Tag: Landlord

Posted on

Landlords ARE working people, and the Government needs to know that

Landlords ARE working people, and the Government needs to know that

Keir Starmer’s suggestion that landlords are not ‘working people’ is mistaken, says NRLA Chief Executive Ben Beadle. 

It’s depressingly familiar.

The tired rhetoric of the fat cat landlord living a life of luxury, paid for by their hardworking tenants.

We’ve heard it time and time again, but it was disappointing to hear it from our Prime Minister.

For those of you who have missed it, I will bring you up to speed.

In an interview this week Sir Keir Starmer told Sky News he would not consider someone who made income from property ‘a working person’.

Like you I was shocked. Like you I was incensed.

We just need to look at the Government’s own statistics to see why.

Official data shows that 30 per cent of landlords are employed full time, with a further 10 per cent working part-time; 28 per cent are self-employed in some way, while 35 per cent are retired and are likely to rely on their rental income for their pension.

It couldn’t be more categoric. We are working.

We are also not the ‘fat cats’ some elements of the media would have us believe, with almost 70% basic rate taxpayers. Read that figure again. 70%.

In my role as chief executive of the NRLA I travel the length and breadth of England and Wales, meeting our members and hearing your stories.

Our members come from all walks of life, but what unites you is a strong work ethic and a determination to do the right thing by your tenants.

Over my last four years at the helm, challenging stereotypes and preconceptions when it comes to landlords and the private rented sector has been one of my key objectives and slowly, slowly I felt we were turning the tide.

It is ill-thought through comments like this, that make me question that.

But since coming to power Labour has had much to say about the great work landlords are doing in providing vital homes to rent.

Indeed, Housing Secretary Angela Rayner, introducing the Renters’ Rights Bill, acknowledged the ‘important role of landlords, most of whom provide good-quality homes for their tenants’.

Being a landlord isn’t easy. It’s hard work.

Millions of families look to our sector for a home, satisfaction rates are high, and demand is growing.

Rather than stoking misconceptions, the Government needs to focus on the key challenge in the rental market, namely a lack of homes to rent to meet ever growing demand.

More information

  • If you are a landlord who wants to do it right, why not join us at our annual conference in Birmingham next month. The NRLA’s annual Landlord Conference, on November 6 will offer a unique opportunity for property professionals to here from experts from across the industry, including keynote speakers Andy Burnham and James Caan . Tickets for the event, which will be held at Birmingham’s NEC, are selling fast, so to find out more and book your place, click here.
  • In special recognition of our hard working landlords we’re offering £15 OFF membership. The offer can be redeemed this weekend only and is available to members and non members via our Refer a Friend scheme using promotion code WORKINGPEOPLE. If you successfully refer a friend during this period they will receive £15 off membership and you will get £15 off your next renewal.

Original Post: https://www.nrla.org.uk

Posted on

How buy-to-let landlords selling up can recoup capital gains tax AND boost their pension in one move

Jumping ship? Some landlords may be looking to get out of the market as CGT hikes loom

With the Autumn Budget looming large in the minds of landlords, some have decided to sell up in order to avoid higher costs now and a possible capital gains tax raid in future.

The fear among buy-to-let owners is that Chancellor Rachel Reeves, will massively hike CGT in the Budget, as part of her bid to fill her claimed ‘£22billion black hole’ in the UK’s finances.

Currently, higher-rate taxpayer landlords would pay 24 per cent on gains they make on their properties, but this could increase to 40 per cent if the Chancellor decided to bring capital gains tax in line with the rate of income tax.

Regardless of a potential CGT raid, more buy-to-let landlords are already selling up. However, many will be left wondering how to save or invest the proceeds after the sale of their property is completed.

Paying into a pension could prove to be a lucrative move, as it could effectively recoup money lost to capital gains tax and boost their retirement pot.

Putting cash into their pension would fit with the investing strategy of many landlords, who use property investments as a nest egg for retirement.

Pension tax relief means landlords could claw back some money lost to capital gains tax. They can contribute as much as the £60,000 annual allowance this year to a pension and potentially more if they have previous years to carry forward.

