Knight Frank forecast for mainstream and prime lettings markets

Knight Frank has set out its forecast for the rental sector for the rest of 2024 – notwithstanding political uncertainty.

In the mainstream UK market, annual growth was 8.6% in July and falling, which means it should end the year close to Knight Frank’s 6% forecast.

In Prime Central London the agency…

Energy Costs – Renters in worst EPC homes could face £550 hike

With the energy price cap to rise by 10% from October, Rightmove reveals that this could mean an annual increase of £558 for the least energy efficient homes.

Rightmove’s monthly energy bills tracker shows that the rise of 10% means someone living in a home with an Energy Performance Certificate rating…

Seven reasons why landlords should be entitled to evict tenants who refuse access for inspections and repairs

Seven reasons why landlords should be entitled to evict tenants who refuse access for inspections and repairs

Knocking at the doorDuring a tenancy (or Welsh occupation contract) one of the most important things that landlords should do is a negative. They should leave their tenants in peace to live in the property without interference.

However, they should also be allowed access to inspect it periodically and carry out any necessary work.

The importance of property inspections for landlords

Although, in a sense, tenants ‘own’ a property during a tenancy, their rights are not unfettered:

  • Tenants are bound by the terms of their tenancy agreement, and
  • They have an obligation to look after the property in a ‘tenant-like manner’ (pursuant to Lord Denning’s judgement in the case of Warren v. Kean), and
  • They are legally bound to provide landlords access for inspections and repair works

Why is this important?

It is important because landlords have legal obligations towards their tenants which they cannot carry out if tenants won’t let them in.

Here are seven:

1 Gas Safety Inspections

This is probably the most important obligation. Landlords must arrange for all gas appliances, fittings, chimneys, and flues to be inspected annually by a gas installer registered with the Gas Safe Register.

If this is not done, then landlords can be prosecuted.

But more important that that, if gas appliances are allowed to deteriorate, they become dangerous. This can threaten neighbouring properties as well as the tenant’s property.

Most years, you will find an item in the press somewhere about an explosion taking place that damages and/or destroys several properties. In most cases, this will be due to a failure to keep gas appliances in repair.

So, if tenants refuse to allow their landlord access to the gas safety inspection, they are putting others at risk, as well as themselves and their landlord’s property investment.

It seems bizarre (as the inspections are for their benefit and don’t cost them anything) but many tenants do refuse access. Often, the only way a landlord can force them to comply is to apply to the court for an injunction (these are known as ‘gas injunctions’).

But this is expensive and time-consuming. Why should landlords have to do this when the inspection is for the tenant’s benefit, and, by their failure to comply with the law, they are potentially putting neighbouring properties at risk?

2 Electrical inspections

It is only fairly recently that landlords have been required to carry out these inspections, and they are less frequent at five years.

However, they are equally important. Landlords can be prosecuted if they fail to comply (even if the non-compliance is down to their tenant’s refusal to let them in).

Plus, dodgy electrics can cause fires that can spread to neighbouring properties.

3 Property Inspections – repair and other necessary works

Landlords are under legal obligations to keep the property in repair and ‘fit for human habitation’. To enable them to do this

  • Section 11(6) of the Landlord and Tenant Act 1985 provides for landlords to be entitled to enter the property ‘for the purpose of viewing their condition and state of repair’ so long as the occupiers have been given not less than 24 hours written notice, and
  • Section 16 of the Housing Act 1988 says tenants must allow landlords access and ‘all reasonable facilities for executing therein any repairs which the landlord is entitled to execute.’

The problem is, that the tenants’ right to exclude everyone, including landlords (save those with special rights such as police with a search warrant) under the tenants ‘covenant for quiet enjoyment’ overrides the landlord’s statutory rights.

Making it difficult sometimes for landlords to carry out their legal obligations.

Landlords need to inspect regularly to ensure that the property condition is up to standard and compliant with their legal obligations. Minor problems can often become major problems and considerably more expensive to rectify if not dealt with promptly.

4. Property Inspections – Insurance

Most landlord insurance policies now require landlords to carry out a specified number of property inspections per year.

If this is not done, this could put the landlord’s insurance at risk.

5. Property inspections – unauthorised occupiers and HMOs

Landlords have additional management obligations and, in many cases, need to obtain a license from their Local Authority if their property is an HMO.

However, there are many unauthorised HMOs. HMOs, which landlords are totally unaware of, because tenants have taken in lodgers or allowed friends or partners to move in with them. In most cases, in breach of the terms of their tenancy agreement, and without notifying their landlord first or asking for permission.

  • If a property has three or more occupiers forming two or more ‘households’ it will in most cases be an HMO
  • If it has five or more occupiers forming two or more ‘households’ it will be (in England) a licensable HMO (different rules apply in Wales).
  • Some properties will be licensable with fewer occupiers.

If unauthorised occupiers make the property subject to licensing, then landlords will have to act, either to get the unauthorised occupiers to leave, or to obtain a license. Otherwise, they risk fines and prosecution.

