LATEST: Northern Ireland evictions ban extension starts after three-week wait

admin    Uncategorized     agents

The Northern Ireland Assembly has passed its new eviction ban legislation – three weeks after first announcing its intention to bring in the six-month extension.

Landlords will have to give tenants a 12-week notice to quit before seeking a court order to begin proceedings, until 31st March 2021.

This applies to all tenancies, irrespective of the duration; for tenancies of less than five years the period has been increased by eight weeks, for those between five and 10 years it’s been increased by four weeks and for tenancies of more than 10 years, the notice to quit period remains the same.

ARLA Propertymark’s Daryl McIntosh, strategic development manager for Scotland and Northern Ireland, says: “Extending the ‘notice to quit’ periods to help prevent or reduce significant numbers of households becoming homeless at a time of national crisis, while keeping a fair balance for landlords being able to get return of their property, is a welcome and pragmatic approach by the Department for Communities.”

The emergency period, put in place back in April, had been due to end on 30th September but the Assembly announced the change on 19^th August, in line with England and Scotland. It plans to review the new date in January.

Communities Minister Carál Ní Chuilín says landlords shouldn’t start or continue possession proceedings without a very good reason to do so. “It is essential that we work together during these uncertain times to keep each other safe.”

She adds that both landlords and tenants can get specialist help and advice from the department-funded Housing Rights which can work together with them to resolve disputes.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Northern Ireland evictions ban extension starts after three-week wait | LandlordZONE.

View Full Article: LATEST: Northern Ireland evictions ban extension starts after three-week wait

Radical UK planning reforms could benefit property investors and landlords

admin    Uncategorized     agents

Prime minister Boris Johnson who has described the existing planning system as a “relic” that’s “outdated and ineffective” says the new proposals are “unlike anything we have seen since the second world war”.

In a report published today titled Planning for the Future, the government details plans for upcoming changes to the planning system in England.

The Planning for the Future report and a consultation process which closes on the 1^st of October proposes major reforms of the English planning system to “streamline and modernise the planning process, bring a new focus to design and sustainability, improve the system of developer contributions to infrastructure, and ensure more land is available for development where it is needed.”

The changes will be of concern to anyone involved in converting, building and developing properties in England and promise to remove some of the existing planning process bureaucracy to speed up the process in the future.

Plans were already in train to expand permitted development rights announced recently by Housing minister Robert Jenrick, but the Royal Institute of British Architects (RIBA) is less than impressed with this branding these proposals “a disgrace”.

Doubtless the government puts forward these proposals in its report with the best of intentions for the planning system in England, when Johnson says, “The whole thing is beginning to crumble and the time has come to do what too many have for too long lacked the courage to do – tear it down and start again.” However there is likely to be strong opposition from many stakeholders, politicians and the general public before any changes can be agreed and set into firm legislation.

Briefly, the proposals include automatic approval for designated areas and the following points to be incorporated:

• The redrawing local plans produced by the Local Planning Authority (LPA) to categorise land into only one of these three categories: growth, renewal or protected.
• Planning to be “automatically secured” for areas categorised for growth. Some developments would be allowed in renewal areas but restricted in protected zones.
• Local authorities to be bound by a new national requirement for the number of new homes to be built in their areas.
• The planning approval process to be overhauled and sped-up so that projects get through in under 30 months or be sanctioned.
• A “fast-track for beauty” process to grant automatic permits for “proposals for high-quality developments where they reflect local character and preferences”.
• The “Building Better, Building Beautiful” developments that comply with local design codes to be guaranteed faster planning permission.
• “Pattern books” and style guides for “popular and replicable designs” to be used for permitted developments and schemes in land designated for renewal.
• Section 106 payments (obligations on developers to contribute to local amenities and improvements as part of planning approval agreements) to be replaced by an infrastructure levy.
• There would be discounts for developers building affordable homes.
• Local authorities would be allowed to borrow money against their infrastructure levy revenue to fund their projects.

A major thrust of the report calls for greater use to be made of data and digital technology by local authorities were local residents can view and respond to maps and visualisations of upcoming development proposals online. From there, decision-making should be faster and more certain, within firm deadlines, says the report.

