NEW: Lawyers warn of ‘huge gaps’ in legal aid for tenants facing eviction

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Large areas of the country will be without vital legal advice to prevent eviction if the government can’t get law firms to take part in its Housing Loss Prevention Advice Service, the Law Society has warned.

The scheme, which gives free legal aid advice for people facing repossession, will replace in-court work provided under the Housing Possession and Court Duty Scheme from August. However, it has failed to attract any bids in 12 areas of the UK, including Liverpool, Hull, Darlington and High Wycombe.

Law Society president Lubna Shuja (main picture) says it shows just how unviable the service has become for providers. “As a result, some are instead choosing to leave the legal aid market altogether,” she explains.

“We are really concerned that this could lead to less support being available for families at risk of losing their home at a time when we are in the middle of a cost-of-living crisis. More and more people are struggling with rising rents, spiralling debt and mortgage costs.”

Possession proceedings

The new advice service will also provide non-means, non-merited tested advice on housing welfare benefits and debt when a landlord or mortgage lender threatens possession proceedings.

The Law Society believes 24.4 million people (41%) do not have access to a housing legal aid provider and is calling on the government to provide an immediate injection of funding into the system to prevent it from collapse. It reports that between July and September 2022 there were 21,012 landlord repossession actions, up 106% on the same period in 2021.

The solicitors’ professional body has previously warned that spending cuts in the justice system are hitting possession hearings and impacting homelessness help following the Chancellor’s autumn statement which effectively reduced its budget.

View Full Article: NEW: Lawyers warn of ‘huge gaps’ in legal aid for tenants facing eviction

EPC upgrade rules may lead to landlords leaving, admits ‘net zero’ minister

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A government minister has admitted that landlords could quit the market unless upcoming changes to EPC rules are implemented carefully.

In a Lords debate to discuss the challenges of achieving net zero, Lord Callanan, Under Secretary in the Department for Business, Energy and Industrial Strategy, said it was simple and straightforward to pass a regulation to improve the performance of the PRS.

However, he added: “If the net result of that is a net loss of privately rented accommodation, particularly in poorer parts of the country, there are many people who want that accommodation and we will not have gained anything.”

Criticised

The government has been repeatedly criticised for failing to respond to its consultation into the subject in 2020. In January 2021, it proposed a target that all new tenancies in the private rented sector should be in a property with an energy performance rating of at least a C by 2025 – extended to cover all tenancies in the sector by 2028.

Lord Foster of Bath urged the government to put landlords out of their misery. “How much longer must landlords wait to know exactly what the government want them to do to improve the energy efficiency of the privately rented sector?” he asked.

The private rented sector has no hope of meeting the deadline to improve EPC ratings, according to the NRLA. Speaking on Radio 4’s You and Yours programme, representative Richard Blanco said 2028 would be a more realistic target.

“We need an extra three years. There will be lots of challenges. Often the solution is external insulation which won’t be allowed in some areas. You can have loft insulation, LED lighting and thermostats on radiators but you might still not get from a D to a C.”

The government says it will respond to its consultation “in due course”.

View Full Article: EPC upgrade rules may lead to landlords leaving, admits ‘net zero’ minister

Generation Rent calls for proposed Section 8 eviction ‘loophole’ to be closed

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Tenants’ group Generation Rent has backed the DLUHC select committee’s call to close a loophole in proposed Section 8 reforms.

It says the government’s plan to ban Section 21 evictions but still allow landlords to evict tenants when needing to sell or move back into a property are flawed.

The Renters Reform Bill aims to introduce these grounds for possession which landlords could use in the first six months of a tenancy.

They could then only market or re-let these properties after three months. In its report, the Levelling Up, Housing and Communities Select Committee on Reforming the Private Rented Sector suggests this should be increased to one year and six months respectively.

Spot on

Generation Rent director Alicia Kennedy says the committee is spot on with its warning that the proposed eviction grounds could be too easily exploited by bad landlords and leave renters vulnerable to unfair evictions.

“When landlords sell up, renters should get more protection from eviction including measures to encourage sales of tenanted properties and longer notice periods,” she says. 

“Private renters will never enjoy stability in their lives or have the power to complain about their home if they can be evicted without the landlord needing a reason.”

Holiday lets

Kennedy also praised the committee for showing an understanding of the need to control the rise of the holiday let sector and for greater efforts to improve energy efficiency in private rented homes.

“Private renters have been especially exposed to the rising cost of living, with rising rents and draughty homes. We now need to see urgent action from the government to bring forward their Bill to make these reforms a reality,” she adds.

