QE increased by £150 billion and Bank Base Rate held at 0.1%

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The Bank of England Monetary Policy Committee (MPC) has voted unanimously to maintain Bank Base Rate at 0.1% and to increase the stock of purchased UK government bonds by an additional £150 billion, financed by the issuance of central bank reserves (Quantitative Easing)

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Boom in number of over 55s within rental population since 2010, reveals Paragon

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An increase in later-life divorces, poorer pension returns and men living longer have all led to a boom in older renters, nearly half of whom live alone.

The over 55s now make up 16% of privately rented households in England (576,000), up from 11% in 2010, according to a survey of 2,000 tenants by Paragon Bank.

Its new report – The Growth of Later Life Tenants – found this age group are much more likely to live alone – 48% compared with 23% of under 55s – while they also tend to live in the property for longer and are much more likely to be men, accounting for 62% of tenants.

Special requirements

It believes that as population forecasts show a big jump in older people, landlords need to be prepared to cater for their requirements.

Managing director of mortgages, Richard Rowntree (left), says this could include allowing older tenants to make amendments to the property such as decorating or being more flexible about allowing pets, as 36% of dog owners are over 55.

He adds: “Landlords will need to consider longer tenancy agreements, the location of their property and any adjustments the property may need for later life tenants.”

Paragon’s research also reveals that older tenants are generally happier in private rented accommodation than other age groups; 68% of over 55s said renting suited their needs or they enjoyed renting, compared with 49% in the under 55 group, while 63% were pleased they didn’t have to worry about repairs.

However, it seems that it’s often circumstances that determines their choice as when asked about the reasons for renting, 39% said they didn’t have a mortgage deposit.

Read the report in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Boom in number of over 55s within rental population since 2010, reveals Paragon | LandlordZONE.

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Danny Butcher Foundation supporter raises funds and calls for regulation of ‘wealth creation’ gurus

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A former model turned property developer has taken on a gruelling body transformation challenge to raise money for the Danny Butcher Foundation.

Ed Akay, director at Devon-based property development company Gold Lake Developments, is dieting and working out to get his body fat ratio down to 10%.

Ed, who hosts the Torbay Property Meet, is confident that he can recreate the physique he had when he modelled in his twenties and hopes to smash his £200 target by mid-December.

Danny Butcher committed suicide in 2019 after he became depressed while trying to clear his debts run up on a £13,000 Property Investors course.

The foundation was set up in his name to raise money for homeless people, mental health charities and military veterans – all favourite causes of the former soldier, who Ed believes was a hero, prepared to die for his country.

Long overdue

He tells LandlordZONE: “Danny’s suicide was both tragic and heart-breaking. I hope that the foundation celebrates his life by helping the causes that Danny believed in. 

“I also hope that one of Danny’s long-term legacies will be the regulation of the ‘wealth creation’ industry – something that is long overdue.”

Danny’s family started an online petition calling for regulation of the wider property training sector, while other disgruntled property training course attendees are gearing up to bring a group action against Samuel Leeds. Danny’s sister Carrie adds:

“We are so grateful to Ed for helping us raise money for the Danny Butcher foundation. Ed and many others have been a great source of support this past year and this is a great tribute in Danny’s name.”

To donate to Ed: https://www.facebook.com/donate/3610620125650663/10223114950279379/

Read more about Danny Butcher.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Danny Butcher Foundation supporter raises funds and calls for regulation of ‘wealth creation’ gurus | LandlordZONE.

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Residential and commercial landlord giant reveals surprising arrears results

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Midlands-based Real Estate Investors (REI) has delivered an upbeat trading update, reporting that more of its residential and commercial tenants are now paying rent.

The real estate investment trust, which has a large property portfolio across all sectors, says it’s also confident of recovering outstanding rents, or at least being able to reach an agreed solution with those tenants who still need to pay up. 

REI’s rent collection for the March quarter is now 93%, up from 90% in September and 81% collected in June.

Meanwhile, June quarter rent collection has risen to 90%, up from 86% in September and 81% in July.

September quarter (September to December) rent collection is already 89.92% and REI is confident that it will get unpaid rents from tenants as they resume normal trading.

But it adds that several its tenants who are able to pay are still taking full advantage of Government restrictions on landlords and refusing to, although some of them have now agreed settlement arrangements.

Better trading conditions have boosted the fortunes of REI’s retail tenants while its office portfolio, which is almost entirely out of town, has benefited from the trend for companies looking for safe and convenient workplaces for their employees where they don’t have to use public transport or make city centre commutes. 

Chief executive Paul Bassi (pictured, above) says operating a diversified portfolio has helped create robust levels of occupancy – 93% across the portfolio – and prompted rent collection.

He says: “We also remain confident that occupier demand for our assets will continue and we are mindful that the current environment may create opportunistic sales and acquisitions for the group.”

Read Tom Entwistle’s guide to quarter days.
Guide: How to deal with rent arrears.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Residential and commercial landlord giant reveals surprising arrears results | LandlordZONE.

