‘Eviction ban rules enable rent-dodging tenants to live in properties for free’

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Every time a government minister extends the evictions ban or modifies the rules, a collective groan of frustration can be heard from many landlords.

While most understand that struggling tenants need to be protected from the economic ravages caused by Covid, and that the eviction bans is needed to stop the most vulnerable losing their homes, it doesn’t help landlords who have tenants using the ban to avoid paying rent.

The blanket nature of the current ban on bailiff evictions, the six-month notice period and severe restrictions on who can be evicted mean many landlords with deliberate rent dodgers whose cases are unconnected to pandemic-induced financial problems face an expensive. frustrating and ever-lengthening wait to get their properties back.

We spoke to one landlord, Andy Emery (pictured, above) from Peterborough to hear his story.

He tells LandlordZONE that he’s had several tenants suffering financial challenges within his multi-property portfolio, and that he’s been flexible, working with them successfully to keep a roof over their heads.

Taking advantage

“But we had one middle-aged male tenant who was already well in arrears before the pandemic and since the evictions ban has clearly been sitting in the property taking advantage of the restrictions,” he says.

Emery says the man moved into the £500-a-month property in 2019 and paid his rent for four months but then, due to heavy drinking, lost his job. The rent payments also then stopped.

All communication from him also ceased so at the end of 2019 Emery served a Section 8 notice and secured a court date for February 5^th last year which the tenant didn’t turn up to, at which point he had run up four months’ arrears.

“We were awarded possession and instructed bailiffs to evict on the 18^th March, just before lockdown. The bailiffs turned up to find a note on his door saying he was self-isolating.

“After speaking to neighbours later that week, it was clear this wasn’t true but he had managed to delay things for two weeks (the period of the isolation) but then five days later England went into lockdown, so that was it.”

New date

Emery says that during the subsequent months, confusion among bailiffs and changing official messaging meant it took until mid-November to secure a new eviction date.

But no sooner had that happened than the Prime Minister announced the second lockdown, followed now by a third lockdown and eviction ban extension.

Emery is resigned to the fact that he will not get the tenant out for many months and is already sitting on 15 months of arrears and a loss of at least £8,000 in unpaid rent and costs.

“I’ve written to my MP about this and got a bog-standard response; I don’t think they or the government understand the fix many landlords are in with tenants like this,” says Emery.

“I realise this is an isolated case and that I can absorb the costs, but if I was a landlord with just one property this would be a financial disaster about which I could do nothing.

“There needs to provision within the evictions guidelines to prevent tenants like this taking the mickey.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Eviction ban rules enable rent-dodging tenants to live in properties for free’ | LandlordZONE.

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Social housing tenants experience the lowest levels of life satisfaction…

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New research by a leading UK letting agency, based on the 2019-20 English Housing Survey (EHS), uncovers these disturbing facts.

Tenants in the private rented sector (PRS) also suffer from a degree of anxiety but not to the same extent as socially housed tenants, despite most of them enjoying a greater degree of security of tenure and subsidised rents.

The survey reveals that around 74% of private rented sector tenants were satisfied with life; 78% felt that life was worthwhile; 73% were happy; but around 29% experienced some level of anxiety.

It compares with socially housed tenants who have the lowest levels of life satisfaction and they experience the greatest levels of anxiety.

Letting agents Apropos, a UK-wide letting firm, has analysed the latest 2019-20 English Housing Survey (EHS) in depth which shows that social renters have the lowest levels of life satisfaction (71%); are least likely to believe that life is worthwhile (74%); and have the lowest levels of happiness (70%) compared to all other housing groups. The survey also states that social renters also experience the highest degree of anxiety (32%).

Perhaps not surprisingly, home owners are the most satisfied group in the property sector 79% satisfied reporting that they are satisfied with their lot; 81% believing that life is worthwhile; 78% were happy, while 25% were anxious.

David Alexander, joint Chief Executive Officer of apropos, commented:

“This survey highlights just how much needs to be done to improve the home lives of many millions of people. Given that this survey predates the coronavirus pandemic it is a sad indictment that so many people in social housing should feel anxiety and have the lowest levels of happiness. Equally it is extraordinary that so many people should feel anxious in their homes when this is the place, they should feel safest.”

