants Scheme and relaxed the requirement for installers to be Trustmark registered or certified through the previous Green Deal PAS or MCS schemes, with immediate effect.

These certification conditions, although designed to keep cowboy operators out of the multi-billion pound grant scheme, meant many landlords have struggled to find approved installers and tradespeople to complete their projects.

As we have reported before, approved tradespeople have been almost impossible to find who have gaps in their schedules for additional work, and I some area many don’t bother to even reply to enquiries.

But it won’t be a complete free-for-all – any subcontracted work must still be carried out in accordance with the relevant PAS or MCS requirements in regard to subcontracting.

NRLA Deputy Director of Campaigns, Meera Chindooroy (pictured, below) says: “Yesterday’s announcement is good news for landlords. 

“We have had an incredible amount of interest from our members following the Green Homes Grant announcement.

“However, we heard from a large proportion of members who said they were having huge problems finding local installers with capacity to carry out the work and this was causing a backlog.

“We fed these case studies back to the Department for Business, Energy & Industrial Strategy to highlight our concerns.

“We welcome the news of these changes and encourage landlords to make use of this important initiative.”

The NRLA has long campaigned for further funding to be made available to help landlords to go above and beyond the legal minimum of energy efficiency measures set out by the Government for the PRS. 

With the grants, which were extended to March 2022, landlords will be able to claim up to £5,000 per rental property.

Read more about the installer changes.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Government relaxes requirement for Green Homes Grant installers to be registered or certified | LandlordZONE.

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Letting and Estate agents can still work during Lockdown part 3

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The government guidance regarding lockdown restrictions for the housing market says estate and letting agents and removals firms can continue to work

You can still move home. If you are looking to move, you can go to property viewings.

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Social distancing has given Open Banking referencing its big break, claims PRS firm

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Demand from letting agents and landlords for Open Banking in the referencing market has been given a boost by Covid and will continue to grow as young renters embrace new technology, according to The Lettings Hub.

The company is launching DIY tenant referencing this month – a fully automated web-based system, giving tenants and letting agents full visibility and management of the tenant referencing process.

Open banking is a secure way for tenants and guarantors to share their financial information directly from their bank; letting agents submit a form after a tenant applicant consents to using open banking to access their financial records such as credit and address history and ID checks.

Through a partnership with The Lettings Hub, estate agency giant Leaders Romans Group is rolling out more Open Banking services across all its branches to make tenant referencing easier for agents and says the technology is intuitive and easy to use, while tenants are happy to consent and the results are fast and accurate.

The Lettings Hub CEO Heidi Shackell (pictured) tells LandlordZONE that open banking has been particularly useful during the pandemic as it offers a faster, simpler way to provide proof of income and rent payments, especially if their referees were unavailable due to furlough.

She says younger renters are digital natives who increasingly expect services to be instantly available and delivered online, using the latest technology such as TouchID and Face Recognition.

“We believe these trends are set to continue into 2021 as we all become more accustomed to accessing services online,” she says.

“Most established tenant referencing providers now use Open Banking and some new providers have come to market using open banking alone.

“Many of these new entrants have struggled to gain traction however, as letting agents and landlords recognise that it’s not enough to just obtain open banking data to include in the report – it’s how you use that data that’s important.”

Read more about tenant referencing.
Read more about Open Banking.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Social distancing has given Open Banking referencing its big break, claims PRS firm | LandlordZONE.

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Oh Boris, not another lockdown! But what does it mean for landlords?

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The Prime Minister has tonight once more plunged England into a national lockdown, citing the alarming speed at which the new variant of Covid is spreading through the population, including a 20% rise in deaths over the past week alone.

“We need to do more together to bring this vaccine under control as our vaccines are rolled out,” he said.

The new lockdown is in almost every way identical to the previous one in the Spring of last year, but with one exception – landlords will be overjoyed to hear.

Home moves are to be allowed during the lockdown, the current government guidance says.

This includes: “You can still move home. People outside your household or support bubble should not help with moving home unless absolutely necessary. “Estate and letting agents and removals firms can continue to work.

“If you are looking to move, you can go to property viewings. Follow the national guidance on moving home safely, which includes advice on social distancing, letting fresh air in, and wearing a face covering.”

Johnson, who hinted that the lockdown it likely to last at least six weeks and no earlier than the February half term, said: “The weeks ahead will be the hardest yet but I really do believe that we’re entering the last phase of the struggle, because with ever jab that goes into our arms we are tilting odds against Covid and in favour of the British people.”

Johnson also hinted that Scotland, Wales and Northern Ireland are likely to follow suit and implement total lockdowns now.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Oh Boris, not another lockdown! But what does it mean for landlords? | LandlordZONE.

