Tory MPs declare war on landlords who convert rural rentals into Airbnbs

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Tory MPs have declared war on landlords in holiday resorts who are kicking out tenants to convert their properties into Airbnbs.

Totnes MP Anthony Mangnall is set to declare a housing emergency by the autumn, reports The Times, as locals have been left homeless by soaring property prices and the staycation boom.

“There are just 19 properties you can rent long-term in the whole of South Hams on Rightmove, yet there are 300 advertised on Airbnb in Salcombe, another 300 in Kingsbridge, a similar number in Totnes. Yet we have hospital staff who can’t find anywhere to live, RNLI crew that can’t live in the town they serve,” says Mangnall.

Holiday spots

Fellow Tories in the South West – Steve Double and Derek Thomas – and Duncan Baker in North Norfolk want housing secretary Robert Jenrick to introduce a range of measures to ease the housing crisis in key holiday spots.

Plans include regulation of Airbnb-style rentals, incentives for landlords to rent to local people, the building of more affordable homes, restrictions on the number of holiday and second homes and the ability to impose council tax surcharges on second homes.

They say the pandemic has accelerated a problem which has been brewing for years fuelled by low interest rates, cheap mortgages and a stamp duty tax cut.

Tim Farron (pictured), the Liberal Democrat MP for Westmorland and Lonsdale in the Lake District, has also launched a petition urging a change in planning laws to stop family housing being turned into second homes and holiday lets.

In the first six months of 2021, 14,660 second homes were bought in Britain according to Countrywide, which is the highest number since 2009. Across the UK, the number of new rental properties being listed is down 14% compared with the 2017-19 average, according to analysis by the property portal Zoopla. In Cornwall, it has dropped by 44%.

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INTERVEW: Meet the landlord who’s built an ‘Airbnb for long-term lets’

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If anyone was likely to build a renting platform for landlords and tenants then it should be Toks Adebiyi, who has observed rental property from every angle.

The 38-year-old is a landlord but has also been a tenant, run a property investment group with 1,000 members, established his own estate agency and trained as a letting agent.

But it took one of his tenants ringing him while he was on holiday to set him on a path to what would become Clooper.

“I had been managing my properties via pretty crude methods of paper and maybe some Excel spreadsheets and I had always meant to try and build a digital solution,” he says. 

Better way?

“But it took a tenant phoning me on holiday requesting that something be fixed that was the final straw – surely there had to be a better way, I asked myself.”

Clooper has been in development for several years and he describes it as an Airbnb for the long-lets market rather than another landlord platform or an online estate agent.

“We are building a social platform that is home-centric and enables our users to be better landlords,” he says.
One key element of the platform is that landlords can, if they are busy or on holiday, enable tenants to get quotes to have issues fixed – the landlord then signs off the best quote.

The platform launched in earnest during March this year and in June raised £400,000 in seed funding from over 300 investors on website Crowdcube.

Empire Property

This included a major contribution from Paul Rothwell, the MD of commercial-to-resi developer and landlord Empire Property.

“Clooper has been built to serve the smaller landlords who will never use an agent because they prefer to manage their properties themselves, which is around 60% of the market,” he says.

“I like to think they are people who want to do it themselves but do it properly – and we already have many landlords using us who like that.”

Adebiyi says a more advanced version of the platform called Clooper PRO is waiting in the wings that will be for larger landlords and letting agents too.

Read more about Clooper.

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Check properties every three months or risk tenants from hell, landlords warned

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A buy-to-let investor in Bradford has called on fellow landlords to inspect their properties every three months after a ‘tenant from hell’ trashed his terraced house and cost him thousands in repairs and lost rent.

Hassanin Al-Assan has contacted LandlordZONE after a year-long saga that started when he rented his property (pictured) in the West Bowling district of the city.

The tenants started out as a hard-working couple with two children but after a few months began reporting damage to the property including a broken side-door lock, front door handle and, on the final occasion, a smashed rear kitchen window.

