Council dodges a fine that would have cost a private landlord £76million

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A council that breached the Home Standard after it was found to have 3,000 fire doors overdue for replacement has not been fined by the sector’s regulator.

The English regulator’s latest judgements reveal that the London Borough of Redbridge Council also had 2,000 properties with no electrical installation condition report (EICR).

View Full Article: Council dodges a fine that would have cost a private landlord £76million

Scottish government pursues rent controls with a vengeance

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Holyrood MSPs yesterday passed through emergency legislation to freeze most rents until the end of March 2023. The legislation was on a fast track from earlier this week and passed its final stage yesterday.

After hearing that some residential rents had increased by up to 30 per cent in Scotland, a Holyrood committee headed by Tenants’ Rights Minister Patrick Harvie pressed forward with the move to bring in the freeze.

The Cost of Living (Protection of Tenants) (Scotland) Bill was backed by 88 votes to 29 earlier this week and it passed quickly along a fast-track route through the Scottish parliament’s scrutiny process to its conclusion yesterday.

The legislation gives Scottish ministers temporary powers to cap rents for both the private sector and social tenant sector, with the cap being set at zero, in other words, current rent levels.

The Bill says the rent cap will apply from 6 September until at least 31 March 2023. What’s more the legislation gives additional powers to extend or vary the cap for two more six-month periods and it is accompanied with an eviction ban when the reason for an eviction claim is as a result of financial hardship.

Unsustainable rental market!

Blaming the move on a “completely unsustainable” rental market during a “cost of living crisis”, Scotland’s MSPs voted for the move with an overwhelming majority but with Scottish Conservatives voiced their opposition.

The legislation is said to include some safeguards in exceptional circumstances for social as well as private sector landlords; providers of college and university halls plus purpose-built student accommodation will also be included in this, as well as the provisions on evictions.

Landlord representatives also voiced strong opposition to the move stating that it would force many of its landlord members to decide to leave the private rented sector.

Tenants’ Rights Minister Patrick Harvie of the Scottish Green Party has said that the bill is an “emergency response” by Holyrood to the “cost of living crisis”, but said it would be “balanced” giving some exceptions to the rent freeze where landlord face increased property costs, mortgage interest payments and some insurance costs.

The Scottish MSPs said as the emergency legislation was approved:

“Tenants will have increased protection from rent increases and evictions during the cost of living crisis under temporary legislation passed by the Scottish Parliament.

“The Cost of Living (Tenant Protection) Bill gives Ministers temporary power to cap rents for private and social tenants, as well as for student accommodation. The Bill also introduces a moratorium on evictions.

“This cap, which applies to in-tenancy rent increases, has initially been set at 0% from 6 September 2022 until at least 31 March 2023. Ministers have the power to vary the rent cap while it is in force. The measures can be extended over two further six-month periods.

“Enforcement of eviction actions resulting from the cost crisis are prevented over the same period except in a number of specified circumstances, and damages for unlawful evictions have been increased to a maximum of 36 months’ worth of rent.

“The temporary legislation balances the protections that are needed for tenants with some safeguards for those landlords who may also be impacted by the cost crisis.”

Tenants’ Rights Minister Patrick Harvie says:

“I am pleased that Parliament has passed this Bill to support tenants through the current cost of living crisis. People who rent their home are more likely to live in poverty or be on low incomes than other people, and many will be anxious about keeping up payments on their homes as their everyday expenses rise.

“With this Bill now set to become law, tenants in the social or private rented sector, or in student accommodation, will have stability in their homes and housing costs.

“I’m hugely grateful to MSPs for scrutinising and agreeing this legislation this week, ensuring these protections can be brought in with the urgency that this crisis demands.”

The Scottish Government is soon to launch a digital marketing campaign to raise awareness of the new legislation and what it means for tenants and landlords.

John Blackwood chief executive of the Scottish Association of Landlords has said that landlords’ interest rates on mortgages were going up and in future access to mortgages would become a major problem for residential landlords.

Mr Blackwood had told MSPs that he was worried about investor confidence in the private rented sector and that “Some existing landlords will quite frankly not be able to continue.” Timothy Douglas of Propertymark, representing Scottish letting agents, has argue that the plans will reduce supply and increase rents further.

There was also strong opposition from the social housing sector, with Aaron Hill of the Scottish Federation of Housing Associations (SFHA) voicing his concern about the rent freeze being extended beyond 31 March – it has said it would “be ineffective and prevent long-term solutions from being pursued.”

The rent control controversy

The idea of controlling rents by Government edict, often going against market forces, is a controversial political issue around the world.

Rents rising rapidly across the UK cities have brought the prospect of Government imposed rent control policies to the fore, with political debate focussed in Scotland, Wales and London. The Scottish National Party/Scottish Green Party coalition has now for the first time – outside of a pandemic – passed a nationwide system of rent controls, in an attempt to make housing more affordable.

Rents have been rising steadily throughout most of the UK’s biggest cities, making rental housing less affordably for millions of people.

However, landlords claim that this situation is partly due to anti-landlord legislation – increasing regulations and higher taxation – that is driving more and more landlords out.

