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Em Morley

Evictions in England and Wales will see a ‘truce’ for tenants over Christmas

Published On: September 14, 2020 at 10:26 am

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Categories: Law News

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ban on evictions

The Government has provided a further update regarding legislation for private rental sector possession cases in England and Wales.

Once the ban is lifted and cases are yet again heard, evictions by bailiffs will still be suspended in locked-down areas and over Christmas. Exact dates for this have not yet been confirmed by the Government.

Court proceedings for evictions are due to continue from 21st September.

Housing Secretary Robert Jenrick has said: “We have protected renters during the pandemic by banning evictions for six months – the longest eviction ban in the UK.

“To further support renters we have increased notice periods to six months, an unprecedented measure to help keep people in their homes over the winter months.

“It’s right that we strike a balance between protecting vulnerable renters and ensuring landlords whose tenants have behaved in illegal or anti-social ways have access to justice.”

Alicia Kennedy, Director at Generation Rent, comments: “It is welcome that renters will not face eviction by bailiffs around Christmas or where there are lockdown measures. 

“But outside that, thousands of renters who have had eviction notices during the pandemic still have no assurance from the Government whether they can stay in their home.

“Those who have lost income will find it difficult to find a new home so face many months of uncertainty, getting deeper into debt. The Government must offer them more support than a Discretionary Housing Payment pot that was set up before the pandemic hit.”

Timothy Douglas, Policy and Campaigns Manager for ARLA Propertymark, says: “Over the past few weeks the Government has drip-fed updates about evictions to the sector making it impossible for agents to respond and plan for the difficult months ahead. 

“The UK Government are moving the goalposts, introducing measures that will be difficult for many to implement, including staying on top of rapidly changing local lockdowns.  

“Whilst it looks like there will no further delays on the resumption of possession hearings, agents have profound concerns about investment in housing and this announcement offers no further support for the sector.

“The Government must now look at additional measures to provide direct finance to landlords and tenants to cover COVID related arrears and help boost confidence in the sector as we head into the winter.”

Mary-Anne Bowring, group managing director at Ringley and creator of automated lettings platform PlanetRent, comments: “There’s no doubt that thousands of renters that are suffering financial difficulty will be happy to hear the news from the Government around the winter period and will now feel more secure in their homes.

“With all of the uncertainty going on at the moment, tenants deserve to be protected by the Government from evictions that could be through no fault of their own, and could well be down to financial hardship brought on by being furloughed or losing their job altogether.

“However, it should be noted as recent research by the National Residential Landlords Association pointed out that the majority of landlords are trying to work with their tenants to resolve any issues such as rent arrears.

“Tenants and landlords should be working together in what is a difficult time for everybody, and should not use the eviction ban as an excuse to mistreat the property they live in or withhold rent if they are not in a genuinely financially difficult situation.

“Some renters may need more financial assistance from the Government but cancelling rents or getting the Government to pay would be hugely damaging.”

Tenant fees ban: Are agents and tenants remembering their responsibilities?

Published On: September 11, 2020 at 8:08 am

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Categories: Tenant Fees Ban

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A busy rental market combined with unsettled economic conditions increase the possibility of some letting agents charging tenants fees illegally, says PayProp.

The rental payment automation platform says agents must do everything they can to comply with the Tenant Fees Act. It also warns that tenants themselves need to be familiar with the legislation. In June 2020 the ban was extended to cover all tenancies.

Charging of banned fees could become a bigger issue

While the majority of letting agencies will continue to comply, PayProp is concerned that the currently busy rental market could see rogue agents looking to make up for the financial impact of the pandemic by charging tenants illegal fees. 

Agents should be aware that the issue is likely to be on the radar of the National Trading Standards Estate and Letting Agency Team (NTSELAT). Businesses found guilty of breaching the Tenant Fees Act could face significant financial penalties.

PayProp highlights that for the honest majority, the current uncertain circumstances are a chance to shine.

Neil Cobbold, Chief Sales Officer at PayProp, comments: “Letting agencies have an opportunity to educate tenants about the fees ban so consumers aren’t taken advantage of by any firms attempting to charge prohibited payments.

“During this challenging period for many people, it’s crucial that agents support tenants to help protect the long-term future of the rental sector for all parties.

“Taking this approach will further improve the public perception of letting agents and landlords, which is vital at a time when the industry is moving towards greater self-regulation.”

PayProp reminds tenants of their responsibilities

Cobbold says it’s also vital for renters to ensure they are up to speed with the rules set out by the Tenant Fees Act, as well as the redress options available to them.

He says: “Although industry-wide compliance with the fees ban continues to be very high, tenants should not assume all agencies are operating on a level playing field.

“If renters are aware of which fees they can and cannot be charged, as well as the maximum values of security and holding deposits, they can flag any issues early on to reduce the chances of being left out of pocket later.”

