House prices and buyer activity continue to fall

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There has been a further weakening in the property market with sales, instructions to sell and prices all declining in the RICS Residential Market Survey for October.

The organisation says that this downward trend could last over the coming months.

View Full Article: House prices and buyer activity continue to fall

WATCH: Four essential steps landlords must take in 2023

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TV star and evictions specialist Paul Shamplina recently joined forces with industry figure David Coughlin during a webinar to help landlords identify the key steps to achieve the highest profits from their portfolios this year.

Coughlin is co-founder of the National Association of Property Buyers and director/founder of both National Residential and the Landlord Sales Agency.

The pair boiled down these steps into four bullet points for those attending the LandlordZONE webinar, which was held earlier this month.

The four key takeaways

1. Interest rates versus rents – are investors losing money or are they taking steps to be profitable? Learn exactly what you need to do to increase rents quickly without distressing tenants.

2.  Incorporation and Section 24 taxes – over 90% of landlords have not incorporated and with interest rates rising, they will be taxed to the high-heavens. Landlords need to incorporate and they can do this in six weeks via Property118. Find out how this saves both S24 tax and tens of thousands in Capital Gains Tax.

3. Why it’s crucial that landlords use specialists when selling tenanted properties and portfolios, and how Landlord Sales Agency can help landlords get the best price, quickest sale and fastest completions with win-win deals for tenants.

4. Find out why the most successful landlords are following the advice of experts such as David Coughlin, Paul Shamplina and established trusted companies like Property118. And why they’re on the side of landlords to ensure you’re covered with the best solutions and best priced sales to deliver you the results you need.

Watch the webinar for free in full here.

View Full Article: WATCH: Four essential steps landlords must take in 2023

Legal notes: serving notice when there is no current gas safety certificate

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When a tenant refuses the Gas Safe engineer access to a property to carry out gas safety checks the landlord is presented with a really difficult problem.

Tenants denying access for things like safety checks, repairs and maintenance or regular inspections is not unheard off, in fact it occurs frequently, and it is one of the many hazards of being a landlord. But, failing to have a gas or electrical safety record carries a penalty of up to £30,000 and possibly even more for not having both.

To some extent the law protects tenants in that they are entitled to what’s termed “quiet enjoyment” which in practice means giving them the space to enjoy the property as their own and not interfering with their lives or in any way harassing them. Tenant harassment is in fact a criminal offence controlled under the Protection from Eviction Act 1977. Landlords need to be careful about getting into a situation where they could be accused of harassment.

Rights and method of entry

However, the landlord does have rights too, though it can be a bit confusing. It’s an irony that in English (and Welsh) tenancy laws as they stand, on the one hand landlords are under a statutory duty to maintain a rental property in a safe condition, with services in working order, on the other hand they have no automatic right of access.

Section 11 of the Landlord and Tenant Act 1985 does give landlords a right of access to carry out these obligations, yet the centuries old common law covenant of “quiet enjoyment” and the principle of “exclusive possession” give tenants the right to exclude everyone, including the landlord. These principles conflict but are implied in any tenancy, regardless of whether they are written into the agreement, but ultimately statutory rules trump common law and contracts.

Landlord and Tenant Act 1985 states that a landlord has an obligation to maintain and repair, to quote:

• The structure and exterior of the property (including drains, gutters and external pipes),

• The installations in the property for the supply of water, gas and electricity and for sanitation, and

• The installations in the property for space heating and heating water.

• The landlord, or someone instructed by the landlord, like a plumber or gas engineer, will need access to the property to carry out these repairs.

In addition to access for repairs, the landlord also has a right to view the condition of a property. The landlord, or someone acting as their agent, can gain access to the property at a “reasonable time of the day” but only after giving the tenant a reasonable amount of notice, best in writing.

Landlord-tenant relationships are often a finely balanced love-hate affair which can easily fall over into an acrimonious one. It sometimes takes careful handling and good people skills to keep things running smoothly, so that’s why some landlords prefer to bring in a neutral third party, a professional letting agent to keep the relationship independent and at arms length.

What to do if refused entry?

This situation is not uncommon but very frustrating, especially if you have arranged tradespeople to visit multiple times. The one thing you must not do is try to use any kind of force or coercion, or gain entry with a key, or you could be accused of harassment – a criminal offence.

As you are in breach of the statutory regulations with regard gas safety or electrical safety inspections you should inform your local authority of the situation: it is they who will prosecute, so put your information in writing so they now what’s happening.

You should continue to make every effort to gain access legally, to have the checks carried out, making sure you keep copies of all correspondence including letters, emails and a written diary of phone calls.

Eviction – Section 21 and Section 8 of the Housing Act 1988 as amended

You may decide that enough is enough if the tenant is refusing to cooperate and especially if they are in arrears with their rent, often the two problems go together. So you decide to serve a notice seeking possession

But you are then faced with another problem: you cannot serve a valid Section 21 notice without a current safety certificate in place. So Section 21 is out, and of course, as we know, Section 21 may be out permanently soon when the law is changed.

