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Major push to help the homeless during coronavirus lockdown

Published On: April 7, 2020 at 10:48 am

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Major Push to Help the Homeless During Coronavirus Lockdown

Homeless charities and local authorities must work together to help rough sleepers get access to accommodation during this time of lockdown.

Major Homeless Charities including Crisis, Homeless Link and The Passage have written to the government asking them to ‘remove the barriers’ that prevent homeless people from getting access to the shelter that they need during a time of government-mandated self-isolation. 

This is following on from the Ministry of Housing, Communities and Local Government and the Minister for Local Government and Housing writing to all local authorities with detailed plans on how to protect rough sleepers at this time. 

The plans included closing night shelters and communal hostels, as they are a hotbed for the spread of Coronavirus and flout the rules of self-isolation. However, many of the charities state that they have received numerous reports of councils denying help to many homeless people on the grounds that they don’t have a local connection to the area or simply that the council doesn’t have the funds to house them elsewhere. 

The Government has committed £1.6 billion in funding to help local authorities with the task of housing the homeless during the coronavirus emergency. 

But as this remains a public health emergency, the charities warn that failure soon to act could risk putting more lives in danger.

Jon Sparkes, Chief Executive of Crisis, said: “We commend the government’s swift action to protect people most at risk by ensuring they have somewhere safe to stay during the pandemic. But the stark fact remains that there are people whose lives are still in danger, sleeping on our streets or trapped in crowded hostels and night shelters.

“To fulfil the ambition of getting ‘everyone in’ we must see the final barriers stopping people from getting the help they need removed. This means ensuring councils have the money they need to support people into hotel accommodation and a clear message that anyone, no matter who they are or their circumstance, will get the help they need to shelter from the pandemic.

“We must also ensure that once people have been accommodated they get access to the health care they need if they are affected by the virus, and in the long term are supported into safe, permanent housing once this crisis is over.”

Hertsmere Borough Council is an example of one local authority taking an active approach to the problem. They have been contacting rough sleepers, but they are appealing for the public’s help, asking them to use the StreetLink app to report any rough sleepers that they come across.

StreetLink is a website, mobile phone app and telephone service which enables members of the public to connect adults sleeping on the streets with local services.

Councillor Jean Heywood, Portfolio Holder for Housing, said: “Our main priority at this time of unprecedented national crisis is to keep our residents safe, particularly those in vulnerable groups, such as rough sleepers.

“While we have been able to provide a number of individuals with accommodation, there may be others who we have not as yet been able to contact and who would qualify for support.

“We would ask members of the public who are worried about anyone sleeping rough to report it through StreetLink.

“In the meantime, we are working with our partners, including the police, to visit rough sleepers to provide them with guidance of where to go for support.”

Find out more by going to https://www.streetlink.org.uk/StreetLink_HomePage, by downloading the StreetLink app or by calling 0300 500 0914. Anyone with concerns about a child’s welfare, please call 999.

Property market index reports lockdown in March 2020

Published On: April 7, 2020 at 8:37 am

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Safest areas to live in the UK

Unsurprisingly, new data from Agency Express reveals a significant slowdown across the UK property market.

Its Property Activity Index shows that a usually robust March saw national month on month new ‘For Sale’ listings fall to -16.1%. Figures for properties ‘Sold’ also fell to -15.8%.

The index’s archives also highlight that this month’s activity is the slowest on record for March. Notably, this data has been heavily affected by suspension of services.

The downward trend continued across the UK, with all regions recorded by the Property Activity Index reporting declines both properties ‘For Sale’ and ‘Sold’.

A resilient Yorkshire and Humberside reported the smallest decline with figures for properties ‘Sold’ at -9%.

Of the remaining 12 regions the smallest declines in this month’s index were reported by:

New listings ‘For Sale’

  • East Anglia -10.6% 
  • North West -12.9% 
  • Central England -16.2% 

Properties ‘Sold’

  • Central England -10.4% 
  • South West -10.0% 
  • East Anglia -12.8% 
  • North East -16.6% 

Wales has seen the largest decline, according to the Property Activity Index. Figures for new listings ‘For Sale’ fell to -17.6% and properties ‘Sold’ at -26.2%. 

The next biggest decline was recorded to be in the North East. New listings were at -21.3% and properties ‘Sold’ at -16.6%.

However, both regions currently remain buoyant over a three-month rolling period and both have seen an increase in year on year activity.

Stephen Watson, Managing Director of Agency Express, comments: “March’s data from the Agency Express Property Activity Index, has as expected returned significant declines. This is partly due to the natural slowdown that occurred as the COVID-19 virus gained momentum.

