19% inflation and 6% Bank Base Rate

admin    Uncategorized     agents

Only this week, Citibank predicted that UK inflation would exceed 18% by January next year and that the Bank of England would feel compelled to increase the base rate to 6%.

How many of us are prepared for this?

View Full Article: 19% inflation and 6% Bank Base Rate

Legal case: why should landlords fear Civil Penalties?

admin    Uncategorized     agents

Following the enactment of the Housing and Planning Act in 2016, the government introduced a range of new penalties for the use of local authorities, aimed at speeding up justice when dealing with rogue landlords. One such measure is an alternative to court action known as the civil penalty, a fine issued to landlords, and in some cases agents, depending where the responsibility for breaches of the regulations lies.

Those responsible for the management of HMOs need to be critically aware of their responsibilities under the The Management of Houses in Multiple Occupation (England) Regulations 2006 or face fines of up to £30,000.

What’s so alarming about this is a civil penalty fine can be issued for each individual management regulation breached – a feature of the law that means fines can escalate out of control to amount to very considerable sums.

Councils now have these considerable civil penalty powers as an alternative to prosecution for a variety of offences under the Housing Act 2004. These measures are designed to avoid the time consuming process of a criminal prosecution against the landlord or letting agent for offences.

These offences might include: not complying with improvement notices, failure to licence an HMO or failure to comply with a selective licencing scheme notice, an overcrowding notice or notices under the HMO management regulations, breaching a banning order or the right-to-rent regulations.

The landlord or agent subject to such a fine or fines has a right of appeal to the Property Tribunal, the onus being on the local authority to establish that the standard of proof is “beyond reasonable doubt”.

One such case was an Upper Tribunal appeal, that of Sheffield City Council v Hussain (2020) involving breaches of Management of Houses in Multiple Occupation (England) Regulations 2006 and the application by the local authority policy of civil penalties totalling £75,000 for several offences.

In this case the landlord was appealing the amount of the fine and whether his speedy carrying out of remedial action and generally complying with improvement notices amounted to mitigation of the offences, offences he did not deny.

Sheffield Council had served improvement notices on Mr Hussain in 2018 to remedy hazards which were breaches of the regulations. The civil penalties were issued for breaches of the regulations relating to: fire safety, defective heating, electrical safety, poorly fitted windows and defective handrails on staircases. These individual penalties came to a total of £75,000.

Mr. Hussain had put forward the argument that he was not the responsible person, not the manager of his HMOs which were two adjoining properties. But the council had determined his liability using its civil penalties policy published on its website.

The policy, the council claimed, followed the statutory guidance, a four-stage assessment:

1. The culpability and track record of the offender

2. The level of potential harm occupiers

3. Any mitigating circumstances to be considered

4. Proportionate adjustments to ensure fairness.

Taking into account the number of defects present, the council had put the level of potential harm at medium. But despite Mr Hussein giving assurances that the property would be brought up to standard without delay, these assurances were not considered enough to overcome the seriousness of the offences.

Mr. Hussein’s had claimed that he had been unaware of the breaches of the regulations in the properties and had never received copies of the notices issued by the council. The Tribunal rejected Mr. Hussein’s claims he had been unaware of the defects or that he had not received the notices. It considered he was liable for each of the offences. but by the time of the first hearing the breaches had been remedied.

After considering the facts, the First Tear Tribunal took the view that there were mitigating factors and reduced the overall penalty total.

The council was not satisfied with this outcome and appealed to the Upper Tribunal which concluded the most important fact was that Mr Hussein was in breach at the date of the service of the improvement notices.

His compliance, thought the Tribunal, was no more than his legal obligation, speedy or not. However, the appeal Tribunal held that a 10% mitigation reduction was justified. The notices had treated the building as two separate HMOs, but the properties were joined and breaches were the same in each, so the Tribunal reduced the overall penalty to £50,000 to reflect this.

View Full Article: Legal case: why should landlords fear Civil Penalties?

One in four landlords will sell-up if ‘no fault’ evictions are abolished

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Government plans to abolish controversial section 21 ‘no fault’ evictions could lead to a quarter of landlords selling their property, research reveals.

