Author: tonu

Expert reaction

Samuel Lear, Associate, Charles Russell Speechlys:  “The anticipated changes under the Renters (Reform) Bill are wide-ranging and will require significant re-adjustments to existing processes.

“But the test of the success of the Bill, once implemented, will be whether it sufficiently strikes a fair balance between landlords and tenants.

“With landlords already subject to significant statutory obligations, an unintended consequence of not striking that fair balance is that landlords could decide to leave the market altogether, causing further supply issues and potentially adversely affecting tenants.”

Original Post from landlordzone.co.uk

Local residents will be protected from being pushed out of their communities by excessive short-term lets thanks to changes in planning rules.

• Planning permission will be required for future short-term lets
• Mandatory national register will provide valuable information and help ensure accommodation is safe
• Proposals will give communities greater control over future growth
• Homeowners can continue to let out their own main or sole home for up to 90 nights a year

Local residents will be protected from being pushed out of their communities by excessive short-term lets thanks to changes in planning rules announced today.

Under the reforms councils will be given greater power to control short-term lets by making them subject to the planning process. This will support local people in areas where high numbers of short-term lets are preventing them from finding housing they can afford to buy or to rent.

These changes are part of a long-term plan to prevent a “hollowing out” of communities, address anti-social behaviour and ensure local people can continue to live in the place they call home.

Meanwhile, a new mandatory national register will give local authorities the information they need about short-term lets in their area. This will help councils understand the extent of short-term lets in their area, the effects on their communities, and underpin compliance with key health and safety regulations.

Short-term lets are now a significant part of the UK’s visitor economy, and can provide increased choice and flexibility for tourists and business travellers. To recognise this, homeowners will still be able to let out their own main or sole home for up to 90 nights throughout a year without planning permission and Government is considering how to apply the register so it does not apply disproportionate regulation for example on property owners that let out their home infrequently.

Secretary of State for Levelling Up Housing and Communities, Michael Gove said:

Short-term lets can play an important role in the UK’s flourishing tourism economy, providing great, easily-accessible accommodation in some of the most beautiful parts of our country.

But in some areas, too many local families and young people feel they are being shut out of the housing market and denied the opportunity to rent or buy in their own community.

So the Government is taking action as part of its long-term plan for housing. That means delivering more of the right homes in the right places, and giving communities the power to decide.

This will allow local communities to take back control and strike the right balance between protecting the visitor economy and ensuring local people get the homes they need.

Tourism Minister Julia Lopez said:

Short-term lets provide flexibility for homeowners and give tourists more accommodation options than ever before, but this should not prevent local people from being able to buy or rent homes in their area.

The Government is committed to getting the balance right to ensure both local people and our visitor economy can thrive.

Amanda Cupples, General Manager for Northern Europe, Airbnb said:

The introduction of a short-term lets register is good news for everyone. Families who Host on Airbnb will benefit from clear rules that support their activity, and local authorities will get access to the information they need to assess and manage housing impacts and keep communities healthy, where necessary.

We have long led calls for the introduction of a Host register and we look forward to working together to make it a success.

The proposed planning changes would see a new planning ‘use class’ created for short-term lets not used as a sole or main home. Existing dedicated short-term lets will automatically be reclassified into the new use class and will not require a planning application.

The changes are part of the Government’s long-term plan for housing, unlocking more of the homes this country needs and meeting the target to deliver one million homes this Parliament, backed by £10 billion investment.

The Government also intends to introduce associated permitted development rights – one allowing for a property to be changed from a short-term let to a standard residential dwelling, and a second that would allow a property to be changed to a short-term let. Local authorities would be able to remove these permissions and require full planning permission if they deem it necessary.

Both of these measures are focussed on short-term lets, and therefore the planning changes and the register will not affect hotels, hostels or B&Bs.

Further details of these measures will be set out in the Government’s response to the consultations, including the timeline for implementation of the register, the use class and the individual permitted development rights – with the changes being introduced from this summer.

Original Post from gov.uk

The way private landlords are treated by councils will be exposed as the ‘the next Post Office scandal’ it’s been claimed.

Des Taylor, a director of Landlord Licensing & Defence, a company that helps landlords comply with regulations and defend themselves against council actions, said that tenants are treated in a substandard way by local housing authorities, and yet nothing is done about it.

Instead, he believes that councils are guilty of severe maladministration, excessive enforcement and unfair licensing conditions against private sector landlords.

Taylor highlights that many local authorities fail to implement repairs and deal with anti-social behaviour for their own housing stock, while imposing criminal liability on landlords in the private sector for matters beyond their control.

He said: “Councils are the next Post Office scandal – the makings are all there.

“Tenants are human beings who deserve decent living conditions, but they are let down by councils who make nonsense PR statements about learnings and not meeting their own high standards, when they are found guilty by the Housing Ombudsman for severe maladministration.”

He points to the recent £18,800 compensation order from the Housing Ombudsman for Waltham Forest Council failings in three different cases, where the council closed a file on a tenant’s desperate repair request and did not do the repair for 11 months, despite the property having severe issues of mould and damp.

He commented: “It is disgraceful that they would ignore a tenant’s plea for help and not do the repair.

“In the private rented sector, a landlord would be hounded by enforcement operatives from the council, have Abatement Notices, Improvement Notices imposed upon them, and face serious trouble and legal action if they did not act promptly or dared to challenge the council’s demands, even if they were incorrect.”

He also accused councils of subcontracting tasks to firms that misadvise landlords and tenants, and of imposing licence conditions that are entrapment and unfair.

Taylor continued: “One of the council advisors asked a landlord if he would consider letting the tenant sublet, which would make a HMO, even though the area is both Article 4 (Planning Restricted) and a HMO Additional Licensing area, which would entrap the landlord if he had unwittingly agreed.