“However, towards the latter end of the month, our figures are heavily affected by our suspension of services. So, on this basis is it hard for us to give a true reflection of this month’s activity.

“Moving forwards, as anticipated, we don’t expect to see any immediate changes or growth and our figures will be heavily impacted by the suspension of services for the forthcoming months.”

Letting Agencies Have Their Part to Play in Helping Landlords Understand CGT

Published On: April 6, 2020 at 11:37 am

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Call for rental housing strategy from Public Accounts Committee

With Capital Gains Tax (CGT) changes on the horizon, letting agencies will have an important role in helping landlords to understand them. 

This is the latest opinion from PayProp, the lettings payment automation provider, who say that in addition to the coronavirus pandemic, letting agencies must also help landlords to be compliant with CGT changes. 

From April 6th, anybody who sells a property subject to CGT will have to pay the tax estimate within 30 days of completion. Before the changes, this period could last anywhere between 10 and 22 months. 

There will also be changes to lettings relief, which will now only apply to the period of time in which the owner occupied the property at the same time as their tenants. 

In addition, principal private residence relief – which is provided to landlords selling a property they have previously used as their main residence – will also be reduced from 18 months to nine months. 

“These significant and complex CGT changes are set to affect many landlords who are looking to sell properties in the near future,” says Neil Cobbold, Chief Sales Officer at PayProp.

“Despite this, they have arguably gone under the radar, receiving less coverage than other industry issues such as stamp duty changes, the removal of Section 21, the Tenant Fees Act and the Homes (Fitness for Human Habitation) Act.”

“Over the coming weeks, it will be important for letting agencies to ensure their landlords are aware of these changes and advise them where appropriate,” says Cobbold.

“Most landlords selling properties after April 6 will need to seek expert tax advice when paying their CGT bill.”

“It could therefore be beneficial for agencies to have a partnership with a professional tax expert in place, so that landlords looking for advice can be referred to a trusted source quickly and efficiently,” he says.

All of these tax changes also coincide with the final stage of Section 24 – the removal of buy-to-let mortgage relief, meaning that a lot of legislative changes that affect landlords are coming at once. It is up to agencies to guide landlords through this critical time.

“Agencies need to make sure they are on hand to guide their clients through this busy and potentially costly time, while also offering them value for money and a first-class personal service. This is an opportunity for agents to demonstrate their value to landlords who may be looking to cut costs or reduce activity,” says Cobbold.

“While these tax changes will require some adjustment, due to the strength and growth of the PRS, there will still be plenty of opportunities for the best letting agencies to take on more business and thrive in 2020,” he concludes.

Government confirms new steps to further reform building safety

Published On: April 6, 2020 at 8:23 am

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The government has confirmed that big changes will be made to building safety. New measures include mandatory sprinkle systems and consistent wayfinding signage. This will be in all new high-rise blocks of flats over 11 metres tall.

In his statement, Housing Secretary Rt Hon Robert Jenrick MP said: “The government is bringing about the biggest change in building safety for a generation.

“Today (2nd April 2020) we have made a major step towards this by publishing our response to the Building a Safer Future consultation. This new regime will put residents’ safety at its heart and follows the announcement of the unprecedented £1 billion fund for removing unsafe cladding from high-rise buildings in the Budget.

“Today we are also announcing that the housing industry is designing a website so lenders and leaseholders can access the information needed to proceed with sales and re-mortgaging, and the government stands ready to help to ensure this work is completed at pace.

“Building safety is a priority and the government is supporting industry in ensuring homes are safe at this difficult time.”

Mark Hayward, Chief Executive of NAEA Propertymark, comments: “Public safety is paramount, and we’re pleased the Government is introducing changes to ensure residents are kept safe. 

“The introduction of a website will allow lenders and leaseholders to access information in a timely manner, enable transactions to go through quicker, and help those who have been left unable to sell or remortgage their property to do so.

“Ultimately, these changes will help the housing market get back on its feet once we’ve moved through this period of uncertainty.”

Mary-Anne Bowring, managing director of property management specialist Ringley, comments: “Today’s (2nd April 2020) announcement shows the government is slowly but surely moving in the right direction. 

“The commitment to work with mortgage lenders is particularly welcome as while the housing market is in deep freeze now, with mortgage lenders pulling up the drawbridge and the Prime Minister urging people not to move unless absolutely necessary, this was a reality for many leaseholders before the Coronavirus crisis thanks to a lack of proper documentation about their cladding.

“The reality for the government is they need to be prepared to do more. As the Chancellor said they will do ‘whatever it takes’ to tackling the impact of the Coronavirus, they must have the same attitude to tackling fire safety, especially in residential buildings.”

