BREAKING: Landlords who help homeless to be given their deposits direct from government

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The government is to become more directly involved in the rental market than it ever has before following its latest announcement on rough sleeping.

Embattled housing secretary Robert Jenrick has today announced that his department is to provide £105 million to help homeless people secure tenancies in the private rental market, including providing their rental deposit to landlords.

“The funding will cover a range of interventions, from moves into the private rented sector, to extending or procuring interim accommodation such as hotels or student accommodation and supporting individuals to reconnect with friends or family,” a MHCLG spokesperson has told LandlordZONE.

The ministry has said that further details of how the deposits system is going to work will be released soon.

Jenrick’s ministry intends to fund the temporary conversion of empty student accommodation into temporary housing while more long-term solutions are sought.

15,000 people

The money will help some 15,000 homeless people find homes while a further 6,000 homes for longer-term provision are being built.

“In recent months, I have seen a huge effort across the country to keep almost 15,000 vulnerable people off the streets,” says Jenrick.

“This has been vital to ensure their safety during the peak of the pandemic and has changed the lives of thousands for the better.

“The additional funding announced today will allow us to continue to support these individuals – giving them access to the accommodation and support they need now while we continue with plans to deliver thousands of long-term homes in the coming months.”

Taskforce

Chair of the COVID-19 Rough Sleeping Taskforce, Dame Louise Casey, says: “We now have an extraordinary opportunity to help keep them in and turn their lives around if we get the next steps right.

“I am clear that there can now be no going back to the streets as people begin to move on from the emergency accommodation that has been put in place.”

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June Quarter Day is here and landlords face a cliff edge of rent non payment

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Thousands of landlords with commercial properties will be watching their bank accounts nervously today as they wait to see if tenants are able or willing to pay their quarterly rent in advance.

Dubbed watershed Wednesday and largely predicted to be a disaster for many landlords who have tenants operating in vulnerable areas of the economy worst impacted by the lockdown, today is June quarter day.

The consensus among landlords and managing agents is that the payments won’t be arriving, and that many tenants will have already negotiated deals to get around this latest Coronavirus rent cliff face or will be making the brutal choice to prioritise staff pay over rent.

The government has also made this easier – tenants are in effect protected from eviction at the moment by measures introduced at the end of March.

“At present, landlords cannot exercise their rights to re-enter premises or forfeit leases if their tenants have not paid rent. This ban on evictions was due to end on 30 June 2020 under the provisions of the Coronavirus Act 2020,” says Katie Hickman of legal firm VWV.

“But the Government intends to exercise its powers to extend this period and has accordingly announced that no business tenant will be forced out of their premises for non-payment of rent until 30 September 2020 at the earliest. The Government has the power to extend this period further if necessary.”

£2.5 billion

Every quarter £2.5 billion is collected from high street, warehouse, retail and office tenants but one shopping centre owner recently revealed that it had only collected 56% during the last quarter day, and was nervous about what will happen this time around.

“I don’t believe that tenants will be paying up in a timely fashion today,” Adam Diamant of London firm Land Commercial Surveyors tells LandlordZONE.

“I think that today and going forward will result in more tenants struggling and asking for help, especially those involved in beauty and nail salons who are yet to be allowed to open. There will be lots more conversations between landlords and tenants in the coming days and weeks.”

Property industry commentator Russel Quirk agrees, saying that times have changed dramatically – “normally June quarter day is a highlight of the calendar for retail and office owners”.

“But today, I suspect, far from it. Hundreds of thousands won’t pay. But only some of them can’t pay.”

As Russell alludes to, the biggest question today for landlords is whether tenants will take matters into their own hands and withhold rent as they scramble to protect what cash flow they do have to pay other bills – for example many forget the furlough system is not a cost-free scheme for employers.

Late last month the government announced that it had set up a working group to establish a ‘fair and transparent’ code to help landlords and agents ‘spread the financial burdens created by the crisis across the sector’. But this will come too late for today’s deadline.

Read Tom Entwistle’s opinion piece on rent collection.

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Additional £105m towards interim housing for rough sleepers

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Interim housing for thousands of rough sleepers taken off the streets during the pandemic is to be provided, ministers have announced.