The RIBA has highlighted its concerns about the proposed changes, calling for “urgent reconsideration” of proposals to deregulate planning. “Deregulation is not the way to bring about new homes,” said RIBA president Alan Jones.

Want to know more about these planning proposals and the likely outcomes for property investors? See details of the upcoming Planning Masterclass Webinar here Property Investor News – https://property-investor-news.com – by experts Richard Bower (Editor) and David Kemp (planning specialist)

Open consultation – Planning for the Future

Changes to the current planning system

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Radical UK planning reforms could benefit property investors and landlords | LandlordZONE.

View Full Article: Radical UK planning reforms could benefit property investors and landlords

Mortgage lender returns to holiday lets after ‘tsunami’ of landlord applications forced it to withdraw

admin    Uncategorized     agents

Another major mortgage lender has re-joined the holiday let market after it was swamped by demand earlier this summer.

Ipswich Building Society (IBS) says it received so many applications from landlords looking to capitalise on the staycation boom in July that it was forced it to withdraw products.

It’s now decided the time is right to introduce its holiday let range again, along with its standard residential and buy to let ranges, which includes residential deals at 85% LTV, as well as reinstating lending on properties worth more than £1m.

CEO Richard Norrington says: “We’ve been keeping a keen eye on the market and taken careful consideration over the appropriate time to re-enter.

Service standards

“It is important we introduce and maintain a suitable range of products which enable us to uphold our service standards.”

IBS holiday let mortgages are available at 80% LTV, with a minimum loan of £75,000, a maximum loan of £500,000, an application fee of £199 and a completion fee of £950.

Its two-year fixed rate at 3.25 % is fixed until 31stDecember 2022, while its two-year discount rate at SVR (currently 5.24%) minus 2.25%, gives a current pay rate of 2.99% for two years from date of completion.

The five-year fixed rate at 3.75% is fixed for five years from date of completion.

The number of holiday lets mortgage products continues to rise, according to Moneyfacts, which counted 74 in August from 14 providers – up from 60 products on offer in July.

Read more about the staycation buy-to-let boom.

Visit IBS.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Mortgage lender returns to holiday lets after ‘tsunami’ of landlord applications forced it to withdraw | LandlordZONE.

View Full Article: Mortgage lender returns to holiday lets after ‘tsunami’ of landlord applications forced it to withdraw

YouGov polling indicates 22% of landlords have lost rental income during pandemic

admin    Uncategorized     agents

22% of private landlords with properties in England surveyed have lost rental income as a result of COVID-19 according to new polling.

The research, conducted online by YouGov for the National Residential Landlords Association, found that whilst 19% of those questioned had lost up to half of their usual rental income as a result of COVID-19

The post YouGov polling indicates 22% of landlords have lost rental income during pandemic appeared first on Property118.

View Full Article: YouGov polling indicates 22% of landlords have lost rental income during pandemic

£437 million – the Covid cost so far for England’s landlords, reveals YouGov poll

admin    Uncategorized     agents

An online poll of over 1,000 landlords with properties in England has found that 22% have lost rental income as a result of Covid, revealing the mounting costs for them of banning evictions and the economic turmoil created by the pandemic.

The poll, conducted on behalf of the NRLA, also found that 19% of landlords had lost up to half of their income, while three percent had lost more than half – losing on average between £751 and £1,000 in rent.

This suggests that across the sector total losses are running at between £328 million and £437 million. As a consequence of this, 7% of the landlords polled said they would sell off their properties over the next 12 months and 9% were planning to exit the buy-to-let market altogether.

Living memory

The research also reveals the likely consequences of the current six-month evictions ban, which is the longest in living memory.

The NRLA says this includes reducing supply to the market and also leaving many smaller landlords in significant financial peril; the survey revealed that 61% of those polled had just one property and 34% relied on their property investment for an income.

Ahead of the courts beginning to hear possession cases again on 20^th September, the NRLA is calling for an urgent financial package from the Government to pay off COVID related rent arrears and sustain tenancies, as the Welsh and Scottish governments have done.

“Where COVID-19 has caused difficulties for tenants, the vast majority of landlords have reached agreements with them to avoid problems,” says Ben Beadle, Chief Executie of the NRLA (right).

