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Councils must crack down on rogue letting agents

Local authorities must take much firmer action against rogue letting agents that tarnish the image of the private rented sector, the National Landlords Association (NLA) has said.

New research by the NLA found that more than half of local authorities did not prosecute a single letting agent in the four-year period from 2014/15 to 2017/18.

In a Freedom of Information (FOI) request to 20 local authorities, the NLA discovered that 53 per cent of local authorities did not prosecute any letting agents.

A further 32 per cent prosecuted three or fewer.

Liverpool City Council was the outlier, prosecuting 13 letting agents. By contrast, Hammersmith and Fulham Council did not even bother to respond to the FOI. Of the 20 councils questioned, 13 had already introduced landlord licensing schemes.

The NLA expressed concern at the fact that some letting agents make unauthorised alterations to a landlord’s property, leading to a breakdown of trust between the tenant and the landlord.

In addition, they sometimes let out a landlord’s property to multiple tenants, effectively creating an illegal “house in multiple occupation” (HMO).

Given that the licensing laws on an HMO are stricter than those for a single occupancy property, this can leave the landlord liable to fines of up to £30,000 or even criminal charges.

Richard Lambert, CEO of the NLA, said: “It is clear that too many local authorities to failing in their duty to prosecute rogue letting agents.

“These bad ones can really poison the relationship between landlords and tenants. We want to see local authorities take much firmer action.

“We were shocked to find that so few letting agents are being prosecuted by local authorities. While many local authorities have introduced licensing schemes to crack down on rogue landlords, they seem to be allowing letting agents to get off scot-free. This must stop.

“In the meantime, landlords should make sure their chosen agent is reputable and is a member of a client money protection scheme that will safeguard their assets — rental money, deposit or other funds — if they misappropriate them or go bust.”

Source: Simple Landlords Insurance

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Council proposes crackdown on student Houses of Multiple Occupation

Houses with several students living in them could face tougher restrictions under new plans approved last night by Broxtowe Borough Council.

Families are thinking of leaving the area, because the number of student Houses in Multiple Occupation (HMOs) have increased so much around Beeston, according to one councillor.

Several councillors said the number of HMOs has ‘eroded the character of parts of Beeston’.

Currently, no additional planning permission is needed to convert a ‘family house’ to an HMO in Broxtowe if there are six or fewer students living there.

With two successful and growing universities, and pressure for student housing still high in the city, there has been a growth in recent years of student living across the border in Broxtowe, and Beeston in particular.

Now, concerns are being raised about the quantity of HMOs, and Broxtowe Borough Council is looking to impose new restrictions.

In Nottingham, to convert a ‘family house’ to an HMO, you need to get special planning permission if there are going to be three or more unrelated people living in a house – lower than the threshold in Broxtowe.

Now, Broxtowe is considering bringing its rules in line with the city’s, and is now looking into whether a policy would work.

It is hoped the move could help the council control the amount of new applications it receives, and give it power to reject applications it feels are inappropriate.

However to impose a scheme like this, the council has to have evidence showing there is a need for the new measures.

Now, Broxtowe Borough Council plans to collect this information, before a scheme could potentially be introduced by the end of the year, or early next year.

Councillor Lynda Lally represents Beeston Central for Labour, and said: “I’ve never known anything in the 20 years of being a councillor for Beeston Central which has been as controversial as this, apart from the tram.

“I genuinely feel this is a huge probelm, and we can’t just say ‘we’ll see how this goes’, we can’t do that any more.

“I’ve had people in an emotional state saying I’m going to move out of here because I can’t stand what’s happening to my street any more.

“Family homes with three bedrooms are turning into homes with eight, nine and 10 bedrooms, so I’m really glad we are tackling this.”

“We cannot see our communities destroyed any more.

“This is not against students, this is about getting a better mix.”

Councillor Stephen Carr is the leader of the Liberal Democrats, and represents Beeston North.