The additional £105 million will be used to support rough sleepers and those at risk of homelessness into tenancies of their own

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Sterling effort! New platform offers £1 property rental service to landlords

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Thrifty landlords looking to let their property could be quids-in by using a new online platform that bypasses letting agents.

For just £1, they can advertise for seven days on Portico Direct, a budget lettings service from estate agent Portico, which connects tenant enquiries with private landlords.

Landlords upload their photos then, once they get applicant details, can conduct viewings themselves, either virtually or in person.

Portico’s CEO Robert Nichols says with landlords feeling the effect of tougher regulations and taxes, this will provide a solution for those wanting to rent out their property without using a traditional high street agent while keeping costs down.

He says: “Ultimately, our new offering means private landlords are able to find the right tenants quickly and cost-effectively and, as long as they don’t mind doing some of the legwork, enjoy a better return on investment as a result.”

With Portico Direct, private landlords based outside London can advertise on Rightmove, Zoopla and OnTheMarket for £1 for the first seven days, which Nichols says is often enough time to find the perfect tenant.

If landlords need longer, they can buy another 14 days for £19 – and repeat as needed. 

Portico Direct also offers other online services for landlords, including tenant credit checks, tenancy agreements which can be signed digitally, deposit registration, rent guarantee insurance and rent collection.

The company says not sticking to the rules when renting out a property can lead to both landlord-tenant disputes and heavy fines.

It’s designed the online dashboard to help landlords make sure they issue the right documentation alongside the tenancy agreement and stay compliant with changing legislation.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Sterling effort! New platform offers £1 property rental service to landlords | LandlordZONE.

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‘Panic letting’ prior to lock-down is now causing landlords major headaches, claims law firm

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The scramble to fill properties during lockdown means some landlords are now paying the price for poor referencing, according to law firm Irwin Mitchell, which warns them not to ‘panic let’ if they want to avoid problems with tenants who haven’t been properly vetted.

The firm says they’re has been a rise in inquiries from landlords wanting to recover possession of assured shorthold tenancies that they’ve signed since March when the Coronavirus hit.

It says most of these situations occurred because the landlord was eager to let the property as it was, or was due to be, vacant. As a result, their investigations into prospective tenants was often less thorough – which is now coming back to haunt them.

Cutting corners

Sam Lane, a solicitor in its real estate disputes division, says while it’s understandable that landlords want to ensure their properties are occupied and let, it’s important that they don’t cause themselves problems by cutting corners or ‘panic-letting’.

He adds: “While it’s likely that the rental market will become more competitive over the coming months, a short-term solution to an empty property now could lead to a bigger problem further down the line.

“Despite market conditions, they need to make the same inquiries into prospective tenants as they would have previously made. In fact, it’s probably important to do so than ever, given the restrictions on eviction.”

Lane advises that landlords wanting to gain possession of their property should consider serving notice or issuing proceedings sooner rather than later, particularly given the court’s backlog of cases.

“In current circumstances, we believe that it will likely take at least 12 months from the service of a notice for a landlord to recover possession of a property where county court bailiffs are required,” he adds.

Read more about lockdown.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Panic letting’ prior to lock-down is now causing landlords major headaches, claims law firm | LandlordZONE.

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Landlord duo convicted of illegally dividing house after TEN YEAR wrangle

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Two landlords have finally been convicted of illegally dividing a house into seven sub-standard flats following a ten-year legal wrangle.

Camden Council first issued a planning enforcement notice in 2010 on Joel Salem, of Highview Gardens, Finchley, and Judith Robinson-Dadoun, of Brampton Grove, Hendon, after an investigation by its planning department.

Officers found that the units at 52 Fortune Green Road did not meet tenants’ housing needs or provide an acceptable standard of living accommodation and ordered that the pair remove bathrooms and kitchens.

Both have now been found guilty at Highbury Corner Magistrates’ Court for their failure to comply with this notice.

During the court case, the defendants repeatedly altered the basis of their defence, however district judge G. Allison said: “The defence has consistently failed in its duty under the Criminal Procedure Rules to assist the court in identifying the real issues in the case; this matter has been a true case of shifting sands.”

