Famous landlord to pay £166,000 legal costs after losing court claim

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Multi-millionaire landlord Judith Wilson (main picture, inset) has been hit with a £166,000 court bill after losing a legal battle against Tonbridge and Malling Borough Council.

Wilson, wife of the controversial Fergus, who was once dubbed ‘Britain’s worst landlord’ by the national press, claimed her Victorian property in Wateringbury village, Kent, became an eyesore after the authority carried out safety repair works on an external wall, removing large sections of brickwork.

She said workers re-inserted the original bricks “any old how”, resulting in an odd multi-coloured effect which sparked complaints from disgruntled village residents, reports The Daily Mail.

The property tycoon sued the council for £100,000 at Central London County Court.

Took control

The authority’s lawyer said it took control of the project to make it safe, denied all liability and had counter-sued to cover its costs. He told the court that Wilson had accepted the property was in a dangerous condition in 2019 while a risk assessment pinpointed the building as, “likely to collapse – and with the potential consequence of fatalities”.

District Judge Samuel Rippon threw out Wilson’s claim, saying the works had been necessary for safety reasons. He added: “She admitted that both she and her husband are control freaks who generally controlled every part of a project.”

The pair carved out a huge real estate empire and were once thought to have owned 300 homes before selling most of them off in recent years. Last June, Fergus Wilson was banned from selling off his houses in a bid to avoid paying a £250,000 legal bill. It came after he was banned for life from contacting Ashford Borough Council after a 10-year campaign of abuse against its staff. 

Read morea about the Wilsons.

View Full Article: Famous landlord to pay £166,000 legal costs after losing court claim

GETTING REDRESS: ‘Who agreed to an illegal HMO – agent or landlord?’

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Suzy Hershman (main picture), Resolution Department Lead at HFIS, examines a shocking case her team dealt with recently and highlights what landlords can learn from it.

The case

A landlord with a four-bedroom property in East London alleged that his agent had rented the house to approximately 12 tenants, exposing him to a potential fine or prosecution as his HMO licence only allowed four people to live within it. 

Although he signed a guaranteed rent contract with the agent which was straightforward (albeit skewed in the agent’s favour), what’s disputed are the negotiations that took place before the tenancy started.

The landlord claims he did not agree to it being operated outside its licence conditions, while the agent says it was already over-crowded when they took on the property.

The agent has since refused to relinquish the house despite the landlord giving notice under the terms of the contract.

The local agent that the landlord used was a member of the Property Redress Scheme and therefore the landlord’s complaint came to us.

What happened?

This case began last year when, after finding that the property was overcrowded and that local people had been complaining about the tenants, the landlord asked that it be returned to him once the contract with his agent expired in April this year.

The second issue was that the agent had paid the landlord £300 a month less than agreed. Our case officer suspected that the landlord didn’t want to take all the money because he knew the property was being rented out illegally, but it was only a hunch.

Nevertheless, the agency took almost twice as much in rent as they are paying the landlord.

We felt that although the landlord and agent did have a written agreement, the agent behaved unreasonably and continues to do so by not relinquishing the property.

Therefore, an award has been given to the landlord for the poor conduct of the agent.

Agents should always keep good records of their dealings with landlords particularly when they are changing, agreeing or discussing important features of a tenancy. 

We felt this agent considered the landlord somewhat naive and that they could get away with taking advantage of him.

An example of this is that when the landlord gave notice under the terms of the rent guarantee contract, the agent claimed they couldn’t return the property to him until the tenants moved out – which is likely to be a long time – and that’s exactly what’s happened.

What are the key lessons here?

• Landlords and agents should record all their discussions and negotiations prior to signing contracts in writing – otherwise working out who’s telling the truth in a dispute can be difficult later on.
• Vet your agent 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?
• Don’t assume rental contracts are balanced – some agents write them to be in their favour and not so much in your interests.
• If you’ve signed an agreement with an agency, it is possible to negotiate if you feel they are unreasonable – but very few landlords do.

View Full Article: GETTING REDRESS: ‘Who agreed to an illegal HMO – agent or landlord?’

Welsh minister backs review of existing higher stamp duty rates for landlords

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Welsh Minister for Climate Change Julie James has backed the NRLA’s call for a review of property taxation in the PRS.

Speaking at the launch of the group’s State of the Welsh Private Rented Sector report, the Minister said she was “very interested” in looking at how to ensure a level playing field around Land Transaction Tax and would welcome ideas about supporting the provision of long-term rental homes.

NRLA research found that 76% of Welsh landlords say demand for rental properties has increased in the first quarter of 2023, however, despite this, 48% planned to cut the number of properties they let.

It has urged the government to exempt the purchase of additional homes for long term rent from the 4% Land Transaction Tax levy. It says this would encourage landlords to bring properties into the sector, potentially where they were previously vacant or in a state of disrepair.

Better information

James also accepted the NRLA’s calls for better information about the sector in Wales after the report warned that the availability of comprehensive, up-to-date, and official data on who lives in the sector, its exact size, and the type of properties remained limited.

