Council green lights more HMO licencing despite proof on higher rents

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Nottingham councillors have voted through a contentious additional HMO licensing scheme.

The current scheme, covering central areas of the city, will soon come to an end and the council plans to introduce a new citywide scheme in January 2024.

It says this would prevent landlords who choose not to comply with licensing and standards – ineffectively managing their single occupancy properties – from trying to convert them to small HMOs where the “spread of harm could potentially be worse”.

The authority insists that its current additional scheme has had a positive impact on HMOs, including tackling problems with waste management and anti-social behaviour.

There are 3,230 smaller HMOs in the proposed area and 4,628 reports of issues were made against them between 2019 and 2022, a rate of 1.43 per property, according to the council which will now run a 12-week consultation. Proposed standard fees are £1,474, and £1,118 for accredited landlords.

Increase rents

Landlord group EMPO is opposed to the additional scheme as well as the new selective licensing scheme, which has caused many Nottingham landlords to increase rents, an external auditor’s report has found.

Audit consultancy Grant Thornton was asked to investigate concerns over value for money for both tenants and landlords, and although it says no formal audit action is needed, it has recommended addressing problems in the online application process, the scheme’s footprint and whether it should be better targeted, as well as whether inspection targets can be achieved, according to the Westbridgford Wire.

The current selective scheme is due to end in July and the council has drawn up a replacement, which EMPO warns would prompt many to quit the sector.

View Full Article: Council green lights more HMO licencing despite proof on higher rents

Boiler Upgrade Scheme has been a flop, Lords climate committee warns

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Peers have slammed the government’s Boiler Upgrade Scheme for attracting a “disappointingly low” take-up of grants.

Launched in May 2022 and open to landlords and home owners, 9,889 vouchers have been issued and 7,641 vouchers redeemed so far, making the government’s 2028 target of 600,000 installations per year very unlikely to be met, according to the Lords’ Environment and Climate Change Committee.

It warns that if the current take-up rate continues, only half of the allocated budget will be used to help households switch to low-carbon heating systems and that there won’t be enough installers and manufacturers to implement the government’s low-carbon heating policy.

It slams inadequate promotion of the scheme and misleading messages from the government which it says has negatively affected take-up of established low-carbon home heating technologies such as heat pumps.

Upfront costs are too high for many households and landlords, even with the help of the grant, making it impossible for low-income households to benefit from the scheme.

Extended

The committee wants the government to provide greater clarity on feasible options for low-carbon home heating through a consistent policy framework, public communications, and householder advice. The remainder of the scheme’s first year budget could be rolled over into the second year and possibly extended.

It also suggests correcting Energy Performance Certificates methodology so that certificates properly reward households for making the switch to low-carbon heating.

Committee chair Baroness Parminter (pictured) says: “The government must quickly address the barriers we have identified to a successful take-up of the Boiler Upgrade Scheme in order to help grow the take up of low-carbon heating systems.

“It is vital they do so if we are going to meet our Net Zero ambitions.”

Read official guidance about the scheme.

View Full Article: Boiler Upgrade Scheme has been a flop, Lords climate committee warns

Citizens Advice calls for ‘Awaab’s law’ to be extended to PRS

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A charity is calling for a new law aimed at cracking down on mould issues in social housing to be extended to private housing landlords.

Citizens Advice is urging the government to bring regulation of the private rented sector (PRS) in line with social housing after the death of Awaab Ishak.

View Full Article: Citizens Advice calls for ‘Awaab’s law’ to be extended to PRS

NEW: Citizens Advice says Awaab’s law must be extended to private landlords

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Citizens Advice has urged the government to extend Awaab’s law to the PRS to help the estimated 1.6 million children living in damp, mouldy or excessively cold privately rented homes.

Awaab Ishtak died aged just two years old after living in a mouldy and poorly ventilated council flat that led to him suffering heart failure, and so far the Government has limited its measures to the social housing sector.

These include more powers for the sector’s ombudsman and rules that will require landlords to investigate and fix serious problems within strict time limits.

Keep warm

New research by the charity found that 30% of renters can’t heat their home to a comfortable temperature and that some in the least energy efficient properties are paying an extra £950 a year just to keep warm. 

Its poll of 2,000 private renters in England found 58% are struggling with either damp, mould or excessive cold or a combination of these issues. If these renters had two children and the figures were extrapolated, it would add up to 1.6 million affected children, reckons Citizens Advice.

It wants the private rental sector to be brought in line with social housing by following the lead set by Awaab’s law – legislation which will place strict, legally binding timelines on social landlords to deal with damp and mould.

The Government has already announced that the PRS’s new housing ombudsman will lead the battle against mould while new measures would specify the time limits landlords must meet on investigating hazards and acting where there are health concerns.

