PLANNING: Landlords battle city council over its ‘anti-HMO campaign’

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Landlords locked in a battle with Porsmouth council over its approach to shared houses have branded its recent planning decisions an ‘anti-HMO campaign’.

Trouble has been brewing the city since councillors on its planning committee began overriding the council’s own planning advice and rejecting HMO or HMO extension applications.

This came to a head recently when landlord Anthony Lane successfully appealed their rejection of his application, which has cost him £40,000 so far to pursue, despite a planning officer recommending it be approved.

Local paper The News reports that the committee told lane the property would “fail to provide a good standard of living accommodation for the occupiers and represent an over-intensive use of the site”.

Criticised

But a planning inspector, who has overturned the committee’s decision, also criticised councillors for having a “disturbing lack of awareness of basic planning procedure and law’ and that the council ‘behaved unreasonably across several fronts”.

The council, which may have to reimburse Lane for this legal expenses, also faces further costs if other HMO planning application decisions are called in, it has been warned.

But the committee has doubled down, calling for new planning laws to be drawn up through its new local plan that would ban any increase in the size of an HMO with more than six bedrooms and a reduction in the proportion of shared homes allowed in the city from 10 per cent to five per cent.

Alwin Oliver (main picture), vice-chairman of the Portsmouth and District Private Landlords’ Association, believes the council has embarked on an anti-HMO campaign.

“HMOs are absolutely vital for housing students and workers in the city,” Oliver told The News. “Ironically many of the people who rely on them are employees of the city council”.

“Yet the committee is intent on squeezing smaller ones out of the city through licensing and some of the strictest planning requirements of anywhere in the county. They treat tenants and landlords like second class citizens.”

Pic credit: Josh Wright/JDPI media

View Full Article: PLANNING: Landlords battle city council over its ‘anti-HMO campaign’

EXPERT: Why are so many agents and landlords ignoring fees law?

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The Tenant Fees Act has been in place for nearly four years but is it shocking how many property professionals, also known as letting agents, are either not aware of its existence, or believe they can charge a fee as long as they call it something else.

I have looked at the 34 most recent cases heard by First Tier Tribunals relating to Tenant Fees Act and any financial penalties awarded.

Shockingly of these cases only ten were brought against landlords who were self-managing, the rest were all against letting agents, a number of which where high street national agents which, in my opinion should have known better.

The most common complaints raised by tenants were:

• Refusing to refund holding deposits 58.8%
• Early termination fees 14.7%
• Security deposit over 5 weeks 8.8%

For this last category all three were brought against self-managing landlords.

And in all but four of these cases, the Tribunal found in favour of the tenant and ordered the agent/landlord to refund them in part or full.

The tribunal awarded the return of over £11,500 of prohibited fees to tenants or £385 per case on average.

More worryingly many of the agents who defended their cases claimed the holding deposit was ‘a reservation cost’ or ‘advanced rent’.

It’s clear that several well-known agencies have recently tried to disguise a prohibited fee by claiming that an Assured Shorthold Tenancy has not been created and therefore the Tenant Fees Act doesn’t apply.

What is seriously concerning is the fact that landlords who are clearly taking heed of ‘unconscious incompetence’ and putting their trust in letting agents to manage their asset within the law are being let down at the very first (and can I say) rather basic hurdle.

If property professionals aren’t aware of the regulations how can the negative reputation surrounding the private rented sector ever improve?

Here’s my guide for both landlords and agents

What is a holding deposit?

A holding deposit is a payment made to a landlord or letting agent to reserve a property.

The holding deposit cannot be more than 1 weeks’ worth of rent and the property must be removed from the market.

Since the introduction of the Tenant Fees Act there are now have some strict rules that need to be followed when taking a holding deposit.

I will just point out that a holding deposit is not a legal requirement and doesn’t have to be taken, but if one is taken then the following must be done correctly.

Only one holding deposit can be taken for a property

It is not uncommon for some landlords and agents to take more than one holding deposit and then simply refund those who don’t pass referencing or fail to refund anyone in one of the cases at the Tribunal.

Receipt and Holding Deposit information

When a holding deposit it taken, it is a legal requirement to provide the tenant with a receipt for the funds as well as a document that sets out what the holding deposit it for, how long it will be held and the clear reasons for refund and for withholding it.

Failure to provide this to the applicant could mean you are subject to a find or having to refund the monies.

