Leash-hold issues? Unusual landlords’ association launches

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Landlords who rent properties to vets are being encouraged to join a new group so they can discuss problems, exchange information and learn about what it means to be a professional landlord.

The Veterinary Landlords’ Association (VLA) which has yet to establish a website, already has 211 members who rent more than 400 properties to firms including IVC Evidensia, CVS, Vet Medics and VetPartners, and smaller independents.

VLA chairman Richard Rowe tells the Vet Times he’s been astonished by how rapidly the group has grown.

“Most of our members are former practice owners and may not fully understand commercial leases or that being a landlord is a big job in itself,” he says.

Unusual position

“Veterinary landlords are in a relatively unusual position, being small businesses leasing premises to multi-billion-pound companies. We hope to redress that imbalance to mutual benefit.”

Vice-chairman Richard Stephenson adds: “We realise the importance of developing good communication and positive relationships with our tenants. We have already had the property director of one of the big corporates – IVC – come to a VLA meeting to explain how he intends to improve their systems to the benefit of both parties.”

The group will hold online meetings every two months featuring speakers ranging from specialists in property law, to valuations, building renovations, dilapidations and rent reviews.

It hopes to offer members a platform where they can better understand lease terms, building valuations, insurance, and maintenance. It will also collect data on rental values, compliance of tenants with lease terms and negotiation outcomes, as well as supporting members during negotiations to renew leases or those selling practices.

View Full Article: Leash-hold issues? Unusual landlords’ association launches

Rocketing service charges leave leaseholders with hefty bills

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An 8% surge in average annual service charges has left leaseholders across England and Wales grappling with a £1,431 price tag, research reveals,

Estate and letting agents Hamptons say the main cause of this increase can be traced back to the implementation of new fire safety measures in 2018.

View Full Article: Rocketing service charges leave leaseholders with hefty bills

Prince William launches ambitious campaign to combat homelessness

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Prince William has embarked on a significant five-year crusade in a bid to eradicate homelessness, arguing that such a problem has no place in a ‘contemporary and forward-thinking society’.

The royal’s recent journey took him to housing and training initiatives in Brixton

View Full Article: Prince William launches ambitious campaign to combat homelessness

New fire regulations “hot” of the press, and the importance of inspections

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It used to be the case that you could let your residential rental property and forget it, leaving your tenants to enjoy the accommodation in peace, without any disturbances.

However, these days, with regular changes in the law, risks of none compliance and your insurance requirements, its fair to say that good property management involves regular tenancy inspections.

The Fire Safety (England) Regulations 2022 came into force on 23 January 2023 and there were changes to the to the Smoke and Carbon Monoxide alarm regulations in October last.

This article refers primarily to English law. It is not a definitive interpretation of the law. Every case is different, rules change over time and only a court can decide – always seek expert advice before taking action or not.

You should warn your tenants at the start of the tenancy that periodic inspections and safety checks will be made and a clause should be incorporated into your agreement to that effect. Tenants should also be made aware that they they are responsible for some of the regular checks themselves, such as testing fire alarms, and that they should report without delay any safety issues that need attention.

Since 1 October 2022, an update to the Smoke and Carbon Monoxide alarm regulations means that all rented properties in England must comply with new safety regulations – The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 which now apply to private and registered social housing landlords.

Smoke alarms are now mandatory in all private and social rented homes, at least one on every story, ideally near stairwells, and carbon monoxide alarms are to be fitted in rooms that have fixed combustion appliances such as gas boilers or fires, surprisingly not gas cookers, but providing for them would seem sensible in any case.

Landlords are obliged to repair or replace smoke and carbon monoxide alarms if they are informed by tenants that they are not working. Testing them should be, as a precaution, included in the regular inspection checklist. Non-compliance will attract fines of up to £5,000 per breach.

The latest regulations don’t say which type of alarms are to be used, but generally either 10-year battery alarms or ideally a hard wired interconnected system should be supplied. The smoke alarms should reach British Standard (BS) 5839-6 and carbon monoxide alarms should be BS 50291 compliant respectively.

Tenants should be tasked with regularly testing of the equipment between inspections, but landlords and agents should ensure, as with all appliances in a rental, that full operating and testing instructions are supplied and available to the tenant in the property’s Tenant File.

