Sprinkler system reponsibility?

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I own a flat where there was a sprinkler system that installed by the developer when this property was first built. Now this building is run by the Management company.

However, there is an issue with this, whereby there is a water leak from the pipes from the Sprinkler system.

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New Form 6a – Section 21

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An updated version of Form 6a has been released confirming that after the introduced Tenant Fees act a landlord cannot serve a Section 21 notice if they have taken a Prohibited Payment from a tenant and that payment has not been refunded in full.

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What use is an AST any more?

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Being a battered Landlord, I have endured most of the problems that we all read about on these Property118 pages.

In 6 days time my latest section 21 notice expires and I am bracing myself for what comes next.

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Law comes down more heavily on landlords than it does on criminals

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Landlords & the
Law:

Writing for the Scotsman
newspaper, ex police officer Tom Wood explains how his “accidental landlord�
friend was meted out a harsher penalty than were a drug handler and a man who
assaulted a police officer.

The First Tier Housing and Property Tribunal for Scotland,
now responsible for rental housing matters in Scotland, handed out a £600 fine because
the amateur landlord friend overlooked the necessity to protect the tenant’s
deposit in one of the approved schemes on time.

In contrasted the police attacker was fined £500 and the
druggie £420 for possession.

Ex police offer Wood commented:

“Is this the balance of justice we want carried out in our
name, is it fair and proportionate that an administrative error be punished
more severely that crimes involving violence or drugs?

“But perhaps we also share responsibility, perhaps we should
pay more attention, look more closely at the standards of justice meted out by
our legal tribunals. In the meantime, the accidental landlords, the ones
without the legal back-up of big property companies, should beware.

“From my observation, the Housing and Property Tribunal is
heavy-handed, the scales of justice weighted against you.

“The application of the law is meant to be fair and proportionate
in all cases. What I witnessed was arguably fair within the letter of the law
but it was grotesquely disproportionate. We should pay more heed and not be taken
in by their friendly grin,� Mr Wood says.

Even though the landlord openly admitted the transgression, and
had registered as a landlord as the law dictates in Scotland, he knew he had
failed to lodge his tenant’s rental deposit in an approved scheme within the
statutory time limit of 30 days allowed.

This of course as experienced landlords would know was contrary
to the Tenancy Deposit Scheme (Scotland) Regulations 2011. Mr Wood explained it
had been an oversight by a new landlord, a mistake that had been quickly
rectified, and with no loss to the tenant, but seemingly as far as the tribunal
was concerned, a more serious transgression than the other criminal offences.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Law comes down more heavily on landlords than it does on criminals | LandlordZONE.

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‘Rumble with the Agents’ raises over £19k for Make-A-Wish UK

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On Thursday 23rd May, the fifth annual ‘Rumble with the Agents’ white-collar charity boxing event took place at The Holiday Inn in Finchley Central.  The sell-out event, attended by more than 300 property professionals, raised in excess of £19,000 for Make-A-Wish UK

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Reminder – Tenant Fees Ban commences tomorrow

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Tenant Fees Ban:

The Tenant Fees Act 2019 becomes effective from tomorrow,
Saturday 1st June 2019.

It applies to England only for now, but is likely to be
extended to Wales in due course.

The Act controls payments that landlords and letting agents
can require a tenant to pay in connection with a tenancy or licence for a
residential dwelling in England with very few exceptions.

Effectively, the Act bans all payments a landlord or letting
agent may take from a tenant except those expressly set out in the Act as “permitted�
payments. These are:

Rent – which will
include an advance payment for the first rent period, which must be the same as
all the subsequent rent payments. In other words, the first period cannot be
loaded to recover costs

Holding Deposit –
refundable, and no more than the equivalent of one week’s rent, with its terms
of refund and retention set-out clearly in writing

Tenancy Deposit,
sometimes referred to as a security or damage deposit, again refundable and
capped at no more than five weeks’ rent, if the total annual rent is less than
£50,000, or a maximum of six weeks’ rent, if the annual rent exceeds £50,00

Amendments charges,
mid-tenancy, amendments requested by the tenant are capped at charges of £50,
unless a greater cost can be fully justified.

Early Termination,
payments associated with this when requested by the tenant

Provision of
Utilities, such internet services, telephone, TV licence and council tax
when appropriate.

