£8m property investment scam revealed after firm goes into administration

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Investors lost more than £8 million in a care home property scheme after being duped by plans to build and convert 80 apartments near Bishop Auckland in County Durham.

CHF 9 Limited had traded as a vehicle to secure investment to build apartments and studios in a Grade II listed building and surrounding land, but it went into administration in December 2019.

The company’s insolvency triggered an investigation which discovered that CHF 9 bought the building and land for £850,000 but had been turned down for planning permission. The local council suggested 10-15 studios would be more appropriate.

Director Sean Murray (pictured, inset) continued to seek investment for the project, but further enquiries revealed that none of this money was paid into CHF 9’s bank account. Instead, more than £3.3 million was paid to a connected company and a further £2.8 million was paid to the company’s solicitors before £1 million was paid out of CHF 9’s accounts.

Murray has now been banned for 10 years after he did not dispute that he entered into 51 contracts with investors for care studios without planning permission, using the receipts to help fund a lavish lifestyle including travel by private charter plan and multiple luxury cars, the Evening Standard recently revealed.

Robert Clarke, chief investigator for the Insolvency Service, says it found that most of the investors wouldn’t have invested if they had known that CHF 9 didn’t have planning permission to build the care apartments.

“Sean Murray has rightfully been removed from the corporate arena for a significant amount of time,” he adds.

“This should serve as a stark warning for potential investors to do your due diligence, as well as making clear to directors involved in investment schemes that we have the powers to disqualify you from running limited companies.”

Read about other recent property investment scams.

View Full Article: £8m property investment scam revealed after firm goes into administration

Jersey landlords battle new plan for ‘harmful’ licensing scheme

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Jersey’s landlords are battling to convince the island’s lawmakers that new plans for a widespread licensing scheme will do more harm than good.

After helping to throw out previous proposals, the Jersey Landlords Association believes that instead, a registration scheme, along with a programme of tenant empowerment and ad hoc environmental health inspections, would be equally able to tackle poor-quality housing.

It says such a scheme would also have the benefit of providing more data about the type, size and quality of rented housing in Jersey. This could even be extended to all housing, giving the government the data it needs to make targeted policies.

“All responsible landlords are already or are working towards offering rented dwellings at or above the minimum standards,” says a group spokesman.

“Previous scrutiny panels and the previous States Assembly have agreed with many of our objections to licensing instead of registration.”

Previous attempts

However, States Deputy Richard Renouf (pictured) is confident that he has addressed the reasons why previous attempts to introduce licensing have failed.

He says: “I have three options before me: do nothing, introduce a rental property registration scheme, or introduce licensing. The advantage of the latter is that it allows me to remove a licence without the need to prosecute.

“It is a sensitive tool to deal with potential breaches of safety, while prosecution through the courts is, in this case, more of a blunt tool.”

Renouf adds that licensing also allows landlords to continue to rent out properties while they make the necessary improvements. Suggested fees for the new scheme would only be about £30 a year.

The most recent attempt to introduce licensing was defeated by a single vote in the States Assembly in July 2021.

View Full Article: Jersey landlords battle new plan for ‘harmful’ licensing scheme

Rogue tenants databases?

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Hello, I read a lot about Rogue Landlords Databases but nothing about Rogue Tenants Databases. Does any one know of any?

It does seem that tenants from hell are at liberty to trash properties, run up huge arrears

The post Rogue tenants databases? appeared first on Property118.

View Full Article: Rogue tenants databases?

Free loft insulation schemes?

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Hello, I have excellent long term tenants in Wales.

They have two young children and like most people in their position finances are a bit tight at the moment.

I’ve kept the rent well under market value and fitted a new boiler a couple of years ago.

The post Free loft insulation schemes? appeared first on Property118.

View Full Article: Free loft insulation schemes?

Three councils given £1.2 million to crack down on slum PRS properties

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Three Derbyshire councils are sharing a £1.21 million government hand-out to help them crack down on enforcement in poor quality private rental homes.

