London borough scales back selective licensing after success so will others follow?

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Hammersmith and Fulham Council has scaled back its renewed selective licensing scheme from 128 to just 24 streets after declaring that anti-social behaviour has improved in parts of the borough’s private rented sector.

A council report says it believed that focusing on specific streets was a more targeted approach than applying the scheme to the whole borough or to whole wards.

It added that a recent consultation and its research had both shown that a number of streets in the previous scheme no longer met the threshold of need for inclusion so would not be included, but would now include eight new streets which did meet the threshold.

It added that anti-social behaviour including noise nuisance, poor waste management and public health nuisance in the 24 selected streets was above average.

Councillor Lisa Homan (pictured), cabinet member for housing, says: “Things have improved in the last five years but when we set out with our selective licensing scheme we selected 20% of our properties where we thought the biggest problems were – but 16 of those streets were in the original scheme and eight new ones are coming in, following hard work with anti-social behaviour.

“Officers have walked those streets to make sure we get the right 20% in the scheme.”

Councillors approved plans to renew its borough-wide additional licensing scheme that will include all shared accommodation and bedsit-HMOs occupied by three or more people comprising two or more households, outside the scope of its mandatory HMO licensing. Both current schemes end on 4th June.

According to Geospatial technology firm Kamma, Hammersmith and Fulham is the London borough with the highest average fines of £19,800. Watch the cabinet meeting in full.

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Possession claims could double this year

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I believe Possession claims will double this year, and if anyone needs assistance with evicting a tenant or debt recovery you can email me personally on paul@landlordaction.co.uk

We ended 2021 after twenty-one months since the first Covid lockdown with the new variant

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New Switch and Further advance product for incorporated and individual landlords

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Paragon has launched a range of switch and further advance products for portfolio and non-portfolio landlords for the New Year.

Across both portfolio and non-portfolio ranges, rates start at 2.95% for landlords who are looking to switch to a new product

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37sqm Flats Too Small?

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The Guardian reports that 37sqm flats are too small for property development, but this is simply not the case, exploring this with me is Andrew Roberts in this episode of Property Breaking News.

Please click on the video below:

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Deposit recovery after vexatious bullying claim and no address?

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A tenant of mine left my flat with about £7,000 rent arrears: £6,300 during the tenancy and another £750 or so after refusing to vacate, and only leaving after a possession order hearing date had been given.

I have a £5,000 CCJ

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Huge private landlord to sell 40,000 homes to City for £9 billion

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One of the largest providers of privately rented housing in the UK – Annington – is reportedly in talks over its possible sale.

The company rents out more than 40,000 family homes to critical workers, with 95% of its portfolio leased to the Ministry of Defence on a 200-year contract.

It has also helped more than 17,000 people buy their own home, with many of them first-time buyers, service personnel and key workers.

Owner, Terra Firma Capital Partners, is talking to investment banks, according to Sky News, with a deal set to value Annington at more than £9bn, including debts of more than £4bn.

An auction of the company was expected to take place in the next couple of years, but has been accelerated by a settlement reached between Annington and the MoD just before Christmas.

In a stock exchange announcement, it said that a deal on the rent payable by the MoD on the Married Quarters Estate meant a further arbitration process would not be needed.

Unusual rent deal

Unusually, each rent review seems to lead to lower rents; the MoD would, “continue to pay rent at the current prevailing downward adjustment of 58% from open market rental levels until the dates on which the new rents become payable, which fall between 2021 and 2024,” said the firm.

“Upon these dates the MoD will pay rent with a downward adjustment of 49.6% from open market rental levels until the next site review.”

Annington added that the next review due in 15 years’ time would stick to the same rent payment formula, meaning that the next full review would not happen until 2051.

Terra Firma acquired Annington in 2012 from Japanese bank Nomura for a reported £3.2bn.

The largest landlord in the UK is reckoned to be Southwark Council.

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What Is Permitted Development?

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Today we’re going to be talking about Permitted Development on Sky TV’s Property Matters.

In 2013-2015, the government introduced Permitted Development Rights (PDR), but what exactly are they? Watch to find out.

Whether you are a new or seasoned developer

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Paul Shamplina: ‘Possession cases will rise in 2022’

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So, we ended 2021 after twenty-one months since the first Covid lockdown with the new variant, Omicron, spreading fast, and with Wales, Scotland and Northern Ireland putting in stricter measures and speculation that England may follow with an announcement early in the New Year.

The eviction suspension was put in place from April to October 2020 following the introduction of the Coronavirus Act 2020, as the Government understandably did not want evictions happening during a national pandemic, especially with no vaccine rolled out.

The emergency measures, which included extended notice periods and the stay on evictions, lasted until 31 May 2021, with evictions only permitted to proceed upon the leave of the court, where exemptions were made on priority cases.

Notices finally returned to pre-pandemic timescales – two months for Section 21 and two weeks for Section 8 – from 1 October 2021.

