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Landlords Could Take Council to Ombudsman over Maladministration

Published On: October 6, 2016 at 9:48 am

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A group of landlords in Bristol could take their council to the ombudsman over maladministration regarding a proposed selective licensing scheme.

Following the success of the Somerset Property Network this summer, a group of landlords met in Bristol to discuss the way forward on selective licensing issues last week.

On the eve of the Eastville and St George licensing application deadline, the buy-to-let landlords got together to discuss their collective belief that the process of the initial licensing consultation was careless and unnecessary.

Back in August, the Somerset Property Network was formed after a group of landlords teamed up to challenge North Somerset Council’s proposed selective licensing scheme for Weston-super-Mare.

The group threatened to take the council to judicial review if the plans went ahead. At the start of September, it was announced that the Somerset Property Network had overthrown the council’s proposals.

Although the deadline for judicial review has passed for the Eastville and St George scheme – it must be put in within three months of the scheme being approved – there is still the option of taking Bristol City Council to the ombudsman over maladministration.

This came to light after Bristol landlord Anne Pargeter told her story at last week’s meeting:

“I believe that the whole thing was a shambles from the very beginning; the statistics they’ve come out with, how the consultation said the areas of Eastville and St George are in the lowest 10% for deprivation, and yet their own stats on the Bristol Council website on multiple deprivation figures state that Eastville and St George are in the top 13th and 15th, and not in the lowest 10% at all.

“I looked at this and kept thinking there is something really, really wrong here, so when I got the cabinet meeting papers of how they had come to the decision of how they were going to approve this scheme for Eastville and St George, they used three points of evidence. I discussed this with Dave Collis [Bristol City Council’s Private Housing Licensing Manager] last week.

Landlords Could Take Council to Ombudsman over Maladministration

Landlords Could Take Council to Ombudsman over Maladministration

“One, the housing condition survey of 2011. About 110 pages long, it talks about all the private housing in Bristol, but doesn’t distinguish between private housing and private rented accommodation, so really there were no statistics that they could use, because there weren’t any other than shaded maps for the whole of private housing in Eastville and St George. Besides, rented accommodation is only 21% of total private accommodation anyway.

“Two, the 427 complaints. I don’t know whether you’ve read the consultation, but for the year 2014/15, 427 complaints were received by the council for Eastville and St George, and, according to the council, this cabinet report was 24% of the total complaints in Bristol. When I mentioned this to Mr. Collis, he said: ‘That’s not true, that’s not true at all.’ I said: ‘I’m sorry, I’ve got your cabinet report in front of me, and that’s what is actually written down here.’ Collis replied: ‘Oh, I better go and have a look at that.’ I thought, yes, you better had.

“Three, the survey. Then we got onto this survey. According to the council, they were really pleased because 2,248 completed the online survey; e.g. 1,000 of those were tenants, 356 landlords or agents, etc. 1,287 said they were experiencing poor management by their landlord, 1,347 said they’d experienced poor housing conditions, etc. I mean, it was a sob story, it really was! And I looked on there and thought, this is a Survey Monkey you know, come on, I mean, anyone is on Survey Monkey!

“I looked up Survey Monkey and I found that somebody had actually gone on this site and said: ‘Come on guys, only 81 tenants have responded to this survey, we need to get others on it.’ And people from outside the Bristol area were responding with things like: ‘F-ing landlords, etc.’ Which is where these 2,248 people came from.”

Pargeter continued: “I took a photograph of this website, as the consultation finished on November 3rd and started in the beginning of August, and this was posted on October 6th. So by October 6th, only 81 tenants in the area had responded to this survey, which made me suspicious of these 427 complaints, because that was in the same year.

“So I asked Mr. Collis: ‘Only 81 tenants have bothered to fill in this survey, so where are these 427 complaints anyway?’ – which I’ve asked for under the Freedom of Information Act, but they keep stalling for various things, sending me wrong bits of paper, etc. – And I thought, surely these 427 complaints would be first in the queue to fill in this survey to say what they think of their local landlord? But no! His reply was: ‘Oh, they’ve probably all moved on by now.’ And I thought, what, in the same year, 2014/15?

