Are building contractors are milking the cladding scandal?

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While leaseholders contemplate bankruptcy, there is growing evidence that contractors are “milking” the situation to their own advantage, says Tom Entwistle.

The Grenfell Tower fire in June 2017 revealed a scandal of unbelievable proportions affecting thousands of high-rise blocks fitted with inflammable cladding as well as other building defects and inadequate fire safety equipment.

Leaseholders – many of them buy-to-let landlords – and occupiers of residential tower blocks throughout the UK, are now, in many cases, unable to obtain mortgages or sell, and they find themselves liable to pay many thousands of pounds for remedial works. #

In addition, until the work is done waking watches and upgrades to safety equipment are costing thousands, driving people to the edge of bankruptcy.

The Government has announced (10 February 2021) £5 billion investment in building safety to fully fund the cost of replacing unsafe cladding for all leaseholders in residential buildings, but this applies only to blocks of 18 metres (6 storeys) and over in England.

The funding does not apply to the thousands of affected blocks below that height, and it does not cover the cost of rectifying other building defects, fire safety equipment, and intermediate safety measures such as waking watches.

Spiralling costs

Spiralling costs amid fears that there is huge risk aversion on the part of building inspectors, and contractors taking advantage by requiring unnecessary work, are ripping off both the taxpayer and owners of affected flats, it is being claimed.

According to Martin Lees, writing for the Sunday Times, one award winning block, previously considered completely safe, which is below the government funded height, has had a thick oak beam (see below) balcony structure condemned, the replacement of which will require a major rebuilding of the block. Conversely, a neighbouring identical building has had a similar structure passed as safe following a similar survey.

As the block is 15 metres high there is no government funding for the cladding replacement and with the remedial work piled on top the cost is astronomical, forcing flat owners to contemplate bankruptcy.

The Labour Party is questioning the reliance on private contractors to decide on necessary remediation works, suggesting a that an independent government commissioning agency be set-up to employ a team of structural engineers to inspect all the affected tower blocks and decide what works are required, commission contractors, monitor progress and sign off for safety.

The Labour Party is questioning the government’s reliance on private contractors, a party spokesperson saying: “…spiralling costs, huge risk aversion, and firms taking advantage… to require expensive and potentially unnecessary works on an industrial scale, putting untold pressure on homeowners’ finances whilst milking the taxpayer”.

Speaking for one flat owner in the award winning block, her father has said: “There is no attempt to balance the very, very low risk of fire with the certainty of complete financial ruin” – for the flat homeowners.

Oak beam structures

Fire is the first concern when wood construction in a building mentioned, but experts argue this is not necessarily a bad thing. Yes, wood burns, but there’s a great deal of evidence to suggest that mass timber is actually safer in a fire than steel.

In a fire, a thick beam of wood will char on the outside, sealing the interior and protecting it from damage. Importantly, the beam will not distort like a steel beam will.

Wood burns slowly at approximately 0.02 inches/minute and the char created on the wood surface as it burns helps protect and insulate the unburnt wood below, particularly with a hard wood like oak, and maintains the structure. This gives time for the fire services to attend and deal with the fire.

The build-up of carbon on the wood’s surface limits the oxygen supply to the wood below and acts as an insulator. Therefore, the wood below the charred level will be cool and retain 85 to 90 per cent of its structural integrity.

Steel, on the other hand, begins to distort at a lower temperature and actually melts when it reaches around 1300 degrees C, so will likely fail catastrophically in a severe building fire.

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Want to sell your property portfolio while the market is sky high?

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My team and I specialise in selling landlord portfolios, and with the current market, industry experts and associations agree, now is that time to sell. Landlords need landlord experts that will go above and beyond to get you the highest price for your buy-to-lets

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Evictions Post Lockdown – A View on the Landscape from the Sheriff at Shergroup

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There can be no doubt by any property investor or landlord reading this article that the process of evicting tenants has changed as a direct result of this wretched pandemic.

Whatever the rights and wrongs of the term “eviction”

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Landlord blasts ‘total disconnect’ between local planning and EPC rules

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A landlord has called out the ‘total disconnect’ between local Conservation Area planning laws and the government’s desire to see buy-to-let properties achieve higher EPC bands, it has been reported.

Hampshire landlord Mike West has made the comments after a local council ordered him to remove triple-glazed UPV windows recently installed into a rental property he owns in Southsea near Portsmouth.

Instead the council wants him to replace them with wooden-style sash windows which are less environmentally friendly.

West says the council told him it would not tolerate any further erosion of the area’s heritage and has issued an enforcement notice against West.

The council was alerted to the UPV windows, which West says look identical to wooden ones unless inspected closely, after a neighbour reported them to Portsmouth City Council’s planning department.