Section 21 is the no-fault eviction process which means that providing you have met all the pre-conditions (prescribed information), which include having current safety certificates, there is an automatic right to possession, a mandatory rule the judge must comply with, based on paper evidence – no need for a court hearing.

In fact there’s a whole host of prescribed information and conditions you must have complied with to enable you to serve a valid Section 21 notice:

– it’s less than 4 months since the tenancy started, or the fixed term has not ended, unless there’s a clause in the contract which allows you to do this

– the property is categorised as a house in multiple occupation (HMO) and does not have a HMO licence from the council

– the tenancy started after April 2007 and you have not put the tenants’ deposit in a deposit protection scheme

– the tenancy started after October 2015 and you have not used form 6a or a letter with all the same information on it

– the council has served an improvement notice on the property in the last 6 months

the council has served a notice in the last 6 months that says it will do emergency works on the property

– you have not repaid any unlawful fees or deposits that you charged the tenant – read the guidance for landlords on the Tenant Fees Act 2019

– You also cannot use a Section 21 notice if you have not given the tenants copies of:

– you have not provided the tenant with the property’s Energy Performance Certificate (EPC)

– you have not provided the tenant with the government’s ‘How to rent’ guide

– you have not provided the tenant with a current gas safety certificate for the property, if gas is installed

– You must give your tenants the gas safety certificate , the ‘How to rent’ guide and EPC before they moved in.

What about using Section 8

Section 8 on the other hand is an adversarial court hearing process where you must prove your right to possession based on (currently) around 17 grounds or circumstances justifying this. This is likely to be the only way of gaining possession in the future when the new rules are introduced, probably this year, though the Government has said the grounds are to be beefed up and extended, with a slicker and quicker process? We’ll believe that when we see it.

The point is, can you use Section 8 when your tenant is in arrears and there’s no Gas Safety Certificate or Electrical Installation Condition Reports (EICR) or any of the other acquirements such as the EPC in place, deposit protected, “How to Rent Guide” served etc? Fortunately the answer is, yes you can!

Using Section 8 for eviction

The Section 8 notice, using the rent arrears ground 8 (serious rent arrears), is not reliant on the prescribed information but there must be two months of rent arrears before notice can be served.

However, tenants have sometimes argued in court that their landlord has failed to provide a healthy and safe house, for which they put in a damages claim, or alternatively they may pay off all or some of the arrears at the hearing, and these bring the arrears below two months – result, no possession order and back to square one.

Grounds for possession using section 8 are listed in Schedule 2 of the Housing Act1988

To circumvent this, arrears claims usually cite also ground 10 (some rent arrears) and ground 11 (persistent delay in paying rent). These discretionary grounds, along with ground 12 (breach of tenancy), which in this case would be refusing entry for a valid reason, may just swing it?

These are mitigating circumstances which may be enough to persuade the judge to issue a possession order. But the onus is on you, the landlord, or your legal representative, to prove, if it can be proved, why your tenant is in breach.

The Government advises that:

Section 8 notices are only valid if they are completed and issued correctly. Landlords will also need to use the most up-to date form which can be found at GOV.UK, assured tenancy forms (form 3). A Section 8 eviction notice is really the final step in the process.

Before a Section 8 is issued, landlords should send tenants regular reminders of the reasons why they’re breaking tenancy rules. It’s recommended that these reminders be sent on a weekly basis. Landlords should also clearly set out what the breach of rules are. If the issue is rent, it’s a good idea for landlords to include the amount of rent owed.

Section 8 notices also need to be given to the tenant in a certain way – this may be specified in the tenancy agreement and can include: Handing the notice to the tenant. Delivering the notice by post. Putting the notice through the letterbox.

Documentary evidence

Courts and judges do not deal in hearsay. Verbal evidence, where it’s the landlord’s word against the tenant for example, is never enough. Conclusive evidence is needed and that means documentation, even if this is just contemporaneous notes made in your tenancy diary, recording what was said in phone calls and when it was said.

As stated above, courts like to see that landlords have made every effort to resolve disputes before a court hearing is necessary, and to make sure the tenant/s know exactly why they are being taken to court. So it’s a good idea to inform the tenant that the safety rules exist for a reason and that they are likely to be evicted if it does go to court, and that you have ample evidence to prove the breach.

View Full Article: Legal notes: serving notice when there is no current gas safety certificate

LICENSING: Landlord fails to appeal £2,500 fine for unlicenced HMO

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A Haringey landlord has failed in his attempt to have a £2,500 fine thrown out by a First Tier Property Tribunal.

The landlord, who the council won’t name, was fined by Haringey private sector housing team for letting an unlicensed three-storey HMO in Hornsey Park Road to seven unrelated tenants.

Inspectors ruled that the property also posed a high risk to the tenants as it didn’t have adequate fire protection or a detection system.

Kitchen facilities provided were insufficient for the total number of tenants under Haringey’s HMO licensing scheme, which has been running since May 2019.

It requires landlords who let properties to three or more unrelated tenants living together who share a bathroom or toilet facilities as well as a kitchen to get a license.