“That said, most landlords are not property tycoons and cannot be expected to go indefinitely without any or only part of the rent they are owed.”

The YouGov/NRLA estimate is likely to be accurate – an estimate by ARLA Propertmark in July put the costs for landlords across the UK at £530 million.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – £437 million – the Covid cost so far for England’s landlords, reveals YouGov poll | LandlordZONE.

View Full Article: £437 million – the Covid cost so far for England’s landlords, reveals YouGov poll

LATEST: Tenants use Facebook to gather evidence against criminal landlord after council ‘fails to act’

admin    Uncategorized     agents

Former tenants of notorious rogue landlord Mark Fortune have started a Facebook campaign to gather evidence and build a solid case against him.

Fortune was barred from renting out houses by Edinburgh Council in 2013 after issuing a shooting threat to tenants who confronted him over a £160 repair bill, but the Mark Fortune Investigation Facebook page claims he’s back in business.

By asking former tenants to fill in an online survey, it hopes to present their stories of mistreatment of tenants, poor conditions in properties and deposit fraud to the police.

At the time of his prosecution, Fortune admitted offences including making threats of violence and also pleaded guilty to a number of frauds where prospective tenants responded to his Gumtree adverts for properties to rent, paying him deposits for accommodation which never materialised.

In February this year, prosecutors announced they were hoping to seize assets which could total millions of pounds under the Proceeds of Crime Act, after years of legal wrangling.

Former tenants behind the Facebook group claim he continues to operate using legal loopholes and that he’s acquiring properties at an unprecedented rate, currently estimated at up to 200.

The group says: “The council and other local authorities have failed to take drastic action. The investigation is only in its preliminary stages yet it is becoming increasingly clear exactly which system he uses and the tools he deploys while doing so.”

It adds: “We are gathering qualitative information via a questionnaire that can be found attached in English, it is also in Spanish and French, Italian and Polish too. Mark Fortune loves newly arrived immigrants, especially those with rudimentary English and lack of legal awareness.”

Visit the Facebook website.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Tenants use Facebook to gather evidence against criminal landlord after council ‘fails to act’ | LandlordZONE.

View Full Article: LATEST: Tenants use Facebook to gather evidence against criminal landlord after council ‘fails to act’

BREAKING: Housing minister reveals widening of eviction rules including Christmas bailiff ‘truce’

admin    Uncategorized     agents

The government has revealed several changes to the evictions ban including a halt in local lockdown areas and a bar on bailiff evictions during the run-up to Christmas.

Housing secretary Robert Jenrick has also announced an additional £40 million for Discretionary Housing Payment to support vulnerable renters this year.

As before, there will be exceptions including where tenants have demonstrated anti-social behaviour or committed fraud, or when a landlord ‘would like to re-let their property to another tenant’.

And in a sign that government is beginning to realise landlords are unhappy about the evictions ban, the government’s statement says that “we would like to thank landlords for their forbearance during this difficult time”.

The announcement also reveals that the evictions ban will not be extended past September 21^th ‘because no landlord, including those who only rent out a single property, has had access to the courts since March’.

U-turn

Also, the pre-action system much heralded by Ministers prior to the government’s U-turn in August extending the ban until August 21, are to be reinstated.

These include the prioritisation of cases (anti-social behaviour and other crimes pllus extreme rent arrears), mandatory re-activation procedures for evictions started before August 3^rd, and that landlords must work with tenants to see how they have been affected by the pandemic.

The Christmas truce will also exclude evictions involving anti-social behaviour and domestic abuse.

“It’s right that we strike a balance between protecting vulnerable renters and ensuring landlords whose tenants have behaved in illegal or anti-social ways have access to justice,” says Jenrick.

“Our legislation means such cases will be subject to shorter notice periods and then prioritised through the judiciary’s new court processes.”

Reaction

“It is welcome that renters will not face eviction by bailiffs around Christmas or where there are lockdown measures. But outside that, thousands of renters who have had eviction notices during the pandemic still have no assurance from the government whether they can stay in their home,” says Alicia Kennedy, Director at Generation Rent.

