REVEALED: What new housing secretary Michael Gove thinks about landlords

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New Housing Secretary Michael Gove could have landlords’ and letting agents’ backs judging by his previous form during Commons debates.

The Whitehall big-hitter has previously voted to phase out secure tenancies for life and not to ban letting agents charging tenants, or prospective tenants, fees in recent years, and has also voted to reduce the basic rate of capital gains tax.

During a debate on the Rating (Empty Properties) Bill, Gove defended landlords, saying: “The Minister could not offer us any evidence because there is no robust evidence that landlords are wilfully depressing their balance sheets and turning away eager tenants simply out of perversity or idleness.”

And in a debate about overcrowding in the housing sector he said: “We also need to recognise that private landlords can play a significant part in meeting housing need.”

During his failed bid to lead the Conservative party in 2016, the former Cabinet Secretary and key Brexiteer pledged to build a swathe of social rented housing.

Housebuilding

Gove called for a “national ambition” to build hundreds of thousands of homes a year, both private and socially rented.

Back in 2007 – while Shadow Minister for Communities and Local Government, Housing and Planning – he had promised that a Conservative government would massively push up the housebuilding target from the 200,000 homes a year pledged by the then Labour administration.

However, this enthusiasm for house-building doesn’t seem to translate to his own constituency of Surrey Heath where he has a record of objecting to new developments.

In 2019, he declared he was “deeply concerned” about plans to build a 1,500-home garden village on the site of Fairoaks airport, while in October 2020 he spoke out against a scheme in Bagshot for 44 homes, almost half of which were to be affordable, complaining it would “alter the character of the village for the worse”. Both schemes got the go-ahead.

Read more about Michael Gove.

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EXCLUSIVE: Landlords and agents ‘wrongly rejecting’ Hong Kong visa holders

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London Assembly members have raised concerns that landlords and letting agents in the capital are wrongly rejecting British National Overseas (BNO) visa holders – who at the moment are largely those arriving from Hong Kong.

Hackney councillor Seb Moema (pictured) says there is anecdotal evidence that landlords and agents aren’t aware of the BNO visa and are denying people permission to rent – despite Hong Kong citizens having the right to live, work and study in the UK.

Mayor of London Sadiq Khan says he shares concerns that the Home Office’s hostile environment creates barriers for Londoners to access their rights and entitlements.

He told members he has raised the issue with the National Residential Landlord Association (NRLA) and the Mayor’s Private Rented Sector Partnership, which brings together officers responsible for enforcing against rogue landlords and letting agents.

Khan added: “My officers are continuing to seek opportunities to publicise the rights of BNO visa holders and others impacted by Right to Rent checks.”

An NRLA spokesman says it has long held concerns about the Right to Rent policy.

He says: “Above all, landlords should not have to cover for the failures caused by those responsible for policing the country’s borders. However, whilst it remains in force, landlords must carry out checks fairly and understand the various documents, including BNO visas for those from Hong Kong, that entitle a holder to rent property in the UK.” 

Right to rent

Earlier this year, former Housing Secretary Robert Jenrick told landlords that both BNO status holders and their eligible family members with a BNO visa, or those granted Leave Outside the Rules (LOTR) at the border, have the right to rent in the UK.

“A landlord can offer a 12-month assured shorthold tenancy to someone who has been granted LOTR for six months. Right to Rent ensures that those with time-limited leave are not prevented from accessing the private rented sector, by having an ‘eligibility period’ which provides a landlord with a defence against a civil penalty.”

Find out more about the BNI visa.

Read more about Right to Rent checks.

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12 Buy-To-Let Flats Under One Roof Case Study

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The smart way to achieve high cash flow in Buy-To-Let property is to take a defunct commercial building and convert it to multiple one-bedroom flats.

Join me at one of the projects from my Mastermind student, Mindaugas ‘Mindy’

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Renters picket parliament to back abolishing Section 21 evictions

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Private renters held a day of action outside Parliament to demand that the government delivers on its promise to end unfair evictions.

Renters and members of the Renters Reform Coalition met Sam Tarry MP (pictured, main image), Stephen Timms, chair of the Work & Pensions Committee and Lloyd Russell Moyle, chair of the All-party Parliamentary Group on Renters and Rental Reform, to share their experiences and ask them to reform the sector.

The Renters Reform Coalition is made up of 20 charities, unions and advice centres including ACORN, Citizens Advice, Generation Rent, NUS and Shelter. It organised the event to flag up the end of coronavirus protections for private renters; extended notice periods revert to two months on 1st October.

Evictions

According to the English Housing Survey, 57,000 private renter households (or 1.27% of the PRS) were evicted in 2019-20. The coalition is calling on the government to end unfair evictions and introduce open ended secure tenancies, introduce a national register of landlords to raise standards, stop illegal evictions, end discrimination in rented homes and tackle the affordability crisis.