He said: “Nottingham seems to now be saturated with HMOs.

“Just over the last few months (in Broxtowe) there are more, and more and more (HMOs) coming in.

“What we are trying to prevent at this stage, is not shutting the door after the horse has bolted, but preventing us becoming Dunkirk, or Lenton which, when you go there now when the students aren’t there, it’s deserted. It has no character, it has hardly any families left.

“We really need this policy quickly.”

The plan was approved unanimously at a meeting of Broxtowe Borough Council’s Jobs and Economy Committee yesterday (Thursday, July 4)

By Local Democracy Reporters

Source: West Bridgford Wire

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Help for landlords who struggle to keep up with pace of change

Many landlords in the UK are struggling to keep up with changes to the law that have been introduced over the past year, according to an independent survey.

Some 30 per cent do not understand the changes to House in Multiple Occupation (HMO) licensing, which came into effect in October 2018 and 28 per cent are not aware of the abolition of Section 21, which came into force at the start of June 2019 to prevent unfair tenant evictions.

The survey commissioned by bridging lender Market Financial Solutions, also found that 27 per cent are uncertain about the tenant fees ban, with a further 19 per cent saying they understand the reform but are unsure how it will affect them.

When it some to tax, there was also significant confusion, with the poll showing that 28 per cent do not understand the reforms to inheritance tax that have changed the tax free allowance on properties being passed down and 25 per cent do not know about the reforms affecting tax relief on mortgage repayments, which were implemented in April this year.

The research also found that far more landlords opposed these reforms than supported them.

Some 44 per cent are against the banning of letting fees, compared to 23 per cent in favour, 37 per cent against the abolition of Section 21 with 16 per cent in favour, while 48 per cent are against changes to buy-to-let mortgage relief and 16 per cent for.

Source: Simple Landlords Insurance

Leicestershire landlord Brent landlord
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Brent Landlord Ran Illegal HMO Earning Almost £70k Per Year

A Brent landlord running an illegal HMO (House in Multiple Occupation) was estimated to be raking in £68,400 a year.

Officers from London’s Brent council found 16 people crammed inside the unlicensed HMO, a converted three-bedroom semi – including three in the shed.

The Council raid followed tip-offs from neighbours. Fly-tipping and the constant coming-and-going from the property had led neighbours to complain to Brent council’s enforcement team.

The three tenants in the shed were found to be paying the Brent landlord up to £800 per month for the privilege.

One family of four told officers they were paying the landlord £800 a month to live in a single, windowless room on the ground-floor.

Tenants had no written tenancy agreement from their landlord or any cash receipts for their rent payments – with the Brent landlord estimated to be raking in £68,400 a year.

The illegal house in multiple occupation operated by the Brent landlord also lacked a working fire alarm system, had poor maintenance, and also had poor ventilation.

Cllr Eleanor Southwood, cabinet member for Housing and Welfare Reform, confirmed that the Brent landlord ‘faces a hefty fine for breaking the licensing laws around houses in multiple occupation’.

She said: ‘We will do everything in our power to protect vulnerable tenants from this kind of gross exploitation. Every renter in Brent deserves to live in a home that is safe and maintained to a decent standard.’

Earlier this week, Brent council’s cabinet backed changes to the way limited social housing is allocated in the borough – with homelessness increasing and a third of the borough’s residents in PRS.

The cabinet is driving forward an ambitious programme to build 1,000 council homes, increasing affordable housing through the council-owned company i4B and London-wide Capital Letters initiative, and driving up standards in the private rented sector.

Source: Residential Landlord

Houses of Multiple Occupation Family home
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Family home turned into multi-occupation house despite concerns

Retrospective plans to turn a family home into a seven-bed house in multiple occupation in Coventry have been approved, despite a councillor’s claims it is a deliberate attempt to circumvent the planning process.

