Year: 2020

Many landlords resent tenants being given tax-payer funded help to fight evictions, but vulnerable tenants face a possessions system stacked against them after August, it has been claimed.

The Law Society has called for vulnerable tenants to be given access to Legal Aid when the possession hearings re-start in August, but experts that LandlordZONE has talked to warn that this laudable intention is unlikely to be delivered.

The Law Society says the lengthened stay on evictions is an important step to protect vulnerable tenants, and its president Simon Davis claims that: “When hearings recommence, it is vital that legal aid is available to tenants and that the safety of court users is ensured.”

After August 23rd, Courts will hear most possession hearings remotely until the autumn and could conduct possession hearings by phone or Skype.

Letters sent our recently by at least three county courts suggest that the lack of a duty solicitor, plus the practicalities of remote hearings, will make it hard for tenants to access any sort of advice and support, including Legal Aid.

Simon Davis, president of the Law Society, tells LandlordZONE: “The Law Society considers it is vital that those facing the loss of their home have access to legal advice and representation. The Housing Possession Court Duty Scheme is a crucial part of ensuring that; we would therefore expect the duty scheme to be part of any plan to restart possession hearings.”

Duty solicitor

But housing solicitor Sue James, of Hammersmith & Fulham Law Centre, believes taking away the duty solicitor will almost certainly mean more evictions.

“Clients facing possession proceedings often have welfare benefit problems which means they are on very low incomes,” she says.

“They may also lack computers to access the court remotely or to have data or credit on their phones. Remote hearings for duty possession cases are not workable.”

The housing team at Citizen’s Advice tells LandlordZONE that many of its offices are already working with their local courts to discuss what support can be put in place so defendants have access to advice beforehand, and representation if needed.

It adds: “If they have been unable to access advice, then they should ask the court about what local arrangements have been made. They could also ask the court to adjourn the case to allow more time to get advice.”

Paul Shamplina of Landlord Action adds: “Getting Legal Aid at the best of times is very difficult for tenants because they have to prove they quality and often they don’t, but until we get a clear understanding of court representation, everyone’s a bit in the dark.”

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Airbnb owners may have to follow a new set of property cleaning protocols when the tourism industry re-opens on 4th July, it has been revealed.

The UK Short Term Accommodation Association (STAA) has developed the protocols with many of the UK’s leading tourism bodies for self-catering and short-term lets rentals.

The document has been shared with the Department of Culture, Media and Sport (DCMS) and are designed to support DCMS Secretary Oliver Dowden’s efforts to open up this part of the tourism industry if ‘consistent with public health’.

Merilee Karr, Chair of the STAA says: “Self-contained accommodation has a lower risk than other areas, so I would hope that that will be at the front of the queue and the industry wants to ensure everyone is ready and able to meet the right standards,” he said recently.

“These protocols should provide consumers with the confidence to travel safely to any property that meets them,”

“I agree with Minister Dowden that short-term rentals which adhere to these cleaning protocols, offer a comparatively low-risk option for customers looking to book a holiday in the current environment.”

For landlords with Airbnb or other short lets platform properties, one of the best steps they can take is to get independently accredited by the STAA industry partner Quality in Tourism, through its Safe, Clean and Lega assessment scheme.

The protocols include:

Risk assessment

• The core principle of the guidance is risk management which is why a risk assessment of the property is the first thing that needs to be done. Broadly speaking, it involves identifying potential risks within a property and taking active steps to mitigate those risks.

Cleaning

• Cleaners must wear appropriate protective clothing, avoid using microfiber cleaning cloths and instead use disposable sanitising wipes because they are less likely to spread the infection accidentally. They must use products which both sanitise and disinfect and keep any contact with guests to an absolute minimum.
• It’s recommended that a cleaning checklist is given to cleaners with a clear set of instructions to follow, guidance on the basic materials and equipment to be used and specific areas that cleaners should be mindful of. Also, provide a cleaning standards tick list for incoming guests to show what has been cleaned.

