Year: 2020

The much ‘lauded’ government flagship Universal Credit has been delayed for the umpteenth time and will not be fully rolled out until 2024; it should have been completed during 2017.

The DWP has admitted that the number of claimants being switched over to the new system was “lower than forecasted” with over a million people that had hoped to have been switched over, have remained on the old system of benefits; many are extremely worried about moving over to the government flagship Universal Credit.

Will Quince, the Minister for Welfare Delivery, said: “Universal Credit is the biggest change to the welfare system in a generation, bringing together six overlapping benefits into one monthly payment and offering support to some of the most vulnerable people in society.

“It is right that we revisit our forecasts and plan, and re-plan accordingly – ensuring that the process is working well for people on benefits.”

There are widespread concerns that the government’s continued rollout of Universal Credit causes recipients a large percentage of which are renters, to wait up to four weeks, and in some cases longer, to receive their first monthly payment.

Many private tenants who were used to receiving their benefits weekly and the rent paid directly to their landlords, are finding themselves in real danger of being made homeless. The system has always experienced major problems with lack of proper support to help people complete the convoluted online process and worse, still late payments.

A trade body’s recent research found that increasing numbers of landlords are not willing to rent their properties to people on housing benefits.

A spokesperson for the trade body, said: “Our research shows that a decreasing proportion of landlords are letting to tenants in receipt of local housing allowance or Universal Credit, and that there is a wide variation across the country.”

The DWP has finally published updated guidance to help landlords who have tenants on Universal Credit.

The guidance will suggest ways that landlords can help tenants who are being switched over to Universal Credit, and how they can arrange to make rental payments themselves to their landlords.

The guides explain what assistance tenants can expect to help them move over the new once monthly benefit payment.

For information on Alternative Payment Arrangements click here.

Information on service charges for landlords click here.

Landlords can fill in the UC47 form if their tenant is unable to pay their rent, so they can be paid directly from the DWP instead click here.

Richard Merrick of PIMS, said: ”Any help and guidance for landlords with housing benefit claimants is appreciated, however there seems to be an undercurrent that landlords are now being asked to help tenants with switching over to the new system.

“Surely this is the JobCentre Plus’ responsibility as well as the £43million funded Citizen’s Advice? Landlords are already working for the Immigration Department with their Right to Rent responsibility and will now being asked to fulfil DWP duties.

What next Dietary Assisting (Policing) with failure to stop tenants eating chips in the property, resulting in a fine for their landlords?”

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Latest research and data fully backs all those in private rented sector who state that the government’s policies are the main cause for rents increase as landlords have to offset extra costs and less profit.

Tenant demand will always outstrip availability of rented homes and according to the Royal Institution for Chartered Surveyors (RICS), it claims that rents increase by at least 2% over the next twelve months.

The recent tax increases including the lowering of the mortgage interest tax relief down to the basic rate, the 3% extra stamp duty charge as well as the increasing regulations and at times the frankly ridiculous costs of licensing schemes, is having an adverse affect on the number of properties available to rent.

Since 2018, despite all of the council licensing schemes to weed out rogues, only 18 property agents and landlords, together with five companies have been registered on the database of rogue landlords.

Because of only eighteen landlords/agents/companies on the database, an industry bodes is asking whether the the numbers of rogues is nowhere near as large as claimed, or is it that councils are more far interested in getting money from licensing good landlords, rather than getting rid of the cowboys?

Recent data from the government shows that on average landlords have to wait at least six months for courts to award them repossession orders.

A spokesperson for the trade body said “This series of statistics clearly shows the negative impact of government policies. At the end of the day it is tenants who are suffering.

“The drop off in supply caused by good landlords who find operating in the market more difficult means it is increasingly difficult for tenants to secure somewhere to live and they are then faced with higher rents.

“Ministers need to change course and instead of attacking the private rented sector, there should be policies and taxation to encourage growth in the supply of rental accommodation to meet the ever increasing demand.”

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A mortgage company has calculated how much the landlords contribution is into local communities throughout the UK.

The company surveyed 1,000 UK landlords, and found that 81% have used local tradespeople when renovating or having maintenance work carried out to their properties.

On average over the last twelve months landlords have spent £1,443 on builders, plumbers, other tradespeople and letting agents, with the majority being used from the local area.

Having made calculations from the survey, the company claims that UK wide landlords spent the most on letting agents of around £879m in the past twelve months, next was £442m on handy-workers and £396m on plumbers.

Landlords also spent £375.4m on electricians, builders £375m and £243.2m on cleaners.

Nearly a third of respondents said they have always preferred to support local tradespeople with putting money back into the community and in the main they were cheaper than other alternatives.

Damian Thompson, group managing director of retail finance for the company, said: “Landlords are an integral part of local communities across the UK, providing investment and fulfilling the demand of the expanding Private Rented Sector.

“Around every landlord is an ecosystem, in which they pay local tradespeople, like plumbers, builders, decorators, for jobs and those companies in turn train up employees and pay their own local suppliers for services also.

