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10th September 2020, Steve Lees attended the online meeting hosted by the NRLA, the first meeting was to welcome those invited to the board and discuss pertinent PRS issues.
A selection of independent landlord associations were amongst the NRLA attendees on the panel.
Aims of the group are to represent a broad a cross-section of stakeholders from the private-rented sector to share insights and discuss matters of relevance to the provision of the privately rented sector.
Points discussed included; COVID challenges, Renters Reform Bill, Court Reform, MEES, Renting Homes (Wales), Tenant Loan Schemes and Section 8/21 Reform.
SWLA represent landlord members at a national level, we are consistently striving for a fair deal for landlords in the PRS.
Renters affected by coronavirus will continue to be supported over autumn and winter through comprehensive measures.
Renters affected by coronavirus will continue to be supported over autumn and winter through comprehensive measures confirmed today (10 September 2020) by Housing Secretary Robert Jenrick.
The government has changed the law to increase notice periods to 6 months meaning renters now served notice can stay in their homes over winter, with time to find alternative support or accommodation.
The only exceptions to this are the most egregious cases, including where tenants have demonstrated anti-social behaviour or committed fraud, and the landlord rightly would like to re-let their property to another tenant.
The Housing Secretary has also today confirmed that with coronavirus still posing a risk, if an area is in a local lockdown that includes a restriction on gathering in homes, evictions will not be enforced by bailiffs.
This support builds on the unprecedented package the government has put in place to help communities through the pandemic, including support for businesses to pay staff salaries and strengthening the welfare safety-net with a nearly £9.3 billion boost to the welfare system. This includes an extra £1 billion to increase Local Housing Allowance (LHA) rates so that they cover the lowest 30% of market rents, meaning we now spend £25 billion supporting households to meet the cost of rent in the private and social rented sectors.
For those renters who require additional support, there is an existing £180 million of government funding for Discretionary Housing Payments made available this year, an increase of £40 million from last year and which is for councils to distribute to support renters with housing costs.
We will keep these measures under constant review and our decisions will continue to be guided by the latest public health advice and support with housing costs may also be available for those on low incomes or who are out of work eligible for Universal Credit.
No landlord, including those who only rent out a single property, has had access to the courts since March, including to regain possession in cases where the tenant has broken the law. So it is right that landlords are able to access justice, alongside measure to protect the vulnerable. The government would like to thank landlords for their forbearance during this difficult time.
From 21 September courts will start to hear possession hearings again. When cases are heard again these will be subject to new court processes and procedures which the Judiciary have developed. These include:
There will also be a ‘winter truce’ on the enforcement of evictions, with no evictions permitted in England and Wales in the run up to and over Christmas except in the most serious circumstances, such as cases involving anti-social behaviour or domestic abuse. This will ensure vulnerable tenants are not forced from their homes at a time when public and local authorities may be dealing with the usual level of increased demand for services during this time. To achieve this, guidance will be issued to bailiffs that they should not enforce possession orders in the weeks of Christmas.
Housing Secretary Rt Hon Robert Jenrick MP said:
We have protected renters during the pandemic by banning evictions for 6 months – the longest eviction ban in the UK. To further support renters we have increased notice periods to 6 months, an unprecedented measure to help keep people in their homes over the winter months.
It’s right that we strike a balance between protecting vulnerable renters and ensuring landlords whose tenants have behaved in illegal or anti-social ways have access to justice. Our legislation means such cases will be subject to shorter notice periods and then prioritised through the judiciary’s new court processes.
The government has taken unprecedented action to support renters during the pandemic, preventing people getting into financial hardship and helping businesses to pay salaries.
The vast majority of landlords have shown understanding and leadership, taking action to support tenants despite facing hardship themselves. According to independent research, 87% of tenants have continued to pay full rent since the start of the pandemic, with a further 8% agreeing reduced fees with their landlords.
The government is committed to striking the right balance in the relationship between landlords and tenants and new guidance will be published before the stay on possession proceedings ends to help both understand their rights under the court system and the financial support available.
Restarting possession proceedings is an important step towards transitioning out of emergency measures and allowing the market to operate while ensuring people have appropriate access to justice.
The stay on possession proceedings was introduced at the end of March in response to the pandemic in order to protect public health. The stay was extended in June and was due to expire on 23 August 2020. On 21 August, this stay on proceedings was extended for a further month, bringing the suspension to a total of six months. No action to evict a tenant will proceed in the courts before 21 September 2020.
Where tenants do experience financial difficulties as a result of the pandemic, the government is clear that landlords and tenants should work together and exhaust all possible options – such as flexible payment plans which take into account a tenant’s individual circumstances – to ensure cases only end up in court as an absolute last resort.
We are very conscious of the pressure on landlords and do not want to exacerbate this. It is important to stress that tenants who are able to do so must continue to pay their rent.
