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New Property Ombudsman Announced

Published On: September 21, 2015 at 2:53 pm

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The new Property Ombudsman has been revealed as Katrine Sporle.

Sporle, 61, will take over from Christopher Hamer when his nine-year term ends on 30th November.

Sporle has an impressive career to date and is being welcomed into the role.

She was the chief executive of the Planning Inspectorate for England and Wales between 2003-11, responsible for 1,000 members of staff and a £60m budget. She also reported directly to Parliament.

Previously, Sporle was the chief executive of Basingstoke and Deane Borough Council for eight years, controlling a budget of £58m.

Sporle is currently the executive director and chapter clerk at Salisbury Cathedral, the most senior lay leader at the 750-year-old church.

The Property Ombudsman (TPO) offices are located in the same city in Wiltshire.

Sporle, of Hampshire, was awarded a CBE in December 2010 for outstanding public service.

Chairman of TPO Council since 2009, Lord Richard Best OBE, says: “Selecting our ombudsman is a key responsibility of the independent TPO Council and we are truly delighted to have secured someone with the breadth and depth of experience – at local and national levels – which Katrine brings to this role.

“Christopher Hamer is a very hard act to follow but I am confident we have found a great successor.

“I know all TPO’s members and well-wishers will join me in extending the warmest of welcomes to Katrine when she starts in November.”1 

Board Chairman of TPO Scheme, Bill McClintock, adds: “I welcome Katrine Sporle as the new ombudsman and endorse Lord Best’s comments.

“I believe her broad employment background will be a huge benefit in performing her new role.”1

Hamer’s next move is unknown, but it is believed he could become involved in Government departments due to his valuable skills.

1 http://www.propertyindustryeye.com/new-property-ombudsman-with-outstanding-track-record-is-announced/

Rogue landlords need tougher sanctions

Published On: September 21, 2015 at 2:53 pm

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Landlords more worried by Section 21 reform than Stamp Duty or loss of tax relief 

The Local Government Association (LGA) has called for councils to be granted greater powers in order to tackle rogue landlords and stop them from taking advantage of vulnerable tenants.

Tougher

Representing over 370 councils across England and Wales, the LGA has demanded that tougher sentencing guidelines are introduced, alongside a wider range of penalties. This, it feels, will help to rid the Private Rented Sector of the minority of landlords who plan on exploiting their tenants.

Changing the Housing Act to include tougher sanctions on more serious housing offences could see landlords facing community service or even a prison sentence, something that the LGA welcomes. The LGA believes that too many landlords are given minimal fines, which do nothing to deter them from their unlawful behavior.

Speaking on BBC Breakfast, vice chairman of the LGA Gerald Vernon-Jackson called for larger fines that are more relative to the landlords’ income.

Mr Vernon-Jackson said, ‘it’s like fining a premiership footballer £1,000 when he’s earning £200,000 a week-he is not going to notice.’[1]

Examples

To draw attention to the root of their calls, the LGA has highlighted a number of examples where punishments for rogue landlords could be seen as too lenient.

In Coventry, a landlord was fined just £100 after six tenants were forced to live in a home for a year without fire alarms and an escape route. Meanwhile, a landlord in Redbridge who failed to comply with an improvement notice to deal with an infestation of mice and cockroaches was fined just £3,000. During this time, ten tenants were forced to share a mouldy, damp kitchen.

Alongside tougher sanctions, the organisation want to see more clarification on what constitutes a ‘fit and proper,’ person who is able to hold a landlord licence. In addition, the LGA says that it supports the notion of a blacklist for landlords who persistently offend, but have concerns into how this will be funded.

Rogue landlords need tougher sanctions

Rogue landlords need tougher sanctions

Standards

‘The courts need to punish rogue landlords proportionately and there should be a consistent standard when it comes to licensing, ‘said Councillor Peter Box, LGA housing spokesman. ‘We know that the majority of tenants are satisfied with their accommodation, but that shouldn’t distract from the fact there are far too many rogue landlords creating misery for people who often see themselves as having little choice but to put up with it,’ he continued.[1]

Mr Box went on to say that, ‘it is no coincidence that problems are more prevalent in areas where economic conditions and the local housing market have driven demand higher than supply and we need to recognise that the real solution is creating conditions where landlords can’t afford to neglect their responsibilities.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/rogue-landlords-should-face-tougher-sentences-say-local-councils

 

 

Landlords and Agents Must Evict Illegal Immigrant Tenants Within 28 Days

Published On: September 21, 2015 at 1:53 pm

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A new Immigration Bill has been published, making it a criminal offence for landlords and letting agents to breach Right to Rent rules.

A property lawyer has described the Bill as “hateful bilge”.

