EXCLUSIVE: Portsmouth landlords slam council’s ‘ridiculous’ rules and rogue prosecution claims

admin    Uncategorized     agents

Portsmouth Council is trumpeting its HMO licensing scheme’s success despite fining just seven landlords and agents last year.

Housing enforcement officers issued £38,500 in civil penalties to rogue landlords and agents caught breaking property housing laws – but £18,000 of this relates to one case.

Landlords Jaspal Singh Ojla and Raswinder Kaur Ojla were fined £6,000 for not licensing a 12-bedroom HMO in Plymouth Street, while letting agent Kings Estates was also fined £6,000.

While the landlord accepted the fine, the agency appealed and the court then decided the council had been too lenient, bumping its fine up to £12,000.

Martin Silman (pictured), chairman of Portsmouth & District Private Landlords Association, says cases of ill-informed or insufficiently engaged landlords are few and far between.

He tells LandlordZONE: “There aren’t any rogues out there, yet the council keeps inventing ridiculous rules to catch out landlords and make it look like they are improving things.

“By comparison, I have at least 20 members complaining about the unrealistic hurdles they are being asked to jump relating to testing of fire alarms and fire safety generally.”

As part of a £4m handout to around 100 local authorities in the UK last year, the city council was given £85,686 to compile a comprehensive private housing database.

Licensing plans

It also plans to consult this year on reintroducing additional licencing for HMOs.

The council insists that landlords and agents have a range of responsibilities and that it won’t tolerate them acting irresponsibly.

Councillor Darren Sanders (pictured), cabinet member for housing and preventing homelessness says: “Landlords and agents must take their responsibility seriously and ensure that they are following legislations and laws in place to keep people safe. We will continue to issue fines to those who continue to break the law.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Portsmouth landlords slam council’s ‘ridiculous’ rules and rogue prosecution claims | LandlordZONE.

View Full Article: EXCLUSIVE: Portsmouth landlords slam council’s ‘ridiculous’ rules and rogue prosecution claims

EXCLUSIVE: Renting grew last year despite pandemic problems

admin    Uncategorized     agents

The number of new tenancies for private rented properties in England and Wales increased during 2020 despite the restrictions and economic problems caused by Covid.

Research by deposit replacement scheme Ome crunched data from government-approved deposit protection scheme mydeposits and discovered that there was a year-on-year increase in the number of new tenancies logged with their schemes for private rented properties in England and Wales during 2020.

There were a total of 394,156 new tenancies recorded by mydeposits’ insurance and custodial schemes in England and Wales during 2020.

Covid pandemic

This reveals an increase of just under 2% on the previous year, with 386,6027 new tenancies being recorded in 2019.

This number is surprisingly similar considering the widespread ramifications and restructuring caused by the coronavirus pandemic.

But more in-depth quarterly analysis also revealed that in the first quarter of 2019 there were 87,446 new tenancies across mydeposits’ insurance and custodial schemes in England and Wales, compared with 82,410 in 2020; demonstrating a 5.8 percent drop during the initial stages of the pandemic.

The second quarter of 2019 saw a wider divergence, with 82,436 new tenancies in 2019 compared with 68,121 in the same period of 2020.

This decrease of over 20 per cent is perhaps due to the disruption which saw a national lockdown and halt to house moves from March to May 2020.

Pent-up

In the third quarter of 2019, mydeposits recorded 120,542 new tenancies, a number eclipsed in 2020 with 145,733 new tenancies recorded during the same period. This increase of over 20 per cent can be attributed to pent-up interest in moving home which was dampened during the first lockdown.

Finally, the fourth and final quarter of 2019 saw 95,603 new tenancies compared with 96,092 in 2020.

But the pandemic did cause disruption. For example, during March, April and May 2020, when the rental market was partially shut down, there were only 63,680 new tenancies protected with mydeposits. This is compared with 83,252 during the same period of 2019: demonstrating a 30 percent drop.

Commenting on these findings Matthew Hooker Co-Founder of Deposit Replacement Scheme Ome, said: “It is always interesting to collate data at the end of the calendar year to make comparisons and predictions.