EPC call

The charity is also calling on the government to make good on its promise to ensure all new private rental properties are upgraded to a minimum EPC C by 2025 and existing tenancies by 2028, and for the cap on landlord investment to increase from £3,500 to £10,000. 

Gillian Cooper (pictured), head of energy policy at Citizens Advice, says every week it hears stories about people living in cold, damp and mouldy properties they can’t afford to heat properly.

She adds: “Improving energy efficiency in privately rented homes has never been more urgent. It’s the step needed to keep people’s essential bills low, while also helping to protect their mental and physical health.”

Read more about mould and damp prevention.

View Full Article: NEW: Citizens Advice says Awaab’s law must be extended to private landlords

Agent requesting 2 months notice on a periodic tenancy?

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Hello, I’m hoping the Forum can help me. Bit of a different one as the advice needed is for a tenant rather than a landlord.

My niece has a periodic tenancy after the fixed term lapsed. In the initial contract

View Full Article: Agent requesting 2 months notice on a periodic tenancy?

Opinion: Should “Awaab’s law” be applied to private rented sector?

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The Government has now committed to delivering “Awaab’s Law” in a new amendment to the Social Housing Regulation Bill.

But does the Government intend to place the same onus on private landlords, and is this law totally fair?

I can’t help feeling perplexed as to just how Housing Secretary Michael Gove can think this law is going to be a total solution, but it does give the impression of a Government taking action?

Awaab’s Law is designed to force social landlords to promptly fix damp and mould when it appears in tenants’ properties. The new law has come about as a result of two-year-old Awaab Ishak’s death in December 2020 from a respiratory condition caused by “extensive” mould in a one-bedroom social housing flat, where he lived with his parents in Rochdale, Greater Manchester.

The new law is met with great enthusiasm by the housing charities and tenant organisations but is their faith in it well founded?

Now, housing charity Citizen’s Advice is calling for the same “Awaab’s law” to apply in the Private Rented Sector (PRS), where the charity claims that around 2.7m households in England are contaminated by damp, mould or excessive cold.

The new law, the Government says will:

• Crackdown on damp and mould under new legislation in memory of Awaab Ishak
• [Social] Landlords must investigate and fix serious problems within strict time limits
• [Give] New powers for Housing Ombudsman to help landlords improve performance, in amendments to the Social Housing (Regulation) Bill.

Applies to social landlords only

Once the new law is enacted social housing landlords will be obliged to investigate and fix damp and mould in their properties within strict new time limits, that’s according to an announcement by Housing Secretary Michael Gove on Thursday 9 February.

Amendments have already been tabled to the Social Housing Regulation Bill which will bring about the introduction of “Awaab’s Law”.

Swift action

Mr Gove acted speedily following the tragic death of two-year-old Awaab Ishak, which the coroner concluded was caused by the damp and mould that existed inside the family’s home. The social housing flat’s tenancy was managed by Rochdale Boroughwide Housing, an organisation that has since had its funding blocked, preventing the company building new homes until it can prove it is a responsible landlord.

The Housing Secretary confirmed the Government’s commitment to the new law in social housing when he visited Rochdale recently and met with Awaab’s family and the Interim Chief Executive at Rochdale Boroughwide Housing.

So far the Government has not indicated that the new law will apply directly to the PRS but this has not stopped housing charities including Citizen’s Advice calling for such a move.

However, we await the changes to the PRS to be introduced, probably this year, by The Renters Reform Bill. It is predicted to bring big changes for landlords and tenants in England in particular the abolition of Section 21 and the introduction for the Decent Homes Standard, previously applying only to social housing.

The bill is part of the government’s white paper – A Fairer Private Rented Sector. The paper provides the Government’s commitment to “delivering a fairer, more secure, and higher quality Private Rented Sector” and promises to be the “biggest shake-up of the rented sector for 30 years”.

It is very likely therefore that the bill will contain some measures along the lines of Awaab’s law when applied to the PRS.

Back to Awaab’s Law and social housing

The Government has stated that a consultation is to be held later this year to establish time-frames within which social landlords will have to act to investigate hazards and carry out any necessary repairs.

The new rules are to form part of the tenancy agreement, so tenants can hold landlords to account through the courts if necessary, a measure which will also form part of the PRS’s Renter’s Reform Bill.

Housing campaigners are now calling for private landlords to be held to the same high standards as will be introduced by “Awaab’s Law” in the social sector. Citizen’s Advice claim that there could be as many as 1.6 million children living in the PRS at risk of health issues due to damp, mould or excessive cold.

