Majority of landlords won’t buy a property below EPC C

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More than 71% of landlords are unlikely to buy a property which has an EPC rating of less than C, according to new data.

The study by Foundation Home Loans and BVA BDRC, reveals the more properties a landlord has within their portfolio

View Full Article: Majority of landlords won’t buy a property below EPC C

‘Crumbling eviction courts must be fixed before renting reforms go live’

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The National Residential Landlords Association has warned the Government that the crumbling courts system for evictions will undermine its hoped-for reforms of the private renting sector unless they are reformed.

In an open letter to the Ministry of Justice, its Chief Executive Ben Beadle (main picture) warns Ministers that unless the courts system is reformed and waiting times for possession cases dramatically reduced, the Government’s plans to ban Section 21 evictions will “exacerbate an already serious crisis of supply of rented housing”.

Landlords seeking to evict tenants are already facing waits of up to six months to get hearings and, as LandlordZONE recently reported, Landlord Action’s Paul Shamplina (pictured) believes court delays for landlords are the “worst ever he’d seen during his career within the private rented sector”.

The Government has also been slammed by MPs for the parlous state of the courts – a recent report by the Levelling Up, Housing & Communities Select Committee warned that: “It is not clear whether the Government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms”.

Beadle wants Ministers to bring forward initiatives to speed up hearings including the digitalisation of the court process, plans to increase the number of court staff dealing with possession cases, target processing times and publish their own assessment of the impact the Bill will have on the courts system.

Failing users

“The court service is failing its users and has done for some time,” he says.

“Court wait times are a major issue for landlords – particularly those who need to repossess property from anti-social tenants or those individuals who are in extreme rent arrears.

Beadle adds that, before the second reading of the Renters (Reform) Bill, the Government must set out clearly what court reform means and bring certainty to the sector.

“Section 21 was introduced to give property owners the confidence to bring their property to the market in the knowledge that they could deal swiftly with problem tenants,” he adds.

“With its abolition planned, landlords must have the same confidence that having given their tenant a legitimate reason, their repossession claim will be processed without delay.”

The evictions/possession system is not the only one creaking – the Law Society this week highlighted how “terrible backlogs in our criminal courts continue to spiral out of control”.

Picture credit: Twitter/X/Ben Beadle

View Full Article: ‘Crumbling eviction courts must be fixed before renting reforms go live’

Ministers have ‘needlessly spooked’ landlords with renting reform plans

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A leading buy-to-let mortgage broker has said the Government has ‘needlessly spooked’ landlords with its rhetoric designed to ‘curry favour with tenants’.

The comments have been made by Gavin Richardson, MD of Mortgages for Business, who says the Government’s plans to reform evictions including abolishing Section 21 notices are not the huge threat that many think it will be.

He was responding to reports in the Financial Times that a group of Conservative MPs including several within the Government whips office, have been calling for the Renters (Reform) Bill to be watered down.

“I want to reassure the whips that we don’t think the reforms will prove to be that bad for landlords,” says Richardson.

“First, sensible landlords — even those working in the Conservative whips’ office — rarely turf out good tenants who pay their rent as they want them to stick around. 

“So this reform will disproportionately hit the minority of bad landlords who have abused Section 21 notices, rather than the reputable end of the market.

“Second, tenancies can still be ended if there has been a breach of the tenancy by the tenant.  And the government has said it will introduce a new ombudsman to settle disputes between tenants and landlords without the need to go to court. 

“The government has also promised to digitise the courts’ agenda ahead of these reforms to ensure a swift resolution to these cases. That will speed up processes where possession cases require them.

But this is somewhat optimistic given recent complaints from both eviction experts and the Law Society that court delays are getting worse, not better, for landlords.

Real danger

Richardson continues: “Third, the whips will always be able to end a tenancy if they plan to move back in or sell it — that was the real danger of this reform, anything that inadvertently risked landlords’ ability to realise the value of their housing assets through disposal.”

“The loss of full tax relief on mortgage interest payments for individual landlords, and the stamp duty surcharge on additional property purchases were far more significant for landlords.”