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Legal Issues: Frustration of Contract

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What is frustration in relation to Contracts?

Frustration occurs when an unforeseen event occurs after a contract is agreed between the parties and entered into. Subsequently an unforeseen event, one which is not incorporated into the contract, and one which is outside the control of the parties, makes the contract either: physically or commercially impossible to perform or continue with.

It would not be enough that performance is made more costly or more difficult, the frustrating event or change in circumstance needs to be so fundamental to the agreement and completely beyond what was contemplated by the parties when they entered into the contract.

However, frustration of a contract under English law can be difficult to establish. If it can be established then one of the parties is able to walk away from the contract with no further ties, but complications arise when the contract contains a force majeure clause. This clause however must be specific and relevant to the particular ‘event’.

Before considering a challenge, a party to a contract should read the small print to determine if:

• there is a force majeure clause which covers the event
• if there is no force majeure clause, whether the event was truly unforeseeable
• if the event made the obligation to perform impossible, illegal or radically different
• If it would be impossible to continue under re-negotiated terms.

Any court, when considering a challenge of frustration, will consider the specific contract terms, the full background facts, the status and abilities of the parties and their ability to perform the contract in light of the event changes.

It is difficult to define what is truly unforeseeable, for example in the case of the Covid pandemic it might be argued that such an even would be foreseeable, but what may truly frustrate a contract could be the actions of government, bringing far-reaching restrictions which would render proceeding illegal.

Where money has been paid or pre-paid the 1943 Law Reform (Frustrated Contracts) Act allows for the recovery of sums under contracts when in can be shown that it has been frustrated.

Example Case

An example of a frustration case, one which failed,would be Gold Group Properties Limited v BDW Trading Limited (formerly known as Barratt Homes Limited) (2010)

In this case a dispute arose between the parties because of a change in the circumstances relating to an agreement for a substantial residential development where the properties were to be sold, on long leases.

Gold Group Properties, the claimant, was the freeholder and the defendant Barratt’s was to build out the development, sharing the sales revenue.

However, with a sharp fall in the property market it transpired that the minimum sale prices that had been agreed in the contract were no longer attainable. Barratt refused to begin the building works.

Gold Group applied to the court for summary judgment to be entered in their favour for damages, due to Barratt’s refusal to commence the building works.

In its defence, Barratt argued that the agreed minimum sale prices operated as conditions to the contract and therefore they were not obliged to start works and the contract was frustrated. Gold Group argued that the minimum sale prices were only included to guarantee Gold’s recovery on sales, not to protect Barratt, and that Barratt’s failure to develop the property amounted to breach of contract.

Did the sharp fall in projected sale proceeds frustrate the contract? That was the issue the judge had to decide.

The judge Coulson LJ found that the contract was not frustrated. First off, the change in the economic climate did not constitute an unforeseen event. The contract had been drafted with the risk of a possible fall in the market in mind. It provided a sufficient mechanism for the minimum

sale prices to be renegotiated or determined by an expert in the absence of agreement between the parties.

The decision in this case shows that the court will not allow claims to succeed based on frustration due to changes in economic conditions alone. The minimum prices scheduled were held not to be a condition precedent to the carrying out by Barratt of the building works themselves.

There was no express term to that effect anywhere in the contract. The possibility that prices would drop was within the anticipation of the parties, and not having made provision for it, they undertook the associated commercial risk.

Conclusion

The parties to a contact, whether consciously or not, accept there is a risk from future events. Where a contract is frustrated one party would be better off walking away from their obligations, whereas the other would be worse off if the deal is not made legally binding by the contract.

To achieve judgement, it is not just an unforeseen event that qualifies to frustrate a contract; a change of circumstances must be so dramatic that the new circumstances must be completely outside of the contemplation of the parties at the time the contract was made.

To achieve a just and equitable result between the parties “frustration” recognises that events, significant changes in circumstances, can and do interfere with contractual performance, warranting the cancellation of a contract.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Legal Issues: Frustration of Contract | LandlordZONE.

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Any conveyancer accepting electronic signatures?

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Does anyone know of a 21st century conveyancer who will accept electronic signatures & ID?

We have an inter-family sale agreed but one member of the family lives aboard which is delaying the process as it takes 4 weeks for post to arrive

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Retiree and ‘Mature’ renters fastest growing tenant segment of PRS

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Retiree renters and those in upper-middle age category are the fastest growing tenant groups in the private rented sector (PRS), analysis from Paragon Bank has found.

 Paragon’s new report ‘The Growth of Later Life Tenants’, released today, showed that the number of English households in the 55-64 year old age category in the PRS with an Assured Tenancy has risen by 118% since the turn of the last decade

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Short lets landlords give 1,000 properties to new scheme for NHS staff and… MPs!?

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Health workers and Government staff can get discounted short-term stays near their workplace on a new online platform designed to support their fight against COVID-19.