Guest contact

• Contact may sometimes be inevitable e.g. when checking passports/IDs. In these circumstances, operators should wear protective clothing and maintain a safe two metre social distance whenever possible.
• Operators should consider using contact-free check-in methods, such as key safes, although they must be mindful that such methods still pose a contamination risk.
• Operators should ensure that guests have all of the relevant information that they need ahead of their arrival. Tips include providing information for guests via email before they arrive such as helpful numbers and contacts, guidance in case a guest shows COVID-19 symptoms, a list of local walks/attractions that are open under social distancing rules and appliance and heating instructions.

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There is no eviction crisis looming for private sector tenants, as new independent polling shows almost all have been able to pay their rent as usual during the coronavirus pandemic.

In the survey of over 2,000 tenants across England and Wales, 90 per cent said that they had paid their rent as usual since the coronavirus crisis began.

Most, 84 per cent, had not needed to ask their landlord for any support. Of those that did ask, three quarters received a positive response.

According to the National Residential Landlords Association (NRLA), which commissioned the poll by Dynata, this shows that concerns over a spike in evictions once the current evictions ban is lifted, are unfounded.

Pre-action protocol

Ahead of the moratorium being lifted on repossession cases, the NRLA is working with the Government to develop a pre-action protocol (PAP) for the private rented sector.

This would ensure that landlords and tenants have done everything possible to reach an agreement on rent arrears before any repossession can take place.

When hearings do resume, the NRLA is calling for priority to be given to cases involving debt built prior to the lockdown, where tenants are engaged in anti-social behaviour or who might be committing domestic abuse.

Commenting on the results, Ben Beadle, the Chief Executive of the NRLA said: “This survey reflects what we know from our members, which is that nearly all are seeking to support tenants to stay in their homes.

“Given that some 30 per cent of landlords have reported facing some level of financial hardship, they will do all they can to sustain tenancies.

“We understand the concerns of tenants who have built up rent arrears as a result of losing income, but even where a landlord seeks to repossesses a property, our legal advice is that a pre-action protocol would provide protection from any landlord seeking to circumvent it and allow Judges to adjourn cases where it has not been followed.

“To argue that there will be a substantial spike in evictions is scaremongering.”

More help needed

Although the NRLA has welcomed support for the sector from the Government it says further help should be given to ensure tenants have the cash they need to pay their rent.

This includes further extending the Local Housing Allowance so that it fully covers rents; ending the five week wait for the first payment of Universal Credit or converting the existing advance to a grant; and enabling the housing element of Universal Credit to be paid directly to the landlord giving tenants certainty about rent payments.

The association is also asking the Government to look at a hardship loan scheme for tenants where existing housing support payments are insufficient to meet their costs during the crisis, but who expect their finances to recover in the short to medium term.

“The loans would be paid directly to the landlord and could be re-paid by the tenant within a fixed number of years.”

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The Law Society for England and Wales says legal aid should be made available for tenants who face eviction once the extended ban ends on August 23.

In a statement released in response to the extension, the society says the additional two months of the ban is ”an important step to protect vulnerable tenants during the uncertain time brought by the Covid-19 pandemic.”

Simon Davis, president of the Law Society, says the move is “bringing relief to millions of tenants” and adds:  “The government first brought in these measures on 26 March 2020, for an initial period of three months, but has now extended for an additional two months, so vulnerable tenants can get the help they need, and courts can continue to make the necessary arrangements.

“The government has also committed to passing new court rules that will protect vulnerable tenants from eviction once the stay has been lifted.

“When hearings recommence, it is vital that legal aid is available to tenants and that the safety of court users is ensured.”

The society points out that schedule 29 of the Coronavirus Act 2020 remains in force until the end of September.

Under this Act, landlords must provide tenants with a notice period of three 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.

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Harrow council in north London has launched a formal consultation on its plan to renew its landlord licensing scheme in the Edgware area.

It wants all rental properties in the ward to be licensed, with landlords being expected to pay £550 for a five-year licence.

