Leicester to widen HMO planning restrictions covering ‘thousands’ of houses

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Leicester city council councillors are to vote next week on plans to significantly widen local planning laws to clamp down on the spread of HMOs.

The measures are to be brought in following a public consultation that finished in January this year.

Leicester has had an Article 4 Direction in place for nearly ten years in several areas of the city, but following the eight-week consultation this is to be expanded to cover ‘thousands’ more houses.

The existing Article 4 Direction covers parts of the West End, streets near to De Montfort University’s campus and Leicester Royal Infirmary, numerous streets in the area between New Walk and HMP Leicester, as well as most of Clarendon Park and a section south of Lancaster Road.

The West End zone will now be extended to stretch from Rowley Fields, to Westcotes, Newfoundpool and parts of the Waterside area, while the Clarendon Park area would be extended to incorporate much of Knighton Fields, Knighton, Stoneygate and part of Aylestone.

A third new area will include much of Spinney Hills and Highfields.

HMO spread

Part of the justification of the Article 4 Direction is that although only just under seven percent of its housing stock is HMO properties, in some parts of the areas covered by the Article 4 Direction, HMOs account for between 25 and 38 percent of its stock.

The plans, along with an enlarged selective licensing scheme due to be introduced in the city, has drawn criticism from local property figures.

As LandlordZONE has reported previously, Irving Hill of local student lets firm Stulets, said: “If the council stops more houses being converted into HMOs by using the Article 4 directive it will have a direct impact on students, restricting choice and driving up the price so that poorer ones are priced out and won’t have anywhere to live.”

Read the consultation detail.

View Full Article: Leicester to widen HMO planning restrictions covering ‘thousands’ of houses

Tenant fraudster who tried sell landlord’s house jailed

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A tenant who tried to sell the house he rented without his landlord’s knowledge has been jailed.

Andrew Smith, 41, was only caught out in his ‘truly brazen crime’ when a prospective buyer conducted a drain survey at the property.

View Full Article: Tenant fraudster who tried sell landlord’s house jailed

Rents set to outperform property prices

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Rental value growth is predicted to outpace property price growth over the next five years, says one leading property expert.

Nicky Stevenson, the managing director of Fine & Country UK, says that a shortage of stock, increased borrowing costs

View Full Article: Rents set to outperform property prices

RICS: ‘Rents to rise even more as tenant demand jumps but landlords leave’

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The rental market continues to race huge structural problems including low supply, high demand and rising rents, the latest housing market survey by RICS has revealed.

Its surveyors reported that last month tenant demand continues to rise at a ‘solid pace’ including a significant number of estate agents taking part in the survey reporting noting more enquiries from prospective tenants.

Set against this, RICS says landlord instructions to market properties dropped again last month and, given this mismatch of supply and demand, rents are expected to rise across the UK even more in the coming months, agents reported.

Rents are expected to rise by 4% on average nationally over the next 12 months, the report reveals.
Chris Baker of London firm McDowall’s, says: “The lettings market is suffering from a contin­ued lack of supply with tenants staying far longer in their homes.

“Some experienced landlords are keeping rents steady, preferring to allow good quality tenants to remain in their homes.”

John Chappell of Skegness firm, Chappell & Co, says: “Despite growing demand from prospective tenants, our landlords have all instructed us to hold back on rent reviews until at least Spring 2023, to see what effect the current crisis has on tenants’ ability to afford their rent this winter.

“More landlords are selling up due to uncertainty in the market.”

Simon Rubinsohn (pictured), Chief Economist at RICS, adds: “The imbalance between demand and supply still appears unusually extended leading to rent expectations in the survey remaining at elevated levels and it is difficult to see this changing anytime soon in the current environment.”

View Full Article: RICS: ‘Rents to rise even more as tenant demand jumps but landlords leave’

Scots eviction and rent-rise ‘ban’ legislation will just cost landlords more money – claim

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Property solicitor David Smith has cast doubt on the effectiveness of Scotland’s Cost of Living (Tenant Protection) Bill, which he believes could end up forcing landlords to bear more of the debt burden and direct them towards quitting the sector.

The Bill creates third-generation rent control, meaning that rents are controlled – but float freely – within tenancies, explains legal firm JMW’s Smith, who adds that this does not really reduce overall rent increases in the long term as they will eventually rise to the market level.

“It motivates tenants not to leave properties, even where they might be better served by moving because while in tenancy their rent is restricted, by moving they will have to pay the (often higher) market level,” he says.

“That means that there is less property churn and lower availability for those coming into the market looking for properties. Given that Scotland is already suffering from a shortage of available rented property it seems likely that this Bill will make that problem worse rather than better.”

Longer notice period

The Bill also prevents anyone from being evicted by prohibiting a decree of removing (the Scots’ version of a warrant of possession) which actually gives a tenant six months’ notice of the making of the decree.

There are exemptions for criminal and anti-social behaviour, substantial arrears and landlords needing property back to sell due to financial hardship or to occupy themselves.

“However, it is worth noting that the Bill also amends previous legislation such that substantial rent arrears means that the tenant is in six months of arrears, which is rather higher than now,” adds Smith. “The clear direction of travel is to force landlords to bear more of the debt burden and to give them options to leave the sector if they want out.”

Read more about the new Scots legislation.

View Full Article: Scots eviction and rent-rise ‘ban’ legislation will just cost landlords more money – claim

Alphaletz free webinar with Mark Alexander – is a Limited Company right for you?

