THIS is why student landlords are worried about Government’s periodic tenancy plans

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Student landlords are becoming increasingly worried about the Government’s plans to bring in periodic tenancies, as outlined within its renting reform White Paper.

LandlordZONE has spoken to three leading landlords who help run the Northampton Student Landlord Network, which has over 100 members.

It is urging student landlords from all over the country (the proposals will affect England and Wales only) to send in their views to the Government’s consultation on the proposed reforms before it closes on 19^th August.

Jacqueline Abbott (pictured), Wes Boswell and Richard Lee, who are all student landlords themselves, say Ministers need to wake up to the damage that their tenancy reform proposals will have on the sector, and in particular students, who will pay higher rents as landlords exit the sector.

This has already happened in Scotland where similar rules were introduced recently.

Abbott says her members are puzzled over proposals to treat purpose built student accommodation (PBSA) differently to traditional student HMOs or shared flats but it’s the changes to tenancies that are causing the greatest consternation.

“It feels to us as if the Government hasn’t realised that the student rental market is unique, and in many ways very different to traditional rentals, so the tenancy changes are going to impact landlords and tenants alike,” she says.

Problems

“The ‘one fits all’ approach of the White Paper needs nuancing if problems are going to be avoided.”

Lee agrees, saying the proposed changes to periodic tenancies are ‘very concerning’. “At the moment we sign agreements with our students that last between nine and eleven months and we’re both tied into that,” he says.

“But under the proposals, students will be able to give two months’ notice at any time.

So as a landlord you will only have two months’ certainty in the contract which, because of the dynamics of the market, means finding a replacement will be very difficult and, because of the expense of additional referencing and guarantor referencing, will make it less attractive.”

Tenants may also then give notice prior to the holidays, or it may persuade more tenants to drop out of their courses because there will be no financial consequences. “This will put more pressure on their housemates who will then have to fill the room or pay more rent,” says Abbott.

Need certainty

“We need contractual certainty so we can plan ahead with our property marketing and tenancy planning, while tenants know they have somewhere to live each year.” The Government’s proposals, the trio say, will put this business model in doubt.

“Recent UCAS figures said it expects an extra 100,000 students every year up until 2025 so it’s a crazy time to be tinkering with the student rental market model,” adds Lee. “Increases in PBSA construction will come nowhere near closing that gap.”

What’s the solution?

The Northampton Student Landlord Network says student accommodation should be identified using the students’ own course registration documents in tandem with local HMO and property licensing schemes so that they can be exempted from the periodic tenancy proposals, as PBSA sector is already going to be. "We already have to supply this information to get our Council Tax exemptions for the properties, so it's not a huge leap to use the same info again for this purpose."

View Full Article: THIS is why student landlords are worried about Government’s periodic tenancy plans

Media Support for Landlords?

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Ben Beadle of the NRLA has managed to have a much-needed article in support of the PRS published in the Telegraph on Monday 8th August.

https://www.telegraph.co.uk/property/buy-to-let/next-prime-minister-needs-undo-damage-unleashed-landlords/
I don`t know how he managed it but with any luck

View Full Article: Media Support for Landlords?

LEGAL LATEST: Can the eviction of a disabled tenant ever be fair?

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A severely disabled tenant and his family have barricaded themselves into their home in a bid to prevent a controversial eviction.

Quadriplegic Harvey Cowe, 62, and his wife Sheree, 55, have lived at the house in Brittany Road, Hove, for 25 years after Brighton & Hove Council spent £200,000 on adaptations to accommodate his condition.

Their landlords, Anna and Dean Lashmar, now need to sell the £800,000 property to cover the cost of a £1.4m inheritance tax bill, reports The Argus.

In February, they gave the couple three months to raise the cash to buy it, so two family members sold their homes to help raise £500,000 and the council offered to match the amount with a mortgage.

However, by the time the Cowes had put together a £925,000 offer for the property, the deadline had passed by a week and the landlords had already started eviction proceedings.

Bailiff warrant

Now a court has granted possession and the couple report that bailiffs started drilling through the locks within minutes after the hearing.

Sheree Cowe (main picture) says Anna and Dean Lashmar have refused to negotiate further and stopped communicating. She adds: “The bailiffs said someone would return with the police and, regardless of my husband being bed-bound, they would arrest him, handcuff him and put him in the back of a police van.”

Speaking to The Argus in February, Dean Lashmar said he had no choice but to sell the home to cover an inheritance tax bill. “If they don’t leave very soon I will be going to prison because we owe a hell of a lot of money to my dad’s tax. We have been kind enough to rent to them for a very long time and they have had it very well. Unfortunately, we are not in a position any more to be able to support them, so we have to move on.”

The council says it is urgently trying to find alternative accommodation.

Read more: Legal advice for landlords guide.

View Full Article: LEGAL LATEST: Can the eviction of a disabled tenant ever be fair?

How do I identifying a freehold owner?

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Hello everyone, How do I identify the freehold owner of a 999-year leasehold, 2 bed terraced property?

