Year: 2020

Citizens Advice claims that in the two months since the lockdown began it has helped over 10,000 people with issues related to the private rental sector – and 1,000 of those have apparently related to evictions, despite the government ban.

In its latest statement on renting, issued over the weekend, it repeats its call for additional protection for renters who it describes as “vulnerable to eviction because of Coronavirus.”

The extra measures it wants include:

– accelerating the ending of Section 21 evictions;

– unspecified temporary changes allowing the courts more discretion for tenants in arrears because of Coronavirus;

– and, when these measures are in place, the implementation of ‘pre-action protocol’ of steps that landlords must follow before they can bring possession proceedings.

The statement says the government has “just one month to act” before the end of the moratorium on evictions expires on June 25.

The organisation claims that the deadline creates a cliff edge “that will pitch some renters into long-term debt or homelessness.”

Research by CA earlier this month suggested that 2.6m private renters had already missed, or expected to miss, a rent payment because of Coronavirus.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

New rules on electrical safety will be introduced this July, with expert guidance now launched by trade association NAPIT.

In addition to the NRLA’s own guide, The National Association of Professional Inspectors and Testers (NAPIT) have issued advice ahead of the introduction of the new rules which will apply to all new tenancies.

It has also introduced a dedicated online search facility on its website for landlords searching for competent and qualified tradespeople.

The new regulations require pre-tenancy and five yearly checks of all fixed appliances and wiring and will be rolled out to all existing tenancies from April 2021.

Landlords failing to comply with the new rules will face fines of up to £30,000.

Coronavirus

The NRLA had asked the government to delay the introduction of the checks – due to the issues caused by coronavirus – not least the availability of qualified inspectors.

However the government plans to stick to the original timescale, although it has issued guidance making it clear that, while landlords are still responsible for providing safe homes during the pandemic, if they can show that they have taken ‘all reasonable steps to comply with their duties’ they are not in breach if they cannot comply.

Mike Andrews, Chief Executive Officer of NAPIT  said: “As the National Association of Professional Inspectors and Testers, we see it as our duty to provide accurate, consistent and easy to understand guidance for landlords on these new regulations.

“Electrical Safety is at the forefront of everything we do, and we have worked hard on this guidance to make it easy for landlords to understand their requirements.

“We have also launched a dedicated online search facility on our website helping landlords search for competent and qualified tradespeople that they can trust to carry out their electrical inspections.

“As well as this we have created a new Landlord Electrical Installation Safety Record for our members to use which provides a summary of the often lengthy Electrical Installation Condition Report.

“We will continue to support both our members and Landlords during this period of adjustment.”

Written by Sally Walmsley

Blog Post from Residential Landlords Association

See details of our Guaranteed Rent Scheme here

The government says the housing market can start up again, provided social distancing advice is followed. Private rental tenants may be asked to allow viewings, or to give letting agents access to take photos and videos, but may feel uncomfortable about how this can be done safely.

What does the guidance say:

• Viewing should not occur where tenants are self-isolating or symptomatic, or are extremely clinically vulnerable or shielding
• Re-letting should only take place where the tenant/s have initiated the move voluntarily
• Initial viewings should be done virtually
• Physical viewings should be limited to as few people as possible. And there must be no ‘open house’ viewings
• Precautions such as opening internal doors, cleaning of surfaces should be taken
• Tenants should leave the property for the duration of the viewing where possible.

What rights do tenants have:

• You do not have to leave your home just because a fixed term has come to an end – unless your landlord has obtained an order for possession
• Even in this instance, in many cases measures to delay the process have been put in place. There’s more detail on this page of our website
• If you don’t want your landlord or letting agent to organise viewings you can refuse and they may not enter without your permission
• However, allowing access may be a part of your contract, and breaching the terms of your contract may allow your landlord to take steps to enforce it – through an injunction or serving notice and make a claim for possession
• But to succeed the landlord needs to prove they are being reasonable, and a court may not consider it reasonable if the tenant is taking steps to protect themselves against a potential health risk
• A landlord who serves a so-called ‘no fault eviction’ section 21 notice, however, does not need to prove that they are acting reasonably.

What is Citizens Advice calling for:

Citizens Advice wants the government to extend the measures put in place to protect tenants from the financial impact of the coronavirus pandemic. In particular the government should accelerate its policy to scrap section 21 – so called ‘no fault evictions’. We’re also calling for temporary changes to allow courts further discretion when faced with tenants whose rent arrears have been caused by the coronavirus outbreak. Without these changes, tenants face a cliff edge when current protections end on 25 June.

Amy Hughes, housing expert at Citizens Advice, said:

“The most important thing is that tenants are safe – and feel safe. Tenants should not be pressured to allow viewings. The government guidelines stress that social distancing must be adhered to and that there should be no viewings at all in properties where tenants are shielding, or self-isolating because they have symptoms of coronavirus.

“In addition, properties should only be put on the rental market if the tenant has said they want to move.

“However, existing measures to protect people who are having difficulty paying their rent because of the pandemic are only temporary. Possession proceedings to allow landlords to evict tenants are only paused until 25 June.”