The council says the scheme would enable heightened fire safety standards, improved basic amenities and management of the rented properties.

A council spokesman says: “Our residents deserve to live in clean and safe homes. While the majority of landlords to take care good care of their tenants, there are unfortunately a minority who simply don’t care.

“The Selective Licensing scheme has worked really well in Edgware allowing us to take tough action against some of our bad landlords – while also allowing us to support landlords who want the best for their tenants to protect them from risk or harm.

“We want to continue work together to reduce anti-social behaviour and improve the quality of life for tenants. We are asking those who live in the area to have their say.”

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Campaigning organisations that demanded an extension to the evictions ban imposed because of the Coronavirus crisis have been quick to return to claims that tenants face continued hardship – even though the ban has now in fact been extended.

As we reported last Friday evening, Housing Secretary Robert Jenrick has given the ban a two month extension.

However, Shelter chief executive Polly Neate says the move is merely a stop-gap.

“The ban hasn’t stopped people who’ve lost their jobs during this pandemic from racking up rent arrears. Even if they have a plan to pay them back, these debts will throw struggling renters straight back into the firing line of an automatic eviction as soon as the ban does lift” explains Neate.

“It’s critical that Robert Jenrick uses this extension wisely to change the law and properly protect renters. Judges must be given the power to stop people losing their homes because of coronavirus, otherwise the country will face a tidal wave of homelessness after the summer” she continues.

“Sooner or later, the government has to stop kicking the can down the road.”

And Generation Rent tweeted: “The eviction ban has been extended and you can safely stay in your home until August … This crisis isn’t ending anytime soon and millions of renters are still struggling with debt.

“We need long-term rent relief and a permanent end to unfair evictions, but this step will keep renters in their homes, for now.”

Meanwhile Dame Gillian Guy, chief executive of Citizens Advice, has issued a statement saying: “Extending the pause on repossession action is important recognition from the government that many renters are facing real hardship during the coronavirus outbreak, and will give thousands of people a welcome breathing space.

“But simply extending the pause of repossession is a sticking plaster not a cure. People who have fallen behind on rent arrears and those who have been furloughed or lost their jobs will need the security of proper reform to the rules governing evictions.

“We look forward to working with the government in the coming weeks on changes to make sure they keep their promise, that no renter should lose their home because of Coronavirus.”

Over the weekend the National Residential Landlords Association produced survey results showing that there never had been any eviction threat of the kind claimed by campaign groups prior to the ban’s extension.

In an independent survey conducted with over 2,000 tenants across England and Wales, 90 per cent said that they had paid their rent as usual since the coronavirus crisis began.

Most, 84 per cent, had not needed to ask their landlord for any support. Of those that did ask, three quarters received a positive response.

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The current restriction on Airbnb-style short lets to 90 nights a year in London could spread to other cities – and the rental sector could be better off for it.

That’s the view of a leading lettings PropTech expert, Neil Cobbold of automated payment provider PayProp.

The House of Commons library recently published a 46-page briefing document discussing the calls for greater regulation of short-term lets, and while the government has made it clear it is not in favour of any ban on short lets, it is expected to give its views on possible regulation later this month.

One restriction currently in place – but in London only – is a 90 night annual limit on any one residential property being used for short lets.

“It’s been reported that the 90-day rule in London is flouted regularly, so its effectiveness needs to be reviewed. What’s more, as the popularity of short-term lets grows in other cities across the country, similar limits may need to be considered elsewhere” Cobbold believes.

“The issues raised by widespread short-term lets are well-documented. However, the financial benefits for local economies and landlords are hard to ignore,” Cobbold explains.

“Finding a balance that recognises the value of short-term lets while minimising the impact of the issues they cause will be crucial to the sector’s long-term success.”

Before the Coronavirus outbreak, the short-term lets sector was growing quickly.

ARLA Propertymark research found that the number of UK Airbnb listings reached 223,000 in 2018, up from 168,000 in 2017 – a rise of 33 per cent.