The new Bill is an extension of the Immigration Act 2014, which made it a civil offence if landlords and agents failed to conduct checks on the immigration status of tenants. The regime was part of the pilot Right to Rent scheme in the West Midlands, which began in December 2014. The Government has still not analysed the trial.

The 2015 Bill, due for a second reading on 13th October, makes it a criminal offence to allow a private rental sector property to be occupied “by an adult who is disqualified as a result of their immigration status from occupying premises under a residential tenancy agreement.”1

Landlords and Agents Must Evict Illegal Immigrant Tenants Within 28 Days

Landlords and Agents Must Evict Illegal Immigrant Tenants Within 28 Days

The landlord or agent will also be committing an offence if they know or have reason to know that the tenant does not have a right to rent in the UK, for example, because the Secretary of State has served a notice on the landlord or agent, stating that the property is occupied by an illegal immigrant.

The maximum penalty for landlords and agents is five years imprisonment.

The Bill also includes new rules on eviction.

When the Secretary of State serves a notice saying that the home is occupied by someone with no right to live there, the landlord or agent can serve the tenant a notice giving them 28 days to leave. This notice has the enforceable status of one issued by the High Court.

It is not clear what would happen if a tenant given 28 days notice to leave vanishes without a trace.

The Scottish Government has criticised the new Bill, despite it not applying to Scotland.

Scottish Social Justice Secretary, Alex Neil, says it will exacerbate the current immigrant crisis and “increase levels of homelessness and discriminate against migrants rather than reduce immigration”.

He also hit out at Westminster, saying it rushed through the legislation: “I am disappointed to see the inhumane measures set out in the Immigration Bill and I am deeply concerned that if approved, they will encourage people to discriminate against this vulnerable group.

“These harsh restrictions around rent and evictions would make it even tougher for migrants to access housing.

“Where they have accommodation, they may be too frightened to keep in contact with the Home Office and authorities if they believe there is a threat of eviction.

“The UK Government’s approach, coinciding with its delayed response to the worst humanitarian crisis facing Europe since the Second World War, shows an unbelievable lack of compassion and understanding of people’s basic rights.

“We will do all we can to stand against the proposals in the Bill.”1

Lawyers have also opposed the Bill.

On the Nearly Legal blog, written by a barrister, some of the measures included are called “truly remarkable”2. The blog questions what will happen if the Secretary of State serves an erroneous notice.

1 http://www.propertyindustryeye.com/agents-and-landlords-will-be-able-to-evict-illegal-immigrant-tenants-in-28-days/

2 http://nearlylegal.co.uk/2015/09/doesnt-it-make-you-proud-to-be-english/

Call for Rogue Landlords to be Jailed

Published On: September 21, 2015 at 12:55 pm

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The Local Government Association (LGA) has called for rogue landlords that commit the most serious housing offences to be jailed.

The statement arrives as a response to the Government consultation on dealing with criminal landlords and letting agents.

The LGA, which represents councils in England and Wales, also called for tougher sentencing powers for magistrates and a wider range of penalties, so that rogue landlords are sufficiently held responsible for letting out sub-standard housing.

The body has also supported Government proposals for a blacklist of persistent criminal landlords to be formed.

Call for Rogue Landlords to be Jailed

Call for Rogue Landlords to be Jailed

Councillor Peter Box, the housing spokesperson at the LGA, says: “For the private rented sector to succeed, it needs a local response, led by councils. That means giving councils the tools to be truly effective against landlords who take advantage of tenants.

“The courts need to punish rogue landlords proportionately and there should be a consistent standard when it comes to licensing. But we also need to tackle this problem at source by finding ways to ensure there is an adequate supply of good quality housing in the private rented sector.”

Box continues: “We know that the majority of tenants in the private rented sector are satisfied with their accommodation, but that shouldn’t distract from the fact there are far too many rogue landlords creating misery for people who often see themselves as having little choice but to put up with it.

“It is no coincidence that problems are more prevalent in areas where economic conditions and the local housing market have driven demand higher than supply and we need to recognise that the real solution is creating conditions where landlords can’t afford to neglect their responsibilities and exploit their tenants.”1

Responding to the consultation, the LGA has created a list of recommendations. These include:

  • Introducing sentencing guidelines on Housing Act offences as a priority, ensuring consistent and suitable fines. For more serious offences, an amendment to the Housing Act, bringing in a new range of penalties, from a fine up to a community order or custodial sentence.
  • Creating a blacklist of persistent offenders, making it easier for councils to refuse to issue landlord licenses and other enforcement, so long as the administration process and cost of compiling a list is not the responsibility of local authorities.
  • Strengthening of the fit and proper person test for landlords to offer a clear outline to remove uncertainty for councils and landlords and provide a strong basis for accepting or refusing a license.
  • Amending the notice period and compensation arrangements for Article 4 planning powers, so that councils can respond to local concerns over high proportions of Houses in Multiple Occupation (HMOs).
  • Giving powers to councils to earmark additional public land for the private rental sector through large-scale investment.

