Posts with tag: Landlord Action

Beyond Section 21 – Consequences of abolishing ‘no-fault’ evictions

Published On: October 21, 2020 at 9:13 am

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Landlords welcome plans to tackle unruly tenants

The Lettings Industry Council (TLIC) has released a report that looks at the possible impacts of abolishing Section 21.

‘Beyond Section 21’ was released this week, detailing the negative consequences that the abolition of Section 21 might bring about. This includes a reduction in rental property supply by up to 20% and rising rents. It also makes recommendations to balance the impact.

The report’s findings suggest suddenly ending Section 21 will have the following impact:

  • A tougher screening process for tenants, impacting those on housing benefits, lower income families and insecure employment the most
  • A fall in the private rented dwelling stock in England by 20%, with the impact falling heaviest on vulnerable tenants claiming benefits, as landlords seek to either leave the PRS or move towards other market segments such as short-term lets
  • Upward pressure on rents as a result of the negative impact on the numbers of homes available. Around 600,000 homes could see rent increases (13%of the sector)
  • Increased pressure on the justice system by tripling the court caseload with an additional 45,000 possession hearings and court capacity severely challenged

Theresa Wallace, Chair of TLIC, says: “The PRS has doubled in size over the last 20 years, which means any changes to the current regulations will have a huge impact on the life of millions of citizens. 

“It is vital to strike a balance between the needs of tenants for long-term security and legal certainty, restoring landlord confidence to ensure an adequate supply of private rented homes. The social cost of abolishing Section 21 lies in the economic effects it will release and how the market will react to it. 

“That is why the Government must not proceed with its proposal to do so without careful consideration of the impacts and implementation of measures to mitigate such negative consequences.”

In the ‘Beyond Section 21’ report, The Lettings Industry Council suggests implementing the following set of four measures to balance the impact of abolishing Section 21: 

  1. Strengthening the grounds of Section 8 for which it can be used and to allow an accelerated process
  2. The use of meaningful mediation to reduce the number of disputes resulting in court proceedings before they commence and save both sides substantial legal costs
  3. Court reform including a modernised, specialist housing court for all housing related hearings, ensuring timescales for repossession can be reduced and a viable route for tenant claims against landlords for disrepair, poor conditions and management
  4. Bailiff reform because securing the services of county court bailiffs is one of the longest delays for landlords, following the grant of a warrant for possession

Paul Shamplina, founder of Landlord Action, says: “These four measures make sure that the tenants’ need for long-term security regarding their tenancies is met while at the same time respecting the landlords’ right to use their property economically and according to their needs.

“Some of the measures, such as the mediation process and the bailiff process reform can be introduced on relatively short-term planning.  Whilst we acknowledge that court reform and a review of Section 8 requires longer-term preparation, if the government were to adopt the step-by-step implementation of measures outlined in this report, it would not only prevent a short peak increase in serving Section 21 notices, but also give all relevant parties enough time to adapt to the change in legislation.

“We are confident that with faster and easier access to justice, banning both criminal landlords and anti-social tenants from the PRS, as well as the improved communication between landlords and tenants through mediation, both parties trust in the PRS will increase. 

“Providing greater legal certainty will lead to further growth within the PRS, as more private landlords will be willing to rent out their properties and tenants will be provided with a broader range of properties they can choose from.”

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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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

Landlords are urged to lobby MPs to highlight the impact of the evictions ban

Published On: June 30, 2020 at 8:29 am

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eviction ban

Landlords are being urged to lobby their Members of Parliament to highlight the consequence of the five-month ban on repossessions, due to end on 23rd August.

The National Residential Landlords Association (NRLA) and Landlord Action are working to encourage affected landlords to tell their MPs about the impact it is having and the need to prioritise urgent cases when the courts begin to hear them again.

Landlord Action has recorded approximately 500 live pre-COVID cases stuck in the system as a result of court closures. One landlord, David Healy, is owed over £10,000 in arrears and his tenant has not paid any rent since November 2019.

Mr Healy’s court hearing, which was due to take place on 5th May, has been adjourned and he does not yet know when this will be rescheduled for.

