‘Permitted Occupier’ status – new AST needed?

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Short scenario – Tenant is asking for a partner to move in. I won’t offer a joint tenancy as the incoming person has not been in a job long enough to warrant this (still in 6 month probation period) and even then she won’t be able to afford the full rent herself.

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Not enough proof of support for six-month notice periods in Wales, committee tells minister

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A Welsh cross-party Senedd committee has criticised the country’s housing minister Julie James for her amendment to the Renting Homes (Wales) Act 2016, a change that will extend the possession notice period in Wales to six months on a permanent basis.

The provisions of the Act, which will introduce many changes to the PRS, are not yet in force but will be brought in during Spring 2021, it is expected. First announced in February, the amendment to the bill has been heavily criticised by landlords.

The minister has argued that it gives tenants more time to get ready to leave a property after a landlord has decided to take possession via a ‘no fault’ Section 21 eviction.

But the Legislation, Justice and Constitution Committee has pointed out that James has not proved that the measure has widespread support in Wales, and that overall the Welsh government did not have enough solid data to prove its case.

“The need to expand the evidence base for the Welsh PRS is an NRLA campaign that the Association said should be addressed through a Welsh Housing Survey,” says the NRLA’s Welsh policy officer, Calum Davies (left).

The report adds: “While we accept that engaging with this particular sector may come with difficulties, we make a general point of principle that the Minister’s evidence-base is weakened by the informality of the data and it is not good practice to rely on such evidence as grounds for changing primary legislation.”

The housing minister has also been criticised for the messy way the rules have been changed, and warned that the judicial system will face increased workload as landlords deal with the complexities of the new legislation.

“We believe the Minister’s decision to seek to substantially amend an Act not yet in force via a subsequent Bill, brought forward four years after that principal legislation was enacted, is an irregular approach to legislating,” it says.

“The court system should not result in high costs being incurred and there must be an emphasis on the need for timely resolution. This is especially important because of the impact the Bill will have on a landlord’s right to access their own property.”

Read more about the legislation.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Not enough proof of support for six-month notice periods in Wales, committee tells minister | LandlordZONE.

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NRLA trashes Boris claim that renting is a second-rate home choice

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Boris Johnson has managed to belittle the private rented sector while launching a policy to introduce long-term fixed-rate 95% LTV mortgages for first-time buyers.

Speaking at the Conservative’s virtual national conference, the PM told the party faithful that the Government aimed to turn Generation Rent into Generation Buy.

“The disgraceful truth is that home ownership levels in this country have plummeted and many are forced to pay through the nose to rent a home they can’t truly love or make their own,” said Johnson.

Buying instinct

He said that while many people liked the flexibility that renting offered, for most people the “overwhelming instinct was to buy”, but that they couldn’t afford the mortgage or deposit. He added that this initiative – the biggest expansion of home ownership since the 1980s – should create two million more owner-occupiers.

“We will give power back to people – the fundamental, life-affirming power of home ownership. The power to decide what colour to paint your own front door.”

The National Residential Landlords Association says the PM is wrong to believe that tenants can’t turn the properties they live in into a home of their own and points to a previous survey which revealed that 63% of renters had redecorated their home.

It also showed that 52% had made significant changes to their gardens with the landlord’s permission.

Policy director Chris Norris (left) says landlords much prefer to have tenants settled long term in a home they feel comfortable in and want to look after.

He adds: “If the Government really wants to support homeownership it should consider changes to the tax system to support and encourage landlords considering leaving the market to sell to first-time buyers.

“Reports that ministers are considering an increase in capital gains tax would serve only to incentivise landlords to hold on to properties longer than they might otherwise have done.”

Read more: NRLA writes to Boris.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NRLA trashes Boris claim that renting is a second-rate home choice | LandlordZONE.

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National Landlord Investment Online Super-Show Thursday 8th October

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The first National Landlord Investment Online Super-Show opens the 8th October 2020 with the following Schedule:

9am – The Show opens with an introduction by LIS team

9.05am – David Smith, Economics Editor of the Sunday Times and feature writer of Property Notify will be providing you with an Economic review of the housing market and what the landscape is looking like for UK Landlord and Investors.

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IMMIGRATION BILL: Lords and MPs lock horns over ‘wrong’ online status checking service for landlords

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Peers have urged the Government to allow people to physically prove their settled status as part of the proposed EU Settlement Status legislation.

