Beadle slams claim that landlords will ‘game new eviction rules’

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Landlord leader Ben Beadle has given Shelter a run for its money during a parliamentary committee evidence session on the Renters (Reform) Bill.

Beadle, who is chief executive of the National Residential Landlords Association, wondered out loud during the meeting whether campaigning groups like Shelter would only be happy once private landlords were ‘publicly flogged’ or ‘waterboarded’ if caught flouting the new proposed eviction legislation within the bill.

He was referring to earlier evidence by Shelter’s representative at the hearing, Tarun Bhakta, during which he repeated the organisation’s recent claims that the bill contains loopholes that will enable landlords to circumvent its tighter Section 8 notice eviction rules, and called for tough sanctions if landlords are caught doing it.

Intention

These will require landlords seeking possession of a property to move back in or sell it to prove their intention in front of a judge.

“The landlords will have to be satisfied that the landlord is telling the truth about selling a property – for example – and last time I checked, if you lie in court that’s perjury, which I think is a pretty strong disincentive,” said Beadle.

He went on to criticise Shelter’s suggestion that landlords should be fined severely if they relet a property following an eviction based on the assertion that they want to sell up or move back.

Housing minister Rachel Maclean (pictured), who gave evidence after Beadle, was asked what her Government will do to stop landlords gaming the system in this way.

Read more about the Renters (Reform) Bill.

She replied that tenants would be given access to the courts if the eviction was found to be illegal; that the new PRS ombudsman to be created for tenant/landlord disputes would also handle such complaints; and that the Government and local authorities would ensure private tenants understood their new rights.

Watch the hearing in full.

View Full Article: Beadle slams claim that landlords will ‘game new eviction rules’

Corporate student rooms giant to ‘clean up’ as private landlords quit market

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The supply of purpose-built student accommodation can’t keep pace with growing student demand as HMO landlords continue to leave the sector, according to the UK’s largest PBSA provider.

Unite Students reports that reservations for the 2023/24 academic year are at record levels, with 98% of rooms now sold, which CEO Richard Smith says reflects strong demand from both students and universities and the attractiveness of its fixed-priced all-inclusive offer.

“This supports an improvement in our rental growth guidance to around 7% for the 2023/24 academic year,” he adds. “Our strong leasing performance will continue to support our property valuations as the market adjusts to an environment of higher interest rates.”

Housing need

As traditdional HMO landlords leave the sector prompted by additional regulation and a looming overhaul of rental contract law, Unite is ‘uniquely positioned’ to address the housing need, says Smith, through its best-in-class operating platform, university relationships development and asset management capabilities.

Demand remains strong from both university partners and students booking accommodation on a direct-let basis, reports the firm, as universities increasingly rely on partners to meet their accommodation needs. It is committed to delivering four new schemes with a total development cost of £339 million.

Unite’s UK Student Accommodation Fund property portfolio – comprising 27,924 beds in 71 properties – has been valued at £2.9 billion, a 1.2% increase on a like-for-like basis during the last quarter.

Its London Student Accommodation Joint Venture investment portfolio – comprising 9,716 beds across 14 properties – is worth £1.9 billion, a 1.1% increase.

Pic credit: Unite Students.

View Full Article: Corporate student rooms giant to ‘clean up’ as private landlords quit market

Kerching! Five tenants pocket £29,000 after landlord fails to licence HMO

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Five tenants have shared a whopping £29,000 Rent Repayment Order after their landlord failed to licence its HMO.

East London-based We Let Rooms Ltd did not defend itself at a First Tier Property Tribunal or come up with a reasonable excuse for the offence relating to the property in Orme Road, Kingston Upon Thames (pictured).

The tenants claimed the firm was slow to respond to issues and would only deal with them superficially, including a leaky roof, leak in the bathroom and ageing cooker.

They were also told by the local housing authority that some of the doors did not meet fire safety standards, and there was no fire separation between the bedrooms and the kitchen.

Patchy

Although the tribunal found that there was some “patchy evidence” of issues relating to fire doors, it said We Let Rooms managed and let out several properties professionally and should be held to a higher standard than someone who simply let out a single property but was otherwise not involved in the property world.

It ruled: “Even if it could be argued that the applicants did not suffer direct loss through the respondent’s failure to obtain a licence, it is clear that a large part of the purpose of the rent repayment legislation is deterrence.

“The respondent’s conduct has not been good. In our view, this justifies increasing the repayment award from 70% to 80% of the maximum amount payable,” the judge said.

The RRO awards ranged from £4,560 to £7,520, with an order to pay £300 costs.

Read the Tribunal decision in full.

View Full Article: Kerching! Five tenants pocket £29,000 after landlord fails to licence HMO

Shelter demands 12 months of no re-letting in new Bill

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The Levelling Up, Housing and Communities Committee has been told that the Renters (Reform) Bill needs strengthening to prevent landlords from using a loophole to evict tenants for no reason.

The follow-up meeting heard that under the proposals

View Full Article: Shelter demands 12 months of no re-letting in new Bill

Are you a Birmingham Midshires customer?

