Service charge – do I have to pay?

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Hello, I own my leasehold flat in a block of 14 apartments. The management company has hiked the service charge from £2,500 to £6,500 pa.

There is some work to be done on the garden due to land slip but we’ve had no section 20 notice.

View Full Article: Service charge – do I have to pay?

Daily Telegraph wants to talk to student landlords

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Are you a landlord who rents to students or used to rent out to students? Then, Alexa Phillips, the personal finance reporter for the Telegraph would like to speak with you.

Alexa would like to talk to Property118 readers about:

• What are the challenges facing landlords renting to students?

View Full Article: Daily Telegraph wants to talk to student landlords

MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

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The Mayor of London has accused private landlords across the UK of taking rent worth £9 billion for homes that are ‘non decent’, £1.6 billion of which is paid for via housing benefit.

The figure is highlighted as, this morning, Sadiq Khan reveals his PRS research generated in partnership with campaigning group Generation Rent, covering not just the capital but other areas of the UK too.

Both have used strong language in their announcement. Khan says the situation is a ‘scandal’ while Dan Wilson Craw, Acting Director of Generation Rent says it is an ‘outrage’.

Their research is based on the Government’s existing definition of a ‘non decent home’ which includes properties that pose a risk to residents’ health or life, are in a bad state of repair, are cold or lack modern facilities. 

Housing benefit

The analysis reveals London has the highest ‘non decent’ rent spend, with landlords receiving £3.5bn in rent, £500m of which comes from housing benefit, every year from around 180,000 privately rented, non-decent homes in London. 

The second worst-affected region is Yorkshire and the Humber, where landlords are receiving nearly £1bn in rent, including around £130m a year in housing benefit, from around 160,000 privately rented, non-decent properties.

Meanwhile, private landlords in the South West are accumulating around £870m in rent, with more than £160m of this coming from housing benefit through letting sub-standard homes.

Khan says: “We are building a record number of new affordable homes in London, but we need to see national action to support renters. It is a scandal that some private landlords are profiting from letting sub-standard housing that is unfit for 21st century living.”

Craw (pictured) adds: “It is an outrage that not only can private landlords provide worse accommodation than social landlords, but they get paid more for it.”

The Government is due to bring in a specific and mandatory Decent Homes Standard for the PRS when its reform proposals become law, probably early next year.

View Full Article: MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

Short term/holiday lets?

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Hello, The rent from services like AirBnB are far higher than regular rentals. I estimated I’d only need to have my property occupied for around 1/3 of the year to make the same rent that I’d get for longer term rents.

View Full Article: Short term/holiday lets?

Court fines unlucky but rogue landlord £12,000 over unlicensed HMO

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A landlord in Buckinghamshire is the latest to receive a large fine for operating an unlicenced HMO.

Ahmad Kamal Younus, who owns a rental property on Ellsworth Road in High Wycombe, was recently found guilty of five offices Wycombe Magistrate Court by District Judge Sharma, including operating an unlicenced HMO and failing to ensure fire safety measures at the property.

Younus’ crimes would not have been discovered had it not been for a curious Environmental Health Officer who was visiting another property in the vicinity.

Although Younus, who operates through a limited company, initially tried to claim the detached suburban house (pictured) was his own family’s residence, investigations by the local council revealed six unrelated tenants living at the address.

It was in a poor condition including numerous fire safety hazards violations including a key turn lock (pictured, inset) on the final exit door at the rear of the property, contrary to Section 234(3) of the Housing Act 2004, which requires that this type of door can be opened from the inside without the use of a key.

Guilty

The landlord was taken to court over the illegal HMO and found guilty on all five charges, Judge Sharma concluding that he “must have known the house was an HMO”.

Younus was fined £5,000, ordered to pay costs of £6,878.96, and a victim surcharge of £190, totalling £12,068.96.

Mark Winn, Cabinet Member for Housing & Regulatory Services, said: “We are committed to ensuring that tenants live in safe and secure conditions. As part of this commitment, we will continue taking decisive action against landlords who put the welfare of tenants at risk by operating unsafe, unlicensed HMOs.”

The trial took place on 6 March 2023, at Wycombe Magistrate Court before District Judge Sharma. Mr Younus was found guilty on all charges, with the Judge concluding that he must have known the house was an HMO. The property was found to be in poor condition, with numerous fire safety violations.

Fine

Mr Younus was fined £5,000, ordered to pay costs of £6,878, and a victim surcharge of £190, totalling £12,068.

Mark Winn (pictured), Cabinet Member for Housing & Regulatory Services at Buckinghamshire Council, said: “We are committed to ensuring that tenants live in safe and secure conditions.

“As part of this commitment, we will continue taking decisive action against landlords who put the welfare of tenants at risk by operating unsafe, unlicensed HMOs.

“Landlords operating an HMO with five or more tenants must apply for a licence to ensure the safety and well-being of all residents.”

For more information on HMO licensing, visit the Buckinghamshire Council’s website.

View Full Article: Court fines unlucky but rogue landlord £12,000 over unlicensed HMO

Leasehold reform ‘will not be in King’s speech’ says former housing minister

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Former housing minister Lord Greenhalgh has expressed doubts that leasehold reforms will be included in the King’s Speech this autumn.