Head of energy policy at Citizens Advice, Gillian Cooper, has said:

“Every week we hear stories of people living in cold, damp and mouldy properties they can’t afford to heat properly. Improving energy efficiency in privately rented homes has never been more urgent. It’s the step needed to keep people’s essential bills low, while also helping to protect their mental and physical health.”

The Government is acting but will it work?

When it comes to damp, mould or excessive cold I’m intrigued to know if Michael Gove really understands the issues involved? The are long-standing issues in all tenancies whether social or private, in which so far an effective universal solution has proven largely elusive.

Does Mr Gove really understand or is this a knee jerk reaction to a problem that could blow up in the Government’s face: urgent action was need in the high profile Awaab case to divert public attention, but does placing the onus of finding a solution on to the landlords solve the problem completely?

Yes, it’s good to carry out investigations to find the extent of the problem, but can the perennial problem of condensation and mould in rental homes really be solved by this law and the sole action of landlords – personally I doubt that.

We know that these problems are caused by poor heating and ventilation – removing steam created by cooking, washing and clothes drying, at source. We also know that poor housing stock often has inefficient and costly heating systems.

Landlords in the PRS are most likely going to have to improve the energy efficiency of their units to EPC level “C” over the next few years. A good thing in itself, this still leaves a big question in my mind: how can any landlord ensure that every tenant applies enough heat, and ventilates steam at source, so as to keep their properties free from condensation and mould?

This is where we enter a contentious and controversial sphere: how can a landlord possibly force a tenant, one who is struggling with their finances, to maintain that minimum level of heat to fend off that dreaded black mould, the toxic growth that has the potential to destroy the health of anyone living in the property.

High cost of energy

Given the cost of fuel – especially this winter in an energy crisis – many tenants would rather economise on heating and get used to living in cold, than go without food. But the consequences are, as we know, damp and mould, it’s inevitable. How come one tenant in an identical flat, with identical heating etc., can be free from this menace, while another tenant next door produces a property looking like the Black Hole of Calcutta?

Over the years I’ve racked my brain to solve this conundrum. It’s very easy for Michael Gove to speedily bring in legislation which covers himself, gives the appearance of immediate effective action, enthusiastically received by all, placing the onus squarely on the shoulders of landlords.

It is almost certain the measures will eventually apply to private landlords, but is that fair? Yes it will encourage landlords to use their best endeavours to contain the problem, but they don’t live with their tenants like Rigsby, they can’t control everything.

View Full Article: Opinion: Should “Awaab’s law” be applied to private rented sector?

Expert slams licencing schemes for red tape that ‘punishes good landlords’

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Propertymark is calling for more local authority funding to ensure licensing schemes don’t unfairly burden compliant landlords.

It says councils’ scant resources and inadequate staffing levels mean processing licence applications takes longer than it should and hampers their ability to deal with admin, leaving landlords frustrated and uncertain about their entitlements while being processed.

In Tower Hamlets, some Propertymark members took months to get their licence.

One of the largest licensing scheme proposals in Brent would cover about 50,000 PRS properties, according to Tim Thomas, policy and campaigns officer (main picture).

“To base an estimate on one staff member visiting three properties per day, it would take over 50 years to complete checks on every property which is a completely unrealistic number to ensure were compliant,” he says.s

Rogue operators

Landlords are paying up to £1,215 per HMO property while rogue operators continue to operate under the radar, according to Propertymark.

It reports that while some local authorities are acknowledging the difference being part of an accredited organisation makes and offering discounts, it believes this offer should be taken up by more councils in order to limit the costs for good landlords.

Propertymark is voicing its concerns to local authorities and local representatives and explaining why it believes licensing is not the best way to improve standards across the PRS.

Adds Thomas: “As more and more schemes pop up, we will continue to engage with all levels of politics and government to ensure local authorities are targeting their scarce resources appropriately and good agents and landlords are not burdened with overzealous licensing schemes.”

View Full Article: Expert slams licencing schemes for red tape that ‘punishes good landlords’

Rent yields outstrip house price rises

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The UK’s highest average rental yields are in Bradford where they currently stand at a massive 11.06%, according to a new report.

Data from debt advisory specialists, Sirius Property Finance, revealed the current average UK rental yield is 4.08%

View Full Article: Rent yields outstrip house price rises

Tenant suing for condensation problems?

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Hello, I have a tenant who is suing me for damp and mould problems. When the tenant moved into the property it was just renovated with a new carpet and painted throughout. The flat is a two bedroom ground floor.

View Full Article: Tenant suing for condensation problems?

Single occupancy AST installs wife and 2 children?

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Hello, In November 2022 I accepted a new tenant on a 1 year AST. The property is a 2 bed first floor flat in a converted building.

He is aged mid 30s (I think of Nigerian origin) and doing a post grad course at a local University.

View Full Article: Single occupancy AST installs wife and 2 children?