Year: 2020

A prominent figure in the lettings industry has warned that any extension to the current evictions ban would risk hurting the most vulnerable and would damage the wider rental sector.

Dr Rosalind Beck, a doctor of Criminology and a Conservative Party member in South Wales, writes on the Conservativehome website that the current eviction ban – ending later this month – has not been a particular factor in helping renters battling Coronavirus.

In fact she claims that most tenants at risk of eviction are in that position because of failure to pay rent before the virus outbreak, not since. .

“Indeed the National Residential Landlords Association has found that most evictions are currently frozen in the court system – but still accruing rent arrears in most cases –  ‘are down to existing ongoing anti-social behaviour issues and have nothing to do with Covid.’ Paul Shamplina, an eviction specialist, has also said he has 500 cases on his books which pre-date the pandemic” she writes.

In her article she develops the theme that the winder signals sent out by an extension of the eviction ban would quickly hurt those the ban seeks to help – the most vulnerable tenants.

As landlords quit the sector because of their increasing powerlessness, she writes, “supply of rental property will shrink massively just as a greater number of homes are needed.”

Describing the landlords who may well leave the sector, Beck adds: “One can’t take the risk of getting a non-payer when there is no legal redress. Other landlords will go bankrupt as a result of paying for other people’s accommodation and often also their utility costs.

“What’s more, the eviction ban and the proposed scrapping of Section 21 notices will make those who do remain in the market, particularly portfolio landlords who house the majority of tenants, reluctant to rent to anyone other than those considered to carry the least risk of defaulting.

“Guarantors will become indispensable – which will disqualify many tenants from consideration. Just how many hotels, B&Bs, camp or caravan sites will be needed to house those unable to access any rented housing?”

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

The campaigning charity Shelter says young adults are more in danger of homelessness than any other age group – and puts part of the blame on the private rental sector.

Polly Neate, chief executive of Shelter, says the government should extend the current Coronavirus eviction ban beyond June 29.

“Even at the best of times, young adults are more in danger of becoming homeless than other age groups as they’re more likely to be living in an unaffordable private rental or have an insecure job. And as the pandemic rages on, it’s proving even harder for many young people to keep up with their rent” Neate says in an interview with The Yorkshire Times.

“Our services have heard from younger renters who are scrambling to stay afloat after their income has taken a huge hit or they’ve lost their job because of Covid-19. While they rack up debts that could put their home at risk, the end of the government’s evictions ban looms ever nearer” she continues.

In April Shelter predicted that one in five tenants – some 1.7m renters – would lose their jobs during the Coronavirus crisis; the charity also claimed that even at that time a quarter of tenants had already seen their income drop or lost their jobs.

It claimed that another quarter of renters said they were living hand to mouth and that losing their job would mean they couldn’t pay their rent.

The Labour party has already called for an extension to the evictions ban.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

Landlords have expressed disappointment at the government decision to extend the ban on evictions by a further two months.

It will be a further impetus to landlords leaving the market as confidence is at an all-time low according to the National Residential Landlords Association.

NRLA chief executive Ben Beadle says: “This decision means that some landlords will now be facing five months without receiving any rent as they can take no action against tenants who were not paying before the lockdown started.

“It also means more misery for tenants and neighbours suffering at the hands of anti-social tenants and will also cause exceptional hardship for a number of landlords, including many who depend on their rental income to live, for which there is no assistance.

“We have every sympathy with tenants who face genuine difficulties because of a loss of income due to the coronavirus crisis and as our survey out tomorrow shows, nearly all landlords are working with tenants who are struggling to keep them in their home.

“It is important that the government sets out its plans for the market at the end of this one-time extension. A failure to do so will cause serious damage to the private rented sector as a whole.

“It will ultimately be tenants who suffer as they will find it increasingly difficult to find affordable housing if landlords do not have the confidence that they will get their properties back swiftly in legitimate circumstances.”

The announcement about the ban being extended was made on Friday evening in a tweet by Housing Secretary Robert Jenrick.

“We are suspending evictions from social and private rented accommodation by a further two months. Eviction hearings will not be heard in courts until the end of August and no one will be evicted from their home this summer due to Coronavirus” said the MP’s tweet.

In mid-March Jenrick said that agents and landlords could not start proceedings to evict tenants for at least a three-month period, in a bid to ensure renters do not worry about the threat of losing their home. That period was due to end in the final week of June.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

A lettings sector group says there was never any eviction crisis looming for private tenants, contrary to a slew of recent claims.

New independent polling – conducted before the eviction ban was extended over the weekend – shows almost all tenants have been able to pay their rent as usual during the 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, which commissioned the poll by Dynata, this shows that concerns over a spike in evictions are unfounded.

Prior to the ban being extended, the NRLA was working with the government to develop a pre-action protocol for the private rented sector.