The report urges the government to implement a tourist accommodation registration scheme and warns that banning Section 21 evictions will lead to a surge of possessions cases.

View Full Article: Generation Rent calls for proposed Section 8 eviction ‘loophole’ to be closed

Government PRS reforms report welcomed by NRLA

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The National Residential Landlords Association (NRLA) has welcomed reform recommendations in a report from MPs for the private rented sector (PRS).

Among the recommendations, the Levelling Up, Housing and Communities Select Committee’s report calls for the development of a specialist housing court to tackle anti-social behaviour and rent arrears cases.

View Full Article: Government PRS reforms report welcomed by NRLA

Section 21 – I kid you not!

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Hello, I issued a Section 21 Notice to my tenant in December 2021. A consistently bad payer, he had until February 2022 to vacate. He chose not to, knowing full well he could appeal.

The appeal was heard at Willesden County Court.

View Full Article: Section 21 – I kid you not!

What are financial experts predicting for landlords and buy-to-lets in 2023?

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The Financial Reporter asked a number of mortgage experts what they expect in the buy-to-let sector in 2023. It’s no surprise they unanimously predict financial difficulties ahead for most landlords as increased costs cause incomes to shrink but some also believe there will be an opportunity for cash-rich landlords to snap up bargain property later in the year.

View Full Article: What are financial experts predicting for landlords and buy-to-lets in 2023?

MPs slam unintended consequences of Government’s looming PRS reforms

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MPs have slammed the Government’s proposed reforms to the private rented sector (PRS) within its looming Renters Reform Bill, calling for Ministers to wake up to its unintended consequences.

Their report, published this morning, also makes the point that most tenants are not worried by insecure housing or low-quality properties, but high rents caused by the Government’s recent attempt to drive private landlords out of the sector.

The MPs’ criticisms includes how banning Section 21 evictions will lead to a surge of possessions cases before any likely deadline that will swap the courts and lengthen evictions.

They also say giving tenants easier access to the Tribunals system to challenge rent increases will also swamp that legal system.

“It is not clear whether the Government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms,” the report says.

The Government has already rejected calls for a dedicated housing court to deal with this extra caseload, which MPs say is ‘unsatisfactory’, pointing out that landlords facing rent arrears and/or anti-social behaviour by tenants should be able to access fast justice to regain possession.

The Levelling Up, Housing and Communities Select Committee’s report on the Government’s planned (see link at bottom) also warns that the proposed Decent Home Standard will be usher in any improvement in housing stock unless councils are given significant financial support to police it.

Precarious

“The precarious position of local government finances, the shortage of qualified housing and environmental health officers, and the lack of reliable data are all obstacles to effective enforcement,” it says.

But the committee has concerns that unscrupulous landlords will use a ‘loophole’ in the proposed measures, which allow landlords to evict tenants when needing to sell or move back into a property.

It therefore proposes:

• An increase from six months to one year the period at the start of a tenancy during which the landlord may not use either ground;
• increase from three months to six months the period following the use of either ground during which the landlord may not market or relet the property.

MPs have also called on student lets to be exempted from the reforms, which aim to end AST contracts and bring in open-ended ‘periodic’ tenancies, a change for this sector that would make it “considerably less attractive to private landlords”.

“We warmly welcome much of today’s report and thank the Committee for taking on board many of the arguments we have made,” says Chris Norris, Policy Director for the National Residential Landlords Association (pictured)

“The NRLA has never been against reform of the sector, but it has to be fair and workable for both tenants and landlords.

“That is why the Committee is right to call for court reform to underpin the ending of Section 21, changes in plans for student tenancies and ensuring cases of anti-social behaviour are prioritised by the courts.

“As the Committee rightly notes, the biggest challenge faced by many renters is that there are not enough homes to rent.

“All the protections in the world will mean nothing for tenants if the homes are not there in the first place. 

“That’s why the Government should accept the Committee and the NRLA’s call for a full review of the impact of recent tax changes in the sector.” 

Read the report in full.

View Full Article: MPs slam unintended consequences of Government’s looming PRS reforms

Section 13 Notice advice?

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Hello forum, I would like some advice on section 13 notices and the correct procedure.

I have 2 flats rented to tenants who moved in six years ago currently paying £850 rent in West London, the tenants are great never had any issues with payment and they have looked after the property very well.

View Full Article: Section 13 Notice advice?

Landlords continue to sell up and leave the PRS – and house prices fall

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The latest report from RICS makes for grim reading for landlords and homeowners with news that sales and house prices continued to decline across the residential market in January.

In addition, landlords continue to flee the sector for the tenth consecutive month

View Full Article: Landlords continue to sell up and leave the PRS – and house prices fall