Private Rented Housing – Parliamentary Written Answer

Mr Tanmanjeet Singh Dhesi: To ask the Secretary of State for Housing, Communities and Local Government, what plans he has to restrict the number of months of rent landlords can request upfront; and what assessment he has made of the effect on tenants in the private rental market of landlords being able to charge tenants six months of rent upfront on their accommodation.

Eddie Hughes: It is for landlords and tenants to agree the amount of rent that should be charged and how much should be paid in advance, according to individual circumstances. We do not expect it to be the norm that landlords ask for multiple months of rent in advance.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-06-10/14039

Rise In Landlords Purchasing BTL Properties Through Limited Companies

Rising numbers of UK and international landlords are choosing to register as a limited company to manage their portfolios and to take advantage of sizeable tax benefits. Findings reveal that there were a record number of new limited companies set up in 2020, with 228,743 buy-to-let firms up and running. Last year, there were a total of 41,700 buy-to-let incorporations, an increase of 23 per cent on 2019. The numbers have more than doubled since 2016, rising 128 per cent, when tax changes for landlords were introduced. Read more on the Property Wire website.

Rise in Landlords Purchasing BTL Properties through Limited Companies - PropertyWire

Ombudsman Publishes Landlord Performance Data

Performance reports for 2019/20 have been released on the ombudsman’s website for all members of the scheme, showing the categories of complaints received, decision outcomes, the types of order issued and timeliness in complying with the orders. The dispute resolution service said the move will help landlords to improve their services and provide tenants with more insight. There is no accompanying league table or ranking system, but the reports include comparisons with the average performance of similar landlords by type and size.  You can search for individual landlord performance on the Housing Ombudsman’s website.

https://www.housing-ombudsman.org.uk/landlords/ 

Landlord Confidence Falls Amidst Covid Pandemic

Almost two thirds of private landlords in England and Wales expect their rental business to be negatively impacted by the COVID-19 pandemic according to new research. The latest survey of just over 2,000 members of the NRLA found that 48 per cent felt they would face a ‘slightly’ negative impact to their business as a result of the pandemic and 18 per cent said they would face a ‘significant’ negative impact. This has caused landlord confidence to fall with 56 per cent saying that they were less, or much less, confident of being able to achieve their goals over the next year compared to three months ago. Read more on the NRLA website.

https://www.nrla.org.uk/news/landlord-confidence-falls-amidst-covid-pandemic

Landlords Illegally Evicting Renters Despite Ban

Landlords are throwing renters out of their homes during the coronavirus pandemic despite the ban on evictions, a renters’ union has claimed. Evictions have been suspended since the beginning of lockdown, and the government has announced it would extend the ban until September 20 in an “11th hour U-turn” that has been welcomed by Labour. But while landlords have been urged to “show compassion” to renters struggling to pay rent, London Renters Union says it hasn't stopped people being thrown out of their homes. Read more on the Huffington Post website.

https://www.huffingtonpost.co.uk/entry/landlords-illegally-evicting-renters-in-defiance-of-ban-says-union_uk_5f3fe90bc5b6305f3256f085?guccounter=1 

Most Landlords Stood By Their Tenants During The Lockdown

Some 87% of landlords who received a received a request from a tenant for a rent reduction or payment holiday due to COVID-19 agreed to a concession. More than a third (35%) received a request from a tenant for a rent reduction or payment holiday from March to June, outlining the scale of the disruption caused by Covid-19. Despite this difficult period half (50%) of landlords plan to buy at least one property in the next 12 months. Read more on the Property Wire website.

https://www.propertywire.com/news/most-landlords-stood-by-their-tenants-during-the-lockdown/

