Year: 2020

The independent chief inspector of borders and immigration, David Bolt, has asked landlords to let him know if the new virtual way of ‘stamping’ passports is making their attempts to establish tenants’ right to rent a home in the UK more difficult.

This follows the Home Office decision to allow people from some countries to use its ePassport gates, now ubiquitous in airports, to enter the UK, rather than having their passports stamped.

Bolt is looking at five areas of immigration operations – asylum casework, the settled-status scheme, adults at risk in detention; UK Visas and Immigration’s front-end services; and e-gates.

“I am about to begin an inspection of the Home Office’s use of ePassport Gates and would like to invite anyone with relevant knowledge and experience to write to me with their evidence,” he says.

“In recent years, the use by Border Force of ePassport Gates to manage arriving international passengers has increased.

“The gates use technology to authenticate e-passports and to link the passenger to the travel document through a facial biometric comparison and have become a key component of Border Force’s strategy for managing the UK border efficiently and effectively.”

But campaigners say that because ‘B5JSSK nationals’ arriving to live in the UK no longer have to have their passports stamped and use the e-gates instead, landlords face problems establishing their Right-to-Rent status when they apply for a tenancy.

These are people from Australia, Canada, Japan, New Zealand, Singapore, South Korea and the US.

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In the latest twist in the long-running saga of the eviction ban, the government has revealed changes to notice periods.

The changes – announced this afternoon and taking effect over the weekend – mean agents and landlords will only need to give tenants who have committed anti-social behaviour four weeks’ notice of their intention to repossess a property.

Those who have committed acts of domestic violence will only need to be given two weeks’ notice.

In cases of tenant rent arrears, landlords will now only be required to give four weeks’ notice where a tenant has built six months of arrears.

Where tenants are required to vacate property as a result of failed follow up Right to Rent checks, 12 weeks notice will be required.

This will ensure action can start to be taken now against tenants whose arrears had been built up before the COVID lockdown.

This legislation will not be applied retrospectively. Forms 3 and 6a have been updated and will be published tomorrow. ARLA Propertymark understands that the validity of a section notice is being extended to 10 months in order that it does not expire prior to being actioned.

The National Residential Landlords Association has welcomed the changes but says they are ineffective without a cast iron guarantee that the courts will begin to hear cases on September 20.

It adds that aIt is disappointed the six-month notice period will remain in cases where landlords need to regain possession of a property in order to live in it. This will continue to penalise those, such as service men and women in the military, renting their homes out whilst working away.

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The Mayor of London is causing needless fear for renters as he wrongly assumes that everyone in arrears due to COVID-19 is at threat of eviction.

The NRLA has accused the Mayor of scaremongering when he claims that up to a quarter of tenants are in arrears and under threat of eviction.

With the courts due to begin again to hear possession cases from 24th August following a five month suspension, the NRLA is pointing to new polling showing that 95 per cent  of tenants in London are either paying their rent in full or have reached an arrangement with their landlord to avoid arrears. This includes 83 per cent who are paying their rent in full and on time. For the remaining 12 per cent landlords have agreed for tenants to pay less rent or defer payment during the pandemic.

The Association has written to the Mayor calling for a greater collaboration between him and private landlords. It is also calling for an end to the rhetoric which is stoking up tensions between tenants and landlords when what is needed is a spirit of partnership and understanding between both sides.

New rules being introduced will mean courts can adjourn possession cases where landlords have failed to demonstrate that they have fully taken account of the impact that the pandemic might have had on their tenants before seeking possession.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“This has clearly been a challenging time for tenants and landlords across London. It is not in anyone’s interests to cause unnecessary anxiety for tenants through making wild predictions about people losing their home.

“The vast majority of tenants and landlords are working well together to weather the current crisis. With new court rules in place, it will be in the interests of landlords to do everything they can to sustain tenancies where possible.

“It is that spirit of co-operation that we need to build upon.”