We also understand that there are some cases where it is right that landlords should be able to start progressing cases quicker, because of the pressure they place on landlords, other tenants and local communities.
Therefore, notice periods for the most serious circumstances have been shortened. From 29 August, notice periods must be at least 4 weeks where over six months of rent is due (if less than 6 months is owed, then 6 months’ notice must be given).
Landlords and tenants affected by coronavirus and the eviction ban should contact their Local Authority as soon as possible to discuss the financial help and other support that may be available. The Local Authority’s ability to help will depend on the financial circumstances of individuals affected.
You can apply for the voucher from the end of September. In the meantime, you can find out what improvements can be made to your home and obtain quotes from certified tradespeople.
The government will provide a voucher worth up to £5,000 or £10,000 to help cover the cost of making energy efficient improvements to your home.
Improvements could include insulating your home to reduce your energy use or installing low-carbon heating to lower the amount of carbon dioxide your home produces.
You must redeem the voucher and ensure improvements are completed by 31 March 2021.
The government will provide a voucher that covers two-thirds of the cost of qualifying energy efficiency or low carbon heating improvements to your home. The maximum value of the voucher is £5,000.
If you are on a low income and receive certain benefits, you can receive a voucher covering all of the cost of the improvements. The maximum value of the voucher is £10,000.
The installer will request and receive payment from the government for the costs covered by the voucher.
To apply for the voucher, you must either:
Your property must be in England to be eligible for the scheme.
Landlords cannot apply for the low-income portion of the scheme.
New-build properties that have not previously been occupied are not eligible for the scheme.
The available measures are split into ‘primary’ and ‘secondary’ measures.
The voucher must be used to install at least 1 primary measure. This can be an insulation measure and/or a low carbon heating measure.
The following insulation measures are covered by the voucher:
The following low carbon heating measures are covered by the voucher:
Further information on these measures will be announced soon.
You cannot use the voucher to help pay for works that were carried out prior to the voucher being issued.
You cannot use the voucher to replace insulation or low carbon heating measures that are already installed in your home. However, you can use the voucher to ‘top up’ existing measures (for example, installing additional loft insulation up to the recommended level).
If you install at least 1 primary measure, your voucher can be used to help cover the cost of any of the following secondary measures:
The amount you get towards the cost of secondary measures cannot exceed the amount you get for primary measures.
ExampleA homeowner wants to install cavity wall insulation and receives a voucher worth £400 towards the work. They can receive a maximum of £400 more for secondary measures, such as replacing single glazed windows with double glazed windows.
There are certain items that are not covered by the voucher, including:
You should only enter into a commitment to carry out work once you have had confirmation that your voucher application has been accepted.
You must make sure the work is scheduled to be completed, and the voucher redeemed subject to its terms and conditions, by 31 March 2021.#
For further information, see the gov.uk website; https://www.gov.uk/guidance/apply-for-the-green-homes-grant-scheme
From today (29th August 2020), regulations come in requiring landlords and agents to give 6 months notice (in most cases) before regaining possession in England. New forms have been published on the gov.uk website (Form 3, form 6a and the notes to form 6a have been changed in line with new requirements on notice periods); https://www.gov.uk/guidance/assured-tenancy-forms
The new forms must be used from today (29th August 2020). The new regulations will not be applied retrospectively for any possession notices served on or before 28th August 2020. The new regulations will be in force until 31 March 2021.
IMPORTANT – The government have made concessions for landlords who need to serve notice to tenants who have committed anti social behaviour or have over 6 month rent arrears. These are:
Please read the gov.uk announcement below in full; https://www.gov.uk/government/news/government-has-changed-the-law-so-most-renters-have-a-6-month-notice-period
The government is continuing to help renters with an unprecedented package of support measures.
Legislation has now been introduced, so landlords must now give tenants 6 months’ notice before they can evict until March 2021, except in the most serious of cases, such as incidents of anti-social behaviour and domestic abuse perpetrators.
The stay on possession proceedings has been extended until 20 September, meaning that in total no tenant can have been legally evicted for 6 months at the height of the pandemic.
The package of support for renters includes the extension of notice periods and the extension to the stay on possession proceedings. For the most egregious cases, notice periods have returned to their pre-coronavirus levels, and landlords will be able to progress serious rent arrears cases more quickly.
These changes mean that from 29 August, landlords must provide at least 6 months’ notice period prior to seeking possession through the courts in most cases, including section 21 evictions and rent arrears under 6 months.
Notices served on and before 28 August are not affected by these changes, and must be at least 3 months.
The government is also helping landlords affected by the worst cases to seek possession; these are:
In addition, new court rules have been agreed, which will come into force on 20 September meaning landlords will need to set out in their claim any relevant information about a tenant’s circumstances, including information on the effect of the COVID-19 pandemic. Where this information is not provided, judges will have the ability to adjourn proceedings.
