Landlord wins compensation after challenging agency’s ‘unfair’ lettings contract

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A landlord who complained after being told she could not exit a property management contract with a leading lettings agency until the tenant left has won her case.

The Property Ombudsman (TPO) has awarded Karen Markham £408 in compensations after she sought redress over her run-in with the Wokingham, Berkshire branch of Romans.

Her saga began three years ago when she bought a buy-to-let property via the agency, subsequently asking it to find a tenant and manage it as well.

Markham subsequently found out that her contract with Romans stipulated that, if she wanted to serve the agency notice, this could only be done after the incumbent tenant left.

TPO has ruled that the terms of business and communications did not clearly outline the circumstances under which the instruction could be terminated.

The ombudsman said it was “not satisfied that this liability for continuous fees, without the ability to serve notice, was specifically drawn to the Markham’s attention.

Agency criticised

“The fees in the contract are not expressed in clearly labelled sections. I have also not found that the contemporaneous system notes are sufficient to conclude that the indefinite nature of the rent collection service was explained sufficiently.”

The Ombudsman also criticised aspects of Romans’ communication with Markham.

Richard O’Neill, MD of Lettings at Romans, told Wokingham Today that: “We have worked closely with trading standards to review our documentation and have actioned their suggestions to improve clarity and avoid similar issues in the future.

“A review of this kind is strictly confidential between Romans and the complainant. Therefore, we will not be publishing the results publicly, however we have now changed our terms and conditions and we do not enforce old policies.”

Guide: How to choose a letting agency.

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Tough new measures to enforce remove of unsafe cladding

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Tough new measures that will force industry to pay to remove cladding and protect leaseholders from exorbitant costs have been unveiled by Secretary of State for Levelling Up Michael Gove.

For those in industry not doing the right thing

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LATEST: Bristol to seek rent control powers to limit ‘unaffordable’ PRS

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Bristol’s mayor Marvin Rees has pledged to fulfil his manifesto promise of making the city the first to pilot rent controls.

He has teamed up with the Bristol Fair Renting Campaign – supported by Shelter – and community union ACORN to host an online renting summit on 2nd March to get renters’ views on rent controls as well as the council’s enforcement powers.

“I made a manifesto commitment to campaign for the power to introduce rent controls to make Bristol an affordable living city, and we are calling on the government to give us the power to regulate rents,” says Rees.

“Piloting rent control in Bristol will allow us to take a step towards tackling our local renting crisis and will help us develop learnings that can inform wider positive change for the rest of the city.”

Bristol’s housing chief Tom Renhard (pictured) was previously a leading member of campaigning group ACORN when it forced the council to toughen up demands on developers to build affordable homes, and roll out landlord licensing schemes.

He says Bristol rents are ‘out of control’ and believes the renting system is not fair, stable or safe.

“Unaffordable private rents are deepening inequality, as people on lower incomes are at growing risk of homelessness and many are being forced out of the city,” adds Renhard.

“It’s time for a reset in the relationship and for the national government to give us the powers we need locally to properly regulate privately rented housing.”

In Bristol, where demand vastly exceeds supply, the average price of a rented property is now at least £1,000 a month in most parts of the city, it is reported.

However, the National Residential Landlords Association insists rent controls don’t work and points to a lack of new social housing and flat real wage growth across cities in Europe and the USA where the presence of rent controls has done nothing to address affordability.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Bristol to seek rent control powers to limit ‘unaffordable’ PRS | LandlordZONE.

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High Court Ruling on adding extra Floors

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Thinking of adding extra floors onto your property? Airspace Development may now be a little harder as a result of last week’s High Court Ruling curtailing development opportunities.

Last year, new Permitted Development rights were introduced to great fanfare as the biggest shake-up to the planning system.

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NEW: Landlords to follow new discrimination Code for Right to Rent checks

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Landlords have been given new advice on how to complete Right to Rent checks without discriminating against tenants.

The Home Office initiative is, to a greater extent, a response to the political and legal pressure from a Court of Appeal win by the Joint Council for the Welfare of Immigrants, which proved successfully that the scheme had led to discrimination.

The new code of practice, which is still going through a consultative process after being promised last year, applies to residential tenancy agreements starting on 6th April as well as where a repeat check on an existing tenant needs to be carried out after this time, to retain a statutory excuse.

It outlines how landlords should not make assumptions about a person’s right to rent, or their immigration status based on their colour, nationality, ethnic or national origins, accent or length of time they have been resident in the UK.

They must not simply check the status of those who they think appear or are likely to be migrants, treat those with a time-limited right to rent more or less favourably, treat those who have access to the Home Office online checking service or who provide a manual document listed as an acceptable document more or less favourably.