This would ensure that landlords and tenants had 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 and those who might be committing domestic abuse.

Commenting on the results of the survey Ben Beadle, the chief executive of the NRLA, says: “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.”

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, similar to a scheme developed in Spain, would be paid directly to the landlord and could be re-paid by the tenant within a fixed number of years.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

The Ministry of Housing, Communities and Local Government has issued guidelines ahead of new electrical safety checks coming into force for new tenancies from July 1.

The guidelines cover the key part of the legislation, which for landlords and their agents are namely:

– ensuring the electrical installations in rented properties are inspected and tested by a qualified and competent person at least every five years;

– obtaining a report from the person conducting the inspection and test which gives the results and sets a date for the next inspection and test;

– supplying a copy of this report to the existing tenant within 28 days of the inspection and test;

– supplying a copy of this report to a new tenant before they occupy the premises;

– supplying a copy of this report to any prospective tenant within 28 days of receiving a request for the report;

– supplying the local authority with a copy of this report within seven days of receiving a request for a copy;

– retaining a copy of the report to give to the inspector and tester who will undertake the next inspection and test;

– where the report shows that remedial or further investigative work is necessary, complete this work within 28 days or any shorter period if specified as necessary in the report; and

– supplying written confirmation of the completion of the remedial works from the electrician to the tenant and the local authority within 28 days of completion of the works.

You can see the new government guidelines here, for landlords/agents, tenants and for local authorities.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

The Chartered Institute of Housing has published proposals aimed at avoiding a spike in private rental sector evictions when the current ban ends in three weeks time.

It wants:

– a continuation of the ban on evictions solely arising from COVID-related arrears;

– a permanent end of Section 21 evictions;

– introduce repayment plans of up to two years for arrears accrued during the virus crisis;

– a wholesale reform of Universal Credit with an end to the current five-week wait; temporarily suspension of the benefit cap and the two-child limit; increasing Local Housing Allowances;

– an increased emergency fund for discretionary housing payments which should be more widely available to help with rent arrears outside scope of universal credit;

– an interest-free loan scheme to cover landlords’ loss of rental income and give landlords mortgage holidays on rented properties to pass relief on to tenants.

CIH chief executive Gavin Smart says: “While the measures put in place by government and landlords are helping millions of people during this awful time, we have to think about what comes next. Simply ending all these measures without a plan to cope with the arrears built up through the outbreak risks pushing families into homelessness and landlords into bankruptcy, just at a time when a stable housing sector is needed to help rebuild our economy.

“Our proposals build on the work we have done with homelessness groups including Crisis and Shelter, as well as housing providers. They are practical and proportionate to the threat facing millions of people. We look forward to working with the government to make them part of our national post-COVID recovery plan.”

The CIH claims:

– of 5.6m workers at high risk of losing their jobs because of the crisis, more than 1.2m are private tenants;

– around 2.6m private tenants have already missed a rent payment during the crisis;

– around a third of the ‘key workers’ who have kept services and supplies running earn less than £10 per hour.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

The government is extending the eviction ban for a further two months.

A tweet early this evening from Housing Secretary Robert Jenrick says; “We are suspending evictions from social and private rented accommodation by a further two months. Eviction hearings will not be heard in courts until the end of August and no one will be evicted from their home this summer due to Coronavirus.”

In mid-March Jenrick said that agents and landlords could not start proceedings to evict tenants for at least a three-month period, in a bid to ensure renters do not worry about the threat of losing their home. That period was due to end in the final week of June.

Responding to this evening’s announcement, Dan Wilson Craw – the director of campaigning group Generation Rent – says: “It’s a relief that the government has listened to renters’ concerns and is extending the ban. Renters who have lost income in the past few months are extremely worried about losing their home as a result. The government has averted a homelessness crisis – for now.

“But with holes in the housing safety net and much of the economy still in lockdown, millions of renters will get further behind on rent. Not all of them can rely on their landlord’s goodwill and so need further help with rent, and assurance that they can stay in their homes beyond the summer. The government must use the time it has bought itself to develop a long term solution to provide rent relief and end unfair evictions for good. ”

And the government has this evening issued its full statement to back up the Jenrick tweet. The statement says:

Millions of renters across England and Wales will receive greater protection after the government extended the suspension of new evictions until 23 August.

The extension announced by the Housing Secretary today (5 June 2020) takes the moratorium on evictions to a total of five months to ensure that renters continue to have certainty and security.

Ministers are also working with the judiciary, legal representatives and the advice sector on arrangements, including new rules, which will mean that courts are better able to address the need for appropriate protection of all parties, including those shielding from coronavirus.  This is to ensure that judges have all the information necessary to make just decisions and that the most vulnerable tenants can get the help they need.

Where tenants do experience financial difficulties as a result of the pandemic, the government is clear that landlords and tenants should work together and exhaust all possible options – such as flexible payment plans which take into account a tenant’s individual circumstances – to ensure cases only end up in court as an absolute last resort.