Nearly 90 MPs of all political hues are landlords who collectively operate some 167 rental properties each providing £10,000 or more in rental income – the threshold at which such income must be declared as a ‘member’s interests’ filing.

Read more about the Renters Reform Bill.

View Full Article: Ministers have ‘needlessly spooked’ landlords with renting reform plans

Big London council to begin regulation for over 8,500 HMO properties

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Wandsworth Council is to launch a consultation into borough-wide additional licensing and a selective licensing scheme in three of its wards.

The proposed selective scheme covers an estimated 8,600 properties in Tooting Bec, Tooting Broadway and Furzedown, where it predicts a prevalence of the most serious housing hazards.

It says it could then investigate expanding the scheme across other areas with the Secretary of State’s approval. 

Wandsworth has had a mandatory HMO licensing scheme since 2006, under which 615 licensed properties are on the HMO register.

The council reports that the five-person threshold means some landlords opt to reduce occupancy levels to avoid licensing and the increased scrutiny it delivers.

Grown rapidly

The PRS makes up more than 30% of housing in the borough and has grown rapidly in recent years, partly due to the unaffordability of home ownership in Wandsworth, with the average house price now topping £650,000.

Meanwhile, it has seen a steady increase in the number of service requests made by private sector housing tenants reporting disrepair issues each year, up from 449 in 2017 to 742 in 2021.

Aydin Dikerdem (pictured), cabinet member for housing, says: “The schemes we are proposing would mean that the council is able to take more robust action on sub-standard homes and increase the support available to tenants – improving standards in the private rental market and creating a fairer borough for everyone.”

After the 12-week consultation, its housing committee will decide whether to implement the schemes.

Join the debate on LandlordZONE Forums about HMO licencing in the borough.

View Full Article: Big London council to begin regulation for over 8,500 HMO properties

How to chase back the outstanding rent from tenants?

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Hello, I have rented my house to a couple for 2 years with 2 children. The male tenant told me he’s split up with his wife and moved out, leaving the female tenant behind with their two children.

The male tenant has a well-paid job as a driver and the wife is now on benefits.

View Full Article: How to chase back the outstanding rent from tenants?

NEW: Rents still rising fast in London as up to 38 tenants chase each property

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Latest rental market data from London reveals a private rental sector still on fire as rents rise by 11% year-on-year, says agency Foxtons.

This has been driven in part by a seasonal six percent surge in demand during August as those returning from holiday start their search for a new home and less organised students seek properties to rent ahead of the semester start.

But the most extraordinary figures are the average numbers registering their interest in homes which remain high at 23 per new rental instruction overall but reaching 38 per property in East London.

Rents are likely to continue going up in the short term – Foxtons says its analysis of Zoopla data revealed some 35,000 new properties coming onto the rental market, an eight percent increases year on year.

Ease off

But in the medium to long-term, pressure on the capital’s private rental sector should reduce as the number of renters registering to look for rental properties begins to ease off, the data shows.

Higher rents will hopefully persuade fewer to quit the sector as many face higher costs as mortgage rates continue to remain high, although London has a long way to go before yields compare favourably with the rest of the UK.

A top ten list of ‘best places to rent out property’ issued by DigitalLoft over the weekend revealed all are outside of London and the South East with New Newcastle upon Tyne at poll position featuring a gross rental yield of 4.58%.

Gradual

“August remained in line with our expectations and there was gradual, steady market growth throughout the year,” says Gareth Atkins, Managing Director of Lettings at Foxtons (pictured).

“Compared to July, demand rose, supply fell and prices remained consistently high.

“But competition was not nearly as frenetic as it was in 2022 and as such. Across our office network, we continue to see more landlords requesting our management service to protect their asset from a financial and compliance perspective.”

View Full Article: NEW: Rents still rising fast in London as up to 38 tenants chase each property

Older tenants fear being evicted as rents rise

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Almost half of older private tenants had their rent raised in the past year, and more than one in five can no longer comfortably afford to pay their bills, a survey reveals.