A poll of more than 700 landlords gauged reactions to the government’s ‘Fairer Private Rented Sector’

View Full Article: One in four landlords will sell-up if ‘no fault’ evictions are abolished

‘Resentful’ tenants push up malicious damage insurance claims, latest research shows

admin    Uncategorized     agents

Frustrated and resentful tenants pushed up the number of malicious damage claims in lockdown, according to new research.

Total Landlord Insurance reports that landlord insurance claims increased by 13% during the pandemic from 536 to 603, with malicious tenant damage among the fastest growing causes, rising by 50% from 28 to 42 claims between 2019 and 2021.

Storm damage claims saw the biggest jump, up by 93% from 70 claims to 135.

During the pandemic, the average landlord insurance claim size also increased by 29% from £5,773 to £7,429.

A liability

The biggest rise was seen in liability insurance claims, up by 270% from £1,306 to £4,827, while the average claim for storm damage increased by 140%, break-in claims rose by 101%, and claims for underground services went up by 95%.

Melissa Choules (pictured, below), the lead claims specialist at Total Landlord Insurance, says the fact landlords were largely unable to gain access to their properties, along with the direct impact of the pandemic on tenants themselves, may have contributed to an increase in claims.

“With landlords also unable to maintain their rental properties for such a prolonged period, the average size of a claim has also increased as they look to rectify multiple years of damage and wear and tear,” she says.

“It’s also interesting to see such an increase in claims resulting from malicious damage. This could suggest that, during the pandemic, tenants were feeling increasingly frustrated, trapped, and unable to move.

“At the same time, some tenants might have grown to feel resentment towards landlords who still expected them to pay the rent as normal despite significant reductions in income and job security,” adds Choules.

View Full Article: ‘Resentful’ tenants push up malicious damage insurance claims, latest research shows

Rent Smart Wales is ‘failing its users by closing phone lines’

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The National Residential Landlords’ Association (NRLA) has hit out at Rent Smart Wales after concerned landlords contacted them to say the helpline service has been closed.

As a result, NRLA contacted the organisation to discover why the service had been closed.

View Full Article: Rent Smart Wales is ‘failing its users by closing phone lines’

Landlords with leasehold properties in line for Ground Rent rip-off refunds

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More than 5,000 leaseholders – including landlords – could get refunds on their ground rent after the Competition and Markets Authority (CMA) secured assurances from nine firms that bought freeholds from housing developer Taylor Wimpey.

Those leaseholders who paid a doubled ground rent will receive refunds and the companies have promised to remove the terms from leasehold contracts that cause ground rents to double in price every 10 years and can lead to people being trapped in homes they can’t sell or mortgage.

“All affected leaseholders will now see their ground rents remain at the original amount – when the property was first sold – and this will not increase over time.

Sarah Cardell (main pic), CMA interim chief executive, says: “For years, leaseholders have been plagued by what we believe are unfair practices. That’s why we sought to tackle the problem by launching action against some of the biggest names in the business.”

Secretary of State for Levelling Up, Greg Clark, adds: “This is good news that will see thousands of leaseholders get the refunds they are entitled to. We will work with the CMA to continue challenging industry on its practices, so we can ensure more leaseholders get the fair deal they deserve.”

The nine freeholders are: BDP Freehold Ltd, Mortgage Incentive Funds Ltd, The Bridges (Darlington) Management Company Ltd, Bessant Properties Ltd, Brigante Properties Ltd, Furatto Ltd and Long Term Reversions No 1 Ltd, SF Ground Rents No 18 Ltd, SF Ground Rents No 15 Ltd and RMB 102 Ltd, Sarum Properties Ltd and Taylor Court Ltd.

A further four national developers – Crest Nicholson, Redrow, Miller Homes and Vistry – have agreed to work with the companies who bought their freeholds to remove doubling terms.

Read more about leasehold reforms.

View Full Article: Landlords with leasehold properties in line for Ground Rent rip-off refunds

Only 22% of landlords back Government plans to abolish Section 21 ‘no fault’ evictions

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Just 22% of landlords support the Government’s plans to abolish Section 21 evictions, a new poll has revealed.