Protect residents

Councillor Dana Carlin (pictured, below), cabinet member for housing services, private renters and planning, says its scheme is there to protect residents and ensure they are living in homes that are safe, well managed, of good quality and most of all, compliant.

“As shown by this case, those who do not comply with their obligations will face tough consequences,” she adds.

“The health and safety of residents is of utmost importance, and we will do everything we can to fight for renters’ rights and to strengthen the quality of Haringey’s private rented sector.”

Last November, Haringey got the green light from the government, for its five-year selective licensing scheme in 14 of its 19 wards in a bid to improve housing conditions and support the council’s ambition to tackle inequality.

Picture: Google Streetview

View Full Article: LICENSING: Landlord fails to appeal £2,500 fine for unlicenced HMO

LATEST: Big city to go live with controversial selective licensing plan

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Nottingham councillors have agreed to ask the government to approve the city’s new selective licensing scheme.

Proposals for its second scheme will cover a slightly smaller area in the city than the current scheme, but would include some new areas such as parts of Broxtowe and The Park. If it gets the go-ahead, the scheme could be implemented in August.

The council says it doesn’t believe landlords will need to increase tenants’ rent to cover the cost of a licence application, which would be payable in two parts.

It believes most landlords in the city who already have a licence would be aware of licensing, so a new licence should be factored into their business plan, while any previous increase in rents they may have made should cover a new licence fee.

Councillor Toby Neal (pictured), portfolio holder for housing and human resources, adds: “Many of the 45,000-plus privately rented properties in the city are well-managed but, as part of the first scheme we still find properties that are to a very poor standard.”

Surprising

But Giles Inman (pictured), business development manager at EMPO, questions why the council isn’t working with good landlords to seek less expensive measures to improve energy efficiency, tenant behaviour, property disrepair and standards.

He tells LandlordZONE: “It’s surprising they mention they don’t expect rents to increase because of more licensing and that many of the 44,000 properties in the city are well-managed. Why then consider a new large-scale and costly scheme?”

The landlord group has already warned that the introduction of another selective licensing scheme could create an exodus of landlords. It is working with property solicitor David Smith to submit an objection to the government.

View Full Article: LATEST: Big city to go live with controversial selective licensing plan

Strong tenant demand pushes room rents to record high

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As tenant demand continues to outstrip supply, room rents have hit a record high, a survey reveals.

According to SpareRoom, rents reached a record at the end of last year as landlords continue to lose confidence in the rental market.

View Full Article: Strong tenant demand pushes room rents to record high

House prices rose by 10.3% in the year to November

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The average UK house price rose by 10.3% in the year to November 2022, which is down from 12.4% in October, the Office for National Statistics (ONS) says.

Sellers saw the average price increase by £28,000 to £295,000 in that period.

View Full Article: House prices rose by 10.3% in the year to November

How to solve anti-social behaviour?

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Hello, Not sure if anyone can advise, but I have a long standing good tenant who has complained about the new neighbour in the flat upstairs (shouting/fighting/baby crying at all sorts of hours including midnight and beyond).

This has been going on for a few months

View Full Article: How to solve anti-social behaviour?

Scots ‘flippant disregard’ of PRS will make housing shortage worse

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The Scottish government’s ‘flippant disregard’ for the private rental sector will only exacerbate the housing crisis, warns industry group Propertymark, which wants an urgent review of landlord taxation.

It has written to Deputy First Minister John Swinney (pictured, left) about his decision to increase the Additional Dwelling Supplement from 4% to 6% in December as part of Land and Buildings Transaction Tax on additional properties.

Propertymark believes the tax burden is crippling landlords, citing examples such as the withdrawal of tax relief on mortgage interest costs and replacement with a 20% tax credit, Capital Gains Tax for rented property being maintained at 28%, and a rise in corporation tax to 25% this year. Meanwhile rents have been capped under the Cost of Living (Tenant Protection) (Scotland) Act.

Supply of private rented property is the number one concern for Propertymark members, their tenants and landlords, says CEO Nathan Emerson (main picture) who adds that the government needs to drastically improve the way that it values the PRS.

Flippant disregard

“If it continues with its flippant disregard, investment will only further decline, and rent will continue to rise,” he explains.

“We ask the Scottish government to urgently listen to our calls to revert its decision to increase the Additional Dwelling Supplement and generally review taxes for landlords.”

Propertymark has urged it to boost the supply of rented housing and reduce rent rises by not only reducing the surcharge on additional homes to encourage further investment, but to also launch a wider review of all taxes relating to private landlords.

“By reducing costs for those wanting to invest in the sector, it would help reduce rent for tenants, lead to longer-term tenancies and make it more affordable for renters,” it says.

Read more: Will the last landlord to leave Scotland please turn out the lights

View Full Article: Scots ‘flippant disregard’ of PRS will make housing shortage worse

Rental market starts 2023 strongly

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The demand for rental property is still outpacing supply and rent growth is still rising – so the sector starts 2023 very much like it ended 2022, one property expert says.

Nicky Stevenson, the managing director of Fine &

View Full Article: Rental market starts 2023 strongly