NHS job

“Just after they moved in I took a job working for the NHS in Glasgow so I had to leave Bradford and, along with several Covid lockdowns, this made it difficult to keep an eye on the house,” says Al-Assan.

“When the damage occurred I organised for the items to be replaced, but then the police called to say that the woman, who appeared to be living in the property with her kids but no partner, was being re-housed after anti-social behaviour outside the property.”

Drug use

The landlord says it transpired that the woman had been smoking cannabis in the house and owed money to her dealers, who had been causing the damage to the property.

“I asked a friend to check on the house and it was a total mess – dirty throughout including spliff butts everywhere, broken doors, windows and generally in a terrible state,” he says.

The tenant left the property without having to be evicted but Al-Assan say quotes to reinstate the house are around £3,000 on top of lost rent.

“I would urge all landlords to check their properties every three months and have that written into their tenancy contracts,” he says.

“And if you don’t have the time to do that, then use a letting agent; the cost and hassle are a lot less than the nightmare I’ve been through.”

Read more about tenants from hell.

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Relaxation of the planning laws could lead to poor quality housing

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From the 1^st of August, developers will be allowed to convert a wide range of business premises into residential apartments and flats.

Office to residential conversions are already allowed under permitted development rights (PDR), but as from 1^st August these rights are to be extended to include Covid hit vacant shops, restaurants and gyms.

There are of course some safeguards. To be eligible for these conversion rights, developer’s proposals must meet specific limitations and conditions set in the legislation. In some cases a prior approval application is required and even where a scheme meets all the PDR criteria developers can ensure that a scheme is lawful by applying to the planning authority for a lawful development certificate (LDC). In all cases initial consultations with local planners is essential.

The move to relax restrictions on conversions through PDRs, it is hoped, will help regenerate Covid hit town and city centres that will struggle to recover during and after the pandemic.

However, a recent study by insurers Zurich UK warns that some of these conversations are likely to lead to poor quality housing which not only fail to meet recognised space requirements, they will be vulnerable to overheating in summer.

With housing provision high on the political agenda, reforming the planning system has been a recurring theme over recent years with extensions of permitted development rights introduced in 2005, 2010, 2013 and 2015 and now in 2021.

A recent research report published by RICS has highlighted the benefits but also the problems introduced by extending permitted development rights. By having building conversions proceed without formal planning approval in England it limits planning authorities control.

Of five local authorities studied by RICS, with high rates of permitted development schemes, Camden, Croydon, Leeds, Leicester and Reading, including site visits to 568 buildings, inconsistencies were found in the quality of developments. RICS found that only 30% of conversions delivered through PDR met national space standards.

While the chartered surveyor’s body did find examples of “extremely high-quality housing conversions”, there were also examples with “no amenity space, low quality design and were poor locations for residential amenity.”

The study concluded that office-to-residential conversions under PDR had produced a higher number of poor quality housing than those governed through full planning permission.

The Zurich UK study warns that the drive to convert more town and city centre commercial space into residential housing risks creating more poor quality homes that are vulnerable to overheating in the summer.

The company fears that “A rush to redevelop shops and offices left empty by the pandemic could create a swathe of sub-standard homes that are vulnerable to climate change.”

Zurich thinks the problem could be so severe that small self-contained bedsits and studio flats in particular “could potentially become uninhabitable during increasingly hot summers.”

Warning that properties in built-up areas, towns and cities, are affected by what is termed the “urban heat island” effect, where temperatures are much hotter than suburban and rural outlying areas. There is also the danger in some locations of flash flooding as we have seen in recent weeks, caused by heavy downpours on mainly paved, tarmacked and concrete surfaces.

Tony Mulhall, associate director of the land professional group at the Royal Institution of Chartered Surveyors say:

“The post-Covid city may need to quickly adapt to new modes of behaviour, which could see many building types adapted for purposes not originally intended.”

