Editor’s blog: Why are rogue tenants not held to account the same way landlords are?

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LandlordZONE has published hundreds of stories in recent years about efforts across the sector to reign-in rogue landlords.

They are a small group who, even the government admits, compromises at most 10,000 people or 0.4% of the UK’s 2.6 million landlords.

But they generate a disproportionate number of headlines in comparison with their size, usually when they are found to be running illegal HMOs, contravening selective licensing regulations or being fined for dangerous or substandard properties.

Looking at the LandlordZONE forums, emails from our readers and the comments below our articles about these cases, it’s clear some landlords feel frustrated that good operators rarely get much publicity in the media.

They also feel that the National Residential Landlords Association (NRLA), and other property industry trade associations, expend too much effort laying into this minority of rogue landlords and too little targeting the ‘nightmare tenants’ who wilfully damage properties, avoid paying rent or run circles around the evictions process.

Or in some cases all three – as we often highlight including, earlier this summer, the case of Lilyana Markova.

After all, the government has set up a national rogue landlord database and is also planning to bring in a landlord redress scheme to enable tenants to gain compensation or action when their landlord falls short of minimum standards.

But what about a rogue tenants database for the sizeable community criminal renters and fraudsters who prowl the PRS, many landlords ask.

As reader Gtim put it recently: “Why is the NRLA not pushing for a more balanced legislative changes; how about a national tenant register to stop rogue tenants from moving from house to house leaving a trail of destruction whilst living cost free.”

Tackled urgently

I put these points to the NRLA. It’s spokesperson has told me in response, that: “Criminal and rogue tenants need to be tackled just as urgently as criminal and rogue landlords and our plans deal with this.

“The NRLA team works day-in-day-out to assist landlords in dealing with challenging tenants, and the harm that they can cause.

“That is why throughout the pandemic we have worked strenuously to ensure that enforcement action could still be taken against anti-social tenants. 

“Our proposals for the forthcoming rental reform white paper include calls for an enhanced set of rights and practical tools for landlords to resolve disputes and legitimately repossess properties, as well as improvements to the court system to ensure possession cases can be heard more swiftly and effectively than at present.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Editor’s blog: Why are rogue tenants not held to account the same way landlords are? | LandlordZONE.

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Changes requiring face to face Right to Rent checks deferred to 05/04/2022

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The end date for the temporary adjusted checks has now been deferred to 5 April 2022 (inclusive). We have made the decision to defer the date following the positive feedback we received about the ability to conduct checks remotely. We initiated a review of the availability of specialist technology to support a system of digital right to rent checks in the future.

The post Changes requiring face to face Right to Rent checks deferred to 05/04/2022 appeared first on Property118.

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BREAKING: Welsh Ministers agree to extend commercial tenancy eviction moratorium

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The Coronavirus Act 2020 granted Welsh Ministers emergency powers to handle the COVID-19 pandemic independently, but this decision brings Wales in-line with England on the changes to the commercial tenancy eviction moratorium.

The Act introduced provisions that a right of re-entry or forfeiture, under a relevant business tenancy, for non-payment of rent, may not be enforced during the moratorium period, now extended until March 2022.

The moratorium provides protection from eviction for commercial tenants in rent arrears and is introduced in order to limit the impact on businesses from the series of lockdowns and trading restrictions imposed on the Welsh economy, as in England, throughout the pandemic.

The UK Government announced an intention to introduce legislation soon which will “ring-fence” commercial rent debt accrued during the pandemic. The idea is that instead of immediately resorting to eviction proceedings, landlords and tenants of business tenancies will be forced to negotiate, falling back on a system of binding arbitration, when agreement between tenants and landlords cannot be reached.

The UK Government recently announced its intention to extended the moratorium in England to 25 March 2022, which gives time for UK Parliament to pass the necessary primary legislation.

The restrictions on the use of commercial rent arrears recovery (CRAR) so that, from the 24 June 2021, the minimum net unpaid rent that must be outstanding before CRAR can be used is 554 days.