Steven Cameron, pensions director at Aegon, said: ‘There’s widespread speculation that the Autumn Budget could bring increases to the rates of capital gains tax and possible changes to pensions taxation, such as the loss of higher or additional rate tax relief on personal contributions.

‘The threat of more penal rates of CGT is reported to be prompting many landlords to consider selling rental properties.

‘This is reshaping the longstanding debate between investing in property versus a pension, particularly relevant to those people who might regard second properties as their retirement saving.’

‘Those considering selling a rental property might consider investing the proceeds in a pension or stocks and shares Isa.’

Landlords are taking note of the speculation on capital gains tax but it is pressure elsewhere that is prompting many to sell.

Higher mortgage rates, less generous mortgage interest tax relief, greater regulation, the cost of energy efficiency improvements and other increased bills are encouraging more to cash in gains and move on.

There are other reasons landlords may be looking to sell, however.  These include higher mortgage rates and the Renters’ Rights Bill which will make it harder to evict tenants without a good reason.

Should you reinvest your cash into a pension?

As a buy-to-let owner, it’s unlikely that you could put your property on the market now and sell it before the Budget on 30 October.

But those that are already in the process may find themselves quids in before that date rolls around.

Capital gains tax is charged on annual profits on assets of more than £3,000. As it stands, landlords who are in the process of selling will face 24 per cent CGT if they are higher rate or additional rate taxpayers.

Basic rate taxpayers face capital gains tax at 18 per cent but gains are added to their other income to decide the rate – meaning they could be pushed into the higher rate bracket.

Landlords could consider paying the proceeds of their sale into a self-invested personal pension, known as a Sipp, as a way to claw back their CGT loss on the sale, and provide a boost to their pension in one fell swoop.

Pension contributions for most people automatically qualify for basic rate tax relief from the Government.

In order to take savers back to the position they were in before 20 per cent tax, contributions get a 25 per cent uplift – turning £80 paid in back into £100 pre-tax, for example.

Higher rate and additional rate taxpayers can claim the rest of their tax relief through self-assessment, delivering 40 per cent and 45 per cent tax relief on contributions.

The annual allowance – and need to be a high earner

There is a pension annual allowance that caps contributions eligible for tax relief at £60,000 per year, so for those making big profits it might take a number of years to contribute the funds from the property sale.

However, savers can carry forward unused allowances from up to three years previously, provided they were part of a registered pension scheme during those years. This would include a workplace pension scheme.

People can also only get tax relief on private pension contributions worth up to 100 per cent of their relevant annual earnings.

Neither rent or capital gain on a property will count as annual earnings for this, meaning that to pay the maximum into a pension, someone would generally need to earn £60,000 from employment or self-employment.

Those who have previously flexibly withdrawn money from a pension may have a lower £10,000 annual allowance.

Very high earners with adjusted incomes of more than £260,000 have their annual allowance tapered down.

Savers should also realise that withdrawals from their pension scheme will be taxed beyond the first 25 per cent, which is tax-free.

Cameron explained: ‘The pension annual allowance is currently £60,000, with the potential to carry forward unused allowances from the past three years.

‘In some circumstances, making a personal pension contribution, could also result in some or all of the capital gain from the rental property sale being taxed at the basic rate of CGT, 18 per cent, rather than the higher rate 24 per cent.

‘Paying into a pension means you can’t access your funds, currently until age 55 but rising to 57 in 2028. However, you could qualify at present for tax relief at your highest marginal income tax rate.’

According to data from the Institute for Fiscal Studies, between 30 and 40 per cent of private sector employees, equating to between 5 and 7million people, are on course to see their workplace pension fail to meet the requirements for a minimum standard of living.

Diverting your money into a pension also gives you access to a tax-friendly wrapper which will allow your investments to grow without facing further capital gains, dividend and income tax.

Landlords making big gains and considering paying into a pension would be wise to speak to a specialist tax or financial adviser, who can help explain their options and make sure things are done correctly.