“Of course, they work for a landlord adversary, tenant loving company.”

He added: “Waltham Forest is a very regulated borough with Selective Licensing across the borough, with licence conditions that impose on licence holders the responsibility for ensuring compliance with its conditions at all times, and the criminal liability for anti-social behaviour, which the council and the police have proven themselves incapable of controlling.

“The council are not held to any standard and a Public Enquiry into this must happen for this and all local housing associations.”

He said that there are 10,000s of landlords who have been punished far more for far less serious matters, and that this will continue until the Public Enquiry takes place.

Mr Taylor said: “These articles show that the CEOs of these authorities are asleep at the wheel and incompetent, and at the same time the council staff in another department can punish private sector landlords who do the best they can, and spout lies and misinformation about landlords in the private rented sector, this is scandalous.

“How councils deal with Private Sector Landlords is the next Post Office scandal, and they will be exposed and held accountable for their actions.”

Original Post from propertyindustryeye.com

Government-backed loan fund known as the affordable homes scheme is getting a £3bn uplift, which is expected to deliver 20,000 new homes.

The expansion of the Affordable Homes Scheme, which provides low-cost loans to housing providers, will support thousands of new homes. For the first time, the scheme can also be used to upgrade existing properties, making them warm and decent for tenants.

Providers will be able to apply for loans to carry out vital building safety works, such as the removal of dangerous cladding.

Backed by the Department for Levelling Up, Housing and Communities, the now £6bn fund will help housing providers access low-cost loans so they can expand their business, build more affordable homes and upgrade their existing stock.

Housing Minister Lee Rowley said:  “We know getting cost-effective loans can be a stumbling block for many developers building more affordable homes or upgrading their existing stock, so it is of the quality tenants deserve.

“This new round opening today will not only improve the lives of those already living in homes, but help thousands of families benefit from new, high-quality, affordable housing.”

Launched in 2020, the scheme, delivered by ARA Venn, is already helping 12 providers to deliver 6,290 new homes, with thousands more to be built in the coming years.

Among the beneficiaries of the scheme is Watford Community Housing. They first accessed the scheme back in November 2021 and it helped them build 200 new homes, including the firm’s first modular development.

As part of a second funding application made in December, they are set to build a further 100 affordable homes.

Watford Community housing deputy chief executive, Paul Richmond, said: “We were delighted to work with ARA Venn for a second time under the current Affordable Homes Guarantee Scheme. The funding represents excellent value for the sector and offers best value for fixed rate debt for our organisation.

“The benefit of using the Affordable Homes Guarantee Scheme in terms of pricing over our 30-year plan is worth nearly 100 additional homes being delivered into our local community. This has significant commercial benefit to us but more importantly has a direct impact on the wider need to build more housing across the country.”

Richard Green, portfolio manager for AHGS20 and partner at ARA Venn, added:  “We are delighted that we will be able to provide low-cost loans to private registered providers across England to now facilitate investment in existing homes, in addition to new ones.

“We look forward to continuing and building on the success of the Affordable Homes Guarantee Scheme, that has already proved a key source of funding for the sector.

“This timely expansion of the scheme allows us to support the sector’s balancing of investment priorities between providing new homes and ensuring the quality and energy efficiency of existing homes.”

The government says it is making good progress and is on track to meet its manifesto commitment to build 1 million homes this Parliament and the target to deliver 300,000 homes a year remains.

This work is being supported by £10m investment to boost housing supply since the start of this Parliament. This is alongside the £11.5bn affordable homes programme, which will unlock £38bn in additional private investment.

Original Post from propertyindustryeye.com

Over 50 firefighters were called to YMCA Bournemouth on Westover Road at around 1.30am on December 18 after a fire erupted in one of the flats on the fifth floor.

Following an investigation by Dorset and Wiltshire Fire and Rescue Service it was found that a converted electric bike was the cause of the fire.

The fire service is now warning the public about potential fire risks with lithium-ion batteries and to only buy from reputable sellers.

A new analysis of the private rental sector suggests that between 800,000 and one million more homes are required to meet growing demand by 2031.

Savills – an estate agency which is a long-time stalwart of Build To Rent – has looked at the private rental sector overall, and not just BTR. It has calculated the propensity of different age groups to rent and applied this to government household projections.

• A total of 83% of landlords have had tenants breach their tenancy agreement
• Most common breaches include not keeping the property sufficiently clean
• Other breaches include keeping a pet without the landlord’s permission 

More than eight out of ten landlords say they have had a tenant breach their tenancy agreement, according to new research.

Direct Line surveyed 500 landlords in October and November last year and found that 83 per cent had experienced a tenancy breach.

The most common breaches included not keeping the property sufficiently clean and maintained – at 36 per cent – and failing to notify a landlord of required repairs at 29 per cent.

Other breaches include damaging or making alterations to the property, keeping a pet in the property, smoking or vaping in the property and redecorating without permission.

All of these other breaches were reported by more than a quarter of the landlords surveyed.

The most common sanction for broken tenancy agreements is to have money deducted from the tenant’s deposit, to issue the tenant with a written or verbal warning, or to ask the tenants to pay for the damages or work themselves.

Landlords are being urged by Direct Line to have their properties inspected regularly to help check for any breaches.

Left unaddressed, issues such as required repairs may cost more money to rectify if they are left in the long run.

Despite this, just over half of landlords – at 55 per cent – conduct six-monthly property inspections, according to the Direct Line research.

A further 21 per cent make only annual checks, while 10 per cent of landlords admit that they only visit their properties at the start and end of the tenancy.

Fourteen per cent of landlords visit their properties less often than that, or only if they suspect there is an issue.