“The last year has simply confirmed that for all of us our homes are central to our wellbeing. Having a home where we feel safe, secure and happy is a prerequisite for all in society so to have so many people unhappy in their residence is something that needs to be addressed.”

One of the reasons for the discrepancy in these groups’ levels of satisfaction, which the EHS survey reveals, is the levels of overcrowding in the social sector. Social tenants face the highest levels with 8.7% recorded in this latest survey, an increase of 35.9% (up from 6.4%) over the last five years.

The survey also found that social renting is the most static of the three main housing groups, with 145,000 moves among the 4.0m in 2019-20 in the sector. 23,000 people moved from the social to the private rented sector, with an undisclosed number (because the sample size is so small) moving into owner occupation.

The PRS had 703,000 moves in 2019-20 within its 4.4m renters with 131,000 new households; 192,000 buying a property; and 74,000 moving into social renting. 99,000 people moved from property owning into private renting.

David Alexander continues:

“The issue of increased overcrowding in the social renting sector is clearly concerning and I would urge government to address this immediately. The social housing sector is quite static in that once people are housed, they rarely move and there needs to be greater fluidity so that people feel they have options to move into the PRS or into buying a home at some point in the future. The notion of entering social housing in your 20’s and remaining there for the rest of your life does not seem sensible in the current housing market.”

“Greater flexibility on tenure within social housing is required so that larger properties are redistributed according to need; increased cooperation and liaising with the PRS; and more building projects for the coming decade to cope with the changing demands of renters and the expected growth in population across the country. Housing is a complex and constantly changing issue and governments and local authorities need to be sensitive to the demands of buyers and renters to reflect their fluctuating needs more adequately.”

Mr Alexander concludes his verdict on the research by saying:

“The pandemic has simply highlighted and accelerated changes which were occurring anyway and coming out of this period we need to develop an approach which encompasses more desirable social housing, improved relationships with the private rented sector, and a more unified approach to delivering effective, and appropriate homes for the future.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Social housing tenants experience the lowest levels of life satisfaction… | LandlordZONE.

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National Residential solve any problem to sell buy-to-lets for the best possible price.

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Helping Landlords Sell

Being a private landlord myself, with 100 properties in my portfolio, I first-hand understand the issues and challenges facing landlords today. It’s about overcoming solutions fast, but also in a way that means both the landlord and the tenant are happy. With National Residential, we’ve found the sweet spot when it comes to helping landlords sell, so we’ve become experts in taking away the stress. We know how to solve every barrier that landlords come up against, even for example when they can’t gain access to their own properties.
 

How do I get the best price for my buy-to-let?

This is where I and my team at National Residential go above and beyond to get you the highest price for your buy-to-let, no matter what challenges you need to overcome. Be that negotiating with your tenants, sorting out repairs, and even helping tenants relocate, we have the best team to do it all and have the track record to prove it.

The result? We deliver you the best price possible, fast, no problems.

Recently, one of our landlords based in London gave us a small portfolio of 7 properties in the North-East to sell. She was already with a great letting agent who did sales, but she came to us because she’d heard about how proactive we were at solving landlord issues.

We did what we do best:

1. We marketed the properties to both landlords and to first-time buyers in order to get as many buyers as possible in competition with each other to drive up the price through our 28-day auction. Rather than just targeting other landlords who want to buy, we know how to negotiate with tenants to leave for first-time buyers to move in, which also means this added competition leads to investors paying a little more than otherwise.
2. To keep the tenants on board to do the viewings, and market the property to its maximum, we paid them to help us with getting photos and video tours and to allows us access for viewings. For that extra £100 or £200 all in this money ensures the cooperation of the tenant. No other agents will pay this and landlords are unlikely to propose this, which is why we get access to sell properties quickly and for the best prices, like we did in this case.
3. In this case we sold 4 from the 7 properties for this landlord to a mix of investors and first-time buyers. She decided to keep the remaining 3, but it cost her nothing to list them with us as it’s no-sale-no-fee. It was a win-win, and she was happy with 60% of her portfolio sold, fast and for the best price.
4. Of the 4 we sold; one we sold to a landlord who kept the existing tenant. Another we sold to the current tenants who paid a higher price due to other interested buyers driving up the price/bids. The other two we assisted the tenants to leave as the buyers required vacant possession. We found one of the tenants a new council house, and the other tenant was happy to accept a £2K payment paid by ourselves to help move into a new private let. Solving the tenant issue meant the property sold for a higher price and the tenant was over the moon to get assistance to move to the new property they wanted.