According to the Climate Change Committee (CCC), the independent body which advises the government on climate change, says that already 20% of homes in the UK are susceptible to overheating. This, the organisation warns will result in a tripling of the heat related death toll by 2050 as temperatures continue to climb.

According to the Zurich UK study, over 64,700 flats have been converted from unused offices in the last five years and between January and March this year, applications for office-to-residential conversions in England have risen by 28%, to a three-year high.

Developers are currently buying up office blocks which have been left vacant by an exodus of workers from city centres and which are now ripe for conversion to residential. The conversions typically have large windows, but no air conditioning. If all the windows face south, it can create a sweltering flats, with no escape from the heat.

A government spokeswoman for Housing, Communities and Local Government (HCLG) has refuted some of Zurich’s claims, arguing that the claims are based on unfounded assumptions and that homes delivered through PDR have continued to make an important contribution to housing delivery.

“Our reforms will transform unused buildings into much-needed new homes, and all new homes must be of high quality and meet national space standards and building regulations, including ventilation requirements,” the spokeswoman said.

Mr Mulhall for RICS has said that the changes to PDR mean:

“A generation of hermetically sealed commercial buildings may now fall into this category to be repurposed for housing, needing to satisfy a completely different set of standards.”

Adding that energy poverty may mean that some residents cannot afford to heat their homes during the winter, “The other increasing concern is residential buildings which, due to increased natural temperatures, are tending to overheat,” he said.

Those flats developed out of a commercial buildings, from a large square floor-plates, often have only one facing aspect and no outside space which this means they can’t get the cooling effect of a good through-draught.

Zurich says it wants ministers to look at ways to climate-proof buildings, including cooling measures in flat conversions. Fitting heat-reflecting windows, installing window shutters and sunshades and using reflective surfaces and improved ventilation systems are suggested solutions.

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BREAKING: Managing agent bodies ARMA and IRPM put merger proposals to members

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The Association of Residential Managing Agents (ARMA) and The Institute of Residential Property Management (IRPM) have proposed a merger.

The UK’s two largest property management profession bodies want to establish a united and stronger voice for the industry, at a time when managing agents and property management professionals face unprecedented changes and as legislation begins to make its way through Parliament. 

ARMA executive chair Nigel Glen (main image, left) says the bodies have worked together on a wide range of topics including the building safety crisis, sector mental health and wellbeing and regulatory reform.

A merged organization would give it greater power and enable it to support both managing agent firms and professional individuals. 

Effective support

“Combining our resources, data and expertise allows us to more effectively support our membership through guidance and business support, raise standards through enhanced professional qualifications, multi-channel training and ongoing professional development opportunities, and provide a more influential and representative voice to our ongoing government and stakeholder engagement,” says Glen. 

The proposal would be subject to approval by members at their forthcoming general meetings.

If approved, the two organisations and their respective secretariat teams would come together before the end of the year and the two brands would be retained for a period of time under the new organisation.

It is proposed that IRPM CEO Andrew Bulmer would become CEO of the new organisation, while Glen would become the executive chair of the new board. 

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Landlord fined after blaze reveals eight tenants living in unlicensed HMO

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A blaze at an unlicensed HMO prompted officials to discover a dire lack of fire safety measures and the landlord to be prosecuted and fined.

Eight people were believed to be living in the four-bedroomed semi-detached house in Uxbridge Road, Wexham, when an electrical fire broke out in one of the first-floor bedrooms in the early hours of 8th October last year, causing serious damage.

An investigation by Slough Council revealed inadequate fire safety measures in the house including no fire alarms or fire doors. There was also a lack of safety features including a handrail leading to the attic room along with no safety certification of the gas and electricity systems.

The HMO was unlicensed, and an emergency prohibition order was issued preventing anyone living there until the safety issues had been addressed.

Landlord Nadeem Khan, 40, admitted five offences at Reading Magistrates’ Court and told magistrates he had borrowed money to rectify all the problems.

