Right to Rent appeal hearing: What does the industry think?

admin    Uncategorized     agents

The Home Office’s legal battle to defend the Right to Rent policy, which was deemed as unlawful and discriminatory by the High Court, began on Wednesday 15 January, and ended after a course of three days. The policy has been a topic of controversy in the industry, and the outcome of this appeal will be anticipated by many.

Founder of Landlord Action, and Brand
Ambassador at Hamilton
Fraser, Paul Shamplina, recently hosted a
letting agent focus group at the Hamilton Fraser offices, where agents from
different areas were invited to debate about a variety of topics and discuss
the challenges that they face in the private rented sector. On the topic of
Right to Rent checks, most of the agents expressed the view that it is a
complex and time-consuming process for them that they would rather not have to
deal with.

One agent who manages a local firm
said that the costs of compliance are making it harder for smaller agencies to
stay afloat. Another agent said that he raised his fees to make up for the
costs of complying with government-enforced policies such as Right to Rent
checks.

In March last year, following a
judicial review proposed by the Joint
Council for the Welfare of Immigrants (JCWI) and supported by Liberty and
the Equality and Human Rights Commission, the High Court ruled that the Right
to Rent policy is an unlawful scheme and breaches the European Convention on
Human Rights.

The Home Office was given an
opportunity to appeal the ruling, which was heard by three judges of the Court
of Appeal. The JCWI also participated in the hearing to fight against the Government’s
Right to Rent policy.

During the hearing, the JWCI’s
legal team argued that forcing landlords to carry out immigration checks leads
to racial discrimination in the housing market. Based on their research, the
JCWI argued that where prospective tenants are unable to provide a British
passport, landlords tend to rely on unfair and stereotypical characteristics of
“Britishness”, such as skin colour, names, and accents.

They suggested that this was an
expected and inevitable consequence of the Right to Rent scheme, and that the
Government should be held accountable for any discriminatory actions made by
landlords as a result.

Chai Patel, legal policy director
of the JCWI, commented: “Landlords
faced with the risk caused by complex immigration checks inevitably end up
discriminating against people without a British passport, especially ethnic
minorities. It must be scrapped so that everyone has a fair shot at
finding a flat, whatever the colour of their skin or their passport.”

The Home Office argued that the
scheme is intended to reduce illegal residence in the UK, and that any
discrimination caused by the scheme can be justified.

Paul Shamplina, commented: “I have
always voiced my disapproval of Right to Rent. The scheme is problematic and it
places a heavy burden on landlords because of the possibility of discriminating
against tenants.”

“We await the judge’s decision
from the appeal hearing as the result will undoubtedly have a significant
impact on our industry”.

The appeal case is now in the
hands of the judges for deliberation, and a ruling is expected to be heard
within the next few months. Be sure to check our news portal regularly,
and subscribe to our
newsletter list to stay up to date on the case.

To learn more about Right to Rent
checks, visit Hamilton
Fraser’s legislation guide.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Right to Rent appeal hearing: What does the industry think? | LandlordZONE.

View Full Article: Right to Rent appeal hearing: What does the industry think?

RLA responds to Bournemouth licensing proposals

admin    Uncategorized     agents

The RLA has opposed plans to introduce selective and borough-wide additional licensing in Bournemouth, Christchurch and Poole. The council is proposing to introduce a selective licensing scheme across four specific areas within the areas of: • Southbourne, Boscombe, Pokesdown, East Cliff & Springbourne • Westhill, Westbourne and Bournemouth Town Centre, • Poole Town • Winton […]

The post RLA responds to Bournemouth licensing proposals appeared first on RLA Campaigns and News Centre.

View Full Article: RLA responds to Bournemouth licensing proposals

Planning permission and licence applications?

admin    Uncategorized     agents

Waltham Forest have made changes to their renewed licence scheme that comes into effect on 1st May such that additional licensing will apply to smaller houses in multiple occupation (HMOs) that are not covered by the mandatory HMO or selective licence schemes.

The post Planning permission and licence applications? appeared first on Property118.

View Full Article: Planning permission and licence applications?

No housing benefit but what if they need it during tenancy?

admin    Uncategorized     agents

We do not accept housing benefit and always make sure that tenants are working. We also put on our lease that Housing benefit is not accepted and that if the tenant needs to claim it, we will have to give them 2 months notice.

The post No housing benefit but what if they need it during tenancy? appeared first on Property118.

