UKRAINE DELAYS: Landlord’s property stands empty despite being offered free to refugees

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Long delays in Ukrainian refugee schemes have led to a house offered for free by one generous landlord remaining empty.

The pebble-dashed property in Ashton-under-Lyne, Greater Manchester (main pic), has been made available rent-free for a year, thanks to the efforts of retired estate agent Steve Gooderson who has also raised £40,000 to cover the cost of a year’s rent for 30 refugees.

He has collected food and clothes along with offers of other accommodation, even persuading one landlord to donate one of his houses.

Gooderson, of Stalybridge, Tameside, told the Mail Online that he’d made his offer two weeks ago but had still not heard back from the government.

He slammed the Homes for Ukraine scheme organisation for being incredibly frustrating. “We have the money in place, the houses, food, clothes and interpreters with the help of the local Ukrainian community,” said Gooderson.

“Everything is in place without a penny in costs to the taxpayer. We have made the offer to the government, then nothing. I think this whole government scheme is a complete sham. It is not an exaggeration to say these delays are costing lives.”

He approached local MP Jonathan Reynolds for help, who contacted the Department for Levelling Up, Housing and Communities, without success.

20-day backlog

Gooderson claims there is a 20-day backlog before the government will even consider offers of help under the Homes for Ukraine scheme, however officials deny this.

A government spokeswoman said: “Thanks to the public’s generosity in offering their homes, more than 39,300 visas have been granted so far with 6,600 Ukrainians arriving safely in the UK under the Homes for Ukraine scheme. Currently the scheme is open to individuals, but we plan to expand this to organisations and community groups who will be able to sponsor multiple guests.”

More than 150,000 people registered to sponsor people from Ukraine looking to come to the UK. Campaigners have urged the government to cut the red tape for refugees seeking sanctuary.

Read the MailOnline article in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – UKRAINE DELAYS: Landlord’s property stands empty despite being offered free to refugees | LandlordZONE.

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Landlord who sold his BTLs in 3 weeks says: “it’s good to see there’s people out there who know how to do this the right way”

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In the wake of an influx of landlords who are choosing to downsize and sell their portfolios, we sat down and chat with Roy, a landlord who did just that and did it in an astonishing 3 weeks.

Roy got into property by following in the footsteps of his father

View Full Article: Landlord who sold his BTLs in 3 weeks says: “it’s good to see there’s people out there who know how to do this the right way”

Would you like 10 top property experts come to see you on Friday?

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Just in case you missed it! 10 of the top UK property educators and commentators are coming to your place on Friday, to share with you what is happening in the UK market right now, and how to make the most of the current property market.

View Full Article: Would you like 10 top property experts come to see you on Friday?

New Specialist Buy-to-Let Lender

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A New Specialist Lender has entered the BTL mortgage market called Quantum Mortgages.

With so many of the current lenders declining mortgage applications for properties that don’t fit their tick-box approach, it is refreshing to be working with human underwriters that take a commercial view rather than a “computer says no” approach.

View Full Article: New Specialist Buy-to-Let Lender

‘Landlords facing double whammy of higher materials bills and more tenants WFH’

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Tenants are piling pressure on landlords to fix a multitude of minor jobs, with boiler repairs and general wear and tear maintenance on the increase as a result of the trend to work from home.

“In the last few years, we have witnessed people being more cautious and trying to reign in their spending,” director Callum Lee (main picture) at Adam Lee Property Maintenance tells LandlordZONE.

“At the same time, we’ve never been busier as tenants are spending more time working from home and noticing when things go wrong.

“They’re also very quick to point this out to landlords, while pre-Covid, they might not have been so bothered about that wobbly door handle.”

The north-west London-based property maintenance firm deals with everything from same-day small plumbing, heating and electrical jobs to major refurbs and new builds, working with landlords, estate agents and management companies.

Rising costs

“Rising labour and materials costs – sometimes by as much as 40% in the last couple of years – as well as a shortage of skilled labour are hitting home across the maintenance sector, he adds.

“It’s hard to get a workman to drive across London, to pay the congestion charge and parking, and do a small job, but this is what tenants want done.” 

Despite this, many landlords are grateful they’ve got good tenants and are now often more open to agreeing to get work done, says Lee who’s currently dealing with a list of more than 70 maintenance issues pointed out by one very new tenant, of which 75% are “very picky” – but he reckons the landlord will probably agree to fix them all.

However, there will always be those who are reluctant to spend any more than they have to, and insist tradesmen should patch up a shower leak with silicon rather than spend more to investigate the problem.

“Sometimes we’ll get a call a few months later from the landlord saying the leak has come back and our work wasn’t good enough. We have to be diplomatic,” Lee adds ruefully.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Landlords facing double whammy of higher materials bills and more tenants WFH’ | LandlordZONE.