Coalition chair Sue James (pictured) says the pandemic is a painful reminder of the importance of a safe and secure home. “The lifting of the eviction restrictions takes that basic need further away,” she adds.

“Private renters cannot go back to the status quo – of high rents, unsafe homes and insecure tenancies. It’s time to make private renting better, not worse.

“Now that Parliament has returned, we have a once in a generation opportunity to ensure the private rented sector is secure and safe.”

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Rental sector is ‘structurally racist’ claims Joseph Rowntree Foundation

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Welfare and immigration policies have led to renters from ethnic minority communities being much more likely to live in unaffordable housing, says the Joseph Rowntree Foundation (JRF). 

Its new report – What’s Causing Structural Racism in Housing? – says two in ten Black, Asian and minority ethnic (BAME) households across the UK live in unaffordable housing (defined as spending more than 30% of your income on housing), double the national average for white households.

The charity says the benefit cap disproportionately limits the incomes of BAME families; eight in 20 households affected by the benefit cap in England are BAME, although they only make up three in 20 of the population.

It adds that the No Recourse to Public Funds (NRPF) policy bars people with temporary immigration status from accessing the social security system.

Unaffordable housing

JRF’s analysis shows how BAME workers in lower paid occupations in London – probably subject to NRPF – are three times as likely to be living in unaffordable housing, at risk of poverty and homelessness, compared to white workers. 

It says that although direct discrimination against BAME groups by landlords has long preceded the Right to Rent rules, the government’s decision to devolve immigration policy to landlords by making it a criminal offence to let to people without leave to remain in the UK, has further fostered this practice.

All but one of the 10 most ethnically diverse local authorities in England outside London has a significantly higher rate of eviction possession claims than the 10 least diverse.  

Darren Baxter, policy & partnerships manager at JRF (pictured), says: “These injustices are not inevitable, but they have wide foundations in our economy, society and legislation.

“If we do not look closely at the systems which are holding people back, we will only continue to see evidence of shocking racial inequalities in our society.” 

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Yet another new Housing Minister – ‘Big Beast’ Michael Gove

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Robert Jenrick, the Secretary of State for Ministry of Housing, Communities & Local Government has been sacked in the latest Cabinet reshuffle and replaced by Tory ‘Big Beast’ Michael Gove who famously stabbed Boris Johnson in the front during the first conservative leadership campaign after the Brexit vote.

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5 ways to set you up for success this ‘move in season’

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Most landlords know that it is that time of year again. Yes, the lettings calendar typically follows the academic calendar and September is fast approaching.

For landlords who own and manage multiple properties which either have recently become vacant or will become vacant, it is paramount that we onboard new tenants as well as possible.

First impressions count and if your relationship can set off on the right footing, landlords can see a 27% reduction in complaints and escalation of small issues to an ombudsman.

Because we speak with more property management companies, landlords and estate agents than anyone else, we have a unique perspective.

We understand the worries and anxieties of people involved in the property industry and therefore we wanted to put together a list that could help:

Brought to you by allservices4u here are seven tips for landlords who want to get ‘move in season’ done right:

1. Treat your new tenants right

As landlords, we hate dealing with difficult and unresponsive tenants. At the same time as this, tenants hate and do not want to deal with unresponsive landlords. It is key to make sure that your tenants feel great about you and your property when they move in.

2. Hire A maintenance firm that understands tenants and how to represent you

If you have lingering worries about your margins, working with an all in one maintenance service that works on a flat subscription rate, can ease those anxieties.

Most maintenance firms are not run by Landlords or people who work in the property industry and know how to serve your unique needs. This is what makes allservices4u different. Our service was created by and is run by property people, so we understand the intricacies of managing tenants and helping you to get your maintenance done, on time and for the best price possible.

3. Follow the (changing!) laws

Most landlords stay in touch with the laws, but they change so quickly and are often left to interpretation, this makes it difficult.

Following the local and national laws can save you serious cash. Even experienced landlords can face expensive lawsuits as a result of accidentally falling foul of the law.

Just like an estate agent, we keep abreast of the law for you as a means of defending and protecting you.

4. Get good landlord insurance

Insurance is critical for any landlord, however, if you have dealt with insurance firms in the past, you may be aware that receiving payouts is not an easy or short process.

That is why it is becoming more and more important to anticipate, rather than waiting for a problem to occur.

With a solid all in one maintenance plan in place, you can rest assured knowing that your call outs are all included for one low flat fee. This means there is less worry, or hesitancy to action works when requested.

5. Do regular maintenance

For landlords, maintenance and repairs are a critical factor as to whether a tenancy goes well or not and a cog of rental ownership. However, regular maintenance not only keeps tenants happy, which aids in tenant retention, but it also protects your valuable investment. In fact, regular preventative maintenance goes a long way to reduce the chance of experiencing more costly problems. So, here are a few things you should do as part of your maintenance routine.

