Home Office extends Covid Right to Right rules deadline to end of August

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The government has extended the period during which the existing and more relaxed immigration Right to Rent regulations can be followed by two months.

This is the third extension and reflects the recent proposed delay to the Covid ‘freedom day’ in England by Boris Johnson last week to the 19^th July.

The period during which the Right to Rent temporary adjusted checking processes apply was expected to end on 16^th May but was then extended until 21st June and now 31^st August.

This means until then landlords will still be able to do online video identity checks and accept digital/scanned copies of Right to Rent documentation.

Then, from 1^st September onwards landlords and letting agents will revert to face-to-face and physical document checks as set out in legislation and guidance.

The Home Office says this will ensure both groups will have sufficient notice to put measures in place to enable face-to-face document checks.

“You do not need to carry out retrospective checks on those who had a COVID-19 adjusted check between 30 March 2020 and 31 August 2021,” the Home Office statement says.

“This reflects the length of time the adjusted checks have been in place and supports landlords during this difficult time.

“You will maintain a defence against a civil penalty if the check you have undertaken during this period was done in the prescribed manner or as set out in the COVID-19 adjusted checks guidance.”

Read the full Right to Rent regulations as they currently stand.

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The accounts and management are a joke?

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I have held the lease on my first floor flat for the past 21 years, extending it in 2013. The Freeholder owns and lets out the ground floor flat. I have struggled with the Freeholders approach to managing my Lease.

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New property valuation tech is ‘most accurate’ for buy-to-let – claim

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Entrepreneur Nitin Aggarwal has launched what is claimed to be the most accurate way to value properties online despite hot competition from other providers including Zoopla and Rightmove.

Aggarwal has launched what’s called an Automatic Valuation Model (AVM) platform which claims to be more accurate than the current available digital technology to value property.

The service is part of his Property Deals Insight website and can be used for free for two weeks but thereafter is a paid-for service.

It’s part of a package that ranges from per square metre valuations to the latest off-market deals and analysis, top ROI properties, local area analysis and more.

“Years ago I was amazed to find that there was no standard way of knowing a property’s value, and as I dealt with property at the time, I really needed a 100% solution to cover the knowledge gap,” he says.

“In the end after extensive analysis and development I built a solution.”

Human touch

Aggarwal is part of a sector that is chasing the most accurate AVM and most, including those offered by Zoopla’s data firm Hometrack offer value ranges but only really work on ‘cookie cutter’ properties or if more information is provided by a human.

Property Deals Insight claims to be going the extra mile and says his AVM is ‘more reliable than humans’ when judging a property’s value.

“Property investors will also find it to be an essential tool, a ‘property compass’ giving detailed intel on property yields, index properties by measurement and comparables – functionality that just does not exist elsewhere on the market.”

Read more about online property valuations.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – New property valuation tech is ‘most accurate’ for buy-to-let – claim | LandlordZONE.

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Section 24 Tax Planning

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Solutions for landlords with a Section 24 tax problem.

First though, let’s take a look at what Section 24 tax is and why it’s so unfair.

The following Case Study explains why so many property rental business owners are considering incorporation

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BREAKING: Wales extends period during which landlords must give six months’ notice to evict

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The Welsh government has used its existing emergency Coronavirus powers to extend the period during which landlords must give six months’ notice before beginning evictions proceedings by another three months.

Existing legislation voted in by the Welsh Senedd in March last year was due to expire at the end of this month.

Housing minister Julie James (pictured, above) said in a statement: “The purpose of this alteration is to ensure that during the on-going public emergency, and in the light of the continued uncertainty caused by the emergence of new virus variants, landlords continue to give increased notice to tenants facing eviction from rented properties before landlords can issue proceedings for possession.

“The effect will to be to delay evictions meaning that: fewer people will face eviction into homelessness at a time when local authorities are less able to respond to these situations.”

Ben Beadle Chief Executive, NRLA (pictured) commented: “This announcement reinforces the urgent need for the Welsh Government to take rapid action to address the mounting rent arrears crisis unfolding across Wales.

“The expansion of long notice periods will only worsen this and prolong uncertainty for all involved.

“Landlords in Wales cannot continue to wait an average of 15 months to regain repossession whilst trying to deal with non-payment and anti-social behaviour making lives miserable.

“The Welsh Government must end the emergency pandemic measures as soon as possible if these businesses are to survive.

“A failure to proactively address the rent debt crisis will mean devastating long-term consequences for the individuals concerned and their credit scores – and preclude renters from accessing private sector properties for years to come, placing huge strain on local authorities to house people.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Wales extends period during which landlords must give six months’ notice to evict | LandlordZONE.

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PRS braces for end to 14-month long evictions ban

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On 20^th March 2020 LandlordZONE exclusively broke the news that the first county courts were moving to suspend evictions.

Reel forward 14 months and that ban is now due to end on Tuesday when bailiffs will once again be able to execute possession warrants and the courts system will restart in earnest.

But it’s not going to be that simple. For technical reasons most evictions will not restart for another two weeks after that and landlords will still have to give four months’ notice of an eviction, down from six.

Nevertheless, for the many landlords facing both severe financial problems as they have waited to evict tenants, there is light at the end of the tunnel – after several false starts.

Sherrelle Collman, MD of Caridon Landlord Solutions (pictured), says: “This is good news for landlords, particularly those who have cases trapped in the court system and therefore have been many months without rental income. 

“However, landlords must appreciate there is a significant backlog which cannot be cleared overnight.

“We also acknowledge that this change will be concerning for many tenants, but the ban on evictions had to come to an end at some point, just as lockdown had to and furlough will.”

Shelter says the government must take urgent action to protect renters against the imminent threat of eviction and homelessness with a package of emergency financial aid.

