Landlords selling up will keep rent inflation high

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The latest rental market report from Zoopla offers tenants little hope that rents will begin falling any time soon – as landlords ‘rationalise their portfolios’ or leave the market altogether.

Zoopla says that rent inflation in March has slowed to 11.1% –

View Full Article: Landlords selling up will keep rent inflation high

NEW landlord eviction powers to include removing unruly tenants in TWO WEEKS

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The detail of the Government’s anti-social crackdown have been published, including how landlords will be given more powers to eject tenants who misbehave quicker and more easily.

Called the Anti-Social Behaviour Action Plan, it includes a promise that Minister plan to “change laws and arm landlords with the tools to ensure that anti-social tenants face the consequences of their actions”.

The measures, which will be included in the expected Renters Reform Act, will make grounds for possession – the legal reasons a landlord can evict a tenant – faster and far easier to prove.

“This will mean landlords can take immediate action – rather than giving two months’ notice and waiting for the end of a fixed term, as they currently need to when relying on Section 21,” the Government says.

This will include:

• Ensuring all private tenancy agreements include clauses specifically banning anti-social behaviour – making it easier for landlords to use the breach of tenancy ground to evict anti-social tenants.
• Making the notice period two weeks for all anti-social behaviour eviction grounds as part of our reforms for renters.
• “We will also ensure that landlords are aware of existing tools – such as injunctions and Criminal Behaviour Orders – to crack down on anti-social tenants.
• Expanding the discretionary eviction ground  to make anti-social behaviour easier to prove in court  and clarify that any behaviour ‘capable’ of causing ‘nuisance or annoyance’ can lead to eviction.
• Speeding up the process of evicting an anti-social tenant by working with the courts system to explore how to prioritise anti-social behaviour cases in Possession Lists.
• Bringing forward legislation which will set out the principles that judges must consider when making their decision, such as giving weight to the impact on landlords, neighbours, and housemates and whether the tenant has failed to engage with other interventions to manage their behaviour.

Evictions expert Paul Shamplina says: “At Landlord Action we’ve been pushing the Government to give landlords an alternative to Section 21 notices once this type of eviction is abolished by the Renters’ Reform Act, most likely next year.

“It’s good news that Ministers have been listening to us and other voices within the landlord community. Landlords need to be able to quickly evict tenants who behave badly within their properties.”

Read the plan in full.

View Full Article: NEW landlord eviction powers to include removing unruly tenants in TWO WEEKS

Advice needed about a letting agent’s full management contract?

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Hello, I have full a full management service with a letting agent who conducts property inspections and sends me a copy of their report, along with any recommendations. However, a few months after their inspection, the council conducted their own inspections and identified six recommendations for repairs that were not included in the letting agent’s report.

View Full Article: Advice needed about a letting agent’s full management contract?

Housing ministers contradict themselves over Renters Reform Act plans

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The timing of the long-anticipated Renters Reform Bill is still in doubt after housing ministers appeared to contradict each other.

In the Commons yesterday, the minister in charge, Rachel Maclean, confirmed comments she made at a recent renters’ reform rally that it would be introduced by the autumn.

She also confirmed, “the Government’s commitment to abolish section 21 evictions as soon as parliamentary time allows”.

This could mean the Bill would be introduced to the Commons sometime before 23^rd September – the official start of autumn according to the Met Office – despite Housing Secretary Michael Gove’s pledge at the weekend that it would be introduced in two months’ time.

Reforms

He told the Sunday with Laura Keunnsberg programme: “We’re bringing forward reforms a little later this year – in a couple of months’ time actually – to see how the private rental sector can be better regulated.”

The reforms were originally expected within a year of the A Fairer Private Rented Sector White Paper, in June or July 2023.

According to Robert Bolwell (pictured), senior partner at Dutton Gregory solicitors, a Bill would normally take a year to go back and forth between parliament and the Houses of Commons and Lords, meaning that if it was put forward by September, we could see legislation in September 2024.

However, speaking in a Goodlord webinar, Bolwell, explained that legislation normally takes effect on either 1st October or 1st April.