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What about landlords’ rights? Association says Scots plans to protect tenants ‘unfair’

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Landlords’ rights will be eroded if the Scottish government goes ahead with plans for PRS reform in its draft rented sector strategy, according to Propertymark.

The association believes the tenant-centred approach of A New Deal for Tenants overlooks the needs and rights of letting agents and landlords, particularly around their ability to seek possession of properties.

The government is currently consulting on proposals which include a system of rent controls, setting up a regulator for the private rented sector, and creating a new housing standard covering all homes.

In its response, Propertymark opposes rent controls and describes a proposal to ban winter evictions as “unnecessary and unworkable”.

It is also against the removal of mandatory grounds for possession and is “deeply concerned” that such a change would make the uncertainties around possessions too risky for landlords and that some will simply quit.

Propertymark adds that without providing incentives to stay, it risks losing investment and properties from a sector that is already struggling to keep up with demand.

As a flavour of how ‘tenant-centre’ the New Deal for Tenants is, throughout it the word ‘tenants’ appears 289 times — nearly twice as many times as ‘landlords’ (165 times).

Daryl McIntosh, policy manager for the UK devolved nations, says that by considering tenants in isolation, policymakers are showing little regard for the legal rights of landlords and their letting agents.

“The Local Government, Housing and Planning Committee has just published its scrutiny of the Coronavirus (Recovery and Reform) (Scotland) Bill in which it too leans favourably towards tenants, despite hearing warnings directly from landlords that permanent changes to the possessions process would place too much financial risk on them and could force more to sell up,” says McIntosh (pictured).

He adds: “The sector is already under huge strain and desperately in need of more investment, not less, so we urge the Scottish government to carefully balance its reforms to ensure any interventions to achieve short-term objectives do not lead to market failure in the long run.”

The comments by Propertymark have not gone down well with local housing rights campaigners. Living Rent, the country’s largest tenants’ union, has slammed the comments and suggested the trade body is trying to shield landlords from the “biggest squeeze in income for generations”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – What about landlords’ rights? Association says Scots plans to protect tenants ‘unfair’ | LandlordZONE.

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ONS data for cost of living crisis – 34% of renters reporting rent increases

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The Office for National Statistics has released its latest report using data from the Opinions and Lifestyle Survey analysing how different demographics have been affected by an increase in their cost of living from November 2021 to March 2022: Click here

The results show housing costs have also been a growing contributor with 34% of renters reporting their rent had increased in the last six months

View Full Article: ONS data for cost of living crisis – 34% of renters reporting rent increases

‘More government regulation of the PRS won’t work – here’s why’

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It is common to hear from both politicians and campaign groups that the Private Rented Sector (PRS) needs more regulation.

But the question they have not addressed is what the purpose of this regulation will be.

If it’s to drive landlords out of the market, then it will succeed. If it’s to drive bad landlords out of the market, then it will not. That sounds wrongheaded but let me explain.

We have a very unusual market made up of millions of small landlords owning less than three properties who often do not have the capital resources to deal with onerous regulations.

Many of them want to comply with the current rules and most provide homes that range from very good to OK.

But if they are faced with new regulations that they cannot afford to meet then they will leave the market.

The bad landlords who do not comply with the existing rules are unlikely to comply with any new ones.

What is more, if as a result of good landlords leaving the market there is a massive surge in demand the bad ones will see this as an opportunity.

As more tenants are forced to occupy their properties at higher rents because they have nowhere else to go, so bad landlords will prosper.

But surely, you say, the new rules will drive them out of the market?

No – enforcement in practice does not work because it’s incredibly expensive to enforce rules against those who will not comply because, although they are a small percentage of the overall market, it still means policing 100,000s of properties.

What’s our PLAN?

History shows that if you want to create new conditions the carrot is far more effective than the stick.

If the objective of a policy is to create more landlords providing better homes, then we must encourage more landlords into the market who have the resources and scale to create good homes for tenants.

Such landlords will have the capital resources to invest in properties, comply with regulations and provide good homes.

To do that, you need to create a framework that incentivises such landlords to come into the market.

Instead of cutting supply, you will increase it. And if you increase the supply then you give tenants more choice and create the right market, one which will respond positively to regulations.

Surely that should be the objective of policy for all parties and stakeholders be they Conservative, Labour, Generation Rent, Shelter or whoever?

Unfortunately, it does not appear the be. My organisation, PLAN, is trying to win support to rethink the whole strategy for the PRS and appeal to those who agree with this to support us.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘More government regulation of the PRS won’t work – here’s why’ | LandlordZONE.