View Full Article: No housing benefit but what if they need it during tenancy?

A new dawn: NRLA identity revealed

admin    Uncategorized     agents

A new logo and branding for the National Residential Landlords Association has been revealed today. With the merger of the National Landlords Association (NLA) and the Residential Landlords Association (RLA) now just weeks away, bosses have unveiled the corporate identity of the new organisation. Ben Beadle, chief executive of the NRLA said: “For decades now […]

The post A new dawn: NRLA identity revealed appeared first on RLA Campaigns and News Centre.

View Full Article: A new dawn: NRLA identity revealed

Why this budget needs to get Britain moving again

admin    Uncategorized     agents

First Brexit. Now Coronavirus. With consumer confidence at a low, the housing market faces the prospect of another moribund year – unless Boris rethinks stamp duty and stops over-taxing landlords, in a bid to ease up housing affordability and supply.

That’s the view of property professionals in the lead up to Wednesday’s budget with stamp duty reform top of the wishlist’s of many. “Boris Johnson has previously pledged to implement changes to Stamp Duty legislation by raising the threshold to £500,000. It would relieve large sections of the country from the burden of stamp duty and go a long way to bolstering consumer confidence,” says Iain McKenzie, CEO of the Guild of Property Professionals.

The mooted 3% stamp duty surcharge on Non-UK investors
divides opinion, but its introduction may help ease the “chronic imbalance”
between supply and demand of housing stock, says Jamie Johnson, CEO of FJP
Investment, whose recent poll of 750 UK property investors found that 70% were
in favour of the surcharge. “With such
widespread support, the Government could go further still and also reduce the
tax on first time buyers who have yet to gain a foothold on the property ladder,”
he comments.

It’s expected that the Government will hold firm on its commitment
to repeal Section 21, which will make it harder for landlords to evict tenants.
And it’s unlikely there will be a U-turn on the phasing out of mortgage relief for
landlords. But increasing regulations and taxes are the main reason for 37% of
landlords saying they are looking to sell properties in 2020, according to
research by Accumulate Capital.

“The Government should do more to support landlords to
remain in the sector, not drive them out,” says McKenzie.

Reforming stamp duty is a complex task, however, and compromise
may be the answer, thinks Sean Hooker, head of redress at the Property Redress
Scheme. “I can see a tweak in so far as overseas landlords facing a penal hike.
However, domestic landlords should not expect a rolling back of the past
changes brought in to ‘stimulate’ the first-time buyer market.”

High numbers of landlords may be planning to sell up this
year. But many are considering migrating to the short-let sector, potentially
removing nearly half a million properties from the long-term PRS housing stock.

David Alexander, head of the property management
company Apropos by DJ Alexander, is calling for a level playing field between
the long and short-term rental sectors. “It cannot be right that short term
holiday letting enjoys a more favourable tax environment,” he comments. “Surely the long-term
letting market, which provides permanent homes for millions of individuals,
deserves comparable treatment to a market providing holiday homes for
tourists?”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Why this budget needs to get Britain moving again | LandlordZONE.

View Full Article: Why this budget needs to get Britain moving again

Open A Business Bank Account In Minutes

admin    Uncategorized     agents

For landlords who need to open a business account FAST we recommend Tide.

In just just a matter of minutes you can open a business bank account online and obtain an account number, sort code and a free business Mastercard (applicable to Limited Companies and LLP’s as well as sole owners).

The post Open A Business Bank Account In Minutes appeared first on Property118.

View Full Article: Open A Business Bank Account In Minutes

The property ‘academies’ praying on students’ loans

admin    Uncategorized     agents

Two young entrepreneurs have warned students about the danger of being lured by property training companies who are only after their student loans.

Josh and Dan spoke out this week in a
video on Property Tribes, an online forum for landlords, revealing how one firm
instructed them to target students by creating appealing content on YouTube and
social media.

It follows a number of stories in the
media about property investment training ‘academies’ touting
themselves as a quick-fix solution for those either looking to pay off debts,
‘get rich quick’, or invest in property with very little cash. Last week, a BBC investigation highlighted the tragic
case of Danny Butcher, a former soldier who killed himself after trying to
clear his debts by enrolling on a £13,000 course run by Property Investors.

Josh and Dan were hired to do
marketing, content creating, and social media posts, and were told to target
students who could use their student loan to pay for the training course, with
the lure of ‘financial free passive income’. They soon became uncomfortable with
the arrangement and no longer work for the firm.