In an interview with Leasehold Knowledge, he said that despite being very complex legislation, the background work had been done.

“Even if you ran out of time and you weren’t able to get the Bill through Parliament, at least there’s something that can go through the pre-legislative scrutiny, so you get a better Bill at the end of it. I am just sceptical of getting it through both houses in time.”

However, he said the good news for leaseholders was that every major political party wanted it to happen. “It’s now become above party. Everyone is in favour of reform.”

Radical reforms

The government is preparing to bring in legislation which includes reforming the process of enfranchisement valuation used to calculate the cost of extending a lease or buying the freehold, ditching rules that prevent owners from buying the freehold to their property if a small part of the building is given over to commercial use, and allowing owners of leasehold houses to be able to extend their leaseholds by 990 years at a zero ground rent.

Speaking about rules limiting the number of landlords affected by the cladding scandal who face the full remediation bills for their block, Lord Greenhalgh admitted he would have liked to see the threshold set higher to protect smaller landlords and those with retirement properties.

“We were worrying about this when the Building Safety Act was passing through the Lords and there was a bit of ping pong around the number of properties, and we increased the number of properties from two to three,” he said.

“You always finish your time in government feeling that you’ve done as much as you can in the time that you had. And then you realize that there are areas that still remain unresolved.”

Read more about the Government’s leasehold reform.

Read the interview in full.

View Full Article: Leasehold reform ‘will not be in King’s speech’ says former housing minister

Minister slammed for ‘complacent’ and ‘appalling’ attitude to LHA freeze effects

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Landlords have slammed the Government for its ‘complacent’ attitude to the Local Housing Allowance (LHA) freeze and its effect on both tenants and landlords.

The comments by the NRLA follow an admission by Work and Pensions Minister, Mims Davies MP that he has made no estimate of the number of people unable to meet their housing costs due to the freeze.

This sets how much housing benefit some tenants receive towards paying their rent within the private rented sector but it has been frozen since 2019 and many of those in receipt of benefits now struggle to make up the difference.

As LandlordZONE reported last month, lender trade organisation UK Finance somewhat unusually blamed this ‘gap’ on a surge in the number of landlords in mortgage arrears.

Two million

Calling on the Government to unfreeze the LHA rate, its spokesperson said: “Approximately two million households rely on housing benefit to pay private rent, and re-coupling LHA rates with local rent levels will make more properties affordable to them”.

A recent analysis by the Institute for Fiscal Studies estimates that rented households in receipt of the LHA will receive an average of £50 a month less in benefit support than they would have got if rates had risen in line with rents.

Ben Beadle (pictured), Chief Executive of the National Residential Landlords Association, says: “The NRLA is appalled at the Government’s complacent attitude.

“Amidst a cost of living squeeze we need to do everything to support the sector and often vulnerable tenants in accessing the housing they need. “It beggars belief that ministers have frozen vital support for many renters with no idea how many will be unable to afford their housing as a result.

“The Government should unfreeze housing benefit rates as a matter of urgency.”

View Full Article: Minister slammed for ‘complacent’ and ‘appalling’ attitude to LHA freeze effects

When is a rogue landlord, not a rogue landlord?

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We often see the term ‘rogue landlord’ bandied about, but a story last week got me thinking: When is a rogue landlord, not a rogue landlord?’

It would appear that most people would think it was a term to describe a landlord who let a home without a roof

View Full Article: When is a rogue landlord, not a rogue landlord?

Landlords misusing section 21 notices is ‘overstated’

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Claims that landlords are misusing section 21 notices – the ‘no fault’ eviction process – are unfounded, one firm says.

Estate agents Leaders Romans Group (LRG) says it has carried out research and found that Section 21 is rarely overused

View Full Article: Landlords misusing section 21 notices is ‘overstated’

LAUNCH: Novel system that eliminates damp and mould in rented properties

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A new ‘mechanical ventilation with heat recovery’ (MVHR) system aims to provide the solution to landlords’ damp and mould problems.

Ebac’s self-managing, ‘hands-off’ eco-system is designed to be installed in a loft opening and works to continually extract polluted, humid air from a building and replace it with fresh air taken from outside through a heat exchange system.

The company’s Smart Control system adjusts airflow and performance levels based on live readings from the building’s internal climate, reducing energy usage and requires no programming.

The scale of the UK’s damp and mould problem continues to make headlines following the death of toddler Awaab Ishak which prompted the government to announce plans earlier this year to tackle mould within the private and social housing sectors through updated guidance and initiatives.

It also confirmed that the PRS’s new housing ombudsman would lead the battle against mould.

Andrew Hobson, Ebac’s sales and marketing director, says with the new legislation and retrofit requirements for commercial and residential buildings in the lead up to 2050, its system offers a more cost-effective solution for housing associations, councils and private landlords to ensure that their tenants live in healthier, more energy-efficient spaces.

He adds: “Our Smart Control feature means that tenants and homeowners do not have to touch the units, only requiring a filter change every 12-24 months depending on usage.”

Read more about damp and mould

View Full Article: LAUNCH: Novel system that eliminates damp and mould in rented properties