“So anyway, I believe all this information within the consultation is fraudulent and untrue, and I said to Mr. Collis: ‘You’ve actually used this survey to fund your evidence to bring this in. And all these statistics that you’ve given to me here, that you’ve published to the council and given to the Lord Mayor – who agreed with this – they are completely false, and you can’t prove that they aren’t.’ He didn’t have anything to say and just continued to mumble in a very confused fashion and went away!

“I have now set up a meeting with Councillor Paul Smith, the Cabinet Member for Homes, on October 21st, so let’s see how that goes.”

Tenant Referencing’s Paul Routledge, responded to Pargeter: “What Anne has here is for infinity and beyond. Landlords in Eastville and St George can’t overturn the selective licensing decision, because it’s gone past its judicial review date, but the law is still on these landlords’ side, if they can prove that the case was perfunctory; that there were lies, deceit, inadequacies and corruption within the initial consultation to get it through.

“All of these are the definition of maladministration. Maladministration is actually an easier route to go down than judicial review, because you can take it to the ombudsman. So all Anne needs to do is build a case as an individual, and then make the case to the ombudsman to get her £470 back. Once she’s successfully done that, the precedent will be set for the other 2,000-odd landlords in Eastville and St George to get their perfunctory licensing fee back.”

He explains the needlessness of the scheme: “Take Stapleton road as an example. The Government guidelines on selective licensing mean that they have to be able to prove that at the point of selectively licensing an area, it has to specifically have 20% of poor housing stock. Stapleton Road figures, as supplied by Bristol City Council, show us: Out of 1,100 private rental sector homes, 199 houses had serious health and safety issues – 199 versus 1,100 is 18.9% (Remember the Government target is 20%, so that is 1.1% under what they’re allowed to selectively license under Government guidelines. So, immediately, the figures they’ve quoted are perfunctory).

“Out of those 199 serious health and safety issues, eight landlords were prosecuted; not for poor housing conditions, but for not getting a license! Three landlords were prosecuted for not bringing private rental sector housing stock up to standard. There were 250 complaints to the benefit office for benefit fraud, anti-social behaviour and violence within the family. Sorry, but what do these have to do with private rental sector landlords?

“And this is why we need more landlords behind us to take this further with Bristol Council. So Bristol landlords haven’t lost anything yet.”

He continues: “Standing alone can become quite overwhelming, but the way forward is in numbers, proven by the North Somerset campaign this summer. Selective licensing is all about public control over private rented sector homes, and has been on the agenda for a long time. Due to the housing crisis and the selling off of council houses, local authorities have to house people, and the only way they can do it is through the private rental sector. Landlords, you are their stock, you are in their sights, your stock is their stock.

“Once they’ve finished selectively licensing this country as much as they possibly can, by stealth, they will then consider capping rents. Once that’s started, it’s the beginning of the end and they’ll have complete control over the private rental sector in this country.”

He insists: “Landlords in Eastville and St George areas need to join the Bristol Landlord Facebook group and start spreading the word about Anne’s findings. I will be attending the meeting with Councillor Smith in October, as I think we have a very strong case for maladministration – Watch this space, as they say!”

If you’re a Bristol landlord, join the fight on these issues.

Brexit could cause short-term hit, with long-term gains

Published On: October 6, 2016 at 8:59 am

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The uncertainty being generated through the Brexit negotiations could cause short term falls in property values in Britain. However, new analysis suggests that this could present opportunities for real estate investors, according to a new survey.

Drops will remain fairly subdued given the economic outlook, the latest UK property market report from property investors M&G Real Estate states.

Panic

This report shows that despite a perceived panic in the post-referendum landscape, including the property market, investment opportunities in London will be more readily available.

In addition, the report indicates that sectors such as the private rented and long lease property will continue to provide attractive yields for pension funds and other investment types.

The outlook for the UK property market is, according to the report, now in a much stronger position to cope with any short-term uncertainty than during the crisis.

M&G Real Estates suggests that occupier markets are offering comfort, with supply issues continuing in many locations. With Britain seeing seven years of below average construction levels, rents have been rising in more prime locations.

