WARNING: Long-term Airbnb lets ARE same as traditional ASTs, rules judge

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An Airbnb landlord faces a £102,000 court bill after a judge ruled that his long-term let was effectively an AST which gave protection to the guests he had harassed.

Talha Abbasi let out his £3,435-a-month Maida Vale flat in November 2021 to Countess Christine Bolza and Count Niki Bolza, reports the Daily Mail.

They developed cash flow problems in the lead-up to the collapse of their property development company Niboco Ltd and started falling behind on their rent four months later.

Countess Bolza told Mayor’s and City County Court (main picutre) that Abbasi had repeatedly chased them for payment of the outstanding sums and left them without power, heating, and internet connection for 19 days.

They sued Abbasi for harassment and breach of lease, arguing that he had disturbed their right to quiet enjoyment.

Denied

Abbasi denied the allegations and claimed the flat was only rented out to the couple on the basis of an Airbnb holiday rental, which conferred limited tenants’ rights.

But the judge ruled that the lease had gone beyond a standard Airbnb holiday let and was effectively an assured shorthold tenancy with extensive protection for tenants’ rights.

The landlord had reported the countess to Westminster City Council’s environmental health department over claims that she and her family were living in a property that was unfit for human occupation.

The judge accepted this was part of Abbasi’s campaign to drive them out of the flat and ordered him to pay £12,924 compensation plus £90,000 to cover their legal costs.

Darrel Kwong, owner at DWK Consultancy, says: “The moral of the story is, be careful who you put in an Airbnb, as you could end up with an AST, and it’s highly likely you would have done zero compliance if you needed to get possession under a Section 21.”

Picture credit: Google Streetview

Read more about Airbnb lettings.

View Full Article: WARNING: Long-term Airbnb lets ARE same as traditional ASTs, rules judge

Rents begin to rise again

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Landlords are seeing that rents on new tenancies are beginning to rise again after a brief dip in January, a rental index reveals.

The findings from Homelet show that the average rent for a new tenancy in March was £1,184 per month.

View Full Article: Rents begin to rise again

BREAKING: ‘London landlord and agent fines on track to hit record high this year’

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This year London is on track to see the highest level of fines levied against rogue landlords and letting agents, it has been revealed as more and more councils begin operating licencing schemes.

Geospatial compliance platform Kamma says it expects to see a 50% increase in enforcement and a doubling of fines this year compared to 2022.

It predicts this will include total fines levied increasing from £1 million to £2 million and a total fines to date – since it began collecting data – of £8.6 million, boosted by a £500,000 jump in penalties during the first three months of this year alone.

During March, Camden council topped the council enforcement list in terms of the number of cases brought forward, followed closely by Newham and Waltham Forest. The London Borough of Hammersmith and Fulham still has the highest average value of fines per case at £19,800.

Eight new licensing schemes have launched so far this year, with at least five more planned to start in the coming quarter.

Record

Kamma’s CEO Orla Shields (pictured) says: “Every month, Kamma reports a new record increase in fines and enforcement seen in the private rented sector, and the start of 2023 is no different.

“This month we published a Licensing report that summarises all the trends seen in the PRS, including property licensing, enforcement, and licensing fines within the last three months.”

Although the increase in enforcement and fines is significant it’s likely to be just part of the picture. Kamma’s data is taken from the Mayor of London’s rogue landlords checking database but does not include fines issued by courts and Tribunals that aren’t referred it.

Read more: Legislation for landlords - everything you need to know.

View Full Article: BREAKING: ‘London landlord and agent fines on track to hit record high this year’

Thermal imaging surveys – a good idea?

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Hello, Thermal imaging surveys – are these a good idea? I am considering one for my own home to determine where there might be some obvious heat leak areas. Ideally each room scanned, as well as the building as a whole.

View Full Article: Thermal imaging surveys – a good idea?

Labour MP tells TV show that Section 21 evictions wrong in all circumstances

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Labour MP Diane Abbott has told TV viewers that bad landlords are those who use Section 21 to evict their tenants, whatever the reason.

Despite there being genuine reasons for using the notice, such as non-paying tenants or anti-social behaviour, the London MP appeared on Good Morning Britain to explain that a bad landlord was “somebody who uses the no fault eviction to get you out” and someone who “puts up the rent every three months, every six months”.

Talking about how the rental market was being plagued by “stratospheric rents” which meant younger people were never going to be able to afford to buy because every penny went on rent, she added: “That is what is causing renters so many problems. There’s no certainty because bad landlords just want to exploit the market.”

Abbott said a Labour government would encourage good landlords but bear down on bad landlords and put an end to no fault evictions.

Viewing charges

It would also ban landlords from charging tenants to look round a property. “Some of them are charging a relatively small amount – £30 – but some of them are charging hundreds of pounds.”

Presenter Kate Garraway told her that Good Morning Britain could only find one or two anecdotal cases where tenants had been charged £5 or £10 and reminded her that the practice was already illegal.

Abbott insisted many estate agents had reported the problem and added: “We would bring in a renters’ charter which would say landlords couldn’t charge to view a property – the current law doesn’t seem to be biting.”

