42% of landlords to take up BTL mortgage holiday offer during crisis, survey reveals

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Research was conducted among 1,000 landlords in Scotland where landlords are able to access a much wider range of support measures than in England and Wales.

Scottish landlords fear taking a mortgage holiday will affect their ability to get lending for future buy-to-lets but nevertheless 42% will eventually sign up to one, according to new findings from property firm Portolio.

Its survey of more than 1,000 landlords found that 58% haven’t asked for a mortgage holiday, as many are worried about their credit history, and others fear they could trip up by finding out they don’t have the correct BTL mortgage.

But tenanted property agent Portolio believes as many as 40% will take the step before the COVID-19 pandemic is over.

“We’ve also spoken to three or four mortgage brokers now who have advised their investor clients not to take holidays as they are fairly sure it will have a negative impact on re-mortgage applications with some – maybe not all – lenders for the next 12 months,” says MD and founder Chris Wood.

While almost a third (60%) would struggle to pay the mortgage on their tenanted property if a tenant didn’t pay the rent, 52% have no intention of applying for an interest-free loan offered by the Scottish government and just under 30% are undecided, indicating that most aren’t keen on getting into any further debt, says Wood. 

Rent payment troubles

The survey – to discover the impact of COVID-19 on the private rented sector – also found that a staggering 50% of landlords’ tenants have trouble paying rent, with some believing this was likely to increase the longer the lockdown continues. 

Just over a quarter have experienced tenancies being unexpectedly terminated, possibly due to student tenants quitting, with almost 13% having tenants vacating properties and ditching belongings. Meanwhile, 21% of landlords report new tenancies starting during the lockdown, helped by the popularity of virtual viewings.

Adds Wood: “We found 92% feeling happy with their
letting agent during the COVID-19 lockdown. This is a testament to all those
hard-working letter agents out there who are doing a stellar job.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 42% of landlords to take up BTL mortgage holiday offer during crisis, survey reveals | LandlordZONE.

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Should I find a new tenant now?

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My tenants have now moved on. I have had the flat refurbished and I am wondering whether to try and find a new tenant now, or leave it until the Covid-19 Lockdown measures are eased.

What should I do?

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Today in politics: Universal Credit, protection for renters and safety certificates

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We look at the increasing number of Universal Credit claims, calls for extra protection for renters and claims plans to extend the deadlines on safety certificates ‘could be dangerous’. 1.8m Universal Credit claims The Secretary of State for Work and Pensions, Dr Thérèse Coffey MP, yesterday gave an oral statement to the House of Commons on the […]

The post Today in politics: Universal Credit, protection for renters and safety certificates appeared first on RLA Campaigns and News Centre.

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BREAKING: Rental property viewing rules revealed for when lockdown loosens

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A taste of how different the world of renting is going to be when the Coronavirus pandemic subsides enough to allow home moves has been revealed following talks between government and the property industry.

Details of how landlords and letting agents will have to change the way they operate rental property viewings have been revealed today.

During a webinar hosted by property portal Rightmove, industry association chief Mark Hayward revealed that following talks with ministers, many of the proposed rules around how property viewings are conducted are being hammered out.

Once these are finalised, it is expected that the private rental sector will be one of the first to be released from lockdown, along with estate agents.

The new rules will include limiting viewings to 15 minutes, stipulating that landlords and existing tenants step out of the property during viewings and that no more than two adults can view a property at any one time.

This means that, for shared properties, the ‘open house’ viewing favoured by many landlords will not be possible.

Surfaces disinfected

Unless a property is empty/vacant, then landlords will have to work with existing tenants to ensure that all surfaces are disinfected and doors left open throughout a property before a viewing starts.

Removals are also likely to be an area where practices change. Removals firms are unlikely to offer packing services after lockdown ends, and there may have to be a 72 hour gap between one set of tenants moving out and another moving in, which is the maximum length of time the virus can survive on a surface.

This will mean properties will stand empty for three days, and Hayward says both government and industry bodies are exploring who would finance this enforced void period.

Read more about lockdown landlords.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Rental property viewing rules revealed for when lockdown loosens | LandlordZONE.

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Land boundary ownership issues in Scotland?

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I rent my home to my daughter and live elsewhere. The house has been in my family’s ownership since around 2003.  On purchasing the property we had a survey completed and witnessed our deeds along with land Registered details so we knew what we were buying.