Over the coming weeks, the government is taking careful steps to ease lockdown measures, alongside decisive steps already taken to unlock the housing market so people can move if they need to – for example where they may need to move for work or for family reasons.

While the government is taking unprecedented action to protect tenants and landlords during these times, the ultimate ambition is to transition out of these measures at the end of August to allow the market to operate while ensuring people have appropriate access to justice.

Housing Secretary Rt Hon Robert Jenrick MP said:

We have provided an unprecedented package of support for renters during this pandemic. Today, I am announcing that the government’s ban on evictions will be extended for another 2 months. That takes the moratorium on evictions to a total of 5 months.

Eviction hearings will not be heard in courts until the end of August and no-one will be evicted from their home this summer due to coronavirus.

We are also working with the judiciary on proposals to ensure that when evictions proceedings do recommence, arrangements, including rules, are in place to assist the court in giving appropriate protections for those who have been particularly affected by coronavirus – including those tenants who have been shielding.

Lord Chancellor and Secretary of State for Justice, Robert Buckland QC MP, said:

Protecting vulnerable people has been our priority throughout this pandemic. Extending this ban will give people invaluable security in these turbulent times and work continues at pace to ensure vulnerable renters remain protected long after the ban ends.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

Rents in London have dropped by between 10 and 15 per cent as fewer people are willing or able to move to the capital in the light of the Coronavirus crisis and its fallout.

The warning comes from London-focussed agency Chestertons, which says that as a result increasing numbers of landlords are left holding empty, or soon-to-empty, properties.

Before March, the agency had been seeing gradual price increases as strong demand from tenants and a limited supply of new rental properties coming onto the market pushed prices up.

However, this trend has seen a sharp reversal since lockdown started in mid-March and prices are now around as much as 15 per cent lower.

The lower levels of demand are due to several reasons:

– The student market – including the lucrative overseas student market – has dried up as students no longer know if they will be able to study in September;

– Corporate relocations are very low, as most companies continue to ask their staff to work from home and international relocations are put on hold;

– Existing tenants on furlough or worried about their future income are delaying committing to new leases as they consider cheaper accommodation options, including moving back with family;

– Other tenants are renegotiating lower rents with their landlords to avoid the hassle, costs and risks associated with moving.

Richard Davies, Chestertons’ head of lettings, comments: “We are now coming into the busiest time of year for rentals in London when rents usually are at their highest. However, we have seen a rapid switch from a landlords market to a tenants market and landlords are now having to discount their properties by 10 to 15 per cent in order to secure a tenant, or risk facing a long void period with no rental income.”

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

Research shows that half of those in the private rental sector are aged 16 to 34, making the lettings industry vulnerable to large scale unemployment if it hits this demographic as the pandemic evolves.

For example, nearly half of the 2.8m-plus retail workers in the UK are aged between 16 to 34, with one in four aged 25 to 34.

Restaurant workers are even more likely to be young, with six in 10 of those working in food and beverage aged between 16 to 34.

The higher proportion of younger people both renting and working in at-risk job sectors exposes the lettings sector suggests the research from deposit alternative firm Flatfair and investment service Rown Estate Management.  of all sizes to the risk of their tenants being unable to pay their rent and falling into rent arrears.

To compound the issue, separate research by the Resolution Foundation suggests more than a third of 18 to 24-year-olds are earning less than before the outbreak.

The firms behind the research say buy to let landlords who rely on rental income for their livelihood may struggle to meet their own obligations if their tenants fall behind on the rent while housing associations may also find their tenants are falling behind on rents.

“As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. Rising rent arrears are likely to mount over the year as a consequence. This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments” according to Franz Doerr, chief executive and founder of flatfair.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

A new survey of COVID-19 related rental arrears shows that fewer than five per cent of tenants are behind with their rent.

The survey was the latest conducted by Belvoir, across all four of its brands.

The five per cent figure now compares to pre-lockdown arrears of two per cent.

“We have been monitoring rent arrears across all four brands – Belvoir, Northwood, Newton Fallowell and Lovelle – during lockdown and I am very pleased to confirm that our franchisees are seeing much lower figures than anticipated. In addition, we have noted a slight decrease in arrears from the first to second month” says Belvoir chief executive Dorian Gonsalves.

“We believe there are several contributory factors to Coronavirus related rent arrears being lower than anticipated – mainly because most of Belvoir’s business is outside of the London area, and average rents across the network are around £800 a month, which is more affordable for people who are furloughed. Average London rents are between £1,500 to £1,600, and this might be more of struggle for people to pay, so Belvoir tenants are at lower risk of this financial pressure” he adds.

Belvoir offices remained operational during lockdown with teams working from home: the brands’ branches are now in the process of reopening.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here