He added that he had been unable to evict non-paying tenants due to coronavirus regulations. Khan, of Warwick Avenue, was fined a total of £900 and ordered to pay £3,000 costs and £90 victim surcharge.

Councillor Balvinder Bains, cabinet member for regulation and public protection, says: “This could have had a very different outcome. A fire in the middle of the night with no fire alarms could have resulted in much more serious consequences.

“The reason there are landlord licences is to raise the quality of privately rented homes so tenants are in a compliant environment.”

Read more about Slough Borough Council.

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Tenant demand for properties across UK rises to highest level for five years

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More than a third of landlords (39%) have witnessed increased tenant demand during the past three months – the highest figure since 2016.

After climbing by eight percentage points since the previous quarter, the increase continues a rising trend for demand from the low of 14% recorded in the second quarter of 2020, according to Paragon Bank. 

The survey of more than 750 landlords, carried out by research consultancy BVA BDRC, also showed a dip of two percentage points in the number of landlords reporting a fall in tenant demand compared to the first quarter of the year.

Landlords who are unsure about current levels of tenant demand also saw a small decline, falling by three percentage points.

London revival

With the exception of central London, all regions have seen a year-on-year increase in landlords reporting a significant increase. Yorkshire and The Humber saw the biggest rise after 65% of landlords reported increased tenant demand.

This was closely followed by Wales and the South West where a rise was reported by 64% and 63% of landlords respectively.

Moray Hulme, Paragon Bank director of mortgage sales, says quarter two of 2020 was a time of real uncertainty and this was reflected in the record low levels of demand that landlords saw.

“Demand bounced back the following quarter and has been rising ever since,” says Hulme. “This highlights the resilience of the private rented sector and suggests that a growing number of people have turned to it at a time when the stability of a good quality home is ever important.”

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LATEST: Council secures UK’s first ever ‘ASBO’ against 29-year-old rogue landlord

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A rogue landlord who harassed and tried to illegally evict his tenants has been slapped with the first anti-social behaviour injunction against a landlord.

Camden Council secured the injunction against Mohammed Ali Abbas Rasool, 29, of Manor House Drive, at The Royal Courts of Justice.

Working with the Met Police, Camden brought the case against Rasool after he repeatedly attempted to illegally evict and harass tenants at a property in Kilburn.

The injunction includes an exclusion zone around the house, which remains until 14^th May 2022. Rasool can be arrested if he enters this zone.

Multiple complaints

Following a disclosure request made by the council to police, the court heard of similar reports made against Rasool by tenants in other boroughs. Camden’s private sector housing service is also investigating the safety and management of other properties operated by Rasool in the borough.

The council’s work to protect private renters is one of the most enthusiastic in London; it has registered more than 50 landlords on the Mayor of London’s rogue landlord checker, secured the capital’s first ever rogue landlord banning order and has now given out three of the four landlord banning orders in the capital.

Councillor Meric Apak (pictured), cabinet member for better homes, says its HMO licensing scheme and rogue landlord taskforce continues to improve the standards in Camden’s private housing sector, empowering renters to take action and helping good landlords to run successful businesses.

He adds: “The legal action taken in this case was a necessary last resort. Our message to landlords and letting agents is that we are here to work with you; to provide advice and assistance first of all and to ensure you can meet your obligations.” 

Read more about rogue landlords.

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Clooper is LandlordZONE’s Official Property Management Platform Partner

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We are excited to announce Clooper as our Official Property Management Platform Partner.

To celebrate the partnership, Clooper are offering LandlordZONE readers a 30-day free trial for using the code CLLZ0001, which expires on September 30th, 2021, and includes free rent processing, free property advertising, and more. Additionally, for those who sign up to an annual plan – you will also get a free exclusive Clooper t-shirt!

This just made DIY lettings and property management easier.

