NRLA urges English Ministers to learn from ‘car crash’ renting reforms in Wales

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NRLA boss Ben Beadle has urged the government to learn from the “awful implementation” of Renting Homes Wales which he labelled a “car crash of epic proportions”.

Speaking on The Guild of Property Professionals’ The Home Stretch podcast, Beadle said it could help direct England’s rental reforms as senior judges were very concerned that possession orders had increased by 505% in Wales since the complex Renting Homes Act was introduced.

“I know the government are keen to crack on with rental reform but if the end product is a worsening of supply and a crisis of confidence – as you’ll need a hearing for every possible case under the new regime and courts need dramatic investment – the courts need to be ready.”

Beadle said the government’s recent announcement to include tenancy clauses banning anti-social behaviour and allowing landlords to give two weeks’ notice – was positive and he hoped that the NRLA’s concerns about student tenancies had landed following meetings with ministers.

Warped view

However, a warped view that those with an asset were “a filthy rich Dickensian villain with bags of cash” remained.

He added: “Decisions have been made to cool the market which have worked superbly as no one wants to invest and people want to exit.”

Beadle (pictured) said the sector was getting a kicking and although some elements needed repair, it hadn’t been helped by the government “taxing the pants off it and vilifying people who provide housing”.

While confidence was low and the NRLA’s members had suggested there could be the biggest level of disinvestment in a decade, he remained optimistic.

“I think landlords can deal with a lot of this stuff that’s coming down the track. Whether they will want to is up to them.”

View Full Article: NRLA urges English Ministers to learn from ‘car crash’ renting reforms in Wales

Meet Mark Alexander and Smith (Barrister-At-Law) – Baker Street Property Meet Wednesday 26th April

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Property118 Founder, Mark Alexander and Hon. Legal Counsel for Property118, Mark Smith, Head of Chambers at Cotswold Barristers, will be presenting in person an overview of several landlord tax strategies at the Baker Street Property Meet this Wednesday.

Are you looking for ways to structure your property business in the most tax-efficient way to minimise tax liabilities and maximise profits?

View Full Article: Meet Mark Alexander and Smith (Barrister-At-Law) – Baker Street Property Meet Wednesday 26th April

Will you? Two thirds of landlords to sell up if forced to upgrade EPCs

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Two-thirds of private landlords might sell up if they are forced to make EPC upgrades, new research finds.

The Mortgage Advice Bureau says 59% would consider selling their property due to not being able to afford the changes needed to meet the minimum level.

With an expected deadline of 2028 for landlords to retrofit their properties to a minimum of an EPC C rating, a lack of clarity regarding available help has left many anxious about how they will afford these changes.

The company’s survey of 500 landlords found that 25% said it was likely they wouldn’t be able to afford the changes, while 34% said it was quite likely they would sell their property instead of upgrading it.

Meanwhile, 30% plan to pass on the potential upgrade bill to tenants, and the same number reported that they had already passed on bills for other upgrades.

Of those landlords who are planning green updates, 26% want to install a smart meter to help hit a grade C, 25% would install LED lighting, 22% would consider installing a new modern boiler, and 20% would consider installing more insulation.

Mortgage Advice Bureau says there has been little in the way of policies, announcements, or clarity from the government, leaving landlords confused about what upgrades will help.

Deputy CEO Ben Thompson (pictured) adds: “Even if – as rumoured recently – the government delay the proposed deadline to 2028 for all rental properties, it isn’t long to find the money needed for the upgrades.

“This is especially challenging when considering the recent economic climate, which has seen mortgage rates increase and the cost of everyday items go up and up. There clearly needs to be more advice, guidance, and help for landlords.”

Read more: Claiming EPCs will cost £1000s to upgrade from D to C ‘inaccurate’ says expert

View Full Article: Will you? Two thirds of landlords to sell up if forced to upgrade EPCs

Service charge – do I have to pay?

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Hello, I own my leasehold flat in a block of 14 apartments. The management company has hiked the service charge from £2,500 to £6,500 pa.

There is some work to be done on the garden due to land slip but we’ve had no section 20 notice.

View Full Article: Service charge – do I have to pay?

Daily Telegraph wants to talk to student landlords

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Are you a landlord who rents to students or used to rent out to students? Then, Alexa Phillips, the personal finance reporter for the Telegraph would like to speak with you.

Alexa would like to talk to Property118 readers about:

• What are the challenges facing landlords renting to students?