HMOs & high-rise buildings

There are additional safety checks required in these rentals where the premises exceed 11 metres in height. In this case the “responsible person”, be that landlord or agent or a combination must:

• Use their “best endeavours” to undertake checks of fire doors at the entrances of individual domestic premises at least every 12 months.
• Keep a record of the steps taken to comply. In any case, where access was not granted during any 12 months, the actions that the responsible person took to try and gain access should be recorded.
• Undertake checks of any fire doors in communal areas of the building at least every three months.
• Clearly mark fire exits with clear verbal and written instructions available to tenants

Fire door checks should include checking the safe operation of fire door self-closing mechanisms and also checking for signs:

• that the door closer actually closes the door freely
• that intumescent strips – smoke seals are present and in good condition
• no alterations or damage to a door’s glazing apertures or air transfer grille
• there are no gaps around the door frame and seals and that hinges are fitted correctly
• that the door closes perfectly around the whole frame

Always keep good records of your inspections and checks

The new regulations for high-rise rentals also say that:

1. the responsible person must ensure that fire safety instructions are prominently displayed, a copy is given to new residents as soon as possible and all residents every 12 months.
2. Information about fire doors is to be provided to new residents as soon as possible after they move in and all residents every 12 months.
3. These measures do not apply where there are no common areas or for houses let on joint tenancies, though good practice would say that this information should be provided in these situations.

As a landlord or agent (the responsible persons) it is your responsibilities to make sure the latest fire safety requirements are complied with. You will need written evidence that you have done everything within your power (that can reasonably be expected) to eliminate fire risks. Inspection checklists and risk assessments are the best way to evidence this.

High-rise and multi-occupied buildings

The new rules cover high-rise buildings, HMOs and single lets, some relating to premises over 11 metres high but there are others relating to over 18 metres which this article hasn’t covered. See the relevant legislation guides linked to above and below.

Further detailed guidance on the Fire Safety (England) Regulations 2022 is available here

Other legislation relating to fire safety in rental premises includes:

The Housing Act 2004, which also includes the Housing Health & Safety Rating System (HHSRS)

Above are the main requirements for fire safety in rental accommodation in England (other jurisdictions now vary in Great Britain). It includes making sure that the home is safe and that tenants can easily escape in the event of a fire.

The legislation emphasises the necessity of carrying out regular checks and maintenance and making timely repairs when defects are reported, or when discovered on inspections and risk assessments.

The Furniture and Furnishings (Fire Safety) Regulations as amended mean that all furnishings and furniture must meet certain specifications regarding fire resistance. The regulations apply to any items that contain upholstery, so not only sofas, sofa beds, and mattresses but curtains, pillows, and throws etc. These items must have attached fire safety labels or landlords must have receipts to prove standards and when they where purchased.

Building regulations for fire safety in residential homes, including new and existing dwellings, flats, residential accommodation, schools, colleges and offices are covered in Fire Safety Approved document B

The Regulatory Reform (Fire Safety) Order (2005) the Fire Safety Order – now provide a framework for regulating fire safety in all non-domestic premises including workplaces and the common parts in multi-occupied residential buildings used in England and Wales.

The Act covers fire safety in shared communal areas of HMOs and blocks of flats. Escape routes, hallways, stairwells, or shared community spaces are the concern of managing agents for these blocks and landlords should liaise with their agents about the specific requirements for each individual building.

The Fire Safety Order involves managing in these areas of fire safety in the property to ensure safety at all times. This can prove difficult when tenants fail to follow instructions, leave bikes, rubbish blocking escape routes and are generally careless of the rules. Nevertheless the responsible person must show that they have done their utmost to ensure the safety for all tenants. Regular inspections and risk assessments are therefore a necessity.

Fire extinguishers and fire blankets

Fire extinguishers are only obligatory in high-rise blocks, large licensable HMOs and multi-occupied commercial premises, but landlords and agents should go beyond the minimum requirements where possible. HMOs require at least one fire extinguisher per floor and one fire blanket should be provided for each kitchen.