“Some students want to be an entrepreneur, but there’s
naivety as they don’t understand what they’re being targeted by. Young people
like to be told they can be financially free, but if you don’t have to put much
work in, you probably won’t get much out,” says Dan.

Josh adds: “They sold us a job in the same way they sold their course. Now we can see they just want to get people through the door. I was filming a mentor session, and after the mentee left, the property trainer said ‘they won’t go anywhere’, but they’ll still take their money.”

The pair are urging others to be wary of salesmen with these property trainers who might also recruit them to work on similar projects. “They’ll take advantage of your hunger and passion,” says Josh. “You’re just cattle to them.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The property ‘academies’ praying on students’ loans | LandlordZONE.

View Full Article: The property ‘academies’ praying on students’ loans

Corporate let turned into party central

admin    Uncategorized     agents

A landlord tells of his ongoing dealings with a ‘corporate let’ company who promised him an embassy tenant, but instead have turned his property into party central.

When Panos Lassi bought his three-bed flat in Chelsea, he decided it made more financial sense to rent it out to cover the large mortgage and to rent somewhere cheaper for himself to live in.

The post Corporate let turned into party central appeared first on Property118.

View Full Article: Corporate let turned into party central

‘How my Chelsea flat meant for corporate tenants became an AirBnB bachelor party pad’

admin    Uncategorized     agents

One landlord tells LandlordZone of his ongoing dealings with a ‘corporate let’ company who promised him an embassy tenant – and instead have turned his property into party central.

When Panos Lassi bought his three-bed flat in Chelsea, he
decided it made more financial sense to rent it out to cover the large mortgage
– and to rent somewhere cheaper for himself to live in.

His lettings agent, from a leading national agency,
recommended a “corporate lets” company who promised him the perfect tenant. “They
told he was a single guy who works for the French embassy. They even sent me an
email, apparently from the embassy, showing me he was an employee,” says Lassi.
“The agent reassured me that they had worked with this client for five years, so
I didn’t need to ask for a deposit and I should drop the rent by £500 a month
to just over £3,000,” he says.

Lassi agreed a two-year fixed rent contract without a break
clause. But he soon began receiving late night calls from neighbours
complaining about the noise and a letter of complaint from the council. “The
‘corporate agent’ is advertising the flat for up to eight people a night on
AirBnB and earning £7,000 a month,” says Lassi. “When I asked my lettings
agent, who is charging 11% to find me a decent tenant, they said they had no
idea about any of this.”

Lassi is fortunate, at least, in receiving the rent that was
agreed with the company. But he fears taking the company to court will cost him
thousands of pounds and several months – and he may still lose. “I’ve weighed
up my options and decided the lease to run its course,” he says.

He is also worried about heavy wear and tear on his property
– “I didn’t agree to rent it out nightly,” he says. “We found cigarette butts
stuck in the drain hole on the roof terrace, which caused water to flood in to
my neighbour’s apartment below. My insurance has doubled to £5,000 a year as a
result,” says Lassi.

As his mortgage company, insurance company and the council
disallow use of this property for short lets, he is also potentially in breach
of various contracts. “I’m taking all the risk. The bank view me as a victim, but
the insurance company say it could be a problem,” says Lassi, who is now
seeking damages and a refunded of his fees from the lettings agent.

There is a desperate need for regulation surrounding
guaranteed rent, or rent to rent, companies, says Paul Shamplina, founder of
Landlord Action, who is familiar with Lassi’s case.

“There are more and more of these serviced apartments and
rent-to-rent companies in the industry because of the growth in the shared
economy and increasing rents. Demand is especially strong in London,” says
Shamplina.

“Lettings agents need to be much more transparent and
stringent about the companies who are taking out the rental – and they need to
explain the repercussions to landlords, such as the endless possible breaches, such
as sub-letting in a block, renting to illegant immigrants, and issues of anti-social
behaviour and noise,” he adds.

“We need a trade body or association that oversees
guaranteed rent and rent-to-rent so that landlords and sub-tenants know who to
pay their money to and who to deal with if anything goes wrong. At the moment,
it’s the Wild West.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘How my Chelsea flat meant for corporate tenants became an AirBnB bachelor party pad’ | LandlordZONE.

View Full Article: ‘How my Chelsea flat meant for corporate tenants became an AirBnB bachelor party pad’