But to protect renters long-term, Shelter says the government must address the structural failings of the private rental system through its forthcoming renting reform measures.

Nowhere to go

Polly Neate, chief executive of Shelter (pictured), says: “The lifting of the eviction ban signals the beginning of the end for many renters facing homelessness. Thousands of people will wake up on the 1st of June knowing they’ll soon be kicked out of their home, with nowhere to go.”

Her comments are echoed by the Joseph Rowntree Federation, which is calling for a targeted package of grants to support renters in arrears, administered through the existing Discretionary Housing Payment (DHP) system.

“The £180m currently available through DHPs this year is nowhere near sufficient to support the 450,000 renters in arrears,” it says.

“A boost to DHP payments, together with improved guidance and ring-fenced funding for arrears, would be sufficient to re-set the housing market and enable renters to recover economically at pace with the rest of the country.”

Another pressing issue the government just tackle is the backlog of some 11,000 possession cases that must now be actioned by county courts.

Court caseload

“We have a large number of cases at Landlord Action in courts all across England and Wales that have been on hold while our landlords have had to wait for bailiffs to be able to start working again,” says its Legal Director Tim Frome (pictured).

“Due to the volumes of cases to deal with it is likely that cases in the city courts are likely to be more delayed than those in rural areas.

“We will know very soon how long the different courts are going to take in scheduling the bailiff appointments.  

“It must be noted that dealing with the backlog will be in addition to the bailiffs being instructed on new cases that are progressing through the courts. The new processes put in place last year have delayed the length of time it takes to complete all possession cases.”

Easing

Timothy Douglas, (pictured) Policy and Campaigns Manager, at Propertymark, says: “Since January bailiffs have been able to act if a possession order confirms the tenant was in six months of rent arrears or it was granted on anti-social behaviour grounds.

“The easing of restrictions today will be welcomed by many in the private rented sector, particularly by those landlords who have been personally affected by the pandemic and have been unable to regain possession of their property.

“The UK Government must not underestimate the support that letting agents have provided to landlords and tenants throughout the pandemic. This support has been crucial in helping to sustain tenancies and must be reflected in future decision making.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – PRS braces for end to 14-month long evictions ban | LandlordZONE.

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LATEST: Landlords challenge York licensing scheme as ‘unlawful and irrational’

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Landlords are threatening to take City of York Council to the High Court over its plans to introduce additional licensing for smaller HMOs.

York Residential Landlords Association claims plans to extend the current scheme to include all smaller HMOs with less than five occupants in areas of the city where there are high levels of shared housing, are unlawful and irrational.

The National Residential Landlords Association legal counsel, David Smith (pictured), has written to the council on behalf of the York group explaining that its members are deeply concerned.

They claim it is unlikely to meet the requirements of a lawful consultation, that the accompanying documents fail to make a clearly evidenced case for the scheme to be rolled out, and that parts of the proposed scheme are unlawful.

Smith tells LandlordZONE: “The evidence to support the licensing process is very poor and shows very little correlation between HMO density and the issues of noise, anti-social behaviour and rubbish.

“In fact, there is no evidence which links those issues to rental property at all and the council itself seems to suggest that it may be more closely linked to the normal night and business life of the city centre.”

He adds that if the authority tries to proceed on the basis of this current flawed evidence base and consultation then it’s likely York landlords will have a strong case to say that this is unlawful.

The council’s legal team is currently considering the letter. In its consultation document, it says York has about 2,000 HMOs occupied by less than five occupants and adds: “We know from experience that there will be a small, and probably vocal, minority of landlords who will never see the overall value of additional licensing of HMOs. They take an essentially narrow, self-interested view.”

The consultation at york.gov.uk/HMOConsultation ends on 27th June.

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HMO vs Single Let – Which Is Best?

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Property Investors ponder over whether HMO or Single Let is the best strategy for Buy To Let?

The answer may surprise you!

Please click on the video below:

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210,000 tenants may face difficulties post Covid arrears

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Thousands of private renters who have built arrears during the pandemic face problems finding an alternative home because of damage to their credit scores according to a new survey.

With the Government refusing to support tenants and landlords in tackling COVID related arrears

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NRLA warns of looming referencing crisis as Covid arrears taint credit scores

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Thousands of tenants in rent arrears will struggle to find future homes because of damaged credit scores caused by legal action, according to the National Residential Landlords Association (NRLA).

Ahead of emergency restrictions easing on 1^st June, its new survey of more than 2,000 private renters in England and Wales shows that 7% have built up arrears since the first lockdown in March 2020.

A quarter of them report that their landlord has attempted to reclaim these by seeking a court order which, if successful, damage a tenant’s credit score and make it harder to access new housing.

Difficulties

With the government refusing to support tenants and landlords in tackling COVID-related arrears, the research finds that about 210,000 tenants may face severe difficulties in getting landlords to let to them in future. 

The data, compiled by research consultancy Dynata, finds that the average amount of rent owed during the pandemic is now almost £900.

The figures also show that more than 80% of renters now in arrears weren’t behind on their rent payments when the pandemic began, while 30% of them now owe £1,000 or more. Most don’t qualify for emergency housing support from councils to help those receiving benefits.

Ben Beadle, NRLA chief executive, says that without urgent help, many tenants face the prospect of losing their home needlessly as landlords struggle to shoulder the cost of arrears.

He adds: “The government needs to develop a financial package which ensures that benefits cover the rents of those in receipt of them. For those who do not qualify for benefit support, an interest-free, government guaranteed tenant hardship loan should be established, similar to those in Wales and Scotland.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NRLA warns of looming referencing crisis as Covid arrears taint credit scores | LandlordZONE.

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