Local Authorities using Credit Checking to Trap You and Identify Your Tenants

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It has come across my desk from more than one local authority and in multiple cases that the Council is checking information with Consumer Credit Reference Companies as part of their enforcement, and they are not making a secret of it!

View Full Article: Local Authorities using Credit Checking to Trap You and Identify Your Tenants

Sadiq Khan calls for a 2 year Private Rents freeze

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The Mayor of London, Sadiq Khan, is calling on Government to give him the powers to freeze private rents in the capital for two years to save rent for thousands of Londoners, but no help for Landlords, struggling to cope with the rocketing cost of living.

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LATEST: Has the John Lewis rental property plan stalled?

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John Lewis has insisted it is still focused on becoming a major residential landlord, despite first announcing the idea nearly 18 months ago.

Its Partnership Plan aims to transform the business and promises that in this financial year it will invest in John Lewis shops, its website and distribution as well as “continuing to develop and progress our property rental proposition”.

John Lewis first revealed plans to build 10,000 rental homes over the next decade back in October 2020 but senior leadership roles for the project were still being recruited for late last year, according to one leading property jobs agency.

The retailer identified space in its car parks, above Waitrose supermarkets and near distribution centres for about 7,000 rental homes ranging from studio flats to four-bedroom houses where tenants would have the option of renting accommodation that is fully furnished with the chain’s own household furnishings, or providing their own.

Further detail

But the lack of any further detail since then seems to indicate that the plan is proving to be more complicated than first thought.

The beleaguered retailer suffered substantial pre-tax losses of £26m in the last financial year (compared to its £491m loss the previous year) despite profits rebounding by 38% off the back of its highest ever sales of £4.93bn, which increased 8% like-for-like.

Staff bonuses have been reinstated as a result, but John Lewis has admitted its profit margins were hit by restructuring and exiting property leases as it sold off eight stores and a delivery hub, as the business focuses on online shopping.

If they ever get off the ground, the initial residential developments are planned for South East England, but the partnership believes there are opportunities across the country.

Read its results in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Has the John Lewis rental property plan stalled? | LandlordZONE.

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Khan claims rent controls to cut landlord income by £3,000 during first years of scheme

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The Mayor of London Sadiq Khan has claimed that rent controls would save tenants £3,000 during the first two years of the scheme, if his plans are given the green light.

But the Labour mayor’s calculations are wishful thinking – so far Conservative central government has ignored his previous calls to be given rent control powers.

Nevertheless, the latest figures from Khan’s office reveal the likely reduction in rental income that landlords could face should a change in political power within Westminster take place, particularly as his latest call as the backing of campaigning group Generation Rent.

The organisations, along with Shelter, holds considerable sway in the corridors of Whitehall where renters’ voting power increasingly checkmates landlords’ concerns.

Khan’s new figures are based on rent inflation predictions by estate agency Savills, which reveals that that freezing private rents for two years would save Londoners on average a total of £2,988 across both years including £881 in the first year and £2,107 in the second.

His calls for rent controls are backed up by the cost of living crisis facing many tenants as inflation and in particular energy costs spiral upwards.

Devastating combination

“Private renters make up nearly a third of everyone living in the capital and they are set to be hit by a devastating combination of price and bill rises. Too often the needs of private renters are ignored by both landlords and the Government,” he says.

“Rising fuel and energy costs – which will hit renters in energy inefficient homes the hardest – are already causing anxiety and stress, with a big rise in the energy price cap due next month.

“That’s why today I’m calling on ministers to give me the powers to stop rents rising in the capital and help me to give people a chance to get back on their feet after the pandemic.”

NRLA reaction

Ben Beadle (pictured), of the National Residential Landlords Association, says: “A rent freeze would be disastrous for the private rented sector. At a time when costs are rising sharply and will continue to do so with extra spending needed for energy efficiency upgrades and higher mortgage rates, all it would do is drive more landlords out of the market.”

Read more about rent controls.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Khan claims rent controls to cut landlord income by £3,000 during first years of scheme | LandlordZONE.

View Full Article: Khan claims rent controls to cut landlord income by £3,000 during first years of scheme

My Open Letter to Shelter who are calling for Section 21 to be banned & prosecuting Landlords who don’t take Benefit tenants

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Shelter are doing webinars on: The Renters’ Reform Bill Q&A session is scheduled for 30 March 18:30 – 19:30 and will be run over Zoom Click here

Rebalancing the rights and responsibilities of tenants and landlords.

View Full Article: My Open Letter to Shelter who are calling for Section 21 to be banned & prosecuting Landlords who don’t take Benefit tenants

A guarantor is responsible for the rent and ALL the responsibilities of the tenant?

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Having now given a tenant over 5 months’ written notice to vacate with a section 21 via a professional serving company, the time will be arriving next month for her to vacate. I doubt very much she will leave as the local rental market does not have many properties that would accommodate her.

View Full Article: A guarantor is responsible for the rent and ALL the responsibilities of the tenant?