Property management can be time-consuming and inconvenient. Clooper streamlines the process by connecting landlords to tenants, and tradespeople. With a wide range of cost-effective solutions, the self-service online platform saves you time and money. You retain control by accessing everything in one place.

If you own a property or are looking to rent one, Clooper makes it easier to connect with all the relevant property stakeholders. You can use digital signatures to manage legal documents, receive secure online deposits and rent payments, and also receive timely notifications. In addition, stay compliant with statutory obligations and manage your income and expenditure. As a result, you’ll have healthier relationships and more free time.

Clooper is a cost-effective platform for advertising your property, finding the right tenant, and managing maintenance and repairs. The platform facilitates direct communication between landlords, tenants, and trusted tradespeople. You can schedule viewings, screen potential tenants, manage tenancy applications, connect with local tradespeople, arrange repairs and more.

Clooper charges landlords from only £9.49 per month per property (large portfolio landlords can discuss rates).

Clooper connects landlords to local tradespeople, allowing them to easily sort out all of their maintenance needs. Clooper offers tradespeople a platform to network, grow their business, and reputation with a personalised business page that increases their visibility and credibility at no cost. They can provide estimates for upcoming projects, set up appointments, and accept secure payments.

With access to a variety of property listings, tenants can now save time and rent a property faster and easier. They can source repair quotations or submit maintenance requests directly to the landlord for approval, without the need to pick up the phone.

Chief Executive Officer/ Founder, Toks Adebiyi, said “As Clooper is an all in one lettings and management platform that was created by progressive landlords for landlords, I am delighted to partner with LandlordZone which I feel is the best forum for landlords out there. It’s a natural partnership and I believe our synergies will continuously help us deliver a better service to landlords”.

Paul Shamplina, Chief Commercial Officer of LandlordZONE and the wider HF family says, ‘We are delighted that Clooper have become our partners at LandlordZONE as our official property management platform . A platform that saves landlords time, money, keeps them your date with their property and can make them compliant is a great benefit to landlords.’

Save time and stay in control with an all-in-one platform that is easy to use.

SIGN UP NOW: https://clooper.com/

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LATEST: High Court intervenes dramatically in rent-to-rent sector over RROs

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The High Court has intervened dramatically in the rent-to-rent sector after three judges ruled that a landlord who sublets their properties via this kind of scheme are not liable for Rent Repayment Orders (RROs).

The ruling overturns a previous decision by the Upper Tribunal in Rakusen v Jepson, which ruled that an RRO application could be made against any landlord of the relevant property for the relevant period of the relevant offence.

Leaseholder and landlord Martin Rakusen granted a tenancy of his flat in Finchley Road, London, to Kensington Property Investment Group Ltd (KPIG) in May 2016, introduced by agents Hamptons. KPIG then entered into separate written agreements with the four tenants.

In November 2018, Hamptons told Rakusen that KPIG wanted to apply for a licence but none was granted and Rakusen did not renew KPIG’s tenancy in May 2019. The tenants then applied for, and won, RROs totalling £26,140.

Significant difference

Giles Peaker (pictured) at Anthony Gold Solicitors says the judgement will make a significant difference to those seeking RROs against less than salubrious landlords.

He adds: “A crumb of comfort is that the Court of Appeal accepted the policy intent and the ‘on the ground’ situation with dodgy rent to rent/intermediate landlords may both merit the extension of RROs to superior landlords. But the Court of Appeal consider that is now a matter for parliament.”

Tim Frome (pictured), MD of Property Redress Scheme, says the decision limits a tenant’s options if they have a case for a RRO against an intermediary landlord, particularly if that intermediary landlord has subsequently gone out of business.

“At the Property Redress Scheme we have a number of members who undertake rent to rent tenancies and we regularly assist both the agents and their consumers to come to resolutions on complaints,” adds Frome. “We’ve also been in regular dialogue with the government on the growing rent to rent industry and they are looking carefully at whether it needs further regulation.”

Read the full judgement.

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