Extension negotiated for deposit disputes after collapse of property firm

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mydeposits is contacting scores of tenants, landlords and agents explaining what action they need to take in the fall-out of the collapse of Ash Residential Property Management Limited (ARPM). 

It has negotiated an extension for tenants to notify it of a possible dispute so that deposits in its insured-based scheme will continue to be protected until 22nd December 2022. Kate Mutter-Bowen, head of tenancy deposit protection at mydeposits, tells LandlordZONE: “We’re working hard to go a bit further than we need to under the current deposit legislation – offering a 365-day extension to raise a dispute whereas we could have unprotected all deposits after 90 days.”

Tenants can lodge a claim for the return of their deposit (or the amount they would be entitled to at the end of their tenancy) so long as the tenancy has ended, and they have left the property, by 22nd December 2022.  Tenants will need to fill in a dispute notification form and return it to mydeposits by 21^st December 2021. Landlords will be asked to confirm that their tenant is due the deposit monies claimed for.  

Complicated situation

It’s a pretty complicated situation, and at least 8,000 tenancies are affected. mydeposits has explained to affected landlords that even though ARPM held deposits in its bank account, it is they who are ultimately responsible for the protection of tenancy deposits even if they have instructed an agent to protect the deposit on their behalf. They will need to ensure that either they or their letting agent protect the tenant’s deposit by 22nd December 2021 or risk a fine. 

Landlords and tenants can email auditriskandcompliance@mydeposits.co.uk so it can release a copy of the deposit protection certificate to them. Tenants might also need to provide a copy of the assured shorthold tenancy agreement while landlords might need to show a copy of the land registry office copy entries.

mydeposits is telling landlords that if they don’t agree that some or all of the deposit should be returned to their tenant, it needs evidence and will then make a decision about the amount due. It says: “Unfortunately, under the current deposit legislation, we do not reimburse the landlord. And if the tenant’s agreement has not ended by 22nd December 2022, the responsibility for the return of your deposit will fall to the landlord.” 

Landlords who haven’t received their rent from ARPM need to approach the Client Money Protect scheme and will be asked to provide rent statements proving that they were receiving funds which suddenly stopped. 

ARPM is registered with both Client Money Protect and mydeposits, but the set-up did not cover agents against fees owed by ARPM. As a result, agents will have to join the creditors’ queue or make a claim to ARPM’s PI insurance provider. mydeposits has also told letting agents that if they made good any deposits or rents themselves, then these cannot be claimed from the CMP scheme or from mydeposits as they are not considered under the legislation and regulations to be client money. Instead, they need to approach the Professional Indemnity Insurer, for ARPM, or contact the Liquidator – Neum Insolvency in Harrow.

Agents have already been sent letters, while tenants and landlords will be notified on 19^th October.

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Margate councillor wants to crack down on Airbnb holiday lets

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In the trendy district dubbed “Shoreditch-on-sea” councillors plan is to restrict short-term letting over fears the practice is “killing the community”

Margate in Kent has experienced and explosion of popularity and has been dubbed “Shoreditch on Sea” as a new trendy enclave on the south coast. The result has been a large increase in the number of properties devoted to short term Airbnb style lettings.

This trend in turn leads to a shortage of long-term lettings availability for locals who want to rent and work in the town.

Thanet District Council, which also covers the popular Broadstairs and Ramsgate, heard Councillor Rob Yates propose a motion to introduce letting limits and planning restrictions across the entire Thanet district.

Airbnb’s 90 day limit

Councillor Yates want to press the San Francisco based Airbnb online rentals company to do what it did in London and Manchester and impose a 90-day annual limit for all the home rentals in Thanet district advertised on it’s platform.

Councillors and residents living in these south coast resorts are concerned about the problems families face trying to find somewhere to live permanently, as with an estimated 300 plus homes devoted to short-lets, there are fewer longer lets available.

Mr Yates a Labour councillor for Margate is to bring up the issue at the next meeting of Thanet District Council. Mr Yates has said:

“This council notes with concern the ongoing issues raised by residents around the growth in Airbnbs in Thanet, especially in relation to the reduction in long term rentable properties.

“We welcome the majority of visitors to Thanet, who make an important contribution to our economy, but we hear residents’ concerns and wish to take action to control this serious issue which is damaging our community and damaging the reputation of Airbnb.

“This council recognises that it currently does not possess the powers to intervene and regulate these properties, and that this is a problem faced by many local authorities across the country.”

A recent survey of the properties available to rent in Margate found there were over 300 homes available for short term letting on Airbnb, while there were only 15 properties to rent advertised on the property website RightMove.

Rule changes to be considered

Government ministers have for some time been considering changing the planning rules to require all owners of second homes to get planning permission before they can rent them out as a holiday lets.

The proposal is included in planned changes to the planning legislation designed to provide respite for communities in strong tourist areas including Cornwall, the Lake District and the Cotswolds all of which have high concentrations of second homes.

However, as Communities Secretary Robert Jenrick has now been replace by Michael Gove in chair, in the recent Government re-shuffle, the proposed range of reforms to the planning rules is as yet unclear.

It has been estimated that there are around half a million people who have at least one second home in the UK, so to introduce such a rule change, it is feared, could deter genuine buy-to-let investors who are providing much needed long-term residential lettings.

Councillor Yates is also recommending introducing a requirement for a change-of-use planning application to be made prior to anyone operating a short-term let.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Margate councillor wants to crack down on Airbnb holiday lets | LandlordZONE.

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Related Party or at Arms Length Transaction?

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I own three BTL properties on three separate independent developments that have their own Right to Manage Companies in place. I am an active director on each of the companies, and a common Property Management Company is independently managing all three developments.

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No action on cladding will impact value of high rise blocks ‘for years to come’ – claim

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The Society of Licensed Conveyancers has accused the government of not taking the cladding issue seriously enough and warns that its inaction will cause a lack of available homes in the future.

The property lawyers’ body wants the government to pay for all remedial costs to protect those owners and leaseholders of high-rise apartments affected by safety issues following the Grenfell tragedy. John Clay, a board member and past chairman, has written an open letter to Housing Secretary Michael Gove asking it to step in and then claim money back from the developers who are responsible for the current mess. 

Insufficient help

It points to a recent survey that showed many leaseholders who cannot afford repairs or are unable to sell their flats are suffering from severe depression and that 23% are seriously contemplating suicide. “When so much of the current conversation is about levelling up, this cannot be right,” says Clay. “If insufficient help is given, probably hundreds of thousands of leaseholders will have to forfeit their flats to their freeholder or their lender.” 

He explains that prosecution by leaseholders against developers is unrealistic as cases would be complex, involving huge legal costs, and warns that if the government does not step in, the value of all flats in high rise blocks could be blighted for years to come. The situation is already creating a problem in the housing market because most of the properties involved are first time buyer occupied. “As these are currently unsaleable there will be a shortfall of entry properties for first time buyers, which will cause prices of other flats in low rise properties to increase, making it even harder to get onto the property ladder,” says Clay. 

“It is a very complicated situation which we would suggest your department has not previously taken seriously enough.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – No action on cladding will impact value of high rise blocks ‘for years to come’ – claim | LandlordZONE.

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Release equity to keep the energy bills at bay this winter

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The news headlines in the last few weeks have been filled with the concerning prospect of energy bills increasing. With the increase, how will you be trying to limit energy usage for you and your tenants? Switching off the heating?

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Lost DIY Declaration of Trust – effective date and CGT liability?

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Hi, I purchased a property with the help of my father in 2014 or so, I had only contributed a small percentage to the purchase price. About a year later, I gave up control of the property (allowed him to rent it out

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