Throughout the sale, our in-house conveyancing team helped the landlord complete all their property forms (protocol documents) and we paid to obtain copy Fens certs, gas safe certs and reply to enquiries asap rather than wait for solicitors. We also paid all the fees to the tenants for their assistance, and we paid the sellers legal fees to our panel solicitor.

The landlord was provided with a stress-free armchair service as we took care of the costs and drove the sales to completion.

On top of this, as with every case, all our buyers are chain free and pay 1% (min £2500) deposits, ensuring that buyers, regardless of whether they’re first time buyers or landlords, are financially committed to the sale from the start and are able to complete quickly.

All these properties sold within 28 days and completed in 2 – 3 months.

Another landlord approached us earlier in the year with tenants that had stopped paying rent and tenants that were in arrears and not paying top-up, even refusing access for valuations.

For this, we simply secured buyers who were happy to buy regardless and take on the issue. Then we connected the new buyers with Landlord Action to pursue the eviction and/or mediation service throughout and post-completion.

It’s simple. We solve all problems and go the extra mile to get tenanted properties sold and to get the best prices and complete quickly. We assist landlords, sellers and tenants all the way through the process.

It’s clear our solutions are working, with well-known trusted figures such as Paul Shamplina joining forces with myself, and the expert panel at National Residential, in a recent webinar.

Is Covid really a problem for Landlords trying to sell?

Despite what you may have heard or experienced, the answer is no, it doesn’t have to be.

During Covid we’ve decided to go all-out to help landlords who are hit by section 24 taxes, by the pandemic, and by the evictions ban – as we have investors who want to get into the buy-to-let market, so we’re acting as a consultancy/sales machine in the middle.

We do a far better job at getting the best prices for tenanted properties and getting deals over the line than traditional estate agents do. We hand-hold tenants whose landlords are selling up and we also have national reach unlike most local agents helping landlords sell their portfolios in different locations. Not only that we have landlords who will buy properties where tenants totally refuse to cooperate and allow access for viewings or surveys. We have even sold properties recently for amazing prices where the tenants are not paying the rent.

You only have to read our reviews on Google and Trustpilot to see that we’re a company who absolutely delivers what we say.

Other Landlord services

If you’re a Landlord who’s looking for help with selling a tenanted property, or if you are an active investor looking to buy great deals, myself and my team at National Residential know exactly what to do and how to help you. We also have a great Membership site which has access to experts, webinar recordings from our panel of trusted property experts like Paul Shamplina and most importantly great deals (HMO’s and tenanted sales being hot to trot!). I and my expert panel also offer Mentorship and portfolio building, and it’s completely FREE to sign up.

So if you’re a Landlord having problems, or want us to help you buying or selling a portfolio, or even just want to reach out to experts who know exactly what you need, just get in touch on 01244 341066 or use the call back form here and see for yourself what we can do for you.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – National Residential solve any problem to sell buy-to-lets for the best possible price. | LandlordZONE.

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Guest blog – Ome’s 2021 predictions for the rental market

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Ome is part of the Hamilton Fraser family, a Deposit Replacement Scheme re-imagining renting through pioneering transparency and choice.

Ome allows renters to reduce the upfront costs associated with renting by replacing traditional deposits with small non-refundable monthly payments.

Established in early 2020, Ome has some predictions for the rental market in 2021…

For more information visit omehq.com.

Ome’s 2021 rental predictions

As 2021 begins, the coronavirus pandemic continues to dominate public consciousness, having a lasting impact on jobs, wages, education, legislation, and health.

And it seems inevitable that this ongoing crisis will impact rental trends this year too.

At Ome, we have four major predictions for the upcoming year:

1. Renters will choose suburbs over cities
2. There will be an increased need for financial flexibility
3. There will be a tenancy boom in early 2021
4. More people will opt for deposit replacement schemes

Suburbs over cities

As people continue to work from home where possible, in accordance with government guidance, we predict that suburban properties will remain more attractive than city dwellings. This is due to the space and value for money they offer.