Figures from the HM Courts and Tribunals Service for England and Wales showed that in 2020 there were only 9,000 Accelerated (Section 21) claims issued, 12,000 Private Landlord Claims issued and 18,000 Social Possession claims issued – 39,000 claims issued in total. Compare this to a total of 110,000 claims issued in the previous year of 2019.

The most landlord and tenant possession claims ever issued was 194,000 in 2002.

Court changes

We saw lots of changes to court procedures which were put in place during the pandemic – such as Reactivation Notices having to be filed at court, to re-instate claims to carry on in the court system, along with Review Hearings, which meant that before the main substantive hearings were heard, parties had to receive a telephone call from the Judge to hear the status of the case and whether it was deemed a priority. 

Many a time at Landlord Action we failed to receive a call from the court on the Review Hearing and it was reported that 75% of the time Review Hearings were not heard. Review hearings have now been scrapped.

We also saw a big increase in improved communication between landlords and tenants, with landlords trying to avoid the court at all costs, mediation coming into effect and payment plans being negotiated.  Cleary in the future mediation will form part of the possession procedure.

The assistance provided by the Government’s support through the furlough scheme and the temporary increase to Universal Credit assisted tenants and had a positive impact, but we did see a massive increase in rent arrears, with over one year’s arrears being the norm in many cases.

Opening up

As a sector, the property market was one of the first to open in May 2020, and with the stamp duty concession that followed, we saw a frenzy as the sales market heated up. 

With that, at Landlord Action we did see a huge increase in instructions, where landlords wanted to serve notice on their tenants, so they could sell their property and cash in on a high price, but also for other reasons such as increased legislation and rising taxes. 

A lot of these landlords, we noticed, were the smaller ones in the one to four property bracket. I do speak to landlords daily and there are many that want to grow their portfolios in 2022.

We await more details on what the future holds in the White Paper relating to the Renters Reform Bill, the main topic being the abolishment of Section 21- the non-fault notice. 

We know there needs to be a lot of work on the Section 8 grounds of reform from the current 17 grounds, along with bailiff reform and mediation.  But there was good news with the announcement by Dominic Raab, Lord Chancellor, that over £300 million is to be invested in the court system.

Talking about Section 21 claims, under the Accelerated Possession Procedure the most ever issued in a year was 38,000, in 2015. Since the introduction of the Deregulation Act, there has been a decrease in numbers, as now there are many more compliance issues a landlord must abide by to gain a possession order from the court. 

15 minutes

I spoke to a judge who regularly deals with Accelerated Possessions, and she said on average it takes her fifteen minutes to deal with one case.

So far in 2021 possession claims stand at 23,000, not including the Q4 December figures which are yet to be added.

But I think the reality is that in 2022, the 2020/21 possession figures will at least double, with social housing providers starting to issue claims again, after two years, holding off evicting tenants.  

Some 70% of possession claims issued come from the social housing sector. Social rents will increase next year. Tenants’ household bills will increase, especially energy costs, along with increased taxes and an increase in inflation.  Private rents meanwhile are also still increasing. 

The reality is possession claims and evictions will increase sufficiently.

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Don’t use the ‘L’ word

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The majority of the Buy to Let community say they would prefer not to be called “landlords”, according to research from mortgage intermediary Mortgages For Business. Some parts of the US media, including regional divisions of NBC

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Two of city’s postcodes offer best returns in UK says report

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A leading property investment firm has named the top-performing postcodes and regions of the UK.

Track Capital, which is based in London but works with property investor clients all over the UK, has crunched the numbers for 1,350 postcode districts across the nation and says Nottingham currently offers the best return on investment for buy-to-let landlords.

Its December data snapshot shows that two postcodes within the Midlands city offered just over 11% gross yield – NG7 and NG1 – followed by the BD1 postcode in Bradford (10.6%), M14 in Manchester (10.10%), NE6 in Newcastle upon Tyne (9.8%), YO10 in York (9.8%), SA1 in Swansea (9.2%), CF37 in Cardiff (9.2%), SO17 in Southampton (9.2%) and YO31 also in York (9.10%).

This hotspot Top Ten compares favourably with the average gross yield per property in the UK, which currently stands at 3.63%, says Track Capital.

Looking through the list, the message from the data is clear – cities where rents are relatively high but prices still low are where the gross yields are to be found – so often areas where young professionals and students want to live.

“Student-dense cities such as Manchester, Leeds and Nottingham feature highly and are responsible for much of the high yields in those cities,” says Nick Hyland, founder of Track Capital (pictured).

“London can still achieve above-average yields, especially a little further out in the commuter belt, such as 5.2% in Dartford but it also has the lowest-performing areas in the country.”

But the research also suggests where not to invest. The worst places for yield in the UK are GU10 in Guildford (1.9%), HP9 in Hemel Hempstead (2%), IG4 in Ilford (2%), WD7 in Watford (2.1%), CM4 in Chelmsford (2.2%), B93 in Brum (2.2%), AL4 in St Albans (2.2%), KT13 in Kingston (2.3%), W1 in central London (2.3%) and also SL9 in Slough (2.4%).

Read more about Nottingham landlords.

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