Posts with tag: rogue landlords

Insufficient Enforcement in Rental Sector Incentivises Rogue Landlords and Agents

Published On: June 27, 2018 at 8:54 am

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According to Kate Faulkner, Housing Market Commentator for the TDS Charitable Foundation, failure to enforce private rental sector (PRS) regulations is incentivising rogue landlords and agents.

Faulkner discovered that, despite efforts to rectify regulation and standards in the sector, including Housing Health and Safety Rating System, a lack of compliance was shown, in addition to a lack of enforcement by some landlords and agents. Due to this, many efforts made, were futile.

145 pieces of legislation have been presented covering the PRS, with 50% revealed since 1996. However, more properties are deemed as ‘non-decent’.

The report utilises data taken from the English Housing Survey to convey that, despite the proportion of non-decent properties with reported issues of overcrowding, damp, fire risks or hazardous electrics, there are properties in the PRS dropped from almost 47% in 2006 to 28% in 2015. The growth of the sector has meant that these properties have increased from 1.2m to 1.3m.

The report expresses that, whilst the legislation introduced had rendered properties far safer, such as rules on gas safety, there remained many tenants who were oblivious to what passed as acceptable standards for a property.

It also warns that the cost of improvements could mean that rents will rise and that it will be more difficult for tenants to afford decent homes.

Faulkner comments: “Due to the rising costs to good landlords and a scant enforcement of PRS regulations, there is an incentive for some landlords and agents to act outside the law to increase their profit margins.

“The increased costs to landlords of buying a property, then letting it legally and safely, means that in some cases rents have increased beyond the means of some tenants. Reputable landlords and agents are being penalised financially for abiding by the law.

“It can create a vicious cycle and a two-tiered rental market, which the legislation was never intended to create.

“The problem, as I see it, is that bills are introduced on the sector all the time but aren’t backed with a communications plan or funding for enforcement.

“Myriad legislation can be confusing for tenants, and rogue landlords and agents often get away with offering sub-standard homes as tenants don’t know their rights.

“In reality, tenants hold the power in terms of accepting or rejecting poor or dangerous properties, although where supply is scant, this power disappears.”

Furthermore, the Government has recently launched new online information, with the purpose of enabling landlords and tenants to be certain about what rights they have. In addition, rental guides published by the Ministry of Housing, Communities and Local Government, also include checklists for landlords, existing tenants and letting agents.

These new guides will be extremely effective, as, private landlords will be provided with the opportunity to further their knowledge, regarding their primary responsibilities and most effective practices when letting a property. Moreover, paramount knowledge on how to conduct gas safety checks, install smoke and carbon dioxide alarms will be furthered, alongside the process of tenancy deposit protection.

Housing minister Heather Wheeler commented: “Every day across the country thousands of people move house – from young people leaving home for the first time, to those relocating after years in the same property.

“Whatever the circumstance, we want to ensure renters, landlords and leaseholders are armed with information so they know their rights, responsibilities and can challenge poor behaviour.

“The guides will be reviewed in light of any new legislation to ensure tenants, landlords and leaseholders are supplied with up-to-date information.”

 

To ensure that landlords understand their responsibilities, and protect the health and safety of their tenants, we have a wide range of free, useful guides on a host of lettings laws – view them here: https://landlordnews.co.uk/guide/

Letting Agents Welcome New Inquiry into Private Rental Sector

Published On: October 16, 2017 at 8:28 am

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ARLA Propertymark (the Association of Residential Letting Agents) has welcomed the launch of a new inquiry into the private rental sector.

Letting Agents Welcome New Inquiry into Private Rental Sector

Letting Agents Welcome New Inquiry into Private Rental Sector

The Communities and Local Government Committee (CLG) will look into whether councils have adequate powers to tackle rogue landlords.

The inquiry, which follows a report published by the CLG in 2013, highlighting where the Government should take action to improve the private rental sector, will also look at whether landlord licensing schemes are promoting higher quality accommodation and the effectiveness of complaint mechanism for tenants.

The Chair of the CLG, Clive Betts MP, says: “With a big rise in the number of people renting over the last decade, there are real concerns about the ability of local authorities to protect tenants by tackling bad landlords and practices.

“Our inquiry will examine how local authorities can carry out enforcement work to deal with rogue landlords, as well as looking at approaches used by councils to provide private rented accommodation in their areas.”

ARLA Propertymark, one of the UK’s professional bodies for letting agents, has welcomed the inquiry as a “great opportunity” to review enforcement in the private rental sector.

David Cox, the Chief Executive of ARLA Propertymark, comments on the launch: “ARLA Propertymark welcomes this inquiry. This is a great opportunity to review enforcement in the private rented sector. For years, successive governments have introduced law after law with no evaluation of their effectiveness. With what appears to be a coherent strategy on the regulation of the PRS coming from the Government, it is an ideal time to review what has worked and what hasn’t.”

