Our first Newsround under a Labour government.  A historic day.

A new Labour government

A pretty resounding victory for Labour, which some landlords will be apprehensive about.

Hopefully their fears will be largely groundless although there is absolutely no doubt that section 21 will be abolished as soon as this can be managed.

Good news for landlords will be that, hopefully, the economy will stabilise ushering in more prosperity – which should mean fewer rent arrears!  Hopefully also, there will be financial assistance for landlords to effect the ‘green’ improvements to their properties, which will be needed to bring them up to standard before 2030.

Labour proposals to build more houses are welcome – although they will have to effect changes to our planning rules first.

Maybe by the time we publish our next Newsround we will have a clearer idea of what awaits the PRS.

Here are a few comments from industry figures:

Ben Beadle, CEO of the Residential Landlords Association:

We congratulate Labour on its election to office. The party’s manifesto committed to fundamental reforms to the private rented sector. This includes ending section 21, ‘no explanation’ repossessions.

We stand ready to work constructively with the new government to ensure changes are fair and workable for tenants and responsible landlords and are sustainable for the years to come.

It is vital however that reform does not make worse an already chronic shortage of rental properties to meet demand.

Nathan Emerson, CEO of Propertymark:

The UK has suffered a chronic undersupply of sustainable new homes for many decades and any new policies to increase housing supply must come with full disclosure on how and when developments will be delivered.

For many years, the under supply of housing has pushed prices up for both homeowners and renters, and it is vital there is a plan to ensure supply keeps pace with real world demand.

Across the next ten years it is expected the UK population will grow to around 70 million people and it’s essential there is a diverse mix of housing solutions available.

Key aspects must include careful consideration to ensure all new housing is logically implemented in targeted regions and wherever possible, protect greenbelt areas.

Paul Shamplina, founder of Landlord Action:

With Labour’s election win and their commitment to abolishing Section 21 ‘no fault’ evictions, there will be significant concern within the landlord community today about the future of their properties and tenancies.

Although Labour pledged to scrap Section 21 from day one, recent statements by Labour’s deputy leader, Angela Rayner, on LBC Radio, admitted that the practicalities of this promise are far more complex, as we already know.

An immediate ban on Section 21 evictions is not feasible without first addressing the current inefficiencies within the court system. Rayner’s acknowledgment of this highlights the need for a balanced approach that considers both the rights of renters and the practicalities faced by landlords.

Nevertheless, given Labour’s pledge, we now anticipate a further surge in the number of landlords serving Section 21 notices in the coming months.

Property leaders call to bring in reforms

There has been a lot in the news recently about landlords calling for new housing reforms to be introduced as soon as possible once the new government takes over, and now letting agents are being urged to do the same and push new MP’s irrespective of which party forms the new government.

Neil Cobbold of PayProp said that housing professionals are the ‘expert voices’  and will be ‘listened to in the coming parliamentary session’. It seems that after five years of uncertainty everyone within the industry is now calling for certainty and change.

Delays are allowing tenants to live rent free for a year

Another industry leader, Andy Halstead, chief executive of HomeLet and Let alliance states this week that with all the political delays and uncertainty it is allowing tenants to live rent free for a year should they wish to. He says

All stakeholders in the private rental sector are managing their way through turmoil, not least landlords and tenants.

It is rarely quoted that a tenant can now quite easily occupy a rental property for 12 months or so, without paying a penny in rent. Whilst this is a fact, politicians run away from dealing with the challenge. Rent Guarantee and Legal Protection have never been more important.

Landlords see benefits to installing EV car chargers

Direct Line has published a new survey out this week claiming that 86% of landlords with a suitable freehold property would install an electric EV car charge point if their tenant wanted one.

20% of landlords would even cover the whole cost but most landlords would expect the tenant to pay some of the cost, roughly 35%. In these circumstances, landlords need to have a written agreement in place as to what happens to the charger when or if the tenant moves out. As there are ongoing maintenance and possible repair costs it would be prudent to include what happens then in an agreement form as well.

