Tenant refuses to leave until council re-house her?

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Hi, I have an issue with a tenant who is refusing to leave after I served a section 21 notice. I am forced to sell as my mortgage has soared over £3,000 a month and rental income is only £1,600!

View Full Article: Tenant refuses to leave until council re-house her?

NE Landlords slam councils’ blanket licencing plan as ‘waste of time’

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Landlords in the North East have complained that a ‘rubber stamped’ selective licencing scheme is a “pure waste of time” and that they are “fed up being taxed in this way”.

The comments concern Middlesborough council’s plans to extend its licencing scheme in the central area of Newport, which have now been voted through by politicians despite a consultation revealing that 15 out of 19 private landlords who were interviewed for or responded to a ten-week consultation opposed the scheme.

During a meeting of the council’s Executive Committee, the scheme’s £836 cost for a five-year licence was voted through, although one independent councillor, Tony Grainge, abstained from the vote because he did not think the fee was fair, reports Teeside News.

The meeting was told that the new scheme will improve housing conditions and tackle problems associated with anti-social behaviour, although another councillor pointed out that the extra costs of the scheme would be ‘charged back’ to the tenants via higher rents.

Targeted approach

Others argued during the meeting that a more targeted approach to rogue or criminal landlords would be better than a ‘blanket approach’ via an extended selective licencing scheme.

This will compel landlords to take action to deal with anti-social behaviour and it will incorporate housing inspections and enforcement action.

Middlesborough council says a similar scheme in Ormsby had seen a substantial reduction in anti-social behaviour since it was introduced in 2016.

The NRLA’s chief executive Ben Beadle has previously criticised selective schemes, saying instead councils should, “’rather than penalising good landlords with a blanket policy…use the range of data already available to them to find and root out the minority of landlords who fail  to provide safe housing”.

Picture credit: YouTube.

Read a guide to landlord licencing.

View Full Article: NE Landlords slam councils’ blanket licencing plan as ‘waste of time’

Opportunities for UK Landlords to take tax efficient ‘time out’

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Did you know, there are currently 15 Countries where UK landlords can get a special visa to live for a year or more, pay no tax in those Countries, and potentially benefit from significantly lower taxation in the UK?

The above could be very appealing

View Full Article: Opportunities for UK Landlords to take tax efficient ‘time out’

VOTE: Scots rent rises to be capped at 3% until October, MSPs agree

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Scottish MSPs have voted through a rent cap and extension of the eviction ban until 30^th September.

The rent cap for private sector tenancies will increase to 3% from 1st April under the amendment to the Cost of Living (Tenant Protection) (Scotland) Act while the Scottish government has the option to extend the eviction ban for another six months from September.

The Act means that private landlords can also apply for a rent increase of up to 6% to help cover certain increases in costs in defined and limited circumstances. The rent cap for student accommodation is to be suspended, recognising its limited impact on annual rents set on the basis of an academic year.

Specific costs

Landlords can apply to Rent Service Scotland to increase rent to partially cover specific costs including increased mortgage interest payments on the property they are letting, an increase in landlords’ insurance or increases in service charges paid as part of a tenancy, subject to an overall limit – currently set at 3% of total rent. From 1st April the limit will be increased to 6%. 

Enforcement of evictions will continue to be paused except in a number of specified circumstances while increased damages for unlawful evictions of up to 36 months’ worth of rent will still apply.

Tenants’ Rights Minister Patrick Harvie says: “Our emergency legislation has given tenants across the rented sector additional protection as we continue to live through these challenging and uncertain economic times.

“We will continue to keep these measures under review, ensuring they remain necessary and proportionate to the challenges at hand.”

View Full Article: VOTE: Scots rent rises to be capped at 3% until October, MSPs agree

Can landlords afford a rent freeze in the UK?

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I can’t say that I am surprised at the news that Labour Mayors, trade unions and rent activists are calling for a rent freeze – not on the grounds of saving tenants a few quid, but because landlords can afford it.

View Full Article: Can landlords afford a rent freeze in the UK?

FIRST rent repayment order against landlord issued following landmark case

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A landlord who tried to claim that he was the superior landlord of an unlicensed HMO has failed in his bid to avoid paying a Rent Repayment Order.