Blog Post from NRLA

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Over 95% of private tenants are paying their rent or have made an arrangement with their landlord to pay less rent or defer payment during the pandemic according to a new survey of tenants out today.

Independent polling for the National Residential Landlords Association finds that 87 per cent of private tenants have paid their rent as normal throughout the pandemic. An additional eight per cent said that they had agreed a reduced rent, a rent-free period or made some other agreement with their landlord or letting agent.

Ahead of the courts beginning to hear possession cases from 24th August, the survey shows that just over three per cent of tenants are building arrears and are unable or unwilling to repay these. Less than a third of all those with arrears (two per cent of the entire survey sample) have been served with a possession notice.

Further evidence that landlords are working to keep tenants in their homes comes from a survey which shows that 55 per cent of landlords who have granted at least one tenant a deferred rent or rent free period plan to absorb the losses from their own savings.

These figures come ahead of new rules being introduced which will mean courts can adjourn possession cases where landlords have failed to adequately explain the impact that the pandemic might have had on their tenants before seeking possession.

The NRLA has developed guidance in conjunction with other groups to support landlords and tenants to agree how to deal with rent arrears to sustain tenancies wherever possible.

It is now calling for Government guaranteed hardship loans to be made available to help those tenants who are in arrears because of the pandemic. Ahead of the winding down of the furlough scheme, the NRLA argues that such loans should be provided to eligible tenants interest free and ring-fenced solely to cover rent payments in order to give tenants security.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Consistent with our previous surveys, this latest data demonstrates that the vast majority of landlords and tenants are working together constructively to sustain tenancies, and critically that the overwhelming majority of tenants are paying as normal. Eviction is not, and need not be, an inevitable outcome where tenants have struggled to pay their rent due to COVID-19. Those who argue otherwise are stoking needless anxiety for tenants.

“When the courts do start to hear cases again, it is essential that they deal swiftly with the most serious cases, including those where tenants are committing anti-social behaviour or where there are long standing rent arrears that have nothing to do with the pandemic.

“To offer security to tenants and landlords badly hit during the lockdown we are calling on the government to introduce a tenant loan scheme to help pay off arrears built due to the coronavirus.”

Blog Post from NRLA

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New research by lettings management platform Howsy shows which major London commuter hubs make the most attractive potential for buy to let investors.

The platform says that with working from home causing many to look outside of London for a more affordable rental, growing demand for these properties provides an opportunity for buy to let operators.

However, location is essential and Howsy’s research shows that the average rental yield currently sits at just 3.7 per cent across 20 major commuter hubs on the outskirts of London.

That’s lower, in fact, the the current London average of 4.1 per cent.

Harlow tops the table at a yield of 4.6 per cent with Reading close behind on 4.5 per cent.

Luton, Crawley, Slough and Dartford are all at or just above the London average of 4.1 per cent annual yield.

Within London, Tower Hamlets is the highest-performing borough at 4.7 per cent while Newham, Barking and Dagenham, Lambeth, Greenwich, Southwark and Ealing are all between 4.1 and 4.5 per cent.