This prediction is supported by data from Rightmove, which reported that enquiries from city residents for village locations increased 126 percent in June and July 2020 compared to the same period last year. They refer to ‘the shift in more buyers looking to move outside big cities’ which began in April and is continuing.

SpareRoom.com compiled similar research and LandlordZONE reported that 27 percent of renters in London are waiting to move once restrictions lift; with half of them expecting to leave the capital.

In addition, according to a recent survey of over 1,700 renters by letting agent Benham and Reeves, fast broadband was the number one feature renters looked for in a rented property, overtaking access to good transport links which had topped a previous poll. Perhaps this demonstrates that as long as suburban houses have strong internet for home working, there is little need to be near big cities in order to work.

Need for financial flexibility

The devastating impact of the current pandemic has resulted in the UK’s unemployment rate being the highest it has been in three years.

According to the ONS the unemployment rate for those aged 16 and over stood at 4.8 percent from July to September 2020 and of those out of work around 60 percent are young people. SpareRoom reported that almost a quarter of 23-29-year olds left their rented accommodation during the pandemic to save money.

In addition, analysis of the private rental sector conducted by the London School of Economics suggests that there could be three times the current number of private tenants in rent arrears in England in the next 12 months.

However, perhaps one of the benefits of the financial uncertainty caused by the pandemic is that people will become more financially aware.

Therefore, our prediction is that those who choose to remain in their rented accommodation will look for more flexible and affordable options to help them manage their finances.

For advice on managing your properties as a landlord during the financial uncertainly caused by the pandemic, check out the Hamilton Fraser guide What should I do if my tenants can’t pay rent?

Early 2021 tenancy boom

In November, LandlordZONE reported  that the rental market had bounced back in May after the lockdown during March and April 2020.

Our analysis revealed that although market activity slumped by 31 percent during March to May, new tenancies increased by 22 percent year on year, from the beginning of June to end of August.

Using this data, we predicted that the second national lockdown in November will also be followed by a boom in tenancies. This prediction remains likely to materialise as the third national lockdown, which was announced by the Prime Minister on 4 January 2021, will see the housing market remain open.

This third national lockdown (like the previous one) has not caused a total shutdown of the market but renters are still encouraged to view properties online, which could cause them to wait until later in the new year. However, it is impossible to foresee exactly what will happen due to the disruption caused by constantly changing restrictions and continued public health crisis.

Increased use of deposit replacement schemes

Deposit replacements offer an alternative to traditional upfront cash deposits that are taken at the start of a tenancy.

This new model has grown in popularity over the last few years to support renters’ desire for choice and flexibility with their cash flow.

We predict that, due to cash flow issues exacerbated by the pandemic, more renters will utilise deposit replacement options which reduce the upfront costs associated with moving; instead, relying on small non-refundable monthly payments.

Deposit replacement schemes also remove the ‘double bubble’ issue whereby renters are usually asked to pay for a new deposit before receiving the funds back from their previous deposit.

For more information about the pros and cons of different types of deposit replacement schemes, check out the blog by the Property Redress Scheme, ‘What are the risks of ‘do-it-yourself’ deposit replacement schemes?’

It is impossible to predict exactly what next year will bring, especially after the disruption and difficulties wrought by coronavirus. But, as the light at the end of the tunnel appears through vaccine development and roll out, it is possible to look towards the end of the COVID-19 crisis.

For a more in depth look at what is in store for the rental market in 2021 check out the full Ome blog here: https://www.omehq.com/2021-rental-market-predictions/

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Guest blog – Ome’s 2021 predictions for the rental market | LandlordZONE.

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First hefty fine of the New Year slapped on HMO landlord in Reading

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It’s only 13 days into the New Year but Reading Council has already secured a heavy fine for a local landlord, who must now pay £66,000 after flouting HMO rules.

Mohammed Naseer Zamir, 41, had claimed that his property in Short Street consisted of two self-contained flats, each one occupied by a single household, when in fact it was an HMO.

During several visits, the council’s private sector housing team then identified serious security and fire safety concerns, as well as general disrepair.

The main external entrance door was insecure, leaving the property vulnerable to intruders, while fire precautions weren’t properly maintained, putting the occupants at risk.

A long list of safety issues were also spotted, including socket outlets next to shower cubicles, taped-up electric cable to a fridge freezer and poorly maintained socket outlets.