Lost appeal

The landlord has said it will cost him £10,000 to replace the brand new windows on the four-floor property after he lost an appeal against the decision.

A city council spokesperson told the BBC that despite there being other UPVC windows on the street, because they were not alerted to them no action due to the amount of time that has passed.

But West says that in an era when climate change and the environment are so high on the agenda, councils should be focussing on that and not whether windows were ‘in keeping enough’ or not.

From 2030 onwards all rented properties will have to achieve a minimum EPC rating of C to be let out legally.

Read more about problems with EPCs.

Pic credit: Google Streetview/BBC

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Is it a good idea to self manage? TV star now helping landlords decide

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TV star Paul Shamplina of Channel 5 Nightmare Tenants, Slum Landlords fame has launched a course for buy-to-let landlords to help them to decide whether to self-manage or not.

The course, which is available online, is aimed at relatively inexperienced operators who may be unsure whether they have the track record and knowledge to meet the week-to-week regulatory and practical responsibilities of running a rental property in the UK.

Shamplina’s course does not cost thousands but instead is just £39 for one and a half hours of training.

This will include all slides presented during the course as well as an extensive explanation of the regulatory requirements landlords must meet, the pros and cons of using a letting agency, what ‘full service’ property management entails, and also the ‘head or heart’ choices landlords face.

“I have spent many years presenting seminars, tutorials and more recently online webinars about the buy-to-let business but one of the most common questions I’m asked is ‘should I self-manage or not’,” Shamplina tells LandlordZONE.

He says that there are obvious examples where landlords can’t self-manage UK properties such as living overseas or having demanding full-time jobs, but that there are considerations for those somewhere in the middle.

“The consequences of getting the administrative basics wrong can be both expensive and hugely time consuming particularly if you need to evict tenancy, and my course sets out to clarify what this means in practice too.”

Landlords can sign up for the course direct via Shamplina’s new website.

Insight

Leading property expert Kate Faulkner (pictured), who has reviewed the course, says: “A landlord or aspiring landlord, or indeed letting agent, will benefit greatly by watching your presentation.

“To be successful as a landlord requires insight on many levels: this programme not only flags the knowledge requirements, it gives great insight into the key thinking and the psychology behind the practice. 

“Paul has again presented a refreshingly frank and honest discussion leaning on many years of his own and other professionals.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Is it a good idea to self manage? TV star now helping landlords decide | LandlordZONE.

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Previous HMO usage disqualified on a technicality?

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One of our landlords has a licenced HMO located in a restrictive dwelling conversion ward. With an Article 4 Declaration in place, no new planning permission is being given for use as a C4 HMO. Not a problem except that this landlord converted the property into 8 unauthorised studio flats and has now been found out and told to dismantle the internal partitions.

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Will England follow suit? Scots Landlords welcome £10m rent arrears grant scheme

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Landlords have welcomed another cash boost for Scotland’s struggling tenants aimed at ensuring eviction is used a last resort.

A new £10 million grant fund to support those needing help to pay their rent as a direct result of Covid follows the launch of its £10 million tenant hardship loan fund last December, offering an interest free loan.

Last week, it extended its evictions ban to 31st March 2022, with the potential to be extended until 30th September 2022.

The Scottish Association of Landlords says its members have been working closely with tenants to reduce rents and write off arrears wherever possible and that the overwhelming majority of tenants and landlords are working together to sustain tenancies during the pandemic.

Chief executive John Blackwood (pictured) adds: “We welcome the Scottish Government emphasising that tenants have a responsibility to pay their rent and encourage landlords to work with their tenants and always treat eviction action as a last resort.”

Housing Secretary Shona Robison says the grant fund will be available later in the year and that it will work with stakeholders over the coming weeks to develop the details.

“We have been clear from the outset that eviction action must be an absolute last resort,” says Robinson.

“When landlords are flexible with their tenants, signposting them to the range of financial support that is available and coming to agreements to prevent and manage rent arrears, this sustains tenancies and keeps people in their homes, benefitting everyone.”

Ministers have promised to explore policies and financial support available for supporting sustainable tenancies and to work to improve their understanding of those evictions that do take place.

A new campaign raising awareness of tenants’ rights will launch by the end of the year.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Will England follow suit? Scots Landlords welcome £10m rent arrears grant scheme | LandlordZONE.

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End to Green Homes Grant scheme is ‘fiasco’ says leading landlord

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Landlords hoping to use their Green Homes Grant vouchers could be disappointed as some builders are warning they won’t be able to do the work in time to meet the scheme’s expiry deadline.

The government scrapped the scheme in March, just over six months after its launch, and vouchers are only valid for three months from the date they are issued – the last date being 30^th April – and need to be redeemed before then.

