‘Pioneering’ council slaps fines on rogue landlords totalling £317,000

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Rogue landlords in Barking and Dagenham had to stump up more than £317,000 in fines last year.

The council, which was the first in the UK to mandate all its PRS properties to be licensed, issued 117 civil penalty notices totalling £271,310 and 89 enforcement notices totalling over £46,000.

It also investigated 99 cases of illegal eviction and handled 122 cases of landlord harassment in the last 12 months – a significant rise on the year before the pandemic.

In one instance, council enforcement officers received a tip off about an unlicensed overcrowded property in Mayfair Avenue, where 13 people were found living in a four-bedroom house.

Brothel

Fourteen joint operations were also carried out with the Met Police, including one where the unlicensed HMO in Reede Road was being used as a brothel. The landlord is now awaiting a court hearing.

Councillor Margaret Mullane (pictured), cabinet member for enforcement and community safety, says most landlords in the borough understand their responsibilities – both legally and morally – to their tenants.

However, she adds: “There are unfortunately some unsavoury landlords who choose to flout the rules, and that is where we will use all the legal powers available to us to take action to improve living conditions for our residents.”

Since the borough-wide scheme launched in 2019 there have been about 15,000 applications for licences, although it is thought a quarter of all housing in the borough is private rented accommodation.

Read more about selective licensing.

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Making the move from DIY

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A Belvoir landlord explains why the pandemic prompted him to move his properties to fully managed.

“I have five rental properties, all based in the Basingstoke area,” says Ahmed Bashir*. “I used to manage them all myself, but now they are all fully managed by Belvoir Basingstoke. I made this decision mainly because of all the regulations and documentation that landlords now have to deal with. There are so many issues, and certificates that need to be obtained, plus checks that have to be made for every tenancy, and it’s important to be really careful, as one little mistake could result in all kinds of problems.

“I have known Mike Jones, the owner of Belvoir Basingstoke for about ten years and during this time he has always been very helpful, and very straight with me, which I appreciate. I like the fact that Belvoir Basingstoke has the back-up of Belvoir’s Central Office so that Mike and his team are always aware of any changes to laws and regulation as soon as they occur and can deal with them for me. The team at Belvoir Basingstoke have been doing their job for a very long time, and I am confident that they know what they are doing. I also appreciate the fact that I can always get hold of someone to chat with if needed, and I know that they will be able to answer my questions and help me out.

“I am a member of the NRLA and I’m very aware of how thorough you have to be with everything related to property management and tenant safety. I think this was really brought home to me when the Covid-19 pandemic appeared, and the country went into lockdown. I became even more aware of how important it was to know exactly what to do to keep everyone safe. Two of my overseas tenants ended their tenancies to return home, and I decided to make those last two properties fully managed. In my opinion it was money well spent, as Mike and his team were able to conduct the necessary Covid-safe viewings, using specialist software for remote viewings and referencing etc. Gone are the days when you could advertise a property on social media and do your own inventories and referencing – now you need to get things done professionally by an agent who knows exactly what they are doing.

“Even when every care is taken, it is inevitable that there are likely to be some problems with a property at some point. People may become ill, split up with their partner, or lose their job etc. You have to recognise that these things happen and are all part of life, but it’s really helpful to know that Belvoir Basingstoke is able to liaise between me and the tenant when any problems occur. It’s reassuring to know that they are able to speak to tenants in a professional manner, and between us we are able to work out solutions, and a way forward that is best for everyone.

“Throughout any tenancy someone from Belvoir Basingstoke will visit the property every six months and then send me a full report to explain if there are issues and if any maintenance needs doing. If necessary, I can talk to the team about this and I’m always given the option to decide whether I want to make any of the repairs myself or whether I want them to get them done by a professional contractor. I’m very happy with this arrangement, knowing that I have peace of mind and my property is being well taken care of.

“Finally, I had to accept that I’m getting older! Whereas in years gone by, I might have been happy to do plumbing jobs etc, it’s now definitely more of a challenge, and it’s so much easier for me to ask Belvoir Basingstoke to get the work done for me. I have absolutely no regrets about having all of my properties fully managed – I think it’s money well spent, as Belvoir does so much work on my behalf.”

To find your local Belvoir office visit: www.belvoir.co.uk

Ahmed Bashir* – name has been changed at landlord’s request.

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June annual house price growth 13.4%

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The June Nationwide House price index is indicating year-on-year house price growth of 13.4%, the highest level of house price inflation since November 2004.

Monthly inflation is 0.7% showing a slight easing from May’s figure of 1.7% and the average price of a house in the UK now stands at £245,432.

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A Quiz For Property Traders

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This quiz will run until the end of July 2021. We will then send a bottle of champagne to the person whose comment we like the most.

So, here’s the scenario.

A property trader buys a house for £200,000 with cash only and immediately flips it achieving a sale price of £300,000.

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Ambitious landlords project trailblazes new model for social housing in PRS

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One of the largest efforts to entice private rented sector landlords into the social housing sector is taking place in Scotland, an ambitious initiative that is being watched across the UK to see if it can succeed.

Housing charity Aberdeen Cyrenians has launched letting agency Settled: Homes for All in a bid to repurpose the more than 2,000 properties in Aberdeen that have been empty for more than a year and to house more than 250 people currently in temporary accommodation.

The Crisis and Scottish government-backed initiative follows its Housing First pathfinder programme which provides ordinary, settled housing as a first response for people whose homelessness is made harder by experiences such as trauma, addiction and mental ill-health.

It acknowledges that meeting this fundamental need should come first, rather than supporting someone until they’re ‘housing-ready’. 

The latest initiative aims to give landlords proactive support to help them find suitable tenants, often for properties that have been sitting empty.

They’ll be supported to ensure housing standards are met and their tenants will receive flexible support for as long as it takes to make long-term tenancy a success. Landlords will also have the same guarantees as a regular let.

Mike Burns, CEO of Aberdeen Cyrenians (pictured), says by reducing risks for landlords, it increases available properties for tenants. He adds that the Housing First pathfinder in Aberdeen and Aberdeenshire has consistently been the most successful in Scotland, with tenancy sustainment rates of 93%.

“Next month we hope to hit 100 long-term tenancies being secured. The model has shown just how important it is to put housing needs and intensive support together to provide a secure base for recovery.”

Read more about social housing in the PRS.

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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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