“Those who have lost income will find it difficult to find a new home so face many months of uncertainty, getting deeper into debt. The government must offer them more support than a Discretionary Housing Payment pot that was set up before the pandemic hit.”

Read the announcement in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Housing minister reveals widening of eviction rules including Christmas bailiff ‘truce’ | LandlordZONE.

View Full Article: BREAKING: Housing minister reveals widening of eviction rules including Christmas bailiff ‘truce’

Northwood acquisition creates one of the largest agencies in Newcastle

admin    Uncategorized     agents

Congratulations to Inderpal Dhillon and Aman Singh of Northwood Newcastle who have completed on the acquisition of Bowes Mitchell Limited, adding 224 rental properties to their lettings portfolio, plus a highly successful residential sales business. 

“This is fantastic news for Inde and Aman, who have been truly outstanding since they first bought the Northwood Newcastle business just two years ago,” says Northwood MD Phil Gee. 

“They are a highly experienced team, with exceptional skills that have really benefitted the business, as Inde is a solicitor, his wife is a surveyor and Aman is an architect. Inde and Aman are superb operators, and immensely charismatic franchisees, as well as great ambassadors for the Northwood brand. Acquisitions remain a major growth strategy for Northwood, and I am very confident that the acquisition of Bowes Mitchell will be extremely successful, taking this business to an entirely new level. I wish them every success for the future.” 

“We are absolutely delighted,” says Inde. “Northwood Newcastle has been in existence for 16 years, and we bought it two and a half years ago, which really was one of the best things that Aman and I have ever done, as we had always wanted to work together and we enjoy what we do so much. It was always a goal of ours to grow the business, and as Northwood is part of the Belvoir Group, which has a fantastic assisted acquisition programme, the entire acquisition process was made easier. Gillian Mills, the Group Acquisition and Recruitment Manager, was invaluable throughout in terms of helping us to find the right business, advising, assisting and ultimately completing on the deal. 

“The acquisition of Bowes Mitchell has been a perfect fit for us, as it has added a further 224 rental properties to our portfolio, taking the number of rental properties in our portfolio to over 500. This was our target for next year – so to achieve this in 2020, a year ahead of target is amazing, and it means that we have now become one of the largest agencies in the Newcastle area.  

“Bowes Mitchell is a fantastic local business and will continue operating under its own brand, with the same team in place, so nothing will change in that respect. Bowes Mitchell has a strong reputation in sales with a ratio of 60% sales to 40% lettings, whereas Northwood has a lettings/sales ratio of 80/20. The added expertise and knowledge of the acquired sales team, plus a strong sales pipeline, will provide us with an enormous advantage over the competition. We will also be introducing Northwood’s highly successful Guaranteed Rent Scheme to the business, as well as investing in Proptech to make everything easier and even more efficient for landlords and tenants.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Northwood acquisition creates one of the largest agencies in Newcastle | LandlordZONE.

View Full Article: Northwood acquisition creates one of the largest agencies in Newcastle

England must follow Scotland and Wales down mandatory landlord licensing route, says report

admin    Uncategorized     agents

A report into the failings of the private rented sector backed by leading political and industry figures has recommended that landlords should be regulated in the same way as financial services and utility companies are, and proposes a raft of wide-ranging reforms and initiatives.

This includes empowering renters, better enforcement of their consumer rights and increased protection of tenants from unscrupulous landlords and letting agents.

The 42-page Consumer Rights in the Private Rented Sector report includes calls for mandatory licensing of all landlords in England, a code of conduct and even enabling local authorities to confiscate properties.

It also proposes a single law to replace the 140+ pieces that currently govern the PRS.

The key recommendations are:

• Mandatory registration for English landlords and agents.
• Stronger banning orders including property confiscation.
• A Private Renters Panel to represent tenants in policy making.
• A separate regulator for the PRS.
• Reform of redress and dispute resolution by introducing mandatory membership of the Housing Ombudsman Service for private rented sector landlords and lettings agents.
• An open-ended, flexible tenancy to replace ASTs.
• Make landlords provider better tenancy info to tenants.
• Set up a nationwide renting information hub.
• Bring the industry together via a National Private Rented Sector Reference Group.
• Introduce a Private Renting Quality Standard.
• Review current deposit providers and consider a National Tenancy Deposit Scheme.