He adds that while experienced tenants are likely to be aware of the fees ban, those new or returning to the private rental sector could end up paying prohibited fees or higher deposits due to a lack of education.

Agents, landlords, and tenants must work together

The rental market may be making a strong recovery following the easing of lockdown restrictions, but Cobbold believes the medium and long-term outlook remains uncertain. ­­­­

He explains: “Many agents and landlords will still be dealing with the financial effects of the pandemic, while the workload for many agencies will have increased significantly in recent weeks.

“Many renters across the country will have found it more difficult to pay rent in recent months and the winding down of the furlough scheme is likely to cause further uncertainty in the employment market.

“However, property professionals should be aware that there are effective, legal and fair ways to ensure continued rental income during this period of lockdown easing, including automated invoice generation and arrears reminders.

“Two-way communication is also vital, while transparency and understanding from agents can help tenants to feel secure in their rental properties as we move towards 2021.”

Middlesbrough top of Zoopla’s table for rental yield hotspots in England

Published On: September 10, 2020 at 8:07 am

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Categories: Lettings News

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Top five UK rental hotspots for landlords in 2023

Zoopla has looked into England’s property hotspots to find the top ten areas for buy-to-let investors looking for the highest rental yields.

This research revealed that Middlesbrough came out on top for rental yields. It highlights that the large North Yorkshire town currently provides investors with a gross annual yield of 7.7%, thanks to the optimum combination of low property prices and steady median monthly rent of £450.

Zoopla has found that the recent stamp duty holiday has led to an increase in demand across the UK, but particularly in southern England.  Here, investor demand had reduced the most over the last five years, following increased Stamp Duty rates and the withdrawal of tax relief for mortgaged investors.

Five areas in Scotland appear in the top ten, with East Ayrshire and North Ayrshire both providing investors with yields of 7.7%, based on a rent of £450. They are closely followed by Glasgow and Stirling, where yields are recorded at 7.6% and 7.5% respectively.

Zoopla reports high house prices meant that yields were lowest in the City of London at 3.1%, despite average monthly rents of £2,598.

The research comes as Zoopla launches its new Investor Zooploma, designed to offer a range of expert advice to buy-to-let investors on topics from rental yield and legalities, to financial liabilities.

Tom Parker, Consumer Spokesperson at Zoopla comments: “With all of the top ten hotspots being in northern England or Scotland, it’s clear that the significantly lower house prices that characterise these areas and come in well under the national average of £291,055, is playing in a role in the higher yields generated for investors. 

“Yields are of course one consideration for investors and, for those considering their first foray into the buy-to-let market, it is worth considering house price growth forecasts for an area, and whether rents are likely to rise over time.

“With all those factors taken into account, now could be a good time to invest or expand a portfolio, with investors able to benefit from the stamp duty holiday – paying only the 3% levy – until March 2021.”

Zoopla’s Top Ten UK Investor Hotspots

DistrictGross yield (%)2 bed rent (Median, £PCM)2 bed capital value
Middlesbrough7.7%£450£69,950
East Ayrshire7.7%£450£69,995
North Ayrshire7.7%£450£70,000
Inverclyde7.7%£476£74,500
Glasgow7.6%£792£125,000
Stirling7.5%£749£120,000
Sunderland7.4%£493£80,000
County Durham7.4%£428£69,500
Nottingham7.3%£792£130,000
Hartlepool7.3%£424£69,950

Government cladding response welcomed but speedy action needed

Published On: September 9, 2020 at 8:44 am

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Categories: Property News

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Government cladding response

The Government has published its response to the House of Commons, Communities and Local Government Select Committee’s (HCLG) report on cladding: progress of remediation, following the tragedy of Grenfell Tower.

Law firm Collyer Bristow has commented on this response that proposals on External Fire Wall Review (EWS1) reporting and efforts with mortgage lenders will be welcome by flat owners who have been in limbo, unable to sell or even remortgage until an EWS1 has been commissioned. However, speedy implementation is now needed.

Janet Armstrong-Fox, Partner and Head of Private Client Property at Collyer Bristow, comments: “All property owners living in residential blocks above 18 metres have been seriously impacted by the review of external cladding, irrespective of whether that cladding poses a fire risk or not. 

“Mortgage lenders require an External Fire Wall Review report, form EWS1, but that can only be completed by a small number of individuals. Delays are leaving flat owners unable to sell their property or remortgage to avoid existing mortgage lending reverting to more expensive standard variable rate products.  

“HCLG recommends in its report that there should be a relaxation around who can complete those surveys and sign-off the EWS1 form. The government is, however, reluctant to relax the requirements as to who can carry out this work to ensure it is undertaken to the appropriate standard.

“The government has, however, recognised the need for a prioritising the most urgent cases with an ‘appropriate triage’ into the process at the valuation stage. That will be welcomed by homeowners, insurers, and lenders alike. 

