Key architect of evictions ban and Solicitor General Alex Chalk quits Government

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The Solicitor General, MP Alex Chalk, has resigned from the Government following last night’s departure announcements from Rishi Sunak and Savid Javid.

Chalk may not be a household name like the now former Chancellor and Health secretary, but he was one of the key players in lining up the multiple eviction bans that made life difficult for thousands of landlords with rent arrear tenants during the pandemic.

Chalk was a key player in getting the Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) (Amendment) Regulations 2021 (S.I. 2021, No. 362) through parliament.

Although called the Solicitor General, Chalk is in effect the Attorney General Suella Braverman’s right hand man, which will be all the more awkward for her as she’s a key Johnson loyalist.

Cumulative effect

In a resignation letter to Boris Johnson this morning, Chalk – who is MP for Cheltenham – said “the cumulative effect of the Owen Paterson debacle, Partygate and now the handling of now former Deputy Chief Whip’s resignations [Chris Pincher] is that public confidence in the ability of No.10 to uphold the standards of candour expected of a British Government”.

Back in March 2020, when the government brought in its first evictions ban, Chalk released a statement saying that he was ‘for renters’ and that “as a result of these measures, I’m confident that no renters in private or social accommodation need to be concerned about the threat of eviction”.

But as LandlordZONE reported on many occasions during the pandemic, landlords who had tenants deliberately seeking to avoid paying rent for their own financial benefit were caught up in the rules surrounding the evictions ban, which prevented them from evicting such tenants under any circumstances.

View Full Article: Key architect of evictions ban and Solicitor General Alex Chalk quits Government

LATEST: Council blames HMOs for increased crime as it seeks powers to limit numbers

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Dudley is the latest council to be take up powers to limit the number of HMOs within its boundaries, claiming that they ‘linked with increased crime levels’.

At an internal meeting this week councillors heard from both local police and its own Anti-Social Behaviour team that HMOs in Dudley were linked to anti-social behaviour, noise, inadequate living conditions, litter, parking issues and increased drug use.

They were also told of concerns that high concentrations of HMOs in certain areas are harming their character, putting pressure on infrastructure and diminishing community relations.

This was accepted by the committee meeting, even though several councillors pointed out that HMOs are one of the few viable housing options in the area for those on low incomes.

Nevertheless, the council will now seek Article 4 powers following a six-week consultation period which, assuming it is successful, will mean anyone trying to turn a home into an HMO for up to six people would need to get planning permission from the council.

But the local paper reveals that the powers would not be taken up for at least 12 months to give ‘developers and landowners notice and avoid the risk of them claiming compensation from the council’.

Dudley Borough Council says the town, which is famous for its zoo and for being the birthplace of Lenny Henry, contains some 2,208 HMOs of which approximately 10% are licenced under mandatory rules because they contain five or more tenants.

Poorly managed

Labour councillor Adam Aston (pictured), who has proposed the Article 4 direction policy, says: “HMOs aren’t bad, but poorly located and poorly managed HMOs are bad.

“We have seen communities across Dudley suffer from the effects of large numbers of people living within small or inappropriate properties.

“My proposal will see the council’s Development Control Committee once again have the power to scrutinise and potentially refuse requests to change the use of a property.”

Read more about licensing.

View Full Article: LATEST: Council blames HMOs for increased crime as it seeks powers to limit numbers

Propertymark – Government must understand the cost of pets to Landlords

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Propertymark has conducted a joint online survey with the NRLA, LandlordZone and pets charity AdvoCATS indicating how common pet damage is and how difficult the costs are to recover in the PRS. Click here

Out of 537 respondents (this would be skewed due to the nature of the survey) 85.3% of landlords had incurred damage by pets.

View Full Article: Propertymark – Government must understand the cost of pets to Landlords

SURVEY: What do YOU think of the ‘Fairer Renting’ White Paper proposals?

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Landlords are being urged to take part in a major survey that promises to act as an accurate barometer of the lettings sector.