Secretary of State for Housing, Rt Hon Robert Jenrick MP said:
We have developed a package of support for renters to ensure they continue to be protected over winter. I have changed the law so that renters are protected by a 6 month notice period until March 2021.
No tenant will have been legally evicted for 6 months at the height of the pandemic as the stay on possession proceedings has been extended until 20 September. For the most egregious cases, for example those involving anti-social behaviour or domestic abuse perpetrators, notice periods have returned to their normal level, and landlords will be able to progress serious rent arrears cases more quickly.
These changes will support landlords to progress the priority cases while keeping the public safe over winter. We will keep these measures under review and decisions will continue to be guided by the latest public health advice.
The new legislation applies to both the private and social rented sectors in England, and to all new notices in relation to assured, assured shorthold, secure, flexible, introductory and demoted tenancies and those under the Rent Act 1977, but not to any notices issued before the legislation comes into force.
Courts will carefully prioritise the most egregious cases, including anti-social behaviour, fraud, and domestic abuse, ensuring landlords are able to progress the most serious cases, such as those involving anti-social behaviour and other crimes.
If a landlord made a claim to the court before 3 August, they must notify the Court and their tenant that they still intend to seek repossession before the case will proceed, including in section 21 cases.
More detailed guidance on using the courts and the new arrangements will be made available in advance of possession proceedings starting again.
We are conscious of the pressure on landlords during this difficult time and do not want to exacerbate this. Of course, it is important that tenants who are able to do so must continue to pay their rent.
The government has put in place an unprecedented support package to support tenants to pay their living costs, such as the Coronavirus Job Retention Scheme, £9.3 billion of additional support through the welfare system, and increasing the Local Housing Allowance rate to the 30th percentile.
We are committed to bringing forward the Renters Reform Bill to abolish section 21 and deliver a fairer and more effective rented sector in due course. However, such legislation must balance greater security of tenure with an assurance that landlords are able to recover their properties where they have valid reasons to do so.
We have been working closely with the judiciary through a Master of the Rolls led Working Group to finalise the arrangements on the prioritisation of cases, for when the stay on possession proceedings lifts from 20 September.
29 August, landlords must provide at least 6 months’ notice period prior to seeking possession through the courts in most cases, including section 21 evictions and rent arrears under 6 months. We have also extended the validity of a section 21 notice from 6 to 10 months to accommodate this change.
SWLA will be updating members stationery and forms in due course. If you are serving notice before then, please download the possession notice form straight from the gov.uk website.
The regulations can be read here; https://www.legislation.gov.uk/uksi/2020/914/contents/made
We eagerly await details from the government on how to apply for the Green Homes Grant vouchers which are due to go live at the end of September 2020. Here is what we know so far;
Available measures
The available measures are split into “primary” and “secondary” categories.
Households will need to install at least one of the primary measures below to qualify for funding.
Primary Measures
Insulation: Solid wall, cavity wall, under-floor, loft, flat roof, room in roof, park home.
Low carbon heat: Air source heat pump, ground source heat pump, solar thermal
“Top ups” are allowed (e.g. additional loft insulation up to the recommended level, solid wall insulation for other walls where a wall has been previously insulated), but replacements are not included.
So long as there is at least one primary measure in the package of works, households will also be able to install secondary measures. Secondary measures can only be subsidised up to the amount of subsidy provided for primary measures. (e.g. if a household receives £1,000 for primary measures, they can only receive a maximum of £1,000 towards secondary measures).
Secondary Measures
• Draught proofing
• Windows and doors: Double/triple glazing (where replacing single glazing), secondary glazing (in addition to single glazing), upgrading to energy efficient doors (where replacing doors installed prior to 2002).
• Heating controls and insulation: appliance thermostats, hot water tank thermostats, hot water tank insulation, smart heating controls, zone controls, delayed start thermostat, thermostatic radiator valves
For low-carbon heating to be installed, households will need to have adequate insulation (e.g. wall and loft, where applicable). These can be installed as part of a package – they do not have to already be in situ.
Eligibility
For the general scheme, the following properties are eligible:
• All owner-occupied homes (including long-leaseholders, shared ownership)
• Landlords of private rented sector domestic properties
• Landlords of social sector domestic properties (including LA owned homes)
• Park home owners (for residential sites including Gypsy and Traveller sites)
New-build domestic properties and non-domestic properties are not eligible.
For the low-income scheme, only owner-occupied properties and park homes are eligible.
Households receiving income-based or disability benefits would be eligible for a fully funded package of measures.