“2020 has seen widespread changes in people’s working and spending habits, so it is surprising that the number of new rental tenancies remained relatively unchanged. However, closer inspection of the data demonstrates the fluctuation in numbers of new tenancies from month to month, as the rental market was effectively closed at the start of the pandemic from March to May 2020.

“While the total numbers may appear to be similar, it is clear that the pandemic has had an overall impact on renters. It is possible that this impact may be further felt over the coming weeks, months and year as coronavirus continues to impact our way of life.

“What is reassuring for landlords and tenants is that the private rented sector remains resolute, having weathered many a storm, its resilience and flexibility is reassuring heading into 2021.

“Although we are currently in the midst of a third national lockdown, there is not only a glimmer of hope on the horizon as a result of the COVID-19 vaccine programme, but it also seems that the Government has recognised the importance of keeping the private rented sector open, albeit in a COVID secure manner.“

For a more in depth look at Ome’s rental market predictions for 2021, check out the blog entitled ‘Ome’s 2021 predictions of the rental market.’

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Renting grew last year despite pandemic problems | LandlordZONE.

View Full Article: EXCLUSIVE: Renting grew last year despite pandemic problems

Landlord Covid losses: ‘Clock is ticking’ leading rent guarantor warns Ministers

admin    Uncategorized     agents

Landlords and letting agents could face months of further financial struggle unless the government props up the private rented sector.

Rental guarantor service Housing Hand believes increasingly desperate landlords are suffering during the evictions ban and that the situation is becoming unsustainable for those with mortgage payments, with some at risk of losing their investment properties or their homes.

According to research by LSE London and Trust for London, the number of private tenants in rent arrears in England could treble in the coming year and mean that as many as 700,000 tenants – and their landlords – are in financial difficulty.

Housing Hand says letting agents are also suffering. “Letting agents receive a percentage of a property’s rent as a management fee, but 15% of £0 is £0,” says group MD Jeremy Robinson.

Reduced income

“This means that there is a limit to how long agents, as well as landlords, can continue to operate with a reduced income.”

Client Money Protect reports that lettings agencies have been closing at a rate of 10 per week and Housing Hand believes that about 4% of all letting agencies closed their doors for good during 2020.

Robinson says the clock is ticking. “The intentions of the eviction ban to protect individual tenants are excellent, but the situation unfortunately doesn’t take all those involved in the rental transaction into account,” he says.

“The financial impact of tenants who can’t afford to pay on landlords is devastating.”

Terry Mason (pictured), group operations director, adds: “The government must stop using private landlords to house tenants who are unable or unwilling to pay their rent. These are difficult times for all concerned and a new solution is needed – one that supports all those involved in the rental sector.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord Covid losses: ‘Clock is ticking’ leading rent guarantor warns Ministers | LandlordZONE.

View Full Article: Landlord Covid losses: ‘Clock is ticking’ leading rent guarantor warns Ministers

Government will fund cost of replacing unsafe cladding for all leaseholders 6 storeys and over

admin    Uncategorized     agents

Hundreds of thousands of leaseholders will be protected from the cost of replacing unsafe cladding on their homes, as Housing Secretary Robert Jenrick unveiled a five-point plan which will provide reassurance to homeowners and bring confidence to the housing market.

The post Government will fund cost of replacing unsafe cladding for all leaseholders 6 storeys and over appeared first on Property118.

View Full Article: Government will fund cost of replacing unsafe cladding for all leaseholders 6 storeys and over

Problems dealing with a Roofing contractor?

admin    Uncategorized     agents

In August last year, my tenant sent me pictures of water coming into the front upstairs bedroom. There appeared to be a leak coming from the Bay.

Eventually, I managed to get a contractor to go and look

The post Problems dealing with a Roofing contractor? appeared first on Property118.

View Full Article: Problems dealing with a Roofing contractor?

BREAKING: Government to foot £5 billion tower cladding remediation costs bill

admin    Uncategorized     agents

Leaseholders in buildings over 18 metres or six storeys high are to have their remediation costs paid by the government where the freeholder or original contractor is unwilling or unable to do so.

The announcement was made by Housing Secretary Robert Jenrick (pictured) in a statement to parliament today, revealing that he was to make an ‘exceptional intervention’ on behalf of the government that leaseholders in high-rise towers will face no cost for remediation works.