99-year-old grandmother celebrates housing benefit win

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A 99-year-old tenant and her 75-year-old autistic daughter are celebrating after winning an appeal to receive Housing Benefit.

Their local council had refused to award the benefit because the landlord is their granddaughter, making the relationship non-commercial – despite the fact they had an assured shorthold tenancy agreement.

Housing Association

Before making their claim, the joint tenants had lived in a small Housing Association property, which opened onto a busy road and there had been instances of the door being left open and uninvited strangers getting in. It was also a good 30 minutes’ drive from other family members.

The granddaughter’s property was much closer to their family, so she contacted the council where an officer told her he thought that the award amount would be restricted and wouldn’t cover the contractual rent of £1,200. However, as both tenants were receiving DLA, the family was confident the gap could be bridged.

Family-related tenancies

When their claim was turned down, Bill Irvine at UC Advice appealed on their behalf. He says the issue of refusing family-related tenancies is rife, both with councils and the DWP. He adds: “I wrote to the council’s chief executive…and was also hopeful that by drawing his attention to the age and circumstances of the appellants, he would intervene.”

By also sending the council an upper-tier tribunal decision and DWP guidance, Irvine’s strategy worked, and two days’ later, the council had revised its decision, agreeing to cover all the contractual rent. “I had asked the council to pay each the three-bed rate, as they were operating a ‘common household’ with the need for an extra bedroom to allow overnight carer stays,” he adds.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 99-year-old grandmother celebrates housing benefit win | LandlordZONE.

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Landlord suffers multiple injuries in violent tenant attack

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A Bournemouth landlord is recovering after being savagely beaten up by tenants outside his property.

Phil Nicolaou needed stitches to a head wound, suffered concussion, a fractured hand, cracked ribs and various cuts and bruises when the two young men laid into him with a baseball bat and plant pots as he attempted to change the locks.

Referencing checks

The first-time landlord admits he didn’t carry out the proper referencing checks after finding the tenant – a woman and her teenage and grown-up sons – on Gumtree, but explains that she initially paid her rent on time. Problems began last year when he advised her that he needed to put the £1,250 a month rent on the four-bedroom flat up by 10%, however when she protested, he paid back some of her deposit to absorb the extra cost.

Despite working – and renting a room to a foreign student – she began to withhold rent in January. In frustration, Nicolaou gave her notice in February and she stopped paying rent in March. “I tried to contact her but she blocked our numbers,” he tells LandlordZONE. “When we went round there, we found she had installed CCTV outside and changed the locks. We were verbally abused, so on our next visit, we planned to try and change the locks again.”

Tenants arrested

To partner Lauren’s horror, the woman’s teenage son and young foreign student set about Nicolaou with a heavy clay pot and bat and threatened him with a kitchen knife. He managed to stagger away without retaliating and after police arrived, the three tenants were arrested but released without charge. The couple were told it was difficult to convict minors and that they had provoked the attack by going to the house.

“We feel really angry and let down,” says Nicolaou. “We’ve asked Landlord Action to handle the eviction but know this could take months, while we are not getting the rent which we need to start legal action. I want to warn others that this particular family are very experienced and savvy when it comes to playing the system – I’m worried they’ll do this to someone else.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord suffers multiple injuries in violent tenant attack | LandlordZONE.

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Disgruntled renters offered free barristers to fight claims

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A new scheme linking tenants with lawyers has promised to level up the legal playing field.

Online claims management firm Veriwise and online portal Clerksroom Direct have teamed up to provide all Veriwse clients with legal representation from more than 1,000 specialist barristers, at no cost. When using the service, tenants will be represented in court and at formal meetings and in the drafting of legal letters and documents.

Deposit disputes

Veriwise takes on housing disrepair claims, deposit disputes and illegal eviction claims on behalf of renters, negotiating with councils or private landlords to fix the issues and claim compensation for renters. In cases of non-compliance, the firm will now present the case to legal counsel who can take the case to court to ensure the landlord complies and pays any compensation.

The firm pays on a conditional fee arrangement; it seeks compensation and costs from the defendants both pre-litigation and requests for costs awarded from the courts, dependant on each case.

Legal obligations

Veriwise founder Ajay Jagota believes many people know that most problems simply disappear as soon as they get a barrister involved – but most of them don’t live in rented properties. He says: “We’re giving people the expert legal back-up they need to make sure their landlords or letting agents fulfil their legal obligations and ensure they receive any compensation due, something wealthier households take for granted.” 

Clerksroom CEO Stephen Ward adds: “Clerksroom is a technology solution designed to give people direct access to barristers, so we’re a natural fit with Veriwise who are doing the same thing for renters.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Disgruntled renters offered free barristers to fight claims | LandlordZONE.

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Cost of Living Crisis – What do we do as landlords?

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We all know there is pain coming our way with the cost of energy prices, but the stark reality has hit home today even before the effects of oil and gas import restrictions from Russia bite.

Our tenant of a 3-bed bungalow had previously topped up her oil tank for around £250 in the past

View Full Article: Cost of Living Crisis – What do we do as landlords?