iHowz Green Paper on the Future of the PRS

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iHowz recently published their paper outlining proposals on the PRS in response to the Queen’s speech. With Michael Gove due to make an announcement on the government’s white paper, we wanted to highlight our proposals

Summary of Recommendations:

1.

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London council ‘pick up pace of enforcement’ as fines total £7.5m over past five years

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London councils continue to batter rogue landlords and letting agents with penalty fines, pushing the total handed out to £7.5 million during the last five years.

In May, the total had risen by £300,000 in less than four months, however, this has slowed since last November when geospatial technology firm Kamma reported that fines increased by more than £1 million in less than a year as councils picked up the pace of enforcement efforts post-lockdown.

The average fine imposed on landlords for all offences is now £4,233 and £4,440 for letting agents – figures which have only gone up by about £20 in the last year, according to Kamma.

It says that while more record fines are given to landlords and agents, there are still many smaller fines handed out which keeps the average at a similar rate compared to last year. 

Largest fines

The borough with the largest average fine rate is Hammersmith and Fulham with £19,800, while Camden tops the table for the highest number of cases brought since 2017 (418), followed by Newham (340) and Southwark (169).

Landlords and letting agents face fines of up to £30,000 for failing to comply with safety and licensing regulations, and additional fines of up to £5,000 per property for non-compliance with MEES regulations.

Property professionals need safeguarding tools in place to protect themselves and their customers from market and regulatory risks, says CEO Orla Shields (pictured), as the firm announces a new partnership with insurance brokers Mint Insurance. This aims to give its customers access to discounted offers on Kamma’s licensing compliance services and tools.

“We continue to seek out new partners that we know will further our mission and support us in helping agents reduce risks and increase regulatory compliance in the property sector,” adds Shields. “This partnership helps agents dramatically reduce their risks and does so in an operationally efficient way.”

Read more about fines in London.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – London council ‘pick up pace of enforcement’ as fines total £7.5m over past five years | LandlordZONE.

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Disability Access Consultation

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Kemi Badenoch, Minister for Equalities and Levelling Up Communities, has released a consultation for regulations to make it a duty for landlords to respond to requests from disabled tenants wishing to make communal spaces outside their rental properties more accessible.

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EPC exemptions after spending £10k?

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I understand that should we be unable to achieve an EPC rated at C on a rental property and I’m thinking of one property in particular where the last EPC was done in 2018 when it was given an E.

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BREAKING: Government to give tenants ‘legal right’ to have a pet in their home

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The Government is planning to give tenants the legal right to keep a pet as Ministers swing behind efforts to re-purpose the housing market towards ‘the consumer’.

These proposals will be within the long-awaited draft Renters Reform Act that, it is reported, Gove is to publish tomorrow.

This will include measures that will prevent landlords and letting agents enforcing a blanket ban on pets, which will have ramifications for both property adverts and software systems.

The Mail says property owners will need to have a ‘good reason’ to refuse permission for a tenant to have an animal in their home, and tenants will be given access to a mediation process should they feel a landlord’s refusal is not justified.

The Government will also change the law so landlords can require that renters to get insurance so any damage to their property is covered.

Pet friendly

Of the 4.4million households currently living within the private rented sector in England, just 7 per cent of landlords advertise their properties as being pet-friendly.

A Government spokesperson told The Mail: ‘Not only will our new deal for renters extend the decent homes standard to the private rented sector… we’ll also give tenants a legal right to have a pet if they wish. Would-be pet owners are being unfairly deprived of the company and companionship of an animal by their landlords – so we’ll change the law to end this unfairness.’

There will be protections for landlords within the Act, and tenants will still have a legal duty to repair or cover the cost of any damage to properties.

The news will be a huge vindication of Jen Berezai’s long-standing campaign through her AdvoCATS organisation to bring about the measures leaked today and expected tomorrow.

She says: “AdvoCATS welcomes the news that the DLUHC is including new rules on pet ownership in the private rented sector in the forthcoming renters reform white paper, and is pleased to see that one of the key proposals from our Heads for Tails! campaign, to stipulate pet damage insurance is held, has been adopted.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Government to give tenants ‘legal right’ to have a pet in their home | LandlordZONE.