Commuter Town or London Borough	Average Rent (PM)	Current Average House Price	Average Rental Yield
Tower Hamlets	London Borough	£1,835	£472,662	4.7%
Harlow	Commuter Town	£1,006	£262,524	4.6%
Reading	Commuter Town	£1,043	£276,130	4.5%
Newham	London Borough	£1,453	£387,326	4.5%
Barking and Dagenham	London Borough	£1,208	£327,136	4.4%
Lambeth	London Borough	£1,908	£525,487	4.4%
Greenwich	London Borough	£1,476	£415,693	4.3%
Luton	Commuter Town	£809	£229,983	4.2%
Crawley	Commuter Town	£1,004	£285,725	4.2%
Southwark	London Borough	£1,718	£488,610	4.2%
Slough	Commuter Town	£1,016	£296,738	4.1%
Dartford	Commuter Town	£1,000	£292,213	4.1%
Ealing	London Borough	£1,569	£454,027	4.1%
Bexley	London Borough	£1,092	£331,679	4.0%
Brent	London Borough	£1,502	£446,966	4.0%
Enfield	London Borough	£1,292	£386,000	4.0%
Havering	London Borough	£1,169	£352,951	4.0%
Rushmoor	Commuter Town	£891	£270,423	4.0%
Merton	London Borough	£1,640	£509,252	3.9%
Watford	Commuter Town	£1,087	£334,610	3.9%
Croydon	London Borough	£1,140	£358,356	3.8%
Hounslow	London Borough	£1,352	£423,042	3.8%
Islington	London Borough	£2,003	£632,270	3.8%
Redbridge	London Borough	£1,311	£418,473	3.8%
Wandsworth	London Borough	£1,958	£624,858	3.8%
Harrow	London Borough	£1,387	£454,716	3.7%
Lewisham	London Borough	£1,316	£424,233	3.7%
Sutton	London Borough	£1,151	£377,458	3.7%
Waltham Forest	London Borough	£1,352	£437,153	3.7%
Braintree	Commuter Town	£837	£272,852	3.7%
Guildford	Commuter Town	£1,415	£461,574	3.7%
Stevenage	Commuter Town	£885	£289,009	3.7%
Southend	Commuter Town	£873	£288,327	3.6%
Bromley	London Borough	£1,307	£430,033	3.6%
Maidstone	Commuter Town	£875	£293,072	3.6%
Chelmsford	Commuter Town	£979	£330,064	3.6%
Bracknell	Commuter Town	£1,024	£345,763	3.6%
Hackney	London Borough	£1,842	£638,683	3.5%
Haringey	London Borough	£1,669	£565,343	3.5%
Richmond upon Thames	London Borough	£1,835	£633,481	3.5%
Barnet	London Borough	£1,499	£532,569	3.4%
City of London	London Borough	£2,274	£792,583	3.4%
Hammersmith and Fulham	London Borough	£2,117	£747,174	3.4%
Hillingdon	London Borough	£1,200	£417,977	3.4%
Westminster	London Borough	£3,046	£1,085,013	3.4%
Gravesham	Commuter Town	£903	£321,057	3.4%
Brentwood	Commuter Town	£1,154	£430,739	3.2%
Tunbridge Wells	Commuter Town	£1,122	£421,075	3.2%
Bishop’s Stortford	Commuter Town	£1,045	£396,304	3.2%
Camden	London Borough	£2,302	£881,096	3.1%
Kingston upon Thames	London Borough	£1,306	£506,000	3.1%
Wycombe	Commuter Town	£1,020	£410,432	3.0%
Kensington and Chelsea	London Borough	£3,023	£1,396,102	2.6%
London	London	£1,644	£485,794	4.1%
United Kingdom	UK	£959	£231,855	5.0%
London Commuter Belt Average	Commuter Belt	£999	£325,431	3.7%
Average rent sourced from Gov.uk
Average house price sourced from Gov.uk

