Speedy writs of possession

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Here at the Sheriffs Office we have been pleasantly surprised at the speedy turnaround of writs of possession over the past few months. This can be a huge advantage to landlords for whom receiving rental income is important, and to whom rogue tenants have caused undue stress and financial hardship.

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Landlords, Let Your Property for Free!

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HomeRenter, the online lettings marketplace which launched a beta version in Autumn 2017 and seeks to cut out the estate agency middleman, has launched a new trial proposition for landlords starting this month.

The site is offering landlords a no-strings-attached, six-month free trial of the service that includes 30 days worth of advertising across leading property search portals such as Rightmove, Zoopla and PrimeLocation, a bookable viewing service, tenant referencing tools, access to digital lease contracts with e-signature and a HomeRenter To Let board for free. Full details can be found here: https://www.homerenter.co.uk/landlords

The aim behind HomeRenter is to create an online platform where landlords feel comfortable managing their rental property or, indeed portfolio, across the duration of their ownership.

As such, landlords are encouraged to list properties on a rolling annual membership package, and the 6-month free trial is a taster of the full membership offer which bundles in 90 days of portal advertisements, plus complimentary tenant referencing and professional photography.

Who’s eligible?

The offer applies per property loaded by an individual landlord – so, theoretically, if you’re lucky enough to be a portfolio landlord you could upload each of your properties to a trial package.

HomeRenter only works with the residential lettings market so, whilst the offer doesn’t apply to commercial premises, it is open to the full spectrum of rental homes from buy-to-let investments, second homes, through to rooms to let in house-shares by live-in landlords and HMOs.

What’s the catch?

The 6-month trial has no hidden fees and users are free to cancel at any point in time with no commitment to upgrade to an annual membership fee. The portal advertising can be used when most needed, so landlords whose properties aren’t yet in ‘tenant find’ mode can ‘bank’ their adverts and use as required across the six month trial. Likewise, if a landlord is using a property for short term lets, they can use every aspect of the trial across multiple tenancies.

Will Handley, CEO and Co-founder of HomeRenter commented,

“Thanks to Section 24 and a raft of tax measures penalising the buy-to-let sector, private landlords are having an incredibly tough time of it in 2018 and, as things stand, matters will only get worse as tighter measures begin to bite – so our free trial couldn’t come at a better time for UK landlords!

We believe our free trial represents out-of-this-world value for today’s stressed-out landlords, and, whilst there’s no requirement to upgrade to the annual paid-for membership, we obviously hope we’ll see landlords stay the course with us once they’ve sampled the HomeRenter experience!”.

More details of HomeRenter’s landlord packages can be found here: https://www.homerenter.co.uk/landlords

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords, Let Your Property for Free! | LandlordZONE.

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Some Licensing Scheme rules are illegal

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Selective Licensing:

The Court of Appeal has today ruled that councils cannot use selective licensing conditions to impose new standards on private rented homes.

The case saw Paul Brown, a landlord in Accrington, challenging Hyndburn Council which sought to use its selective licensing scheme in certain areas of the Borough to force the installation of carbon monoxide detectors and also to carry out electrical safety checks and implement their findings.  The case was supported by the Residential Landlords Association.

Whilst Mr Brown had already carried out both of these requirements, he argued that imposing such standards through licensing schemes went beyond the powers available to local authorities. The Court of Appeal has today agreed.

Instead, the Court, Mr Brown and the RLA argued that rather than relying on licensing schemes which only cover certain properties, electrical and gas safety issues are best addressed by councils using the extensive powers they already have under the Housing, Health and Safety Rating System (HHSRS). This is the risk-based evaluation tool to help local authorities identify and protect against potential risks and hazards to health and safety from any deficiencies identified in dwellings. Crucially, this applies to all private rented homes, whether they require a licence or not.

The RLA is calling for the guidance associated with the HHSRS, which was last published in 2006, to be updated urgently to reflect considerable changes in the sector since then. This would better support councils to use and enforce their powers under this system.

The RLA Policy Adviser, Richard Jones, said:

“This case was not about trying to stop Councils from imposing requirements.  It was about how they go about this ensuring that they use the proper processes which already exist.