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Alphaletz will be hosting a free webinar with Mark Alexander (Founder of Property118) on  Tuesday the 15th and Wednesday the 16th of November to outline the benefits of a company structure and see if it’s right for you.

Richard Jackson

View Full Article: Alphaletz free webinar with Mark Alexander – is a Limited Company right for you?

Rental market picks up steam while house sales stall

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Demand across the lettings market is high and continues to push rents up, the latest surveyors’ report reveals.

RICS says that tenant demand continues to rise at a ‘solid pace’, with a net balance of +46% of survey participants noting an increase in October.

View Full Article: Rental market picks up steam while house sales stall

Housing ministers’ musical chairs continue at Levelling Up department

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Junior Housing Minister Felicity Buchan (main picture) has been tasked with overseeing the private rented sector, taking over from Lee Rowley in the latest instalment of ministerial musical chairs.

Rowley (pictured), who was appointed the 12th housing minister in September, is now responsible for local government and building safety after barely two months with responsibility for the PRS. He replaced Eddie Hughes at the DLUHC on 7th September and faced some criticism that he was too inexperienced to hold the housing brief.

Buchan only got the job on 30th October but has already faced MPs in a Commons debate on the Renters’ Reform White Paper and a select committee where she continued to give very little away about the details of the proposed legislation and possible introduction date. She must also deal with hot topics including leasehold reform and the ongoing cladding scandal.

Latest MP

Last month, Lucy Frazer (pictured, below)became the latest MP to join returning boss Michael Gove in the department and is the other junior minister in charge of housing, tasked with focusing on overall strategy, house building and homeownership.

Other senior colleagues in the department are Dehenna Davison, minister for levelling up, and Baroness Scott of Bybrook, minister for communities. Following the appointment of Rishi Sunak, colleagues Andrew Stephenson, whose remit at the DLUHC included social housing, became government whip at the Treasury, while Paul Scully, who was building safety minister, moved to a new role at the Department for Culture, Media and Sport.

Renewed calls for more permanent faces at the department and a stop to the ‘revolving door’ greets each new appointment; Frazer is the ninth minister with responsibility for housing in the last five years and the 14th since the 2010 general election.

More about the revolving door.

View Full Article: Housing ministers’ musical chairs continue at Levelling Up department

Minister promises to ask ‘searching questions’ about Scots rent rise and evictions freeze

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The Scottish government has vowed that an upcoming review will ask searching questions about the current repossession grounds in the wake of its emergency soc-called rent rise and evictions freeze.

Speaking on the Scottish Housing News podcast, tenants’ rights minister Patrick Harvie (main image) said the review would also look at the issue of how – under the rent freeze and eviction ban – a lender who takes ownership of a property after a landlord goes bust, can evict sitting tenants.

He explained that although this could not be addressed under emergency legislation, it could be considered in the Housing Bill which is due in 2023.

Pleasantly surprised

Harvie said he believed the sector had been pleasantly surprised at protections put in place for landlords, such as being given the opportunity to repossess a home if they needed to sell or move in because of their own hardship.

“We didn’t say no evictions because…it’s not in the interest of either landlord or tenant to build up arrears,” said Harvie. “They may need direct financial support, otherwise some tenants might stop paying rent altogether.”

But he added concerns about possible immediate rent increases had led it not to consult before making the announcement.

“It would have done more harm than good. Sadly, there have been those who have been trying to abuse the current power imbalance – we felt it was essential to give tenants protection from that.”

Harvie said the government would judge the current rent freeze and evictions bans – based on economic circumstances – to decide whether it could justify their suspension, expiry, continuation or whether it should operate differently in the PRS and social sectors.

Read a complete guide to evictions.

View Full Article: Minister promises to ask ‘searching questions’ about Scots rent rise and evictions freeze

Decent Homes Standard will achieve little without funded enforcement, agents warn

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Letting agents have warned that the Government’s Decent Homes Standard plans for England will be pointless unless councils have the resources to enforce the new rules.

A Decent Homes Standard, which will require all private landlords to attain minimum standards of quality for their properties or face criminal charges, was included within the recent ‘Fairer Renting’ white paper. This in turn is expected to form the looming but much-delayed Renters Reform Bill.

Propertymark says many struggle to enforce the current standards within the private rented sector, never mind any new responsibilities, which will be difficult to manage without more money to fund it – which is unlikely to be forthcoming in the current financial climate.

Instead, Propertymark says a better approach would be prevention rather than prosecution including more information and support for landlords along with national and consistent national guidelines.

Letting agents say enforcement of existing rules can be inconsistent between different areas, and that any new legislation must give tenants as well as landlords new responsibilities – often properties are in a poor condition due to tenant neglect or poor behaviour particularly when mould s the problem.#

Immense strain

“It’s hard to find a reason not to support greater standards for homes within the private rented sector,” says Timothy Douglas, Head of Policy and Campaigns at Propertymark (pictured).

“Tenants should expect a certain standard when renting from any agent. The Decent Homes Standard creates a level playing field that our members will appreciate as they already go above and beyond what is expected of them.

“That being said, the DLUHC needs to understand the immense strain local authorities are facing when delivering their current duties regarding existing standards.

“Sufficient resources and commitment will be required to ensure consistent and regular enforcement of the Decent Homes Standard.”

Read Propertymark’s submission to the Decent Homes Standard consultation.

View Full Article: Decent Homes Standard will achieve little without funded enforcement, agents warn