Welcome to our weekly Newsround.
Next Tuesday (14th) sees the Renters’ Rights Bill return to the House of Lords for its final stages.
Only three amendments have been given, and it is now not expected to have any major changes to it prior to it coming law.
But let’s see what has caught the team’s eye this week.
Rental shortage as landlords sell
New stats out this week by Goodlord claim that 35% of landlords have either sold up or 19% of landlords have tried to sell over the last 12 months. Of this 44% sold one property, but 14% had taken five or more properties out of the rental market.
Only 13% of landlords remain positive about their industry.
Reasons for this vary, the main one being the Renters’ Rights Bill and the loss of section 21 evictions. These significant actions are now having an impact on the amount of rental properties on the market. 48% of tenants have struggled to find rental property over the last year, with some paying more than one month’s rent in advance.
With the Renters’ Rights Bill imminent, where tenants will be able to challenge any unreasonable rent increase, 22% of tenants admit that they will always appeal a new rent increase.
This will inevitably cause new pressures on the First Tier Tribunal with delays to hearings, leaving frustrated landlords in limbo for a rent increase for some time. With the cost of living taking hold, 42% of landlords say that they have had tenants in rent arrears.
You can read more here.
Eviction costs soar for landlords
Figures out this week from the High Court Enforcement Officers Association (HCEOA) claim that it is now taking on average between six to twelve months for landlords to get their properties back from issuing proceedings in the County Court.
This is costing claimants £12,708 to £19,223. The HCEOA are asking for two major changes:-
- Enable high court judges to transfer more evictions to the High Court where delays are more than three months or ‘force’ is required
- To make the process much easier for ‘transferring up’
They say that in doing this, it will save landlords £20,000 on average per eviction. They claim that the delays in the County Court bailiffs’ service are unfairly penalising responsible landlords who are now exiting the market because of these delays and costs.
Mike Jackson of HCEOA said
This would save landlords who already have a court judgment in their favour thousands of pounds, prevent them from exiting the rental market and stop them becoming debtors of the future.
Secret sublets by tenants could leave landlords with high penalties
A new report out this week by Direct Line business insurance claims that two thirds of landlords have been left vulnerable to high penalty fees and prosecution where their tenants have been sub-letting without their knowledge.
Many landlords are unaware that a tenant subletting one of their bedrooms can change the whole property into HMO under the Housing Act 2004.
This means landlords become liable for certain licences and their properties have to legally comply to stringent legislation, which, if they do not means that they are committing a criminal offence leading to financial penalties starting at £20,000 to anything up to £80,000.
Furthermore, the tenant can also claim for a rent repayment order (although if the breach of HMO rules is due to their illegal conduct, it is unlikely that they would succeed in getting an award).
Landlords are advised to seek professional help with solicitors who specialise in this area.
Aggressive landlord hit with a £25k RRO
A husband and wife landlord have been fined by the First Tier Tribunal with a £25,000 rent repayment order after the judge felt that he was ‘deliberately intimidating’ his tenants with ‘mounting unpleasantness’. They accused their tenants of blackmail and threatened to report them for fraud when they tried to re-negotiate a new tenancy.
The husband and wife landlords failed to apply for an HMO license and claimed that it was their company that had received the rent, not them. The judge ruled that, as the section 21 notice was signed by them and not their company, they had indeed put themselves forward as ‘joint landlords’.
The judge said
The purpose was, characteristically, to intimidate, against the ongoing RRO application, a vexatious campaign forming part of Mr Krogdahl’s personal vendetta against the applicants’.
Snippets
Landlords caught in crossfire of Universal Credit rejections
Shocking lack of preparedness from tenants who share – survey
Renting to a 17 year old
Landlords warned ‘be vigilant’ as fraudsters target private rental sector
‘Leave us alone’, Tory landlord and activist warns Labour
Landlords to be abolished by the Green Party
See also our Quick News Updates on Landlord Law
Newsround will be back again next week