The Residential Landlords Association (RLA) is campaigning to protect the rights of landlords to repossess their properties.
This follows a recent court case in which a landlord’s attempt to regain their property was deemed invalid, due to a dispute over a gas safety certificate.
After the landlord was initially granted an order to repossess the property using Section 21 powers, the tenant successfully appealed against the ruling, on the grounds that they were not provided with a gas safety certificate prior to moving into the home.
Despite the landlord making this available once the tenancy had begun, the court ruled that their Section 21 powers were invalid, referring to a previous, similar case, in which the gas safety certificate was made available less than two weeks after the tenant moved in.
The judge in the appeal said that, if the gas safety certificate was not served on the tenant before they took up occupation, then a Section 21 notice could not be relied upon to regain possession and the situation could not be resolved by serving one after the move-in date.
The RLA is supporting the landlord, Trecarrell House Limited, at the Court of Appeal, on the basis that so long as the gas safety certificate is provided before the Section 21 notice is served, then it is valid. It argues that the case could breach a landlord’s rights under the European Convention on Human Rights, on the basis that it deprives them of their possessions.
David Smith, the Policy Director of the RLA, says: “Protecting the rights of landlords to repossess properties in legitimate circumstances is key to providing the confidence the sector needs to offer longer tenancies.
“The landlord in this case was not seeking to shirk their responsibilities and provided the certificates that were needed.”
He adds: “We will fight to ensure that, if nothing else, logic prevails.”
Today (Wednesday 20th March 2019), the Homes (Fitness for Human Habitation) Act 2018 comes into force in England. The new law will give tenants the right to sue negligent landlords who fail to provide safe properties.
The Act, which updates the Landlord and Tenant Act 1985, will cover all tenancies of less than seven years in length – therefore, the majority of tenancies in England will be covered by the new law.
This new law is designed to prevent tenants from having to put up with unsafe or unsanitary conditions in their rental homes. The following is a list of issues that could deem a property unfit:
Madalena Penny, the Founder of Penny Joseph letting agents, based in Southport, believes that not all unfit properties are reported to landlords or agents.
She says: “Of course, there are going to be tenants who refuse access for inspections. As a result, some tenants create unhealthy environments for themselves. If they do not ventilate the property properly, or adopt a habit of drying clothes indoors on radiators, condensation and moisture can build up, causing damp walls and create an unfit place to live. Obviously, this is no fault of the landlord or agent and, hopefully, any court being used for inappropriate litigation on behalf of a tenant will see this.”
So, how can a landlord be sure that tenants are upholding their responsibilities under the tenancy, and how can they know if damp is created through poor ventilation and not through building problems?
Penny explains: “It’s important that a thorough inspection is undertaken before the tenancy has begun, and that the tenant is present during the inspection and signs the inventory.
“Under the new dampness habitation law, it would be wise for landlords and agents to have a sheet outlining damp preventing tips for tenants. Having tenants sign a declaration stating their responsibility for good ventilation in properties would be wise, and could be signed for at the outset of the tenancy, along with their How to Rent guide.”
She adds: “I would also advise landlords to keep copies of all letters regarding tenant inspections and correspondence regarding property problems, as they can be used as proof of repair and maintenance in court.”
David Cox, the Chief Executive of ARLA Propertymark (the Association of Residential Letting Agents), is more positive about the new law: “We’re pleased the Homes Act is coming into force tomorrow, and congratulate Karen Buck MP on her work to provide a better private rented sector for all. This new legislation will give renters greater protection against criminal operators, and means they will now be able to take direct legal action if their agent or landlord does not comply.”
The number of landlords purchasing properties in London with cash hit a seven-year high in 2018, according to new data from Hamptons International.
Its Monthly Lettings Index shows that almost half (48%) of landlord purchases last year were made in cash, which is up from 33% in 2017.
However, the rise in the number of cash purchases comes against a backdrop of fewer properties being bought by investors in London last year.
Historically, landlords in London were the most likely to use a mortgage to purchase their buy-to-let properties, but this changed in 2018. More stringent stress testing on buy-to-let mortgages, combined with the reduction in mortgage interest tax relief, has made it more difficult and less appealing for some investors to get a mortgage, particularly in lower yielding locations, where landlords tend to have bigger loans.
Many landlords in the capital who purchased with cash last year raised the money by remortgaging other assets, Hamptons International found.
Aside from London, Wales was the only other region to record growth in the number of landlords buying with cash.
Across Great Britain as a whole, the proportion of cash purchases by landlords dropped from 55% in 2017 to 54% last year.
