Posts with tag: landlord law

Inventory Reporting to Complement Redress Reform in PRS

Published On: March 8, 2019 at 10:31 am

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Independent inventory reporting of private rental properties will complement the Government’s plans to reform housing redress by introducing a Housing Complaints Resolution Service, claims No Letting Go.

The provider of inventory services says that a clearer, single route complaints system, which can be supported by impartial, evidence-based documents, such as independent inventories, will help to protect both landlords and tenants.

At the end of January, James Brokenshire MP, the Secretary of State for Housing, Communities and Local Government, announced an overhaul of the existing housing redress system.

As well as proposals for landlords to join a redress scheme and the introduction of a new homes ombudsman, plans for a Housing Complaints Resolution Service were also revealed.

The Government says that its aim is to create a “clearer” and “simpler” route to redress, through a “one-stop shop for housing complaints”, to “prevent anyone with a problem being turned away”. 

A redress reform working group will now develop the proposals, before they are introduced in the future.

Inventory Reporting to Complement Redress Reform in PRS

Nick Lyons, the CEO and Founder of No Letting Go, says: “We welcome the Government’s plans to reform housing redress and believe the new system will increase consumer confidence, by providing a straight-forward and accessible complaints procedure.”

He explains that a beefed up and clearer redress system will be complemented by independent inventory reporting, and that he supports making inventories mandatory and, preferably, independent.

“An impartial inventory and compliance report can be used as evidence by tenants making a complaint, or for protecting landlords and letting agents against unreasonable or unfounded tenant claims,” Lyons says. “It could give a complainant’s case more weight by showing and describing issues clearly.”

According to The Property Ombudsman’s annual report for 2017, the total amount of money awarded as a result of lettings complaints increased by 18% on 2016, to a total of £931,092 – almost treble the total handed out for sales complaints.

Furthermore, the average lettings award rose by 18%, while the number of resolved lettings cases grew by 11%. Management, and communication and record keeping were the most common causes of complaints.

The Property Redress Scheme has also found that poor inventory reporting is a major reason that letting agents are found culpable for not managing a property properly.

Lyons says: “As we can see, there is more activity in the lettings sector when it comes to complaints. This is why it’s so important that the new system is clear, and uses evidence and documentation effectively, much like the tenancy deposit protection industry.

“As is the case with deposit disputes, handled by tenancy deposit protection schemes, inventories can also prove truly valuable for landlords if they need to prove the condition of their property against an unfair or bogus complaint.”

He concludes: “Effective use of independent inventories could prove valuable to both landlords and tenants in the context of the new redress system, as well as for the organisations handling the complaints. This should contribute towards creating a clearer system, where a higher number of genuine complaints are handled with fair verdicts.”

If you choose to compile an inventory yourself, we worked with No Letting Go to provide you with a helpful guide: https://www.landlordnews.co.uk/guides/a-landlords-guide-to-inventories-and-avoiding-disputes/

Discrimination Under Right to Rent Scheme is Unlawful, Minister Insists

Published On: March 7, 2019 at 10:36 am

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It is unlawful to discriminate against any potential tenants under provisions of the Right to Rent scheme, the Minister for Immigration has insisted. 

Caroline Nokes MP spoke out after the High Court ruled the scheme in breach of the European Convention on Human Rights last week. 

The High Court ruled that Parliament’s decision to impose Right to Rent checks is outweighed by the potential for race discrimination by landlords and letting agents conducting these inspections, which Nokes described as “disappointing”.

“We disagree with this finding and the Home Office has been granted permission to appeal all aspects of the judgement,” she added.

However, Nokes insisted that the requirements under the Right to Rent scheme remain in force; there is no immediate change to the operation of the policy. 

“Landlords and letting agents are still obliged to conduct Right to Rent checks as required in legislation,” she explained. “They must not discriminate against anyone on the basis of their colour or where they come from.”

Nokes also pointed to comments made by the Home Secretary, Sajid Javid MP, regarding options for a further evaluation of the operation of the scheme. As part of this, the Government will “look to develop further mechanisms to monitor the operation of the scheme to provide ongoing assurance about its impact”.