 

What CGT changes could mean for property investors
Capital gain Current basic If aligned Impact Current higher If aligned Impact Current additional If aligned Impact
Gain 18% 20% 24% 40% 24% 45%
£10,000 £1,260 £1,400 £140 £1,680 £2,800 £1,120 £1,680 £3,150 £1,470
£20,000 £3,060 £3,400 £340 £4,080 £6,800 £2,720 £4,080 £7,650 £3,570
£30,000 £4,860 £5,400 £540 £6,480 £10,800 £4,320 £6,480 £12,150 £5,670
Source: Quilter 

What if capital gains tax is hiked in the Budget?

It looks highly likely that capital gains tax rates will be raised in the Budget.

It has been suggested that Rachel Reeves could equalise CGT with income tax and change the higher rate to 40 per cent, and the additional rate to 45 per cent. Basic rate taxpayers could see a lesser increase to 20 per cent.

Of course, if any Budget changes do come in, they might not be as extensive as landlords fear – and they might not come into force immediately.

Economists have warned against raising capital gains tax rates to as high as income tax rates without bringing in indexation, so that only gains above inflation are taxed.

If capital gains tax was raised to income tax levels and pension tax relief remained the same, landlords could potentially recoup their CGT by paying profits into a pension.

Landlords should also consider making use of their Isa allowance in order to benefit from another tax wrapper.

With an annual Isa limit of £20,000, this combined with paying £60,000 into a pension could allow themto place up to £80,000 of proceeds into tax-efficient accounts, without having carried forward any pension allowances.

Unlike pensions, Cameron said, ‘Isas offer tax-incentivised savings without locking your money away.

 

Selling out: Landlords purchased just 10% of all homes sold during the first half of this year, the lowest share seen since 2010 according to the estate agent Hamptons
Selling out: Landlords purchased just 10% of all homes sold during the first half of this year, the lowest share seen since 2010 according to the estate agent Hamptons

 

How many landlords are selling up?

Figures from Rightmove show that 18 per cent of homes currently up for sale were previously available to rent. This compares with just eight per cent in 2010.

In London, this figure rises to almost a third of homes having previously been available to rent. In the North East and Scotland, 19 per cent were previously rented.

Meanwhile, data from Hamptons reveals that the number of homes being bought by landlords has dropped to a 14-year low.

Original Post from https://www.thisismoney.co.uk

Posted on

Landlords ‘forced to sell up’ over Government’s energy upgrade plans

Rock and a hard place: Many landlords may struggle to achieve an EPC rating of C or above, and may decide to sell up rather than face potentially expensive upfront renovation costs
  • New rules mean warmer homes for tenants, but upgrades may be expensive

Landlords may choose to sell their properties due to the cost of meeting Government energy efficiency targets for rented homes, experts believe.

The Government confirmed this week that all rented properties in England must have an Energy Performance Certificate (EPC) of ‘C’ or above by 2030.

The requirement was part of the Government’s election manifesto, and was repeated by energy security secretary Ed Miliband at this week’s Labour Party conference. The plan will be consulted on later this year.

Experts say many landlords may be forced to sell properties rather than meet the new EPC rules, unless the Government offers extra support.

 

Rock and a hard place: Many landlords may struggle to achieve an EPC rating of C or above, and may decide to sell up rather than face potentially expensive upfront renovation costs
Rock and a hard place: Many landlords may struggle to achieve an EPC rating of C or above, and may decide to sell up rather than face potentially expensive upfront renovation costs

 

A spokesperson for the National Residential Landlords Association (NRLA) said: ‘Some landlords may find that they are unable to finance the improvements needed, particularly in areas with lower property values.

‘However our past research has shown that over 80 per cent of landlords had either made or planned to make energy efficiency improvements, with most using or planning to use their own savings or rental profits to fund the upgrades.’

A spokesperson for the British Landlords Association said: ‘Yes, some landlords are already selling.’

The cost of upgrading rented properties to an EPC rating of C and above can cost thousands of pounds.

In theory this should also improve the value of the property, but it does mean landlords having to shoulder an upfront cost. For some properties, especially older ones, the cost rises substantially.