Commuter Town or London Borough	Average Rent (PM)	Current Average House Price	Average Rental Yield
Tower Hamlets	London Borough	£1,835	£472,662	4.7%
Harlow	Commuter Town	£1,006	£262,524	4.6%
Reading	Commuter Town	£1,043	£276,130	4.5%
Newham	London Borough	£1,453	£387,326	4.5%
Barking and Dagenham	London Borough	£1,208	£327,136	4.4%
Lambeth	London Borough	£1,908	£525,487	4.4%
Greenwich	London Borough	£1,476	£415,693	4.3%
Luton	Commuter Town	£809	£229,983	4.2%
Crawley	Commuter Town	£1,004	£285,725	4.2%
Southwark	London Borough	£1,718	£488,610	4.2%
Slough	Commuter Town	£1,016	£296,738	4.1%
Dartford	Commuter Town	£1,000	£292,213	4.1%
Ealing	London Borough	£1,569	£454,027	4.1%
Bexley	London Borough	£1,092	£331,679	4.0%
Brent	London Borough	£1,502	£446,966	4.0%
Enfield	London Borough	£1,292	£386,000	4.0%
Havering	London Borough	£1,169	£352,951	4.0%
Rushmoor	Commuter Town	£891	£270,423	4.0%
Merton	London Borough	£1,640	£509,252	3.9%
Watford	Commuter Town	£1,087	£334,610	3.9%
Croydon	London Borough	£1,140	£358,356	3.8%
Hounslow	London Borough	£1,352	£423,042	3.8%
Islington	London Borough	£2,003	£632,270	3.8%
Redbridge	London Borough	£1,311	£418,473	3.8%
Wandsworth	London Borough	£1,958	£624,858	3.8%
Harrow	London Borough	£1,387	£454,716	3.7%
Lewisham	London Borough	£1,316	£424,233	3.7%
Sutton	London Borough	£1,151	£377,458	3.7%
Waltham Forest	London Borough	£1,352	£437,153	3.7%
Braintree	Commuter Town	£837	£272,852	3.7%
Guildford	Commuter Town	£1,415	£461,574	3.7%
Stevenage	Commuter Town	£885	£289,009	3.7%
Southend	Commuter Town	£873	£288,327	3.6%
Bromley	London Borough	£1,307	£430,033	3.6%
Maidstone	Commuter Town	£875	£293,072	3.6%
Chelmsford	Commuter Town	£979	£330,064	3.6%
Bracknell	Commuter Town	£1,024	£345,763	3.6%
Hackney	London Borough	£1,842	£638,683	3.5%
Haringey	London Borough	£1,669	£565,343	3.5%
Richmond upon Thames	London Borough	£1,835	£633,481	3.5%
Barnet	London Borough	£1,499	£532,569	3.4%
City of London	London Borough	£2,274	£792,583	3.4%
Hammersmith and Fulham	London Borough	£2,117	£747,174	3.4%
Hillingdon	London Borough	£1,200	£417,977	3.4%
Westminster	London Borough	£3,046	£1,085,013	3.4%
Gravesham	Commuter Town	£903	£321,057	3.4%
Brentwood	Commuter Town	£1,154	£430,739	3.2%
Tunbridge Wells	Commuter Town	£1,122	£421,075	3.2%
Bishop’s Stortford	Commuter Town	£1,045	£396,304	3.2%
Camden	London Borough	£2,302	£881,096	3.1%
Kingston upon Thames	London Borough	£1,306	£506,000	3.1%
Wycombe	Commuter Town	£1,020	£410,432	3.0%
Kensington and Chelsea	London Borough	£3,023	£1,396,102	2.6%
London	London	£1,644	£485,794	4.1%
United Kingdom	UK	£959	£231,855	5.0%
London Commuter Belt Average	Commuter Belt	£999	£325,431	3.7%
Average rent sourced from Gov.uk
Average house price sourced from Gov.uk

Blog Post from Letting Agent Today

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One of the leading figures in the lettings industry has described the government’s eviction ban U-turn as “devastating.”

Paul Shamplina, founder of Landlord Action, says: “This is absolutely devastating news for those landlords who already had possession cases ongoing prior to the pandemic.

“It means those landlords with problem tenants who have been causing anti-social behaviour or withholding rent for reasons unrelated to Covid-19 face a further delay in regaining possession of the properties.”

Shamplina echoes many in the industry with his exasperation at the late U-turn.

“Why have they left until the Friday before the courts re-open to give a further extension? … In my view, the government needs to seriously consider offering landlords, whose tenants have fallen into arrears relating to Covid-19 and can prove loss of employment, some financial support, for example three months of rent contribution.”

Timothy Douglas, policy and campaigns manager at ARLA Propertymark, adds: “Now that the ban has been extended, the government must use this time to introduce further guidance and prepare the sector.