The Home Secretary has written to the independent adviser on lessons learned from the Windrush scandal, Wendy Williams, to draw her attention to the High Court ruling.

“The Right to Rent Consultative Panel will meet again next month to look at the operation of the scheme, and the guidance provided to landlords and letting agents,” Nokes revealed.

She clarified: “The Government is committed to tackling discrimination in all its forms and to having an immigration system which provides control, but which is also fair, humane and fully complaint with the law. This includes ensuring illegal migrants, with no right to be in the UK, are not able to access work, benefits and public services.”

The Right to Rent scheme was first trialled in the West Midlands, before its national introduction in 2016. The trial was evaluated in full, with the results published in October 2015.

The Home Office assessment found no systematic discrimination on the basis of race.

Landlords and letting agents are reminded that the Right to Rent scheme is still a legal requirement, despite the High Court’s ruling last week. 

The Government must End Right to Rent after High Court Ruling, Crisis Insists

Published On: March 4, 2019 at 10:30 am

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The Government must end the controversial Right to Rent scheme, after the High Court ruled it in breach of human rights laws on Friday (1st March 2019), insists homelessness charity Crisis.

Last week, the High Court ruled that the policy breaches the European Convention of Human Rights, by causing discrimination in the private rental sector.

The current Right to Rent scheme requires landlords to check that all prospective adult tenants have the right to rent property in the UK, by checking their official documentation, such as a passport or visa. 

If landlords fail to complete these checks or let to someone who does not have the right to rent in the UK, they could face criminal charges.

Jon Sparkes, the Chief Executive of Crisis, is pleased with the ruling: “It is fantastic news that the High Court has ruled that this discriminatory policy be reviewed, taking the vital first step needed to scrap it altogether.

“Every day, our frontline staff hear of the overwhelming difficulties faced by homeless people trying to find a tenancy in the already saturated rental market. This is made even harder if someone has to prove their immigration status, especially as official documents like passports can often be lost sleeping rough, moving from hostel to hostel, or fleeing domestic abuse – and replacements can be prohibitively expensive. And, as a result of this policy, many landlords are avoiding renting to anyone they don’t believe to be British, to avoid the threat of prosecution if they accidentally rent to the wrong person.”

He insists: “This can’t carry on. No one deserves to face the devastation of homelessness – especially at a time when the crisis is worsening. The Government must act now to end this policy and ensure that those in the most vulnerable circumstances are supported, rather than pushed further to the fringes.”

Do you want to see the scheme abolished? 

High Court Rules Right to Rent a Breach of Human Rights

Published On: March 1, 2019 at 11:02 am

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The High Court has ruled today that the Government’s Right to Rent scheme breaches human rights.

Under Right to Rent, landlords are responsible for checking the immigration status of all prospective tenants, with the risk of prosecution if they know or have reasonable cause to believe that someone who does not have the right to rent in the UK occupies the property that they’re letting. Theresa May, as Home Secretary, introduced the scheme as a key part of the Government’s hostile environment for illegal immigrants.

The Residential Landlords Association (RLA) joined with human rights group Liberty to intervene in a case brought by the Joint Council for the Welfare of Immigrants (JCWI), to have the policy declared incompatible with human rights, on the grounds that it is leading to discrimination against non-UK nationals who might be in the country legitimately, along with British ethnic minorities.

Recent research by the RLA found that the fear of getting things wrong led to 44% of private landlords being less likely to let to those without a British passport. It also revealed that 53% of landlords were less likely to let to those with limited time to remain in the UK, while 20% were less likely to consider letting to EU or EEA nationals.

Similar findings were uncovered by the JCWI. Significantly, during the course of the case, Government research recently emerged that confirmed that a significant proportion of landlords were unwilling to let to people without British passports.

Delivering his verdict in the High Court today, Mr. Justice Martin Spencer ruled that the scheme breaches the European Convention on Human Rights, on the basis that it led to discrimination against non-UK nationals with the right to rent property and British ethnic minorities.

