Leasehold reform ‘will not be in King’s speech’ says former housing minister

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Former housing minister Lord Greenhalgh has expressed doubts that leasehold reforms will be included in the King’s Speech this autumn.

In an interview with Leasehold Knowledge, he said that despite being very complex legislation, the background work had been done.

“Even if you ran out of time and you weren’t able to get the Bill through Parliament, at least there’s something that can go through the pre-legislative scrutiny, so you get a better Bill at the end of it. I am just sceptical of getting it through both houses in time.”

However, he said the good news for leaseholders was that every major political party wanted it to happen. “It’s now become above party. Everyone is in favour of reform.”

Radical reforms

The government is preparing to bring in legislation which includes reforming the process of enfranchisement valuation used to calculate the cost of extending a lease or buying the freehold, ditching rules that prevent owners from buying the freehold to their property if a small part of the building is given over to commercial use, and allowing owners of leasehold houses to be able to extend their leaseholds by 990 years at a zero ground rent.

Speaking about rules limiting the number of landlords affected by the cladding scandal who face the full remediation bills for their block, Lord Greenhalgh admitted he would have liked to see the threshold set higher to protect smaller landlords and those with retirement properties.

“We were worrying about this when the Building Safety Act was passing through the Lords and there was a bit of ping pong around the number of properties, and we increased the number of properties from two to three,” he said.

“You always finish your time in government feeling that you’ve done as much as you can in the time that you had. And then you realize that there are areas that still remain unresolved.”

Read more about the Government’s leasehold reform.

Read the interview in full.

View Full Article: Leasehold reform ‘will not be in King’s speech’ says former housing minister

Minister slammed for ‘complacent’ and ‘appalling’ attitude to LHA freeze effects

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Landlords have slammed the Government for its ‘complacent’ attitude to the Local Housing Allowance (LHA) freeze and its effect on both tenants and landlords.

The comments by the NRLA follow an admission by Work and Pensions Minister, Mims Davies MP that he has made no estimate of the number of people unable to meet their housing costs due to the freeze.

This sets how much housing benefit some tenants receive towards paying their rent within the private rented sector but it has been frozen since 2019 and many of those in receipt of benefits now struggle to make up the difference.

As LandlordZONE reported last month, lender trade organisation UK Finance somewhat unusually blamed this ‘gap’ on a surge in the number of landlords in mortgage arrears.

Two million

Calling on the Government to unfreeze the LHA rate, its spokesperson said: “Approximately two million households rely on housing benefit to pay private rent, and re-coupling LHA rates with local rent levels will make more properties affordable to them”.

A recent analysis by the Institute for Fiscal Studies estimates that rented households in receipt of the LHA will receive an average of £50 a month less in benefit support than they would have got if rates had risen in line with rents.

Ben Beadle (pictured), Chief Executive of the National Residential Landlords Association, says: “The NRLA is appalled at the Government’s complacent attitude.

“Amidst a cost of living squeeze we need to do everything to support the sector and often vulnerable tenants in accessing the housing they need. “It beggars belief that ministers have frozen vital support for many renters with no idea how many will be unable to afford their housing as a result.

“The Government should unfreeze housing benefit rates as a matter of urgency.”

View Full Article: Minister slammed for ‘complacent’ and ‘appalling’ attitude to LHA freeze effects

When is a rogue landlord, not a rogue landlord?

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We often see the term ‘rogue landlord’ bandied about, but a story last week got me thinking: When is a rogue landlord, not a rogue landlord?’

It would appear that most people would think it was a term to describe a landlord who let a home without a roof

View Full Article: When is a rogue landlord, not a rogue landlord?

Landlords misusing section 21 notices is ‘overstated’

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Claims that landlords are misusing section 21 notices – the ‘no fault’ eviction process – are unfounded, one firm says.

Estate agents Leaders Romans Group (LRG) says it has carried out research and found that Section 21 is rarely overused

View Full Article: Landlords misusing section 21 notices is ‘overstated’

LAUNCH: Novel system that eliminates damp and mould in rented properties

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A new ‘mechanical ventilation with heat recovery’ (MVHR) system aims to provide the solution to landlords’ damp and mould problems.

Ebac’s self-managing, ‘hands-off’ eco-system is designed to be installed in a loft opening and works to continually extract polluted, humid air from a building and replace it with fresh air taken from outside through a heat exchange system.

The company’s Smart Control system adjusts airflow and performance levels based on live readings from the building’s internal climate, reducing energy usage and requires no programming.

The scale of the UK’s damp and mould problem continues to make headlines following the death of toddler Awaab Ishak which prompted the government to announce plans earlier this year to tackle mould within the private and social housing sectors through updated guidance and initiatives.