If the bill became a parliamentary Act in September 2024, it was unlikely to become law in October 2024, and would be more likely to happen in April 2025 – although a general election would cause disruption and a new Labour government could completely derail it.

View Full Article: Housing ministers contradict themselves over Renters Reform Act plans

Big council sets housing policy based on ‘shrinking landlord numbers’

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Barnet Council has announced new housing strategies based partly on its experience of a shrinking private rented sector.

The London borough’s new Housing, Homelessness and Rough Sleeping Strategy proposes increasing the supply of affordable housing for rent and home ownership with the aim of delivering 1,000 new council homes at 50% of market rental rates and improving the council’s housing stock so it reaches Net Zero by 2030.

It also wants to improve the quality of private sector rental properties and promote private tenants’ rights.

In its strategy report, the council cites ongoing contraction of the private rented sector due to challenges of affordability as well as increasing demands on private landlords impacting viability.

Contracting

It says: “Barnet has historically had strong access to the private rented sector, which has helped to lower the numbers in temporary accommodation. The private rented sector is contracting, and fewer private rented sector lettings are now being made.”

When considering how to prevent homelessness it says that in the past, many people have been supported to stay in their households as part of Barnet Homes’ homelessness prevention work, including through use of financial interventions such as Discretionary Housing Payments.

Challenging

The report adds: “It is becoming increasingly challenging to sustain people in their existing tenancies due to affordability constraints, and an increase in private sector landlords exiting the market.”

Housing and growth committee chair, Labour councillor Ross Houston (pictured), says: “We will be consulting on the four new proposed housing-related strategies and policies, and I encourage all residents to get involved in building the future of the borough.”

Read more about landlords leaving the sector.

View Full Article: Big council sets housing policy based on ‘shrinking landlord numbers’

Right of Cancellation for a property management service?

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Hello, I invoked a Right of Cancellation for a property management service within the 14 day period, using the method defined in their terms of business and based on the The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 recommendation.

View Full Article: Right of Cancellation for a property management service?

Southern Landlord Show to offer advice on tax, law, EPCs and mortgages

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Landlords in the South of England are being invited to attend a landlord show being held by one of the region’s larger letting agencies.

Charters, which is holding even at its large HQ in Southampton tomorrow, says the show will offer buy-to-let landlords advice on how to manage their portfolios more efficiently, along with an exhibition of specialist firms.

This will include a leading legal firm, EPC advisor, accountancy and tax specialist, mortgage broker and a rent guarantee service supplier.

Free advice

Visitors will also be able to attend free seminars including a session on recent and looming regulation changes faced by the private rental sector.

The exhibitors are from some of the leading names associated with the rental market in the south.

In its second year, the show is being attended by Dutton Gregory Solicitors, Menzies LLP, and Goodlord.

Landlords interested in attending should can visit the firm’s website or come along to the venue at 73 The Avenue, Southampton SO17 1XS, UK.

View Full Article: Southern Landlord Show to offer advice on tax, law, EPCs and mortgages

‘Difficult times’ predicted for Scotland’s tenants with new First Minister

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Tenants in Scotland could face ‘difficult times’ with the announcement that Humza Yousaf has won the race to replace Nicola Sturgeon as leader of the SNP and First Minister.

One critic says that Mr Yousaf’s ‘negative attitude’ to the private rented sector (PRS) will see higher rents

View Full Article: ‘Difficult times’ predicted for Scotland’s tenants with new First Minister

TV star agrees higher landlord taxes are shrinking supply within rental market

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Property expert and TV presenter Phil Spencer believes landlords are being disadvantaged by tax rules that have made the profession less attractive to investors.

He says landlords are being forced out of the sector, leaving both them and renters in a vicious circle. Speaking at the Ideal Home Show, Spencer said that while there isn’t much compassion for landlords, he believes the issue of buy-to-let mortgages is more worrying than the cost-of-living crisis.

“I’m particularly worried about the rental market at the moment because tenants are having it really hard because of a lack of choice, which produces inflated rents,” he tells Metro.