The Minister agreed the government needed to improve this to make decisions affecting the rental market and also backed a potential Welsh Housing Survey.

Hampered

Chief executive Ben Beadle says it’s a welcome move. “Too often good decisions have been hampered by a lack of robust data on the state of the rental market,” he adds. “We will continue to work with the government to ensure policy is rooted in evidence and what works for responsible landlords and tenants.”

Earlier this month, the Welsh government launched a consultation on fair rents and adequate housing in which James revealed she was considering rent controls.

View Full Article: Welsh minister backs review of existing higher stamp duty rates for landlords

Landlords sell their high-yield properties amid surging mortgage rates

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Landlords are now scrambling to sell their high-yielding rental properties as rocketing mortgage rates hit profit margins on even the most lucrative investments, the Daily Telegraph reports.

In data provided by Hamptons estate agents, the report reveals that 25% of buy to let properties sold this year have boasted yields of 7% or higher.

View Full Article: Landlords sell their high-yield properties amid surging mortgage rates

MORTGAGES: Worried landlord tells BBC how his payments have tripled

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Paul Bradley, a landlord with a single rental property in North London, has told the BBC how the ongoing mortgage crisis has seen his monthly interest-only loan payments triple over the past 12 months.

His case illustrates vividly the significant challenges that the approximately 500,000 landlords who own BTL properties via mortgages in the UK now face as their costs ramp up, and the Government’s removal of Section 24 mortgage relief come home to roost.

Bradley, who is 74 years old, told the World at One programme how he became an accidental landlord after moving from London to the West Midlands some years ago.

He told presenter Sarah Montague (main picture) that his usual mortgage payments have been £304 a month, which he paid via the £1,000 per month rent he charged his long-standing tenant.

Payments tripled

But the recent interest rises have seen his payments, which are for an interest-only mortgage rather than repayment, triple to £923 a month.

“If you take away the tax that I pay on that revenue then in effect I am now subsidising him to live in the property,” he said.

Bradley said he therefore has no choice but to sell the property and has served notice on the tenant, who has refused to move out and an attempt to seek possession of the property has now begun as his mortgage arrears build up.

“I work part time so there isn’t much spare money so until this is resolved there won’t be any holidays or going out for evening meals – that’s all gone.”

Listen to the programme.

View Full Article: MORTGAGES: Worried landlord tells BBC how his payments have tripled

EXCLUSIVE: More tenants failing reference checks as cost-of-living bites

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The number of tenants passing referencing checks has dropped off drastically as the cost-of-living crisis bites.

Rent guarantee firm Housing Hand reports that about 35% previously passed checks, but that the number is dropping and could now be as low as 25%. Another 40% will get accepted using a guarantor, but that means up to 35% will fail to achieve either.

“Referencing has become more stringent and it’s partly about ID checks, which shouldn’t be a problem for legitimate renters, but it’s also about their financial capability,” COO Graham Haywood (pictured) tells LandlordZONE.

David Coughlin, director of the Landlord Sales Agency, says he knows of one instance where a landlord has sold a property and the letting agent is trying to find his tenant a new home – however, this tenant has failed to pass current credit checks which are now more stringent than when he moved in years ago. Despite having paid his rent on time, the task is proving impossible.

Salary test

“We’ve heard of similar cases,” says Haywood. “Paying your rent on time doesn’t necessarily give you a financial qualification.

“Referencing firms would typically base their test on three and a half times a would-be tenant’s salary but as rents have gone up, that can be four or even four and a half times their salary.”

He adds that in the last six months, Housing Hand has seen a 50% rise in applications for guarantees and that it’s not just young people who need to use its services, but older – even elderly – renters as well, particularly if they’re not in full-time employment.

“People are being challenged in terms of their income not going up,” says Haywood.

“There are also pressures on landlords paying higher mortgage rates, and the next few months aren’t likely to get any easier.”

Read more: ultimate guide to referencing.

View Full Article: EXCLUSIVE: More tenants failing reference checks as cost-of-living bites

UPDATE: Councils to give landlords more time to find out about licencing launches

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Councils have been given three months longer to launch selective licencing schemes, new Government guidance has revealed.

An update to the Department of Levelling Up, Housing and Communities’ advice to local authorities considering or planning a selective licencing scheme has been updated to say that the “introduction of [a] scheme may be delayed up to an additional three months [on top of the existing three-month limit], if need be, to prepare for the scheme’s implementation”.

The updated rules apply to schemes which cover less than 20% of a council’s housing stock, and which therefore can be self-approved by councils.

“If a further delay is required for schemes approved by the Secretary of State [i.e. those over 20%] then this must be discussed with the department in the early stages of the application process and good cause must be provided,” the guidance adds.

Extra time

It clarifies that the extra time is partly to ensure that people – i.e. landlords or agents – who are likely to be affected by the designation have been consulted.

LandlordZONE understands the changes are to help councils deflect criticism that they don’t give landlords enough time to find out about licencing launches. This follows complaints by many that they were unaware that selective licencing schemes were about to start, particularly if they lived outside an authority’s borders.

