Posts with tag: RLA

RLA issues warning to Gumtree over letting scams

Published On: February 19, 2016 at 2:27 pm

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The Residential Landlords’ Association (RLA) has called on a leading classified online listings service to issue clear guidance over possible scams involving bogus letting scams.

A warning was issued to Gumtree by the RLA after fraudsters posed online as landlords to post ads on the site asking for money in exchange for property viewings.

Scams

In certain cases, the advertisements posted online show affordable and attractive dwellings. However, when potential tenants attempt to arrange a viewing, they are told that the landlords lives a long way away and that they must provide a deposit in order to secure a viewing. Sometimes, these fees cost £1,500!

The criminals behind these scams have cloned websites’ logos, including that of the RLA’s Deposit Guard Scheme. As such, the schemes look genuine to would-be tenants.

Once tenants pay cash for their fake viewing, they never hear from the fraudsters again and their money is lost.

RLA issues warning to Gumtree over letting scams

RLA issues warning to Gumtree over letting scams

Demands

To stop more innocent renters becoming victims, the RLA has now contacted Gumtree demanding visible warnings on its website.

‘Often, the victims in this type of fraud are young foreign students, who have limited knowledge of how the rental market works in the UK,’ said a spokesperson for the RLA. ‘The fact that our DepositGuard logo is being used in this manner is something we are taking extremely seriously and we have approached Gumtree asking for clear warnings about scams of this type to be included on its website,’ they added.[1]

Any victims of this kind of fraud are being advised to call Action Fraud on 0300 123 2040.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/industry-group-asks-gumtree-to-issue-public-warning-about-letting-scams

RLA to Intervene in Supreme Court Case

Published On: January 21, 2016 at 9:50 am

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The Residential Landlords Association (RLA) has been granted permission to intervene in a repossession case in the Supreme Court.

The McDonald v McDonald case involves receivers acting on behalf of a bank, which wants to repossess a property from a defaulting private landlord.

RLA to Intervene in Supreme Court Case

RLA to Intervene in Supreme Court Case

However, the landlord’s daughter is living in the property. She is seeking to avoid being evicted by arguing that this would breach her human rights.

She is raising Article 8 of the European Convention on Human Rights – the right to respect for one’s private and family life.

After her bid failed at the Court of Appeal, she decided to take the battle to the Supreme Court.

The RLA has now been granted permission to make a written statement to the court.

The organisation believes that if the court finds in favour of the tenant, it will undermine existing section 21 legislation and give private renters the chance to invoke bogus defences under Article 8 in order to delay possession proceedings.

Barristers working with the RLA are currently compiling the written submission for the hearing, which is due to take place in March.

The Policy Consultant and Company Secretary at the RLA, Richard Jones, explains why the organisation decided to intervene: “Landlords must feel that they are under attack on all sides at the moment.

“The private rented sector has become a key provider of residential accommodation as a result of landlords having the right to automatically repossess properties once a tenancy has ended on a no fault basis, and also the right to evict tenants who have not paid their rent for at least two months.

“This case is of fundamental importance because it challenges these rights. If the tenant succeeds then we can expect defences being raised claiming human rights, particularly to delay claims for possession. In the meantime, rent arrears could be mounting.

“The RLA took the decision to intervene in this case to make sure that the Supreme Court was made aware of the consequences, as well as giving us the opportunity to challenge the tenant’s claims.”1

Do you agree with the tenant’s claim? Or do you agree with the RLA, that this case could damage the eviction process in the future? 

1 http://www.propertyindustryeye.com/supreme-court-to-rule-on-test-case-of-tenant-arguing-human-rights-to-avoid-eviction/

RLA Seeks Legal Advice on Challenging Osborne’s Tax Changes for Landlords

Published On: January 20, 2016 at 9:46 am

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The Residential Landlords Association (RLA) is seeking legal advice on whether to challenge Chancellor George Osborne’s proposed tax changes for landlords.

In the summer Budget last year, Osborne announced plans to cut mortgage interest tax relief for buy-to-let investors.

The change will mean that landlords will be taxed on turnover, not profit, and targets smaller investors.

RLA Seeks Legal Advice on Challenging Osborne's Tax Changes for Landlords

RLA Seeks Legal Advice on Challenging Osborne’s Tax Changes for Landlords

The RLA is taking advice on whether the change will breach the Human Rights Act and EU law on free movement of capital.

Separately, two landlords have crowdfunded to fund a judicial review. Read more: /angry-landlords-hope-to-tackle-george-osborne/

The RLA also believes that the Government’s policies are encouraging overseas property investors.