No current gas safety certificate was supplied when requested and concerns about fire safety were so serious that the fire service was brought in to carry out a joint inspection.#

Ignored informal requests

Reading Magistrates Court heard that Zamir failed to comply with the council’s written request for information about the property and then, despite being given the opportunity to address matters informally, failed to carry out the necessary work.

He was found guilty of one charge of failing to comply with the Local Government Act and 13 HMO management regulations charges. He was also ordered to pay £4,480 costs and a victim surcharge of £181.

The council’s lead member for housing, John Ennis (pictured), says this acts as a stark warning to landlords to comply with the rules.

“Our Reading Rent with Confidence scheme is also helping by awarding gold, silver and bronze standards based on quality of accommodation and good management practices,” he says.

“By providing good landlords with a market advantage and potential tenants with confidence, along with prosecuting substandard landlords, we are driving up living conditions for Reading’s residents.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – First hefty fine of the New Year slapped on HMO landlord in Reading | LandlordZONE.

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EXCLUSIVE: Landlord wins battle with DWP over ‘failing’ UC payments system

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A Nottingham landlord has vowed to keep challenging the DWP with possibly hundreds of complaints after scoring his second victory against the Department of Work and Pensions (DWP).

The Independent Case Examiner (ICE) has ordered it to apologise for the mistakes it made dealing with Mick Roberts – who operates one of the largest private property portfolios in the city – and to implement the recommendations by 9^th February.

Last May, Mick received another rare apology from the DWP over problems he encountered while attempting to register an Alternative Payment Arrangement (APA) for one of his tenants. However, it took two years for the ICE to find in his favour.

This time the problem started in 2016 when a tenant in one of his shared properties, who owed eight weeks rent, made a live service claim to Universal Credit.

Mick then requested an APA and, after waiting more than a year, found it wasn’t clear which tenant the payment related to.

In 2019, he made a number of complaints to the ICE which has now found that the DWP failed to:

• Acknowledge and use the letter of authority sent by the tenant;
• Include appropriate reference details when making direct payments into his bank;
• Call him to discuss his complaint;
• Consider the impact that sanctions on his tenant would have on the accrual of rent arrears;
• Consider his request to save his bank details to use across his records.

However, the ICE didn’t accept that the DWP should repay Mick £7,900 he was owed in rent arrears.

Mick tells LandlordZONE that the experience has made him decide not to take on any more tenants on benefits, but he adds: “It’s the system that’s at fault.

“Yet again there’s no financial redress and you wonder if there’s any point in complaining about the DWP, the massive financial losses and mistakes for them to say, ‘Oh sorry, the tenant is now homeless’.”

He currently has 20 more complaints with ICE regarding tenants on UC, and potentially 350 more.

Mick explains: “With all the potential tenants I have that will be switched onto UC in the next five or so years, unless UC sorts themselves out and start talking to landlords, then – at the rate it keeps making mistakes on every single claim – I can’t see the complaints stopping. They beat you down with stupidity and bureaucracy, but I’m going to keep fighting.”

Read more about DWP’s APA payments system.

PIC credit: Nottinghamshire Live.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Landlord wins battle with DWP over ‘failing’ UC payments system | LandlordZONE.

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Accountant vs. Tax Software ‒ When to use each option

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With new Making Tax Digital (MTD) rules from HMRC soon to come into effect, landlords and any other self-employed individuals will have to submit their accounts directly to HMRC via recognised software. The changes will create a sudden demand for tax software, inspiring a number of developers to create MTD-ready software.

Yet, if everyone is required to use MTD tax software, you may wonder what happens to accountants. Do you simply replace your accountant or is there still opportunity for them to add value?

While MTD tax software does, effectively, replace your accountant, things aren’t always that straightforward. While you may receive advice and updates from your software provider, there may still be some situations where contacting your accountant is preferable.

When should I use an accountant?

As a landlord, you’ll know that accountants don’t come cheap. Even the most cost-effective accountants still charge hundreds of pounds. While the received logic is that accountants should save you more money than they cost, it doesn’t always work out like that. In fact, as technology has improved and the tax system has become simpler, accountants are adding less value than ever, especially for relatively simple accounts.

Tax software, however, can’t give you specific advice – not until AI gets a lot better, anyway. If you need someone to investigate your tax situation or it’s particularly complex, an accountant is probably the best way to go. They can provide personalised advice that can prove really valuable.