One celebrated case of this was landlord group iHowz’s criticisms of Ealing’s implementation, with many landlords complaining about ‘being kept in the dark’ about the councils plans.

While agents have platforms like Kamma and London Property Licencing to help them keep abreast of local licencing requirements, private self-managing landlords are more exposed and, as our many stories about Property Tribunal decisions reveal, are often caught out.

DHLUC has been approached for comment.

Read the guidance.

View Full Article: UPDATE: Councils to give landlords more time to find out about licencing launches

VIDEO: ‘Best landlord in UK’ gives unusual advice to other investors about profits

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Treat tenants like customers and stop thinking about profit if you want to make a success of property investing – that’s the advice of lettings and landlord professional Tom Soane, who boasts that it’s made him the ‘best landlord in the UK’.

“Your property is a product, tenants are your customers, and property management is customer service,” he explains in his latest YouTube video.

“Any business tries to keep customers happy, so think ‘what can I do to make them comfortable and happy and with the best quality product?’ This makes them a better, long-term tenant and keeps your asset valuable as they look after it.”

Soane believes that if landlords stop focusing on profit, they will ultimately make more money because they can then charge the top end of the ‘fair market value’.

He also advises investors not to challenge every expense in order to create a more stress-free life for both themselves and tenants.

“What’s the point? If a boiler needs repairing, I could argue with the lettings team and get comparison quotes, but there’s a cost to time as well as the trust and confidence of the lettings team. You start getting contractors to do comparison quotes, you’ll lose working with them.”

Every decision

He also reckons that delegating jobs to agents is more sensible than getting involved in every decision. “If it’s something that needs to be done and it can be covered by the rent, just get it done,” suggests Soane.

Appreciating that earnings will fluctuate each month means he focuses on the long term. “Investing in property isn’t a guarantee and there are risks,” he adds. “You didn’t invest in property for the short term, you’re building financial security, not so you could just sell it at the end of the year.”

Watch the video in full.

Pic: YouTube

View Full Article: VIDEO: ‘Best landlord in UK’ gives unusual advice to other investors about profits

Welsh Minister supports tax review proposal for the PRS

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The Welsh Minister for Climate Change, Julie James MS, has expressed her support for the National Residential Landlords’ Association (NRLA) proposal to conduct a comprehensive review of taxation in the private rental sector (PRS).

The endorsement came during the launch event of NRLA’s State of the Welsh Private Rented Sector report

View Full Article: Welsh Minister supports tax review proposal for the PRS

Landlords encouraged to sell this month as property prices rise by 0.2%

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In a market where interest rates are sky high, tax bills are extortionate and mortgage payments are higher than rents, coupled with a backlog of refurb costs and difficult tenant situations, landlords are rushing to cash in and sell their property portfolios.

If you were a landlord on the fence about whether or not it’s a good time to sell, this month’s stats are the window we all needed to take action.

The market has been falling. Figures show that the current property market is 4% below what it was last year. Put simply, we cannot afford to let it drop further. Landlords need to sell, and fast, to get as much money back as possible whilst they still can. It couldn’t have come at a better time, therefore, that this month’s blip might be the window we all needed to cash in.

This week, property expert Kate Faulkner reported that we’re currently experiencing a 0.2% market rise this month. If we needed a sign, this is it. But how do we take advantage of this window to get the highest price for our portfolios? And who’s the best company to sell now, and fast, for the best possible price?

That’s where Landlord Sales Agency come in. We’re proven experts at selling landlord portfolios, fast and higher than the current market rate. In the last year alone, over 200 LandlordZONE landlords reached out to us at Landlord Sales Agency to sell their buy-to-lets. Of those landlords, the average time it took for Landlord Sales Agency to sell was below 28 days. Twice as fast as the current market, and for higher prices.

We do exactly what we say we’ll do, and with a huge database of over 30,000 private buyers who get notified of our deals via text message as soon as you get in touch with us to sell, we’re selling properties faster than anyone else.

But what about tenanted properties? Many landlords are worried about tenants holding them back, you don’t need to. That’s where we excel the most. Because our company is owned by a landlord, myself, David Coughlin, I’ve gathered the best team in the country to help solve all my tenant issues, and I personally use that same team for you.

In fact, we go above and beyond to sell tenanted properties. We’re so confident we’ll get you a high price for all of your properties, fast, we have no problem helping tenants pay their current rents, pay off arrears, pay for them to relocate and in some cases, even pay their rent in advance for the next landlord who takes your property on. For very difficult cases, we’ve got the best relationships with local councils across the UK allowing us to get councils to pay rent for tenants, clear any outstanding funds they owe you and even have the councils pay off all their legal costs.

For houses with stubborn survey issues, we bring on board our entire building team and housing networks to resolve every single problem, ensuring that sales don’t fall out of bed, and that landlords like you don’t have to take a big drop in price.

It’s as straightforward as that. No hassle, no nonsense. We get landlord properties sold.

Get in touch and let us do it for you.

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View Full Article: Landlords encouraged to sell this month as property prices rise by 0.2%