Eligibility for low-income scheme
You qualify for the Green Home Grants low-income scheme if you receive at least one of the following benefits:
• Income based Jobseekers allowance (JSA)
• Income based Employment & Support Allowance (ESA)
• Income Support (IS)
• Pension Guarantee Credit
• Working Tax Credit (WTC)
• Child Tax Credits (CTC)
• Universal Credit (UC)
• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Attendance Allowance
• Carer’s Allowance
• Severe Disablement Allowance
• Industrial Injuries Disablement Benefit
• Contribution based Jobseekers allowance (JSA)
• Contribution based Employment & Support Allowance (ESA)
• Housing benefit
Information from; https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/906544/ghg-additional-information.pdf
Read the following Which? article for further information; https://www.which.co.uk/news/2020/08/green-homes-grant-details-revealed-could-you-get-up-to-5000-home-insulation-vouchers/
Information from https://www.gov.uk/government/news/jenrick-extends-ban-on-evictions-and-notice-periods
Renters affected by coronavirus will continue to be protected after the government extended the ban on evictions for another 4 weeks, meaning in total no legal evictions will have taken place for 6 months, Housing Secretary Robert Jenrick has announced today (21 August 2020).
The government also intends to give tenants greater protection from eviction over the winter by requiring landlords to provide tenants with 6 months’ notice in all bar those cases raising other serious issues such as those involving anti-social behaviour and domestic abuse perpetrators, until at least the end of March.
The government will keep these measures under review with decisions guided by the latest public health advice.
When courts do resume eviction hearings they will carefully prioritise the most egregious cases, ensuring landlords are able to progress the most serious cases, such as those involving anti-social behaviour and other crimes, as well as where landlords have not received rent for over a year and would otherwise face unmanageable debts.
The government has taken unprecedented action to support renters during the pandemic, preventing people getting into financial hardship and helping businesses to pay salaries – meaning no tenants have been evicted since the start.
As a result, according to independent research, 87% of tenants have continued to pay full rent since the start of the pandemic, with a further 8% agreeing reduced fees with their landlords.
The vast majority of landlords have shown understanding and leadership, taking action to support tenants.
With coronavirus still posing an ongoing risk to public health, the government will continue to take action where necessary to further protect households in both the private and social rented sector are supported over winter, helping to keep them safe.
Today’s extension to the stay and 6 month notice periods will ensure those most at risk are protected. If tenants are unable to afford their rent we encourage them to speak to their landlord to agree a solution, and some households may decide to consider moving.
Government will continue to work with the judiciary and stakeholders to ensure that the courts are prepared for eviction cases to be heard safely.
Housing Secretary Robert Jenrick MP said:
I know this year has been challenging and all of us are still living with the effects of COVID-19. That is why today I am announcing a further 4 week ban on evictions, meaning no renters will have been evicted for 6 months.
I am also increasing protections for renters – 6 month notice periods must be given to tenants, supporting renters over winter.
However, it is right that the most egregious cases, for example those involving anti-social behaviour or domestic abuse perpetrators, begin to be heard in court again; and so when courts reopen, landlords will once again be able to progress these priority cases.
Case listing, including prioritisation, is a judicial function and we are working with the judiciary through the Master of the Rolls’ Working Group on possession to consider the categories of serious cases that would be prioritised when hearings resume. Further detail on those categories will be set out in due course and we will engage with key stakeholders on this.
Independent polling for the National Residential Landlords Association recently found that 87% of private tenants have paid their rent as normal throughout the pandemic so far. An additional 8% said that they had agreed a reduced rent, a rent-free period or made some other agreement with their landlord or letting agent.
The extension to the ban on evictions and prioritisation of the most serious case applies to courts in England and Wales
The intention to extend notice periods to 6 month applies to England only.
On 5 June the government announced that the suspension of housing possession cases in the courts had been extended by a further 2 months.
To support those on Universal Credit or Housing Benefit in the private rented sector, Local Housing Allowance rates have been set to the 30th percentile of rents in each area. For those who require additional support Discretionary Housing Payments are available.
As announced at the spending round for 2020/21 there is already £180 million in Discretionary Housing Payments for Local authorities to distribute for supporting renters with housing costs in the private and social rented sectors.
We remain committed to bringing forward reforms to provide greater security to tenants, but it is only right that this is balanced with an assurance that landlords are able to recover their properties where they have valid reasons to do so. This is vital to ensuring the future supply of good quality housing in the rented sector.
We will bring forward legislation in due course, once the urgencies of responding to the pandemic have passed, to deliver a better deal for renters and a fairer more effective rental market.
SWLA will await the changing legislation and will update our members once it’s announced.
This training will focus on an examination of the landlord’s repairing obligations, both in relation to disrepair claims and in relation to the new Homes(Fitness for Human Habitation) Act provisions. In addition they talk through the plans to reform residential lettings, with a focus on how landlords can obtain possession as and when Section 21 changes.
You will also receive information from the Councils Private Rented Sector Housing Officers about the new registration scheme, details of how to sign up and a certificate of attendance.