The ‘Hidden Renters’ report published by Independent Age

View Full Article: Older tenants fear being evicted as rents rise

Damp, mould and condensation – YOU are to be held responsible

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Tom Entwistle comments: That’s it then! Landlords (private and social), according to guidance put out by the Housing and Health secretaries Michael Gove and Steve Barclay respectively, are to be held responsible for damp and mould in rental property, regardless of the cause.

The latest government guidance on the matter “Understanding and addressing the health risks of damp and mould in the home”, Published 7 September 2023, makes this very clear:

“Landlords must ensure that the accommodation they provide is free from serious hazards, including damp and mould, and that homes are fit for habitation. They must treat cases of damp and mould with the utmost seriousness and act promptly to protect their tenants’ health.

So far, that’s always been the case and is a legal requirement, but what follows on is new:

As this guidance also makes clear, tenants should not be blamed for damp and mould. Damp and mould in the home are not the result of ‘lifestyle choices’, and it is the responsibility of landlords to identify and address the underlying causes of the problem, such as structural issues or inadequate ventilation.”

Something to bear in mind about this. We are talking about government guidance here, not primary or secondary legislation. It is something to be followed seriously, but it does not mean you won’t have any sort of defence if you have behaved responsibly as a landlord and the tenants have let you down.

Nevertheless the guidance is well worth reading carefully. You will need to be attentive to the state of your rental properties which, to my mind means regular inspections. I suggest these be formalised with good checklists and good documentation. Remember, there are people who are in judgement of you on this, they often have little or no practical experience of the problem, so your documentary evidence is crucial, it must be clear and conclusive.

It’s just another task in the already overtaxed role of the landlord, but one of increasing importance. On the plus side it is perhaps a reasonable excuse to impose on the lives of your tenants and carry out regular inspections.

Tessa Shepperson, a property specialist solicitor who writes and runs the LandlordLaw.co.uk service says:

“As far as I cans see, this is just a guidance document. It is not secondary legislation (for example).

So far as a Judge is concerned, the guidance is something they should refer to when making a decision, and it will be very ‘persuasive’. However, Judges are not obliged to follow the guidance if they do not consider it appropriate (although they would probably need to explain why in their Judgment if so).

Damp is always difficult. Things are different since the coming into force of the fitness for human habitation rules as now, if a property is badly designed and subject to damp for that reason, a landlord will probably be liable. They can no longer push it all onto the tenants if there is no actual disrepair.

However, I don’t think that this totally excuses tenants – they still have a legal obligation to behave in a tenant-like manner.

So if the tenants bring a claim, and the landlord believes that they are not behaving in a tenant-like manner, he may have a defence, provided he can prove this, on the balance of probabilities.

For example, if the property has been damp and mould-free for the past 20 years and he has photographs showing misuse of the property by the tenants in ways that will encourage the damp and mould, then I think he will have a defence.

At the very least, the tenants will have any award reduced due to contributory negligence.

However, landlords should be aware that the law has changed and the balance has tilted more in favour of tenants.

Personal experience

As a landlord of forty years or so standing I think I have a good understanding of what causes mould in a residential home, and as all experienced landlords know, most of it is caused by the way the occupants are living. Controversial as that statement may seem, which goes totally against that second paragraph of the guidance above, it is in my view incontrovertibly true.

You know this for sure when you have a property which has been free from mould for a whole series of tenants, then one comes along and before long the tops of the window openings and ceilings are becoming covered with the horrible black spots and dark grey mould, a picture we see so often on those TV reports, where the landlord always cops for the blame.

I once had a commercial shop tenancy let to hairdressers. It had a perfectly adequate heating system and a tumble drier in the back of the shop. But to save money the tenant insisted on drying wet towels on a large rail above a portable LPG heater – these heaters produce copious amount of moisture, and along with that from the drying rowels it amounts to a lot of moisture. Result, a 40 foot long shop ended up with a ceiling covered in black mould and spores.

I was concerned about the safety aspect of this heater as we had two floors of offices above, so I called in the local fire officer in an attempt, unsuccessfully as it turned out, to try to persuade the tenant to change her ways. I think this demonstrates the difficulties landlords have with this issue.

Not all one sided

It has to be said that there are a number of contributing factors that can be attributed to the landlord and for which they are undoubtedly responsible.