The Department for Levelling Up, Housing & Communities funding will be split between Derbyshire Dales District Council and neighbouring Amber Valley Borough Council and Erewash Borough Council over the next two years. 

Each authority aims to inspect about 500 properties a year in order to make a significant impact on the PRS, says Tim Braund, Derbyshire Dales’ director of regulatory services.

The extra cash if part of a £14 million fund launched by DLUHC secretary of state Michael Gove last month as part of a plan for seven areas with high numbers of poor privately rented homes to crack down on rogue landlords and test new approaches to driving up standards.

“The funding will pay mainly for project management, staffing and associated costs, with Derbyshire Dales – which has a relatively high proportion of older properties in the private rented sector – being the lead authority,” adds Braund.

Enforcement

Amber Valley’s head of housing and growth, David Arkle (pictured), adds: “Working in partnership, we want to collectively raise the profile of successful enforcement, changing expectations and driving improvement in pilot areas and beyond, while finding the best ways to develop an evidence base of effective approaches to enforcement, and share best practice.”

The joint study will focus on building an understanding of what is needed to bring private rented properties up to the proposed Decent Homes Standard, and how landlords respond to enforcement.

Each council will kick off the project by gathering data around issues such as identifying geographical areas with the highest proportions and numbers of private rented properties and those areas that have the most non-decent homes. 

View Full Article: Three councils given £1.2 million to crack down on slum PRS properties

Government gives solicitors £120,000 to help clear evictions backlog in courts

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New government funding to explore how technology can help dispute resolution should reduce the backlog of court cases, including possession hearings.

The Solicitors Regulation Authority (SRA) has been awarded £119,691 from the Department for Business, Energy & Industrial Strategy as part of the Regulators’ Pioneer Fund, to launch a project working with Access to Justice Foundation and the Law Society.

It will study ways to increase the use of technology-enabled dispute resolution to help resolve legal issues across England and Wales, without the need to go to court. The project launches in September 2023.

SRA chief executive Paul Philip says it will look at the potential barriers and benefits to using digital and online platforms. He adds “We welcome this important opportunity to work with our partners to support people in resolving their legal issues without having to use the courts.

Court system

“This has the potential to make a real difference for individual consumers, saving them time and money, as well as relieving pressure on the court system, which benefits the wider community.”

The Ministry of Justice recently noted that about 68% of civil court users would prefer to avoid court unless as a last resort.

Last month, the Law Society warned that spending cuts in the justice system could leave it facing collapse, hitting possession hearings and impacting homelessness help. It cited the civil division – encompassing eviction proceedings – as a particular concern.

In July, the government vowed to speed up the evictions process for landlords by improving admin around bailiff enforcement activity and bringing in new technology as part of the courts and tribunals service reform programme.

View Full Article: Government gives solicitors £120,000 to help clear evictions backlog in courts

Helping to provide a safe and secure home

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Camden Council’s landlord appeal is helping to provide homes for people experiencing homelessness.

Landlords in Camden and neighbouring boroughs are particularly being urged to come forward if they have studio flats or one or two bed properties on the ground or first floor, or a property with a lift.

Landlords will be offered cash incentives and extensive support for them and their tenants in exchange for letting to residents who we are helping to avoid homelessness or who are ready to move on from homelessness services and live independently. 

Private landlord, Phil Jones has a property close to Great Ormond Street. It was the perfect location for a young mother and her two-year-old son who has a cardiac condition and needs major operations over the next two years.

“My tenant was previously homeless and then lived in very poor housing. Her evident joy at being told she could move in was quite something,” said Phil.

Knowing that our former home is now housing someone who really needs it, is a good feeling, added Phil. Prior to the pandemic, Phil rented to private tenants via a letting agency which also managed the tenancy.

“After my tenants broke their agreement, I saw Camden’s advert for landlords and thought it would be a good opportunity to start afresh. Working with Camden Lettings has been a reassuring experience. As well as being very responsive, everyone has been friendly and supportive”.