This training will be delivered in a webinar format:
Date: Wednesday 12th August 2020
Time: 4pm
Link: https://communications.ashfords.co.uk/9/627/compose-email/invite–free-training—the-repairs-revolution-and-beyond.asp?sid=blankform
Plymouth City Council is aware the majority of landlords working within the Private Rented Sector wish to provide safe, affordable and compliant properties, the Council thank them for their diligence and hard work. The legislative framework continues to change and grow, for example the introduction of electrical safety standards regulations, the Council will continue to improve standards by working with landlords.
There are occasions when enforcement needs to be undertaken, most recently additional powers have been provided to enable the use of civil penalties, (typically up to £30,000) for a range of offences. Community Connections issued its first civil penalty on 5th April 2019. Since then they have issued 38 civil penalties, amounting to approx £120.000. If you receive any penalty warning the first port of call would be the Council, contact them to discuss this issue further. An appeal can also be made through the court tribunal system, a more accessible, less formal, and more affordable way than the traditional prosecution hearing.
If you have any queries, or just wish to read more, information is available on Plymouth City Councils website, search for landlords.
We thought we’d remind you about some upcoming key dates and deadlines regarding the UK Coronavirus Job Retention Scheme, as it begins to wind down.
The scheme is now closed to new applicants and employers are able to bring back some employees to work part-time. For the period ending 30 June you need to submit your CJST claim by, tomorrow, 31 July 2020, which is the last date you can make those claims. You will also need to have made a claim at any point on or before 31 July 2020 to be able to make a claim for future months too.
Full details are in the Propertymark Government funding guide (page 11) and here are some other key dates to be aware of:
The Coronavirus Job Retention Scheme ends on 31 October 2020, meaning no employees can remain on furlough after this time.
Article from ARLA/Propertymark
The government has unveiled plans for the completion of the rollout of the Making Tax Digital (MTD) programme, with the scheme being incrementally extended from 2022.
Companies with turnover of more than £85,000 are currently required to file their quarterly VAT returns via the digital platform.
But from 1 April 2022, all VAT-registered firms must switch to MTD, regardless of the value of their sales.
The programme will be extended 12 months later to any individuals filing self-assessment income tax returns for annual business or property income in excess of £10,000. HMRC say ‘Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
The government says that providing notice of the extension of MTD now will give businesses and individuals, including the self-employed and buy-to-let landlords, enough time to plan for the switch.
Plans to make landlords submit tax returns digitally will provide a huge administration challenge, according to Katharine Arthur, partner and head of private client at accountancy firm haysmacintyre.
She said: “The announcement is particularly significant, proposing a huge administrative challenge once Making Tax Digital becomes mandatory for Income Tax.
“With reporting required quarterly as opposed to annually, it is likely that buy-to-let landlords, small business owners and the self-employed, who already have limited resources, will be most affected by this change.”
Making Tax Digital was originally announced by the now former chancellor George Osborne in the 2015 Autumn Statement, with a view to digitising the tax system with the self-employed, small businesses and unincorporated landlords needing to keep digital records and use software to update HMRC quarterly.
Arthur added: “With reporting required quarterly as opposed to annually, it is likely that buy-to-let landlords, small business owners and the self-employed, who already have limited resources, will be most affected by this change.”
Article from Landlord Today https://www.landlordtoday.co.uk/breaking-news/2020/7/btl-landlords-will-be-among-most-affected-by-tax-change-says-accountancy-firm
https://www.gov.uk/guidance/follow-the-rules-for-making-tax-digital-for-income-tax
Reminder – SWLA members can apply for a Trade Point Card and receive 5% off all Trade Point items (raising to 10% depending on previous spend). Contact the SWLA office for details on how to apply.
Information and article from The Sheriff’s Office; https://thesheriffsoffice.com/articles/new-measures-for-possession-proceedings-1
In preparation for the lifting of the moratorium on residential evictions on 23rd August, the Government has announced a new statutory instrument covering possession proceedings – The Civil Procedure (Amendment No. 4) (Coronavirus) Rules 2020 2020 No. 751 (L. 17) – which comes into force on 23rd August.
In preparation for the backlog of cases, and to protect vulnerable tenants, the Government has announced further measures once courts do reopen.
Court hearings are likely to need to be spread out to avoid bunching, so the court will fix a date either on or after issue, and there will be a suspension of the usual 8-week period between the issue of a claim form and the actual hearing itself.
It must be noted that the above procedures must be carried out so that a court hearing can go ahead, any landlord who has been waiting for a hearing will certainly not wish to further delay their case being heard. We therefore suggest that you gather the evidence and information required so you do not experience a further delay to gaining possession of your, or your client’s, property.
This instrument inserts into Part 55 of the CPR a new rule which provides the basis for a new, temporary Practice Direction 55C supplementing Part 55 (“PD55C”). PD55C (which is available on the Ministry of Justice website.