Goodlord and Vouch’s annual State of the Lettings Industry report aims to provide an in-depth analysis of the trends, progress and challenges facing the industry, based on the views of thousands of landlords, agents and tenants.

It wants to get reactions to the recently announced Fairer Renting White Paper and respondents will also be asked to reflect on both the past year and the year ahead.

Their insights will reveal how arrears, stock levels, Covid-19 and the ever-changing legislative landscape are impacting business and industry confidence.

A concurrent survey of thousands of tenants will look at the impact of the ongoing cost of living crisis on their incomes and their ability to pay rent.

Rent arrears

Last year’s report showed that almost a third of lettings professionals were still seeing increases in arrears almost 18 months into the pandemic, well before the cost of living crisis had started to bite.

And despite two-thirds saying they were optimistic about the future of the lettings industry, lack of stock was already a major concern in 2021, with increased legislation and compliance blamed as the main reason landlords were leaving the sector.

Goodlord and Vouch hope even more respondents will take part this year, to make September’s report the most in-depth to date. Responses can be submitted until 18th July and everyone who takes the 10-minute survey will be entered into a draw to win a £100 Amazon voucher.

Take the survey at: https://www.goodlord.co/sotli-22-survey-agents

View Full Article: SURVEY: What do YOU think of the ‘Fairer Renting’ White Paper proposals?

Tenant has fallen down the stairs and sustained injuries?

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Hi, I’m looking for advice as one of my tenants has today messaged saying they have fallen down the stairs in my rented property. They haven’t advised how/what caused them to fall down, but here is their message

“I need to let you know

View Full Article: Tenant has fallen down the stairs and sustained injuries?

OPINION: Would periodic tenancies change everything for landlords?

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The cost of living crisis shows no signs of easing so it’s not surprising that our data has revealed that tenants are staying put for longer, unwilling to risk rent increases and uncertainty over unsecured accommodation.

But at the same time, the government wants to bring in periodic tenancies as the standard and change how tenants are evicted, as proposed within its Renters Reform White Paper.

These changes are not necessarily a bad thing. For example, If you suddenly need to regain possession of your property, or decide you want a change, a periodic tenancy speeds up this process as you don’t have to wait until the end of a fixed period.

It will also help to recruit tenants who are on the lookout for a short lease contract, who otherwise wouldn’t be available to you. 

For tenants, periodic tenancies mean that they will not have to give as much notice prior to leaving a property, given that the contract will be rolling, but this could present a number of challenges that should be considered by agents and landlords.

Shorter leases

Understandably, periodic tenancies are more likely to attract tenants looking for more transient, shorter leases.

Having a high turnover of tenants will not only cost more in terms of referencing and marketing, but it’ll also mean landlords must deal with a shorter turnaround time if a tenant decides to vacate unexpectedly, which will likely increase void periods and cost money. 

If your tenant moves out during a ‘notice to quit period, landlords may be liable for paying council tax for the property for that month.

But this can be avoided, by ensuring you have a contractual periodic tenancy agreement in place to ensure this remains the tenant’s responsibility for a given length of time. 

With periodic tenancies opening up the rental market to an expanded pool of people, reports of falsified documents and disingenuous applications are on the increase.

Fraud

Fraudsters are becoming more sneaky at using the tech readily available to them to fake documents and contracts.

Agents must both recognise this as an issue and seek to address it quickly, educating landlords on why thorough checks and due diligence are as important as ever. 

Although they come with their own set of challenges, periodic tenancies can be a good idea for all parties, offering increased flexibility and reducing the number of administrative tasks required throughout a tenancy.

The lettings landscape is mid-shift, as a combined result of the pandemic, cost of living crisis and renters reform white paper.

What this means long-term is yet to be seen, but what is certain is that landlords must be vigilant and stay ahead of the ball in order to maintain consistency. 

Simon Tillyer is a director of tenant referencing firm Vouch.