NRLA figures show that solid wall insulation can cost more than £20,000, especially in homes built without cavity walls.

Landlords with more modern properties will typically pay £9,000 to meet the new EPC standards, Government figures show.

However, an NRLA spokesperson added: ‘The costs of these changes vary greatly depending on the type of property.

‘It is also important to take into consideration how landlords are impacted by the region their properties are based in. Our research in 2021 found that in some local authority areas of the North and Midlands, the estimated costs of improving home energy are around 25 per cent of property values.

‘By contrast, in affluent parts of London and the South East the cost of retrofitting with heat pumps represents less than 2 per cent of overall property value.’

It may not be possible for landlords to meet the 2030 deadline, either.

The NRLA spokesperson said: ‘If there is clarity at an early stage on what’s required, sufficient tradespeople, and a financial package that means landlords can plan upgrades, 2030 may be possible.

‘But equally, if the expectation is to retrofit every rental property not currently EPC C or above by 2030 there is an enormous amount of work to do in a very limited period of time.

‘Otherwise, landlords may struggle to afford the high cost of home improvements, and may miss the 2030 target altogether, reducing the number of rental homes available and pushing up rents.’

Asked if landlords would meet the deadline, the BLA spokesperson simply said: ‘No.’

 

Counting the cost: Some of the upgrades required to make properties more energy efficient can be expensive, such as replacing the boiler or installing a heat pump
Counting the cost: Some of the upgrades required to make properties more energy efficient can be expensive, such as replacing the boiler or installing a heat pump

 

There is also a chance that rents might have to rise to cover the cost of energy upgrade work.

The NRLA said: ‘Upgrading to an EPC C will require a higher level of investment – and the ability of landlords to fund this themselves will vary, particularly given the regional variability in their options to leverage finance from their property values.

‘Some landlords may have to increase rents to match increased maintenance costs, but this will depend largely on the landlord’s individual circumstances and the type of property.’

The BLA said that rents would not rise for EPC reasons, but only as they are rising already due to many landlords already leaving the letting sector.

Finding up-to-date figures on the number of rented properties in England that are below EPC band C is tricky.

There are around 4.5 million rented homes at EPC ratings of D or below in the UK, according to data analysts Outra in 2023 – not just England, where the 2030 rule applies.

The last Government figures show that 8 million properties in England were below band C – or 31 per cent of the total 25.2million properties – but this dates back to the 2021 census and is for all homes, not just rented ones.

Original Post from https://www.thisismoney.co.uk/

Posted on

Buy-to-let landlords head for the exit: Estate agents say many are already selling up – as another tax hike looms

The number of properties available to rent across the UK
  • Estate agents and new figures reveal that buy-to-let may be losing its appeal

Buy-to-let landlords are heading for the exit, says estate agents, as higher mortgage rates, tightened regulation and unfavourable tax changes encourage more to sell up.

There have been 1.53million property sales made by landlords since the start of 2016, according to property firm Hamptons, compared to 1.22million purchases during that time.

This comes ahead of another potential tax hike for property investors, with rumours that Labour will raise capital gains tax in its October Budget.

 

The number of properties available to rent across the UK
Down: The number of properties available to rent across the UK is down by a quarter since 2019, according to consultancy firm TwentyCi

 

The rush to the exit adds up to a net loss of more than 300,000 rental homes over the past eight years.

Some investment companies are filling the void, with pension funds and insurance companies partnering with house builders and developers to build large-scale rental home developments, known in the industry as build-to-rent.

However, according to the property firm, Savills, there have only been 106,000 build-to-rent homes completed since June 2016 – not nearly enough to fill the gap left behind by landlords.

The number of properties available to rent across the UK is down by a quarter since 2019, according to consultancy firm TwentyCi.

It says available properties to rent are at the lowest level since it began recording data 15 years ago.

While the data isn’t yet showing an uptick this year in landlords selling up, members of the Royal Institute of Chartered Surveyors (Rics) are suggesting this is very much the case.

Robert John Newton-Howes of Yorkshire Surveyors Limited in Huddersfield says: ‘There is increasing evidence of landlords exiting the market, which accounts for a large proportion of new sales instructions.’