“It’s good for landlords and it’s bad for tenants, but that’s actually come about as a result of what is bad for landlords.”

Fewer landlords

Spencer explains that he wants people to appreciate that what is bad for landlords – changing tax rules and the fact buy-to-let is not generally seen as an attractive investment –makes it hard to make money, which means there are fewer landlords.

“Existing landlords are selling up, and new landlords aren’t coming into the market,” he adds. “Nobody has sympathy for landlords, and I completely get that, but the result of that is that there are less places to rent for tenants and rents are rising hugely. It’s a vicious circle and I see that as a real worry for society.”

Read more about landlord tax.

View Full Article: TV star agrees higher landlord taxes are shrinking supply within rental market

Legionella risk, one aspect of letting that many landlords never think about…

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Landlords (and their agents) have a serious responsibility to undertake actions to protect tenants, visitors and passers-by, preventing Legionella bacteria from causing a health hazard. This dangerous bacteria can lie undetected in a property’s water systems. What’s more, it can lead to deadly Legionnaires’ disease if inhaled. Legionnaires’ disease is a pneumonia-like illness which can be and has been fatal.

The landlord’s (and agents) responsibility to their tenants and others is their legal duty to ensure that their properties remain safe from all hazards. Residential or commercial properties are affected by this because with modern complicated water systems there is an increased risk of the presence of Legionella bacteria.

The bacteria will typically be found in dirty and poorly maintained water systems and in particular where water lies stagnant for long periods in water tanks and pipes, plumbing systems, air conditioning, even decorative fountains, saunas and hot tubs. Spray points like showers, sprinklers, where water droplets are formed are particularly at risk.

Void periods

When water is left to stand for long periods of time, for example during void periods between tenancies, landlords should be aware that special precautions are needed. According to the World Health Organisation, the bacteria live and grow in water systems at temperatures of 20 to 50 degrees Celsius where there is no regular flow.

A simple precaution is to run-off all water from tanks, cylinders and taps in the rental property weekly and always before a new tenant takes up occupation.

Leveraging IoT to Minimise Legionella Risk for Landlords

One neat solution being suggested for landlords and their agents is provided by connectivity specialists Glide UK. For those properties, homes or commercial buildings, where water systems may lay dormant for long periods, where water is not being flushed through regularly, landlords must find reliable ways to ensure the water systems are safe.

The solution, according to Glide UK, lies in the Internet of Things (IoT). The Internet of Things (IoT) is the term used to describes the network of physical objects, “things” that have sensors embedded in them that are connected to the internet.

As these devices are increasing adopted in modern systems, remote and effortless control over the internet becomes increasingly feasible. Sean Lowry, CTO of Glide, says that through the use of IoT devices, landlords can effortlessly monitor and control their water systems across all properties, and significantly reduce the risk of legionella within their properties.

Mr Lowry says that:

“…by deploying clamp sensors for hot and cold water pipes, the right solution can detect both lack of flow and water temperature. When legionella risk rises, landlords are automatically notified to flush relevant systems”

“The role that technology plays in tracking and analysing IoT sensor data, to enable smarter decision-making for landlords, while also providing a historical paper trail for compliance purposes

“The important role that a high-speed and stable internet connection plays in enabling landlords to leverage IoT devices to create automated and seamless monitoring for their properties.”

Risk Assessment of Legionella

Letting agents and landlords are obliged by law to carry out checks for legionnaire’s disease between tenancies, and if necessary, take action. A written risk assessment is the best way to show that this has been done.

These guidelines apply primarily to England. Other regions and jurisdictions are similar but there may be important differences. This article is not a definitive interpretation of the law, every case is different and only a court can decide. If in doubt, seek expert advice.

Who is responsible?

Where a property is under full management by a professional agent, then clearly the agent has responsibility for meeting these legal requirements as well as the landlord – responsibility may be shared. However, where the landlord is managing the property him or herself, then the landlord takes on that full responsibility, along with all the other legal requirements for health and safety such as annual gas checks etc.