The Welsh government’s decision therefore will give the same levels of protection in respect of all these matters for Welsh businesses as those in England, and “will assist with the recovery of Welsh businesses as the economy improves.”

“It will also provide the Welsh Government with what is believed to be sufficient time to continue to work in considering and then where necessary, implementing measures in relation to commercial rent arrears accumulated during the pandemic in Wales. It is expected that this will include working with the UK Government in the further consideration and development of their proposals,” a Welsh government publication by Vaughan Gething MS, Minister for Economy, states.

The 26 August announcement emphasises that the protection provided by section 82 of the Act during the “relevant period” does not remove the requirement to pay rent, and “I am clear that, wherever possible, tenants should of course pay rent,” says the minister.

“This statement is being issued during the Welsh government recess in order to keep members informed. Should members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so,” the minister says.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Welsh Ministers agree to extend commercial tenancy eviction moratorium | LandlordZONE.

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New Article 4’s are coming – What you need to know

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New article 4’s are coming! Act fast to seize opportunities before the door closes on you. Linda and I break down everything you need to know following a review of statements from over 30 councils!

We talk about the new regulations being put in place and how we feel the councils do not understand the new National Planning Policy Framework 2021 policy for new Article 4’s and what you need to know in this situation.

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BREAKING: Home Office extends Right to Rent checks deadline until 5th April 2022

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Landlords are now able to carry on completing Right to Rent immigration checks via virtual interviews and remote document checking until the 5^th April next year, the Home Office has announced.

The government had said previously that new tenants and their documents would have to be checked face-to-face from 31^st August onwards, but this has now been extended.

The statement by the Home Office (pictured) makes it clear that the delay is in part due to the technology advances recently that were developed to help tenants and their documents be checked safely during Covid.

“We have made the decision to defer the date following the positive feedback we received about the ability to conduct checks remotely,” the Home Office statement says.

“We initiated a review of the availability of specialist technology to support a system of digital right to rent checks in the future.

Digital solution

“The intention is to introduce a new digital solution to include many who are unable to use the Home Office online checking service, including UK and Irish citizens.

“This will enable checks to continue to be conducted remotely but with enhanced security.

“Deferring the end date of the adjusted checks to 5 April 2022 ensures the Right to Rent Scheme continues to operate in a manner which supports landlords and letting agents, whilst we look to implement a long-term, post-pandemic solution.”

The technology is now all the more needed – landlords or their letting agents habe been required to check all tenants regardless of their nationality including UK citizens since last month.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Home Office extends Right to Rent checks deadline until 5th April 2022 | LandlordZONE.

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Rent controls in Scotland will be ‘catastrophic’ warn letting agents

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Property professionals have warned that Scotland’s decision to introduce a nationwide rent control regime will be ‘catastrophic’.

The proposed scheme, which is likely to become law next year, is a product of a new power sharing agreement between the SNP and Scottish Greens.

Part of the deal is that parts of the Greens’ radical housing manifesto will be turned into legislation, including rent controls.

The manifesto commits the party to ‘transform the private rented sector, providing greater security for tenants, regulating rents, and improving standards’, including a points-based system of rent controls, along with a winter evictions ban – a policy common in several parts of Europe – and make all grounds for evictions discretionary rather than mandatory.

National estate agency trade body Propertymark says rent controls are not the answer and that what’s needed instead is the ‘proper enforcement of existing rules, additional supply and more social housing’.

Ill thought through

Its Scottish representative Daryl McIntosh adds, “At a time when demand for privately rented homes is massively outstripping supply, several of the Greens’ proposals risk deterring private landlords from the market.

“The Private Rented Sector provides a vital service in the housing system and recently this contribution feels forgotten – surely an ill thought through policy objective.”

Leading letting agent David Alexander (pictured) says he would support limiting rent rises in popular city-centre postcodes to one or two percent a year to match inflation, but says more draconian ‘rent caps’ would be impossible to implement – i.e. would it be based on previous rent, square footage, size, desirability of the property and so on?