Brexit puzzle .jpg

Overseas opportunities

Further data from the report shows that a number of overseas institutions are looking to take advantage of the slump in sterling. It appears that Brexit is largely a domestic concern, with investors from overseas looking to London as a safe haven.

Richard Gwilliam, head of property research at M&G Real Estate, noted: ‘We expect uncertainty during the Brexit negotiations to cause limited falls in capital values in the short term and commercial property remains a compelling asset class on a long term basis.’[1]

[1] http://www.propertywire.com/news/europe/brexit-negotiations-dent-uk-property-market-open-investment-opportunities/

 

 

Complaints Against High Street Estate Agents Soar by 32%

Published On: October 6, 2016 at 8:33 am

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Complaints upheld against high street estate agents have soared by 32% in the past year, according to the latest report from The Property Ombudsman (TPO).

Almost all of the complaints were resolved in favour of the complainant, resulting in record payouts for the consumer – the largest of which was over £16,000 for a lettings dispute.

Complaints Against High Street Estate Agents Soar by 32%

Complaints Against High Street Estate Agents Soar by 32%

The Ombudsman, Katrine Sporle, warns high street estate agents of the importance of a good reputation.

She says: “Overall, this is good news for consumers and redress, but not so great for the reputation of agents, who collectively paid out over £800,000 in awards. My message for those agents is simple: Pay more attention to TPO’s Codes of Practice and raise your standards.”

Last week, TPO announced that it is updating its Codes of Practice for all those in the property industry: /property-ombudsman-updates-codes-practice/

However, the report does indicate that online and hybrid estate agents continue to wage war against their high street counterparts, with many, but not all, excelling in the customer service they provide.

One of the leading online agents in the sector, eMoov.co.uk, was voted the best in the country out of over 25,000 high street and online estate agents, based on the service it provides to customers.

The Founder and CEO of eMoov, Russell Quirk, says: “It’s almost becoming an estate agency tradition that every year, TPO releases its report on the industry, and every year, the poor practices of the high street sector in particular result in an increase in complaints on the previous year.

“The high street sector is struggling in the current industry environment to say the least, and, despite being squeezed for market share by online and hybrid agents, are only getting worse, rather than pivoting with the new age of estate agency and offering a better customer experience for a fairer price.”

He continues: “Luckily, the customer now has the choice and, thanks to websites such as TrustPilot and AllAgents, can separate the good from the bad, based on reviews from real customers. That’s why at eMoov, we concentrate on how we treat the customer, not the money we gain, and our TrustPilot rating of 9.5 and our rank as number one agent out of 25,800 via AllAgents is a testament to that.

“Despite this positive evolution in the industry, selling or buying a home can occasionally be an expensive and sometimes fraught experience. The Government must now really step in and introduce licensing for all estate agents, in order to regulate against the bad guys, of which there seems to be many.”

If you’re buying or selling a property, does this news put you off using a high street estate agent?

New tool lets landlords compare rents online

Published On: October 5, 2016 at 2:27 pm

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A new tool allowing buy-to-let landlords to snoop on rents being charged by their peers online has been launched by Landbay.

The lenders’ Rent Check service permits landlords to make sure that they are receiving sufficient rent from their tenants, by comparing their own rental income with competitors.

Trends

Using UK wide figures, the postcode widgets take the data from Landbay’s monthly Rental Index. This Index maps both monthly and annual trends in rents, by geographic location and by number of bedrooms.

In addition, this new tool allows users to access data which shows how rental movements for a specific property type have altered over time. These figures give unique insights into both movement in the market and social mobility.

