EXCLUSIVE: NI landlords voice major concerns over renting reforms

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Landlords in Northern Ireland fear new legislation to give private renters greater protection could herald further sweeping changes that force more to quit the sector.

Sections 1-6 of the Private Tenancies Act (Northern Ireland) 2022 take effect on 1st April when landlords can no longer ask for a tenancy deposit of more than one month’s rent, while the time they have to protect a deposit increases from 14 to 28 days.

There is also a requirement for landlords to provide both new and current tenants with a notice containing tenancy information and to give them a notice of variation when any changes are made to their tenancies.

However, the Landlords Association for Northern Ireland (LANI) says there is more potentially worrying legislation waiting in the wings, namely Section 7 of the Act which would restrict the frequency of rent increases to once every 12 months, along with stringent rent control measures. Although they have been outlined, regulations must be made for these new measures to begin.

Extra paperwork

“Extra paperwork and increasing burdens on landlords may already be sufficient for quite a number to exit the market,” a spokesman tells LandlordZONE.

“There are also reserve powers within this new legislation that allow the government to demand that landlords reduce rents by 10% or to freeze rents for up to four years. Other provisions include the requirement to get private rented properties up to an EPC band C.”

HMO landlords in Belfast also face the additional burden of having to be available 24-7 to help officials if problems arise – or face a £2,500 fine.

“Rents have gone up by 10-15% in the last year due to excessive legislation,” adds the spokesman. “Any more could be the straw that breaks the camel’s back.”

Read more about Northern Ireland.

View Full Article: EXCLUSIVE: NI landlords voice major concerns over renting reforms

LATEST: One in three landlords who remortgage will fail affordability tests

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One in three landlords could be forced to sell up after failing their lender’s affordability test to re-mortgage, it has been claimed.

The stark warning comes from buy-to-let specialist Mortgages for Business which says some buy-to-let investors are being forced to accept variable rates as high as 9.5%. Others are disposing of properties because they can no longer afford their loans.

Some lenders are offering landlord borrowers product transfers, a new deal without asking them to pass a new stress test, while others will allow borrowers to re-mortgage back to them at reduced fees, but not all, says MD Gavin Richardson (pictured), who explains it’s a critical time for the sector. 

“We’re seeing landlords coming off rates of 3.5% and being unable to re-mortgage because, according to the lender’s stress test, their loan is no longer affordable,” he adds. 

“Unable to secure a new deal and with nowhere else to go, their loans are reverting to the lender’s standard variable rate which average about 7.5%.

“In the worst-case scenario, they are moving to their lender’s standard variable rate at rates as high as 9.5%. 

“Their only other options are to pay a socking-great fee to secure a more reasonable interest rate, which can cost them tens of thousands of pounds, or they can sell up and go home.”

£1,200 a month

Richardson gives the example of a landlord charging £1,200 a month rent with a mortgage of £225,000 coming off a fixed rate of 3.99% who would now be offered a re-mortgage of £180,893, based on a rate of 5.49%, falling £44,000 short of the loan amount they need. 

“At a rate of 5.99% the shortfall rises even higher to £59,207 while at 6.29% it is £67,114. To be accepted for a re-mortgage of £225,000, the landlord would have to increase the rent by nearly £300 to £1,495.”

Read more about landlord mortgages.

View Full Article: LATEST: One in three landlords who remortgage will fail affordability tests

Are councils acting illegally when telling tenants to stay put?

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Are councils following the law when telling tenants to stay put when they are facing eviction to protect them? Or is the council simply kicking the can further down the road?

The simple answer is – no-one seems to know.

View Full Article: Are councils acting illegally when telling tenants to stay put?

City council urges ‘Awaab’s law’ to cover ALL rented homes

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Planned legislation known as ‘Awaab’s law’ that will make councils and housing associations fix reported health hazards – including damp and mould – within strict new time limits should be extended to private rented homes too, one council suggests.

Oxford City Council is following in the footsteps of Citizens’

View Full Article: City council urges ‘Awaab’s law’ to cover ALL rented homes

WARNING: Landlord takes down video after tenant rant goes viral

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A landlord in London has learned the hard way not to complain about bad tenants on social media after one of her TikTok videos went viral and was featured within The Sun’s website.

The woman, who doesn’t give her name on the social media site but uses the handle @Thefiveamshopper has now taken down her video post after tenants piled into to mock her commentary.

The TikTok-er is one of the 950,000 private landlords in the UK who have one property and she fumed during her video after one of her tenants had left hers in a relatively poor state of repair after three years renting it.

Poor landlord

Complaining that tenants can be portrayed as being treated badly within the PRS, she said: “You know, what about poor me? Poor landlord!”

After the tenant moved out she discovered damage to carpets, spray painting across a fireplace and missing furniture although, as LandlordZONE readers will know, this is the light end of property damage that some buy-to-let owners face.

“I gave her a perfect, beautiful, freshly painted, everything in it proper,” she said.

Whingeing

But The Sun, which is seldom sympathetic to landlords, described her complaints as ‘whingeing’, as did many of the comments on her TikTok video by members of the public.

Some of the fairer comments on the video pointed out that if she had undertaken regular inspections of the property then her tenant’s actions might have been mitigated earlier.

Her video, which is unusual because she normally posts about shopping, holiday and books, makes no mention of whether she deducted any money from the tenant’s deposit.

Picture credit: TikTok

View Full Article: WARNING: Landlord takes down video after tenant rant goes viral

Proof of tenancy for UC?

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Hello, My excellent tenant of 8 years standing wishes to apply for universal credit. The requirements state :

We will only accept the following documents:

• up-to-date tenancy agreement
• letter from your landlord or landlord’s agent
• rent book
• rent receipts

The original agreement made in 2015 was a 12 month AST and is now monthly periodic.

View Full Article: Proof of tenancy for UC?