LATEST: Section 21 evictions increasing as landlords quit sector, says Citizens Advice

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Nearly half of all Section 21 eviction notices have been prompted by landlords selling their properties, Citizens Advice has revealed.

It also says that it’s seen a ramping up of evictions by landlords using Section 21 notices, handling some 2,000 cases last month.

This is the highest level of activity Citizens Advice has seen during a single month and a 25% increase on the same month last year.

To date, 2023 has been a record year for people coming to the charity for help after being served a Section 21 notice, with a 9% increase in demand for support in the first five months of this year compared to the same period last year.

Ironically, the surge seen by Citizens Advice is likely to be down to the Government’s plans to abolish Section 21 evictions within the Renters Reform Bill going through parliament.

As LandlordZONE has reported before, this has led to some landlords seeking to exit the market before the Bill becomes law and, despite a ‘beefed up’ Section 8 notice process, evictions become lengthier and more expensive.

Despite this, Citizens Advice is worried that the strengthened Section 8 measures could still be used by landlords to “unfairly force tenants out of their homes”, it says.

“New grounds in the Renters Reform Bill will allow landlords to evict tenants just six months into a tenancy if they wish to sell a property or move family in,” it adds.

“Worryingly, the new rules won’t require landlords to give evidence they have followed through on this once a tenant has left.”

Warning

Citizens Advice is also warning landlords may use excessive rent increases as a way of forcing tenants out, and is urging the government to close these loopholes in the Renters Reform Bill “to give tenants the promised greater protection and security”, it says.

The charity is also calling for the length of time new tenants are protected from ‘no fault’ grounds for eviction to be increased from six months to two years, and for steps to be put in place to ensure landlords who claim to need to sell a property can’t rapidly re-let it.

Crisis

Paul Shamplina, founder of Landlord Action, says: “We are in a rental stock crisis and I’ve been calling this looming crisis for months and months, something Citizens Advice are confirming.

“We have seen as 91% increase year-on-year of landlords issuing accelerated proceedings and the number exiting the market is unprecedented. We’ll soon see more doing it as the Renters (Reform) Bill goes through parliament and the abolishment of Section 21 draws nearer.

“But we need to prevent a landlord panic, and it’s important that they can feel reasssured they will be able to repossess their properties where appropriate but, looking at what’s already going on within the County Courts including the ongoing bailiff shortage, that’s already difficult.

“My worry is that good tenants with excellent track records in rent payment will get caught up in this and may become more fearful of eviction, which is not a situation anyone wants.”

View Full Article: LATEST: Section 21 evictions increasing as landlords quit sector, says Citizens Advice

Extra costs and red tape hitting landlords hard, mortgage chief warns

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Politicians and lobby groups are likely to continue blaming private landlords for the housing shortage largely created by the hostile regulatory environment imposed by the same politicians who want even more draconian laws, finds a new report.

One of the most bizarre aspects of this increased regulatory burden is that both politicians and lobbyists seem oblivious to the fact that the resulting costs will ultimately fall on tenants, according to the Intermediary Mortgage Lenders Association (IMLA).

Its report reveals that the cumulative effects of regulatory and tax changes affecting landlords’ business models – together with the recent current sharp rises in buy-to-let mortgage rates – risk putting increasing numbers of private landlords out of business.

Bleak

The report points to the fall-out from rent controls in Scotland, where many landlords have expressed a desire to quit, remarking: “While such discriminatory policymaking continues, the outlook for the PRS and the tenants who depend on it to put a roof over their heads will be bleak indeed.”

With two-year fixed-rate BTL mortgage rates above average net yields, producing negative gearing, it explains: “The relatively sudden increase in funding costs is causing a significant proportion of buy-to-let landlords to fail affordability assessments when seeking to refinance loans. 

“Some may seek to exit the market altogether, while others may be obliged to sell some properties and re-balance the debt on their portfolios.”

Kate Davies (main picture), executive director at IMLA, adds that over the next few years we can expect landlord costs to keep on rising.

She says: “The focus now needs to be on prompting increased investment in the sector and supporting landlords, whose operating costs risk becoming unaffordable. “If we don’t get the balance right, the result will be higher rents, and lower availability of properties – both of which are bad news for tenants and landlords.”

View Full Article: Extra costs and red tape hitting landlords hard, mortgage chief warns

Council cracks down on illegal HMOs with surprise inspections

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Two unlicensed HMOs have been discovered during unannounced inspections by a council in the North, which says more ‘surprise visits’ are on the cards.

Officers from Ashfiield’s environmental health residential team discovered six men living in a small flat on Outram Street in Hucknall (main picture) who were being charged more than £1,500 a month by the landlord.

Another HMO in Hucknall had a bypassed electric meter and no fire detection in place. A third property inspected in Sutton was found to be overcrowded with no heating, and damp and mould problems (see pic).

Officers took immediate action to ensure the tenants were safe and are now investigating all the landlords.

Regulations

Councillor Tom Hollis, executive lead for strategic housing and climate change, says the team has information to suggest there are about 80 HMOs in the Nottinghamshire district that might need a licence or which are smaller HMOs not complying with regulations.

“Over the coming months officers will continue with investigations of suspected HMOs as part of our dedication to improve housing and safeguard our most vulnerable residents,” says Hollis.

He adds: “The vast majority of landlords in Ashfield operate responsibly, but there is a small minority that don’t, and this can put their tenants at risk and impact on the wider community.

“Overcrowded properties often house the most vulnerable residents in the community, and we are committed to targeting unscrupulous landlords and improving the lives for private tenants.”

Pics: Ashifeld Council/Google Streetview

View Full Article: Council cracks down on illegal HMOs with surprise inspections

Guaranteed rent firm takes down website after LandlordZONE probe

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A guaranteed rent firm has taken down its website after being exposed for using spurious claims about its connections with reputable bodies.

London-based UK Housing Group Ltd, which boasts of being, ‘the largest social housing agency in London and the Midlands’ featured out-of-date logos on its website and was set to be investigated by Trading Standards.

The firm included logos from the Residential Landlords Association, which become the NRLA more than two years ago, along with the Safeagent accreditation scheme logo, although the body says it is not accredited. UK Housing Group was using two of its logos which are no longer in use, says a spokeswoman.

Ceased

“They are displaying the London Rental Standard logo,” she adds. “This ceased to operate in 2017. There is also a logo for Ombudsman Services Property – this redress scheme used to operate in the PRS…however, they withdrew from the sector in August 2018.”

However, following the LandlordZONE investigation, the website is no longer working. The Safeagent spokeswoman adds: “It was our intention to contact Trading Standards but when we had looked back for a screenshot from their website, it was no longer active.”

LandlordZONE has tried to contact UK Housing Group which, according to Companies House, is now late in filing its annual accounts.

Read more about Trading Standards.

View Full Article: Guaranteed rent firm takes down website after LandlordZONE probe

The North West is England’s leasehold hotspot

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There has been a surge in leasehold property purchases in the North West of England – thanks to affordability and the region’s fast-growing cities, research reveals.

The findings from peer-to-peer real estate investment platform, easyMoney, show that nationally

View Full Article: The North West is England’s leasehold hotspot