The benefits seem to outweigh the negatives for a landlord to install one:-

• 40% believe it will increase the value of the property
• 40% say it will be more attractive to future tenants
• 15% say it will enable them to charge more rent

Two grants are available to help with the purchase and installation of an EV charge point and a landlord can use both on a rented property.

A Direct Line Spokesperson said

With the UK government pathway for zero emission vehicle transition by 2035, demand for rental properties with EV chargers is set to soar as more drivers make the switch.

Self managing landlords on the increase

A new survey out by Landbay claims that now more than half of all landlords manage their properties themselves making it their full time occupation, with just 19% of landlords relying on a property management company and a quarter using a letting agent. And of those who self manage 65% hold their properties in a limited company.

Rob Stanton of Landbay said

We are increasingly seeing landlords treating their portfolios as a full-time business, with the sector becoming more of a career choice. There is no doubt that managing your own portfolio can be very rewarding although taking professional advice at the right time is essential.

Are you a self-manging landlord? Or even if you are not you, we have a wealth of information, guides, webinars and legal advice and support at Landlord Law Services to help you self manage and understand your legal obligations.

We also provide online help and documentation to help you save money by doing things yourself without making expensive mistakes. You can find out more here.

Snippets

Landlords and agents call for renting reforms to be passed ASAP
Private rents in Great Britain hit record high, data shows
Holiday lets are not the housing crisis culprit – STAA
Custodial sentence for landlord who broke fire safety laws
Tenants claim landlords ‘failing to fix maintenance problems properly’
BLOG: ‘Labour must support the private rented sector – here’s how’
Work begins on homeless village in railway arches

Newsround will be back next week.

The post Landlord Law Newsround #346 appeared first on The Landlord Law Blog.

This is in some ways unfair on landlords.

Here is a tenant living in the landlord’s property and paying no rent.

The landlord, in the meantime, still has to pay the mortgage and other expenses on the property, is responsible for keeping it in repair, and cannot repossess without getting a court order.  Which can take anything between six months to a year (sometimes more).

Landlords are fairly unique in that they are forced to continue providing a service when the customer (in this case the tenant) is failing to pay for it.

• Restaurants are not expected to carry on providing meals to people who don’t pay
• Shops are not forced to provide food to customers free of charge (however hungry they are)
• You cannot use the gym if you do not pay your gym membership
• You cannot get on the plane if you don’t have a ticket

Landlords, on the other hand, sometimes have to carry on housing tenants for free, sometimes for months on end, AND are still responsible for doing repair work.  If they try to evict the tenant without getting a court possession order first they are committing a criminal offence.

A landlord’s lien?

So landlords may feel entitled to go in and take or hang on to their tenant’s possessions when they leave, saying that they can’t have them back until they pay up.

However, this is NOT allowed.  Not to sell, nor to hold as security.    The car, the television set, the computer – they belong to the tenant, and the landlord has no rights over them.  If he takes them and sells them, this is both a civil wrong and a criminal offence.

About liens

There are certain situations in law where someone is entitled to a ‘lien‘ over someone else’s property.  This means that they are entitled to hang on to it until they get paid.

• Hotel owners have a lien over guests luggage.
• Agents (including letting agents) have a lien over their principal’s property if they don’t get paid their commission, and
• Solicitors have a lien over clients’ paperwork.
• There are also liens, I believe, in aviation and maritime law.

However, for residential tenancies, there is no ‘landlord’s lien’, no matter how much rent the tenant may owe. Unfair maybe but true.

The only people who are legally entitled to seize and subsequently sell, a tenant’s possessions, is a County Court Bailiff or High Court Sheriff, acting under a court order.

And finally

It is arguable that if a tenant has serious rent arrears and the landlord takes a tenant’s possessions, the tenant might find it difficult to recover them through the courts, as the landlord could counterclaim for his rent arrears and seek to offset any damages awarded to the tenant against the rent arrears owed to him.

This might work, but it would depend on what the retained items were. I suspect that the Judge would be hostile.

Does anyone have any examples of this happening?

Click here to see all the Urban Myths.

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