Council Takes Control of Landlord’s Property

In a highly unusual move, Waltham Forest Council served an Interim Management Order on a landlord last week after he refused to make it safe for the 15 tenants living there. Four people were discovered living in beds in a shed in the garden and a further 12 people were living inside the property, which had been divided into five separate bedsits (contrary to planning regulations).

Rogue Landlord
The landlord was raking in more than £4k per month in rent, but unfortunately he wasn’t spending any of the cash on essential repairs to the house and he hadn’t bothered paying any Council Tax for four years. Not surprisingly, council housing officials were not prepared to ignore such a blatant disregard for the system.

Essential Repairs to be Carried Out
Tenants living at the property will be allowed to continue staying there. Instead of paying rent to the landlord, however, they will pay rent directly to Waltham Forest Council. In the meantime, council housing officials will employ a contractor make essential building repairs and deduct the cost of repairs from any rent received.

“It’s obviously a last resort for us to have to take control of a property away from its owner, but we were given no choice due to this landlord’s poor attitude and lack of concern for the safety of his tenants,” said Councillor Limbajee.

Council officials have now changed the locks on the property. They say they hope the landlord will come forward to settle his debts and sort out the problems with his property.

Landlord Legal Fight against Government Tax Increase Fails

Landlords have lost their legal bid to force a judicial review of the government’s plans to cut tax relief for landlords.

The new changes come into effect next year when tax relief on mortgage interest is gradually reduced to a flat rate of 20%. This, as well as an extra 3% stamp duty in buy to let property purchases, has been described as “unfair, undemocratic and underhanded” by landlords.

Cherie Blair’s Legal Challenge
A campaign group, championed by Cherie Blair, decided to launch a legal challenge, but Timothy Brennan QC said the claim was “unarguable” and that the case was not in the public interest. Mr Justice Dingemans refused to allow a judicial review to go ahead on the basis that “It would be a miserable spectacle to watch a case that is bound to fail.”

Axe the Tenant Tax Group
Steve Bolton and Chris Cooper, founding members of the Axe the Tenant Tax group, were not happy with the court’s decision.

“It has completely missed the opportunity to protect tenants, landlords and the housing market from the disastrous consequences of Section 24,” they said after the verdict.

NLA Verdict
Richard Lambert, CEO of the National Landlords Association, added:

“This decision is ultimately disappointing not just for landlords, but for the tenants who will see their rents rise as a consequence of the changes to landlord taxation.”

Although he conceded that: “While we have never been convinced that there was a solid enough legal case to overturn George Osborne’s decision, we hoped the courts would be prepared at least to listen to the arguments.”

Wandsworth Council Scraps Landlord Licensing

Wandsworth Council has rejected plans to introduce a controversial landlord licensing scheme, much to the delight of the Residential Landlords Association, who were vehemently opposed.

Fewer Complaints about the PRS
The council says there has been a notable reduction in complaints about homes in the private rental sector and most tenants are more than happy with the service received from landlords. As a result, they cannot justify the introduction of a landlord licensing scheme. Instead, they have come up with a ten-point plan to deal with the issue of rogue landlords. These plans will make use of existing legislation designed to help regulate the private rental sector.

Council Action List
Wandsworth Council’s ‘Action list’ includes prioritising housing enforcement in the areas where there are the highest number of issues, refocussing resources on high priority complaints, and setting up targeted action days in the borough.

The RLA is pleased to see the council looking at alternative ways to tackle problems within the private rental sector.

“It is really good to see a council considering a range of options around landlord regulation rather than defaulting to licensing,” says David Smith from the RLA.

“The Housing Act 2004 offers a range of flexible powers to Councils and this range will shortly be widened with changes in the Housing and Planning Act. Local Housing Authorities should take a risk-based approach and focus their powers on directly addressing the real problems in the Private Rented Sector. It is good to see that Wandsworth has done this.”

Top London Hot Spots for Buy to Let Landlords

London is not the most profitable place for landlords to invest. Although there are plenty of tenants looking for properties, house prices are too high, which impacts greatly on rental yields. Despite this, one London estate agent believes there are a few buy to let hotspots for quick off the mark landlords.

Ilford
Ilford will be well connected once Crossrail arrives in 2017, so it is an up-and-coming area for commuters. Property prices are still affordable in Ilford, so rental yields are around the 5.5% mark.