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Durham landlords propose alternative licensing scheme

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A group of landlords in Durham are urging other private landlords with properties in the county to sign up to an alternative to the council’s proposed selective licensing Scheme. Durham County Council is proposing to introduce a large selective licensing scheme, covering approximately 51,000 private rented properties. If the plans are approved, landlords with rental […]

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Possible extension to ban on evictions

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Housing Secretary Robert Jenrick faced questions from the housing select committee today on how the government will continue to support tenants after the three-month moratorium on evictions is lifted on June 25. He said a decision will be made next month on whether to extend the ban

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Planned May Day rent strike in London looks unlikely… as even Labour fails to back it

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The Rent Strike London campaign is unlikely to repeat the success of similar protests in Glasgow recently, which prompted legislation to limit rents in Scotland.

A May Day
rent strike in the capital looks likely to end up being a damp squib with
underwhelming numbers of renters signed up to protest.

Some tenants’ groups have come together under the Rent
Strike London banner, telling landlords they can’t afford to pay and calling on
the Government to pay rent for the duration of the lockdown.

But an online change.org campaign asking renters to sign
a letter of solidarity has only gathered 438 signatures, while the Rent Strike
London Twitter group has 655 followers.

Campaigners have cited the Glasgow Rent strike as an example of people-power, when 25,000 tenants in the city joined in, prompting the Government to pass the Rent Restriction Act, freezing rent at 1914 levels unless improvements were made to properties. 

Rent Strike London’s open letter to the Government on the
change.org site explains: “Signatories to this letter declare that they do not
intend to pay rent until the COVID-19 crisis is over, and that they stand in
solidarity with all other signatories. 

“We will protect each other from eviction – by ‘lawful’
or unlawful means – as well as anything else that you may try in order to force
payment or take away people’s homes. We demand that the Government legislates
for a complete suspension of rental payments on homes. If the Government
fails to do this, the strike will continue.”

The Labour party hasn’t
backed the protest although former Labour leader Jeremy Corbyn recently told
his local newspaper in Islington: “I would recommend people take actions that would help to
bring about a proper regulation of the rented sector, but do not put themselves
at risk.

“My demand is
that the Government prevent all evictions in the private rented sector but also
support people so that their rents can be paid.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Planned May Day rent strike in London looks unlikely… as even Labour fails to back it | LandlordZONE.

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Which? reveals confusion among landlords over break clauses during Coronavirus crisis

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Consumer organisation says some landlords have been using incorrect advice to keep tenants in their properties even though contracts contain break clauses.

A Which? investigation has
revealed that some landlords are wrongly refusing to let tenants move out
during the crisis because they’re worried about finding new ones.

The consumer service found
that some private landlords aren’t honouring break clauses that should allow
tenants to leave their home before the end of a tenancy agreement.

Other landlords are
pressuring tenants to continue renting homes, even though their tenancy
agreement has ended.

One renter in a shared house
in Leytonstone, east London, said her agreement stated that it cost £300 to
leave before the tenancy ends in August.

However, her letting agent
refused the request, saying it was down to the landlord’s discretion. He wouldn’t
give her permission to leave under the current circumstances, saying it would
be difficult to find a new tenant.

Another couple in Gloucestershire
needed to move somewhere cheaper as they were out of work but were told by
their landlord that he couldn’t find new tenants and asked them to stay on a
rolling basis until social distancing measures had been relaxed.

He added that they would be
breaking the law and social-distancing rules and refused to return their £1,000
deposit or provide a reference.

Which? said if a private
tenancy agreement contained a break clause, tenants should be able to use it to
move out before the tenancy ended.

If the clause says it’s down to the landlord’s discretion, renters might be able to argue that this is an unfair term under the Consumer Rights Act 2015, due to the imbalance of a tenant’s rights against the landlord’s. It added that landlords couldn’t force a tenant to stay after their agreement had ended.

Read more about break clauses.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Which? reveals confusion among landlords over break clauses during Coronavirus crisis | LandlordZONE.

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EICR Legislation Approval?

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There was a lot of heated discussion on the proposed EICR testing of all PRS homes on this forum.

Earlier this year it was reported that the legislation was going through parliamentary approval and it seemed likely it would pass through without too much amendment.

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