A bid for a nine-bed HMO was previously refused by officers on the grounds it was intensified use but a second application was passed by a committee on Thursday (June 13) after the size reduced by two rooms.

Councillor Tim Sawdon had criticised how the applicant sought retrospective approval for 30 Old Mill Avenue, and blasted the proposals as gross over-development of the site.

But planning officer Shamim Chowdhury said: “The use is clearly different to a family house and increases the potential of noise, however in this case it is a large property and does not share and walls with other houses.

“Retrospective applications are acceptable and we cannot control that.

“In terms of assessment we do the same as a normal application.”

One of the conditions was for the house to be occupied by no more than seven residents, with planning policy manager Mark Andrews adding the authority will be monitoring the licence.

Concerns were also raised about whether the parking was adequate, with officers stating up to six cars would be catered for, but only with four at a time would they be able to manoeuvre on the drive independently.

Cllr Naeem Akhtar said: “Our local plan requires all HMOs to provide adequate parking, this is not adequate parking.”

Council officers said the local plan indicates the application requires ‘up to six spaces’ and was therefore acceptable.

By Tom Davis

Source: Coventry Telegraph

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Rogue Carlisle landlords prosecuted for unsafe conditions

Two Carlisle-based rogue landlords have been fined more that £1,000 each following a successful prosecution by Carlisle City Council.

Following a series of unannounced visits to rented premises in November 2018, Carlisle City Council has successfully prosecuted Sait Colak (49) and Erkan Colak (43) – both of 41 Fernlea Way, Carlisle – for offences under the management of a House in Multiple Occupation (HMO) regulations.

The visits backed by warrants from the Magistrates Court were carried out in coordination with the Cumbria Fire and Rescue Service, Cumbria Police and the Immigration, Control and Enforcement Service.

The offences related to poor management and unsafe conditions in the property. The landlords were fined £1,000 each on Wednesday 8 May 2019 by Carlisle Magistrates Court. In addition to the fine, £150 costs and £50 Victim Surcharge were also imposed.

Both Sait Colak and Erkan Colak pleaded guilty (by post) and neither attended the hearing.

Carlisle City Council spokesperson said: “The successful prosecution demonstrates the effectiveness of multi-agency working – a key feature of the Rogue Landlord Project funded by the Controlling Migration Fund. The project targets unlawful activity in the private rented sector with a focus on the Botchergate area and fast food premises.

“All Houses of Multiple Occupation should be properly managed; ensuring the safety and security of the tenants. In addition to this court prosecution, we are also now using the powers under the Housing and Planning Act 2016, to issue civil penalties against landlords. To date we have issued five civil penalties to landlords found to be operating without HMO licences.”

A House in Multiple Occupation is a privately rented property which is shared by more than two individuals and who share facilities such as a bathroom or kitchen. Any HMOs occupied by five or more individuals must be licensed. All HMOs must be managed to ensure the tenants are safe and secure.

 Source: Cumbria Crack
HMO landlord
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Thousands of HMO landlords still operate without licences and provide poor living conditions

Many UK renters are living in Houses in Multiple Occupation (HMO), which, under current regulations, are properties rented out to three or more people forming at least two separate households, where tenants share basic amenities such as a kitchen or a bathroom. Any HMO that houses more than five people forming two or more separate households requires the landlord to apply for a licence to the local council, at an average cost of £600.

Students and the increasing number of people sharing flats with friends will be familiar with the common problems associated with living in an HMO. Most commonly, HMO landlords can be slow to make repairs, and the overall quality of the housing is more likely to be substandard.

Under current regulations, HMO landlords have to provide adequate fire escapes, gas and electrical safety, and minimum bedroom sizes; however, when it comes to the actual quality of the housing, there are no standards that can be enforced. In the worst cases, large-scale HMO housing has been found to contain damp and mould, kitchens in a state of disrepair, and vermin. These problems especially affect HMOs that have been converted from guest houses, as a 2015 BBC exposé demonstrated.