The House of Lords voted through an amendment to the Immigration and Social Security Co-ordination (EU Withdrawal) Bill which requires landlords to check tenants’ immigration status if they’re EEA and Swiss nationals – using a new online system.

Introduced by Liberal Democrat Lords spokesperson Lord Oates, it states that the Government should issue physical proof to those granted pre-settled or settled status, if asked.

He said: “[Landlords] may wonder at this discrimination between nationalities and, given that they face crippling fines and the possibility of imprisonment if they get things wrong, they may decide that in the absence of physical proof, it is safer to replicate the Government’s discrimination and not to employ, rent a property to or provide a service to an EEA national.”

Lord Horam (left) pointed out that the Australian Government had gone to an entirely digital system but allowed people to have a paper system at no cost for eight years, and to pay to have a paper system alongside the digital system for a further three years.

He added: “The Government are expecting this to happen by next July. The reality is that it will not.”

Home Department Minister Baroness Williams of Trafford insisted that if necessary, EEA citizens could show third parties their written confirmation of status, which includes details of the ‘view and prove’ service so the person checking their status could see that there was an online service where they could check the individual’s status.

She added that it also provided a telephone helpline for landlords and employers to provide guidance on conducting right-to-work and right-to-rent checks.

The Bill goes back to the Commons where it faces a Government majority.

Read more about recent Right to Rent developments.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – IMMIGRATION BILL: Lords and MPs lock horns over ‘wrong’ online status checking service for landlords | LandlordZONE.

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Shelter slams landlords for poor conditions within ‘too many’ rented properties

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Landlords have been heavily criticised by Shelter within a scathing report into the PRS in which it says over a third of rented homes are sub-standard.

Launched today, Shelter’s major report interviewed 5,177 tenants in the PRS last month and was conducted by YouGov.

It reveals that half said their home hasn’t made them feel safe during the pandemic, that 19% (or 1.6 million people) have been struggling to pay their rent and that 35% (3.6 million) live in poor conditions with electrical hazards, pests or damp.

The charity claims its research shows how badly ‘decent, affordable social homes’ are needed as too many private renters continue to spend the pandemic stuck in ‘poor-quality, expensive and overcrowded accommodation’.

It chief executive Polly Neate says: “Before a thundercloud of homelessness breaks over us, the Chancellor needs to be as swift and bold on housing as we’ve seen him be on jobs. 

“By turbocharging investment in social housing today, we can build ourselves out of this pandemic and lay the foundations of a better future.”

Shelter’s report calls for a rescue package of £12.2 billion over the next two years to fund an additional 50,000 new social homes.

Demonise

“It is important not to demonise landlords, many of whom have worked closely with their tenants during the pandemic and lockdown to reassure them about the security of their tenancy despite facing considerable financial uncertainty themselves,” says leading property management firm Ringley.

“The government cannot expect buy-to-let investors to subsidise renters indefinitely [who] are now facing higher loan repayments as loan repayment holidays did not extend the term but increased the cost.”

Read more stories about Shelter.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Shelter slams landlords for poor conditions within ‘too many’ rented properties | LandlordZONE.

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Licensing proposed for Loughborough during crisis!

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Selective Licensing id being proposed for Loughborough, and they ain’t even telling Landlords publicly. A mate of mine who is going to be affected by this has asked for all of you with properties in Loughborough to be aware.

Charnwood Borough Council are consulting on two licensing schemes

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EXCLUSIVE: Don’t let this happen to you, says landlord after losing £40,500 to guaranteed rent scheme

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A landlord is fighting to get his money back after two if his HMOs were left in an appalling state after a three-year contract with London-based RHP Properties went disastrously wrong.

Gulam Sumar handed over the two six-bedroom houses in Harrow to the Walthamstow company in early 2017, after he and his business partners spent £185,000 on renovations.

It agreed to pay them a monthly guaranteed rent but within months had fallen into arrears. If that wasn’t bad enough, neighbours at both properties were complaining about anti-social behaviour and Dr Sumar could see bins over-flowing and evident drug use going on.

He tells LandlordZONE: “They wouldn’t pay us on time or give us access to inspect the properties – and wouldn’t even answer our emails or phone calls. Last year they changed their name from RHP Services to RHP Lettings, but with the same staff.”