Default Fees,
when the tenant defaults on rent payments or other permitted payments specified
in the tenancy agreement, including such items as replacement of a lost keys,
etc.

There is considerably more detail within the Act itself –
see the link below – so landlords and agents should familiarise themselves with
the detail.

Tenant Fees Act 2019

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Report shows 10,000 extra rentals added to English dwelling stock

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Rental Housing:

Between March 2017 and March 2018, the private rented dwellings in England increased by 10,000. Over the same period the owner-occupied dwelling stock increased by 226,000 while the social and affordable rented stock decreased by 1,000 dwellings. Other public sector stock decreased by 13,000 dwellings.

The figures clearly demonstrate the trend, how private landlords have increasingly become relied upon to provide the much needed extra rental housing.

The Dwelling Stock Estimates to 31 March 2018, for England
published in a Government Housing Statistical Release last week (24 May 2019)
show there were 24.2 million dwellings in England at 31 March 2018, an increase
of 222,000 dwellings (0.93%) on the same point the previous year.

15.3 million of these dwellings were owner occupied dwellings, 4.8 million private rented dwellings and 4.0 million social and affordable rented dwellings (Private Registered Providers plus Local Authority).

Between March 2017 and March 2018, the owner-occupied dwelling
stock increased by 226,000 and the private rented stock increased by 10,000. The
social and affordable rented stock decreased by 1,000 dwellings and the other
public sector stock decreased by 13,000 dwellings.

There were 634,453 vacant dwellings in England on 1 October
2018, an increase of 28,562 (4.7%) from 605,891 on 2 October 2017. Vacant dwellings
are 2.6 per cent of the dwelling stock.

Long-term vacant dwellings numbered 216,186 on 1 October
2018, an increase of 10,893 (5.3%) from 205,293 on 2 October 2017. Long-term
vacant dwellings are 0.9 per cent of the dwelling stock.

The publication states
that these tenure statistics differ from those published from the English
Housing Survey which are in terms of households not dwellings. In addition, the
dwelling stock figures include vacant dwellings. The trends are consistent. The
English Housing Survey is the primary measure of tenure, as the unit of
households is the preferred metric, but the Dwelling Stock figures are a useful
leading indicator.

Dwelling Stock Estimates: 31 March 2018, England

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‘Rumble with the Agents’ raises over £19k for Make-A-Wish UK

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On
Thursday 23^rd May, the fifth annual ‘Rumble with the Agents’ white-collar
charity boxing event took place at The Holiday Inn in Finchley Central.  The sell-out event, attended by more than 300
property professionals, raised in excess of £19,000 for Make-A-Wish UK, with
the final total still being tallied, which will enable eight children with
critical illnesses to be granted their once in a lifetime wish.

On
the night, 10 boxers were paired for the five fights comprising three rounds
each.  Heckled and cheered on by friends,
family and colleagues, each demonstrated the effort they had put into the intensive
training over the last few months.  

The incredible amount was raised from donations, a raffle and a live auction of sporting memorabilia, which every year Paul Shamplina , founder of Landlord Action, sources from far and wide in order to maximise the event’s charity donation.
Danielle Munday, Regional Fundraising Manager (South) for  Make-A-Wish UK, commented: “Make-A-Wish UK would like to extend a huge thanks to Paul Shamplina and Landlord Action for allowing Make-A-Wish to be a part of this year’s fantastic Rumble with the Agents, raising in excess of £19,000 and far exceeding all hope and expectation! With your help, we will now be able to grant approximately eight transformational wishes to children enduring illness and treatment that most of us could never imagine. Our purpose is simple. We create life-changing wishes to children living with critical illnesses. Granting their one true wish provides seriously ill children with hope for the future, strength to cope and resilience to fight their condition. They are given quality time away from the daily realities of living with their condition and given the chance to make magical memories that they can treasure forever – whatever their future may hold. We can only grant wishes with the help and support of partners like you. Thank you again.â€�

Paul
Shamplina, founder of Landlord Action and brand ambassador for Hamilton Fraser,
added: “I can’t believe this has been the
fifth year we have run this event. It was never my intention to launch an
annual event, but every year it gets better, we raise more money and the quality
of boxing from the novices improves. This year, I really wanted everyone to be able
to see the tangible results of the money donated and how it makes a difference
to those it goes to. Make-A-Wish UK is such a special charity and I hope by
next year’s event we will be able to show everyone pictures of those eight
magical wishes and what it meant to the children that received them.�

To
volunteer to take part in next year’s event or donate please email Rita Shamplina
on info@rumblewiththeagents.co.uk
or call 07790 569501. 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Rumble with the Agents’ raises over £19k for Make-A-Wish UK | LandlordZONE.