Moreover, thousands of landlords across the country are still avoiding licensing, putting their tenants at risk. In a landmark court case earlier this year, five Leeds flatmates took their landlord to court for failing to comply with licensing regulations, winning back all of their rent.

It may be that a more transparent and uniform landlord licensing scheme in which the money is reinvested into property maintenance could improve tenants’ living conditions – and increase landlord compliance.

‘Effective enforcement of rental sector standards is one of the biggest problems facing the lettings industry,’ says Neil Cobbold, chief operating officer of automated rental payment company PayProp.

‘Landlords might be happier to pay for these licences if they know the money is going to be used to raise PRS standards and identify rogue operators. Licensing schemes are sometimes criticised for being “revenue raisers” for local councils,’ adds Cobbold.

‘However, if authorities are more open about where the money is going and more focused on reinvesting it into housing, licensing schemes could be more effective with higher rates of compliance.’

Source: Real Homes

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Plans to turn Rhosddu property into HMO for up to eight people given go ahead on appeal

Plans to convert a terrace property in Rhosddu into a HMO have been allowed on appeal – despite being rejected unanimously by planning committee members.

The application for 33 Park Street proposed that the four bedroom property was turned into five-bedroom house in multiple occupation (HMO) for eight residents.

The plans had been recommended for approval by the head of environment and planning Lawrence Isted, who said he was satisfied that the development “would not result in an over concentration of HMOs in the immediate locality.”

But the plans were were turned down by councillors in January 2019 amid concerns over a lack of parking and amenity space for residents.

Objections had also been raised by several neighbours who fear that tenants would be ‘crammed in’ and may include substance abusers. The council’s highways department said it was also against the scheme because it did not include enough parking spaces.

However planning inspector Clive Nield has now overturned the council’s decision and approved the application on appeal.

In his report Mr Nield says that although there is a lack of parking along Park Street, the proposed HMO “would be in a suitable location for tenants who rely on walking, cycling and public transport”

Addressing concerns about a lack of amenity space, Mr Nield continues onto say: “The council’s Local Planning Guidance Note 5 (Houses in Multiple Occupation) says that HMOs should have a large enough private outdoor area to provide space for external drying areas, cycle parking and bin storage and to provide for the amenity of the future occupiers.

“It goes on to say that for an HMO accommodating 8 tenants it will normally seek a minimum private outdoor area of 32 m2.

“In this case, the space in the back yard of the appeal property is reported to be 27 m2. There is also a small area at the front of the property. However, that is not private space, as required.

“The limited amount of private amenity space available also falls well short of the level normally considered acceptable for a family dwelling and is a feature of this densely developed urban area.

“However, there are public open spaces only a few hundred metres away, and the yard is adequate for clothes drying and the storage of bicycles and bins.

“Whilst it does not fully meet the standard sought by the Council’s Guidance Note 5, I consider this shortcoming to be insufficient reason on its own to justify refusing the proposal.

“I conclude that the private outdoor amenity space provided would be adequate, despite its limited area.”

He also notes that whilst there have been concerns from residents about potential occupiers of the HMO and antisocial behaviour, the “licensing requirements for HMOs also provide an element of control, including a condition that the landlord is held accountable for antisocial behaviour.”

It is the second HMO in the Rhosddu to have been allowed on appeal in the past 12 months.

Grosvenor councillor Marc Jones, said: “This goes against the local planning committee‘s decision and ignores the concerns raised by myself and local residents.

“The inspector claims parking for 8 people would not be any worse than for a family. He also states that being close to public transport makes it less likely that people will need a car. What public transport?!

“He admits that the amenity space is below guidance levels for eight people but says it’s no big deal and it’s limited for a family anyway. There’s a big difference between eight individual people living under one roof and a family in terms of needing outdoor space.

“This is a poor decision by the Planning Inspectorate and confirms my view that local communities do not have enough say in planning matters.”