Here are some situations where an accountant may be the best option:

1. Complex, multi-level tax affairs
   Earning income from a variety of sources, such as property, capital gains or inheritance, can develop a large and complex tax portfolio. When there is lots of complexity and money involved, you may find more peace of mind having a dedicated accountant looking after your tax affairs. They may also be able to find more tax efficiencies using some creative thinking that, at the moment, software lacks.

2. Creating long-term tax plans
   Software is designed to keep you on top of your current tax situation – not plan or prepare you for the long-term. Tax software might, for example, show you a real-time estimate of your tax liability but won’t show you how to plan for the following year or make suggestions on how to make the most of your allowances. If you want a long-term tax plan, it’s best to speak to an accountant who can understand your needs and take you through the process.

3. Difficulty keeping organised
   Some of us are more organised than others. Keeping accurate and up-to-date account information isn’t always easy, especially when you are busy or have a lot of paperwork. As a result, many of us leave it until the last minute to complete our tax returns. If that sounds like you, an accountant may be an easier solution. It may be a pricey solution but you can rest easy knowing your accountant will take care of all the paperwork on your behalf.

4. Great relationship with your accountant
   If you’ve used the same accountant for a number of years, you’ll likely have built up quite the rapport. Even if you could reduce your accountancy fees, you may value that relationship more than the difference in cost. One way to keep costs down while maintaining the relationship with your accountant is by using software to do most of the heavy lifting, getting your accountant to add value and create tax plans.

When should I use tax software?

For the majority of landlords, your tax portfolio will be fairly straightforward and could be better managed with tax software. While software can’t give you advice or find ways to save, it will reduce your accounting fees and make it quick and easy to submit your tax returns.

By using tax software, you will also prepare your business for the coming MTD regulations, putting you more in control of your tax affairs.

It may be better to use tax software if…

1. Tax self-assessment is something new
   If you haven’t submitted a self-assessment tax return in the past, it can seem a bit daunting and expensive. Tax software not only walks you through the information you are required to provide, but it will also do all the calculations for you and submit your tax return directly to HMRC – all without the need for an accountant.

2. Saving for your tax bill is difficult
   Putting aside the right amount of money to pay your tax bill come January isn’t always easy. You may have fallen on hard times this year, for example, due to the coronavirus, and needed to dip into your savings. Without completing a tax return, it is hard to know how much you would owe at the end of the year. Tax software can provide a real-time estimate of your tax based on the current information, helping you put aside just the right amount and avoid nasty surprises in January.

3. You are short on time
   While your accounts may be straightforward, it can still take a large amount of time to prepare your accounts. You need to download bank statements, find receipts, identify relevant transactions and then sit down and complete all the paperwork. Some tax software, such as APARI, allows you to simply upload your bank statements and tag the relevant transactions, completing all the calculations and paperwork for you.

4. You are short on money
   Being a good landlord requires some upfront costs which can leave you struggling financially at times. Accountants, on the other hand, are notoriously well-paid. The great thing about MTD tax software is that many providers offer a basic plan for free. Only if you need a particular service, such as a conversion to the old style self-assessment tax return or some specific accounting advice, would you need to pay anything!

5. You’re know what you’re doing
   Some landlords like to keep financial records for their own benefit. If you have fairly good records then your accountant may not be adding much value – only working out a few basic percentages, putting it into the correct format, and submitting. Tax software can provide an easier way to keep track of financial information as well as completing all the work usually done by your accountant, saving you time and money.

Regardless of what your tax affairs look like, you will be facing a transition to MTD tax software in the next few years anyway. So, even if you have a complicated tax situation and an accountant you get on well with, you will still need to start using software soon.

By adopting tax software now, you will be able to better organise your taxes in digital format, saving you time and money now, and stress later. The worst that can happen is that you will find the new approach difficult and ask your accountant to step in, potentially saving time and money anyway. So, why not start now and simplify your tax?

Get started with a free MTD account from APARI.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Accountant vs. Tax Software ‒ When to use each option | LandlordZONE.

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EXCLUSIVE: Rent Smart Wales rebuffs NRLA criticism of its performance

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Landlord registration and licencing authority Rent Smart Wales has rebutted criticism of its performance contained within a report published by the National Residential Landlords Association (NRLA) earlier this week.