New tool lets landlords compare rents online

New tool lets landlords compare rents online

John Goodall, CEO and co-founder of Landbay, noted: ‘The UK is in the midst of a housing crisis and a severe supply/demand imbalance, meaning the rental property market is buoyant. Together, Landbay’s Rental Index and the Rent Check tool will give both tenants and landlords a simple way of accessing data from across the UK, not only providing an in depth view of the market, but helping inform their next move.’[1]

‘In times of low interest rates and a lack of home ownership and affordability, we’re pleased to be able to offer people a way of affirming the rent they are paying in their region,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/new-tool-enables-landlords-to-compare-rents-online

Failure to Comply with Right to Rent will be Criminal Offence from December

Published On: October 5, 2016 at 10:15 am

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Failure to Comply with Right to Rent will be Criminal Offence from December

Failure to Comply with Right to Rent will be Criminal Offence from December

Yesterday, the Home Secretary, Amber Rudd, announced at the Conservative Party Conference that failure to comply with the Right to Rent scheme will become a criminal offence from December.

As of 1st February this year, all landlords and letting agents in England have been legally required to conduct immigration status checks on all prospective tenants under the Right to Rent scheme. Those that do not comply with the new law can currently face civil penalties, such as fines of up to £3,000.

However, for many months now, the criminalisation of the Right to Rent scheme has been in discussion in the House of Commons.

Rudd has now confirmed that failure to comply with Right to Rent law will become a criminal offence as of December 2016.

All landlords and letting agents must be aware of their duties, to avoid facing criminal sanctions. The Home Office has compiled information for landlords on how to conduct the immigration checks: /home-office-reinforces-landlord-responsibilities-right-rent/

Reacting to the news, the Managing Director of the Deposit Protection Service, Julian Foster, says: “Although landlords will always want to operate within the law, ever changes in the regulatory environment can mean that many fall foul of legislation without realising it.

“Pressures on landlords can be significant, particularly those who are also in full-time work, so it’s vital that they receive sufficient information and support whenever the rules change.”

He insists: “Anyone letting out property must fully understand regulations that affect them, as well as their obligations as a landlord to both their tenants and the authorities.”

We remind all landlords of their responsibilities under Right to Rent and to stick to the law at all times.

To keep up to date with your obligations as a landlord, remember to check back to Landlord News regularly for daily advice and updates.

Housebuilding recovers during September

Published On: October 5, 2016 at 10:02 am

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Housebuilding activity increased during September at the greatest rate seen since January. Many developers reported sustained demand and improved market conditions.

The upturn in residential property activity has assisted the construction industry in returning to growth, with the Purchasing Managers’ Index (PMI) showing its first growth for four months.

Rises

In September, the PMI reading was 52.3, above the score of 50 which represents stagnation. This figure was also above the 49.2 recorded in August and more than the 49 expected by economists.

Tim Moore, senior economist at IHS Markit and author of the Index, noted: ‘UK construction companies moved back into expansion mode during September, led by a swift recovery in residential building from the three-and-a-half year low recorded in June.’[1]

‘Resilient housing market conditions and a renewed upturn in civil engineering activity helped to drive an overall improvement in construction output volumes for the first time since the EU referendum. A number of survey respondents noted that Brexit-related anxiety has receded among clients, although it remained a factor behind the ongoing decline in commercial building work.’[1]

Housebuilding recovers during September

Housebuilding recovers during September

Moving forwards

Given the need for new homes in Britain, the rise in new home construction is a sure step in the right direction. This should be helped by the announcement of Government support to increase new home delivery.

John Tutte, chief executive officer at Redrow commented: ‘It is encouraging to see housebuilding has not been impacted by Brexit and is underpinning an upturn in UK construction activity.’[1]

‘At Redrow we have been gearing ourselves up for growth over a number of years, building many more high quality homes to create new sustainable communities in response to increased demand. Last year we increased completions by 17% and we have doubled our annual output over the past five years to 4,700 much-needed new homes-our forward order book is also at record levels,’ he continued.[1]

Concluding, Mr Tutte said: ‘Any Government policy that has the potential to continue to accelerate housebuilding is very welcome but, as ever, the devil is in the detail and we are watching closely to see how this unfolds in the run to the Autumn Statement. Meanwhile, we are doing whatever we can continue to build more new homes, including efforts to boost the number and quality of the talented people we employ to overcome the skills shortage and also continuing to identify and acquire high quality sites.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/10/swift-recovery-in-housbuilding-as-brexit-fears-fade