The ban prevents landlords from taking swift action against those committing anti-social behaviour, causing misery for other tenants in the same property as them. One tenant, Rowan Castle, has launched a petition calling for landlords to be given the immediate ability to evict those committing anti-social behaviour. 

On twitter he has said: “This is a total disaster. I’m living in a shared house with a nightmare tenant. We all want her gone, as does the landlady. Her anti-social behaviour is driving us and the neighbours up the wall. She was due to go on 1st July. I can’t put up with it for another 2 months.”

The importance of lobbying MPs will be highlighted during a webinar taking place this Wednesday (1st July), during which Ben Beadle (Chief Executive of the NRLA), Paul Shamplina (founder of Landlord Action) and Vanessa Warwick (co-founder of Property Tribes) will discuss the impact of the repossessions ban, what things might look like in the autumn and the important role that landlords can play in the campaign. 

Ben Beadle and Paul Shamplina have commented: “In the vast majority of cases landlords and tenants are working hard to sustain tenancies wherever possible. It is vital, however, that as courts begin to hear repossession cases again, that they prioritise the most urgent. 

‘This includes cases of anti-social behaviour, those where rent arrears were building pre-COVID and cases which were started, but then paused, prior to lockdown. 

“To support this, landlords have a vital role to play in telling their MPs about the impact the repossessions ban is having as well as highlighting the ways in which they are supporting their tenants through the current crisis.”

Some landlords face a year’s worth of rent arrears if eviction ban is extended, says Landlord Action

Published On: May 15, 2020 at 8:19 am

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eviction ban

If an extension is made to the ban on evictions, as called for by the Labour Party, this could lead to financial ruin for landlords with existing possession cases for rent arrears, says Landlord Action.

Some landlords with pre Covid-19 possession cases will find themselves trying to cover more than a year’s worth of rent if the courts are unable to resume existing cases from 25th June. Paul Shamplina, Founder of Landlord Action, says these cases must be prioritised. 

According to Landlord Action, following the government’s ban on evictions in March, there is an estimated 25,000 cases stuck in the legal system, of which 10,000 are from private landlords. 

With over 500 live possession claims with the courts, Shamplina says he is being contacted daily by landlords who launched eviction proceedings against tenants for non-payment of rent before the ban and are now facing financial collapse.

One landlord, David Walters, has a tenant who owes him £12,000 and her refusal to leave or pay means he cannot return to his home in the UK.  

Contacting Landlord Action for advice, David said: “I live abroad and rented my one-bedroom flat in London via an agency 2.5 years ago. My tenant was good for the first year, so we renewed her tenancy for another year (this was the beginning of 2019). 

“She then started paying her rent later and later, so I gave her notice to vacate last June (there was a two-month notice period in the tenancy agreement).

“She refused to move out saying she couldn’t find anywhere to live. I took court action which was raised at the beginning of October 2019 with Landlord Action. Still she did not move out. So, we then sought an order for a bailiff. This should have happened this April, but the lockdown meant no further action could be taken for 90 days, as you know.

“I’m in a desperate situation as I have no home to return to in the UK.  A tenant who is refusing to move out who owes over £12,000 in unpaid rent and no idea when this situation can be resolved. Even when the central London court reopens there will be a huge backlog of cases.”

Landlord Action says that landlords like David are now stuck with tenants who have often not paid rent for months and who are now living rent-free in their properties until early September and probably beyond.

Commenting on Labour’s five-point plan which includes calls for an extension to the temporary ban on evictions from three months to six months, Paul Shamplina, founder of Landlord Action, says: “We understand and agree that it will take many months for people to recover from this crisis and adequate support to prevent homelessness is absolutely essential. 

“However, I do believe that existing possession claims should be treated separately to any tenancy issues that arise as a result of Covid-19. Cases where rent arrears had already built up for months and landlords had sought action prior to the pandemic should be prioritised as these landlords will be taking the biggest financial hit.

“If the ban on evictions is extended for existing cases as well, there will be thousands of landlords who, by the time they are finally able to gain possession of their properties, will have up to years’ worth of rent arrears, maybe more. I dread to think how the court systems will cope towards the end of the year.”