“The contribution landlords make to local communities extends much wider than merely providing rental accommodation.”

Thompson added: “Our findings show supporting local economies also brings benefits to landlords own businesses. Local workers bring a lot of value to landlords with respondents to our surveyA report on the condition of a property
citing in particular the quality work, cost effectiveness and the understanding of local areas as key benefits.”

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The Government has rejected an attempt by Brent Council to extend its selective licensing scheme for landlords.

The London borough, which happens to encompass three Labour MPs – deputy leadership candidate Dawn Butler, Barry Gardiner and Tulip Siddiq – had hoped to extend its selective licensing scheme for landlords in the wards of Willesden Green, Harlesden and Wembley Central.

The Council revealed that Housing Secretary Robert Jenrick has rejected its application.

All privately rented properties in the wards of Dudden Hill, Kensal Green, Kilburn, Mapesbury and Queens Park are still required to be licensed, as are houses in multiple occupation (HMOs) in the borough.

Cllr Eleanor Southwood, Brent Council’s cabinet member for housing, said: “Naturally we’re disappointed not to have gotten this done at the first attempt and frustrated at this setback in our aims to improve safety and drive up housing standards for the borough’s private tenants.

“If the Government need to see more evidence, then that’s exactly what we’ll do. We know that licensing works and that it benefits everyone: tenants, landlords and neighbourhoods.”

It comes after the largest property licensing scheme in the country was shut down by the Government last month after an application to extend Liverpool’s city-wide licensing scheme was rejected.

The Residential Landlords Association (RLA) backed the Government, describing licensing as ineffective.

John Stewart, policy manager for the RLA, said: “We all want to see bad landlords driven out of the sector.

“However, licensing is not the answer.

“All it does is identify the good landlords who register and then tax them. They do nothing to flush out the criminals who stay under the radar.

“Instead, councils should use the wealth of data they can already access to find landlords and target resources to properly enforce the wide range of powers they have to deal with unsafe and sub-standard rented housing.”

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A rental activist who runs the Generation Rent pressure group has told landlords that if they are “serious” about providing long term homes for tenants they should back the scrapping of Section 21.

Dan Wilson Craw took to Twitter to respond to investor Kundan Bhaduri, and used the opportunity to offer advice to all landlords.

Bhaduri tweeted: “Dan – your over-activism will only drive away small time landlords who provide the backbone of the UK’s private housing sector. Make it easier for landlords to rent out, and there will be a thriving market for tenants as well.”

In return (and without saying who ‘they’ were), Wilson Craw responds: “They’ve already tried making it easier for landlords, in 1988 with section 21. The result: millions of tenants with no sense of a long term home and little negotiating power. Any landlord who is serious about providing long term homes should embrace s21 abolition.”

Earlier in their social media exchange, Wilson Craw said: “Section 8 will continue to give landlords the ability to take action against tenants who don’t meet their obligations. I’m not opposing that but any process needs to be fair. Those landlords are already well represented by their landlord bodies – GR represents renters.”

At the end of the exchange Bhaduri went on to tell Wilson Craw: “I have never served a s21 on anyone with the intention of driving out a good tenant. However, when you wish to sell or reoccupy a property, it will become virtually impossible to prove that this is the case. It will also open up the Pandora’s box to corruption.”

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The government has announced a complete ban on evictions in the private and social sectors for any tenant affected by the Coronavirus outbreak – and it’s been done with the blessing of trade groups.

A statement from the government last night said that emergency legislation would be taken forward “as an urgent priority” so that landlords will not be able to start proceedings to evict tenants for at least a three-month period.

“As a result of these measures, no renters in private and social sectors accommodation needs to be concerned about the threat of eviction” says the statement, from the Ministry of Housing, Communities and Local Government.

The government says that the three month mortgage payment holiday announced earlier this week for owner occupiers would be extended “to landlords whose tenants are experiencing financial difficulties due to coronavirus.”

However, then the onus is left very much with landlords – and presumably agents – to work out what happens next.

The MHCLG says: “At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances.”

The government will also issue guidance which asks landlords to show compassion and to allow tenants who are affected by this to remain in their homes wherever possible.

“This important step on buy to let mortgages ensures parity of support, further to the announcement … that the government made for private mortgage holders. We are also announcing that those who have benefited from a government backed Help to Buy equity loan will be offered interest payment holidays if they are struggling to pay due to coronavirus” the MHCLG statement continues.

David Cox, ARLA’s chief executive, says: “We are very conscious of the plight of tenants in these difficult times and appreciate any government action to help those affected by the current situation. Letting agencies rely on rental payments and therefore government must help to ensure agents can maintain their current service levels during any period where rent is not being paid. Specifically, we are calling on government to extend the retail discount on business rates to estate and letting agents.”

Ben Beadle, the chief executive of the brand new National Residential Landlords Association – the merged body from the old NLA and RLA – says: “Landlord groups welcomes government support. We recognise the exceptional circumstances and we will work collaboratively with government to ensure these measures protect both landlords and tenants.”