“Given the backlog of cases already facing courts, it’s key that the government introduces sufficient guidance during this period to enable eviction proceedings to begin again smoothly and fairly when the ban is lifted.”

Meanwhile not-for-profit accreditation service safeagent has set out demands which it believes the government should enact. These are:

– An existing tenant whose income is reduced should immediately inform their landlord/agent and claim Universal Credit;

– The housing element of any UC claim should be paid direct to the landlord/agent from day one;

– Where UC is not covering the rent in full, and a mortgage is in place, the lender must agree to a reduction in mortgage payments for a specified period;

– A payment plan is then drawn up between the tenant and the landlord, supported by the agent where necessary taking account of any UC direct payments and shortfall;

– Any changes to the tenant’s circumstances are dealt with via a new payment plan;

– If necessary, the landlord/agent claims government grant to cover any debt built up due to the agreed reduction in mortgage payments.

Blog Post from Letting Agent Today

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The Law Society has set out exactly what the extension of the eviction ban, announced on Friday, means to agents, landlords and tenants.

The society says:

– Courts are neither hearing nor progressing applications for possession orders made by landlords before March 24;

– This applies to all private or social housing tenancies as well as licenses falling under the Protection from Eviction Act 1977;

– The stay applies to England and Wales;

– There are exceptions: these include applications for possession against trespassers and applications for case management directions which have been agreed by all parties;

– Schedule 29 Coronavirus Act 2020 also remains in force until September 30. Under this Act, landlords must provide tenants with a notice period of six months when issuing a notice seeking possession;

– Tenants are still obliged to pay rent during this period. If they are unable to do so, the government encourages open and honest conversations between the landlord and tenant about the tenant’s ability to pay rent.

And here is the government announcement in full, as released mid-afternoon on Friday:

Renters affected by coronavirus will continue to be protected after the government extended the ban on evictions for another 4 weeks, meaning in total no legal evictions will have taken place for 6 months, Housing Secretary Robert Jenrick has announced today (21 August 2020).

The government also intends to give tenants greater protection from eviction over the winter by requiring landlords to provide tenants with 6 months’ notice in all bar those cases raising other serious issues such as those involving anti-social behaviour and domestic abuse perpetrators, until at least the end of March.

The government will keep these measures under review with decisions guided by the latest public health advice.

When courts do resume eviction hearings they will carefully prioritise the most egregious cases, ensuring landlords are able to progress the most serious cases, such as those involving anti-social behaviour and other crimes, as well as where landlords have not received rent for over a year and would otherwise face unmanageable debts.

The government has taken unprecedented action to support renters during the pandemic, preventing people getting into financial hardship and helping businesses to pay salaries – meaning no tenants have been evicted since the start.

As a result, according to independent research, 87% of tenants have continued to pay full rent since the start of the pandemic, with a further 8% agreeing reduced fees with their landlords.

The vast majority of landlords have shown understanding and leadership, taking action to support tenants.

With coronavirus still posing an ongoing risk to public health, the government will continue to take action where necessary to further protect households in both the private and social rented sector are supported over winter, helping to keep them safe.

Today’s extension to the stay and 6 month notice periods will ensure those most at risk are protected. If tenants are unable to afford their rent we encourage them to speak to their landlord to agree a solution, and some households may decide to consider moving.

Government will continue to work with the judiciary and stakeholders to ensure that the courts are prepared for eviction cases to be heard safely.

Housing Secretary Robert Jenrick MP said:

“I know this year has been challenging and all of us are still living with the effects of COVID-19. That is why today I am announcing a further 4 week ban on evictions, meaning no renters will have been evicted for 6 months.

“I am also increasing protections for renters – 6 month notice periods must be given to tenants, supporting renters over winter.

“However, it is right that the most egregious cases, for example those involving anti-social behaviour or domestic abuse perpetrators, begin to be heard in court again; and so when courts reopen, landlords will once again be able to progress these priority cases.”

Blog Post from Letting Agent Today

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