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We remember the times when Birmingham Midshires allowed us to submit 100+ mortgage applications for one Client, in one week. Those were the days, but even now, with all of the new stress testing calculations, LTV caps, and restrictions on how many properties BM will allow you to have with them

View Full Article: Are you a Birmingham Midshires customer?

‘This is why landlords must approach guaranteed rent schemes with caution’

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An Essex landlord has learned the hard way that unpicking rent-to-rent or ‘guaranteed rent’ agreements can be a lot more difficult than many might believe.

In a case handled by the Resolution Department Lead Suzy Hershman (main picture) and her team at HFIS, a landlord who had signed up to have her detached house provide a guaranteed income through a rent-to-rent contract wanted to end the arrangement after relations with the managing agent soured.

The landlord gave the agency, which had already signed up and moved in tenants to the property, three months’ notice stating she wanted ‘vacant possession’.

But the agent declined her request, and the complaint was brought to the HFIS team for resolution.

Vulnerable

During conversations with both parties, it was discovered that the tenants living at the house had been placed by the local authority and were ‘vulnerable’ – so evicting them at short notice was neither practical nor fair.

Also, the rent-to-rent contract used here is a ‘mesne’ agreement due to three parties being involved. Mesne means ‘intermediate’ in old French – so you have a tenant, a ‘head tenant’ (or intermediate) and the owner of the property (the landlord).

Common law makes it clear that unless the original agreement between tenant and managing agent is or was unlawful – which was not the case here – then the only way to end the agreement is for the landlord to evict the ‘head tenant’ (i.e. the managing agent) and the sub-tenant (the people living in the property) through the courts.

No beef

The landlord had no beef with the family living in the property, but rather with the managing agent which she says had been maintaining the property poorly.

HFIS found that the agent had not explained to the landlord why it could not ‘hand back’ the property but, on the other hand, the landlord’s desire for vacant possession of the house was ‘unreasonable’ in the circumstances.

The landlord is left with few options now but is taking legal advice separately about how to proceed.

What are the lessons here?

• Vet rent-to-rent agencies very carefully – for example what’s their office like? How do their staff talk to people on the phone? Are they accredited and do they have valid redress membership displayed in their windows or website?

• Landlords should enter into rent-to-rent agreements with great caution and be well informed. For example, be aware that if they want to end this kind of agreement early, they’ll have to do it through the courts, assuming the initial agreement between agent and tenant was lawful and fair.

View Full Article: ‘This is why landlords must approach guaranteed rent schemes with caution’

Buy the freehold or just renew lease?

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Hello, looking for some advice from Property118 readers. I currently have a lease with 65 years left to run. The property is a house and converted into two flats.

My question is would it be a better option to buy the freehold or just renew the lease?

View Full Article: Buy the freehold or just renew lease?

Top Property Investment Strategies

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Investing in property can be an incredibly rewarding journey, offering financial stability and the potential for significant returns. Whether you dream of becoming a landlord, a savvy house flipper, or a successful property developer, having a solid investment strategy is the key to making your dreams a reality.

View Full Article: Top Property Investment Strategies

The Times wants to speak to the next generation of landlords

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The Times is looking to speak with the next generation of landlords who are still investing in buy-to-let despite challenges around interest rates, tax and regulation.

The piece will interview landlords who have recently invested in property for the first time or plan to grow their portfolio.

View Full Article: The Times wants to speak to the next generation of landlords

Agency boss to pay £8,000 after using ‘terrifying’ tactics to bully tenants

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A rogue letting agency boss who used heavies to scare tenants and misled them about their rights has been ordered to pay £8,000.

Four residents complained to Tower Hamlets Council’s environmental health and trading standards team about London Corporate Apartments Ltd (LCA), which at the time was based in serviced business offices (main picture) and had operated both as a letting agency and a landlord via rent-to-rent arrangements.

The council found LCA had issued licenses to occupy, rather than assured short-hold tenancies, which meant the tenants were misled about their tenancy deposit protection rights, and their rights as tenants, and were at risk of illegal eviction.

There were also complaints that aggressive tactics had been used to intimidate two of the tenants into leaving their properties.

Director Khaled Abed-Alrazek admitted two counts of misleading actions and one of aggressive commercial practice relating to his tenants from February 2017 to May 2018.

During this period his company was expelled from the The Property Ombudsman scheme for failing to return a tenant’s deposit and that year was also fined £5,000 for operating as a letting agency without membership of a redress scheme.

Fines and costs

He was fined £3,800 for the offences and told to pay £1,255 compensation for the two deposits that weren’t returned, along with a further £285 compensation to one victim relating to the aggressive commercial practice, in what District Judge Matthew Bone described as “a terrifying experience at the hands of bullies acting in [Abed’s] name”.

Abed-Alrazek was also ordered to £3,000 in costs. The company was dissolved earlier this year.

Councillor Kabir Ahmed (pictured), cabinet member for regeneration, inclusive development and housebuilding, says it was a difficult case. He adds: “Everyone has the right to rent a house without fear of intimidation and the correct legal rights.

“We encourage all our residents to report any dishonest landlords so we can take action.”

View Full Article: Agency boss to pay £8,000 after using ‘terrifying’ tactics to bully tenants