LAW: Landlord fails to win costs off solicitor and tenant after ‘hopeless’ RRO claim

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The landlord of a charitable building has failed in its unusual attempt to win costs from both a tenant who tried to claim a rent repayment order (RRO) and his legal firm.

Governors of Sutton’s Hospital in The Charterhouse said tenant Merryck Lowe had acted unreasonably in making his application (he had claimed that the landlord operated an unlicensed HMO and had also harassed him) because it was “hopeless”.

The case is particularly unusual because The Charterhouse is a ‘rambling nest’ of medieval and Renaissance buildings with an educational, military and residential background near London’s shimmering skyscrapers. As well as being a tourist attraction and film location, its mission is to provide a home, a community and lifelong care for older people in need.

Its governors also sought to win a ‘wasted costs’ order against solicitors JMW which it said had acted negligently and/or unreasonably.

A tribunal dismissed Lowe’s original HMO claims in July 2021, finding that the building in London’s Charterhouse Square, in which his flat was situated, was not an HMO, and that his claim relating to harassment hadn’t been made in the correct timeframe.

£28,000 costs claim

In the most recent tribunal hearing, the governors of Sutton’s Hospital argued that this application should never have been brought and sought costs totalling £28,009.

While it acknowledged that his solicitor should not be held to have acted improperly, unreasonably or negligently “simply because he acts for a party who pursues a claim which is plainly doomed to fail,” it said JMW had conducted the case in an unreasonable manner.

Judge Robert Latham said: “There was an arguable case that the flat was an HMO. Even had we been satisfied that the case was hopeless, we would not have concluded that it had been an abuse of process for the applicant to bring [an] application.”

He dismissed the application for penal costs against the tenant and wasted costs against JMW, and added: “We are not satisfied that either the applicant has acted unreasonably in bringing this claim, or that either the applicant or JMW have acted unreasonably in the conduct of this application.”

Pic credit: Ingleby Trice.

View Full Article: LAW: Landlord fails to win costs off solicitor and tenant after ‘hopeless’ RRO claim

LATEST: Nationwide reports ‘sharp slowdown’ in property price growth

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October saw a sharp slowdown in annual house price growth to 7.2% from 9.5% in September, reports Nationwide, as the average house price fell 0.9% to £268,282.

This was the first monthly drop since July 2021 after the market was sent reeling by the mini-Budget, which led to a sharp rise in market interest rates. Higher borrowing costs have added to stretched housing affordability at a time when household finances are already under pressure from high inflation, explains chief economist Robert Gardner.

Jonathan Hopper (pictured), CEO of Garrington Property Finders, believes the market will continue to feel the aftershock of the mini-Budget for months. “Fewer mortgages are available, with interest rates having gone up in an express lift, rather than the gradual escalator we’d been expecting,” he says.

Asking prices are being reduced in many areas, and sellers who just months ago could take their pick of offers are now biting off the hand of a strong, proceedable buyer – even those asking for a price reduction, adds Hopper. “In some areas, sellers’ fears of declining values have triggered a surge in supply, bringing forward the traditional spring bounce in new stock for sale by up to five months.”

New buyer enquiries almost dried up as uncertainty about the future direction of mortgage repayments added to cost-of-living concerns, says Jeremy Leaf former RICS residential chairman. 

“Activity has slowly started to resume since as mortgage rates began to stabilise and are now starting to fall.

“Buyers are negotiating hard as they strive to take advantage of good mortgage offers while prices continue to be supported by lack of stock,” says Leaf.

View Full Article: LATEST: Nationwide reports ‘sharp slowdown’ in property price growth

HMO Leasing / management recommendations?

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Hello, I have a six bed / three bathroom property near Wolverhampton which I am looking at turning into an HMO.

I am looking for a company to take on the management of this HMO with a guaranteed rent including covering for void periods

Does anyone have advice or experience of this or recommendations of companies you have used please?

View Full Article: HMO Leasing / management recommendations?

Landlord that ‘vindictively’ evicted tenants accused of ignoring tribunal

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Former tenants of billionaire landlord John Christodolou have accused him of flouting their successful rent repayment orders.

Despite being ordered to pay back-rent to three tenants in his Stoke Newington block, they believe the Monaco-based landlord – one of Britain’s richest men – is trying to avoid the penalty, reports The Times.  

Jordan Osserman (pictured) and his flatmates were awarded the repayment orders in July 2021 when they told a first-tier tribunal how Christodolou had failed to license an HMO in Simpson House, Somerford Grove (main pictured), and neglected to install fire safety measures. They also reported a lack of heating and hot water, poor building maintenance and lack of pest control measures.

Section 21 notices

Prior to the case, the tenants were approaching the end of their tenancy, but instead of going into a rolling basis or a contract for a new tenancy, they received a Section 21 eviction notice, which they believe was also sparked by their request for a block-wide reduction in rent during Covid.

In June this year, an upper tribunal increased the amount from £18,400 to £22,500, when the judge said that they had been “vindictively” evicted, adding that “the landlord’s business practices involved a systematic or institutional neglect of regulatory requirements”.

The three tenants submitted a statutory demand with a deadline for payment of 29^th September but haven’t heard back from the landlord.

However, following their successful case, some 20 other rent repayment orders, collectively worth up to £500,000, are due to be heard.

A few months ago, the tenants at Somerford Grove were asked to pay their rent to the new company which owns the block – Simpson Assets 3 – which they found out is ultimately owned by Christodoulou. Osserman said: “They came up with a new strategy which is that they are not going to pay.”

Read advice: How to handle the S21 notice process.

View Full Article: Landlord that ‘vindictively’ evicted tenants accused of ignoring tribunal

October sees a sharp slowdown in house prices

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The annual UK house price growth slowed to 7.2% in October, from 9.5% in September, Nationwide reports.

Its house price index reveals that prices fall 0.9% month-on-month – the first monthly decline since July 2021.

Robert Gardner

View Full Article: October sees a sharp slowdown in house prices

Just 1 in 12 homes is affordable for tenants on housing benefit

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Just 11% of one-bedroom properties in England are now affordable to renters on Local Housing Allowance – that’s down from 17% in April, research reveals.

That’s when Crisis and Zoopla last conducted their analysis which also reveals that the proportion of affordable two-bedroom properties has fallen to just 7% from 11%.

View Full Article: Just 1 in 12 homes is affordable for tenants on housing benefit