“Those who wish to lock the private sector into a rent control straitjacket – especially for ideological purposes – should remember the law of unintended consequences and be careful what they wish for,” he adds.

Read more: Step away from disastrous rent controls, landlords urge Sadiq Khan.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Rent controls in Scotland will be ‘catastrophic’ warn letting agents | LandlordZONE.

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BREAKING: Demand for pet-friendly rental properties up 120%, says Rightmove

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Rightmove has reported a deluge of tenants looking for pet-friendly properties to rent following the long months of Covid.

This includes a 120% jump in searches on its portal for rental properties whose landlord accepts dogs and cats while many agents have also reported a deluge of tenants getting in contact to find pet-friendly properties, the portal says.

Government and pet charity data reveals that just over 50% of all households now have a pet after some 3.2 million additional households purchased a dog or cat during the pandemic.

Richard O’Neill, MD of Romans Lettings, says: “There has been an increase in demand for pet-friendly homes over the past year, which we attribute to the pandemic and a resultant shift in priorities.

“Where more people are spending more time in their homes and now have more space, it is likely that they are fulfilling past ambitions of owning a pet and now feel as though they have the environment and lifestyle to facilitate that.”

Katinka Hill (pictured), a lettings director at Chestertons, says: “About half of the phone calls our offices are receiving now are from tenants who own a pet and need a suitable property.

“It’s a sharp increase compared to the number we were getting pre-lockdown but this is not surprising as so many people have bought pets during the pandemic.”

Campaigner Jen Berezai (pictured) of AdvoCATS, which works with multiple agencies across the animal welfare and private rental sectors, says: “We recognise that thousands, possibly hundreds of thousands of people are missing out on the joy and benefits of pet ownership, just because they can’t afford to get on the housing ladder.

“This is the reason behind our Heads For Tails! report and forthcoming campaign to amend the Tenant Fees Act (2019) and make the situation easier and fairer for both sides. Change is long overdue – watch this space.”

The Rightmove research will put extra pressure on the government to make pet-friendly PRS properties easier to rent, although it faces hostility from many landlords.

A recent poll by LandlordZONE revealed that two thirds of landlords are unwilling to accept pets in their properties.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Demand for pet-friendly rental properties up 120%, says Rightmove | LandlordZONE.

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New-build market grinds to a halt as EWS1 argument continues to rage

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The latest research by StripeHomes, has revealed that new-build house prices boomed by as much as 20% across parts of England during the first half of this year, but transaction levels have ground to a halt as EWS1 requirements continue to prove problematic.

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Death of the Boiler Grant for Tenants Sees Rise in Landlord Boiler Finance

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The ever illusive and in flux boiler grant (ECO) scheme, a marmite creation of the Government and Big Six energy companies to both offset UK carbon emissions and help those deemed to be living in fuel poverty has long been a thorn in the side of anyone cursed with common sense.

Running since 2013, the Energy Company Obligation has certainly benefited hundreds of thousands and as, certainly helped to reduce carbon emissions by replacing old and faulty gas boilers with newer, condensing high efficiency models.

The ever changing qualification factors however, both in terms of individuals who qualify for the scheme through personal circumstances and property types, continues to frustrate.

According to BoilerGrants.org.uk, private tenants and by extension landlords, haven’t been able to quality for any boiler funding for over 18 months since changes to the boiler grant scheme.

Whilst some basic logic on this decision can be seen (landlords should in theory have this covered for their tenants), it neglects the fact that huge numbers of the aforementioned ‘fuel poor’ are of course living in rented accommodation. It also presumes and paints a picture that all landlords are cash rich, soulless tyrants impervious to declines in economy.

What if, for instance, there was to be a global pandemic decimating a countries economy and that particular pandemic was handled like an eel in buttered fingers by a Government with the resolute, unwavering commitment of Scooby Doo’s Shaggy? …What if?