View Full Article: Daily Telegraph wants to talk to student landlords

MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

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The Mayor of London has accused private landlords across the UK of taking rent worth £9 billion for homes that are ‘non decent’, £1.6 billion of which is paid for via housing benefit.

The figure is highlighted as, this morning, Sadiq Khan reveals his PRS research generated in partnership with campaigning group Generation Rent, covering not just the capital but other areas of the UK too.

Both have used strong language in their announcement. Khan says the situation is a ‘scandal’ while Dan Wilson Craw, Acting Director of Generation Rent says it is an ‘outrage’.

Their research is based on the Government’s existing definition of a ‘non decent home’ which includes properties that pose a risk to residents’ health or life, are in a bad state of repair, are cold or lack modern facilities. 

Housing benefit

The analysis reveals London has the highest ‘non decent’ rent spend, with landlords receiving £3.5bn in rent, £500m of which comes from housing benefit, every year from around 180,000 privately rented, non-decent homes in London. 

The second worst-affected region is Yorkshire and the Humber, where landlords are receiving nearly £1bn in rent, including around £130m a year in housing benefit, from around 160,000 privately rented, non-decent properties.

Meanwhile, private landlords in the South West are accumulating around £870m in rent, with more than £160m of this coming from housing benefit through letting sub-standard homes.

Khan says: “We are building a record number of new affordable homes in London, but we need to see national action to support renters. It is a scandal that some private landlords are profiting from letting sub-standard housing that is unfit for 21st century living.”

Craw (pictured) adds: “It is an outrage that not only can private landlords provide worse accommodation than social landlords, but they get paid more for it.”

The Government is due to bring in a specific and mandatory Decent Homes Standard for the PRS when its reform proposals become law, probably early next year.

View Full Article: MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

Short term/holiday lets?

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Hello, The rent from services like AirBnB are far higher than regular rentals. I estimated I’d only need to have my property occupied for around 1/3 of the year to make the same rent that I’d get for longer term rents.

View Full Article: Short term/holiday lets?

Court fines unlucky but rogue landlord £12,000 over unlicensed HMO

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A landlord in Buckinghamshire is the latest to receive a large fine for operating an unlicenced HMO.

Ahmad Kamal Younus, who owns a rental property on Ellsworth Road in High Wycombe, was recently found guilty of five offices Wycombe Magistrate Court by District Judge Sharma, including operating an unlicenced HMO and failing to ensure fire safety measures at the property.

Younus’ crimes would not have been discovered had it not been for a curious Environmental Health Officer who was visiting another property in the vicinity.

Although Younus, who operates through a limited company, initially tried to claim the detached suburban house (pictured) was his own family’s residence, investigations by the local council revealed six unrelated tenants living at the address.

It was in a poor condition including numerous fire safety hazards violations including a key turn lock (pictured, inset) on the final exit door at the rear of the property, contrary to Section 234(3) of the Housing Act 2004, which requires that this type of door can be opened from the inside without the use of a key.

Guilty

The landlord was taken to court over the illegal HMO and found guilty on all five charges, Judge Sharma concluding that he “must have known the house was an HMO”.

Younus was fined £5,000, ordered to pay costs of £6,878.96, and a victim surcharge of £190, totalling £12,068.96.

Mark Winn, Cabinet Member for Housing & Regulatory Services, said: “We are committed to ensuring that tenants live in safe and secure conditions. As part of this commitment, we will continue taking decisive action against landlords who put the welfare of tenants at risk by operating unsafe, unlicensed HMOs.”

The trial took place on 6 March 2023, at Wycombe Magistrate Court before District Judge Sharma. Mr Younus was found guilty on all charges, with the Judge concluding that he must have known the house was an HMO. The property was found to be in poor condition, with numerous fire safety violations.

Fine

Mr Younus was fined £5,000, ordered to pay costs of £6,878, and a victim surcharge of £190, totalling £12,068.

Mark Winn (pictured), Cabinet Member for Housing & Regulatory Services at Buckinghamshire Council, said: “We are committed to ensuring that tenants live in safe and secure conditions.

“As part of this commitment, we will continue taking decisive action against landlords who put the welfare of tenants at risk by operating unsafe, unlicensed HMOs.

“Landlords operating an HMO with five or more tenants must apply for a licence to ensure the safety and well-being of all residents.”

For more information on HMO licensing, visit the Buckinghamshire Council’s website.

View Full Article: Court fines unlucky but rogue landlord £12,000 over unlicensed HMO

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