Are building contractors are milking the cladding scandal?

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While leaseholders contemplate bankruptcy, there is growing evidence that contractors are “milking” the situation to their own advantage, says Tom Entwistle.

The Grenfell Tower fire in June 2017 revealed a scandal of unbelievable proportions affecting thousands of high-rise blocks fitted with inflammable cladding as well as other building defects and inadequate fire safety equipment.

Leaseholders – many of them buy-to-let landlords – and occupiers of residential tower blocks throughout the UK, are now, in many cases, unable to obtain mortgages or sell, and they find themselves liable to pay many thousands of pounds for remedial works. #

In addition, until the work is done waking watches and upgrades to safety equipment are costing thousands, driving people to the edge of bankruptcy.

The Government has announced (10 February 2021) £5 billion investment in building safety to fully fund the cost of replacing unsafe cladding for all leaseholders in residential buildings, but this applies only to blocks of 18 metres (6 storeys) and over in England.

The funding does not apply to the thousands of affected blocks below that height, and it does not cover the cost of rectifying other building defects, fire safety equipment, and intermediate safety measures such as waking watches.

Spiralling costs

Spiralling costs amid fears that there is huge risk aversion on the part of building inspectors, and contractors taking advantage by requiring unnecessary work, are ripping off both the taxpayer and owners of affected flats, it is being claimed.

According to Martin Lees, writing for the Sunday Times, one award winning block, previously considered completely safe, which is below the government funded height, has had a thick oak beam (see below) balcony structure condemned, the replacement of which will require a major rebuilding of the block. Conversely, a neighbouring identical building has had a similar structure passed as safe following a similar survey.

As the block is 15 metres high there is no government funding for the cladding replacement and with the remedial work piled on top the cost is astronomical, forcing flat owners to contemplate bankruptcy.

The Labour Party is questioning the reliance on private contractors to decide on necessary remediation works, suggesting a that an independent government commissioning agency be set-up to employ a team of structural engineers to inspect all the affected tower blocks and decide what works are required, commission contractors, monitor progress and sign off for safety.

The Labour Party is questioning the government’s reliance on private contractors, a party spokesperson saying: “…spiralling costs, huge risk aversion, and firms taking advantage… to require expensive and potentially unnecessary works on an industrial scale, putting untold pressure on homeowners’ finances whilst milking the taxpayer”.

Speaking for one flat owner in the award winning block, her father has said: “There is no attempt to balance the very, very low risk of fire with the certainty of complete financial ruin” – for the flat homeowners.

Oak beam structures

Fire is the first concern when wood construction in a building mentioned, but experts argue this is not necessarily a bad thing. Yes, wood burns, but there’s a great deal of evidence to suggest that mass timber is actually safer in a fire than steel.

In a fire, a thick beam of wood will char on the outside, sealing the interior and protecting it from damage. Importantly, the beam will not distort like a steel beam will.

Wood burns slowly at approximately 0.02 inches/minute and the char created on the wood surface as it burns helps protect and insulate the unburnt wood below, particularly with a hard wood like oak, and maintains the structure. This gives time for the fire services to attend and deal with the fire.

The build-up of carbon on the wood’s surface limits the oxygen supply to the wood below and acts as an insulator. Therefore, the wood below the charred level will be cool and retain 85 to 90 per cent of its structural integrity.

Steel, on the other hand, begins to distort at a lower temperature and actually melts when it reaches around 1300 degrees C, so will likely fail catastrophically in a severe building fire.

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Want to sell your property portfolio while the market is sky high?

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My team and I specialise in selling landlord portfolios, and with the current market, industry experts and associations agree, now is that time to sell. Landlords need landlord experts that will go above and beyond to get you the highest price for your buy-to-lets

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Evictions Post Lockdown – A View on the Landscape from the Sheriff at Shergroup

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There can be no doubt by any property investor or landlord reading this article that the process of evicting tenants has changed as a direct result of this wretched pandemic.

Whatever the rights and wrongs of the term “eviction”

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Landlord blasts ‘total disconnect’ between local planning and EPC rules

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A landlord has called out the ‘total disconnect’ between local Conservation Area planning laws and the government’s desire to see buy-to-let properties achieve higher EPC bands, it has been reported.

Hampshire landlord Mike West has made the comments after a local council ordered him to remove triple-glazed UPV windows recently installed into a rental property he owns in Southsea near Portsmouth.