Boiler Finance Options

Having accepted the ambiguity of Government plans to further combat these issues and no signs on the horizon of tenants being able to quality again on the much anticipated third sequel to the scheme, ECO4 – boiler finance plans have become ever popular with landlords.

According to Heatable.co.uk, a digital boiler installation platform operating UK wide – they’ve seen a sharp rise in boiler finance options as the preferred payment method for UK landlords, with 0% interest over a 2-year plan being far and away the most popular.

With boiler finance being commonplace and as simple as any other online transaction, it’s little wonder that payment spreading of an out of the blue grudge purchase like a new boiler is so popular.

An additional perk?

With the average cost of a boiler installation being over £2,000 – not having to outlay that in one lump sum is the main win here, but there’s protection too. After all, mortgageable.co.uk claim that a broken boiler can be one of the most stressful landlord problems, particularly those new to buy to lets.

Much like when using a credit card, the lender or bank facilitating the boiler finance loan provides an additional layer of consumer security and a peace of mind you’ll likely not find through traditional heating companies.

Exclusive offer

Visit Heatable.co.uk for instant, fixed online quotations for a new boiler with no survey required, and no hassle.

Use code: LLZONE60 for £60 off at checkout!

Sam Rigby, CSO at Heatable says:

“The post Covid climate has left homeowners and landlords alike with financial hardships they could have never accounted for. Moreover, the number of unfortunate Brits now short of, or entirely out of work at present that are currently accommodated in private rentals is of course having a knock-on effect to landlords.

A Government U-turn that would see private tenants qualify again for entire boiler grants or contributary funding seems less likely than a smooth Brexit transition right now, but never say never.

It means that finance plans for new boiler installations, particularly interest free agreements are of huge benefit, if not imperative to many homeowners and landlords at present. At Heatable, we’ve worked well with lenders to offer an incredibly easy Point of Sale route to finance through our digital platform, in addition to the ease of which we’ve allowed and helped landlords to purchase and arrange new boiler installations.“

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Death of the Boiler Grant for Tenants Sees Rise in Landlord Boiler Finance | LandlordZONE.

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LATEST: Rogue sub-letting tenant loses appeal against £50,000 fine

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A ‘rogue tenant’ in East London has had his appeal against a £50,000 fine for operating an unsafe and unlicensed HMO turned down by a First Tier Tribunal appeal hearing.

Bricklayer Flavio Garcia was given two £25,000 financial penalties in December 2019 by Newham council after a property he managed in Forest Gate, not far from the Olympic site in Stratford, was found to have been operated as an HMO without a licence.

The property (pictured), which is on Romford Road in E2 also had no working fire alarm, no hot water or heating and broken gas cookers which forced the occupants to use portable hot plates.

Court records show that Flavia had rented the property via an AST but then sub-let rooms within it to other tenants, including friends and family.

Two penalties

After being served the two penalties, his legal representative said he was a resident in the property not its manager, and that his lack of fluency in English meant he did not understand local licencing or property standards regulations.

On this basis Garcia challenged the two fines as ‘exorbitant and vastly in excess, unreasonable and unfair’ and that an agency employed by the property’s freeholder, Mr Singh, managed the property, not him.

But the Tribunal saw paperwork that contradicted his version of events, and Judge Shepherd said that: “The Appellant’s live evidence was unimpressive. He couldn’t remember details of his case and appeared to be supplementing his evidence as he went along.

“He wanted to blame everyone but himself, including the freeholder and the agents who he said were responsible for the setting up and management of the HMO”.

During the hearing a representative from Newham council said that its records showed Garcia ran a portfolio of similarly sub-let properties in the area, a point the tribunal agreed on, and that he had been fined before.

“He is very much a ‘rogue landlord’ who has thus far managed to avoid significant penalties,” said Judge Shepherd.

Garcia’s appeal was dismissed and his two fines will now have to be paid.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Rogue sub-letting tenant loses appeal against £50,000 fine | LandlordZONE.

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