Will the ban on evictions during the COVID-19 outbreak be extended?

Published On: May 6, 2020 at 8:09 am

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ban on evictions

Housing Secretary Robert Jenrick has faced questions from the housing select committee on how the government will continue to support tenants if the three-month ban on evictions is lifted on 25th June.

His response was that a decision will be made next month on whether there will be an extension to the ban. It was originally introduced to prevent people from losing their homes during the COVID-19 crisis.

Jenrick told MPs at a Housing, Communities and Local Government Select Committee meeting: “This [pre-action protocol] will apply at the end of the moratorium on evictions, whether that’s in late June or later in the year.

“It will enable tenants to have an added degree of protection, because instead of embarking upon the eviction proceedings immediately, there will be a duty upon their landlords to reach out to them, discuss their situation, and try to find an affordable repayment plan.

“This will enable tenants to remain in their homes and to recover the rent they haven’t been able to pay because of their circumstances.”

Paul Shamplina, the founder of Landlord Action, has commented: “Most court cases are currently suspended until 25th June. However, although a formal announcement on an extension to the ban on evictions is not due until June, which will be dependent on the passage of the virus and lockdown measures in place at that time, we have already received court orders which state they are suspended until the end of October, so I suspect that is a sign of things to come.

 “This is obviously very worrying for landlords, particularly those with existing possession cases issued prior to Covid-19, as those landlords will be faced with many more months of rents arrears on top of those they already had.

“The Government has been urging landlords and tenants to come to agreements and they are working to ensure pre-action protocol is in place, which will put the onus on tenants and landlords to negotiate and reach an agreement, rather than go to court. 

“This means that there will be an emphasis on mediation, such as that recently launched by the Property Redress Scheme, or landlords working in good faith with tenants to agree a payment agreement.”

Tenant mediation service to help landlords and tenants during coronavirus crisis

Published On: March 23, 2020 at 9:31 am

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Tenant mediation service

The Government has been fast to respond to the situation caused within the private rental sector by the coronavirus outbreak. The decisions it has made in regards to protecting private landlords and tenants have been “right and fair”, according to Paul Shamplina, founder of Landlord Action.

New eviction attempts will be banned for three months during this crisis as a way to protect tenants in financial difficulty due to job losses or having to look after their children because of school closures.

To counteract this, the Government has also stated that buy-to-let mortgages would also be covered by the 3-month payment holiday that was recently announced.

Paul Shamplina, founder of Landlord Action, said: “These are unprecedented times and all landlords must now work collaboratively with their tenants to come to solutions to get us through this public health crisis and move forward after.

“The measures taken are right and fair; no one wants to see a tenant be forced out of their home due to loss of income as a result of coronavirus, nor does anyone want to see landlords face unmanageable debts.

“We would urge landlords to be as flexible as possible with tenants facing difficulties with their rent payments arising from the current situation.”

In order to make its own contribution to easing the situation, Landlord Action will be launching a tenant mediation service, working collaboratively with the Property Redress Scheme. It will offer support to both landlords and tenants looking to find a suitable arrangement for the future.

Landlord Action is now waiting on the Government to provide confirmation of the details for the suspension and a possible verification process, along with further information on how the possession claims that are currently going through the court process will be dealt with.

Landlord Action received its first court adjournment from Blackpool County Court for a Section 8 eviction last Friday. A statement from the county court says all new eviction proceedings will now be adjourned until June.

Action taken by Blackpool County Court is likely to be followed by other county courts handling Section 8 evictions, despite the fact that the government has yet to introduce its emergency legislation.

Shamplina commented: “There will be many adjournments, and this was the first that came through yesterday from Blackpool County Court on a section 8 case. 

“We are still awaiting the government’s decision as to when possession claims have to be stopped at court for a three-month period. But it wouldn’t surprise me if the courts soon shut down for a period of time.  We are in unknown territory. Our advice line at Landlord Action has been extremely busy advising concerned landlords.

“If landlords are experiencing adjournments, they need to provide the court order to their lender so that they can ask or their mortgage payments to be suspended.”