However, most licenses are expensive, and Local Authorities usually require expensive renovation work as a condition of granting it. Which is why it is important to many landlords to limit occupation numbers so their property will fall below the limit.

There is also the problem, where the property is already a licensed HMO, that licenses often limit the number of occupiers. If tenants move in unauthorised occupiers, this again can put the landlord at risk of prosecution and potentially losing his license.

So landlords need to carry out regular inspections to check that there are no unauthorised occupiers.

6. Property inspections – illegal conduct

It is not unknown, and indeed is quite common, for rented properties to be used for illegal purposes.

One of the most common is conversion to a cannabis farm. This can cause extensive damage to the property – and is probably the main reason why so many insurance companies now require regular inspections.

Total conversion of a property to a cannabis farm is not the only problem. Many tenants, in order to make a bit of money, will grow cannabis plants in lofts and cupboards. Not only can this cause damage to the property, but if a landlord ‘turns a blind eye,’ he can become liable himself under the Misuse of Drugs legislation.

Other illegal uses of property include criminal call centres, selling illicit and contraband goods and ‘knowingly permitting’ fly-tipping waste.

7. Green upgrades

This is less important at the moment, but landlords are going to be obliged to upgrade their properties to at least a C energy rating by 2030.  Otherwise, penalties may apply.

Landlords will, therefore, need access to get these works done. If there are problems and the works are delayed, this could cause landlords

  • To lose any grants or low interest loans if these are time limited,
  • To become liable under any penalties that may be imposed.

Why inspections are important

These seven reasons explain why it is so important that landlords be granted access for regular inspections and to carry out any necessary works.

Otherwise:

  • The property can be put at risk of serious damage (particularly if there are dangerous gas appliances or dodgy electrics)
  • Neighbouring properties can also be put at risk of serious damage
  • The tenant’s conduct may make landlords liable for failure to obtain an HMO or other license, or be at risk of losing the license they already have. and
  • Landlords may become liable under the criminal law for some tenant criminal activities
  • It may invalidate the landlord’s insurance policy, and
  • They will be unable to carry out the green upgrades that are necessary if we are to comply with our net zero obligations

A new ground for possession

This is why I am suggesting that the Renters Reform Bill should include a new ground for possession of failing to allow the landlord reasonable access for inspections and/or repair, upgrade or other necessary works.

Although tenants are required to allow access for landlords to inspect a property’s condition and carry out repair work under the legislation discussed above, these obligations do not carry any ‘teeth’. Tenants can, in most cases, ignore them with impunity.

Landlords can only really enforce them by applying to the Court for an injunction. An expensive and difficult procedure.

But why should landlords be put to this expense, where tenants are obstructive, simply to carry out their legal obligations?

This is why the government should consider including failure to allow reasonable access as a ground for possession.

Tenants may be more willing to comply if the alternative is eviction. Eviction under this rule should not put pressure on Local Authorities for rehousing as the tenants would be deemed ‘voluntarily homeless’.

I would hope that tenant organisations will agree that this is a reasonable ground for eviction that would not put most tenants at risk.

The post Seven reasons why landlords should be entitled to evict tenants who refuse access for inspections and repairs appeared first on The Landlord Law Blog.

Short Lets to be hammered by nightly 5% ‘tourism tax’

Anyone renting an Airbnb or other short let property in Edinburgh from the summer of 2026 is likely to be hit with a nightly tourist tax.

Councillors in Edinburgh have voted for the introduction of such a tax, which they claim will raise up to £50m a year to be spent…

New rental laws under the spotlight as agents hit the road

Propertymark is inviting letting agents to find out more about the latest legislative changes at one of its upcoming regional conferences.  

As part of the professional body’s #MOREFOR24 campaign, Propertymark members can attend one of these conferences for free. 

It kicks off with a Bristol conference on September 12 with speakers including…

Named and Shamed – HMRC lists 92 tax avoidance schemes

HM Revenue & Customs has named 92 schemes which it says are involved in tax avoidance – and it admits this isn’t the complete list.

There has been controversy for some years over the status of many tax avoidance schemes, some involving property ownership and income derived from property.

The HMRC says:…

Agents invited to free advice and networking session

Letting agents and landlords are being offered free advice and information at a networking event hosted by Cumberland council.

Property owners and agents will have the opportunity to meet and discuss the latest changes in housing law and legislation and ask experts questions.

The event will take place on Thursday September 26…

Scrapping Section 21 isn’t such a big deal, claims top agent

The abolition of Section 21 isn’t really that big a deal, a prominent lettings agent claims.

Kristjan Byfield, who runs the base lettings agency in London and is the co-founder of PropTech platform The Depositary, says in a video interview that the long-promised abolition is not the terrifying onslaught that the…

Landlord Law Newsround #353

Landlord Law Newsround #353

Landlord Law Blog NewsroundAnother week, another Newsround.  What have the Landlord Law team has found in the housing news this week?

Letting agency found in breach of the law after charging tenants £1,000 holding deposit

After a tenant took her letting agency to Tribunal when they failed to refund her holding deposit, it was found that she had also been charged an incorrect amount.

