London council fines two landlords £135,000 over dangerous and ‘worst ever seen’ properties

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Two rogue Waltham Forest landlords have been handed huge fines for failing to maintain and licence their properties.

Mohammed Bhatti, aka Mohammed Muqeem Amin, 70, the sole director of Property Ladder London, was fined £75,000 after he admitted 12 charges in relation to breaches of management regulations at houses on High Road in Leyton, as well as failing to license one top-floor flat in the street.

Thames Magistrates Court (pictured) heard that council officers discovered serious problems including a lack of fire alarms, dangerous sockets and blocked drains.

Showers and sinks were cracked and filthy, and access to the top-floor flat was only possible via a dangerous staircase.

Inspectors described it as one of the worst they had ever seen. Bhatti was also ordered to pay £6,949 in prosecution costs with a £190 victim surcharge, within six months.

Failure to licence

At a separate hearing, Balmick Seegolam, 61, of St Georges Road in Leyton, admitted three charges in relation to failing to license HMOs in Canterbury Road and North Birkbeck Road.

After being refused planning permission for an extension at the Canterbury Road address, Seegolam applied for a licence and revealed he already had tenants living there despite it being, in his own words, “small and not in great condition”.

After blaming a previous management agent for the North Birkbeck Road HMOs not being correctly licensed, he suggested tenants were at fault for dangerously unhygienic conditions and blocked hallways that could have posed a risk to life in an emergency.

He was fined £60,000 with costs of £3,366 and a victim surcharge of £190 to be paid within three months.

The judge told him: “You fell well below the expected standard of a reasonable landlord. This is your full-time job – it is therefore imperative that you should be fully aware of the regulations and the licensing regime that you operate under.”

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Brand new series of ‘Nightmare Tenants Slum Landlords’ starts this week

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The long-awaited new series of Channel 5’s ‘Nightmare Tenants Slum Landlords’ launches on Wednesday 17 February at 8pm.  This 10-part series, filmed prior to COVID-19 restrictions, follows the frontline work of letting agents, eviction specialists and lawyers helping landlords chase rent arrears and get their properties back;

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Major build-to-rent developer prepares £500m expansion into London

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Property developer Avanton has unveiled ambitious plans to build 5,000 flats for rent across London in the next two years as part of its big expansion plans for build-to-rent property.

It has put aside a £500 million land fund to target locations including Islington, Southwark, Wandsworth and Wimbledon as part of its expansion into the capital’s lucrative build-to-rent sector. The company already has six sites in London including the Gas Works of the Old Kent Road (pictured, above)

Already an established operator in the residential build-to-sell market, it says there’s a significant lack of high quality, purpose-built, rental stock in relation to demand.

Working alone as well as through joint venture partnerships, the developer plans to spend between £20 million and £100 million per site, building up to 1,000 units on each.

Avanton has already started lining up a large portfolio of build-to-rent projects.

In Richmond, along with partner ICG, it’s working on a £250 million urban-village development on the Homebase site off Manor Road for 453 high quality apartments complete with a pocket-park, retail, community and offices.

On Old Kent Road in Southwark, the firm has consent for the £730 million Ruby Triangle project for 1,414 new homes, of which 50% will be build-to-rent, while it also has a third site earmarked in the London borough of Brent for 500 build-to-rent units.

Sales & marketing director David Ronson (pictured) says: “We are seeking to expand our build-to-rent, mixed tenure and private sale portfolios because, despite the obvious challenges, the property market has been extremely resilient and recovered rapidly last year after the lockdown.

“This year the market sentiment has been cautiously upbeat as the UK has taken a global lead in the vaccine rollout and we see great opportunity at this moment in the property cycle.” 

Read more about build to rent.

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Young investors take up the mantle as buy-to-let landlords continue to abandon ship…

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The stamp duty holiday announced by Chancellor Rishi Sunak last July has enabled a new generation of first-time investors to move in on a property sector where rental supply was declining.