The CLG is now looking for written evidence for the inquiry by 24th November 2017, which you can submit online here: http://www.parliament.uk/business/committees/committees-a-z/commons-select/communities-and-local-government-committee/inquiries/parliament-2017/inquiry1/commons-written-submission-form/

Do you believe that the inquiry has come at a good time, and what do you think needs to be done moving forward?

New Licensing Rules and Penalties for Rogue Landlords Set to be Agreed

Published On: October 10, 2017 at 9:49 am

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Harsher penalties for rogue landlords in York could soon come into force, while new licensing rules are close to being approved in Havering, east London.

City of York Council is considering imposing fines of up to £30,000 on landlords that do not meet safety and licensing regulations, as an alternative to prosecution.

New Licensing Rules and Penalties for Rogue Landlords Set to be Agreed

New Licensing Rules and Penalties for Rogue Landlords Set to be Agreed

The council believes that the proposed new measures will give it the additional powers needed to tackle poor quality rental homes in the local area, raise standards and give tenants the protections they need.

The decision follows an agreement by senior councillors almost two weeks ago that penalties could be used as formal enforcement action, to ensure that no landlord can gain financially from any failure to comply with legislation.

Councillor Sam Lisle, the Executive Member for Housing and Safer Neighbourhoods at City of York Council, says: “Introducing these penalties follows Government guidelines and complements our work to support landlords to further improve standards, which I’m pleased to see is ongoing.”

Government guidance advises that, when setting the penalty for an offence, factors such as the level of culpability, level of harm, severity of the offence, mitigating factors and deterring other failures must be taken into account.

“High quality homes are good for the city’s private tenants and, in the long-term, for the landlords themselves,” Lisle adds.

The decision session will take place on Monday 16th October 2017 from 4pm and will be available to watch here: https://www.york.gov.uk/webcasts

Meanwhile, plans to introduce an additional licensing scheme across 12 wards in Havering, east London look set to be approved tomorrow.

Local councillors will meet to discuss the proposal to charge landlords £900 to register their properties with Havering Council.

Aside from boosting council finances, it is hoped that the proposed licensing scheme will help to improve local housing conditions and anti-social behaviour in locations where there are large numbers of Houses in Multiple Occupation (HMOs).

The 12 wards that would be affected are: Brooklands; Mawneys; Elm Park; Pettits; Gooshays; Rainham & Wennington; Harold Wood; Romford Town; Havering Park; South Hornchurch; Heaton; and Squirrels Heath.

Under the scheme, landlords in these areas would have to purchase five-year licences for their properties, paid in two parts, which would cost £900 in total – although a discounted fee of £762.50 is available for those who sign up before the end of February.

A council report, which is set to be debated by cabinet members, states: “The introduction of a suitable licensing scheme will enable a significant change in the way that anti-social behaviour and poor management associated with some of the private rented sector is tackled.

“Through licensing, the council will know who is responsible for the management of properties that are rented out and who is responsible for dealing with problems associated with the dwelling.”

We remind all landlords to stay on top of the regulations governing the private rental sector in the locations they operate.

Investor Branded “Rogue Landlord” Threatens to Sue Council

Published On: September 22, 2017 at 10:04 am

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Investor Branded "Rogue Landlord" Threatens to Sue Council

Investor Branded “Rogue Landlord” Threatens to Sue Council

A property investor who owns a three-bedroom house in Queensbury, northwest London, where 35 men were found living in rooms full of mattresses, has threatened to sue Brent Council after it publically referred to him as a rogue landlord.

We covered the shocking story yesterday – click here to read the full article: /council-warns-rogue-landlords-coming/

The residents had been cramped into every room of the property, other than the bathrooms, with bedding. Even the kitchen contained a sleeping area, while there was another mattress found laid out under a canopy in the back garden.

However, the landlord of the property, Sunil Hathi, insists that he had no idea of the conditions of the property or the fact that so many people are living in the house, as he originally let it to three individuals.

Brent Council raided the property on Winchester Avenue earlier this week, following complaints from neighbours about overcrowding, anti-social behaviour and fly tipping.

Hathi, who is a doctor, said that he was shocked by the discovery and has pledged to evict the men as soon as possible.

He responded: “I have no idea how many people are living at this address; it was originally rented out to three people. This is the first time I have come here in the month they have been living here. We were not aware they were staying here and we are going to evict them.

“Brent Council put out a statement to the press saying that it was a ‘rogue landlord’ and I resent these comments. They’re highly defamatory and I am speaking with my lawyers.”

He added: “I’m not running away from anything – why would I? This house is worth a lot of money. They could have found me in minutes on the Land Registry.”

Landlords, have you ever experienced a similar situation where you did not realise what condition your rental property was in?