The LGA highlights one particularly severe case in Wolverhampton, where the city council enforced an emergency prohibition order, evacuating tenants from a property because it was so dangerous.

The home had 11 serious safety breaches, including: no electricity, gas or water; missing fire escapes so that doors opened onto an outside drop of three storeys; no firm alarm or fire doors; the front door could not be locked and a stranger was found sleeping on the tenant’s sofa.

The landlord was fined just £2,600 and the council was forced to pay costs of around £5,500.

1 http://www.propertyindustryeye.com/call-for-criminal-landlords-to-be-jailed/

 

Rent rises slowing in some regions

Published On: September 21, 2015 at 12:19 pm

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Good news for renters in Britain has come in a new report from the Association of Letting Agents (ARLA) , which suggests the number of letting agents reporting rent increases for tenants has dipped.

For the first time this year, the total of ARLA agents reporting rent rises for tenants has actually fallen from the previous month.

Reductions

The report shows that just 33% of agents recorded rent rises in August, the lowest total since April this year. In addition, this was a 37% drop from the total recorded in July.[1]

However, tenants in the South West of the country are not gaining any benefits. 42% of agents in the region are continuing to see rents rise, up by 4% on the previous month. This is in comparison to just 12% of agents in the North West that have seen a rent increase.[1]

Welsh tenants are also worse off, with the number of landlords increasing rents up to 36%, in comparison to just 11% in July. [1]

Short supply

After a surge in properties made available to rent during the last month, supply has since slowed to the levels seen in June. ARLA agents managed an average of 178 properties per branch during August, in comparison to 189 in July.[1]

In addition, the report found that the total number of house hunters in the rental sector rose marginally in August. During the month, letting agents recorded an average of 36 would-be tenants registered per branch, compared to 35 in July.

Rent rises slowing in some regions

Rent rises slowing in some regions

London’s continued struggle for available housing worsened again in the previous month, with 110 properties registered on average per branch. This was down form the 117 recorded on average one month previously.[1]

Sorry state

David Cox, managing director of the Association of Residential Letting Agents, said that, ‘our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market.’[1]

Cox went on to say that, ‘with increasing pressure on the dwindling supply of housing and the number of house-hunters growing, rent increases are unfortunately very common- as one in three tenants are experiencing. Despite the fact they have fallen this month, its likely they will go back up again over the next few months.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rent-hikes-on-the-decline.html

 

 

Investors Told to be Cautious of Firms Focused on Sales

Published On: September 21, 2015 at 11:58 am

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Investors Told to be Cautious of Firms Focused on Sales

Investors Told to be Cautious of Firms Focused on Sales

Investors have been told that shares in firms such as Foxtons, Zoopla and Rightmove could prove a viable investment, but that Countrywide looks the strongest.

This advice arrives due to doubts surrounding property sales, but a positivity in the lettings sector.

Investment website The Motley Fool’s James Skinner says: “A combination of higher rates and a stricter regulatory approach to mortgage affordability will see many people’s prospects of homeownership reduced, and that this will probably see ever greater numbers driven into the rental market as time elapses.

“For Countrywide, with its almost even split between estate agency sales and residential lettings, this is good news.”

He adds that Countrywide’s letting agency purchases should give it an “effective hedge” against a slowdown in sales.

He believes that Foxtons is less preferable than Countrywide due to its focus on sales and because it is based predominantly in London.

Skinner says that this could pose a problem if changes to Stamp Duty are more negative than initially thought.

Of Rightmove and Zoopla, he says: “While I believe that all of these businesses would prove to be at least a reasonable investment over time, many will remember that it was a Countrywide consortium that created Rightmove back in 2000, while the firm also still holds two boardroom positions and a sizeable stake in the recently listed Zoopla.

“Given that these two digital wonders are both, in one way or another, products of Countrywide’s innovation, I can’t help but suspect that it is Countrywide which is the better investment of them all.

“Certainly, with it presenting as the cheapest of the bunch at present, it would appear to be almost a no-brainer for those who are looking to invest only in the one company.”1

The advice comes as Deutsche Bank raised its target for Zoopla to 240p, causing Zoopla shares to surge on Friday. Meanwhile, JP Morgan downgraded Rightmove from a large rating to neutral.

1 https://uk.finance.yahoo.com/news/play-uk-housing-market-rising-090010172.html