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Mother and sister of guru Samuel Leeds accuse his critics of ‘hateful propaganda’

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An unusual war of words has broken out between critics of self-styled property guru Samuel Leeds and members of his family.

Over the festive break subscribers to Andrew Burgess’s Facebook group The Truth About Samuel Leeds and Those That Use Similar Methods were astounded to see Leeds’ mother and sister join the group and its discussions, something none of the guru’s family has done before.

The Facebook group exists partly to track Leeds’ business activities, check the marketing claims for his property courses, question the value of their fees and discuss the pros and cons of both his and other gurus’ courses.

But last week Leeds’ mother and sister took to Facebook to accuse several members of ‘hate crimes’ against him, claiming that its members have been ‘spreading propaganda’ and were ‘vindictive and hateful’.

Leeds and his associates have tried hard in recent weeks and months to put pressure on Burgess to close down the page including a string of legal letters sent via solicitors Ellisons.

Blogger Georgie Taylor, who ran a series examining Leeds’ training courses, also received letters from Ellisons threatening legal action unless her videos were taken down. They remain live on YouTube and have been watched over 100,000 times.

Latest letters

The latest of Burgess’ letters arrived on 29^th December warning him of potential court action unless he deletes all his social accounts linked to groups naming Leeds, restating the claim that Burgess is conducting a campaign of harassment, and that the social media accounts are defamatory.

Burgess (pictured), both now and in previous correspondence with Ellisons, says he is providing a platform for discussions about Leeds and his training business, and claims Leeds is using the law firm to ‘bully him into deleting the content’. “I will always speak up,” he says,

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Mother and sister of guru Samuel Leeds accuse his critics of ‘hateful propaganda’ | LandlordZONE.

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Deposit issue – paid 2004?

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My tenant paid their cash deposit at the start of the contract in July 2004. This was never protected (only tenancies signed after April 2007 need the deposit to be protected), and the contract has remained the same – no amendments

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Countrywide accepts Connells’ rescue takeover bid…

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Struggling estate agency group Countrywide, owners of around 60 well-known high street brands including Bairstow Eves, Hampton’s International, Gascoigne-Pees and King & Chasemore, has agreed a £130m takeover offer from Connells, to combine two of Britain’s biggest estate agency companies.

Connells, a subsidiary of the Skipton building society, and Countrywide, currently the UK’s biggest stock market listed estate agency group, have agreed a deal involving a cash purchase by Connells and £395p per share.

The deal ends a five-year long period of decline for Countrywide during which time its shares fell in value by 98%. From a £750m valuation when it floated on the stock market in March 2013, the company’s Capx today stands at just £128.2m, leaving it struggling with a current net debt pile of around £171m.

Unlisted Connells’ boasts 581 branches and 25 brands including Allen & Harris, Bagshaws Residential, Fox & Sons, and Barnard Marcus in London. This compares with Countrywide’s 651 branches and 60 brands.

Despite a heroic three-year turnround plan launched in 2019, Countrywide had amassed just too much debt after an ambitious acquisition spree following its stock market debut in 2013.

This deal ends a protracted period of wrangling with rival approaches by LSL Property Services and UK private equity firm Alchemy, which had proposed a £90m cash injection into the Countrywide last October in return for a controlling stake.

The Connell’s takeover was voted through by a majority of Countrywide’s shareholders and represents a lifeline for the struggling business which had been closing branches to stem its rising losses. The deal is expected to go through by March 2021.

Connells has committed to repaying in full all of Countrywide’s lenders and to invest in the group’s technology and branch network in order to turn the business around. Connells has said there will be some job losses as the two companies head offices are merged, but it aims to retain the staff in the agencies’ branches.

Industry insiders are blaming the demise of Countrywide on its turbocharged high street branch acquisition spree in 2014 and 2015, when others in the industry were investing in online estate agency services instead. It was a strategy dubbed “completely wrong” as pursued by its former chief executive Alison Platt. She had sought to run the estate agent “like a retailer from a central base”, it was said, triggering an exodus of middle management.

David Livesey, Connells’ chief executive, said:

“We have the right management team, strategy and investment firepower to work with the talented teams at Countrywide and lead Countrywide into a bright future.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Countrywide accepts Connells’ rescue takeover bid… | LandlordZONE.

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Mortgage approvals at record high since 2007

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The Bank of England has released the latest figures for total UK mortgage approvals by lenders in November totalling 104,969. This is the highest number of mortgage approvals in one month since 2007 as can be seen in the historic data in the graph below.

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