I would like to buy the freehold.

Also, is it possible to get a ground rent of £1.60 per year to be removed from a leasehold property if it is not being collected?

View Full Article: How do I identifying a freehold owner?

Are student HMO rentals in decline?

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Hello everyone, My 4 bed Victorian terrace in Leicester, a big university city, has been rented to students for 7 years through an agency.

Last year was a struggle to rent and there have been no viewings for the next academic year starting in September.

View Full Article: Are student HMO rentals in decline?

Fears over winter rent arrears crisis as energy costs soar

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The soaring cost of energy is causing hardship for many families, and is only set to get worse. Landlords need to keep communicating with tenants – and ensure their rents are protected, says Richard Reed

View Full Article: Fears over winter rent arrears crisis as energy costs soar

The Property Investment Strategies To Focus On In A Recession

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The property investment strategies to focus on in a recession presented by Ranjan Bhattacharya at the Baker Street Property Meet.

We’re in for the worst recession the UK has seen, so don’t waste your time and money on property strategies that won’t work in the near future.

View Full Article: The Property Investment Strategies To Focus On In A Recession

HM Treasury’s Debt Repayment Plans a ‘threat to landlords’ say experts

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Landlords face a new challenge next year when the Government introduces its Statutory Debt Repayment Plan scheme, experts have warned.

During Covid HM Treasury introduces a ‘breathing space’ scheme to give those in serious debt up to 60 days before legal action began, including rent arrears.

Now, following a consultation that ended last week, HM Treasury expects to bring in Statutory Debt Repayment Plans.

These would enable a certified debt advisor to develop a repayment plan that would provide reassurances that debts would be paid, in return for legal protections for the debtor.

But the contentious issue for landlords will be whether the plans will include rent arrears.

While ‘breathing space’ arrangements automatically included qualifying debt including rent arrears, debtors can choose to exclude or include them within their SDRP.

Tenancy renewals

This is because, HM Treasury says, “the likely longer period over which rent arrears will be paid in the plan could lead to a landlord not renewing an individual’s tenancy”.

Nevertheless, trade association Propertymark is worried rent arrears will be rolled into SDRPs, counselling HM Treasury that they should only be included as a ‘last resort’.

Proprtymark is worried that landlords could fall into mortgage arrears if they were unable to take possession proceedings in respect of arrears included in a plan.

“The development of a SDRP should be made in conversation with the tenant, agent, landlord and debt advisor,” it says.

“This would ensure the frequency and amount of payment is in the best interests of all parties involved.”

Timothy Douglas (pictured), its Head of Policy and Campaigns, adds: “During these difficult times, it is essential that we find ways to support tenants who temporarily cannot afford to pay off debts including rent while ensuring the solutions cannot be abused by those who have no intention of paying.”

Read the consultation in full.

View Full Article: HM Treasury’s Debt Repayment Plans a ‘threat to landlords’ say experts

I’m selling my rental property – but tenants are struggling to find a home

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Hello everyone, We’ve had a great tenant for over a decade – single mum with 2 boys.

She has an IVA (Individual Voluntary Arrangement) but has never missed a rent payment and is no trouble at all.

We are having to sell this property in Sussex and she simply cannot find a new rental.

View Full Article: I’m selling my rental property – but tenants are struggling to find a home

Acorn campaign group reveals 44% of local HMOs not licensed by council

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Renters’ union Acorn has inadvertently highlighted the unfairness of landlords paying for licence fees when poor enforcement means many rogue landlords simply refuse to do so, happily dodging the high fees and paperwork.

Its Cambridge outpost says the problem of unlicenced HMOs leaves renters vulnerable and is now campaigning for the authority to take action on the issue of unlicensed HMOs, which it has discovered was well known within the council.

Acorn has started a petition and is demanding that the council commits to having at least two full-time staff to work on the issue of HMOs, publishes a timeline to achieve full licensing, and works to get all HMOs in Cambridge licensed.

A spokesman told CambridgeshireLive: “When we found out that the council was aware that there were more than 600 unlicensed HMOs in Cambridge city, we wondered why that number was so high.

“We believe that everyone deserves a safe home to live in and it’s local authorities’ responsibility to ensure that everyone’s got that safe home.”

Inspections

The council says the total number of licensed HMOs in the city now stands at 808. A spokesman explains: “We estimate there may be a further 640 licensable properties and will continue our work, including proactive inspection, to confirm that those properties are safe and suitable and whether they need to be licensed as an HMO.”

The Mandatory scheme began in 2018.

He adds: “We eagerly await the introduction of the government’s proposed rental property portal, which will enable us to more easily identify licensable HMOs and crackdown further on criminal landlords.”

Cambridge’s figure does not seem particularly high when compared to other areas of the UK; Birmingham Council recently revealed that the city could have 8,000 HMOs without a licence.

Read more about Cambridge HMOs.

View Full Article: Acorn campaign group reveals 44% of local HMOs not licensed by council