Martin Allen of Elgars estate agents in Canterbury, Kent adds: ‘Yet more landlords wanting to regain possession to sell or selling upon tenants leaving rather than reletting.’

Howard Davis, managing director of Howard estate agents says they are also seeing a similar trend playing out in Bristol.

‘A steady increase of landlords selling all or part of their portfolios,’ added Davis in the latest Rics Survey.

Some Rics members point to the Government’s plans for a Renters Rights Bill to end Section 21 ‘no-fault’ evictions as a final straw for some landlords.

The end of no-fault evictions is likely to be introduced alongside other parts of the previous Government’s Renters Reform Bill.

This will probably include giving tenants the ability to challenge rent increases and the ending of bidding wars.

It will introduce the same decent homes standard that applies in the social housing sector and also ensure landlords don’t discriminate against tenants in receipt of housing benefits or with pets or children.

 

Fewer landlords
Fewer landlords? Most letting agents across the UK are reporting fewer landlord instructions according to the latest market survey from Rics

John Chappell of Chappell & Co Surveyors Ltd in Skegness in Lincolnshire says: ‘Several more landlords [are] withdrawing from the sector to sell up, especially since seeing rumours of the new Government’s plans for further strengthening of tenant’s rights.

‘No self-respecting professional supports poor housing or poor landlords, but this has the potential to cause a supply shortage crisis.’

However, not all estate agents agree that landlords are exiting the sector.

Marc von Grundherr, director of Benham and Reeves estate agents says: ‘We’re simply not seeing the exodus of landlords that is so often reported, as despite such changes, buy-to-let investment remains an extremely fruitful endeavour.

 

Marc Von Grundherr
Marc Von Grundherr, director at Benhams & Reeves estate agents says he’s not seeing the exodus of landlords that is sometimes reported

 

‘In fact, landlords are currently benefiting from some very favourable yields due to the fact that we’ve seen some of the strongest rental growth in modern history and so their investments are stacking up much better.’

Aneisha Beveridge of Hamptons points out that private landlords sold 50,380 homes across the UK in the first half of the year – the lowest number since 2013.

That compares to 39,940 buy-to-let purchases in the first half of the year, which is the lowest number since Hamptons started recording the figures in 2010.

So while fewer are clearly buying, fewer are also selling, according to this data.

‘Our view is that the majority of investors who were thinking of selling have already done so over the last few years,’ says Beveridge.

‘These sales were primarily driven by a harsher tax and regulatory regime alongside more landlords cashing in to fund their retirement.

‘The bigger challenge for the private rental sector is the lack of appetite for new investment.

‘This is where the prospect of tighter regulations in the future, alongside reduced profitability due to the tax backdrop and high mortgage rates, is hurting the most.

‘And ultimately, it’s tenants who are bearing the cost with rents continuing to outpace inflation.’

London landlords heading for the exit

London has typically been viewed as a safe haven by property investors. However, it is perhaps no longer looking as attractive as it once did.

After seeing bumper returns, both before and after the 2008 crash, London property prices have flatlined for almost a decade.

In the five years between June 2011 and June 2016, the average London investor enjoyed house price gains of 85 per cent with values in the capital rising from £253,000 to £468,000.

However, in the years since then, the average investor in London will have seen values rise by less than 12 per cent – equating to less than 1.5 per cent annual growth each year.

 

Aneisha Beveridge, head of research at Hamptons, says that a shortage of landlords is leading to rents rising
Aneisha Beveridge, head of research at Hamptons, says that a shortage of landlords is leading to rents rising

 

And while prices have stagnated, landlords in the capital are now having to weather higher interest rates, increased regulation, tax hikes – and now fear further tax and regulation is on its way under the Labour Government.

There has been a dramatic rise in London rental properties being sold, according to figures from TwentyCi.

The analytics company revealed that 22 per cent of all newly-listed homes for sale last month in Inner London were found to have been available to rent at some point in the last decade, marking a 10-year high.

In July last year, when mortgage rates reached a recent peak, only 15.6 per cent of newly-listed homes for sale had previously been available to rent.