Meera Chindooroy (picture, right), Deputy Director of Campaigns, Public Affairs & Policy at the NRLA, tells LandlordZONE: Landlords are providing a service and renters are their consumers. But being a tenant also comes with responsibilities – to look after the property, to behave appropriately without harming neighbours and co-tenants, to pay the rent, and to let the landlord know when repairs are needed.

“It’s important that tenants feel able to raise concerns about their homes with their landlord, and that both tenants and landlords are aware of their rights and responsibilities.

“We would welcome streamlined regulation in the sector and a clearer policy direction around the role of the private rented sector within the housing mix.

“We are in principle supportive of the concept of a proportionate landlord register, and have been working with others in the industry on the concept of linking this to a ‘property MOT’ which would enable tenants and local authorities to immediate see whether a property is up to standard, at a low cost.

Landlord and tenants

“The Government has also made clear that landlords will be required to register with a redress scheme in future. This will help to formalise the framework within which the relationship between landlords and tenants exists,” she adds.

“When considering regulation of the private rented sector, we have to recognise that there are 1.5-2 million landlords, the vast majority with just one or two properties, and this is not the same as regulating utilities or financial services. Regulation must be proportionate and appropriate to the needs of the sector, and work for all parties.”

Its author Lewis Shand Smith says: “Legislation is fragmented, landlord registration patchy, monitoring and enforcement is weak, routes to complaining limited and access to free and independent redress absent for most renters in the PRS.

“We propose therefore that there should be a Private Rented Sector Act, consolidating the plethora of legislation that already exists and building on it.”

John Healey (right), former shadow housing minister, says: “People who rent from a private landlord are at the sharp end of the housing crisis, but the truth is we have often more rights as consumers when we rent a car, buy a fridge-freezer or take out a loan than we do as private renters.

“This report doesn’t pretend to provide a comprehensive set of prescriptions for the private rented sector, but it does provide a strikingly fresh perspective which I hope will provide food for thought for politicians in Westminster and beyond.”

Read the report, which has been funded by The Smith Institute, in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – England must follow Scotland and Wales down mandatory landlord licensing route, says report | LandlordZONE.

View Full Article: England must follow Scotland and Wales down mandatory landlord licensing route, says report

LATEST: MPs green-light proposed HMO Bill including greater powers for local authorities

admin    Uncategorized     agents

A new Bill aiming to protect vulnerable HMO tenants has been introduced that will bring significant changes to the way HMOs are managed and approved.

But the legislation, which has been green-lighted via a ten-minute rule in parliament, is a long way off becoming law as its second reading isn’t scheduled until next year.

Tory MP Ian Levy’s Houses in Multiple Occupation Bill got its first reading in Parliament yesterday when he expressed concern about the impact that subdividing large properties into HMOs can have on the local community and the “appalling” minimum accommodation size for two adults of just 10.22 square metres, “the size of a reasonably-sized garden shed”.

However, the Bill’s second stage has been scheduled for 5^th February.

Levy (pictured, below) also pointed to problems caused by the many HMOs that are listed as hotels or marketed as Airbnbs or bed and breakfasts.

“When a property is not registered as a house in multiple occupancy, it falls through the gap, which means that local authorities such as the council and the police do not have the right of access and cannot implement boundaries, restrictions or measures to support the safeguarding of the clients living there,” he said.

The Bill urges more powers for local authorities, while forcing large HMOs to provide a nominated person responsible for the residents living there on a 24/7 basis as a point of contact.

Levy also suggested that the police should have an input into planning applications for large HMOs because they often have to deal with resulting antisocial behaviour.

He added: “I want to ensure that someone being able to buy a house in a sub-prime area and divide it into multiple bedrooms, while showing absolutely no care for the individual or the local residents, becomes a thing of the past.”

Read more details about the Bill.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: MPs green-light proposed HMO Bill including greater powers for local authorities | LandlordZONE.

View Full Article: LATEST: MPs green-light proposed HMO Bill including greater powers for local authorities