Scotland experienced the greatest decline in cash purchases. North of the border, the number of buy-to-let properties bought with cash fell by 7%, to 47% of all acquisitions in 2018.
Last year, landlords in the East of England became the most likely to use a mortgage for their purchases, while those in the north were more likely to buy with cash.
In 2018, 63% of landlords purchasing properties in the north did so using cash, rather than a mortgage.
Landlords, how do your buying habits reflect the trends identified across the country by Hamptons – are you more likely to purchase using cash, or a buy-to-let mortgage?
Property portal Zoopla is banning the phrase “No DSS” in housing advertisements on its websites. Property owners and managing agents will be prohibited from using it in listings by a change in terms and conditions.
Zoopla will also remove any “No DSS” references in listings and remove the “No DSS” fields in its own cloud-based software products.
The move comes after the Government called for immediate change to “No DSS” in housing adverts earlier this month. The Housing and Homelessness Minister, Heather Wheeler MP, said that she would be meeting with industry stakeholders to bring pressure on them for a voluntary outlaw of the practice.
Housing charity Shelter has been challenging “No DSS” housing adverts, as well as naming and shaming agents that it believes veto prospective tenants if they are in receipt of benefits.
Zoopla announced that its ban will be fully in place next month.
The portal’s Managing Director, Charlie Bryant, says: “We fully support the recommendations of the NLA [National Landlords Association] and the RLA [Residential Landlords Association], which oppose blanket bans against tenants in receipt of housing-related benefits, and are pleased to be taking action which clarifies this position.
“All tenants who are looking to rent a property deserve the chance to be fully assessed for their suitability, and matched to a home that suits both their and the landlord’s circumstances.”
He adds: “We proactively sought the views of our largest lettings-focused agents to ensure the above measures were undertaken on a collaborative basis and received significant support in respect of our proposed additional measures.”
Chris Town, the Vice Chair of the RLA, responds to the news: “We welcome today’s announcement from Zoopla, which comes after extensive campaigning by the RLA. Landlords should not refuse someone solely because they are on benefits, and should consider prospective tenants on a case-by-case basis. But, with growing numbers of benefit claimants now reliant on the private rented sector, we need to do more to give tenants and landlords greater confidence in the benefits system.
“This means building on positive changes already made by the Government by giving all tenants the right to choose if they want to have the housing element of Universal Credit paid directly to their landlord; working with bank lenders to remove mortgage terms that prevent landlords renting to benefit claimants, as NatWest has already done; and ending the Local Housing Allowance freeze, which has meant benefits bear little resemblance to rents.”
He concludes: “We look forward to working constructively with the Government to address these issues.”
New analysis of rent price growth across the capital over the last seven years shows a clear regional divide, with private tenants in east London seeing twice the rate of growth of their west London counterparts, according to the latest Landbay Rental Index, which is powered by MIAC.
Of the nine east London boroughs, the average cumulative rent price growth since January 2012 is 21.41%, with a typical rent now standing at £1,241 per month. Leading the way are Barking and Dagenham (27.66%), Waltham Forest (23.56%) and Bexley (22.02%). The only east London borough that didn’t make it into the top ten areas for rent price growth in the capital was Greenwich, which is still above the London average, at 15.48%.
Contrastingly, the 12 west London boroughs saw average growth of just 10.79% over the period, with monthly rents now a typical £1,456. Towards the bottom of the league table are Kingston upon Thames (8.04%), Richmond upon Thames (6.14%), and Hammersmith & Fulham (5.73%).
However, boroughs in central-west London report even lower growth. Camden recorded an average increase of just 3.78%, while Westminster, and Kensington and Chelsea experienced declines over the period (0.77% and 2.31% respectively).
Nevertheless, when inflation is taken into account (since January 2012, cumulative CPI is 16%), the figures are even starker. In real terms, tenants in 21 of the 33 London boroughs recorded a fall in rent prices. Of these, only one is in east London (Greenwich, at 15.48%). While the vast majority of those in west London have seen declines, just two have witnessed rents rising faster than inflation – Hillingdon (17.12%) and Sutton (16.82%).
Throughout the capital, three-bedroom homes have seen the highest rent price growth over the last seven years, at an average of 10.11%, compared to growth of 9.45% for two-beds and 8.98% for one-beds. This trend has now reversed over the past year – one-beds have recorded an average increase of 0.9% year-on-year, while two-beds have seen 0.83% growth and three-beds a mere 0.34%.