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Refurbishment Buy to Let – A solution to EPC requirements

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The proposed new Energy Performance Certificate (EPC) regulations will mean that from 2025, landlords cannot rent their property on a new tenancy without an EPC rating of C or above. It is proposed that the penalty for not having a valid EPC

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Better relationships result in fewer end-of-tenancy clashes

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The number of tenancy disputes dropped last year despite a growth in the amount held in UK deposit protection schemes.

The average amount disputed fell from £793 to £784 in 2021, while the total number of disputes also fell by 12% to 34,444 in 2021. According to mydeposits, more than 4.5m tenancy deposits are protected across the rental market, up 2.3% on the previous year. It reports that at an average of £1,005 per tenancy, £4.6 billion is now held in protection schemes, up 1.1% on the previous year, meaning that the number of disputes as a percentage of all deposits has fallen from 0.9% to 0.8%.

Contentious cleaning

Although only a small number of tenants disputed the deductions made to their tenancy deposit, mydeposits estimates that the total value of rental deposit disputes was almost £27 million in 2021. Cleaning was by far the most contentious issue between landlords and tenants, with damages to the property, redecoration costs, gardening and rent arrears also ranking highly. 

mydeposits CEO Eddie Hooker says: “The good news is that deposit deduction disputes are actually few and far between and account for less than 1% of all deposits held within authorised protection schemes.”

Tenancy length

He adds: “We’ve also seen a reduction in total disputes lodged, which suggest the rental sector has become a more harmonious place over the last year, or that tenancies post-pandemic are increasing in length, resulting in less end of tenancy issues. Either way, it looks as though the sector is heading in the right direction where tenant-landlord relationships are concerned.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Better relationships result in fewer end-of-tenancy clashes | LandlordZONE.

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Resort urges council to kick out holiday home owners

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Whitby residents have voted overwhelmingly to end second home ownership in the North Yorkshire resort.

At the first local referendum in more than a decade, fed-up locals backed the question posed by the parish council: ‘Should all new-build and additional housing in Whitby parish be restricted to full-time local occupation as a primary residence only and forever (in perpetuity)?’

Planning decisions

Many complain that the seaside town is swamped with holiday cottages, fuelled by the staycation boom. Local businesses are struggling to get staff because the area is too expensive to attract new people, while existing residents are forced to buy elsewhere. The result of the referendum is not legally binding, but it could help inform future planning decisions or encourage Whitby Town Council to formally put a neighbourhood plan in place, similar to one in St Ives.

Leo Thai, from Jacksons Estate Agents, told the BBC that about 75% of properties were currently sold as second homes or to investors. “A lot of the time people find that they are out priced or find that they are in a position where they are competing with people coming into Whitby,” he added.

Council tax

Many other coastal communities around the UK are calling for more powers to reduce the amount of second homeowners in their areas. In Wales, the Local Government and Housing Committee has just called on the Welsh Revenue Authority to use consistent definitions when designing policies so that it can differentiate between buy-to-let investments and properties that can be classed as second homes or holiday lets.

Last month, it was announced that landlords in Wales who rent out self-catering accommodation on an infrequent basis will be liable for council tax – an average of £1,777 for a band D property. In England, second homes will need to be rented out for a minimum of 70 days a year to access small business rate relief rather than paying council tax, from April 2023.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Resort urges council to kick out holiday home owners | LandlordZONE.

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No Banks “too big to fail”

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The Bank of England has published their assessment that out of the 8 major Banks in the UK sector there are none that are “too big to fail” and would need government support if they got into trouble again.

If a major UK bank failed today it could do so safely

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I can’t be the only one facing credit frustration or am I doing something wrong?

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Since the crash and subsequent restructuring of the BTL market, our business borrowing has gone from a business loan to a lot of “personal” loans that now appear on our credit searches. I imagine this is the same for all landlords unless you own your properties outright.

View Full Article: I can’t be the only one facing credit frustration or am I doing something wrong?