In the first RRO case since the landmark Supreme Court judgement which ruled that these can only be made against an immediate landlord, Sabour Mansour was found to be responsible for the property in Pott Street, Tower Hamlets and his two tenants were awarded more than £6,000.

A First Tier Property Tribunal heard they had paid their rent to Mansour’s agent KJSZ Ltd; he said he lived in the property and that the tenants were only lodgers.

He also argued that the tenancy agreements were not with him but with KJSZ and that he didn’t receive fees or rent. Mansour’s argument was – following the decision in the Rakusen case – that the tribunal had no power to make an order against him.

However, the tribunal found he had not provided any evidence to show that he had created any leasehold interest in the property in favour of KJSZ, and there was no evidence that it had any proprietary interest in the property.

Immediate landlord

It said:“Regardless of who received the rent, the applicants’ immediate landlord was clearly the respondent.”

It added that Mansour must have entered into an agreement with KJSZ for the company to receive the rent on his behalf.

“There was no evidence that KJSZ was itself an owner or lessee of the property. It followed, therefore, that the respondent was a person managing the property by virtue of section 263(3)(b) of the 2004 Act,” it added.

“He (albeit wrongly) believed that the fact that rent was paid to KJSZ Ltd afforded him a defence to the proceedings.”

Read the First Tier Property Tribunal report in full.

View Full Article: FIRST rent repayment order against landlord issued following landmark case

Waiting for the ‘right’ moment to invest?

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Fact: In the last 50 years, property prices have only fallen during four of those years.

So, if you were waiting to time your run to perfection to invest in property with the exact moment prices hit rock bottom

View Full Article: Waiting for the ‘right’ moment to invest?

Landlords LEFT OUT of new ‘forbearance’ guidance for mortgage holders

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Landlords have been left out of measures announced today designed to support mortgage holders during the cost of living crisis.

The guidance, which has been issued by the Financial Conduct Authority (FCA) updating borrowers’ responsibilities to their existing mortgage holders, will only cover ‘regulated’ products.

This means that buy-to-let mortgages, which are deemed to be ‘unregulated products in the UK’ will not be covered.

The FCA says it recognises that many mortgage borrowers face higher mortgage payments alongside the rising cost of living.

In summary, the FCA is calling on borrowers to show ‘forbearance’ towards home owners who may be in trouble financially in the coming months.

“Borrowers may approach lenders needing or wanting to reduce, or smooth increases in, their monthly payments,” it’s advice says.

The omission of landlord mortgages from this guidance is in stark contrast to the depths of Covid during May 2020 when the FCA launched a ’mortgage holiday’ scheme that included both landlords and home owners.

Back then LandlordZONE had to confirm with the FCA and the Government that the scheme covered landlords, but this time it has been very clear on its stance on buy-to-let mortgages.

It statement today reveals that a trade organisation, believed to be the NRLA, and a property firm quizzed the FCA on this.

They were told that: “Our rules…only apply to regulated mortgages. “Where an authorised person carries on activity in relation to an unregulated agreement to provide credit which is secured on land, its conduct in relation to compliance with our Principles, including the fair treatment of customers, could be relevant to our assessment of whether it is satisfying the Threshold Conditions.”

Read the guidance in full.

View Full Article: Landlords LEFT OUT of new ‘forbearance’ guidance for mortgage holders

Eviction moratorium ‘sham’ as eviction cases soar in Scotland

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Scotland’s moratorium on evictions has been branded as a ‘sham’ by critics after revelations that the number of tenants facing eviction is more than double the usual number.

This week, the Scottish Government announced that a rent cap and a ban on evictions would remain until September.

View Full Article: Eviction moratorium ‘sham’ as eviction cases soar in Scotland

Landlords criticised for not completing Selective Licensing forms

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A council has criticised landlords in its area for not completing its selective licensing forms properly and says that out of 700 applications they have received, three quarters are missing vital information.

That then leads to a delay for the council in granting the licence because the landlord has to be chased to supply the missing details.

View Full Article: Landlords criticised for not completing Selective Licensing forms