“Today’s judgement is a reminder that councils already have extensive powers to deal with properties found to be unsafe and they must act in a legal manner.”

The RLA represents over 50,000 private sector residential landlords in England and Wales.

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Landlords selling rental properties fuels £5.5bn CGT bonanza

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Capital gains tax receipts hit £5.5bn in January and leaves the Treasury on course to rake in £8.8bn this tax year. Analysis of the tax receipts by NFU Mutual, the financial advice firm, show the taxman is set to collect around £0.4bn (5%) more than in 2016-17.

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I might be late to the HMRC party!

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I might be late to the party with this one. Yesterday I received from HMRC a letter/notice under Paragraph 1, Schedule 23 to the Finance Act 2011 from HMRC requiring me (as a letting agent) – a ‘relevant data holder’- to provide ‘relevant data’ about the landlords I manage for and the payments that have been made to them.

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Who is on the hook for flood damage to tenants’ possessions?

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A water pipe has burst in a brand new property rented by a family member of mine. Lots of the tenants possessions are water damaged.

The landlord (a big corporate London agency) is doing the right thing and paying for alternative accommodation –

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BBC Panorama to debate Section 21

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Section 21 evictions:

The future of the no-fault eviction process, mainstay of the Assured Shorthold Tenancy since its inception in 1988, is to be debated on a BBC Panorama programme this evening, Wednesday 21 February at 8:30 pm.

The programme, with an interview featuring Landlord Action’s Paul Shamplina, will investigate the widely debated Section 21 no-fault eviction procedure, and the programme questions whether tenants deserve more protection, or whether new rules would make the housing crisis even worse.

Paul Shamplina puts forward the case for retaining the process, arguing from his own experience, gained over many years running a leading national eviction company, what he claims are the real reasons why landlords turn to Section 21.

Instances of what have come to be known as `no-fault evictions’ are reported to have trebled in the last eight years. BBC’s investigative journalist, Richard Bilton, claims to shed light on the difficulties faced by many private tenants in the UK, who have no long-term right to stay in their homes, and can be ordered to leave with “little by the way of notice or explanation”.

Richard meets some of the people whose lives have been plunged into chaos by their landlords but also talks to landlords who feel Section 21 is their only option. Britain depends on the private rented sector (PRS), and ‘no fault evictions’ feel like a lifeline for Britain’s millions of landlords, and the main reason why they stay in the business.

Panorama interviewed Paul Shamplina, who Founded Landlord Action in 1999, and their senior solicitor, Emma Philips, about the rise of section 21 no-fault evictions.  Commenting on the program, Mr Shamplina says:

“When asked to appear on Panorama, I felt a necessity to present the landlords’ side on why so many use no-fault Section 21.  The term ‘no fault’ is really a bit of a red herring.  There is always a reason why a landlord ends a tenancy, but it’s a far cry from the headlines showing that landlords use it just to throw tenants out.

“If a landlord has a good tenant, the last thing they want to do is get rid of a them. However, in our experience, the main reasons for serving Section 21 notices are for rent arrears, tenants requesting to be evicted so they can be re-housed or, most recently, because landlords wish to sell their property owing to impending tax liabilities.”

New tenancy rules introduced in December 2017 ended the practice of no-fault evictions in Scotland. It introduced a time limitless tenancy for the PRS, with 18 grounds on which the landlord, providing sufficient evidence is put forward to a property tribunal, can argue for re-possession. Rather than having an automatic right to the property back, landlords in Scotland will place themselves in the hands of a tribunal.

Following this, Labour leader, Jeremy Corbyn said his party’s next manifesto will include a pledge to scrap no-fault evictions in England.

Shamplina adds: “There are some very good tenants out there.  Sadly in some cases, they are being evicted through no fault of their own but rather because of their landlords’ circumstances, which must be very upsetting.  However, in my opinion, the abolition of Section 21 in England would compound the housing shortage.”

The average time taken for a landlord to evict a tenant using Section 21 is between 3 and 9 months, and more evictions are carried out by the smaller social landlord sector (councils and housing associations) than in the PRS.

Watch Panorama on BBC One, Wednesday 21st February, 8:30 pm.