Universal Credit Change For Social Landlords To Be Introduced

Universal Credit systems will be changed so that social landlords receive direct rent payments on the same day that tenants are paid the rest of their benefits from next month, the government has announced. The change is expected to save housing associations and councils thousands of hours in administrative work. Some Universal Credit claimants – usually those struggling to pay their rent – agree to have the housing cost element of their benefit entitlements paid directly to their landlords, rather than into their personal bank accounts as is standard. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/admin-saving-universal-credit-change-for-social-landlords-to-be-introduced-next-month-67123?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Members Rallied To Contact MPs As Evictions Ban Extended

The extension of the evictions ban will have devastating consequences for some landlords, with the NRLA encouraging those affected  to write to their MPs to make sure their voices are heard. Landlords could face serious financial hardship or end up stuck with anti-social tenants for months on end as a result of the extension and the association wants them to share their experiences to make sure they have their say when it comes to agreeing a new possessions process. Read more on the RLA website.

https://news.rla.org.uk/members-rallied-to-contact-mps-as-evictions-ban-extended/

Housing Market Reopens

Landlords can now hold viewings and allow tenants to move in and out of rental homes – provided they follow social distancing measures. The changes to the rules -­ amendments to the Health Protection (Coronavirus, Restrictions) regulations in England – means estate and letting agents’ offices can open; viewings are permitted; show homes can open; removal companies and the other parts of the sales and letting process are re-started with immediate effect. Housing Secretary Robert Jenrick said more than 450,000 buyers and renters have been unable to progress their plans to move since March. Read more on the RLA website.

https://news.rla.org.uk/housing-market-to-reopen/

Landlords: Coronavirus – Parliamentary Written Answer

Sarah Olney: If he will take steps to encourage landlords to (a) defer rental payments and (b) not approach guarantors for late rental payments during the covid-19 outbreak.

Luke Hall: The Government, along with the courts service, has delivered unprecedented support to reduce the risk of rent arrears and has taken legislative and procedural steps to protect tenants. We have been clear that there is a need for landlords to offer support and understanding to tenants – and any guarantor – who may see their income fluctuate.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-04-28/901999

Landlords Call For Council Tax Relief On Empty Homes

Landlords are calling on Ministers to tell local authorities that they should not charge council tax on rented homes left empty because of coronavirus. A significant number of rented homes have been left empty because tenants have been unable to take up tenancies, or have chosen to move out to be closer to family during the lockdown. During this period landlords will become liable for the council tax on the property and have no realistic prospect of finding new tenants. Read more on the RLA website.

https://news.rla.org.uk/landlords-call-for-council-tax-relief-on-empty-homes/ 

Landlords Call For Extension To Safety Certificates

Landlords are calling for a six-month extension to the validity of all gas and electrical safety certificates to cover for the impact of the coronavirus.  This comes in response to a survey showing that 38 per cent of landlords are struggling to source maintenance contractors to undertake required work and just over a third are having difficulties undertaking work in their properties because of either themselves, or their tenants, self-isolating. This would provide the time that landlords need to ensure routine, but legally binding checks, can take place at a point when the danger of spreading the virus in rental properties is at least reduced. Read more on the RLA website.

https://news.rla.org.uk/landlords-call-for-extension-to-safety-certificates/

Landlords And Tenants Both Worried About Impact Of COVID-19

Three quarters (73%) of landlords are worried their tenants will not be able to pay all or part of the rent, research consultancy Opinium found. Meanwhile 70% of landlords are concerned that their tenants will vacate, leaving them with an empty property. The majority (58%) of renters who were working before the COVID-19 outbreak report they have had their employment impacted in some way, Two fifths (43%) of those whose work has been impacted have struggled to pay rent, bills or other essentials such as food. Read more on the Property Wire website.

https://www.propertywire.com/news/landlords-and-tenants-both-worried-about-impact-of-covid-19

Coronavirus (COVID-19) Guidance For Landlords And Tenants

Non-statutory guidance for landlords and tenants in the private and social rented sectors on:

1. Measures relating to notices seeking possession as amended by the Coronavirus Act 2020

2. Court action on possession cases during the Coronavirus (COVID-19) outbreak

3. Property access and health and safety obligations in the context of Coronavirus (COVID-19) restrictions

Download the guidance from the GovUK website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876500/Consolidated_Landlord_and_Tenant_Guidance_COVID_and_the_PRS_v4.2.pdf

Universal Credit: Landlord Guidance Update

The Department for Work and Pensions (DWP) has refreshed the guidance on Universal Credit to help landlords understand how to manage tenants who are reliant on the payments in order to meet their rental obligations. The guidance provides landlords with a summarised overview of how they can navigate issues relating to Managed Payment to Landlord (MPTL), Discretionary Housing Payments (DHP) and recovering rents arrears from a Universal Credit claim. For landlords, the guide is a one-stop shop that can help them deal with issues that can arise from different stages of a tenancy and it signposts them to various resources that can help them support their tenants. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/universal-credit-landlord-guidance-update

Landlords Name Their Top Cities For 2020 BTL Investment

A new survey of 800 UK landlords, commissioned by landlord insurance provider, Simply Business, has revealed which cities they are most keen to invest in during 2020. According to the study, which assessed the buy-to-let market, London and Manchester came out top as the cities where landlords expect the buy-to-let market to be most robust this year. Combined, the two cities received over a third of votes when asked which city represents the best investment opportunity. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/landlords-name-their-top-cities-for-2020-btl-investment.html

A Third Of Landlords To Sell Off Homes

More than a third of private landlords are planning to cut the number of homes they rent out or exit the market altogether according to a new survey of over 2,000 landlords. Almost 34% of landlords have indicated they intend to reduce their investment in the market – a 30% increase over the previous twelve months, according to the research conducted by the RLA.  Just 12% of landlords are looking to expand the number of homes they rent out down from 14% a year ago. Read more on the RLA website.

https://news.rla.org.uk/a-third-of-landlords-to-sell-off-homes/

What Will A Conservative Government Mean For Landlords?

The Conservatives have triumphed at the polls with a large majority – but what does this mean for landlords and the private rented sector? A commitment to abolishing Section 21, a stamp duty surcharge on non-UK residents and lifetime rental deposits were all key elements of the Conservative manifesto. On the PRS the Tories also said they will press forward with the roll-out of Universal Credit, bring an end to the benefit freeze and invest £9.2 billion in the energy efficiency of homes, schools and hospitals. A lifetime rental deposit scheme would see deposits transferred from one tenancy to another, rather than tenants having to save up for a ‘second deposit’ when moving house. Read more on the RLA website.

https://news.rla.org.uk/what-will-a-conservative-government-mean-for-landlords/

Renters Quizzed In Relation To Landlords’ Tax Affairs

A HMRC ‘fact finding letter’ suggests tenants may have to take tax off their own rental payments to ensure the correct tax is paid if their landlord is not resident in the UK – and is not registered under the UK’s Non-resident Landlord Scheme (NRL) – or face a fine. The HMRC letters come with a form which asks the tenants for information about the property, such as whether it is owned by a trust and, if so, the date it was acquired by a trust, and details about the trustees, settlors and beneficiaries. Read more on 24housing.

https://www.24housing.co.uk/news/renters-quizzed-in-relation-to-their-landlords-tax-affairs/

Further Growth Predicted For HMO Sector

Data from lender, Precise Mortgages, has revealed that over a fifth of landlords are planning to expand their portfolio with the addition of an HMO (Houses in Multiple Occupation). HMOs are proving to be an attractive proposition in a time of market uncertainty, with HMO landlords achieving the highest average rental yields at 6.3% compared with the market average of 5.5%. The research shows average rental yields across the market as a whole are at their lowest for nine years. Average yields for all property types dropped 0.3% in Q2 from 5.8% in the first quarter of this year and are now at their lowest level since 2010. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/finance/further-growth-predicted-for-hmo-sector.html