Given the right circumstances, condensation and mould can occur in any property, from a new-build house or flat to the grottiest Victorian terrace, the latter representing a substantial part of the rental property stock in the UK.

The older properties are the most likely to suffer from condensation and mould because they are usually poorly insulated (solid walls), no wall or underfloor insulation, and perhaps poor loft insulation, and if there’s no double glazing, they are even worse.

The heating systems are often not up to par, with at worst open or gas fires, or storage heaters. Gas or oil central heating is better but how old is the boiler? Are the radiators properly sized and do they have thermostatic controls?

Given these sorts of rentals, typical of the bottom end of the rental market, it’s perhaps not surprising that the tenants are living in cold and damp substandard conditions. They find it too expensive to heat the property properly, so they skimp on heating to save money. It never gets up to a temperature that keeps damp and condensation at bay, by having the whole house nice and warm.

The walls become so deeply cold that moisture is absorbed instantly on contact. It becomes a vicious cycle where cold becomes colder, black mould builds up, and eventually the plaster and masonry start to decay and crumble.

Ventilation is non-existent in these properties because the slightest draft introduces more cold air for the shivering tenants. This in turn exacerbates the condensation problem: Because it’s so cold all the windows are kept tightly shut, and I’ve even seen some examples where window trickle vents and extractor fans were “blocked up” with rags to stop a flow of cold air from making it even colder.

What causes damp?

There are four main causes of damp:

(1) rising damp which emanates from the foundations up and shows itself on the lower parts of ground floor walls, skirtings, floorboards etc., and if left unchecked can lead to wet and dry rot in floor timbers.

(2) penetrating damp which results from faults in the structure of the building, leaking roofs, gutters, downpipes, window frames, wall cracks etc. This can also damage the fabric of the building if left unchecked and again can result is wet and dry rot.

(3) condensation, perhaps the most common cause of black mould and mildew on fabrics, clothes, walls and wallpaper and ceilings. It appears on the upper parts of walls, windows and on the ceiling. It is caused by steam and damp moist air flowing upwards in the home (hot air is lighter than cold air, so it rises) and settling on cold surfaces such as windows, walls and ceilings.

(4) One further cause is water leaks from water pipes, waste pipes, baths, showers and toilets, which would cause staining and eventually mould and wet and dry rot in timbers. This usually appears on floors and ceilings.

Two main causes of condensation?

The most common causes of condensation damp are (1) poor ventilation and (2) poor heating.

• Poor ventilation from kitchens and bathrooms or from drying clothes on radiators, which if not vented out at source, produces lots of warm moist air (steam) which will rise in the home and condense on the colder surfaces, always at the top of the rooms in the home.

• Poor heating means that there are lots of cold surfaces for warm moist air to settle on. Even breathing by the occupants in a really cold house will lead to condensation.

This all produces the black mould that is so injurious to health for those people who are living with it, and as we’ve seen in the case of poor little Awaab Ishak, dying with it – the toxins contained in some types of condensation mould spores are quite deadly when breathed in over a period of time.

Landlords have to take responsibility

Would you want to be held responsible for the death of a tenant’s child like Awaab Ishak? In his case the family were in a social housing complex, a flat which became riddled with condensation and mould which they lived with for a number of years, despite complaints to their landlord. I would guess your answer is no to that question, you wouldn’t want that on your conscience!

So the government is suggesting that you are responsible for the health and welfare of your tenants no matter how they behave in your property, that much is now very clear. How can we make sure we protect our tenants and ourselves?

Implications for landlords and agents:

1. They need to carry our regular inspections of their properties and if there are any signs of mould appearing, they need to take action
2. They need to educate their tenants as to the behaviour that will lead to damp and mould appearing in the property – best to put this in writing every winter season as it may prove useful evidence of positive action – Helping tenants with damp and mouldy housing (England)
3. The property should be up to environmental standards – a requirement of the EPC rating soon to be “C” with, ideally, a modern condensing heating boiler, good insulation throughout – floors, walls, loft, double glazing and draughtproof windows and doors.
4. Good ventilation systems, with window trickle vents, extractor fans in kitchens and bathrooms (light switch controlled or auto-humidity controlled) or, even better, a full PIV* ventilation system. See: A Brief Guide to Mold, Moisture and Your Home
5. Have a tenant survey questionnaire form for all your outgoing tenants. This will form a vital evidence history to show that previous tenants have not experienced any damp and condensation problems.
6. If you want to go to extreme lengths you could think about temperature and humidity monitoring devices, which are available.
7. Remember, if you do have a bad case of damp and mould then great care is needed in its removal. You need specialist chemicals and personal safety equipment (PPE) to remove it efficiently and safely. Think about using professionals to do this. See: A Brief Guide to Mold, Moisture and Your Home