Hounslow and Greenford
Hounslow is close to Heathrow and is well connected, thanks to the M4 running nearby. Greenford is also attractive to renters, as it too benefits from good transport connections and now the Night Tube. Both offer a rental yield of 5.3%.

Croydon and Wood Green
Croydon is a nice little hotspot for buy to let landlords. It is also a lot more affordable than central London and you can expect to enjoy rental yields of around 5%. Wood Green is on the Crossrail 2 map, so it is primed for regeneration. Again, rental yields are said to be 5% here.

Whitechapel and Forest Gate
Whitechapel is one of the few central London locations that offer a decent return for landlords. Crossrail has put Whitechapel on the map and many people are moving here. Forest Gate has also seen a significant boost thanks to Crossrail, yet it is still very affordable. Both offer rental yields of 4.8%.

Other areas worth considering are West Drayton, King’s Cross and Acton.

Rapper Invokes Landlord’s Wrath

Even celebrity tenants can’t escape the wrath of an angry landlord. Kylie Jenner’s famous on/off rapper boyfriend is facing a spell in jail when he returns from his idyllic break in the Turks & Caicos Islands, where he and Kylie are celebrating the youngest Jenner sister’s 19th birthday.

Malibu Rental Trashed
Tyga’s rental woes date back to 2011, when he was accused of trashing a rental property in Malibu. The landlord claims Tyga installed a stripper pole in the master bedroom (without permission), disconnected the property’s security system, and caused damage to hardwood flooring and a shower. He says he is owed $480k in damages as a result.

Tyga Misses his Day in Court
The rapper was served with a lawsuit in July after he failed to pay the landlord for the damages caused. He was due to appear in court, but he left the country instead. The landlord’s lawyer, Boris Treyzon, spoke to People Magazine:

“Tuesday was Tyga’s day to appear in court, and he didn’t show up. We requested the court to issue a bench warrant. The court agreed with us that Tyga’s actions have been not what society demands of him, so they issued a bench warrant. Now, if he comes in contact with law enforcement, they will likely detain him and keep him detained until he posts bond.”

Tyga gifted Kylie Jenner a Mercedes Maybach, which breaches the terms of the lawsuit, so the car is likely to be claimed back upon his return to the U.S., which could prove to be embarrassing.

Landlords Use Airbnb to Evade Legal Obligations says RLA

Landlords are increasingly using popular short term letting website Airbnb to advertise their properties as short-term holiday lets – thus avoiding their legal responsibilities. Research carried out by the Residential Landlords Association found that 61% of London property lets were for 90 days or more. These landlords are falling foul of the law as short-term lets can be no longer than 90 days per calendar year.

Airbnb No Longer Used as a Casual Letting Website
41% of landlords on Airbnb had multiple property listings, which indicates the website is maturing from a casual letting portal into a more commercialised venture used by professional landlords.

Landlords and Tenants Abuse System
As a result, the RLA fears many tenants renting properties advertised via Airbnb are not being protected. There is also a concern that tenants are using the website to sub-let properties without permission from their landlord.

“London more than anywhere else in the country is in desperate need of more homes to rent and to buy,” says David Smith, Policy Director at the RLA.

“Given the pressures faced in the capital it is important that properties advertised as being available for more than 90 days a year are genuine holiday lets with appropriate planning permission. Otherwise, as well as taking rental stock off the market for those looking for somewhere to live, they are also putting tenants in a vulnerable position without all the protections offered by a tenancy agreement.”

The RLA is calling on the government to improve the policing of such sites to ensure they are not being abused.

The New Heir to Britain’s Largest Property Portfolio

The sixth Duke of Westminster passed away from a heart attack. According to press reports, the duke was the third richest person in the UK and the 68th richest person in the world. Conservative estimates say he is worth around £9 billion, the majority of which will now pass to his son and heir, Hugh Grosvenor.

Prime Property in Central London
The duke had many business interests, but one of the most interesting to us is his vast property portfolio. The family owns a significant slice of Belgravia, one of the most expensive parts of London. He also owns thousands of acres in Scotland and Spain.

The Grosvenor Property firm was formed in the 17th century to manage a very large portfolio of properties in London. Today, it is widely regarded to be the biggest property management company in the UK, at least by value of its assets.