And in July 2019, the last normal year before the pandemic, only 12.9 per cent of listed homes had been previously rented homes.

Colin Bradshaw, chief executive officer of TwentyCi said: ‘Aside from mortgage increases, landlords have growing fears around a possible rise in Capital Gains Tax and compliance demands for energy efficiencies.

‘Overall, the rental sector has become much more expensive and unpredictable for landlords over the last decade.’

Losing its appeal: Increasing numbers of landlords appear to be trying to sell up in the capital
Losing its appeal: Increasing numbers of landlords appear to be trying to sell up in the capital

 

Allan Fuller of Allan Fuller Estate Agents in Putney adds: ‘Supply is still outstripping supply, in fact its getting worse because landlords are anticipating legislation that will be too biased towards tenants and are already selling.’

However, Arya Salari, head of Knightsbridge lettings at Knight Frank says that many landlords are trying their luck on the sales market, failing to find a buyer, and resorting to re-letting their properties.

‘We are seeing some landlords wishing to sell. This is predominantly due to these clients having mortgages with recently increased rates.

‘However, the reality is once they speak to sales agents to understand realistic values and activity levels, they either decide to re-let immediately or after a few months come back to rentals.’

Energy efficiency regulation on the way

The Labour Government is also planning to introduce a new minimum EPC requirement for landlords to meet.

At present, landlords need to ensure their property has a minimum EPC rating of E in order to let it, unless they have an exemption.

The EPC is a rating scheme which bands properties between A and G, with an A rating being the most energy efficient and G the least efficient.

Under Labour, it is expected that landlords will need to upgrade their properties to a C rating by 2030.

An estimated 2.7 million rental properties across the UK will need to be retrofitted with some form of energy efficiency measure, to hit these new EPC targets by 2030, according to research by property technology provider Reapit.

Based on historic retrofitting costs from the English Housing Survey, adjusted for inflation, it estimates landlords could face a collective bill of £24billion to bring those properties up to the new standard. This equates to over £10,000 per landlord.

 

More regulation: Landlords may need to upgrade their properties to an EPC C rating by 2030
More regulation: Landlords may need to upgrade their properties to an EPC C rating by 2030

 

Hamptons warns that if landlords’ energy improvements continue at their current rate, it will take until 2042 for all rented homes to achieve an EPC A-C rating.

Aneisha Beveridge of Hamptons, says: ‘Successive changes to proposed energy efficiency rules have shifted the goalposts for landlords, some of whom face costs which can run into tens of thousands of pounds.

‘While a requirement for all rental homes to achieve an EPC A-C rating by 2030 is achievable at a stretch, landlords need adequate time and resources to meet it. It is essential landlords receive complete clarity on this target this year.’

What will CGT changes mean for landlords?

Landlords are now facing another potential threat thanks to the purported £20billion blackhole in the nation’s finances.

It is no secret that the chancellor of the exchequer, Rachel Reeves, is looking for ways to address this issue with many fearing tax hikes are incoming.

One such tax hike on the table could be on Capital Gains Tax (CGT). This is the tax paid on the gain made during the time someone owns an asset.

At present, higher-rate taxpayer landlords face a 24 per cent CGT tax rate on any gain they make when selling property.

There are fears that CGT could be equalised with income tax, which could mean CGT rates rise to 40 per cent for higher rate taxpayers or even 45 per cent for additional rate taxpayers.

 

What CGT changes could mean for property investors
Capital gain Current basic If aligned Impact Current higher If aligned Impact Current additional If aligned Impact
Gain 18% 20% 24% 40% 24% 45%
£10,000 £1,260 £1,400 £140 £1,680 £2,800 £1,120 £1,680 £3,150 £1,470
£20,000 £3,060 £3,400 £340 £4,080 £6,800 £2,720 £4,080 £7,650 £3,570
£30,000 £4,860 £5,400 £540 £6,480 £10,800 £4,320 £6,480 £12,150 £5,670
Source: Quilter 

 

Marc von Grundherr, director of Benham and Reeves estate agents says: ‘The potential equalising of CGT is, of course, a concern for many landlords.