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BBC Panorama to debate Section 21 no-fault eviction featuring Landlord Action

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This week, BBC Panorama (Wednesday 21 February at 20:30) investigates the widely debated Section 21 no-fault eviction procedure and whether tenants deserve more protection, or whether new rules would make the housing crisis worse. The show will feature leading tenant eviction company

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Additional Licensing proposal in Bristol

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This is a must read for all landlords with HMO’s in Bristol.

The council proposes to introduce an Additional Licensing scheme for houses in multiple occupation across Bristol City.  Specifically 12 wards that make up central Bristol – Ashley

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RLA calls for Housing Tribunals

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Housing Courts:

At a recent meeting with the new Minister for the Private Rented Sector, Heather Wheeler MP, at the newly named Ministry of Housing, Communities & Local Government (MHCLG), landlord representatives from the Residential Landlords Association (RLA) called for housing courts, similar to the First-tier Tribunal for Scotland (Housing and Property Chamber)*.

Given the sheer amount of change going on in the private rented sector (PRS) the minister was told that more strategic thinking was needed, rather than what appears to be the government’s piecemeal approach to the PRS.

The meeting was attended by representative of landlords’ and agents’ organisations across the sector, including the National Approved Letting Scheme (NALS), ARLA Propertymark, the National Landlords Association (NLA), and the Royal Institution of Chartered Surveyors (RICS).

It is argued in the sector that the sheer amount of change introduced by new rules and regulations was overwhelming many small-scale landlords, making it difficult to assimilate the new information and comply with all of it.

The RLA stepped up its call for a dedicated housing tribunal (housing court) that could deal more quickly, and give landlords and tenants access to justice less expensively, here experts in the field could preside over practical issues as opposed to purely legal rules.

Currently, the legal system open to landlords and tenants, using the overworked and under resourced county courts, is slow, expensive and rule bound. Legal wrangles and arguments between landlords and tenants can become protracted, they can drag on for months and become very expensive.

If, as has happened in Scotland, the Section 21 eviction process is watered down, and long-term tenancies become mandatory, housing tribunals would become essential, as otherwise landlords could be waiting 12 months or more to rid themselves on non-paying tenants.

The RLA’s representative said:

“This is crucial for landlords [housing courts] who might be prepared to offer longer tenancies to those who want them but who are fearful of being locked into a tenancy and unable to swiftly regain possession of their property if tenants are failing to pay their rent or are committing anti-social behaviour.”

RLA policy director, David Smith, who attended the meeting said:

“We welcome the Minister’s early engagement with the sector and her positive attitude towards supporting the majority of landlords who provide good housing and abide by all their responsibilities.

“It provides a good starting point as the RLA works with the Government to ensure the rental sector is fit for its changing role and works for tenants and landlords.”

* The First-tier Tribunal for Scotland (Housing and Property Chamber) was formed to deal with determinations of rent or repair issues in private sector housing; assistance in exercising a landlord’s right of entry; and relatively informal and flexible proceedings to help resolve issues that arise between homeowners and property factors. From 1 December 2017, following the introduction of The Private Housing (Tenancies) (Scotland) Act 2016 and the new ‘private residential tenancy’ the Chamber began to receive more private rented cases, being applications provided for by the transfer of jurisdiction from the Sheriff Courts of non-criminal matters arising from regulated, Part VII and assured tenancies (Housing (Scotland) Act 2014 refers).

The Chamber also receives applications for rent assessments, drawing up of terms, evictions and other non-criminal matters arising from the new private residential tenancy.

Labour have committed themselves to bringing in similar new measures in England to those already enacted in Scotland, which if implemented would necessitate a similar tribunal system in England.

The new Scottish tenancy is not just a longer tenancy, it is open-ended. It lasts until either the tenant wishes to leave or the landlord exercises one (or more) of 18 grounds for eviction. It offers a higher degree of protection for tenants including: limits on rent increases, fair rent officer assessments, and extended landlord notice periods. Landlords must give 84 days’ notice to a tenant to leave after the first 6 months. There will be rent compensation orders for ‘wrongful termination’ and some local authorities in Scotland are given the power to cap the levels.

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