Provide a copy of the tenancy agreement

A draft copy of the tenancy agreement must also be given to the applicant when the holding deposit is take, this document can have water marks to show it is a draft, but it must contain the terms of the tenancy that the tenant will be expected to enter into

14 days to enter into a tenancy

Under the Tenant Fees Act, you have 14 days to enter into a tenancy agreement from the date the holding deposit is paid, if this is not possible, may be due to referencing not coming back in time, then the agent or landlord would need to sign and agreement to extent the time. If this is not done then the holding deposit must be returned in full on day 15.

When can a holding deposit be withheld?

Failed referencing

It is not uncommon for applicants to fail referencing, but this is not automatically a reason to withhold the holding deposit.

Only if applicants have provided false or misleading information that would have made you move forward with he let would give you reason to possibly withhold if they failed referencing.

Not entering into a tenancy

If the tenant fails to take reasonable steps to enter into the tenancy, then the agent or landlord could retain the holding deposit, but if it is the agent or landlord who is dragging their feet then the holding deposit should be returned if the tenant pulls out of the let.

If either party changes their mind

If the applicant changes their mind before the let is agreed, then the landlord or agent can usually retain the holding deposit, as long as the agent or landlord have not done something to force the tenant to change their mind.

Also, if the landlord changes their mind, then the holding deposit would need to be refunded as long as the reason for the change was not a deliberate act to mislead by the applicant.

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View Full Article: EXPERT: Why are so many agents and landlords ignoring fees law?

Registration and planning consent needed for holiday lets

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A consultation has been launched by the government to protect the UK’s ‘cherished towns’ that will see holiday homeowners being forced to get planning permission for letting their property and if it is in England, it will need to be registered.

View Full Article: Registration and planning consent needed for holiday lets

Landlords and agents in London see a big rise in licensing fines

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London’s councils look set to double the amount in fines they collected from landlords and agents last year under selective or additional licensing schemes, one company is reporting.

Geospatial tech firm Kamma says that in the last three months

View Full Article: Landlords and agents in London see a big rise in licensing fines

BREAKING: Government moves to restrict Airbnb lets in holiday hotspots

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The Government has revealed plans to force those seeking to convert homes in short-let properties within England’s holiday hotspots to seek planning permission first.

Such powers for local authorities are to be consulted on by the Department for Levelling Up, Housing and Communities prior to any legislation.

The aim of the initiative is to ‘help support local people in areas where high numbers of holiday lets are preventing them from finding affordable housing’.

Exemptions to the rules are also being proposed to enable those who let out their homes to make money from their properties for up to a specified number of nights in a calendar year without the need for planning permission.

The Government says it wants to ensure the country “reaps the benefits of diverse and sustainable accommodation and support the visitor economy, while also protecting local communities and ensuring the availability of affordable housing to rent or buy”.

Benefits

Secretary of State for Levelling Up Housing and Communities, Michael Gove adds: “Tourism brings many benefits to our economy but in too many communities we have seen local people pushed out of cherished towns, cities and villages by huge numbers of short-term lets.

“I’m determined that we ensure that more people have access to local homes at affordable prices, and that we prioritise families desperate to rent or buy a home of their own close to where they work.

“I have listened to representations from MPs in tourist hot spots and am pleased to launch this consultation to introduce a requirement for planning permissions for short term lets.”

The new proposals within the consultation come as the Department for Culture Media and Sport also launches a separate consultation on a new registration scheme for short-term lets, which is due to be introduced through the Levelling Up and Regeneration Bill, which is currently going through Parliament.

Culture Secretary Lucy Frazer adds: “This new world of ultra-flexible short term lets gives tourists more choice than ever before, but it should not come at the expense of local people being able to own their own home and stay local.”

Speaking on the BBC’s Today radio programme, Malcom Bell, Chair of Visit Cornwall. “In principle, [these planning rules are] a good idea but we need the public register first…it’s something that we’ve been lobbying for over the past five years.

“We need to get the balance right between the economic benefit of short-term lets and losing community vibrancy.”

Read more about short lets.

View Full Article: BREAKING: Government moves to restrict Airbnb lets in holiday hotspots

Property Investors Awards 2023 Nominations Now Open

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We are delighted to announce that nominations for the 2023 Property Investors Awards are officially open. This year there are 20 different award categories to nominate for, which is more than ever before.

We invite you to take this opportunity to submit your nominations and have the opportunity to be nationally recognised for your property investment successes.

View Full Article: Property Investors Awards 2023 Nominations Now Open

Sellers under pressure after 11 months of falling demand

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Homebuyer demand has now been down for 11 consecutive months – with new properties and agreed sales also taking a downturn, RICS reports.

The cautious market is still seeing house prices fall with agents predicting this trend will continue for the next 12 months.

View Full Article: Sellers under pressure after 11 months of falling demand