The diminishing availability of rental accommodation, which has accelerated rent levels outside of London to a five-year high, is being balanced by a surge in demand for buy-to-lets from new landlords.

The tax break, which ends on the 31^st of March, unless it is extended for existing progressing sales, as is rumoured, has given a temporary boost to buy-to-let sales. It has, according to The Daily Telegraph, “cleared a financial roadblock” for small-scale landlords, enabling them to take a record market share.

Estate agents Hamptons International’s figures show that around 50pc of new landlord purchases were completed with a mortgage over H2 of 2020. This figure, says Hamptons, is the highest market share recorded since its buy-to-let records began in 2009.

Traditionally, the more mature landlord investor base is dominated by cash buyers, often with an inheritance windfall, or simply because they can’t find similar returns in alternative cash investments. This stalwart group’s market share fell from 58pc in 2019 to around 50pc in the last half of 2020, a drop of 12% since 2017.

Diminishing profits due to recent tax reforms, and an increasing amount of regulatory red-tape, have resulted is a steady divestment by this traditional landlord base. But the influx of new younger landlords, small-scale mortgage dependent first-time investors, many dipping their toes in the market for the first time, is bolstering supply again.

Aneisha Beveridge, of Hamptons, told the The Daily Telegraph:

“The stamp duty holiday has tempted more small and first-time landlords back into buy-to-let, reversing a shift towards portfolio investors.

The swinging tax and regulatory changes first introduced by Chancellor George Osborne in 2016 , including a phased-in tapering of mortgage interest relief, abolition of the wear and tear allowance and a three percent stamp duty surcharge, has encouraged many established landlords to think again, to either sell-up altogether or to sell off some of their portfolios.

“But record low interest rates on cash in the bank combined with the lure of a stamp duty holiday has enticed a new generation of investor, many of whom had no previous landlord experience,” Ms Beveridge says.

According to her, there are now 250,000 fewer rental homes in England than there were in 2017 and the proportion of landlord cash purchases fell in 10 out of 11 regions in Britain between 2019 and 2020.

In many regions in the North, where house prices are lower, it means that there is no benefit for a first-time buy-to-let investor from the stamp duty holiday. Here, prices remain within the nil-rate band. It is in these regions that cash buying landlords still predominate.

Currently, until 31^st March this year, completions on property sales, will save up to £15,000 as the nil-rate band was extended in England and Northern Ireland from £125,000 to £500,000. The tax saving is across the board in residential purchases, except that the 3 per cent surcharge still applies for all second homes and buy-to-lets.

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Compensation for commercial tenant of more than 14 years?

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My tenant has one year remaining of a five year Lease on my commercial premises which he has occupied on a succession of 5-year Leases for 25 years. He owns and operates a Limited Company (registered at his home) but has always signed the Leases as a private individual.

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Rishi Sunak considering 6 week extension to Stamp Duty holiday?

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The Daily Telegraph has reported that the Chancellor is under pressure to avoid the Stamp Duty cliff edge on the 31st of March and is considering a 6 weeks extension to the 12th May to allow completion to take place delayed by conveyancing backlogs.

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New Nightmare Tenants Slum Landlords series to start on Wednesday

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Landlords who have been waiting to get a fresh fix of their favourite property TV programme Nightmare Tenants Slum Landlords need delay no longer.

A new ten-part series of the Channel 5 show is to begin on Wednesday 17^th at 8pm.

Filmed prior to the latest Covid restrictions, it follows lettings agents, evictions specialists and lawyers working at the often shocking front line of the private rental market.

Viewings should be ready for more on-screen clashes as landlords chase rent arrears and try to get their properties back; as well as council housing enforcement officers clamping down on slum landlords taking advantage of vulnerable tenants. 

The first episode features a 13-hour siege by squatters, a guarantor stitched up by his own son, and a landlord who calls on the help of eviction expert Paul Shamplina from Landlord Action because his tenant owes £16,000 rent arrears.  