View Full Article: Labour MP tells TV show that Section 21 evictions wrong in all circumstances

10 year fixed – consent to let dilemma?

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Hello, I’m thinking to fix my residential mortgage for 10 years with Nationwide which is due for renewal.

My concern is if my situation changes (a bit likely) and have to move out, will Nationwide be difficult with consent to let?

View Full Article: 10 year fixed – consent to let dilemma?

TAX: New rates rules for holiday rental properties go live

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New rules on holiday lets in England and Wales have taken effect which could force many owners to pay council tax instead of business rates.

Self-catering properties in England must now be available for letting commercially for short periods of 140 nights or more in the previous and current year, and actually let commercially for at least 70 nights in the previous 12 months, to continue to be eligible for business rates.

Properties in Wales will only be eligible for business rates if they are available to let commercially for short periods totalling 252 nights or more in the previous and current year, and actually let commercially for at least 182 nights in the previous 12 months.

The Valuation Office Agency (VOA) will look at whether the property was occupied immediately before midnight to establish whether it was let on a certain night.

This means that a property let out from Friday evening to Sunday morning would have been let for two nights for the purposes of meeting the self-catering criteria.

New rules

The new rules apply only to properties classified as self-catering holiday lets by the VOA within the broad use category of short stay accommodation in hotspots like Dartmouth (pictured); they don’t apply to hotels, hostels, and guest houses.

Valuation officers check that properties listed as self-catering meet the eligibility rules by asking owners for details via the Request for Information form, which will be sent out soon. A rolling programme will ask for information at different times during the 2023/24 operating year.

View Full Article: TAX: New rates rules for holiday rental properties go live

LATEST: Ministers to force landlords to rent out empty shops

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Landlords are being asked for their views on plans to forcibly rent out persistently vacant commercial properties to new tenants in a bid to rejuvenate high streets. 

High Street Rental Auctions – a new power for local authorities in England – is part of the Levelling Up and Regeneration Bill and the government consultation is looking for ideas on what lease arrangements should look like, possible costs, and the application of Minimum Energy Efficiency Standard requirements.

It says prolonged vacancy of shops and buildings is a blight on high streets which significantly impacts economic performance, negatively affects footfall, risks closing businesses and losing jobs, and forces people to move away.

Some of the worst affected areas include Manchester, North-East Lincolnshire, Luton, and East Staffordshire where vacancy rates range from 20% to as high as 28%.

Cooperation

The government also hopes to increase cooperation between landlords and local authorities, and to make town centre tenancies more accessible and affordable for tenants, including local businesses and community groups.

Auctions would allow councils to auction the rental rights of a commercial high street property that has been vacant for longer than 12 months in a 24-month period.

Read more about empty retail units.

Successful bidders would enter into an agreement for lease with the landlord, and then a lease of between one to five years following completion of any pre-tenancy works. The process would not apply in the case of properties whose landlords are actively seeking to fill their premises or where it is going to be redeveloped.

When a landlord doesn’t cooperate, they would get an eight-week grace period to find a tenant, after which time the local authority could arrange an auction and then enter into a lease agreement with the successful bidder.

The consultation ends on 23rd June.

View Full Article: LATEST: Ministers to force landlords to rent out empty shops

NEW: Huge demand for rental property pushes up average rent to £993 a month

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Demand for rental properties reached ‘exceptional high’ levels last month pushing asking rents for new tenancies to new highs, it has been revealed.

Referencing and rent guarantee firm Homelet, which processes approximately a million tenancy applications every year, says the average rent for a tenancy in the UK is now £993 a month when London is excluded, up 0.8% on February.

Its index reveals that the average London rent is just shy of £2,000 a month and that rents are rising fastest in the North West of England.

“As every region of the country reports a month-on-month rental price rise, it’s fair to say that demand for rental properties remains exceptionally high,” says Andy Halstead (pictured), CEO of HomeLet & Let Alliance.

“It had been interesting to observe a few months of decreased prices in London, but the capital appears to have recovered from a slight dip, in line with rises across the country.

“Given the insufficient housing stock and continued rising rents, rent guarantee becomes ever more essential for landlords and letting agents.

“As a group with rent guarantees protecting £1.5 billion in annual rents, we are acutely aware of how important it is for landlords to be protected should their tenants be unable to pay their rent.

“The lack of available properties means that the market is likely to continue to be very competitive, so landlords must remain vigilant, and tenants should be aware that finding a suitable property is proving to be a tricky task for many.”

Homelet’s index also reveals that the number of suspicious or fraudulent tenancy applications has increased by 10% over the past 12 months to some 50,000 ‘red flag’ references in total.

Read more about landlord insurance.

View Full Article: NEW: Huge demand for rental property pushes up average rent to £993 a month

Sadiq Khan calls again for a rent freeze in London

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London Mayor Sadiq Khan has again called for a rent freeze for tenants to be implemented in the capital.

He was responding to a news report that highlighted data from Rightmove that shows the average asking rent in London leapt by 15% over the year to reach £2,480.

View Full Article: Sadiq Khan calls again for a rent freeze in London