View Full Article: OPINION: Would periodic tenancies change everything for landlords?

Wales to licence ‘commercial holiday lets’ landlords to help solve renting crisis

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Welsh government leaders have revealed radical plans to licence holiday lets in a bid to get tough on the causes of long-term rental shortages.

The region is to introduce a cap on the number of second and holiday homes while bringing in measures to put more homes into common ownership.

As well as a statutory licensing scheme for holiday lets, greater powers for local authorities to charge council tax premiums and increasing taxes on second homes are planned. Local authority mortgages will also be explored.

The Welsh Government has previously confirmed that it will go ahead with tax hikes on holiday lets that do not rent out their properties for more than half the year.

Its consultation sought views on the maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties and the criteria for a property to be defined as non‑domestic, self-catering accommodation.

New criteria

As a result, local authorities will be able to set council tax premiums on second homes and long-term empty properties to 300% from April 2023.

The criteria for self-catering accommodation being liable for business rates instead of council tax will also change at the same time, from 70 to 182 days.

The Welsh clampdown is being mirrored in other regions. In England, a new government study will investigate how short-term holiday lets impact housing supply across cities and coastal resorts, including looking at proposals for checks on premises, a registration ‘kitemark’ scheme with spot checks for compliance on gas safety and a self-certification scheme for hosts.

Meanwhile, new laws in Scotland will require all local authorities to set up a licensing scheme by October 2022.

View Full Article: Wales to licence ‘commercial holiday lets’ landlords to help solve renting crisis

The Right Amount Of Debt On Your Property Portfolio And Property Business

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What is the right amount of debt for a property investor?

Too little debt can be as costly as too much on your property portfolio, so maintaining your debt correctly is vital to your property business.

In this episode of The Property Tax Show

View Full Article: The Right Amount Of Debt On Your Property Portfolio And Property Business

DWP to spend £20m ejecting bad landlords from ‘exempt’ accomm sector

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Local councils in England can now apply for a share of a £20 million pot that’s been made available to drive up standards in the supported housing sector.

The government wants to hear from authorities dealing with poor quality provision or unscrupulous landlords exploiting vulnerable residents by charging high rents for poor-quality accommodation while offering almost no help.

It cites landlords providing as little support as dropping off a box of cereal but claiming £250 per week in an area where the average rent is £80.

Supported – or exempt – accommodation is non-commissioned and unregulated supported housing where tenants include ex-prisoners, addicts, rough sleepers and fleeing survivors of domestic abuse.

Landlords can apply for provider status, exempting them from local licensing regulations and housing benefit caps, meaning that councils have few powers to act over the quality and safety of homes or how tenants are treated.

Clamp down

To clamp down on the sector, the new funding programme will give councils resources to carry out inspections and enforcement activity. Alongside this, the government has introduced new minimum standards to prevent landlords from exploiting some of the most vulnerable tenants.

Local authorities will get new powers to better manage supported housing so rogue landlords can’t exploit the system, while there will be changes to Housing Benefit regulations to define care, support and supervision.

Minister for Welfare Delivery, David Rutley MP (main picture), says: “Having a settled home gives people the security to improve their lives by getting on the employment ladder or taking other steps towards financial independence.

“This, supported by changes we recently announced which will give people on benefits the choice of putting money towards a deposit, provides the chance to make progress on the pathway to home ownership.”

This programme builds on the success of £5.4 million year-long supported housing pilots in Birmingham, Blackburn with Darwen, Blackpool, Hull and Bristol.

View Full Article: DWP to spend £20m ejecting bad landlords from ‘exempt’ accomm sector

Lower EPC rating after improvements – Is there an official referee?

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I have an EPC from 2009 which rated my house as a D67 this noted that there was ‘partial double glazing ‘ and recommended that full double glazing be fitted, which would boost the rating to a C76. This was duly done.

View Full Article: Lower EPC rating after improvements – Is there an official referee?