Difficult eviction

That landlord is Allen Summerskill who bought his flat in Croydon over 15 years ago as a buy-to-let investment.
Just four months into its most recent tenancy, his tenant stopped paying rent. 

Despite serving a section 8 notice, the tenant refused to move out, leaving Allen with no option but to call in the bailiffs.

The tenant then tried to stall the situation by going back to court on the day of the eviction, but the judge granted in Allen’s favour. With the help of Landlord Action’s Paul Shamplina, Allen finally gains possession of the property.

 “I’ve been a landlord for quite some time and on this occasion, I went against my better judgement,” he says.

Expensive mistake

“The tenant said she did not get on with her previous landlord and I should have pursued for a reference but didn’t – it was a mistake.

“Had Paul not suggested we go back to the court that day, the eviction may not have gone ahead when it did.

“Shortly after, the pandemic hit, and I would now be faced with a further 18 months without rent and without my property. With the current debt and damage to the property, I’m already out of pocket by £20,000.”

Shamplina (main pic) says: “I’m so pleased that the latest series is finally airing because the stories we have featured will really resonate with a lot of landlords – there are some shocking cases.”

Watch Paul present his favourite highlights from previous series of the show.

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BREAKING: Housing minister announces ANOTHER six-week bailiff evictions ban

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The ongoing ban on bailiff evictions due to end on 21^st February is to be extended for a further six weeks until 31^st March, the government has announced today.

This confirms a government decision made on this ‘in principle’ last week as LandlordZONE reported, which has now been confirmed.

This means once more bailiffs will be prevented from moving to evict tenants whose landlords have secured possession orders under the current narrow terms.

These are supposed to only include extreme rent arrears, trespass, anti-social behaviour and victims of domestic violence but, due to inconsistent approach within the court system, also includes some Section 21 ‘no fault’ notice evictions.

Landlords are currently able to serve Section 21 and Section 8 notices and gain possession orders, once they have overcome the considerable process hoops they are required to jump through.

These include waiting six months before serving a notice in the first place, and ‘extreme rent arrears’ exemption being limited to six months’ arrears or more.

Robert Jenrick (pictured) MP says: “We have taken unprecedented action to support renters during the pandemic including introducing a six-month notice period and financial support to help those struggling to pay their rent.

“By extending the ban on the enforcement of evictions by bailiffs, in all but the most serious cases, we are ensuring renters remain protected during this difficult time.

“Our measures strike the right balance between protecting tenants and enabling landlords to exercise their right to justice.”

Get a grip

“Today’s announcement does nothing to help over 800,000 private renters who have built rent arrears since lockdown measures started last year,” says Ben Beadle of the NRLA.

“It means debts will continue to mount to the point where they have no hope of paying them off. It will lead eventually to them having to leave their home and face serious damage to their credit scores.

“The Government needs to get a grip and do something about the debt crisis renters and landlords are now facing.

“A package of hardship loans and grants is needed as a matter of urgency. To expect landlords and tenants simply to muddle through without further support is a strategy that has passed its sell by date.”

No surprise

Paul Shamplina of Landlord Action (pictured) says: “This further extension comes as no surprise.

“We still do not know if lockdown is going to be extended, but I’ve been saying for the past few weeks that I can’t see evictions restarting until April or May. This is on top of the six months landlords must wait before serving a notice.

“Unfortunately, we aren’t seeing the exemption cases for extreme rental arrears being dealt with by the bailiffs. Rent arrears are racking up and landlords’ desperation continues.”

Evictions crisis

Polly Neate, chief executive of Shelter (pictured), says: “Thousands of renters who’ve been living in fear of the bailiffs’ knock at the door, have today been given a few more weeks in their home.

“This short extension to the bailiff ban may keep people safe for now, but it’s not an answer to the evictions crisis.

“Renters are still are being served with eviction notices every day, and our helpline is flooded with calls from those desperately worried about paying their rent.

