Here is our weekly Newsround, with all the latest in housing news. We start this week with some HMO news.
Consultation launched on HMO council tax
Landlord Zone report that the Government has launched its new consultation to hopefully reform the way HMO’s are valued for council tax.
This should make sure that HMO properties are rated as one property with one council tax band rather than the way Portsmouth City Council put forward proposals to tax HMO’s for each individual room.
Fifty other councils are considering doing the same.
The Department of Levelling Up, Housing and Communities are now seeking the views of landlords with several different options, but one being forcing the Valuation Office Agency (VOA) to consider an HMO as a ‘single dwelling’.
One landlord in Portsmouth had his HMO’s re-banded making his 68 bedrooms individual properties giving the council an extra eye-watering £72,000 a year. The Government has said it wants to
provide greater certainty and consistency in the way that accommodation in the HMO sector is banded for council tax, and to ensure that HMOs are banded as one property and have one council tax band, other than in exceptional circumstances
We stay with the Government where it seems that their Boiler Scheme is not going to plan.
Low take up for Boiler Upgrade Scheme
The government’s ‘Boiler Upgrade Scheme’ which was launched in May 2022, offers grants to help both homeowners and landlords switch to low carbon heating systems.
It appears that there has been a very low take-up, according to Lord Callanan, the Parliamentary Under Secretary of State for Energy Security and Net Zero. He says that only half of the allocated budget has been used so far, and the Government’s target is unlikely to be met by 2028.
This will also impact on the limited amount of installers to cater for implementing low-carbon heating going forward past 2028.
Public awareness is still woefully low on low-carbon heating systems, and there is a shortage of heat-pump installers. This is affecting the take-up of technologies like heat pumps, where upfront costs are too high for many to bear, even with the help of a grant.
The committee is asking for the government to give more clarity on feasible options for low-carbon heating via a policy framework along with extending the scheme. They also call for a review on EPC certificates
Correct the Energy Performance Certificates methodology so that certificates properly reward households for making the switch to low-carbon heating and flawed EPC recommendations cease being a barrier to Boiler Upgrade Scheme eligibility.
You can read the full article here.
Tenants evicted in favour of Airbnbs
Landlord Today reports that tenants are being unfairly evicted under Section 21 notices so that the properties can be turned into holiday lets and Airbnbs according to Labour MP, Luke Pollard for Plymouth Sutton and Devonport. He said
The pandemic turbocharged the housing crisis in rural areas, especially in Devon and Cornwall. Families are being turfed out of their private rented homes under section 21 notices so that they can be turned into second homes and Airbnbs.
It is time not only for increased council tax on second homes but for a proper licensing regime, so that communities can decide how many second homes should be in their community, to stop them being hollowed out.
Rachel Maclean, the housing minister, said that this was being looked at and will form part of the Levelling-up and Regeneration Bill in the form of registration of second homes. She responded by saying
We understand that, naturally, people want to go on holiday to beautiful areas, but there is an impact on communities. We need the registration scheme so that we understand and better mitigate those issues.
She further re-assured a North Norfolk MP that
The new council tax second homes premium will enable councils, particularly in areas such as his with a strong tourism industry, to generate significant additional funding for local services. If they introduce the maximum premium, they will benefit from double the council tax revenue.
Landlords need to act on mould and damp
Citizens Advice is calling for the government to be tougher on landlords to tackle mould and damp and to act now on making rented homes more energy efficient.
They claim that 1.6m children are living in rented homes with damp, mould and excessive cold. Furthermore, 2.7m homes are experiencing these issues now.
Rented homes are 73% more likely to have damp in their homes as the rented home is more likely to be of a lower energy efficiency rating of D or lower.
It wants the government to increase the amount that a landlord has to pay to on energy improvements from currently £3,000.00 to £10,000.00 and for all new private rented properties to be an EPC rating of C by 2025, with existing ones by 2028.
Gillian Cooper, from the Citizens Advice says
Every week we hear stories of people living in cold, damp and mouldy properties they can’t afford to heat properly. It’s shameful that more than 20 years since legislation came into force to reduce fuel poverty and improve the energy performance of homes, people are still suffering.
Improving energy efficiency in privately rented homes has never been more urgent. It’s the step needed to keep people’s essential bills low, while also helping to protect their mental and physical health.
Citizens Advice charity are also calling for the government to deliver ‘Awaab’s Law’ to force landlords to promptly fix damp and mould when it appears in rented properties.
This law has come about as a result of two year old Awaab Ishak’s death in 2020 which was caused by ‘extensive’ mould in his social housing flat. You can read more here.
Landlords selling up is not an issue
A new survey has found that only 7% of landlords plan to sell up in the next year and 71% plan to retain their portfolio and even expand it, according to a poll from Leaders Romans Group.
Those selling up are doing so because of the imminent Renters Reform Bill, interest rates and energy costs.
However, the NRLA claim 30% of landlords plan to either cut their portfolio or sell up completely again due to planned government changes.
Alison Thompson, Leaders MD of lettings says
The government must realise that the housing crisis, specifically the under-supply of rental units, can’t be resolved by penalising the already stretched PRS. Instead, it should reconsider proposals to require rented properties to have an EPC rating of C, plans to ditch Section 21 and assured shorthold tenancies.
You can read more here.
Snippets
Labour’s ‘a home for a £1’ idea mocked by leading agent
Landlord accreditation service to roll our to nearby councils
Perfect storm as landlords quit and social housing volumes fall
SCAM alert: landlord and agent pics being used to lure rental ripoff victims
Mayor demands powers to freeze private rents – yet again
York landlord group says ‘collaboration not conflict wat forward on HMO licencing
Newsround will be back next week.