There are now many ventilation system installers on the market who will come along and give a free survey to any landlord wanting to improve the property by making sure that however the tenant behaves, black mould will never appear.

* PIV (Positive Input Ventilation) units provide whole house ventilation and have been proven as suitable options to deal with condensation and mould in homes. PIV units are available for Loft and Wall mounting (houses and flats) and are available with heater and filter options to enhance comfort and indoor air quality. Positive Input Ventilation (PIV) is an energy efficient way of pushing out and replacing stale unhealthy air with drier fresh air. This system will gently introduce filtered air into the home and increase the circulation of fresh air around the property, improving indoor air quality and it will prevent condensation and mould.

View Full Article: Damp, mould and condensation – YOU are to be held responsible

Join the debate and experts at the next National Landlords Investment Show

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LandlordZONE readers are invited to join a gathering of like minds being organised by the National Landlords Investment Show in Elstree, Hertfordshire on 27^th September 2023.

Speakers at the free event will be discussing some of the hottest issues facing landlords at the moment and also offering advice on many of the key areas of interest to them.

Those on the panels at the show will include Nigel Lewis, editor of LandlordZONE and Paul Shamplina of Landlord Action (both main image).

Industry figures

Other appearing on the various panels being organised for the day, which is taking place at the Hilston London Elstree hotel, include NRLA chief Ben Beadle (pictured), tax expert Sean Hughes, property law figure Simone Ritchie, social landlord and agent Elliott Young, PRS lawyer Carly Jermyn and property development guru Ritchie Clapson.

Also appearing will be those with insurance, property services and smoke alarm expertise, all taking place at the same time as an exhibition of some 40 companies offering services and products to landlords and property managers.

To sign up for your FREE ticket visit the National Landlords Investment Show website to register and find out more.

View Full Article: Join the debate and experts at the next National Landlords Investment Show

Bill is solution to non-existent problem in student market, says landlord group

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Changes to the student rental market under the Renters (Reform) Bill could result in even less protection for students, according to York‘s Residential Landlord Association.

It believes moving from fixed-term tenancies to periodic tenancies might prompt landlords to offer licences by providing services to students alongside their occupancy, such as in-room cleaning, in a similar way to the Purpose Built Student Accommodation (PBSA) sector.

Others will claim, incorrectly or falsely, to enter into licences, says the landlord group. In either case, students will be deprived of not just the protections provided by the Bill, but also the current protections, such as notice periods in the event of rent arrears, and security deposit protection.

Simple solution

“Without a simple solution, we are concerned that landlords would be forced to move to a fixed-term room licence model similar to PBSA just to make sure the market operates as it is now,” chair Andy Simpson (right) tells LandlordZONE.

Property lawyer David Smith helped York RLA conduct an impact assessment which found that the loss of fixed-term tenancies would effectively destroy the current arrangement between students and PRS landlords, who would have no certainty that students were going to leave on any specific date unless they had given two months’ notice.

Similar code

Those in the PBSA sector who have signed up to the Unipol Code of Practice will be able to exempt themselves from the Bill and grant fixed-term tenancies. The group argues that landlords in the PRS could sign up for a similar code.

York RLA explains that there are already massive shortages in the city; the PBSA only houses 30-35% of students, with the PRS housing more than 50%. It adds: “York can ill afford to lose any landlords from the student accommodation sector and every one that leaves will lead to five or more students either being unable to take up a university place due to a lack of accommodation or being forced to live some distance away.”

View Full Article: Bill is solution to non-existent problem in student market, says landlord group