‘Why must PRS landlords do electrical checks when social homes are ‘exempt’

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The government has been slammed for its double standards by compelling private landlords to carry out electrical safety checks in high-rise blocks every five years, while social landlords don’t face the same obligations.

Lord Foster of Bath attacked the current inequality during a debate on the Building Safety Bill, which is set to receive Royal Assent soon.

He told the House of Lords the disparity was strange because the government wanted equality between social and private landlords.

He told peers: “The social housing charter states unequivocally, ‘Safety measures in the social sector should be in line with the legal protections afforded to private sector tenants.

“Responses to the social housing Green Paper showed overwhelming support for consistency in safety measures across social and private rented housing’.”

Five-year checks

Lord Bath introduced an amendment proposing mandatory five-year checks, which he said social housing landlords supported.

He added: “Some 87% of leaseholders support the introduction of mandatory electrical safety checks. The same survey found that 91% of leaseholders were more concerned for their safety and that of their tenants as a result of what they saw in the tragic fire at Grenfell.”

Read more about landlords' electrical safety check obligations.

However, Home Office Minister Lord Greenhalgh (pictured) said the amendment would add an additional objective for the building safety regulator around property protection.

He added: “I am concerned that adding additional objectives for it at this early stage in its life could distract it and hinder its success. Instead, we should include this issue in the first statutory review of how well the regulator is working.”

The government has vowed that no leaseholder living in medium or high-rise buildings will have to pay a penny for the removal of cladding, but it has repeated that only buy-to-let landlords with one other property should be included in statutory protections for leaseholders.

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Company linked to high profile investor put into liquidation owing £1.5m

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A high-profile property investor hailed as a rent-to-rent success story has put his company StayBC Ltd into liquidation, owing creditors nearly £1.5 million.

Newport-based Ben Brand charted his rapid rise on social media, describing his introduction to the property sector after attending a training course in 2019 where he learnt how to set up his own serviced accommodation company, admitting that prior to that, he had had no property or business experience.

StayBC Ltd promised to source property investment opportunities for clients to increase their wealth.

Last April, he had 160 serviced accommodation units, employed 60 staff and was managing three hotels.

By August, he talked about making £500,000 a month in sales, operating across South Wales and South West England and employing more than 140 staff.

He revealed that his deal sourcing business was generating £50,000 in monthly sales, specialising in finding rent-to-rent and purchase opportunities for investors.

Name change

Earlier this month, he set up Oaktree Investing Ltd, after changing its name from StayBC Sourcing Ltd. He has also been promoting another company – Stay Developed.

Companies House information shows that £450,000 is owed by StayBC to his own sourcing company StayBC Sourcing while more than £1 million is owed to a group that includes HMRC plus 130 investors and small businesses.

Brand also recently set up an investment club to attract those wanting to grow and build a serviced accommodation company.

It promises: “Our mission is to help people create lives of wealth, happiness and freedom by teaching them how to create and scale their own Serviced Accommodation businesses. Here, we will train, coach and mentor you on your journey.”

Due to his high profile, Brand was regularly featured on podcasts, speaking about his business model. This week, he was still posting on his Facebook page, ‘Benthebrand’, about new opportunities for investors in apartment blocks.

LandlordZONE has attempted to contact Brand for a comment.

Pic credit: YouTube.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Company linked to high profile investor put into liquidation owing £1.5m | LandlordZONE.

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OFFICIAL: 53% of renters’ finances so weak they can’t pay £850 ‘unexpected bill’

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More than half (53%) of renters could not afford an unexpected, but necessary, expense of £850 compared with 1 in 10 (13%) adults who own their property outright, new research published today finds.

The Office of National Statistics (ONS) studied the impact of the increased cost of living during the last five months and found that those renting their homes, adults on the lowest incomes or those with no formal qualifications were most likely to be unable to afford this unexpected expense.

Parents of dependent children, divorcees or those separated, disabled people, and those living outside London, the South East and South West were also likely to be more affected.

The ONS data uses the affordability of an unexpected expense as a measure of financial vulnerability and helps identify households that may not be able to absorb a cost of living increase.

Rent arrears

The findings are likely to worry landlords, many of whom have been affected by rent arrears during the pandemic, while last week’s Budget offered little consolation for struggling renters who are now also being hit by spiralling energy bills.

The National Residential Landlords Association says although average rents across the country have been increasing by less than inflation, the squeeze is compounded for renters reliant on Universal Credit.