Duke Owns More Property than the Queen
Interestingly, the Duke of Westminster owns more property than the Queen – he owns 0.22% of land in the UK compared to 0.03% in the Queen’s private ownership. Included in the Duke of Westminster’s property portfolio are Eaton Estate, the family seat just outside Chester (the estate encompasses three villages); Abbeystead Estate in Lancashire; and Reay Forest in north-west Sutherland. The Duke also owns 300 acres in Mayfair and Belgravia, which includes Grosvenor Square, Eccleston Place and Elizabeth Street.

The new Duke of Westminster is now a very wealthy young man.

Landlord uses USP for Aberdeenshire Rental

Pokémon Go is the latest craze to hit the gaming world. One landlord has taken advantage of the interest in Pokémon Go by listing his rental flat as a Pokémon Go gym.

Pokémon Go Gym
The landlord placed an advert on Gumtree in the hope that he would be able to find new tenants for his one-bed flat in Aberdeen. The flat is just down the street from a church, which also happens to be a Pokémon Go hotspot and gym, so he added this important fact to his listing.

“I did it as a laugh really thinking that it might get me a few more hits on Gumtree, and it has actually,” he told the local press.

“There’s a converted church up the road and if you sit down in the living room you can get access to the gym, you don’t even have to leave your house. There was somebody last night that texted me specifically saying they’d like to see the flat with the Pokémon gym. We’ve set up an appointment. I was just looking for something to make the property stand out a bit more. It seems to have done the trick. I’ve had four times as many hits on Gumtree from the previous advert I put up for the flat, just by putting Pokémon in the title.”

Gotta Catch Them All!
So if you want to attract new tenants, check whether your property is close to a Pokémon Go hotspot – and if it is, you could be on to a good thing!

17 Tenants Squashed into a 3-Bed House

Brent council officers found 17 men living in a 3-bed home in London, which had no central heating and no hot water. The rooms were damp and piled high with grimy mattresses, the bathroom walls were plastered with cardboard, and the backyard was full of old mattresses and rubbish.

Met Officers Join House Raid
A previous raid on the property had been thwarted when council officers were denied access, so this time they took the police along as back-up. Investigations uncovered a scheme whereby the tenants all paid rent to one person at the house, who then passed on the official rent to the landlord.

Unacceptable Living Conditions
“Having to live with 16 other people in these cramped conditions is unacceptable,” said Councillor Harbi Farah from Brent Council.

“We are talking about people’s lives and no one deserves to spend theirs in a grimy, overcrowded house with no hot water or heating.”

Officers from the council’s housing department are in the midst of cracking down on landlords who run unlicensed properties.

“We are in the process of identifying and taking enforcement action against unlicensed properties and I’m happy to see actions including the raid last week, taken against landlords who do not comply with the law.

“Licensing is good for everyone in Brent. It drives up standards in the private sector and ensures a good standard of living for our residents, something we are committed to providing.”

Immigration officers were also present, just in case there were illegal immigrants living in the property.

Landlord Crams 28 Tenants into a Two-Storey House

A London landlord sought to take advantage of the housing shortage by squeezing 28 tenants into an unlicensed two-storey house in Stoke Newington. When officers raided the property early one morning, they were shocked to discover that each of the property’s bedrooms contained two bunk beds to maximise space.

Squalid Conditions in an Unlicensed HMO
Conditions in the property were described as “squalid” and the house only had one kitchen and one bathroom for all 28 tenants, which must have proven a challenge at busy times of the day. The landlord had also ignored basic fire safety legislation, as there were no fire alarms in the property. In addition, he had also carried out an illegal loft conversion to create extra living space.

Landlord Fined £20k
The landlord was prosecuted for managing an unlicensed HMO. Thames Magistrates Court fined him £20,000.

Councillor Philip Glanville, Cabinet Minister for Housing at Hackney Council, made this comment after the successful resolution of the case:

“The lack of any basic fire safety at this jam-packed property put lives at risk, and this maximum fine serves as a warning that we won’t stand by when we see unsafe conditions in Hackney’s homes.

“We’re determined to drive up standards for private renters in Hackney, and we won’t hesitate to take enforcement action and press for the strongest penalties for landlords who flout the rules.

“Those who seek to take advantage of London’s housing crisis for personal profit have no place in our borough.”