Blog Post from Citizens Advice

See details of our Guaranteed Rent Scheme here

Tenants’ safety should be letting agents’ first priority in the new era of activity during the Coronavirus pandemic.

In a new document issued by the Ministry of Housing, Communities and Local Government, agents are told to “endeavour to avoid ending tenancies where the tenant wants and is able to stay”.

The guidelines are specific on a wide range of issues and are as follows:

– private landlords and letting agents should not conduct viewings in properties where tenants are symptomatic or self-isolating, or where it has been determined that they are clinically extremely vulnerable and are shielding;

– in other cases, where viewings can proceed, they should be conducted in line with the guidance on viewings earlier in this document;

– any visits to a property must be made in accordance with government guidelines on working from other peoples’ homes and social distancing;

– if possible, necessary repairs, gas and electrical safety checks should be conducted in the period between a property being vacated and a new tenant moving in;

– if this is not possible and visits are needed to an occupied property, this should be done by appointment with measures put in place to ensure physical contact is minimised, for example with residents staying in another room during the visit;

– landlords should make every effort to abide by gas and electrical safety requirements, which continue to be of great importance for tenants’ safety. This may be more difficult due to restrictions associated with the coronavirus outbreak, for example where a tenant has coronavirus symptoms, is self-isolating or shielding. Under such circumstances, provided the landlord can demonstrate they have taken reasonable steps to comply, they would not be in breach;

– letting agents may also want to consider obtaining landlord and tenant consent for inventory clerk appointments to also occur before a tenant moves in or after a tenant moves out during vacant periods if possible;

– letting agents and landlords should take steps to ensure any properties are prepared ready for new tenants, this may include cleaning to minimise any potential spread of the virus in line with government advice;

– letting agents and landlords should consider how best to conduct tenancy check-ins for new tenancies agreed while broader measures remain in place, taking care to adhere to social distancing.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

A group of private rental activists says Labour proposals to give tenants two years to repay arrears accrued during the virus period do not go far enough.

Amina Gichinga of the London Renters’ Union says: “Deferring rent just means renters will get into enormous debts – or be made homeless. Unemployment is going to rocket and we are not going to be able to afford a massive hike in our rent over two years.

“We need rents to be suspended during this crisis, and the evictions ban needs to be permanent, so no one else is made homeless because of the pandemic.

“The downturn is going to continue for a long time and many people are already in arrears. Without greater protection for renters, we’re heading for a chaotic rent debt and eviction crisis.”

Labour wants tenants running up arrears during the Coronavirus crisis to have two years to repay them, as part of a five-point ‘emergency action plan’.

It claims that current measures set out by the government in the Coronavirus Act fall well short of adequately protecting people from homelessness when they cannot pay their rent.

And Labour’s new housing spokeswoman, Bristol MP Thangam Debbonaire, says her party would use temporary legislation to protect tenants from bankruptcy and homelessness due to rent arrears.

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

Labour’s proposal to extend the current ban on private rental sector evictions could end up with some landlords in financial ruin.

Landlord Action says any extension could particularly hurt landlords who already had possession cases for rent arrears going through the courts prior to the ban.

According to Landlord Action, following the government’s ban on evictions in March, there is an estimated 25,000 cases stuck in the legal system, of which 10,000 are from private landlords.

With over 500 live possession claims with the courts, Landlord Action’s Paul Shamplina says he is being contacted daily by landlords who launched eviction proceedings against tenants for non-payment of rent before the ban and are now facing financial collapse.

One landlord, David Walters, has a tenant who owes him £12,000 and her refusal to leave or pay means he cannot return to his home in the UK.

Walters says: “I live abroad and rented my one bedroom flat in London via an agency 2.5 years ago. My tenant was good for the first year, so we renewed her tenancy for another year (this was the beginning of 2019).  She then started paying her rent later and later, so I gave her notice to vacate last June (there was two-month notice period in the tenancy agreement).

“She refused to move out saying she couldn’t find anywhere to live. I took court action which was raised at the beginning of October 2019 with Landlord Action. Still she did not move out. So, we then sought an order for a bailiff. This should have happened this April, but the lockdown meant no further action could be taken for 90 days, as you know.

“I’m in a desperate situation as I have no home to return to in the UK.  A tenant who is refusing to move out who owes over £12,000 in unpaid rent and no idea when this situation can be resolved. Even when the central London court reopens there will be a huge backlog of cases.”

Commenting on Labour’s five-point plan which includes calls for an extension to the temporary ban on evictions from three months to six months, Shamplina says: “We understand and agree that it will take many months for people to recover from this crisis and adequate support to prevent homelessness is absolutely essential.

“However, I do believe that existing possession claims should be treated separately to any tenancy issues that arise as a result of Covid-19. Cases where rent arrears had already built up for months and landlords had sought action prior to the pandemic should be prioritised as these landlords will be taking the biggest financial hit.

“If the ban on evictions is extended for existing cases as well, there will be thousands of landlords who, by the time they are finally able to gain possession of their properties, will have up to years’ worth of rent arrears, maybe more. I dread to think how the court systems will cope towards the end of the year.”