It also confirmed that the PRS’s new housing ombudsman would lead the battle against mould.

Andrew Hobson, Ebac’s sales and marketing director, says with the new legislation and retrofit requirements for commercial and residential buildings in the lead up to 2050, its system offers a more cost-effective solution for housing associations, councils and private landlords to ensure that their tenants live in healthier, more energy-efficient spaces.

He adds: “Our Smart Control feature means that tenants and homeowners do not have to touch the units, only requiring a filter change every 12-24 months depending on usage.”

Read more about damp and mould

View Full Article: LAUNCH: Novel system that eliminates damp and mould in rented properties

Meet the hero landlord who hasn’t raised rents for 25 years

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A good Samaritan landlord is bucking the national trend by not raising his rents for more than 25 years.

Mick Musson, who owns eight flats at the former Blue Horse Pub (inset), in Great Ponton, Lincolnshire, hasn’t increased the rent since he took over the property, and now counts the tenants as his friends.

One, Rob Podum, was homeless before moving into a one-bedroom flat in the block in 2006 and admits he was at his lowest ebb, reports The Grantham Journal.

Podem, 56, says Musson is a brilliant landlord and doesn’t want to move. “It’s been brilliant, and I have known Mick a long time,” he says. “I’m still paying what I paid when I first moved in, and I offered to pay him more to cover the electric as I wouldn’t want to see him suffer.”

Exploited

Adds Podum: “You hear about these people who are exploited by landlords. However, Mick is great.”

Follow tenant Alan Hodgson, 68, also lives in a one-bedroom flat in the property and says

Musson has been “good as gold” since he first moved in four years ago. Hodgson adds: “He’s the best landlord anyone could ever have. If you have a problem, he’ll be there. All the time it’s been the same rate and he’s never ripped anyone off. He’s a good man.”

Musson explains that he tells tenants the rent they pay when they move in won’t change. “I don’t think they will leave unless they have a certain reason,” he adds. “They are friends. They will come down to pay their rent and then end up having a cup of coffee.”

Read more LandlordZONE stories about hero landlords

Read the full story about the landlord.

View Full Article: Meet the hero landlord who hasn’t raised rents for 25 years

Early BTL investors are retiring and selling up

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Most BTL investor sales are from those landlords who were among the first to invest after buy to let mortgages were launched in 1996, research reveals.

The findings from Hamptons show that landlords are now retiring and selling up in increasing numbers –

View Full Article: Early BTL investors are retiring and selling up

Tenants in the capital will be most affected by EPC changes

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Renters in London will be the worst hit by the government’s proposed energy performance certificate (EPC) laws, research reveals.

That’s the view of data science firm Outra which says that tenants will have to leave unlettable properties if the government imposes a minimum EPC rating of C by 2028.

View Full Article: Tenants in the capital will be most affected by EPC changes

Propertymark calls for council tax reforms

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A leading industry body has called on the government to change council tax housing banding for HMOs.

Propertymark has submitted a response to the Department for Levelling Up, Housing and Communities’ consultation arguing that HMOs should be banded as one property under one council tax band

View Full Article: Propertymark calls for council tax reforms

Crunch time for PRS revealed as increasing numbers of ‘pioneer’ landlords retire

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Thousands of landlords who entered the private rented sector following the introduction of dedicated buy-to-let mortgages in 1996 are now retiring in increasing numbers, it has been revealed.

Research by estate agency Hamptons reveals that some 140,000 landlords retired in 2022, representing 73% of all the properties sold by BTL investors.

Purchases made by this ‘original cohort’ of landlords some 15-25 years ago following the introduction of the buy-to-let mortgage still make up the majority of privately rented homes in Great Britain, the report says.

Just over half of today’s outstanding buy-to-let mortgages were taken out between 1996 and 2007.

Spike

Last year saw an unusual spike in landlords withdrawing from the market after deciding to retire and cash-in their properties, but Hamptons says a further 96,000 landlords are expected to retire this year and each year afterwards.

This in addition to the 924,000 who are already over the age of 65 but are still renting out properties.

During the past 12 years between 2010 and 2022 the agency estimates the number of landlords retiring annually has doubled as their demographic ages.

These figures will be particularly worrying for Ministers as the trend will further put pressure on stock and see rents rise.

Hamptons says recent tax and regulatory for private landlords mean many younger people are put off investing in the PRS and that the “number of new purchases by landlords has remained relatively muted”, says its head of research, Aneisha Beveridge (pictured).

“Millennials, who have struggled to get onto the housing ladder, have not been in a position to afford or consider purchasing a buy-to-let too.”

View Full Article: Crunch time for PRS revealed as increasing numbers of ‘pioneer’ landlords retire