But Jenrick said the decision to only cover towers over 18 metres was based on advice that the ‘overwhelming risk’ to life and limb came from dangerous cladding on these buildings, and that properties with cladding that are under 18 metres were unlikely to need remediation work and that the risks were ‘significantly lower’.

But towers and buildings of between four and six storeys high will not be covered by the new scheme, and property owners will instead receive long-term, low-interest loans to pay for work that will not exceed £50 a month cost – rather than grants.

New cash

Jenrick said the new cash, along with previous promises, brought the government’s total spend on the cladding scandal to £5 billion.

The housing minister said his decision was generous and fair to leaseholders but the Leasehold Knowledge Partnership (LKP) has labelled the decision, “a bitter disappointment for leaseholders everywhere”.

A spokesman adds: “It is shameful to treat leaseholders differently depending on an arbitrary factor like building height.

“Leaseholders in tens of thousands of buildings less than 18 metres have been told they will pay 100% of the costs of fixing others’ mistakes. Leaseholders in buildings above 18 metres may still face ruinous costs of fixing non-cladding defects.”

The announcement follows more than three years of uncertainty since the Grenfell Tower disaster that has left thousands of flats unsellable, unmortgageable and uninsurable due to flammable cladding.

Measures include a £3.4bn grant in addition to the existing £1.6bn building safety fund that leaseholders can apply to, which has been widely acknowledged as too small. Loans are expected to be offered for shorter buildings.

Sticking plaster

The LKP spokesman says the government’s solution is a sticking plaster that doesn’t cover all of the related fire safety defects, such as flammable insulation and missing fire breaks.

He adds: “The real culprits, the developers, are being let off paying anything. They get to keep all £30 billion they stand to gain from the taxpayer under the Help To Buy scheme.”

Around 274,000 flats are estimated to have dangerous cladding, according to the Association of Residential Managing Agents, although that figure is likely to reach into the millions when those living in lower rise structures where problems have also emerged are taken into account.

The extra government spend is to be funded partly through a tax on home builders, who will have to pay an additional levy when developing high-rise towers in the future, Jenrick has revealed, and an additional general tax on all large property developers kicking off next year.

Cladding scandal

Paul Afshar, campaigner for End Our Cladding Scandal (pictured): “The Government promised us no leaseholder would have to pay to make their homes safe. Today we feel betrayed. We were hoping for a solution to stop the sleepless nights and for millions living in buildings less than 18m there has been none.  Robert Jenrick needs to get a grip on the cladding crisis.

“Loans longer than mortgage terms for millions and not even enough to cover the cost of making the buildings that the government consider most high risk safe. Taxpayers and leaseholders are left to foot the bill for billions of pounds while the largest developers – who have made over £10 billion in profit since the Grenfell fire – are let off lightly. 

“Many people living in buildings under 18m will still have to bear the cost – for many above £30,000 – saddled with debt around their necks for thirty years. 

Where is the money for missing fire breaks, alarms or for cladding on buildings under 18m? Leaseholders are the victims of this crisis and have done nothing wrong to deserve this.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Government to foot £5 billion tower cladding remediation costs bill | LandlordZONE.

View Full Article: BREAKING: Government to foot £5 billion tower cladding remediation costs bill

Selling Leasehold and Retaining Freehold?

admin    Uncategorized     agents

Hello, I own a house that has been purposely converted into 2 flats. I rent both of the flats out currently. I have owned the property for c25 years

I am thinking of selling both the flats on long leasehold and retaining the freehold.

The post Selling Leasehold and Retaining Freehold? appeared first on Property118.

View Full Article: Selling Leasehold and Retaining Freehold?

Rents down 8.3% in London but up 2.3% outside the capital

admin    Uncategorized     agents

Hometrack have released their Q4 2020 Monthly Rental Market Report; click here

The report confirmed average rents across the UK excluding London rose by 1.4% in the three months to the end of December, taking the annual growth in rents to 2.3%.

The post Rents down 8.3% in London but up 2.3% outside the capital appeared first on Property118.

View Full Article: Rents down 8.3% in London but up 2.3% outside the capital