Direct discrimination

As well as direct discrimination, the code highlights indirect discrimination, which could include insisting that a prospective tenant has been resident in the UK for more than five years, which would mean migrants are less likely to be able to meet the requirement.

Landlords must also not discriminate against someone based upon the type of right to rent check which is required.

For example, a British or Irish citizen can decide that they do not want to use an IDSP for digital identity document verification and use a physical document instead.

For those prospective tenants who cannot evidence their right to rent, the code adds that landlords must try to keep the offer of accommodation open to give them the opportunity to produce documents to demonstrate this.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NEW: Landlords to follow new discrimination Code for Right to Rent checks | LandlordZONE.

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Why sell the geese that lay the golden eggs?

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Shortly after implementing the strategies recommended by our Property118 Tax Consultant my husband and I were asked to leave a Testimonial comment. However, just a few short sentences were not enough for me, so I have decided to submit this Readers Question instead.

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LEASEHOLDS: Landlords urged to have their say on mixed-use review NOW!

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Landlords are being urged to have their say on a consultation into a fairer system for leaseholders in England and Wales.

The Department for Levelling Up, Housing and Communities has proposed allowing more leaseholders in mixed-use buildings to buy the freehold through enfranchisement or to take over the management of their building through the right to manage. 

Under the current system, if shops and other similar properties take up more than 25% of the total floorspace, then leaseholders cannot collectively bid to take control of their building.

New proposals would give them the right to manage or buy their building outright, by increasing this limit to 50%.

Mandatory leaseback

Other proposals aim to make it cheaper for leaseholders to collectively buy their freehold. A ‘mandatory leaseback’ would require landlords to keep a lease on some properties in the building.

This means reducing the cost of a collective buyout of their building – making it a reality for thousands more leaseholders.

The government is also calling for views on changes to support greater use of commonhold as an alternative form of homeownership to leasehold, including for those in shared ownership schemes in England. The consultation closes on 22^nd February.

Chair of The Lettings Industry Council, Theresa Wallace (pictured), tells LandlordZONE that many landlords have properties in blocks of flats where the management is undertaken by a third party that they have no control over.

She adds: “The Law Commission proposals would allow more residential leaseholders to buy the freehold of their property – through enfranchisement – or take over the management of their building – through the right to manage – and so it is important that leaseholders engage with this consultation.”

Details of the consultation and how to respond.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LEASEHOLDS: Landlords urged to have their say on mixed-use review NOW! | LandlordZONE.

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LATEST: Report highlights rental home supply crisis as shortfall set to hit 540,000

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The UK will fail to meet rising targets for new private rented homes without more investment in the sector, according to the latest research.

A report by the economics consultancy Capital Economics, commissioned by the National Residential Landlords Association (NRLA), reveals that if owner-occupation and social housing continue at their 10-year average growth rate, PRS supply would have to increase by 227,000 homes every year to meet government targets and an anticipated 1.8 million new households over the next decade.

However, it suggests that without changes in tax or other policies, private rented sector stock will drop by a further 540,000 properties during that time.

The projections come as government figures show that the supply of private rented housing in England has fallen by almost 260,000 during the past five years. 

Youthful cohort

The Capital Economics report explains that demand will only increase as the 15-24-year-old cohort in the population is forecast to grow by 866,000 (11%) by 2030.

It says that in order to meet targets for housing supply the Treasury needs to encourage investment in the sector to encourage and support an increased rate of new builds, the switching of commercial property to residential use, the switching of stock from short-term to long-term lets and bringing empty homes back into use.

Ben Beadle (pictured), NRLA chief executive, says: “Today’s report highlights in stark detail the supply crisis now engulfing the sector. Without urgent action, the increasing number of people looking for affordable housing will be the ones to struggle as they face less choice and higher rents as supply dries up.”  

Andrew Evans, managing economist for Capital Economics, adds: “Even with increased provision of affordable housing and higher rates of owner-occupation, both of which are important, our research shows that significant additional investment is needed by landlords in the private rented sector.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Report highlights rental home supply crisis as shortfall set to hit 540,000 | LandlordZONE.

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227,000 new private rented homes required per year to meet government targets

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The UK needs almost 230,000 new private rented homes a year to meet government housing targets across the UK, according to a new report by the economics consultancy, Capital Economics.

The report, commissioned by the National Residential Landlords Association

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Homes for 2,900 rough sleepers

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Rough sleepers across the country will be supported off the streets and into long-term homes with £174 million funding boost, the Department for Levelling Up, Housing and Communities has announced.

The funding, which forms part of the government’s Rough Sleeping Accommodation Programme

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