In a damning ruling, Mr. Justice Spencer, referring extensively to arguments and evidence provided by the RLA, concluded that discrimination by landlords was taking place “because of the scheme”. 

He went on: “The Government’s own evaluation failed to consider discrimination on grounds of nationality at all, only on grounds of ethnicity.”

The judge continued, finding that Right to Rent “does not merely provide the occasion or opportunity for private landlords to discriminate, but causes them to do so where otherwise they would not”, describing such discrimination as being “logical and wholly predictable” when faced with potential sanctions and penalties for getting things wrong.

High Court Rules Right to Rent a Breach of Human Rights

He added: “The safeguards used by the Government to avoid discrimination, namely online guidance, telephone advice, and codes of conduct and practice, have proved ineffective. In my judgment, in those circumstances, the Government cannot wash its hands of responsibility for the discrimination which is taking place, by asserting that such discrimination is carried out by landlords acting contrary to the intention of the scheme.”

The ruling comes following a report published last year by David Bolt, the Independent Chief Inspector of Borders and Immigration, which found that Right to Rent has “yet to demonstrate its worth as a tool to encourage immigration compliance” and that the Home Office was “failing to coordinate, maximise or even measure effectively its use, while, at the same time, doing little to address the concerns of stakeholders”.

Academics at the University of Oxford suggest that the foreign-born population is almost three times as likely to live in the private rental sector than those born in the UK.

The RLA and JCWI have written to the Home Secretary, seeking an urgent meeting.

John Stewart, the Policy Manager at the RLA, says: “Today’s ruling is a damning critique of a flagship Government policy. We have warned all along that turning landlords into untrained and unwilling border police would lead to the exact form of discrimination the court has found.

“We call on the Government to accept the decision, scrap the Right to Rent, and consider what else can be done to sensibly manage migration, without having to rely on untrained landlords to do the job of the Home Office.”

Chai Patel, the Legal Policy Director for the JCWI, adds: “There is no place for racism in the UK housing market. Now that the High Court has confirmed that Theresa May’s policy actively causes discrimination, Parliament must act immediately to scrap it. But we all know that this sort of discrimination, caused by making private individuals into border guards, affects almost every aspect of public life – it has crept into our banks, hospitals and schools. Today’s judgment only reveals the tip of the iceberg and demonstrates why the hostile environment must be dismantled.”

Top Tips for Letting your Home, from ARLA Propertymark

Published On: March 1, 2019 at 9:57 am

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If you’re a homeowner who is thinking about letting your home to tenants, there are many things to consider before putting it onto the rental market. 

From practical advice to your legal responsibilities as a landlord, ARLA Propertymark (the Association of Residential Letting Agents) has some top tips to get you started.

Peter Savage, the President of ARLA Propertymark, says: “With the 50th annual English Housing Surveylast month finding the private rented sector shrunk from 4.7m dwellings in 2016/17 to 4.5m in 2017/18, there has never been a greater need for landlords. 

“Letting your property is a big decision, though, both for you and the tenants that will be living there, so it’s important you understand what being a landlord means. We’ve put these tips together to ensure you understand your responsibilities as a landlord, know how to protect your property, and keep your tenants happy, dealing with any issues that may arise.”

Do your research

The first thing you should do is get to know your local housing market. Research similar properties in the area and find out how much they are being let for per month. If your rent price is set too high, then prospective tenants will be instantly put off. A letting agent will be able to advise you on this.

Once you’ve done your homework, set a competitive rent and aim to keep your property filled at all times, to minimise void periods.

Check with your mortgage provider

By letting your home, you go from being a homeowner and occupier to a landlord, and, with your new status, comes great responsibility. In the first instance, you need to check if your mortgage permits you to rent out your property, as some agreements include caveats to prevent homes being let to tenants. 

If you are unsure, speak to your mortgage lender and they will be able to advise you accordingly.

Know your responsibilities

Being a landlord is a 24/7 job, so you should be prepared to receive calls from your tenant at any time during the day or night. Some issues will need immediate attention, and, unless you have a managing agent, you are responsible for all repairs and maintenance.