The additional 3% Stamp Duty charge for buy-to-let landlords and second homebuyers, announced in the Autumn Statement, will, similarly to the change on mortgage interest tax relief, be imposed on smaller landlords.

Landlords with smaller portfolios will be subject to the extra tax, while those buying 15 or more properties in one transaction will be exempt.

The RLA says that this will favour larger investors, “many of whom are likely to be from overseas”.

The Chairman of the RLA, Alan Ward, comments: “It is astonishing that a Conservative Chancellor is leaving the way open for foreign investors and cutting opportunities for individual UK landlords.

“This additional assault on private landlords coming on top of changes to the taxation of rental income will only lead to reduced supply and higher rents.”

He continues: “The Chancellor’s planned changes to Stamp Duty came as a bolt out of the blue. Regardless of the Government’s plans for homeownership, demand for rented housing is only set to increase.

“The Government needs to understand that not everyone will be able to afford to buy a house or indeed want to, even if more houses are built. Its whole policy towards the private rented sector needs to change. If it does not, it will only make the housing crisis worse.”1

The Chair of the Treasury Select Committee asked the Chancellor yesterday whether the Stamp Duty charge would aid or hinder mobility in the jobs market.

Osborne responded: “I think that it will help to promote homeownership, because it will mean that there is a more level playing field between an owner-occupier who wants to buy a house, a first time buying family and a buy-to-let landlord.

“There is nothing wrong with people investing in property, but there should be a level playing field so that we reverse the decline in homeownership in our country.”2 

1 http://news.rla.org.uk/government-discrtment-in-housing/

2 http://www.publications.parliament.uk/pa/cm201516/cmhansrd/cm160119/debtext/160119-0001.htm#16011944000005

Liverpool City Council Partners with ARLA, NALS and the RLA

Published On: January 13, 2016 at 12:50 pm

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Liverpool City Council has partnered with the Association of Residential Letting Agents (ARLA), the National Approved Letting Scheme (NALS) and the Residential Landlords Association (RLA) for its landlord licensing scheme.

Last year, the council introduced the country’s first city-wide licensing scheme for rental properties. However, its costs have been criticised for being too high.

As councils are not allowed make profits from licensing schemes, many have questioned why Liverpool’s scheme is so expensive.

The new agreement with the three industry organisations means that landlords belonging to any of these groups will receive a 50% discount on licensing fees, taking the charge to £200 per property, rather than the standard rate of £400 for the first property and £350 for each subsequent home.

Liverpool City Council Partners with ARLA, NALS and the RLA

Liverpool City Council Partners with ARLA, NALS and the RLA

Councillor Frank Hont, Cabinet Member for Housing at Liverpool City Council, explains the need for the partnerships: “When we launched the scheme, we were clear that we wanted to work with the private rented sector to help them comply with the scheme and find ways of giving discounts to those that are committed to meeting the standards.

“I am delighted that ARLA, NALS and the RLA have all come on board. It is a win-win for everyone, because their members benefit from a reduced fee and we are able to target our resources at those landlords who we know aren’t meeting the standards.

“This is all part of our drive to improve the quality of housing in the city and make sure that our residents have access to good quality accommodation.”1 

The Managing Director of ARLA, David Cox, comments on the agreement: “We are really pleased to become a co-regulator for the Liverpool selective licensing scheme.

“We are glad Liverpool City Council has seen the importance of distinguishing between the professional market and those who the scheme is designed to remove from Liverpool’s rental market.

“ARLA welcomes this initiative and hopefully, by giving landlords who use our members a 50% discount on licensing fees, it will encourage more landlords to use licensed letting agents.”1

Isobel Thomson, the Chief Executive of NALS, adds: “We are delighted to be part of a co-regulatory partnership with Liverpool City Council for their selective licensing scheme. We welcome the recognition they have given to NALS agents and the strict criteria they meet in relation to customer service and consumer protection.

“By offering a discounted licensing fee for those agents who come under a co-regulatory partnership, it is a clear indicator to landlords of which agents they should be using.”1 

And the Chief Executive of the RLA, Andrew Goodacre, also says: “The RLA is the only landlord association approved to offer a co-regulation alternative to those landlords in Liverpool who wish to continue to manage their portfolio themselves.

“There are a growing number of landlords who are choosing to manage their properties directly, and our scheme is an ideal vehicle for self-regulation whilst still providing significant savings on the license fees.”1

Around 8,500 landlords, owning about 39,500 properties, have already started the application process, which came into effect in April last year.

The council has also begun issuing the first set of licenses.

1 http://www.propertyindustryeye.com/liverpool-city-slashes-licensing-costs-for-members-of-arla-nals-and-rla/