Clearly, Houses in Multiple Occupation (HMOs) pose a greater risk and the “responsible person” the person who has the duty to manage the property is obliged to carry out a risk assessment for Legionella risk, as well as for general and fire safety under The Management of Houses in Multiple Occupation (England) Regulations 2006

However, landlords of single buy-to-let properties are also affected by Legionella checks. Although an individual house our flat generally poses no greater risk for legionella than an owner occupied property, unless there are unusual circumstances, nevertheless there is still a risk which must now be addressed by all landlords and agents.

The guidance for HMOs specifies annual risk assessments and insists that landlords and agents keep records of these for at least five years.

What is Legionnaires Disease?

Legionnaires is a pneumonia like illness caused by the Legionella bacteria, which can be fatal. Legionella bacteria are widespread in rivers, lakes and water systems where the temperature of the water is such as to encourage growth of the bacteria, e.g. a hot water system. People can catch the disease by inhaling small droplets of water which may be suspended in the air and contain the bacteria. Stored and recirculated water is a particular risk.

Landlords and agents should be aware that legionella bacteria can multiply in hot or cold water systems and water storage tanks. The bacteria can be spread via showers and taps, especially if they have not been used for some time. The risk assessment must assess the risk and identify potential sources of exposure, followed by, if necessary, steps necessary to prevent or control any of the identified risks.

It is acceptable for risk assessments to be carried out by a reasonably competent person, usually the agent or landlord and it is not normally considered necessary to have a professional assessment carried out.

A risk assessment involves assessing whether conditions are right for bacteria to flourish. The greatest risk is where water is present at temperatures between 20C and 45C. Stagnant water, in tanks for example, infrequently used outlets, showers and air conditioning units, debris in water systems, and thermostatic mixing valves should checked and corrective action taken where necessary.

The other side of the coin is assessing the vulnerability of people who may be at risk. Landlords and agents need to identify this in their risk assessments.

Tenants who are older than 45 years, smokers and heavy drinkers, those suffering chronic respiratory or kidney disease, and anyone with an impaired immune system is at greater risk of infection.

Safeguards may involve disinfecting water systems, cleaning shower heads, servicing air conditioning units, removing stagnant water pools and water tanks from systems, insulating pipework, and keeping water cisterns properly covered and free of debris.

Landlords and agents should issue tenants with notices advising them about these risks and how to combat them by running water off and cleaning shower heads regularly.

When landlords and agents advise tenants to raise water temperatures to reduce the risk of legionella, there’s obviously an increased risk of burns and scalding.

It all sound very onerous on landlords or agents but these risk assessments are usually straightforward and not as difficult as they may at first seem, though specialists sometimes perhaps have other arguments.

Most small systems only need a risk assessment and no further action required, but having the evidence available that the risk assessment has in fact been carried out is important.

The Health and Safety Executive have produced two guides following an Approved Code of Practice:

1 – Legionnaires’ disease: a brief guide for duty holders – http://www.hse.gov.uk/pubns/indg458.pdf

2 – Legionnaires’ disease: The control of legionella bacteria in water systems. http://www.hse.gov.uk/pubns/books/l8.htm

These documents spell out the legal requirements for landlords and managing agents. This is to help them reduce the risk of exposure to legionella bacteria from water systems in residential rental property.

Main areas of Risk which require your attention between tenancies:

1. Thoroughly run-off the water system (all taps) especially if the property has been vacant for some time
2. Check any water tanks for debris and make sure the tank has a good cover
3. Check for any dead-runs of water pipe, for a example a washing machine supply or garden hose supply pipe that is no longer in use. Remove the dead run or at least drain it off
4. Check water heaters. Drain them off and bring them up to working temperature
5. Thoroughly clean shower heads and run them off at full temperature
6. Service air conditioning systems regularly
7. Check outside pools and spas for stagnant water and sprays. Have these serviced regularly.

If you have any questions about any of the issues discussed here, post your question to the LandlordZONE® Forums – these are the busiest Rental Property Forums in the UK – you will have an answer in no time at all.

For a free risk assessment template see: https://www.landlordzone.co.uk/documents

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View Full Article: Legionella risk, one aspect of letting that many landlords never think about…