But not all the measures within the ‘Fairer Renting’ white paper, which is expected to become the Renters Reform Bill next year, are unpopular among landlords.

Nearly two-thirds of those polled by The Mortgage Works said they supported a national landlord register, while even more backed plans to introduce a Decent Homes Standard.

But it is the proposal to ban Section 21 notice evictions, which enable landlords to eject a tenant without having to name a particular reason why that is causing the most concern.

The poll of 700 landlords indicates that a quarter of landlords would sell some or all of their properties if the proposal became law.

Pickier

And half said they would become pickier about which tenants they allow to rent their properties, a view held most prevalent among larger portfolio landlords.

And although a majority of landlords support a national register of properties and their owners/managers, most of those polled by The Mortgage Works say they don’t think it would put off determined rogue landlords.

This is because many believe such lawbreakers have no concern for regulations, that desperate tenants will rent from anyone including unregistered landlords and that many rogues are well aware that councils lack funding to enforce the law.

Dan Clinton (pictured), Director of Landlord at The Mortgage Works, says: “A mutually beneficial private rented sector needs to offer tenants the security they will not be evicted without good reason, yet also provide landlords the confidence they can gain possession of a property quickly and efficiently if something does go wrong, such as anti-social behaviour.”

View Full Article: Only 22% of landlords back Government plans to abolish Section 21 ‘no fault’ evictions

Why is it so difficult to find good tradespeople to repair and maintain properties?

admin    Uncategorized     agents

One of the main tasks you have as a landlord is finding quality tradespeople to repair and maintain your rental properties. Whether it’s a big landscaping project, or a small leak it’s important to hire people who know what they’re doing. 

Unfortunately for many landlords, finding tradespeople is a problem on the rise – let alone getting ones that are trustworthy and reliable. The typically stressful experience of getting hold of quality traders results in a number of scenarios: 

• A delay in projects that need to be carried out on the property 
• Only small, DIY improvements can be done 
• Failure to undertake repairs completely
• Between the rising cost of living and the struggle of receiving competitive quotes, many feel they don’t have a network of tradespeople to turn to, leading to a home maintenance crisis in the UK.

If any of these scenarios sound a little familiar, then this article is one for you. We’ve rounded up the main reasons why hiring tradesmen is proving complicated, and what the best solution is for finding reliable professionals to get the job done.

Here’s a handy summary of the article so you can skip to the part that interests you the most:

• Key factors making it harder to find trustworthy tradespeople
• Current difficulty with getting quotes 
• How to find quality tradespeople within minutes
• Practical tips for hiring the best tradesperson 

Why is it hard to find trustworthy traders?

Difficulty in getting quotes

Getting quotes from tradespeople directly can be a laborious process as – simply put – their working hours are the same as ours! 

As a result, you may be trying to get through to suppliers after hours which isn’t easy and, most of the time, near impossible. 

You’ll also find that it’s a lot more complex to describe the job over the phone as the trader will want detailed specification alongside visuals to be able to quote more accurately. 

The best way to get the most competitive and accurate quotes is to use comparison platforms who offer instant quotes from reliable tradespeople – without the hassle of ringing around. 

Not only does this save you a ton of time, but it also means you can share images and videos of the job as well as communicate with traders via instant messaging functions. 

Fear of falling foul to cowboy builders

Research shows that over 125,000 landlords and homeowners in England fall victim to cowboy tradespeople each year.

This means, unfortunately, there are many tradespeople who are grossly overcharging for work and requiring large upfront deposits for projects that are then left incomplete.

These cowboy tradesmen are unqualified to carry out the job and, in most cases, won’t have insurance to protect themselves or you.

This frustrating yet common scenario is only making it harder for people to trust their traders, but here’s how you can avoid this happening…

Choose a home service marketplace that matches you with qualified traders for your rental property projects.

“Using a third-party platform means you can trust that the work will be completed, and, in the event of any issues, they can get involved on your behalf.”

Rezigo ensures every trader on their site is fully vetted so you don’t have to do this yourself. You can also view previous jobs by this tradesperson and customer testimonials for further reassurance.

Say no to cowboy builders, and yes to professional, high-quality property improvements!

