PODCAST: Leading legal expert highlights latest law updates for landlords

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Hosts Eddie Hooker and Paul Shamplina of the HFIS group are joined by David Smith, Head of Property Litigation at JMW Solicitors, legal advisor to the NRLA and a regular face in national media trusted for advising the private rented sector.

With the Renters’ Reform Bill due to be laid before Parliament imminently, this podcast taps into David’s legal expertise, taking a deep dive into the nitty gritty of lettings law and holding them to scrutiny. What are the limitations of the Renters’ Reform Bill from a lawyer’s perspective?

To kick off the discussion, David describes the background to the recent Rakusen v Jensen rent repayment order case, where he acted as legal advisor to the NRLA.

The landmark Supreme Court case illustrates how the interpretation of legislation changes over time, he explains. With an increasing number of ‘property gurus’ damaging the reputation of the sector with their ‘get rich quick’ schemes, perhaps the Government should be taking the opportunity to reform rent to rent rules as part of the Renters’ Reform Bill, says David.

You can also watch this video Q&A in which LandlordZONE editor, Nigel Lewis, asks Eddie Hooker, should rent to rent be regulated?

When it comes to the issue of property condition, already a major focus for reform through the proposed application of the Decent Homes Standard to the private rented sector, will the tragic death of Awaab Ishak be a milestone? The difficulty, argues David, is how any legislative change will be matched by enforcement, which has been consistently weak.

With so many increasingly complex legal changes to contend with, should landlords take on a professional agent to manage their property? Not necessarily, says David – if the agent gets it wrong, the fact the landlord instructed an agent is no defence, and it’s not currently possible to seek a rent repayment order against an agent. Should agents have to take more responsibility, or should educating landlords be enforceable in England, as it is in Wales?

Tune in to hear detailed discussion on these questions and a wide range of topics, including the proposed new property portal for landlords in England, the remit of landlord redress, the introduction of fixed term tenancies, student lets, new grounds for possession, whether agents without a bank account are in breach of client money protection law, and more.

They may not have all the answers, but this podcast will provide you with informed opinion and lively debate.

The latest episode of The Property Cast – an in-depth legislation special – is now available to download.

View Full Article: PODCAST: Leading legal expert highlights latest law updates for landlords

Revealed: Chain-free property market hotspots

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There has been a rise in the availability in chain-free properties in 21 major cities, according to a new report.

House Buyer Bureau reveals that chain-free stock availability has increased by 3.4% since June 2022, rising from 36.6% of all available homes to 40%.

View Full Article: Revealed: Chain-free property market hotspots

Tenant makes unusual crowdfunding plea to pay £12,000 ‘upfront’ rent

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A mature international student has turned to a crowdfunding site to raise £12,000 after his landlord demanded a year’s rent upfront.

Mohamed Elsawwah, who lives in Birmingham with his wife and three children, has been studying international business in the UK for the last eight months and is trying to raise the cash in an appeal on Crowdfunder. He has yet to attract any donors.

“I moved here to pursue higher education, but due to visa restrictions, I am not allowed to work to support my family,” says Elsawwah.

Dire need

“Unfortunately, our landlord has asked us to pay 12 months’ rent in advance, which we cannot afford at the moment. We are in dire need of your support to help us raise the required funds and avoid becoming homeless.”

He adds that as well as applying for grants and scholarships, he’s looking for fundraising ideas to help reach his goal.

Adds Elsawwah: “We understand that these are challenging times, and many people are facing their own financial difficulties. However, we are grateful for any support that you can provide and promise to pay it forward once we are in a more stable financial position.”

Graham Hayward, COO at rent guarantor service Housing Hand, says it’s clearly a ridiculous situation and exactly why his company was formed in the first place – more than 10 years ago.

“If he can share his student credentials and provide a co-signer we would be happy to assist,” he tells LandlordZONE. “Occasionally landlords are fussy on who the guarantor is, but we have a 100% pay-out record and are backed by a highly rated insurance company.”

Read more about rent guarantors.

View Full Article: Tenant makes unusual crowdfunding plea to pay £12,000 ‘upfront’ rent

BREAKING: Landlords to be given more powers to evict ‘unruly tenants’

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The Government is preparing to compromise over its plans to abolish Section 21 ‘no fault’ evictions by beefing up landlords’ ability to eject ‘unruly’ tenants including those involved in anti-social behaviour, the Prime Minister has revealed.

The initiative is part of the Government’s Anti-Social Behaviour Action Plan launched tomorrow morning (27th March) which will a wide-ranging initiative to crack down on anti-social behaviour including “giving landlords and housing associations more powers to evict unruly tenants who ruin their neighbours’ lives through persistent noise or by being drunk and disorderly”.

This would be appear to allay many landlords’ fears that abolishing Section 21 evictions will prevent them removing tenants who terrorist neighbours and, in the case of HMOs, fellow tenants through violent or intimidating behaviour.

Other measures within the plan include bigger fines for graffitti and littering, sprucing up green areas and parks, and re-opening empty shops.

Housing secretary Michael Gove (pictured) says: “Anti-social behaviour erodes local pride, blights our high streets and parks and is a stain on too many communities across the country.

“We know that it is more likely to flourish in areas that have, for too long, been overlooked and undervalued.”

No Explanation

“Plans to end ‘no explanation’ repossessions risk making it harder to tackle such behaviour,” says Ben Beadle (pictured), Chief Executive of the National Residential Landlords Association (NRLA).

“Whilst we will study the detail of the Government’s plans carefully, we welcome its commitment to strengthen the ability of landlords to evict unruly tenants.