The claimant had been a tenant for many years, with no problems and good references. She is a single mother with a disability, who was employed. She was searching for a new tenancy and contacted the defendant letting agents, only to receive an email stating that for years the agents “have had a policy of not accepting housing benefit tenants”.
The claimant, with Shelter acting, then brought the present claim for sex discrimination and disability discrimination under sections 19 and 29 Equality Act 2010 and for a declaration in the County Court.
Usually the defendant agents settle out of court in similar circumstances. But for once the defendant agents did not settle. However, it appears that they had a change of mind, possibly on the advice of counsel, as what was apparently a case management hearing was turned into a final hearing at the request of both parties and, as the order records, terms were agreed by the parties. However, as well as ordering the agent to pay damages of £3500 and costs, the District Judge also went on to make a declaration as sought and to give reasons.
The declaration is that;
The Defendant’s former policy of rejecting tenancy applications because the applicant is in receipt of Housing Benefit was unlawfully indirectly discriminatory on the grounds of sex and disability contrary to sections 19 and 29 of the Equality Act 2010.
The reasons record that:
A ‘No DSS policy’ puts or would put women at a particular disadvantage. 53.1% of female single-adult households renting privately claim Housing Benefit compared to 34% of male single- adult households. When households with couples are included, 18.8% of women renting privately claim Housing Benefit compared to 12.4% of men. This means that, in the private rented sector, using whichever of the two analyses set out above, women are more than 1.5 times as likely to rely on Housing Benefit, and thus be excluded by a No DSS policy, than men.
And in relation to disability:
A ‘No DSS policy’ puts or would put persons who are disabled at a particular disadvantage. 44.6% of households who claim DLA or SDA claim Housing Benefit compared to 15.1% of households who do not claim DLA or SDA. This means that, in the private rented sector, disabled households are almost three times as likely to rely on Housing Benefit, and thus be excluded by a ‘No DSS policy’, than non- disabled households.
A policy of ‘No DSS’ would therefore have an increased impact on women and on people with a disability. This amounted to indirect discrimination under section 19 Equality Act 2010.
It is, we must note, a county court judgment, and so not binding on other courts. However, in the absence of a defence under s.19(2)(d) Equality Act 2010, that the discriminatory practice is “a proportionate means of achieving a legitimate aim”, it would seem likely that other courts would reach the same conclusion. No such defence was maintained in this claim (and for letting agents at least, it is hard to imagine what one might look like). I do not think it would be a defence for a letting agent to say the policy was at the request of the landlord(s).
What it means is that a blanket policy of refusing potential tenants who claim housing benefit is unlawful. What it does not mean is that potential tenants who claim housing benefit can’t be refused.
In principle, the same should apply to landlords, as well as letting agents. However, it may be that some landlords may have a s.19(2)(d) defence, for example, that their mortgage agreement has a condition of no letting to housing benefit claimants. Most of the bigger lenders have changed their policies on this, but there will still be some lenders and historic mortgages with those conditions.
What this doesn’t mean, alas, is that housing will be any more affordable. It should mean that housing benefit claimants have the opportunity to be considered for a tenancy on their own circumstances, rather than rejected straight away under a blanket policy.
Thank to Rose Arnall of Shelter for the copy of the Order and Reasons. She has been pursuing this issue for years.
Article from Nearly Legal; https://nearlylegal.co.uk/2020/07/discrimination-and-no-dss/?utm_source=mailpoet&utm_medium=email&utm_campaign=new-on-nearly-legal-newsletter-total-new-posts_1
The order and reasons can be read here; http://431bj62hscf91kqmgj258yg6-wpengine.netdna-ssl.com/wp-content/uploads/2020/07/20.07.02-Redacted-Court-Order.pdf
The summer statement provided a much welcome boost for buy-to-let landlords who stand to benefit from the stamp duty holiday.
The levy has been scrapped immediately for all homes under £500,000, to kick-start the stalled housing market and pick up the flagging economy.
Rishi Sunak said the move would benefit nine in ten home buyers, saving £4,500 on the average purchase.
But with the threshold raised, purchasers, including buy-to-let landlords, acquiring a property for less than £500,000 will save up to £15,000 on their total tax bill.
However, the 3% surcharge for additional homes, including buy-to-let properties, still applies on top of the revised standard rates, so purchases of homes valued up to £500,000 will attract a 3% stamp duty bill.
Sara Macallum, senior partner at Boodle Hatfield, said: “The 3% surcharge will still sit on top of these new bands – so for buyers of second homes, they will pay 3% SDLT up to £500,000, as opposed to 3% up to £125k, 5% from £125k up to £250k, and 8% from £250k to £500k.”
“Overall, it works out as an SDLT saving of £15k for both normal and additional rate taxpayers. Taking the example of a first-time buyer of an apartment for £750k, they will pay SDLT of £12,500 instead of £27,500. If on the other hand this were someone buying a second home, they would pay SDLT of £35,000 instead of £50,000.