COVID-19 Causing Short-Term Rental Reversal

Published On: April 3, 2020 at 11:05 am

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COVID-19 Causing Short-Term Rental Reversal

Until very recently, there was an emerging trend of landlords switching to more profitable short-term lets, but with the recent coronavirus outbreak, many landlords are now looking to go back to long-term lets as demand plummets.

Back in February, we reported on the growing worry in the Private Rental Sector (PRS) that long-term rentals were becoming less profitable to landlords and causing them to switch to short-term holiday lets. This had the potential knock-on effect of reducing the supply of long term homes and driving up rental prices for tenants. 

In recent weeks, however, the demand for short term holiday lets has fallen through the floor as people have stopped travelling due to the Coronavirus outbreak. Landlords who currently let out holiday homes and short-term lets are switching to longer-term contracts according to the UK Short Term Accommodation Association (STAA).

The STAA polled its members and found since 13th March, most members have seen around 70% of their booking cancelled, with some reporting as high as 90%, with proportionate losses in income. 

Merilee Karr, chair of the STAA and CEO of UnderTheDoormat, said: “These findings are certainly not surprising but show that the short-term rental sector, that makes a massive contribution to the UK economy each year, is under severe threat. Bearing in mind that most of our members and their customers rely on tourism for between 70-100% of their revenue, the impact of the COVID-19 virus is potentially catastrophic.

“And, for those short-letting their home, the loss of both present and future income could be devastating. Thousands of people use the sharing economy to help pay their mortgage; for some, it is their primary source of income. Countless small entrepreneurs face going out of business, removing money from local economies both now, and in the future, when they will not be around to service demand once the virus has abated.

“On a more positive note, many homeowners, property management and hospitality companies have been making the best use of their assets by opening up properties for key workers. Schemes like NHS Homes, where properties are being offered to NHS staff as free accommodation show just how the short-term rental industry is pulling together to do their bit during this crisis.”

Surge in Universal Credit claimants highlights necessity for landlords to understand the system

Published On: April 3, 2020 at 8:27 am

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Rental demand increases, led by south coast

The Department for Work and Pensions (DWP) has reported almost one million new claimants applying for Universal Credit in the last two weeks, following the outbreak of COVID-19.

Caridon Landlord Solutions, part of Caridon Group, says landlords should educate themselves on the Universal Credit system now so that they can support their tenants and both mitigate the risk of rental arrears.

Sherrelle Collman, Managing Director of Caridon Landlord Solutions, which specialises in providing advice to private landlords, letting agencies and housing associations on Universal Credit and Housing Benefit, says: “As the true impact of Coronavirus takes hold, many people who have never previously needed to rely on the welfare system are having to apply for Universal Credit. 

“Many will be anxious not only due to the current situation but because of the criticism Universal Credit has received since its introduction.  The good news is that more resources have been deployed to local authorities to help claimants, and measures such as immediate access to Advance Payments, increases to Universal Credit and raising the Local Housing Allowance rate to the 30th percentile of market rents from April, are being put in place.

“We have had a surge of calls from landlords and letting agents asking advice about how the process works and if they should apply for an Alternative Payment Arrangement for their tenant, which is where the housing element of UC goes straight to the landlord to cover the cost of rent.”

According to Caridon Landlord Solutions, there are four key steps landlords can take to help support their tenants who may now be applying for Universal Credit.

Step 1: Communicate with your tenant and support them as much as you possibly can.  If they are having to apply for Universal Credit, it is most likely because they have lost their job or had a significant drop in income. They will be concerned they could also lose their home.  Where possible, consider a rent reduction to meet the housing element of Universal Credit, some rent to help cover a mortgage is better than nothing, or if at all possible, offer a rent holiday. 

Step 2: If your tenant has had to apply for Universal Credit because of COVID-19, they will require a letter from you verifying the rental amount, the address of the property they reside, and when the tenancy commenced. This will help them to qualify for the housing element of Universal Credit which will go towards covering their rent.

Step 3:  Work with your tenant to establish key dates, such as the tenant’s Benefit Assessment Period (the date their entitlement begins) so that you can see how it falls in line with the Tenancy Agreement.

Step 4: Many tenants prefer to have the housing element of Universal Credit paid directly to the landlord so they can manage the rest of their finances themselves. This is called an Alternative Payment Arrangement. Landlords should discuss this with their tenants and if in agreement, fill out a UC-47 form to apply for this.  If the tenant is already in arrears, the landlord can also apply for Third-Party Deductions to reduce this, where an additional amount is taken monthly from the claimant’s personal allowance. Details can be found here .