The UK Short Term Accommodation Association (STAA) has replaced its NHS Homes initiative with trustedstays.co.uk, a website for Government and NHS to book discounted accommodation for staff.

At least 1,000 properties in London, Manchester and Edinburgh are now available for bookings through its 11 different short-term rental partners, with a national roll-out planned for later this month.

The STAA’s initial NHS Homes scheme, which launched in March, involved more than 30 property companies donating accommodation worth more than £20m, providing 10,000 nights’ free accommodation.

Chair Merilee Karr (left) says it illustrated that the authorities needed continued support, particularly as the scheme saw a spike in demand in recent weeks as infection rates have risen.

“This offer isn’t just confined to NHS workers,” says Karr.

“We can also support the Government to accommodate people who need to shelter from COVID-19 for health reasons and for other key workers such as MPs, who have to be at their place of work, need flexible accommodation and prefer to stay in a professionally managed home setting.

“By staying in safe and clean accommodation, key workers won’t have the worry of a daily commute on public transport and will be able to protect vulnerable family members by staying in a separate, self-contained property.”

TrustedStays is only open to STAA members who have accreditation from Quality in Tourism’s Safe, Clean and Legal scheme, while all member companies follow the single set of industry cleaning and safety protocols introduced in June.

Read more about landlord initiatives to offer frontline staff accommodation.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Short lets landlords give 1,000 properties to new scheme for NHS staff and… MPs!? | LandlordZONE.

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Not again! Labour and Shelter call for another evictions ban as new lockdown looms

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Charities and opposition politicians are putting fresh pressure on the Government to bring back its eviction ban for the entire winter.

As the country starts the next national lockdown, they’re hoping the halt on evictions in Tier 2 and Tier 3 Covid restriction areas might be extended to the rest of the UK.

Labour’s shadow housing secretary Thangam Debbonaire (above, left) and Shelter chief executive Polly Neate (above, right) have both called on the Government to urgently reinstate the ban.

Neate says: “With England set to enter another national lockdown and Covid cases on the rise, the Government needs to move again to make sure no-one is forced out of their home this winter by banning evictions nationwide. It is simply too dangerous to allow more people to become homeless now.”

Refusing to budget

However, so far, the Government is refusing to budge. A spokesperson at The Ministry of Housing, Communities and Local Government told LandlordZONE that it’s already taken unprecedented measures to protect tenants during the pandemic and that these are under constant review.

“Landlords must give six months’ notice for all but the most serious eviction cases – such as those involving domestic abuse – and we’ve taken action to prevent people getting into financial hardship by helping businesses to pay salaries, extending the furlough scheme, and boosting the welfare safety net by over £9 billion,” they said.

Along with the Christmas evictions moratorium already announced by the Government last month, with courts halting proceedings in Tier 2 and 3 areas, landlords there now have to wait until the New Year before they can proceed.

As LandlordZONE recently reported, tenants outside Tier 2 and 3 areas can halt evictions relatively easily by claiming – but not having to prove – that they have Covid.

See Shelter’s advice to tenants on evictions during Covid.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Not again! Labour and Shelter call for another evictions ban as new lockdown looms | LandlordZONE.

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Landlord’s campaign to dramatically reduce eviction notice period ‘unhelpful during Covid’ say experts

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Two leading eviction experts have rejected recent calls by landlord and property educator Ranjan Bhattacharya to reduce the evictions notice period to 14 days.

His controversial claim, which was made during a YouTube video for his 27,600 subscribers four weeks ago, asked fellow landlords to sign a petition calling on the government to reduce the notice period.

Bhattacharya argues that the existing system – even when the current restrictions are discounted – is unfair to landlords, claiming it can take up to a year in normal times to evict a tenant.

But Tim Frome, legal director at Landlord Action, and John Stewart of the NRLA have rejected this, point out that it is both unlikely to happen politically and also paints landlords in a bad light, however well intentioned.

“I’m afraid that this kind of campaign is not helpful during the Covid crisis and it’s unlikely to have legs when the pandemic is over,” says Stewart (left).

Frome agreed, saying that in normal times two months is a reasonable period of time to give notice to a tenant before seeking to take action in the courts.

“You’ve got to remember that these are people’s homes even though, of course, there has to be a reasonable time period to get the property back if a tenant breaches the terms of their tenancy, and I think two months’ notice strikes that balance.”

The pair were talking during a live webinar at today’s National Landlord Investment Show, which normally takes place at Olympia but this year is online only.

Stewart also revealed during the webinar that the NRLA has been lobbying the government to give landlords who face unreasonable tenants who change locks, ignore communications and fail to pay their rent to be given an easier access to evictions.

“This needs to transferred to the Section 8 notice process once Section 21 is abolished,” he said.

Read our story about Bhattacharya’s campaign.
Visit Landlord Action or NRLA.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord’s campaign to dramatically reduce eviction notice period ‘unhelpful during Covid’ say experts | LandlordZONE.

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