“The government is also working with mortgage lenders to ensure that flat owners are not disadvantaged when their current mortgage deal ends. Yet it has said that, ultimately, mortgage transactions remain a commercial decision for lenders. Many are, encouragingly, reviewing policies and guidance for valuers of high-rise properties, and that too will be welcome.” 

Janet also concludes with a word of caution: “Flat owners have been left in limbo for far too long, with many in perfectly safe buildings left out of pocket or stuck in a property that is no longer suitable for them. 

“Whilst it is encouraging that the government has broadly accepted the recommendations of the HCLG report, it must implement them as quickly as is possible. If not, flat owners will remain in further limbo.”

Rent arrears a eviction webinar to be held tomorrow to discuss latest changes

Published On: September 8, 2020 at 8:36 am

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Categories: Landlord News

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Rent arrears and eviction

As the ban on evictions has been extended again to 20th September, Landlord Action and HF Assist will be hosting a webinar to help landlords, letting agents and property managers.

Their ‘Rent Arrears and Eviction’ webinar will be presented by Paul Shamplina, Founder of Landlord Action. Guests Tim Frome (Legal Director for Landlord Action), Mike Morgan (Legal Division Manager, Head of HF Assist), and John Stewart (Director of Policy and Research at National Residential Landlords Association) will join him.

On 9th September from 10 am-11 am, these experts in landlord and tenant law will update and advise listeners. They intend to guide them from an initial problem, such as how to communicate with a tenant that has stopped paying rent, right through to the latest on debt recovery.

The most up-to-dare information form the courts will be provided and what the possession procedure will now entail, following the further expansion to the evictions ban.

Topics covered will include:

  • Non-payment of rent – How to communicate
  • Mediation avoiding the courts
  • Serving Notices – The Update
  • Issuing Possession Claims
  • Courts Reopening post-COVID Lockdown – Reactivation notices
  • New processes put in place
  • Latest on Debt Recovery Rules

Paul Shamplina, Founder of Landlord Action, Brand Ambassador for Hamilton Fraser and Star of Channel 5’s ‘Nightmare Tenants, Slum Landlords’ comments: “The last-minute U-turn regarding the re-opening of the courts was another huge blow for those landlords struggling with mounting rent arrears and troublesome tenants.  

“Having just issued the reaction notices in August, we have been inundated with queries from landlords over what the changes mean for their case. We hope the webinar will help to cover as many unanswered questions as possible and give landlords some reassurance that the industry is doing it all it can to support them raise awareness of the hardship many landlords are now facing.”

John Stewart, Director of Policy and Research at National Residential Landlords Association, adds: “The extension of the stay is unwelcome and un-needed, whilst the new notice periods risk making the possession process as complicated as a game of Go Johnny Go Go Go Go!”

Landlords, letting agents, and property managers are being asked to sign up in advance to the HF Assist/Landlord Action webinar. To register, click here:
https://attendee.gotowebinar.com/register/1425925153425457419?source=PrepressRelease

SafeDeposits Scotland celebrates customer service accolade

Published On: September 7, 2020 at 8:32 am

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Categories: Landlord News,Lettings News,Tenant News

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SafeDeposits Scotland

Recognised for its exceptional levels of service, SafeDeposits Scotland has been awarded an accolade for the work it has done to support landlords, letting agents and tenants.

The Customer Service Excellence Standard (CSE) has chosen SafeDeposits Scotland to receive this accolade, having recognised the tenancy deposit scheme for its focus on consumers’ individual needs, while providing the highest levels of customer service.

The decision was made after a thorough assessment involving analysis of customer insight, the culture of the organisation, and overall quality of service.

The not-for-profit tenancy deposit scheme displayed several key achievements to secure the accreditation. This included displaying an in-depth understanding of the characteristics of both current and potential customer groups, strong interaction within wider communities and demonstrating the support provided, and continually meeting set standards for timeliness and quality of customer service. 

SafeDeposits Scotland
Mike Smith, Operations Manager at SafeDeposits Scotland

Mike Smith, Operations Manager at SafeDeposits Scotland, said: “We always put our landlords, letting agents and tenants at the heart of our service and advocate for our customers on a daily basis. 

“We know that all parties have a lot to deal with in the rental process, particularly at the beginning and end of a tenancy. This is why we provide tools and guidance for customers to make the leasing process as positive as possible for all parties involved.”

During lockdown, SafeDeposits Scotland adapted and adjusted to ensure everyone could easily access its services while following government advice to stay at home. Between the 1st of April and the 30th of June alone, the team answered more than 6,000 customers calls and handled more than 5,000 emails.

The scheme also introduced webinars for landlords and tenants to ensure relevant information could still be accessed during lockdown. 

Mike added: “We’ve encountered some truly unique challenges over the past few months, so being accredited for our customer service as we emerge from the pandemic, is extra special.

“We’ve learned to adjust our services to meet consumer demand, and will continue working to provide all the support needed as we emerge from lockdown.”