“Before the ban is lifted, the government must give renters a real way out of debt. That means a lifeline of emergency grants to help pay off ‘Covid-arrears’ so people can avoid the terrifying risk of eviction altogether.”

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BREAKING: Government to reveal ANOTHER six-week evictions ban today

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The ongoing ban on bailiff evictions due to end on 21^st February is to be extended for a further six weeks until 31^st March, the government is widely expected to announce today.

This confirms a government decision made on this ‘in principle’ last week as LandlordZONE reported, which has now been confirmed.

This means once more bailiffs will be prevented from moving to evict tenants whose landlords have secured possession orders under the current narrow terms.

These are supposed to only include extreme rent arrears, trespass, anti-social behaviour and victims of domestic violence but, due to inconsistent approach within the court system, also includes some Section 21 ‘no fault’ notice evictions.

Landlords are currently able to serve Section 21 and Section 8 notices and gain possession orders, once they have overcome the considerable process hoops they are required to jump through.

These include waiting six months before serving a notice in the first place, and ‘extreme rent arrears’ exemption being limited to six months’ arrears or more.

Get a grip

“Today’s announcement does nothing to help over 800,000 private renters who have built rent arrears since lockdown measures started last year,” says Ben Beadle of the NRLA.

“It means debts will continue to mount to the point where they have no hope of paying them off. It will lead eventually to them having to leave their home and face serious damage to their credit scores.

“The Government needs to get a grip and do something about the debt crisis renters and landlords are now facing.

“A package of hardship loans and grants is needed as a matter of urgency. To expect landlords and tenants simply to muddle through without further support is a strategy that has passed its sell by date.”

No surprise

Paul Shamplina of Landlord Action (pictured) says: “This further extension comes as no surprise.

“We still do not know if lockdown is going to be extended, but I’ve been saying for the past few weeks that I can’t see evictions restarting until April or May. This is on top of the six months landlords must wait before serving a notice.

“Unfortunately, we aren’t seeing the exemption cases for extreme rental arrears being dealt with by the bailiffs. Rent arrears are racking up and landlords’ desperation continues.”

Evictions crisis

Polly Neate, chief executive of Shelter (pictured), says: “Thousands of renters who’ve been living in fear of the bailiffs’ knock at the door, have today been given a few more weeks in their home.

“This short extension to the bailiff ban may keep people safe for now, but it’s not an answer to the evictions crisis.

“Renters are still are being served with eviction notices every day, and our helpline is flooded with calls from those desperately worried about paying their rent.

“Before the ban is lifted, the government must give renters a real way out of debt. That means a lifeline of emergency grants to help pay off ‘Covid-arrears’ so people can avoid the terrifying risk of eviction altogether.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Government to reveal ANOTHER six-week evictions ban today | LandlordZONE.

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Letting agency and landlords club together to fund rent discount for students

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An unusual scheme in Leciester has been organised by a lettings firm in the city to use its projected company profits for this year, along with donations of £5,000 from its landlords, to help out struggling students.

Sulets, which has its sole branch within the city’s DeMontfort University campus, says it is doing everything it can to help out its student tenants.

In late January the agency revealed that its tenants were to receive an undisclosed but substantial rent discount equivalent to four weeks’ rent, as many were no longer living in the city and studying virtually.

Impact on students

“We are very aware of the impact that the current lockdown is having on students,” says its CEO Irving Hill.

“As an educational charity, with a clear mission to do the best for students, we are committed to helping where we can at this time, as we did in 2020.”

These discount have been financed from Sulets’ own project surplus for the fiscal year.

But Hill and his colleagues also reached out to their Premium Service landlords and many of these have now offered to chip into the fund as well, so far adding £5,000 to the pot.

“This is welcome news for all stakeholders and promotes landlords in a more positive light, particularly with endless negative press regarding landlords over the years,” says Hill (pictured).

“Sulets would like to thank all landlords who have been in touch and donated to the discount scheme. It goes hand in hand with the Sulets mission and values to raise student housing standards while being fair and transparent.”

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