Rent Smart Wales has told LandlordZONE that it is “recognised by many stakeholders as being a success”. It also says the NRLA’s report is not independent and has relied on ‘outdated information’ and minority views from its local membership.

The NRLA’s report criticised the organisation for lacking transparency, accountability and for creating unnecessary duplication of effort between itself and local councils.

In response, a Rent Smart Wales says: “The NRLA itself concludes that the scheme has been successful in meeting its targets.

Five years on

“Five years on, 106,936 landlords have registered, 48,986 landlords have become licensed, 5,149 agents are licensed and 215,241 properties across Wales have been registered.

“Education and availability of information is key to securing long-term improvements to the private rented sector.

“More than 57,000 landlords and agents have completed training to become licensed with the vast majority reporting that it has helped them to better manage their businesses; while tenants of licensed landlords can be reassured that their property managers are fit to manage and well informed of their responsibilities.”

Long waits

But Rent Smart Wales does admit that landlords faced long waits when applying to be registered when its scheme first opened for applications in late 2016.

It claims that consultations with stakeholders including the NRLA led to improvements to processes, communication and its website.

“We are always looking to improve our service and a review of the NRLA report will be undertaken with this in mind…we are pleased that the NRLA has acknowledged the considerable work already achieved and the potential for a wider Rent Smart Wales role in the future.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Rent Smart Wales rebuffs NRLA criticism of its performance | LandlordZONE.

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LATEST: Government clarifies position on evictions for landlords

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The ministry of housing has clarified the current rules for landlords waiting to evict tenants in England following growing confusion within the sector.

Several landlords have been in touch to ask LandlordZONE what the current position is following three lockdowns over the past 10 months during which there have been several changes to the evictions regulations including this week when the ban on evictions taking place in most cases was extended to 21^st February and potentially, beyond.

And one official at a London county court last week appeared confused by it all too, conflating a Section 21 notice and a bailiff’s 14-day N54 Notice of Eviction.

This is because although landlords are able to give tenants a notice seeking possession (known as ‘notices of eviction’), possession hearings are continuing within the court system and possession orders are being granted. It is bailiffs that have been told not to proceed including the serving of any 14-day notice of evictions.

So when can landlords evict a tenant?

We approached the Ministry of Housing, Communities and Local Government and the High Court Enforcement Officers Association (HCEOA) for clarification, and they have now both confirmed this:

• In most cases Landlords must still give six months’ notice on notices seeking possession, which means when tenants are given notice now a court claim cannot begin until mid-July. MHCLG says this gives tenants ample time to find alternative support or accommodation and is “an important protection to all tenants”.

• Bailiffs cannot serve any notices of eviction or undertake evictions until 21^st February except under certain exemptions including now where tenants are more than six months in arrears.

“[But] you can only use the six months’ arrears exception if your original order was based on rent arrears,” says Andrew Wilson, Chairman of the HCEO.

“A further application to court is required to take advantage of the exception and a copy of the order allowing it must be supplied to either the bailiff office or the HCEO – if permission is granted to transfer the matter to high court for enforcement purposes – before the bailiff or HCEO is permitted to move to eviction.”

• Landlords cannot enforce evictions for possession orders granted under section 21 of the Housing Act 1988, or in other words ‘no fault’ evictions, until after 21^st February.

“Although on the face of it the reduction in rent arrears being owed to six months seems a positive move for landlords, requiring an application to be made for the court to be satisfied that an exemption exists is another costly procedural step,” says Tim Frome (pictured) of Landlord Action.

“It is not clear when the six months rent arrears should be calculated from, there has been some commentary that it should be when the warrant for possession was either granted or is applied for.

“The other unknown is whether a hearing would be called by the Court to deal with the matter or whether it can be undertaken by a judge on the papers of the application.”

MHCLG also yesterday updated its advice on evictions for landlords and has also told LandlordZONE that it “will review whether an extension to this measure is needed and provide more detail on this in due course taking into account public health advice.”

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The Madness of Housing

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Those who have read Douglas Murray’s recent fascinating book, The Madness of Crowds may have been struck by the parallel with Housing.

Whilst Murray explains the Social justice movement effect on Gay, Feminist, Race and Transgender issues, the effects are far more reaching. 

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