“It follows extensive campaigning by the NRLA to ensure swift and effective action can be taken against those causing misery in their communities.

“The law must be on the side of the victims of anti-social behaviour and we are glad that the Government agrees.”

Polling by the NRLA found that half of landlords have at some point attempted to repossess a property because of a tenant’s anti-social or criminal behaviour.

Of this group 84 per cent had received no help in tackling it from their local authority and 75 per cent had no assistance from the police in dealing with anti-social tenants, the NRLA says.

Commenting on his Government’s new initiative, Prime Minister Rishi Sunak says: “This action plan maps out how we will tackle this issue with the urgency it deserves and stamp out these crimes once and for all – so that wherever you live, you can feel safe in, and proud of your community.”

View Full Article: BREAKING: Landlords to be given more powers to evict ‘unruly tenants’

Inspired by a new generation of property investors

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Dear Property118

The latest videos you have published on your Property118 TV YouTube channel were very timely for me because I was on the verge of throwing the towel in following the barrage of bad news for property investors in recent years.

View Full Article: Inspired by a new generation of property investors

Smaller portfolio landlords ARE leaving the sector, says Bank of England report

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Smaller buy-to-let landlords continue to quit the market, according to the Bank of England’s latest update on PRS conditions.

The bank’s findings support the NRLA’s assessment that the landlord exodus is well underway – a position which chief executive Ben Beadle was forced to defend earlier this month.

A Guardian article had accused Beadle of making up stories about the state of the sector in a bid to persuade the government to scrap restrictions on mortgage tax relief, however a Commons committee agreed that he had not misled MPs when giving evidence about the diminishing supply of private rented housing.

Supply

Beadle (pictured) tells LandlordZONE: “Across the country demand for rented housing is massively outstripping supply – a trend which the Bank has once again highlighted in this report. The only losers from this are renters who are struggling to find a place to live.

“It makes no sense to have a tax system which actively discourages the provision of the very homes renters need. That’s why the government needs a proper plan which supports the sector to meet the growing demand from tenants for good quality private rented accommodation.”

Contracting

The Bank of England’s summary of business conditions in the first quarter of the year finds that rental housing supply is still contracting, while demand for properties continues to rise, leading to double-digit rent inflation.

Despite this, tenant groups continue to push the line that the sector is exaggerating the scale of the problem.

This week, London Renters Union sent newsletters to its members claiming that it has forced ministers to admit the landlord lobby and government have peddled lies about landlords leaving the sector because of stronger renter protections on the horizon.

The group says: “It’s outrageous that the landlord lobby has pushed this false narrative to scare government away from protecting renters when the truth is that private profiteering in our housing system is still on the rise.”

View Full Article: Smaller portfolio landlords ARE leaving the sector, says Bank of England report

Student landlords – and students – will suffer under periodic tenancies

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The looming ban on fixed-term tenancies as part of the Renters Reform Bill will cause chaos for both students and landlords in the university rental sector, experts say.

According to research by the accommodation platform StuRents, the UK will face a shortfall of around 450,000 student beds by 2025 and if landlords leave the PRS because of the ban on fixed-term tenancies

View Full Article: Student landlords – and students – will suffer under periodic tenancies

Sellers slashing house prices within a month

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As the property market begins to cool, around one in 10 home sellers are slashing their asking price within 30 days to attract a buyer, research reveals.

House Buyer Bureau says it has analysed property sale stock levels in the last 30 days and what percentage have already reduced their asking price.

View Full Article: Sellers slashing house prices within a month

Daily Telegraph wants to speak to landlords letting out to tenants in partnership with the council

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Are you a landlord who it letting out to tenants in direct partnership with the council? Then, Alexa Phillips, the personal finance reporter, for the Telegraph would like to speak with you.

Alexa would like to speak to Property118 readers about:

• What kind of incentives did the council offer you?

View Full Article: Daily Telegraph wants to speak to landlords letting out to tenants in partnership with the council

Shelter says agents and landlords who ban children are in breach of industry code

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Letting agents and their landlords who advertise properties as ‘no children’ face being accused of breaking discrimination rules, it has been claimed following a campaign by Shelter.

The organisation says agents who advertise properties as ‘no children’ are now breaking The Property Ombudsman’s Code of Practice and could face disciplinary action.

This follows the case of mum-of-four Lexi (pictured), who was evicted from her property in December 2020 and subsequently found it hard to find an agent or landlord who would accept her large family.

But The Property Ombudsman (TPO) will have an uphill battle on its hands – thousands of properties advertised on property portals including Rightmove, Zoopla and OnTheMarket feature ads with ‘No Children’ conditions often along with ‘No Pets’ and, despite a previous court case win by Shelter, ‘No DSS’ as well.

TPO’s decision to include such ‘No Children’ ads within its Code of Practice for Letting Agents on discrimination is not an outright ban; the redress scheme has said it will investigate agents whose landlords have asked for properties not to be rented to families.

Agents found in breach will be issued a warning and, in the case of a ‘flagrant’ or repeated breach, face expulsion.
But this is not an automatic ban and the practice is not illegal nor has a court judged it be in contravention of equality discrimination.

TPO’s Code does not specifically cover discrimination against parents but rather says: “You should provide a service to both landlords and tenants consistent with fairness, integrity and best practice”.

This was the case with ‘No DSS’ ads, a practice which in 2020 a county court said unfairly discriminated against a single mum-of-two with a disability, on the grounds of sex and disability under the Equality Act following a similar Shelter campaign.

LandlordZONE has approached the industry’s other redress provider, the Property Redress Scheme, for comment.

View Full Article: Shelter says agents and landlords who ban children are in breach of industry code