As with hard-wired interlinked fire alarm systems in multi-occupied buildings – which should be tested weekly – extinguishers should be checked at the start of every tenancy, serviced and rechecked at least every 12 months. Tenants should be instructed on how to use this equipment and the types of fires it is best used on.

Annual fire risk assessments are a legal requirement for large HMOs, high rise blocks and multi-occupied commercial premises. They help identify safety hazards and possible causes of fires, and the precautions and remedial action landlords and agents should take.

There is no fixed or mandatory method of carrying out a fire risk assessment and they can be carried out by a “competent person”. A template such as the one linked above should be adequate. It’s also worth asking local fire and rescue services if they offer free fire safety inspections. There are also commercial fire safety consultants who will complete an inspection report for a fee.

LACORS is an organisation that has produced a useful guide to help manage the relationship

between the Housing Act 2004 and the Fire Safety Order by offering advice and assistance to enforcers, landlords, managing agents and tenants, amongst others, on ways to make residential buildings safe from fire, regardless of which piece of legislation is relevant.

Other important legislation which covers HMOs and the duties of managers of and multi-occupied buildings is the The Management of Houses in Multiple Occupation (England) Regulations 2006 for which there are many guides to the legislation’s implementation.

Summary

As a general rule you should make regular inspections of your rental properties. You should test and document these by way of inspection checklists and risk assessments, especially for HMOs, high-rise blocks or multi-occupied commercial buildings.

• Keep all exits clear from obstructions
• Make sure refuse is dealt with properly
• Control storage of inflammable liquids
• Batteries for mobile electric scooters are a high fire risk when left on charge, often in escape routes.
• Making sure necessary fire equipment: fire extinguishers, blankets fire and CO alarms are all installed properly, serviced and in good working order
• Clearly mark fire exits with clear verbal and written instructions made available to tenants
• Do annual gas safety checks and service gas appliances and flues
• Have the electrical system checked at least once every five years
• PAT test (Portable appliance test) appliances – advisory only

Consult your local authority regarding fire risks as requirements and interpretations may differ between authorities, they will usually inspect and advise. Keep yourself abreast of legislation and regulation changes which occur often.

View Full Article: New fire regulations “hot” of the press, and the importance of inspections

Rogue tenants should be named and shamed on a national register, says lawyer

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A petition has been launched calling on the Government to establish a national register of rogue tenants to help landlords and agents spot troublemakers before they move into properties.

The petition has been launched by property lawyer Nyree Applegarth (main picture) from West Midlands law firm Higgs LLP, who believes landlords and agents should be given more tools to spot prospective tenants with a history of poor behaviour, specifically via County Court judgements for non-payment of rent or damage to property.

Nyree says a ‘Property Possession Order Register’ would safeguard landlords against damage to their properties and non-payment and limit property disputes and associated litigation costs.

The petition, which can be signed here, follows the Government’s launch of a national register for landlords in England within its Renters’ Reform Bill going through parliament at the moment.

Nyree says she is aware that an applicant checking service would be controversial following recent comments by the NRLA that it could lead to discrimination.

But the lawyer claims that tenant referencing does not go far enough, saying that “just like when you apply for job, you will only ask for a reference from someone you know will respond positively.

“Even if the reference comes from an employer, they don’t really know how that person acts as a tenant.

“I am campaigning for the introduction of a Property Possession Order Register. That way landlords would be able to see what, if any, orders have been granted against that person in previous properties, either for non-payment or damage.

“This would help protect hardworking, honest landlords against poor tenants.”

Read more: ‘Rogue tenants cost me £1000s – they need to be stopped’, says landlord

Nyree also says that landlords face increasing financial and regulatory pressures now, and that a Property Possession Order Register, administered by the courts, would help “alleviate these concerns and could help reassure some landlords sufficiently to stay in the sector”, she adds.

“Property disputes would also inevitably reduce, along with the costs of lengthy litigation.”

To sign the petition, visit https://chng.it/5cPKPZyg

View Full Article: Rogue tenants should be named and shamed on a national register, says lawyer

NEW: Reverse PRS policies or face ‘perfect storm’ MP warns Government

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Labour MP Chris Bryant has pleaded with the government to rethink its housing policies or face a “perfect storm of a housing crisis” in his Rhondda constituency.