Lack of labour availability 

Tradespeople are in high demand and it’s no surprise considering that UK landlords are eager to improve their rental properties post-pandemic. Though, this means it’s harder to get a date in the diary at a short notice, and even more so for smaller jobs as tradespeople may prioritise larger projects that pay more. 

Rather than waiting numerous months for a job to get done, getting in touch with tradespeople via online platforms, like Rezigo, is a much speedier process that also lets you book the date and time that best suits you. 

Such home services marketplaces give you the option to negotiate on availability and receive multiple quotes to compare, so you know you’re getting the most competitive price for the work. 

How to find quality tradespeople within minutes

Now that we’ve looked at what is affecting your tradesperson search, the question still stands of how exactly you can find quality tradespeople you can trust…

Online comparison platforms are the best way forward for landlords and tradespeople to connect these days, without you having to trawl through dozens of websites. 

We’d recommend using Rezigo, a home services marketplace that matches you with reliable tradespeople and helps you get the job in the diary as soon as possible – all in one place. 

You can rest assured knowing any trader that walks through the door is trustworthy and diligent as Rezigo puts all their suppliers through a careful vetting process first. 

How exactly does rezigo work? 

Once you sign up to the platform, simply post the job that needs doing and give a few details about the service.

You’ll then be sent up to five quotes by different tradespeople to compar. You’ll then have the choice to either accept the quote or negotiate with the trader until you’re happy.

(Top Tip: Getting multiple quotes not only informs you of the price range for the job, but it also increases your chance of receiving the most fair and competitive quote overall.)

Your chosen trader will complete the work on the day that suits you (and your tenant) – this cuts out a lot of waiting time you’d usually experience elsewhere!

Once you’re happy with the job, you can pay securely via the Rezigo platform to ensure a smooth process throughout. 

No more unreliable tradespeople with unfair prices – Rezigo eliminates the hassle so you can maintain your property faster, smarter and easier. 

If you need work done to your rental property, get a quote on Rezigo today, or you can learn more about the platform’s features in this short video. 

View Full Article: Why is it so difficult to find good tradespeople to repair and maintain properties?

EXPERT: Number of councils seeking to stop HMO conversions is on the rise

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More councils are set to introduce Article 4 directions in a bid to clamp down on HMO development, with six currently waiting for approval.

There are already about 45 local authorities in England partly or entirely affected by Article 4 – which means planning permission is needed for the change of use to any size HMO – according to Platinum Property Partners.

Bristol is the latest city to introduce them in Stoke Park and Cheswick and parts of Filton following a public consultation which was overwhelmingly in favour.

The property investment franchise firm believes councils’ increasing use of them could start to impact the quality of HMOs, as they do little to address concerns relating to low standard HMOs.

Flourish

Mahsa Khaneghah (main image), head of planning and sustainability explains: “The costs associated with a planning application such as instructing an architect, planning consultant and submission fees, as well as the uncertainty of approval may dissuade landlords who take compliance seriously from creating HMOs at all.

“Thus, allowing substandard quality or unlawful HMOs to flourish, reducing the overall accommodation quality standards.”

While licensing can improve the quality and safety of HMOs, it would be good to see more from councils on using this investment to tackle substandard properties, adds MD Emma Hayes, who reckons they are still a good option for investors looking for a low-risk, long-term income strategy.

“HMOs are much more complex than the standard buy-to-let model but when done well the reward can be life-changing,” she tells LandlordZONE.

Analysing and understanding your investment location is absolutely key, adds Hayes. “There are a host of variables that may reduce the viability of HMOs in any given area, these range from the cost of property to planning restrictions so thorough due diligence is always highly recommended.” 

Read: The complete guide to running an HMO.

View Full Article: EXPERT: Number of councils seeking to stop HMO conversions is on the rise

Any out of the box suggestions for the end of student fixed term tenancies?

admin    Uncategorized     agents

Hello everyone, All of us as landlords are affected in different ways by the raft of HMRC taxation and government regulation.

As a student landlord of 25 years I am struggling to understand how the end of fixed term tenancies will benefit student tenants despite listening to arguments from Shelter and NUS.

View Full Article: Any out of the box suggestions for the end of student fixed term tenancies?