Instead the council wants him to replace them with wooden-style sash windows which are less environmentally friendly.

West says the council told him it would not tolerate any further erosion of the area’s heritage and has issued an enforcement notice against West.

The council was alerted to the UPV windows, which West says look identical to wooden ones unless inspected closely, after a neighbour reported them to Portsmouth City Council’s planning department.

Lost appeal

The landlord has said it will cost him £10,000 to replace the brand new windows on the four-floor property after he lost an appeal against the decision.

A city council spokesperson told the BBC that despite there being other UPVC windows on the street, because they were not alerted to them no action due to the amount of time that has passed.

But West says that in an era when climate change and the environment are so high on the agenda, councils should be focussing on that and not whether windows were ‘in keeping enough’ or not.

From 2030 onwards all rented properties will have to achieve a minimum EPC rating of C to be let out legally.

Read more about problems with EPCs.

Pic credit: Google Streetview/BBC

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Is it a good idea to self manage? TV star now helping landlords decide

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TV star Paul Shamplina of Channel 5 Nightmare Tenants, Slum Landlords fame has launched a course for buy-to-let landlords to help them to decide whether to self-manage or not.

The course, which is available online, is aimed at relatively inexperienced operators who may be unsure whether they have the track record and knowledge to meet the week-to-week regulatory and practical responsibilities of running a rental property in the UK.

Shamplina’s course does not cost thousands but instead is just £39 for one and a half hours of training.

This will include all slides presented during the course as well as an extensive explanation of the regulatory requirements landlords must meet, the pros and cons of using a letting agency, what ‘full service’ property management entails, and also the ‘head or heart’ choices landlords face.

“I have spent many years presenting seminars, tutorials and more recently online webinars about the buy-to-let business but one of the most common questions I’m asked is ‘should I self-manage or not’,” Shamplina tells LandlordZONE.

He says that there are obvious examples where landlords can’t self-manage UK properties such as living overseas or having demanding full-time jobs, but that there are considerations for those somewhere in the middle.

“The consequences of getting the administrative basics wrong can be both expensive and hugely time consuming particularly if you need to evict tenancy, and my course sets out to clarify what this means in practice too.”

Landlords can sign up for the course direct via Shamplina’s new website.

Insight

Leading property expert Kate Faulkner (pictured), who has reviewed the course, says: “A landlord or aspiring landlord, or indeed letting agent, will benefit greatly by watching your presentation.

“To be successful as a landlord requires insight on many levels: this programme not only flags the knowledge requirements, it gives great insight into the key thinking and the psychology behind the practice. 

“Paul has again presented a refreshingly frank and honest discussion leaning on many years of his own and other professionals.”

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Previous HMO usage disqualified on a technicality?

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One of our landlords has a licenced HMO located in a restrictive dwelling conversion ward. With an Article 4 Declaration in place, no new planning permission is being given for use as a C4 HMO. Not a problem except that this landlord converted the property into 8 unauthorised studio flats and has now been found out and told to dismantle the internal partitions.

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Will England follow suit? Scots Landlords welcome £10m rent arrears grant scheme

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Landlords have welcomed another cash boost for Scotland’s struggling tenants aimed at ensuring eviction is used a last resort.

A new £10 million grant fund to support those needing help to pay their rent as a direct result of Covid follows the launch of its £10 million tenant hardship loan fund last December, offering an interest free loan.

Last week, it extended its evictions ban to 31st March 2022, with the potential to be extended until 30th September 2022.

The Scottish Association of Landlords says its members have been working closely with tenants to reduce rents and write off arrears wherever possible and that the overwhelming majority of tenants and landlords are working together to sustain tenancies during the pandemic.

Chief executive John Blackwood (pictured) adds: “We welcome the Scottish Government emphasising that tenants have a responsibility to pay their rent and encourage landlords to work with their tenants and always treat eviction action as a last resort.”

Housing Secretary Shona Robison says the grant fund will be available later in the year and that it will work with stakeholders over the coming weeks to develop the details.

“We have been clear from the outset that eviction action must be an absolute last resort,” says Robinson.

“When landlords are flexible with their tenants, signposting them to the range of financial support that is available and coming to agreements to prevent and manage rent arrears, this sustains tenancies and keeps people in their homes, benefitting everyone.”

Ministers have promised to explore policies and financial support available for supporting sustainable tenancies and to work to improve their understanding of those evictions that do take place.

A new campaign raising awareness of tenants’ rights will launch by the end of the year.

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