She had been charged £1,000 although the monthly rent was £1400.  The Tenant Fees Act requires holding deposits to be limited to one week’s worth of rent.

The agent also failed to provide a draft contract, as the ‘sample contract’ provided contained errors including citing the wrong dates and claiming a deposit sum which was in excess of the amount allowed.

The Tribunal held that the agents must return the remaining deposit, saying:

It was not reasonable for the landlord/letting agent to delay issuing the tenancy agreement and when it was issued, just before the deadline, for it to be in a form that could not be signed by the tenant. The tribunal finds on the evidence provided by the tenant that she took reasonable endeavours to enter into the tenancy agreement.

New Labour MP is the biggest landlord in the House of Commons

With the change in the composition of the House of Commons comes a change in the number of MPs who are landlords.

A Financial Times analysis of data from the UK parliament’s register of members’ interests has found as follows:

In total there are 85 MPs who declare themselves as landlords, representing 13 per cent of parliamentarians — and they own 184 rental properties between them.

Labour has 44 landlords, 11 per cent of its 404 MPs, and the Tory party has 28, a quarter of its 121 MPs. The Liberal Democrats have eight of their 72 MPs.  So all parties contain at least some landlord representatives.

New MP Jas Athwal, MP for Ilford South, is now the largest landlord owning 18 rental properties.  He rents out 15 residential properties and three commercial properties, all co-owned with a family member.

Tenants organisations are worried that the increase in landlord MPs in the Labour Party could derail the proposed legal reforms.

However landlords, many of whom are selling up in advance of what they believe will be hostile legislation, should be grateful that they have some voices which can speak up for landlords’ interests.

North Yorkshire Council adopts new housing enforcement policy

North Yorkshire Council was created last April after the former county council and seven district and borough authorities were merged into one single unitary authority.   It will now be the main enforcement authority for housing and has adopted a new focus on housing standards.

Combining the smaller authorities into one means that a new consistent way of dealing with complaints can be implemented.

Executive member for housing, councillor Simons Myers said:

A new policy will give us a balanced approach to housing enforcement work and ensure that privately rented homes are well-managed, properly maintained, safe and habitable. It also gives us the ability to fine landlords, letting agents and property managers and use any income generated to further improve the service.

This could mean fines of up to £30,000 for non-compliant landlords, letting agents and property managers.

Note that landlords struggling to deal with properties with damp and mould may find our new Dealing with Damp kit useful (see the page for a free checklist)

Government to step up plan to crackdown on short-term lets

Government in England is looking to restrict short term lets by giving Local Authorities greater powers to bring in planning consent.  Plus a new mandatory national register for short term lets is proposed.

In Wales, councils already have a similar register, known as an “Article 4 Direction” – but the policy extends to second home ownership as well as holiday lets. Northern Ireland has long had a registration scheme in place.

But some analysts are warning against a local registration scheme which they say has backfired in Edinburgh.  Sophie Lang, of ARLA Propertymark, said:

Similar measures elsewhere have led to operational issues for landlords regarding the short term lets market, which in turn driven up prices and damaged tourism in some areas that depend on it.

It’s vital to have a fair balance that encourages landlords back into the long-term rental market while still supporting local economies that rely on tourism.

Why landlords leave letting agents

Finally, an excellent article from solicitor landlord Suzanne Smith on what landlords want from their letting agents and why they leave.

We have had many landlords come to my Landlord Law service after a bad experience with letting agents, and the reasons cited are pretty much the same as those described by Suzanne.

Landlord Law includes a special section on dealing with problem letting agents.  This explains the laws which apply and gives guidance on how to deal with a letting agent who is being obstructive when landlords wish to leave.

As Suzanne says, some of those ‘small print’ clauses will be unenforceable against ‘consumer’ landlords under the unfair terms rules in the Consumer Rights Act.

Other landlords may be able to end the contract without worrying about contract clauses, if the agents are found to be in breach of contract.

Note that our monthly training webinar for September (open to all Landlord Law members) will be with Justin Bates KC, specifically on the unfair terms rules and we will be asking him about the enforceability of these aggressive termination clauses.

Snippets

Tenant remanded in custody after landlord’s death
Landlords’ massive contribution to regional economy in the North West
Jurisdiction of the FTT on referrals of rent increases
Council slammed for breaking property licencing scheme rules
Male UK university students are ‘less macho’ when sharing flats with women
Rogue landlord and agent first to be banned from PRS in Essex
Cosy, quiet and efficient: how New York is pioneering eco-friendly apartments

See also our Quick News Updates on Landlord Law

Newsround will be back again next week.

The post Landlord Law Newsround #353 appeared first on The Landlord Law Blog.

Agency wins contract to manage two high-rise resi towers

A luxury development of 15-storey and 45-storey towers housing 581 one and two-bedroomed apartments in the heart of Birmingham is to be looked after by Principle Estate Management.

Principle won the contract for what will be known as Brindley Drive (Edition) after a competitive tender by specialist developer Court Collaboration.

The towers…

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