Blog Post from Letting Agent Today

See details of our Guaranteed Rent Scheme here

Many renters tend to choose the security of a long term tenancy and the majority of landlords are equally as happy to opt for this, obviously after a pilot 6-12 month initial tenancy agreement.

According to a market analyst in a worst case scenario house prices could plummet by 20% because of the pandemic’s effect on the economy.

The firm is also reporting that the stock market is factoring in house prices dropping by 12%.

The average house price stands at £234,700 but with a 20% reduction £49,900 could be taken off of the selling price.

However an estate agent’s prediction for falling house prices during 2020 is not so catastrophic and believes it will be between 5% and 10%.

Another estate agent has just revised its UK housing market forecast for 2020 with just a 3% reduction.

All three firms are far more positive for their longer term predictions and are confident that house prices will enjoy an annual rise between 2021 and 2024 as the economy recovers.

Housing Market will Recover Quickly

The UK housing market is bound to bounce back once the Covid–19 crises has passed, according to Guy Gittins, M.D. of a London estate agent.

He said: “The bottom line is that people still need to move, still trust property as a solid long-term investment and are not expecting prices to change dramatically as a result of the pandemic.”

The agent’s branches are now using video viewings because physical viewings are banned and Gittins says that London’s sales market is still active, but is obviously much quieter than pre Covid–19.

The firm reports that during the first two weeks of lockdown, it had agreed 88 new sales with more to come very shortly from its 250 new sales offers made during that period.

Unsurprisingly the agent’s branches in March have reported their online viewings of properties were 13% higher than in March 2019, and there have also been 500 potential new buyers since the lockdown.

In the first few days immediately after Boris Johnson’s announcement of the lockdown, activity was virtually non-existent, however it did start to improve by the end of the week.

Gittins added: “Although normality sometimes feels like a lifetime ago, restrictions will be lifted at some point and once that happens, we are anticipating a bounce as the pent-up demand is released over the months following.”

Blog Post from PIMS

See details of our Guaranteed Rent Scheme here

According to research from an online lettings management platform, there has been a significant decline year-on-year in rental housing stock and tenant demand throughout London boroughs and major UK cities, caused by the lockdown restrictions stopping anyone from moving homes.

The firm’s data found the three places that have experienced the highest drop in rental housing stock and tenant demand are Belfast -57%, Cambridge -36% and Newport -27%, with London and Nottingham completing the Top 5.

In contrast Edinburgh, Swansea, Leicester, Sheffield, Leeds, Southampton and Plymouth have all experienced increases in rental homes availability.

Across all London boroughs (except for the City of London) have all suffered a drop in rental housing stock with Barnet being the worst hit with a -31% fall, next is Croydon with -23% and Ealing’s -19%.

On average across the 23 major UK cities there has been a -5% fall and London’s average throughout its boroughs stands at -3%.

Calum Brannan, founder of the online firm, said: “The spread of the Coronavirus has clearly caused an immediate impact on rental demand and stock levels across cities which usually remain sought after amongst tenants.

“For market activity to have fallen so considerably across the board tells you just how much the market has been impacted by the pandemic, but while demand has waned somewhat on an annual basis, it is stock levels that have declined the most and there are still plenty of tenants looking for rental properties for those landlords still striving to provide them.

“For these landlords, remaining visible on the market despite the wider landscape is the sensible approach to ensure any void periods are as short as possible and any financial loss is as limited as can be.

“This can be done via online and hybrid agents in particular, who can list and rent your property without any physical interaction needed; so not only does your buy-to-let remain profitable, but there is no risk in doing so.”

Blog Post from PIMS

See details of our Guaranteed Rent Scheme here

According to The Guild of Property Professionals, it is of paramount importance that estate and letting agents should be one of the first industries to be allowed back into their offices, once the lockdown restrictions start to be relaxed.

Although this has not been confirmed there are reports that the government intends to operate a traffic lights system of allowing an ordered return of first small and low risk businesses going back to work, children attending school and eventually bars, restaurants and pubs re-opening.

The Guild of Property Professionals firmly believes that once estate and lettings agents are able to trade again as it will give the economy a much needed ‘shot in the arm’, with a minimal face to face contact required.

A sister company has already written to the government urging it to consider the positive impact on the economy that a resurgence in the property market will have ‘fuelling’ other sectors by its knock on effect.

Jon Cooke, Group CEO of the parent company of The Guild and Fine & Country, said: “As the government establishes a strategy around restarting economic activity, it is important that our industry is allowed to open, operate and transact. Our sector can play a key part in the drive to getting the economy on its feet again.”

The company’s compliance officer said: “Our emphasis during this process is to ensure that every precaution is taken to keep people safe.

“We are pushing for the industry to be able to get back to work, but it is paramount that we all follow the correct procedures to ensure everyone is protected.”

Richard Merrick of PIMS, said: “This is does sound very positive however the two pre-requisites of trading have not been mentioned which is of allowing people to move homes, along with removal companies being able to get back to work.”

Blog Post from PIMS

See details of our Guaranteed Rent Scheme here