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Don’t fall foul of the authorised guarantee agreement…

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Commercial Property:

A recent High Court decision in Co-Operative Group Food Ltd
v. A&A Shah Properties Ltd (2019) relates to an authorised guarantee
agreement (AGA) dispute, in this case an agreement involving a guarantor of the
outgoing tenant.

The issue in question was how a guarantor can guarantee an
outgoing tenant’s obligations in an authorised guarantee agreement (AGA)
without falling foul of the Landlord and Tenant (Covenants) Act 1995.

Although there was some confusion given the terms in the
licence to assign, the High Court held that the guarantee in the licence in the
Co-Operative Group case, operated as a sub-guarantee and the guarantor was not
released from its liability.

Privity of Contract:

The Landlord and Tenant Covenants Act came into force on 1
January 1996. The Act abolished “privity of contractâ€� – the relationship
between the parties in a contract which entitles them to sue each other, but
prevents a third party from doing so – for all new commercial property leases,
though in certain circumstances an outgoing tenant could be required to guarantee
its immediate assignee.

Before the Landlord and Tenant (Covenants) Act 1995, the
first tenant remained liable for the rent, etc., throughout the term of the
tenancy, regardless of assignment. An assignee default at any time meant the
original tenant could suddenly be presented with a demand for rent at any time.

The Act did not change the rules on underletting, but it
meant that with any commercial lease the parties were permitted to enter into
an agreement, usually explicitly in the lease, specifying those circumstances
in which consent to assignment can be withheld, or any conditions subject to
which consent can be granted.

In return for the loss of their rights under privity of
contract, landlords were given greater powers to control assignments and the
Act. It also amended s.19 of the Landlord and Tenant Act 1927, and introduced for
both new and existing leases a procedure under which landlords had to notify
former tenants, and their guarantors, within six months of a current tenant’s
breach of certain covenants. If in these circumstances the notified tenant or
guarantor was to remedy the breach, it is able call for an overriding lease.

In the Co-Operative Group case, where the Act requires that
on an assignment of a new lease the outgoing tenant is released from the tenant
covenants and, at the same time, any guarantor of that outgoing tenant is also released,
there is a qualification.

That is, the outgoing tenant may be required to enter into
an AGA to guarantee the performance by the assignee of the tenant’s covenants
in the lease. Subsequent case law has established that an outgoing tenant’s
guarantor can guarantee the outgoing tenant’s performance of its obligations
under the AGA as a sub-guarantee.

But, the outgoing tenant’s guarantor cannot guarantee
performance of the tenant’s covenants performed by the assignee as that would
be a direct guarantee and would be rendered invalid by the anti-avoidance
provisions of the Act.

In the case of Good
Harvest Partnership LLP v Centuar Services Ltd, the High Court held that direct
guarantees by the outgoing tenant’s guarantor to guarantee the obligations of
the assignee in an Authorised Guarantee Agreement (AGA) are void under section
25 of the Landlord and Tenant (Covenants) Act 1995.

If this were not the
case, a condition would have imposed obligations on the tenant’s guarantor
equivalent to those from which section 24 LTCA 1995 sought to release them
thereby frustrating the aims of the Act. The effect of Good Harvest was that
any direct guarantee from on outgoing tenant’s guarantor of an incoming
assignee is unenforceable.

The Coop case was complicated by there being more than one
provision in the licence to assign, but the crux of the matter is that landlords
and their solicitors need to be very careful when drafting to make the distinction
between a sub-guarantee and direct guarantee, to ensure that the outgoing
tenant’s guarantor only ever guarantees performance by the outgoing tenant and
not performance by the assignee.

In the end, in the Coop case, purely because of one provision
in the licence to assign, the AGA was held on this appeal to be an enforceable
sub-guarantee.

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Ex-evicted bad’un has the gall to ask for a positive reference?

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I nearly died of shock today! My inbox contained a request for a tenant eventually evicted last November, which began in April 2018. Yes, it was one of those Section 21s, the so-say ‘no fault’ eviction route to ensure I got possession without contest.

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