Our first Newsround for November, let’s see whats been happening in the housing news this week.
Update on the Renters Reform Bill
There is quite a lot of criticism about the stop-start delays, and the government still has not given any definite guidance on timing.
At a poorly attended debate on Thursday, Felicity Buchan, the new under-secretary of State in the Department of Levelling Up, Housing and Communities, just said that there would be progress on this bill ‘in due course’.
This, I understand, is code for ‘it is not a top priority’.
However, it looks as if they may have taken on board
- The need to deal with student lets differently
- The need for landlords to have confidence in the possession grounds, particularly around anti-social behaviour, and
- The need for court reform to accompany the abolition of section 21.
So well done to the NRLA for their lobbying on these issues. However, as Court reform will be down to a different department, I do have reservations about how effective this will be. The Justice Department have many other problems just now, so I doubt this would be given priority. Still, we will have to wait and see.
HMRC warning
HMRC is stepping up its efforts in tracking down landlords who are not declaring their income from renting out properties.
Perrys, a firm of chartered accountants, state that HMRC are now handing out back payments demands along with interest and fines are getting larger ranging from 10% and rising to as much as 100% of the rental income.
Landlords who declare voluntarily will face lower fines than those who do not.
Perrys has a guide out for landlords you can read more here about this.
Increased Enquiries to The Property Ombudsman
Enquiries to The Property Ombudsmen have risen sharply by 48% since 2019 and advice by 15% to 45,007 in 2021. 39,449 out of the 45,007 were resolved through the TPO without the need to escalate to formal complaints. Similarly, for disputes 49% were resolved, thus preventing further formal investigations. Their further figures speak for themselves and can be read here.
Rebecca Marsh, of The Property Ombudsman said
I continue to be astonished by the volume of enquires TPO receives and the growth we have seen over the last few years. When comparing the volume of enquiries to the number of disputes which go on to become formal investigations, it is clear to see the value that our enquiries team is providing.
Firstly, to consumers who can speak to someone who will listen to their issues and provide expert advice to resolve matters before they become formal complaints. Over the last few years we have seen call lengths nearly double with issues becoming more complex. Secondly, to member businesses who are saved time, resources and costs associated with having to deal with the complaint themselves.
She goes onto to say
Following the release of the ‘Fairer Private Rented Sector’ white paper, a collection of reforms built on the principles that everyone has a right to a decent home and that everyone should be treated fairly, and the current economic situation, I anticipate our enquiries will continue their upward trajectory.
As an independent Ombudsman, our role in these reforms will be to help to facilitate discussion between industry and consumer stakeholders and use our evidenced based insight to help them and policy makers reach outcomes that have a balanced and positive impact.
We will of course continue to provide advice, guidance and signposting to consumers and members alike, as the industry and the country as a whole goes through this period of change.
Tenants to sue PRS landlords for poor quality homes?
Michael Gove has made suggestions that tenants could be able to claim back rent from their private landlords where the accommodation is of poor quality and not maintained Property Investor Post reports. He said
We have new legislation to make sure that central landlords live up to their responsibilities. tougher regulation, a stronger voice for tenants, bigger penalties for social landlords who are keeping people in homes for social rent which are not fit for habitation. And we’re also bringing in legislation to deal with the private rented sector as well.
He has also hinted at targeted support for tenants in difficulty.
Holiday Lets Tax relief reviewed
Holiday let tax breaks are in the news again and government officials are suggesting that they should be scrapped. The Independent Office of Tax Simplification are asking if a separate tax system for holiday lets should be looked into.
There are 127,000 property ‘businesses’ that benefit from tax relief in various ways such as interest and reducing their capital gain tax when they sell.
A new OTS Policy says
The OTS recommends that the government consider whether there is continuing benefit to the UK in having a separate tax regime for furnished holiday lettings.
The OTS goes on further to say that the minimum the government should do is restrict it to UK properties and not allow owners to live in the homes. You can read more here.
Landlords warned to act now on energy efficiency
Property Industry Eye reports on figures show that 71% of rental properties in the UK still have EPC ratings of D or below, according to a study by Shawbrook.
There is growing concern that they will not be compliant by April 2025 for new tenancies or 2028 for existing tenancies. This backs up recent figures from the Office of National Statistics that revealed as of March 2022, the median energy efficiency rating for private rental homes in England and Wales fell in the Band D rating.
Emma Cox of Shawbrook said
It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of these proposals and start making a plan. During such a challenging period for the UK in general, we remain committed to bringing together all industry stakeholders to develop the conversation around EPCs, and to make real progress towards our shared goals.
Guardian HMO’s
An upper tribunal has ruled that having guardians living in a property does not mean it is not classed as an HMO.
Global Guardians Management, Global 100 Ltd appealed against a fine handed out by Hounslow Council and rent repayment orders made by a first-tier tribunal on the basis that The Stamford Brook Centre was not an HMO because occupation by guardians meant it did not have sole residential use. They also argued that they had not been granted a tenancy by the owners NHS Property Services.
However, the judge ruled that Global Guardians had exclusive possession and use it to their own gain by converting it to residential use then licensing up to 30 occupiers. The Judge ruled
The benefit – which NHSPSL sought – of protecting the property from trespassers and vandalism was secured by means of the occupation of the property by others
Read what Giles Peaker from Anthony Gold Solicitors said here.
Snippet
- Eco-rules and taxes add tens of thousands to new build costs
- Rent Caps and Cash Help – what students want from government
- Hackney tenants battling billionaire landlord
- Leeds student market thriving for landlords
- Revealed – the energy price hikes for different EPC properties
- Agency issued with ‘landmark’ penalty for failing to comply with CMP rules
- London consultation on additional licensing scheme
Newsround will be back next week.