If you’re a private landlord and would like to join our fight against homelessness, please get in touch. Letting your property with us will help create an opportunity for someone to leave homelessness behind for good.

In exchange, the Council is offering landlords a cash incentive of up to £2,000 to let a one bed property and up to £4,500 for a two-bed property as well as an extensive package of support that includes: 

• Support from our Move on Team and Floating Support Service – Dedicated services that are ready to assist residents as they move on from homelessness. The teams provide tenants with guidance on finances, credit checks, utilities and managing housing benefit and other claims.
• Pre-tenancy training from the Piece-by-Piece Programme or Good Tenant Session – these services help residents to prepare for their tenancy by ensuring that they understand, and know how to meet, their tenancy and financial responsibilities.
• Advisers that will remain available throughout the lifetime of the tenancy. 

What we need:

Studio flats or one or two bed properties including ground floor or a property in a block with access to a lift at Local Housing Allowance (LHA) rates.

What we offer:

• A generous cash incentive
• Rent guarantee insurance
• Extensive support and advice to landlords and tenants throughout the life of the tenancy
• Reliable, long-term tenants for at least 12 months
• A free London Landlord Accreditation Scheme (LLAS) voucher worth £100

Interested in letting your property?

Get in touch with our Camden Lettings team on 020 7974 4158 or at camdenlettings@camden.gov.uk

View Full Article: Helping to provide a safe and secure home

Landlords – Should we sell up or shut up?

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Most landlords will have spent a lot of time and money on housing tenants, whether it’s in just one property or a massive portfolio. But, has the time come to give all of this up?

I don’t know whether we should sell up or shut up.

The post Landlords – Should we sell up or shut up? appeared first on Property118.

View Full Article: Landlords – Should we sell up or shut up?

John Lewis signs £500m build-to-rent deal with City investment giant

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John Lewis is on its way to becoming a major residential landlord after signing a £500m joint venture deal with global investment firm abrdn.

It will use its property assets to build 1,000 build-to-rent homes (BTR) in Bromley, West Ealing and Reading, marking the start of its 10-year plan to create a 10,000-home portfolio. The deal will see John Lewis develop and manage the new sites which will include affordable housing as it looks to create a stable income following recent financial losses. 

In Bromley and West Ealing, subject to planning permission, Waitrose shops will be redeveloped to provide new homes and improved stores, while in Reading, a vacant John Lewis warehouse will be redeveloped. The sites were chosen due to their central location and transport links. 

Savills recently predicted that the number of BTR homes will increase five-fold over the next decade to 380,000 in the UK.

Key role

John Lewis believes the BTR sector has a key role to play in addressing the shortfall in rental homes. Nina Bhatia (pictured), executive director for strategy and commercial development, says residents can expect homes furnished by the retailer, with first-rate service and facilities.

She adds: “The move underlines our commitment to build on the strength of our brands to diversify beyond retail into areas where trust really matters.”

Neil Slater (pictured), head of real assets at abrdn – one of Europe’s largest residential investment managers – says it wants to address the critical lack of quality rental accommodation in the UK.

“The ambitions and responsible ethos of our brands both strongly align, and our partnership should offer investors long-term returns and give residents confidence in a top-quality living experience.”

John Lewis aims to submit the first planning applications and launch a consultation for the Reading site next year. 

Read more about John Lewis.
 

View Full Article: John Lewis signs £500m build-to-rent deal with City investment giant

Rip-off council tax bills for HMO tenants set to end

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A bid by the Valuation Office Agency (VOA) to re-band individual HMO rooms for council tax purposes looks set to end after an amendment to a Bill by Conservative MP, Caroline Dinenage.

She was compelled to act over growing instances of councils handing individual tenants living in an HMO a council tax bill.

The post Rip-off council tax bills for HMO tenants set to end appeared first on Property118.

View Full Article: Rip-off council tax bills for HMO tenants set to end