Policy director Chris Norris (pictured) adds that more than half now have a gap between what they receive in housing benefits and what they have to pay in rent.

“Ministers should be doing more to support the most vulnerable tenants by unfreezing housing benefit rates so that they may better reflect the cost of quality homes,” he tells LandlordZONE.

More than 8 in 10 (83%) adults reported an increase in their cost of living in March compared with around 6 in 10 (62%) last November, according to the ONS, mainly due to the rising cost of food shopping (90%), gas or electricity bills (79%) and the price of fuel (71%).

Read the ONS research in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – OFFICIAL: 53% of renters’ finances so weak they can’t pay £850 ‘unexpected bill’ | LandlordZONE.

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Government grants for corporate landlords to insall EV charge points

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The government scheme for EV chargepoint grants gives financial support to buy and install electric vehicle (EV) chargepoints at residential or commercial properties in the UK: Click here for the full details.

The grant amount is per chargepoint socket installed and provides up to 75% of the cost towards the purchase and installation of a chargepoint socket

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Three easy-to-miss legal updates every landlord should know about!

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With 168 rules and regulations to follow when letting a property, it can be a nightmare for landlords to stay up to date with legislation.

Here’s three upcoming changes worth knowing:

Right to Rent

If you’ve been letting to the same tenant for a long time or are new to buy-to-let, you might not realise the Government requires you to check whether your tenant is legally allowed to live in the country. Even if they have a British passport, you still need to carry out the checks. If you don’t, you could be fined thousands.

The good news is that you can carry out these checks remotely until 30th September. You can speak to the tenant via a video call and accept scans or photos of documents rather than having to see the originals.

There is also an updated code of practice that landlords must abide by, and it’s important to note that you cannot discriminate against prospective tenants who might be less easy to make checks on. Find more information here.

Landlord Licensing

There’s a lot of talk at the moment about the ‘Renters’ Reform Bill’, which has been on the cards for a few years now. It’s expected this year and is likely to scrap Section 21, as well as introduce other changes.

One of the proposals that’s often overlooked is the requirement for landlords in England to have some form of regulation. This already exists in the rest of the UK – landlords have to register themselves and their properties, and anyone managing a property in Wales must also be licensed. So it’s highly likely that, as a landlord in England, you’re going to have to be either registered, licensed and/or belong to a redress scheme in the not-too-distant future.

Then there’s the extremely complicated local authority licensing schemes in England. Mandatory nationwide licensing only applies to ‘large’ HMOs in England and Wales – properties with five or more people, forming more than one household. However, each council also has the power to introduce their own additional and selective licensing schemes, which can apply to any rented property.

To add to the confusion, selective licensing schemes only run for five years, after which they can be renewed, scrapped or replaced with a different scheme. Some councils are great at making sure landlords are aware of changes and new schemes, but some do the absolute minimum, meaning changes can easily be missed.

It’s essential for landlords – especially if you don’t live in the same council area as the properties you let – to stay on top of local licensing schemes. If you don’t have the right licence for your property or if you breach any of the licence conditions, the council could fine you up to £30,000. Your tenants, or where tenants are in receipt of benefit, the Council can, apply to the First Tier Tribunal for a Rent Repayment Order which could require you to repay up to 12 months’ worth of rent.

Smoke and Carbon Monoxide Alarms

In November 2021, the Government announced that there will be some changes to alarms coming soon. The proposed changes are quite cost effective and could protect you and your tenant, so we think it’s well worth implementing them now if you can:

1. CO2 alarms will be required in rooms with a combustion appliance (apart from gas cookers) in all tenures via building regulations – so for your home as well as the properties you let.
2. Landlords will need to repair or replace alarms if they’re reported as faulty. The cost of doing this is so low and they give such great peace of mind to protect tenants, it’s worth checking regularly that the smoke alarms are working properly.

How are you keeping up?

At Leaders we have expert agents who manage lettings compliance for our landlords. If you let through an agent, check how they stay legally compliant and if you self-manage, make sure you have a reliable way to keep up to date with ongoing changes.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Three easy-to-miss legal updates every landlord should know about! | LandlordZONE.

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TONIGHT: Struggling to find property deals?

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Live online TONIGHT (Thursday 31st May) at 8pm! Brand new training all about how you can find better property deals in your area.

If you are struggling to find great deals, or don’t know what to look for

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