View Full Article: ‘More government regulation of the PRS won’t work – here’s why’

Land Registry holding up loan?

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I purchased a property six months ago and have a subsequent new loan agreed in principle.

However, I am still waiting for the Land Registry to complete the registration of the title and until the process is completed

View Full Article: Land Registry holding up loan?

Court agrees a vital new ‘green lease’ clause

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A recent court case shows the importance of keeping commercial lease clauses up-to-date with changes in new legislation, in particular there’s one clause that should be inserted into every commercial lease to take account of the new energy efficiency rules.

Under the Landlord and Tenant Act 1954 – the legislation governing commercial tenancies – there is provision for the courts to get involved where the landlord and tenant cannot agree on lease terms at renewal.

This is pertinent when one or other of the parties wish to vary the terms, usually as a result of changes in circumstances or new legislation enacted during the course of the lease term. In these cases the court has the ability to step in and determine the terms if the parties cannot agree.

An important case

In a recent property litigation case involving Clipper Logistics Plc v Scottish Equitable Plc (2022), the landlord (Scottish Equitable) called for three new covenants to be introduced into the lease.

Some of the landlord’s proposed changes were agreed upon between the landlord and tenant before this court trial, but there were other proposed changes which could not be agreed and were left to be determined by the County Court.

The desired changes by the landlord came about due to the impact of more recent environmental legislation, more specifically MEES and the property’s EPC rating. The landlord was obviously concerned that any detrimental changes to this rating, brought about by the actions or inaction of the tenant, could have consequences for itself.

Therefore the landlord wanted to have three new clauses inserted into the lease, these being:

1 – a Prohibition Clause to prevent alterations the tenant made to the property resulting in the property’s Energy Performance Certificate (EPC) grade falling below band E and thus rendering the property ‘sub-standard’

2 – an Indemnity Clause against the cost of a new EPC certificate in the event that such alterations were made to the property

3 – a Reinstatement Clause requiring the tenant to maintain the current EPC rating throughout their tenancy, and to do this by implementing remedial works if necessary.

The determination

It was determined that the onus was on the party requesting the changes (the landlord) to persuade the Court that the proposed changes were fair and reasonable.

The question was, would updating the lease with these clauses on renewal be reasonable to take account of legislative updates (e.g. changes to the energy performance of the building) – would it amount to reasonable modernisation of the lease?

The pandemic related events of the past two years have seen changes in commercial lease drafting evolve very quickly because of the many issues arising. As a result, the courts now are having to consider whether to approve lease terms that were not even on the radar before March 2020.

In Clipper Logistics the Court noted that most of the obligations relating to the energy performance regulations rest with the landlord rather than the tenant. The court considered that when the three clauses were all taken together, the proposed covenants would unfairly and unreasonably shift the burden of complying with these duties from the landlord onto the tenant.

The Court argued that the proposed Prohibition Clause was not necessary as the existing lease already contained terms preventing the tenant from making alterations to the property. Further it ruled that the Indemnity Clause was too burdensome for the tenant to adhere to.

However, the Court held that the requirement in the Reinstatement Clause for the tenant to return the property with the same EPC rating as when the tenant took over the lease was fair and reasonable and should be implemented in this case.

The Reinstatement Clause therefore is an important one having the effect of protecting landlords against any potential action or inaction by the tenant which might render the property as ‘sub-standard’ with regard to the EPC rating.

A clause requiring the tenant to “return the premises to the Landlord with the same EPC rating as it has as the date of this Lease” was therefore considered a fair and reasonable addition to protect the landlord from inaction by the tenant over a 10 year term.

Lease terms in Future

Given the proliferation of new environmental issues affecting property, it is likely there will be more ‘green lease’ terms to be introduced in both new leases and on lease renewals. Increasingly, ambitious reforms aimed at the UK’s net zero targets will likely necessitate this.

This court judgment indicates that courts do have some awareness and indeed some sympathy for the vulnerability of landlords, with the onus being on them to reach certain regulatory standards when the building is outside of their control, i.e., tenanted.

The existing Minimum Energy Efficiency Standards (MEES) regulations are exacting, but the court considered that adding more obligations on tenants to attempt to reduce the landlord’s liability under the legislation would not be fair or reasonable in the context of lease renewals.

In the Clipper Logistics case, the court took into account the existing lease clauses which offered a good degree of protection to the landlord. But the case also shows that a landlord cannot assume that it will be able to include clauses to protect its own position in relation to MEES without careful consideration.

An important consideration with any new lease contract: the parties can agree to the inclusion of any clauses they like, but if the courts won’t enforce them, they are effectively useless.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Court agrees a vital new ‘green lease’ clause | LandlordZONE.

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