By March 2020, there were 88,100 Airbnb listings in London alone – almost five times higher than the number recorded in April 2015 – according to analysis by campaign organisation Inside Airbnb.

“The rapid growth of the short term lettings sector has encouraged calls that it should be regulated, which is understandable considering the level of regulation in the traditional private lettings market,” says Cobbold.

“Despite the government’s opposition to formal regulation, the briefing document indicates its acceptance that the future of short-term lets needs to be discussed, which is positive in itself.”

“Debate around the questions raised in the briefing paper could lead to new solutions for some of the issues around the sector, while still allowing it to thrive” he says.

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More than a third of furloughed private renters are worried about being able to pay their rent when the coronavirus lockdown ends, according to new research published today by the Joseph Rowntree Foundation, a think tank.

The federation says this means around 250,000 people in this group could be in a position where they struggle to meet their housing costs when the lockdown ends.

The research, based on a sample of 1,031 private renters in a YouGov survey of 6,430 UK adults, demonstrates what the federation calls “the precarious situation faced by many households who are renting privately.”

The government recently temporarily increased the amount of support private renters can get for their housing costs, known as Local Housing Allowance up to the cheapest 30 per cent of local market rents.

The JRF says this was a step in the right direction, but for many it still leaves a big gap between the support available and the real cost of renting, especially in areas with high rents where an overall cap prevents households from getting the support they need to meet their housing costs.

As examples, it cites that renters in a two-bedroom property who were eligible for all their rent to be covered would see a gap of around £150 a month in Brighton, £100 a month in central Manchester, York and Cambridge and around £80 a month in Liverpool.

In some Central London boroughs, this gap would be £1,715 a month, the federation claims.

JRF is calling for an increase in LHA to cover median rents in all areas, as well as the removal of the national cap on the amount of LHA that can be paid, so that it does not limit support in high-cost areas.

The temporary ban on evictions introduced by government is currently in place until the end of June, and there are fears of a surge in eviction proceedings if it is not extended, as large numbers of tenants will no longer be able to afford their rent.

“This could unravel the considerable progress the government has made by housing thousands of homeless people, as high housing costs are a significant driver of homelessness” claims a federation statement.

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An analysis of buy to let returns from mortgage lender Mojo has produced a league table with no London locations in the top 20 postcodes.

Using information from HM Land Registry, Zoopla, OnTheMarket and property data portal PropertyData, the lender says that the north of England dominates the league table.

In Liverpool landlords enjoy yields of up to 10 per cent, closely followed by Bradford, Sunderland and Middlesbrough; even postcodes towards the lower end of the top 20 such as those in Aberdeen and Glasgow are returning yields of seven per cent.

Stubbornly purchases prices in London means generally low yields throughout the capital.

The postcode of W1 in central London generates the worst yield at 1.4%, with the average asking price of a property around £2.3m, whilst average asking rent is at £2,807 per month.

Mojo says the best of the ‘worst’ is in Hampstead Heath, N6; the average price is £865,000 and average asking rent is £1,614, making the buy-to-let yield 2.2 per cent.

The top 20 are:

Liverpool L7 (10.1% yield);
Bradford BD1 (10.0%);
Sunderland SR1 (9.4%);
Middlesbrough TS1 (8.8%);
Leeds LS4 (8.6%);
Liverpool L6 (8.4%);
Liverpool L1 (8.1%);
Newcastle-Upon-Tyne NE6 (7.8%);
Pontypridd CF37 (7.7%);
Manchester M14 (7.6%);
Edinburgh EH8 (7.6%);
Glasgow G31 (7.5%);
Liverpool L15 (7.4%);
Liverpool L2 (7.4%);
Sheffield S1 (7.2%);
Glasgow G32 (7.2%);
Birkenhead CH41 (7.1%);
Aberdeen AB11 (7.1%);
Glasgow G4 (7.0%);
Aberdeen AB24 (7.0%).

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