He told the Commons that the frozen housing benefit cap was now “completely out of kilter with reality” for most ordinary properties and added that taxation rules for buy-to-let properties needed to be changed.

“Otherwise, we will simply lose the [private] rented sector in its totality in constituencies such as mine and perhaps in many other parts of the country,” said Bryant.

He also blamed the bedroom tax, rising mortgage rates for landlords and the burden of Welsh housing quality standards which small, 19^th century properties would struggle to meet.

“Some [private] landlords are now so nervous…that they now often insist on substantial deposits beforehand,” Bryant told MPs.

“We have heard of landlords demanding 12 months’ rent in advance. There is no way most ordinary people could possibly afford that.”

Temporary

Between 2019-20 and 2022-23, there was a 69% increase in temporary accommodation placements across the local authority, up from 598 a year to 861 and costing it £1,633,000, up from £514,000.

He reported that it was not unheard of to have 250 applications for a single social housing property as soon as it came into the system. “There is no way on God’s earth that the authority, try as it might, and as inventive as it tries to be, can meet the housing need.”

Bryant’s pleas met with a tepid response from Housing Minister Rachel Mclean who said it expected the provisions in the Renters (Reform) Bill to cover Wales as well as England.

She added: “We have delivered our £11.5 billion affordable homes programme in England, and I encourage the Welsh Government to follow in our footsteps.”

Read a guide to the Renters Reform Bill.

View Full Article: NEW: Reverse PRS policies or face ‘perfect storm’ MP warns Government

Concessionary mortgages: a solution to the housing crisis for landlords and tenants?

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More landlords looking for a quick and painless exit from the PRS are considering concessionary mortgages, it has been claimed.

These little-known mortgage deals allow a sitting tenant to buy the property at a discounted price, based on a valuation.

The seller must be willing to sell for at least 10% below market value and then gifts the deposit to the buyer in the form of equity in the property – from 10% upwards. Buyers can use some of their own cash to get a bigger deposit.

Although landlords take a hit on the selling price on the open market, selling to a tenant means no estate agent fees, a speedy no-strings sale and guaranteed rental income until the property eventually transfers over.

Wanted to sell

One couple in Gloucestershire bought their home for £279,000 when the landlord told them he wanted to sell, despite it being valued at £310,000 – a discount of 10% – and were able to add some money as a deposit to get their LTV down to 85%, securing a mortgage rate of 4.4%. Their repayments are now only slightly more than the rent.

With buy-to-let becoming less profitable, some experts have suggested concessionary mortgages could become more popular.

Plausability

Lee Grandin (pictured) of Landlord Mortgages says they’re not widespread as only a handful of lenders offer them – and they’re mainly taken up by first-time buyers.

“I’m sure it will become more common as we have a shift in moving stock from landlords,” he tells LandlordZONE.

However, Grandin adds that lenders will look at plausibility, and if a tenant is offered a property at £150,000 and given a market value of £200,000 then this would likely not be plausible.

“Likewise, if a tenant has been in situ for only two months then this looks less plausible than a tenant who has been occupying for a few years.”

View Full Article: Concessionary mortgages: a solution to the housing crisis for landlords and tenants?

Landlords will have to hike rent by £614 to make a profit

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Landlords in London and the South East will need to hike rents by a staggering £614 per month to make a profit when remortgaging at present rates.

This means that tenants could see their monthly rent leap from £1,498 to £2,112

View Full Article: Landlords will have to hike rent by £614 to make a profit

Delayed heating bill issues?

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Hello, I have an apartment in Islington which is rented out. Since completion 10 years ago, the managing company has never been able to issue the hot water and heating bills in time.

Initially, it was a few months late but now they have yet to issue 2022 bills.

View Full Article: Delayed heating bill issues?

Landlords panic to fuel BTL remortgaging searches surge

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Landlords and homeowners alike scrambled to find out how much it would cost to remortgage after the Bank of England’s base rate increase last Thursday, a data firm says.

Twenty7tec says there was a 39% surge to 40,902 inquiries compared to an average Thursday –

View Full Article: Landlords panic to fuel BTL remortgaging searches surge