Source: Wrexham

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Students win rent refund from unlicensed landlord

Five students from Leeds have won a rent refund from their landlord who failed to acquire a House in Multiple Occupation licence (HMO).

Ben Leonard, a postgraduate student, and his four housemates found out their home didn’t have an HMO licence when their landlord applied to Leeds City Council for one halfway through the tenancy.

A HMO must be held by any home occupied by five or more unrelated people who share communal facilities, with at least one tenant paying rent. It confirms the house has the correct safety certificates, that fire alarms are present and working and whoever is in charge of the property is qualified. It also confirms that the landlord does not have a criminal record.

Landlords who don’t have a HMO face fines of up to £30,000, including repaying up to 12 months of rent to their tenants, via a rent repayment order (RRO), which is what happened to Leonard’s landlord.

A housing officer from Leeds City Council informed the tenants that the council was taking action against landlord and explained that they were entitled to seek an RRO.

The tenants made their application, which included evidence of paying rent, bank statements and the tenancy agreement, which was accepted and the landlord was taken to court. He pleaded guilty and, after bills were deducted from the amount owed, as well as a further deduction due to the landlord’s financial situation, each tenant was owed around £2,000.

‘Incredible response’
After winning the case, Leonard told the BBC he received an “incredible” response on Twitter earlier this month. He was inundated with messages from other tenants who felt their landlords might have cases to answer.

The case coincides with the government’s announcement two weeks ago that they plan to repeal Section 21 of the Housing Act (1988), which allows landlords to evict tenants at the end of their fixed-term, and put an end to ‘no-fault’ evictions.

The change in the law would, the government said, “protect tenants from having to make frequent and short notice moves, and will enable them to plan for the future.”

Written by: Max Liu

Source: Your Money

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Landlords warned to prepare for new HMO rules

FROM April 1, the licensing laws for Houses in Multiple Occupation (HMO) in Northern Ireland have changed.

Mandatory HMO licensing is being extended because of concerns about the number of HMOs operated by landlords who rent out sub-standard, overcrowded and dangerous accommodation, exploit vulnerable tenants and in some cases defraud the public purse.

A house in multiple occupation is a single property in which multiple households live and share basic amenities. A typical HMO may have a kitchen and/or bathroom shared between two or more rented households. These laws do not apply to rented flats or apartments with separate facilities.

According to figures obtained by the BBC, there are over 6,000 HMOs in Northern Ireland, with more than 4,000 based in Belfast.

Under the new scheme, all HMOs in Northern Ireland must hold a valid licence and landlords without licences or found to be in breach of the conditions of their licence, risk significant fines of up to £20,000 and/or prosecution.

HMOs previously been registered with the NI Housing Executive, which still benefit from valid unexpired licences, will automatically transfer to the new local council scheme. HMO licenses are valid for a period of five years and must be renewed periodically.

The licensing of all HMOs in Northern Ireland is now managed by the relevant local council. The ultimate purpose of the new legislation is to ensure that the accommodation is safe for the tenants and surrounding neighbours.

Under the legislation, landlords must have an anti-social behaviour plan in place and keep a record of instances of anti-social behaviour and what actions have been taken by the landlord to deal with the situation. Landlords will be provided with a guide from the Council, advising them on how to tackle these issues.

The legislation also requires HMOs to adhere to certain health and safety standards. The property must benefit from valid up to date safety and maintenance certificates for all relevant appliances.

From April 15, tenants of HMOs will be able to contact their local council to check if the property they reside in is registered as a HMO. Under the legislation, the tenant can report their landlord to their local council if the tenant suspects that there is not a valid licence in place or if the conditions of the licence are being breached.

The local council has the power to impose certain conditions on licenses and revoke HMO licenses if conditions are not being met.

The rules could have a major impact on city landlords who rent out premises to students and the growing number of professionals who share houses and flats.

By Oonagh Murdock

Source: Irish News