“Companies will also benefit from these changes where they are not subject to the flat 15% rate.”
Article abridged from Landlord Today;
https://www.landlordtoday.co.uk/breaking-news/2020/7/btl-landlords-to-benefit-from-stamp-duty-cut
Homeowners in England will be able to get up to £5,000 worth of vouchers to make energy-saving improvements to their properties from September 2020.
The government will pay at least two thirds of the cost of some energy-saving home improvements. Chancellor Rishi Sunak announced details of the £2bn Green Homes Grant in the recent economic update statement.
Homeowners and landlords will be able to apply for the vouchers from September 2020. The announcement is part of a £3bn investment in green technology to cut carbon emissions.
The vouchers will be for homeowners and are expected to cover energy-saving measures including boilers, double glazing, energy-efficient doors, energy-saving light bulbs and insulation. The vouchers will pay for at least two thirds of eligible measures up to the value of £5,000. For example, if you wanted to fit insulation worth £4,000 in your home, you would pay £1,320 and the government would give you a voucher for the remaining £2,680.
Those on the lowest incomes wouldn’t have to pay anything and could get vouchers of up to £10,000.
You’ll need to complete an online application for one of the recommended home improvements, get a quote from a listed supplier and have that quote approved before getting the voucher to spend. The Government has said that homeowners will be able to apply for the grants on the Simple Energy Advice website from September.
Some commentators have warned that the funds allocated for Green Homes Grants could run out very quickly, as happened with the 2014 Green Deal Home Improvement Fund.
Article abridged from Which; https://www.which.co.uk/news/2020/07/could-you-get-up-to-5000-home-insulation-vouchers/
See the latest government update;
Iain Maitland represented SWLA at the virtual Covid19 impact on Cornwall Private Rented Sector (PRS) meeting held on 7th July 2020.
This initial meeting included facts and discussions around:
– PRS Shrinkage and Market Shift
– Empty Properties
– Houses in Multiple Occupation
– National Government Interventions, such as introduction of mortgage holidays, the furlough scheme, assistance for the self employed etc.
We will update you further with more information as and when future meetings are held.
Free signage pack available! See the following link for further information;
https://www.visitplymouth.co.uk/dbimgs/A%20Plymouth%20Guide%20to%20Reopening%20Safely.pdf
The housing sector has come together to support landlords and tenants facing rent arrears as a result of the Coronavirus outbreak. A guide has been published offering practical ways in which arrears can be addressed.
Landlords and tenants facing arrears can use the guidance, it’s a brilliant resource that contains numerous options and support information.
https://news.rla.org.uk/wp-content/uploads/2020/07/rent-arrears-management-guidance.pdf
BCHA are a social housing landlord and registered housing provider delivering services in Plymouth, who are looking to lease more residential properties in Plymouth.
BCHA are interested in leasing a range of 2 /3 /4 or 5 bedroom houses to use as family homes
Benefits to the owner:
Please contact Nick Richards if you are interested in further discussions.
Nick Richards Property Development Officer
BCHA, St Swithun’s House, 21 Christchurch Road, Bournemouth BH1 3NS
Tel No: 01202 410538 Mobile: 07971614990
The government has confirmed that courts will begin to hear possession cases from 24th August – providing greater certainty for the rental market.
The suspension of possession cases began on 27th March and was put in place to give tenants reassurance and security during the Coronavirus pandemic.
Of course, landlords need to ensure that they provide a Gas Safety Certificate to a tenant before occupation. However, what if this certificate is given late? Does that mean that a landlord can never serve a Section 21 notice?
A Court of Appeal decision has been made; all information in this article is from Landlord Blog – https://www.landlordlawblog.co.uk/2020/06/18/failing-serve-gas-safety-certificate-tenants-move-fatal-s21-claims-says-court-appeal/
This post is written by housing barrister Justin Bates who led for the successful landlord in this case.
In Trecarrell House Ltd v Rouncefield the Court of Appeal has held (by 2 to 1) that a landlord who has failed to provide his tenant with a gas safety certificate before the tenant enters into occupation is not prevented from using s.21, Housing Act 1988 to recover possession so long as he remedies that omission before service of the notice.
The Gas Safety (Installation and Use) Regulations 1998 impose various obligations on residential landlords. These include a requirement to carry out an annual gas safety inspection (r.36(3)); to give a tenant a copy of a gas safety certificate within 28 days of any such inspection (reg.36(6)(a)); and, to give the current certificate to any tenant prior to occupation (reg.36(6)(b)).
Section 21, Housing Act 1988 creates a “no fault / notice only” ground for possession against an assured shorthold tenant. A notice may not be given at a time when a landlord is in breach of a prescribed requirement (s.21A, 1988 Act). The prescribed requirement include reg.36(6) of the Gas Safety (Installation and Use) Regulations 1998, save that
… the requirement… is limited to the requirement on a landlord to give a copy of the relevant record to the tenant and the 28 day period for compliance with that requirement does not apply
(Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015).