Using a two-year break clause, Dr Sumar served notice in August 2019, with the help of Landlord Action, but the process was disrupted by Covid earlier this year.

He was beginning to despair when a tenant from one of the properties called him to say he was the only legal person living there as the others were squatters.

“I rushed round to find stolen goods, credit cards and drug paraphernalia, so I called the police and Harrow Council and changed the locks to get forced possession,” he says. Not long afterwards, a similar situation occurred with the other HMO and he was able to do the same.

But the nightmare didn’t end there as, after taking stock of both properties, he could see the extent of the necessary repairs, so got builders’ quotes with estimates of £24,000 to bring them back up to standard.

RHP insisted it could do the work in three days – but only sent round a painter for four hours.

Dr Sumar is still owed £16,500 in rent and was forced to foot the repair bill himself. He’s written to the firm insisting that they pay up but is resigned to going to the small claims court with the hope of getting at least £10,000 in costs. He’s since discovered that there are a number of other landlords with similar experiences with RHP – and some have even sued the firm.

He adds: “It was a miserable experience and I’m glad it’s nearly over. Now I want to warn other people not to make the same mistake.”

LandlordZONE has contacted RHP owner Toki Khan for a comment.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Don’t let this happen to you, says landlord after losing £40,500 to guaranteed rent scheme | LandlordZONE.

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Ill woman turned down for property investment course refund turns to ombudsman for help

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A sick woman fighting to get £13,000 back from Touchstone Education has been told by the firm to take her case to an ombudsman.

The woman, who wants to remain anonymous, was told it was at deadlock with her and its latest communication reads: ‘After reviewing all the evidence I will not be upholding your complaint on this occasion. If you remain unsatisfied the next step would be for you to contact the complaints ombudsman.’

She tells LandlordZONE: “I will be going to the ombudsman but as owner Paul Smith has already claimed that the ombudsman has never had it find against them, I have limited hopes – despite the strength of my claims.” 

The woman first paid £1,000 for a Touchstone Education online course and then another £12,000 after attending a very persuasive ‘free course’ last year – which was to pay for about seven courses and a monthly meeting.

But after being signed off sick for six months with complex physical and psychological problems, her GP agreed that attending a course could seriously affect her health and wrote to the company supporting her claim.

She says she was left feeling violated when the firm asked to look at her medical records but then refused to refund her.

Compassion

Landlord leader Ben Beadle recently joined the chorus of calls urging Touchstone Education to show compassion and provide a refund.

She adds: “In their marketing, they continually talk about business values and ethics, but I have yet to see any evidence of these. Mr Smith, are you going to continue your war of attrition in the hope I give up, or are you going to do the right thing and refund me so that I can use my energy towards getting well again?”

Paul Smith has told LandlordZONE that he can’t comment on an individual case due to GDPR rules, but that when people ask for a refund it’s better to encourage them to finish their course.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Ill woman turned down for property investment course refund turns to ombudsman for help | LandlordZONE.

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Half of student landlords to look elsewhere for tenants as campus exodus continues

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More than half of student landlords would consider opting out of the student market if they have the same problems as they did during the last academic year.

After a rocky start to the autumn term, with students late in confirming accommodation and having to lockdown, the National Residential Landlords Association (NRLA) quarterly report found that 56% might soon look elsewhere for an income.

However, two-thirds say they wouldn’t want to switch to renting to those on Local Housing Allowance, usually for fear of letting to claimants (43%) and the drop in income being too great (31%).

The pandemic hit student landlords’ revenue stream last term as 20% had requests for rent reductions while 19% saw students leaving their properties early.

Rent reductions

The survey’s responses from 243 landlords shows that most granted rent reductions when asked (61%) but that they tended not to grant students rent holidays, with 60% turning down requests.

When the survey was completed in June, almost a third of student landlords expected to lose more than 20% of their business in the next 12 months and a quarter reported that they either had no students signed up or had cancelled upcoming tenancies for the next academic year. Most landlords (65%) reported no problems with lets for this academic year.

The NRLA says: “How universities respond to new measures could affect student landlords and their business at a time when they are hoping to bounce back from coronavirus and potentially disrupt the end of the 2019-20 academic year. Flexibility is required to ensure the supply of accommodation is maintained and sustained.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Half of student landlords to look elsewhere for tenants as campus exodus continues | LandlordZONE.

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