Elsewhere, annual rent price growth in England (excluding London) is at an average of 1.13% – its weakest since February 2013. Scotland is the only country in the UK with improving annual growth, at an average of 1.78% in February this year. The average rent price in the UK is now £1,216 per month, or £772 without London.
John Goodall, the CEO and Founder of Landbay, comments: “We are seeing a cultural shift in London, as demand climbs in the east and traditionally popular areas, like Westminster and Chelsea, slide down the league tables. While part of this is a function of affordability, other things, too, are at play. Rising employment and a thirst for flexible living mean renting is more attractive than ever, with a widening commuter belt in the face of developing infrastructure like Thameslink and Crossrail.”
Just one in 20 private tenants who complain to their local councils about poor conditions in their rental homes receives protection from revenge evictions, according to analysis of data from lobby group Generation Rent.
The statistics, obtained under the Freedom of Information Act, found that councils in England are failing to use the powers that they have to protect tenants. Even when a severe hazard, such as mould or broken stairs, is found in a rental property, tenants only get protection from eviction in one in five cases.
As a new law comes into force tomorrow (20th March 2019) that will enable tenants to sue negligent landlords, these findings reinforce the urgency to reform eviction laws and stop renters losing their homes when their landlords do not have legitimate grounds for eviction.
The Government is currently considering responses to a 2018 consultation on reforming private tenancies.
Section 21 of the Housing Act 1988 allows landlords to end tenancies outside of fixed terms without needing to give a reason. Under the Deregulation Act 2015, Section 21 evictions are invalid for six months when the council has served an improvement notice on the property. There must normally be a severe Category 1 hazard in the rental home for the council to take this action.
Generation Rent made Freedom of Information requests to 102 councils covering two-thirds of England’s private tenant population. The 99 councils that responded received a total of 67,026 complaints about housing in 2017-18, but served just 3,043 improvement notices on landlords. That means that just 5% of tenants who complained ended up being protected from revenge evictions.
Many of the complaints may not have involved Category 1 hazards, but, even accounting for these, a minority of affected tenants were protected. The 78 councils that record the Category 1 hazards that they find reported 12,592 such issues in 2017-18.
Yet, just 2,545 improvement notices were served as a result, equating to 21% of cases. Many of these cases may have been resolved by informal dialogue between the council and the landlord, but a tenant would have still been exposed if the landlord decided to ignore the council and issue an eviction notice.
Private Tenants Denied Protection from Revenge Evictions, Generation Rent Insists
The performance of councils varies dramatically. Eight councils had a ratio of improvement notices to Category 1 hazards of more than 75%:
Tower Hamlets: 309%
Merton: 289%
Nottingham: 215%
Wiltshire: 96%
North Somerset: 90%
Waltham Forest: 83%
Bournemouth: 83%
Cornwall: 75%
Five councils served no improvement notices:
Brighton and Hove
Hillingdon
Kensington and Chelsea
Kingston upon Thames
Sefton
Tomorrow, the Homes (Fitness for Human Habitation) Act comes into force, which will give tenants the ability to take negligent landlords to court, rather than rely on their councils. However, successful tenants will still not be protected from revenge evictions without their councils taking action.
The Ministry of Housing, Communities and Local Government consulted in summer 2018 on proposals to introduce three-year tenancies, within which tenants cannot be evicted under Section 21, to replace one-year tenancies. It has yet to publish its final proposals.
Generation Rent is part of the End Unfair Evictions coalition, campaigning alongside ACORN, the London Renters Union, New Economics Foundation and Tenants Union UK for the abolition of Section 21. The campaign is also seeking limits to rent rises – another tactic that some landlords use to intimidate tenants who complain.
Dan Wilson Craw, the Director of Generation Rent, says: “These figures demonstrate that, despite powers and protections, tenants living in squalid homes are being let down by their councils. If landlords are free to evict tenants who complain about disrepair, then we cannot expect the quality of private rented homes to improve.
“The new Homes Act gives tenants with an unreliable council an alternative route to force landlords to fix problems, but they are still at risk of eviction. Tenants have a right to a safe home, but can only exercise it if the Government stops landlords from evicting without needing a reason.”
Councillor Louise Mitchell, the Cabinet Member for Housing at Waltham Forest Council, adds: “Many tenants don’t report disrepair, because they fear a retaliatory eviction, so the cases we deal with are only the tip of the iceberg. Although tenants are protected if the council serves the landlord with an improvement notice, this is too blunt a tool to rely on. In many cases, an informal response is enough to encourage the landlord to take action, even though tenants could still face the threat of eviction. It would be easier to give tenants protection by abolishing Section 21, so that landlords who wanted tenants to move out would need a valid reason.”