In February 2017, Ms Rouncefield became the assured shorthold tenant of a flat of which Trecarrel House Ltd was her landlord. The landlord did not give her a gas safety certificate before she entered into occupation but, in November 2017, provided her with a copy of a certificate dated January 2017.
In May 2018, the landlord served notice under s.21, Housing Act 1988 and issued possession proceedings. The tenant defended the claim on the basis that because no gas safety certificate had been provided prior to her taking occupation, the landlord was not entitled to serve notice under s.21.
The Circuit Judge held that a failure to provide a gas safety certificate before the tenancy commenced was not capable of being remedied and dismissed the claim for possession.
The Court of Appeal granted permission to appeal. The tenant served a Respondents’ Notice taking a new issue. It was said that there had been a further gas safety check carried out in February 2018 and that no gas safety certificate had been provided in respect of that test; the failure to do so was said to amount to a breach of a prescribed requirement and so to provide a further reason why the s.21 notice was invalid. The landlord contended that the certificate
had been given before the s.21 notice was served.
By a majority, the Court of Appeal held that the correct construction of s.21A and the 2015 Regulations was that the time period for compliance with both Reg.36(6)(a) and (b) was disapplied.
Thus, a s.21 notice could be given so long as the landlord had – at any time before service of the s.21 notice – given the tenant a copy of the certificate which was in force before they entered into occupation and a copy of any further certificate which related to a subsequent inspection.
It was therefore immaterial that the January 2017 certificate had not been given to the tenant until November 2017. There was, however, a factual dispute as to
whether the 2018 certificate had been provided and that was remitted for consideration by the county court.
In simple terms, this is good news for landlords. A failure to provide the original gas safety certificate prior to the tenant going into occupation is not fatal to a s.21 claim so long as it is provided before the s.21 notice is served.
Likewise, the failure to give the annual test certificate is not fatal so long as it too is given before the s.21 notice is served. Given the huge number of gas safety tests that have been missed as a result of the current public health crisis, that is likely to come as a sharp relief.
There are, however, two difficult questions which are left open by the judgment.
The first is what the position is if the landlord has not done a gas safety check (and so does not have a gas safety certificate) for the period before the tenant went into occupation. How (if at all) can that be remedied? What if a check was done but the record is now not available?
The second is similar. What happens if the landlord fails to do the annual gas safety inspection so that there is no certificate to provide? This is probably less important. There is recognition in the judgment that the duty to do an annual safety inspection (reg.36(3)) is not a prescribed requirement for the purposes of s.21A, Housing Act 1988.
There is, however, something rather unattractive about a landlord seeking possession in circumstances where he has unlawfully failed to do a check (and thus provide a certificate) and whether that amounts to (impermissibly) relying on your own wrongdoing.
Tuesday 30th June 2020, 2pm
Hosted by Paul Shamplina, Landlord Action and Fran Miller, Bristol City Council.
Sign up here; https://register.gotowebinar.com/register/6499132275425335053
Paul Shamplina has 28 years’ experience in the legal field helping landlords; and set up Landlord Action in 1999 . Paul believes passionately in the rights of landlords and campaigns to improve the standards in the private rented sector. Well known in the media, Paul regular presents on Channel Five’s hit series ‘Nightmare Tenants, Slum Landlords’ Paul will be sharing his knowledge, experience and expertise in his webinar at a time when landlords face an uncertain future.
Paul, recently awarded ‘Best Seminar Speaker 2019 at the National Landlord Investment Show Awards, is generously giving you the opportunity to keep up to date and will be covering:
The extension announced by the Housing Secretary on 5 June 2020 takes the moratorium on evictions to a total of 5 months to ensure that renters continue to have certainty and security.
https://www.gov.uk/government/news/ban-on-evictions-extended-by-2-months-to-further-protect-renters
https://www.gov.uk/guidance/apply-for-the-coronavirus-local-authority-discretionary-grants-fund
What is the purpose of the Discretionary Business Grants?
The discretionary fund will support businesses who have fixed costs and have been affected by COVID-19. The intention of the grant is to support small businesses with high premises-related costs that fell outside of the original grant scheme.
HMO landlords have fixed costs (Council Tax, water rates, utility bills). HMO landlords who have had a COVID-19 related drop in rental income may wish to consider applying for the discretionary grant. The applications are assessed on a points basis. Applications opened on 01 June 2020 so if you intend on applying, do not delay. Grants are likely to be awarded only in exceptional circumstances so you will need to prove that you have had a drop in rental income.
This grant is aimed at small businesses with ongoing fixed property-related costs. Local authorities are to to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates. But local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities.
Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.
For further information and to make an application, visit your Local Authority website.