Housing Secretary Robert Jenrick adds: “The government is clear – no renter who has lost income due to Coronavirus will be forced out of their home, nor will any landlord face unmanageable debts. These are extraordinary times and renters and landlords alike are of course worried about paying their rent and mortgage.

“Which [sic] is why we are urgently introducing emergency legislation to protect tenants in social and private accommodation from an eviction process being started. These changes will protect all renters and private landlords ensuring everyone gets the support they need at this very difficult time.”

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The leaseholder of a council property in central London has been found guilty of advertising it on short let sites Airbnb and Booking.com.

Madhukar Kothari, the leaseholder, was found by a tribunal to have breached the lease agreement by using his council property as a business through short-term letting his flat in Westminster.

He was advertising his flat on the two websites to attract tourists looking for somewhere to stay while they visited the capital.

The council sought confirmation emails from the websites which were provided by tourists staying at the property; the emails listed the full address, proving it was being used as a short-term let.

The advert was still listed on both sites at the time of the tribunal hearing, which was also used as evidence.

Kothari did not cooperate with the investigation or attend the hearing but has subsequently taken the listing down from the booking websites.

The council says it’s working with him to ensure he doesn’t re-list the property but adds in a statement: “However, if he does the council will take further action which may result in ending the lease.”

A council spokesman says: “Short-term letting is taking place on an unprecedented level in Westminster – we believe up to 11,000 properties are available for short-term letting across the borough. This places a huge burden on our residents, who are often victims of disruption from tourists coming and going from their estates.

“Our priority is to protect our residents and their communities. Waiting lists for council properties in Westminster are extensive, so we want to continue to defend residents in genuine need of a home.

“We’re pleased with this result and we hope it sends a clear message that we’re taking this issue seriously and will crack down on this type of breach.”

He says almost 1,500 properties in Westminster alone are under investigation.

Working with other councils in London and across the UK, Westminster council wants the government to introduce a compulsory cross-platform registration scheme for property owners, so councils know which properties are being short-term let and for how long.

Short-term letting of council properties is strictly prohibited in Westminster.

While private homeowners and leaseholders may short term let their property for up to 90 days per calendar year, the council does not permit its own leaseholders to short-let their properties.

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The government has rejected a council’s bid to extend its licensing scheme for privately rented housing.

The Ministry of Housing, Communities and Local Government has refused Brent council’s bid for a blanket extension of its existing scheme.

This follows a similar ruling last month when an application by Liverpool council to renew its citywide landlord licensing scheme was rejected.

Responding to the news, the Residential Landlords Association says such licensing schemes are ineffective and are brought in by councils who want to be seen to be doing something to tackle criminal landlords without actually doing anything to root them out.

Local authorities are also accused by the RLA of using licensing schemes as a cash machine.

John Stewart, the association’s policy manager, says: “We all want to see bad landlords driven out of the sector. However, licensing is not the answer. All it does is identify the good landlords who register and then tax them. They do nothing to flush out the criminals who stay under the radar.

“Instead, councils should use the wealth of data they can already access to find privately rented housing landlords and target resources to properly enforce the wide range of powers they have to deal with unsafe and sub-standard rented housing.”

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One of the lettings sector’s leading trade bodies has called on the government and lenders to agree a package of measures to support tenants and landlords affected by Coronavirus.

In a joint statement, the Residential Landlords Association and the National Landlords Association says: “We are encouraging all landlords to work positively with tenants to provide support where needed throughout this difficult period. Landlords should be as flexible as they can to help tenants facing payment difficulties resulting from the impact of the coronavirus.

“To support landlords in this we are calling for a package of measures from government and mortgage providers.

“This includes a temporary scrapping of the five week wait before Universal Credit claimants get their first payment, pausing the final phase of restricting mortgage interest relief to the basic rate of income tax and ensuring lenders look sympathetically on requests by landlords for mortgage payment holidays where their income is being affected through reduced or non-payment of rent.”

Meanwhile the Scottish Government is “actively considering” measures to prevent tenants from being evicted as a result of financial hardship created by the Coronavirus – and the housing minister there agrees.

Scottish Housing News reports that the housing minister in the SNP administration, Kevin Stewart, has already received a campaign petition calling for such a policy.

The petition also asks for tenants affected by coronavirus to be granted a rent holiday and collections paused, including for those unable to work or who need to self-isolate.

The campaigners – in a group called Living Rent – say on their website: “We want to see that this crisis does not make life harder for those that are already suffering under austerity, universal-credit reforms and skyrocketing rent.

“While bankers, landlords and mortgaged homeowners are being supported, the silence of the government regarding tenants and their needs is shocking.”

“This is part of our urgent consideration on what wider measures can be put in place to support people against the economic impacts of coronavirus and further announcements will be made.

“People affected by coronavirus who are concerned about paying their rent can claim Universal Credit from the Department for Work and Pensions which includes support for housing costs, if eligible. The UK Government has introduced some temporary changes to make this easier.”

Yesterday the anti-agent campaign group Acorn made a similar call in England.

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