As well as the “landlord flight” effect, rent controls are said to affect labour mobility, where tenants on artificially low rent are reluctant to moved around for work, and the general condition of the rental housing stock, when landlords are making insufficient money to carry out repairs and improvements, deteriorates over time.

View Full Article: Scottish government pursues rent controls with a vengeance

Who is responsible for paying for roof works?

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Hello, Can anyone help?

We are leaseholders in a 1980s block of about 20 flats in Chiswick. About 10 years ago the roof was replaced.

Our current surveyor claims that the roof now needs replacing at great expense.

View Full Article: Who is responsible for paying for roof works?

Propertymark gives evidence on Scottish rent freeze legislation

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Scotland faces a shortage of homes to rent with landlords selling up and more will follow with the introduction of rent controls, a committee was told.

Timothy Douglas, Propertymark’s head of policy and campaigns, was giving evidence to the Local Government

View Full Article: Propertymark gives evidence on Scottish rent freeze legislation

Ministers refuse to confirm whether King requested changes to rent freeze bill

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The Scottish government has rejected calls to confirm whether the King asked for changes to the rent freeze bill that could affect tenancies on his Highland estate.

MSPs wanted to change the Cost of Living (Tenant Protection) Scotland Bill that will freeze rents for private tenants in Scotland and ban most evictions for six months, reports The Guardian. Their amendment, which failed by 22 votes to 93, called on ministers to disclose whether the King used ‘crown consent’ and to discover the result of any alleged discussions with his lawyers.

Private tenants

King Charles has private tenants on his estate at Balmoral although the Queen did not object to similar Scottish government measures introduced to freeze rents during the Covid crisis in 2020.

The Guardian revealed last year that ministers in Edinburgh allowed the Queen to vet at least 67 bills that affected her personal property and public powers under the rule, which stipulates that the monarch’s consent is needed before they can be passed by the Scottish parliament.

Alex Cole-Hamilton (pictured), the Scottish Liberal Democrat leader, told MSPs the public interest case for greater transparency about the King’s role was clear.

As this was the first piece of Scottish legislation he had been asked to consent to, it was an ideal opportunity for the monarch and ministers to become more open, Cole-Hamilton added.

Buckingham Palace officials deny this mechanism is used to lobby for changes to protect the royal family’s interests. A Scottish government memo revealed, however, that it was “almost certain” draft laws had been secretly changed to secure the late Queen’s approval.

View Full Article: Ministers refuse to confirm whether King requested changes to rent freeze bill

S21 Notice to Quit?

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Hello, Can someone please clarify what is going to happen to the S21?

I understand that it is going to be abolished but what does this mean for landlords?

Does this mean that if the tenant always pays their rent and is no problem that we would never be able to claim our property back if we just wanted to sell it?

View Full Article: S21 Notice to Quit?

EICR requires full re-wire?

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Hello, Our flat in London has failed its EICR with code 2s and 3s. The electrician says it needs a full re-wire.

That’s ok (except that it will cost) as the flat’s wiring is maybe 40 yrs old.

View Full Article: EICR requires full re-wire?

TENANT fined £31,300 for sub-let operation within illegal HMO

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A tenant has been fined £31,300 for sub-letting an unlicensed HMO in Leamington Spa that posed a serious health and safety risk.

Grzegorz Surminski rented the six-bedroom property through Golden Key Letting Agents and was sub-letting to eight tenants when the property was inspected by Warwick Council’s housing team, after one of them made a complaint.

They discovered the house – in St Brides Close, Sydenham – had no working smoke detectors, fire doors or fire safety equipment. There were also numerous issues including unsafe electrics, no working shower and broken floor tiles in the bathroom.

One tenant had been given a mouldy mattress to sleep on and there were large piles of rubbish in the back garden as well as insufficient wheelie bins.

Failing

Surminski was found guilty at Coventry Magistrates Court and fined £10,000 for failing to apply for a HMO licence, £10,000 for failing to comply with an Improvement Notice relating to fire safety and £10,000 for failing to comply with the HMO Management Regulations.

He also received a £1,000 fine for failure to provide details about the ownership and occupation of the property along with a £150 victim surcharge and £150 costs.

Councillor Jan Matecki (pictured), the portfolio holder for housing services, says Surminski’s actions placed the tenants’ health and safety at serious risk.

He adds: “It is reassuring that the courts recognise the gravity of these offences, and it is hoped that the level of fine handed out will be a strong deterrent to others who may be tempted to let a property in this way.”

View Full Article: TENANT fined £31,300 for sub-let operation within illegal HMO

£400 credit off the energy bill?

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Dear all, Our utility is supplied by one main meter divided into 6 flats. Tenants are asking for the government’s £400 credit off the energy bill.

How can a landlord with one utility meter give a £400 energy rebate to six tenants with an all-inclusive tenancy contract?

View Full Article: £400 credit off the energy bill?

Guaranteed rent mismanagement?

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Hello, My sister gave a property to an agent via guaranteed rent. They are up to date with the payments.

After viewing the property, I could see that it was in a state of disrepair. There was a leak in the ceiling and the agent claimed to have fixed and sent a bill to say that they had.

View Full Article: Guaranteed rent mismanagement?