Nottingham landlord Tricia Urquhart tells LandlordZONE that despite holding vouchers to fit external wall insulation in her three Victorian properties, the work won’t be done because the builder can’t schedule it before October.

She says: “The scheme has been a complete fiasco and the chances of these houses making EPC C has just been slashed.

“In the same week as it was announced that a new oil drilling station is to go ahead off Shetland, with all the carbon emissions associated with that, it seems inconceivable that the government should close down a scheme aimed at reducing emissions in the PRS.”

Landlords can request an extension until 31st July and vouchers will be extended for 90 days or until 31st October, whichever is soonest.

Limited circumstances

Requests received after 31st July will only be granted in more limited circumstances – usually if work has started – although if they have a voucher for solid wall insulation (internal or external), park home insulation, air source heat pump, ground source heat pump, hybrid heat pump, or a biomass boiler issued after 30th April, they may still be granted an extension even if work hasn’t started.

In these circumstances, vouchers will be extended for 90 days or to 30th November, whichever is sooner.

The government says: “We recognise that occasionally, once work has started, circumstances may arise that are fully beyond your control. In such a situation please contact the scheme administrator as soon as possible to assess if a short extension until 30th November at the latest could be considered – subject to circumstances.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – End to Green Homes Grant scheme is ‘fiasco’ says leading landlord | LandlordZONE.

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BREAKING: Scots parliament approves controversial extension to eviction restrictions

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The Scottish government has extended its evictions ban in everything but name after rushing through its The Coronavirus (Extension and Expiry) (Scotland) bill, which has now passed into law.

As expected the temporary restrictions have been extended to 31 March 2022, with the potential to be extended until 30 September 2022. Reviews will be held every two months.

Prior to vote, landlord and letting agent groups had urged member to lobby their MSPs to prevent this happening.

But the SNP government included both the existing extended notice periods and also that discretionary grounds for possession within the extended Coronavirus bill.

The discretionary grounds include Section 33 notices, which will be for members of the first-tier tribunal to decide whether to grant an eviction order or not.

The extended notice periods that tenants have been enjoying remain in place, namely six months, three months or 28 days depending on the grounds being used.

Pre-action requirements before an eviction on the grounds of rent arrears remain in place.

Last resort

Letting agents and landlords must ensure they continue engaging with tenants and that eviction on this ground is a very last resort, the new legislation make clear.

Daryl McIntosh, Policy Manager for Propertymark (pictured), says: “The Scottish Government have to review the measures every two months and we will continue to provide case studies and evidence which highlight agents and landlords’ experiences in the sector, with a view to redressing the balance.”

As LandlordZONE reported earlier this week, the Scottish government is introducing a £10 million grant fund to support tenants who have fallen into rent arrears as a direct result of the pandemic, to run in parallel with its existing loan fund.

Read the legislation in full.

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LATEST: Tenant sues landlord for £400,000 over death of wife in ‘freezing’ house

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A landlord who tried unsuccessfully to mend a family’s boiler is being sued for leaving the house in an uninhabitable state and causing his tenant’s death.

Timothy McDonagh says his partner Kelly Naghten died after catching pneumonia because landlord Ali Bolat failed to make the necessary repairs to their home in Enfield (pictured).

He claims their Enfield property was freezing and plagued by walls covered in mould and puddles of rain on the floor. Shortly after Christmas 2015, the 32-year-old mother-of-four suffered a bout of flu which led to her death from pneumonia and sepsis.

McDonagh is suing Bolat for £400,000, who he blames for her death in January 2016. He told Central London County Court that Bolat bodged boiler fixes himself, meaning it would frequently cut out and leave them without heating or hot water.

Bolat vehemently denies the allegations and said McDonagh was exaggerating, as problems with the house were always fixed quickly.

McDonagh, 48, told the judge he considered Bolat to be a “cowboy”, claiming the property had been very drafty with gaps around the windows. On one occasion rain poured into the house and left puddles next to plug switches. Their complaints were eventually met with a threat of eviction, he added.

Amateurish

His barrister Nicholas Baldock said Bolat’s own attempts to fix the boiler were futile and amateurish. When he eventually had it inspected by tradesmen, numerous issues were identified and it was replaced in January 2016, The Sun newspaper reports.

However, Bolat’s barrister Michael Leemy denied that the landlord was in breach of any obligations because repairs were carried out within a reasonable time period. Bolat insisted he had never seen any damp in the house, while the electrics and boiler had been checked by professionals when he bought it.

The judgment is expected at a later date. 

Pic credit: Google Streetview

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Tenant sues landlord for £400,000 over death of wife in ‘freezing’ house | LandlordZONE.

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