Lawfully issued

The judge ruled that both defendants were the freehold owners of the land throughout the period, that the council’s enforcement notice was lawfully issued and served and that there was a continuing and long-standing failure by the defendants to comply with its requirements.

Salem and Robinson-Dadoun will now be sentenced at Wood Green Crown Court where confiscation proceedings will also take place under the Proceeds of Crime Act.

Councillor Danny Beales, cabinet member for investing in communities and an inclusive economy, says: “I’m delighted by this verdict as it shows that Camden Council will not accept substandard accommodation and that we will strongly pursue the breach of planning enforcement notices.

“This should send a strong message to other landlords and building owners. You need to comply with planning rules and Camden will stand with our residents who deserve safe, good quality homes.”

Read more about the Camden private rental market.

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Government plans to help construction in coronavirus recovery

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New measures to help the construction industry boost building and return to work safely will be introduced this week, Housing Secretary Robert Jenrick MP announced 22 June 2020.

Planning permission deadlines will be extended, planning appeals will be sped up and builders will be allowed more flexible working hours following agreement with their local council.

The post Government plans to help construction in coronavirus recovery appeared first on Property118.

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Baker Street Livestream Wednesday 7pm

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The Baker Street Property Meet Live Stream Event is tomorrow Wednesday 24th June at 7pm.

Click here to join the event.

After lockdown, how do you finance investment property deals or arrange a Buy to Let mortgage for your property investing activity?

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Mortgage broker makes unusual plea for landlords to buy his terminal friend’s self-help book

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A leading UK buy-to-let broker is asking landlords to buy a financial self-help book written by a friend of his who last year was given a terminal cancer diagnosis.

But this is no ‘Just Giving shout out’. Paul Maloney, MD of Nova Financial, says his friend Michael Romeo (pictured) has committed to using a variety of investment and debt management strategies to clear his family’s mortgage during the expected two years he has to live.

His book about his race to re-align his life and financial healthy is called Terminal Velocity and has made Romeo a minor celebrity in Australia following its publication.

Maloney also says he also wants his friend’s extraordinarily determined and selfless approach to life planning to be known about in the UK.

Proceeds from the sale of the book will go towards a fund to support his family.

“A lot of people under-utilise what they’ve got and I am hoping Michael’s story will persuade to get off the fence and start thinking about their own financial position,” says Maloney.

Speaking from Australia, Romeo says he is taking each day as it comes but that he’s hoping to have another two years to executive his plan for financial independence for his family, and that he’s made good progress so far.

Initially given six to 12 months to live, Romeo then realised that he would be leaving nothing but debt behind for his wife, which he said hurt more than the diagnosis itself.

Order a copy of his book here, for £12.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Mortgage broker makes unusual plea for landlords to buy his terminal friend’s self-help book | LandlordZONE.

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Isle of Man consults on compulsory landlord registration after voluntary scheme flounders

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Hundreds more landlords on the Isle of Man could soon be forced to register themselves and their properties if a new bill gets the green light.

The Landlord Registration Bill aims to establish minimum management and property standards in the private rented sector – five years after the Landlord and Tenant Private Housing Bill was dropped by the House of Keys after a committee recommended the proposals should be completely redrafted when landlords branded them confusing, unbalanced and favouring tenants.

As well as a compulsory register, the new proposals also include a rent deposit protection scheme.

The island’s current legislation has been based on voluntary registration since 2013, but only 100 landlords have signed up, representing just 300 properties out of a total of at least 5,000. The government has now launched a public consultation which closes on 27^th July.

Infrastructure Minister Tim Baker says: “While I have no doubt that the vast majority of landlord and tenant relationships are very amenable, there are unfortunately a number of properties which are in a substandard condition. These are often let to the most vulnerable in our island society, in circumstances where individuals feel they have no legitimate avenue for complaint, let alone action.

“The purpose of this Bill is to eradicate this totally unacceptable position and I encourage as many people as possible to participate in the consultation process and submit their views.”

Landlord registration was recommended by the island’s Safeguarding Board as part of a serious case management review into the death of a vulnerable man who had been living in poor private rented accommodation following eviction from his local authority flat eight months earlier.

Read more about property and landlord registration schemes.

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