‘If the Labour Government was to follow through with it, it could make for a significant increase in the tax paid by the average landlord when the time did come for them to exit the sector.’

However, rather than have landlords fleeing for the exit, a CGT rise may well stop landlords from selling altogether.

‘Buy-to-let investment is certainly one that most take with a very long-term view and they expect ups and downs, but generally speaking, the returns are consistently good despite these bumps in the road,’ adds Marc von Grundherr.

‘What’s more, with CGT currently not chargeable on death , we may see more landlords stick it out for good in order to pass on their portfolio after they’ve passed without being penalised via CGT.’

Original Post from https://www.thisismoney.co.uk/

Posted on

Landlord loses long-running ‘battle of the staircase’ with council

Landlord loses long-running 'battle of the staircase' with council

An HMO landlord has lost his appeal against an improvement notice ordering him to update a ‘paddle staircase’ in a case that highlights the surprising lengths some councils will go to enforce licencing rules.

A paddle staircase (pictured) is one that uses special ‘paddle’ steps that enable the use of a steep staircase at more extreme angles than would normally be possible.

Benjamin Williams told a First Tier Property Tribunal that he had made sufficient changes to the staircase leading to the third storey of his property in Roehampton Vale, London, however, a judge ruled that his efforts weren’t enough to get the notice quashed.

The landlord was first handed the notice by Wandsworth Council in December 2022 – on the basis that there was a Category 1 hazard relating to the risk of a fall on the stairs – but contested this and agreed to take steps to rectify the issue in March 2023, within six months.

Measures included either replacing the paddle steps or removing a step to create a compliant gradient, adding a grip rail and underboarding the staircase with fire resistant plasterboard.

However, an inspection found that the paddle staircase was still at a steep gradient with uneven treads.

The professional landlord, who has over 50 properites within his portfolio, explained that the staircase had been in situ since 2009 when he received his first HMO licence and that he had worked with a qualified fire safety consultant following being handed the notice.

Wandsworth Council disagreed that the works sufficiently reduced the risk to tenants and said the landlord appeared only to be considering the fire safety element of the hazard whereas its main concern was falls. If it had been changed to a traditional style staircase it would have been satisfied.

The authority demanded costs of £619 but the judge refused. He said: “The suggestion within those conditions that a paddle staircase might be acceptable was misleading and led to the applicant expending money in trying to mitigate the risks posed by the paddle staircase when in reality the only acceptable solution was to replace it with a traditional staircase.”

Original Post from landlordzone.co.uk

Posted on

Landlord fined for failing to provide documents to council

Landlord fined for failing to provide documents to council
The landlord of a suspected HMO has been fined for not producing tenancy agreements and bank statements relating to tenants.Daria Smith, the co-owner of a property in Swindon, pleaded guilty to not complying with a Section 235 Notice, which is a breach of Section 236 (1) of the Housing Act 2004.Smith was sent a notice demanding that she produce tenancy agreements and bank statements for any occupiers of her property.
The notice was sent after a prospective buyer of the home contacted Swindon council stating the property was occupied by six tenants as a licensable HMO, without such a licence being place.An investigating officer from the council then visited unannounced and spoke with one of the tenants who said there were six people living there and he wasn’t related to any of them.Witness statements were taken from two other occupiers. Both statements confirmed six people lived in the property and they were not related to one another.The property has six bedrooms with a shared kitchen and bathroom and is therefore it is believed mandatory HMO licensing applies.The notices to provide tenancy agreements and bank statements were not complied with by the landlord and, shortly after the Section 235 notice was served, the tenants were evicted or left the property.Smith stated the property had not been rented out as an HMO and had been rented to family and friends.After failing to attend two Police and Criminal Evidence Act interviews with the council, notices were served on both registered owners but the case was only pursued against her as the rent is shown as being transferred to her and witness statements refer to Daria Smith as the landlord.

After pleading guilty at Swindon Magistrates Court to failing to comply with the Section 235 Notice, she was £300 and ordered her to pay £4,022 in court costs.