Council Warns Rogue Landlords: “We’re Coming for You”

Published On: September 21, 2017 at 9:12 am

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Brent Council has once again vowed to clamp down on rogue landlords in the local area, after 35 men were found living in a three-bedroom house in north London.

The men had been cramped into every room, other than the bathrooms, with bedding. Even the kitchen had a sleeping area, while another mattress was found laid out under a canopy in the back garden, with no protection against the night temperatures.

Council Warns Rogue Landlords: "We're Coming for You"

Council Warns Rogue Landlords: “We’re Coming for You”

The discovery was made on Winchester Avenue, Queensbury, at around 6am on Tuesday, when Brent Council enforcement officers and police officers entered the property after neighbours complained about overcrowding, anti-social behaviour and fly-tipping.

An investigation is under way to track down the landlord of the unlicensed House in Multiple Occupation (HMO).

Councillor Harbi Farah, the Cabinet Member for Housing and Welfare Reform at Brent Council, says: “Rogue landlords make their money by exploiting people who can least afford it – it’s a shameful practice and this is an especially shocking example.

“Any landlord treating their tenants unfairly should be in notice – we’re coming for you.”

Last week, Brent Council voted in new civil penalty measures to find rogue landlords up to £30,000 for breaching housing laws, such as letting unlicensed properties.

Meanwhile, Hackney Council is planning to introduce a selective licensing scheme in an effort to crack down on rogue landlords in the local area, as well as reduce anti-social behaviour in private rental properties.

The council’s consultation on the proposed scheme in Brownswood, Cazenove and Stoke Newington wards will run until 3rd December 2017.

Hackney Council is consulting all residents, landlords and businesses living and operating in the borough on proposals to introduce two new licensing schemes for private rental housing in the borough.

The council is proposing an additional licensing scheme for all Houses in Multiple Occupation (HMOs) and a selective licensing scheme for all private rental properties.

The full draft proposal can be accessed here: https://consultation.hackney.gov.uk/communications-and-consultation/private-rented-sector-licensing-consultation/user_uploads/private-sector-licensing—full-draft-proposals.pdf

This week, Councillor Sem Moema launched a consultation on new powers designed to protect the borough’s tenants from living in “appalling conditions”.

Under the plans, landlords in Stoke Newington and Clapton, where the council reports that 20% of renters face issues like dangerous boilers, exposed wiring or vermin infestations, would require a licence from the town hall to ensure that their properties are safe and well-maintained.

Councillor Moema explains: “One in three homes in Hackney is privately rented, and too many renters face a raw deal of spiralling rents and a poor service from a minority of rogue landlords.

“Our research has exposed that, in some parts of our borough, tenants face appalling conditions that put their safety at risk despite paying an average of £1,820 a month in rent for a standard two-bedroom home.”

She insists: “This is simply unacceptable. We believe that introducing these licensing measures will give us the powers we need to tackle landlords who exploit renters and make sure their homes are safe, secure and well-maintained.

“But, crucially, we want as many renters, landlords and residents who experience these issues first-hand to respond to this consultation and give their views on our proposals.”

What are your thoughts on these crack downs?

Scottish labour hopeful wants stricter rental controls

Published On: September 18, 2017 at 11:50 am

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The Scottish Labour candidate, backed by supporters of Jeremy Corbyn, has called for more stringent rental controls to be introduced in Scotland, in order for housing to be made more affordable in the country.

Richard Leonard, who launched his campaign for the Scottish Labour leadership on Saturday, believes that a rental cap would prevent rogue landlords from ripping off their tenants.

Controls

Mr Leonard observed that he would like to see: ‘Legislation to enact stringent rent controls and measures to encourage landlords to improve properties.’

Writing for iNews, Mr Leonard said that he wants to create a ‘Mary Barbour Law,’ named after the celebrated activist who led protests against rental rises in Glasgow during WW1.

Under his plans, a national regulator would be introduced in order to assess the fairness of rental hikes from landlords against an index, informed by a range of factors, such as inflation and benefit levels.

Any landlords wishing to introduce above-index rental rises would then have to justify these to the regulator, by demonstrating how the property has been improved.

Scottish labour hopeful wants stricter rental controls

Scottish labour hopeful wants stricter rental controls

Encouragement

In the piece, Mr Leonard said: ‘I want to see legislation to enact stringent rent controls and measures to encourage landlords to improve properties: a ‘Mary Barbour’ law.’

‘There will of course be howls of outrage from the rentier interest. But if we are to be a movement for real change, we must be prepared to face down the complaints of the few in the interests of the many.’

‘We as a party can live up to the example set by ‘Mrs Barbour’s Army’ and show at least the level of determination and ambition of the women of the Glasgow slums a century ago.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/9/scottish-labour-hopeful-calls-for-stringent-rent-controls