● Annual gas safety check

● Check for water leaks or faulty pipes

● Schedule regular checks to ensure electrics are in good order

● If you have a high turnover of tenants, locks and security upgrades are very important. The latest in smart security measures can make sure that your security spend is lowered.

Depending on your property’s features, you may need to perform other regular maintenance tasks. So, use your best judgment and coordinate with your tenants to complete maintenance with as little interruption for them as possible. Better yet, work with a Maintenance service that gets property law as well as any estate agent.

As part of move in season, make sure that you do not pay for a Gas Safety certificate until you have reviewed the Total Asset Protection Plan.

Rather than paying for Gas Safety/CP12, you can have it done free of charge! As well as getting your maintenance call outs covered as part of a 12-month plan.

Total Asset Protection (TAP) takes it a step further and goes further than just your boiler plan. TAP now means that your Boiler is not only covered, you are now covered for your electrics, locks and many other disciplines.

You pay a monthly fee, which covers all of your maintenance for your assets. Given all of the changes and that all Landlords are now treated as service providers, your life is about to change. You can now have your reactive maintenance needs covered. This means that you won’t have to take panicked calls from your tenants anymore or have tough conversations.

Let the maintenance professionals take care of the conversation and serve as the middle person between you and your tenants.

If you would like to learn more about how this works and how we are able to bring down Landlords maintenance spend (depending on your number of units), please email accounts@allservices4u.co.uk and make your subject TAP LAUNCH OFFER. If you do this we will send a voucher code for 10% which will bring down your total maintenance costs; again!

Again. Do Not Pay for a Gas Safety/CP12 until you have spoken to one of our specialists!

We will call you and help you get started with the joining process. It is really easy, you will be happy with the costs and all works are guaranteed. This will give you even more satisfaction and more of a mental moat against the stresses that naturally come with being a London landlord.

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Freehold – what’s it worth?

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Hi, There is a block of 12 residential flats in a small town in West Sussex. They had Ninety-Nine-year leases granted in 1979 with a ground rent of £15 pa, increased in 2009 to £30 pa with another increase in 2039 to £60 pa until the expiry of leases in 2078.

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Reshuffle latest: Housing secretary Robert Jenrick is out

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Robert Jenrick has lost his job as housing minister in today’s cabinet reshuffle by Boris Johnson.

The MP for Newark has been Secretary of State for Housing at the Ministry of Housing, Communities and Local Government since July 2019 and has been both a loyal foot soldier for the Prime Minister but also a contentious figure both inside and outside of the housing market he oversaw.

On hearing of his removal, he said on Twitter: “It’s been a huge privilege to serve as Secretary of State @mhclg

“Thank you to everyone at the department for their hard work, dedication and friendship. I’m deeply proud of all we achieved.

“I will continue to support the Prime Minister and the Government in every way I can.”

Not expected

Jenrick’s departure had not been expected, and only a few days ago he attended the opening of his ministry’s new HQ in Wolverhampton.

But the scandals surrounding his controversial drive to see he parents during the initial lockdown, and his relationship with former press baron Richard Desmond and approval of a controversial housing development in East London, meant Jenrick often courted negative publicity.

Raab

Others who have lost out in the reshuffle include Dominic Raab, who was ravaged by critics over his handling of the UK’s withdrawal from Afghanistan, health minister Gavin Williamson and justice secretary Robert Buckland.

Buckland oversaw the often last–minute implementation of the various changes to the evictions rules during the worst months of the pandemic, so his departure is not a surprise to many industry watchers.

It has not been announced who will take the place of these senior cabinet minister – watch this space.

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Minority of tenants say abolishing Section 21 a ‘good idea’

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A minority of tenants believe that abolishing Section 21 ‘no fault’ evictions will be good for the private rented sector, a new report has claimed.

The annual State of the Letting Industry report, which canvassed 550 estate agents and 1,700 tenants, found that 38% of tenants believe that the repeal of Section 21 will have a major and positive impact on the private rental sector, while 30% of agents believe it will have a major and negative impact. 

For arrears, the report echoes several other pieces of research, revealing that among the agents it polled, the number reporting an increase in arrears halved since the previous 2020 survey, dropping from 64% to 32%, with an additional 14% of agents saying arrears have fallen during the past year. 

Worrying

But a small but worrying minority of 16% say arrears among their tenants have increased by at least 30%. 

Overall agents remain optimistic, although the industry is showing some signs of caution following 18 months of uncertainty; although 67% feel either “very optimistic” or “somewhat optimistic” about the future of the lettings industry, this was down from 80% in September 2020.

Tom Mundy (pictured), COO of Goodlord, says sourcing new revenue streams, embracing technology, and streamlining processes are all gathering pace, as agents make their businesses fit for the future.

He adds: “After a year like no other, these insights offer a picture of a resilient, forward-thinking industry which is moving with the times and responding to major shifts in tenant demand and landlord behaviour with characteristic stoicism and professionalism”.

Read the report in full.

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