Get the property ready

Make sure that your property is clean and any modernisation or DIY projects are completed. It will be more attractive to prospective tenants if it’s had a fresh lick of paint, all repairs are done and, if necessary, new flooring has been installed. 

You should also think about the type of tenants that your property would be best suited to, for example, young families, students or single professionals. This will determine whether you should let it furnished or unfurnished. If possible, offer both options, so that the agent can market your property to a wider audience.

Top Tips for Letting your Home, from ARLA Propertymark

Sort out the insurance

Your existing home insurance provider must be made aware of your intention to let your property, as your policy will probably need to be amended. While specific landlord insuranceisn’t a legal requirement, it’s advisable, as the policy will protect your buildings, contents and investment as a whole. 

Rent guarantee insurance is also available to protect your rental income against tenant rent arrears.

Legal requirements

When it comes to being a landlord, there are more regulations to comply with than you could even imagine. To put it into perspective, there are currently around 150 laws that landlords must adhere to while letting a property. 

At the start of a tenancy, you must conduct Right to Rent checksunder immigration law, protect your tenant’s depositand ensure that all the essential paperwork is in place.

While it isn’t a legal requirement, it’s a very good idea to have a written tenancy agreement in place, so that both you and your tenant understand your rights and responsibilities.

The safety of your tenants is also essential, so you must also arrange a gas safety checkevery year. It’s also wise to make sure that all electrical appliances and wiring are tested regularly, too, as the Government will soon be introducing mandatory checks. Finally, it goes without saying that your rental property must be fitted with smoke alarms on every floor and carbon monoxide detectorswhere necessary.

By law, your property must have an Energy Performance Certificate(EPC) that is rated E or above. You won’t be able to legally market the home unless you reach this standard and have a certificate to prove it, so get it sorted as soon as possible – they’re valid for ten years.

Regular inspections

It’s important to undertake regular inspections of the property, although, remember that you can’t enter the home without your tenant’s permission. This is classed as trespassing and is illegal. Give them at least 24 hours’ written notice and stipulate your periodic inspection schedule in the tenancy agreement.

Choose the right agent

If you want to make the process of letting your home pain-free, then use a letting agent to manage the property and guide you on everything that you need to know. A good agent will take away the stress of finding suitable tenants and will ensure that your let complies with the right regulations.

If you use an agent, make sure that they have Client Money Protection(CMP) in place, which ensures that, if the agent goes bust or runs off with your money, you will be reimbursed. 

Good luck if you’re planning on letting your home to tenants in the near future! 

Criminal Landlord Enforcement in England Cut by a Quarter

Published On: February 28, 2019 at 10:57 am

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Councils across England have cut the amount that they are spending on dealing with criminal landlords by a quarter compared with 2009/10, the Residential Landlords Association (RLA) has found.

According to analysis by the organisation, while spending by local authorities in England on housing standard activities was £44.5m in 2009/10, by 2017/18, that had fallen to £33.5m – a drop of £11m.

With over 150 Acts of Parliament containing more than 400 regulations governing the private rental sector, the RLA argues that better enforcement of these laws, backed up by greater funding, is key to driving out the minority of landlords who can make life a misery for tenants and bring the industry into disrepute.

While the Government has recently made £2m available for councils to support efforts to tackle problem landlords, the RLA does not believe that one-off pots of money provide the certainty for councils to be able to plan long-term enforcement action.

New civil penalty powers enable councils to keep the proceeds of fines levied on criminal landlords and use this money for further enforcement. The problem is that councils don’t have the resources to kickstart the process by taking action against rogue landlords that then leads to fines generating funding for further action, the RLA says.

It is calling on the Government to provide in the forthcoming Spending Review a multi-year funding package to support initial enforcement action.

John Stewart, the Policy Manager at the RLA, insists: “Criminal landlords undermine the reputation of the decent majority, cause tenants to suffer and have no place in the sector.

“Local authorities must have the funds they need to properly enforce the wide range of powers they already have to tackle substandard housing and criminal behaviour. Our analysis shows that, for all the warm words, councils are in desperate need of new funding to ensure this happens. The Government should use the Spending Review to address this as a matter of urgency.”