Can anyone provide any evidence that lenders have refused a mortgage application in an area where the property is licenseable and the reason for the refusal is the licensing scheme please?
EDITORS NOTE...
Southwark Council have just published their proposals for additional and selective licensing. The consultation papers and response form can be found at http://www.southwark.gov.uk/talkrent.
The proposal...
Please feel free to submit any evidence you like. You might also be clear about what offences I have committed with regard to PRS licensing in Southwark. Please be exact.
For everyone else I have left Southwark, entirely by agreement, when the work I was contracted to do was complete. I am very pleased to see that the proposal was approved by the Council recently
On my own behalf therefore I have to say that I think the proposal was a good one, it was widely and properly consulted and will, I think, have a positive effect over time. If other legislation overtakes it, well that is something we can't predict.
Discounting the less rational elements on this site and the comparisons to Albanian or Soviet dictators, which to be honest did cause a smile. There are a core of competent landlords we engaged with who can see what the objectives are and accept that the proposal addressed these as well as current legislation allowed.
As an example I cite the small areas included in Selective Licensing proposal. This clearly predated the rule change and was a direct result of our objectives, not political dogma or 'empire building'.
Most rational observers could see that we responded to the comments received in consultation and many of these were incorporated in the final proposal.
Quite a lot of the comments here are made by people who simply haven't read the papers or are unable to overcome their own prejudices enough to see both sides. There are more viewpoints than that of the amateur landlord.
Any landlord who can't see that this sector will become more heavily regulated is burying their head in the sand. The answer is to become engaged and steer proposals to the best possible conclusion as the NLA have done very well.
I have to say that having had close contact with all sides of the debate over the last two years, I think the future is clearer guidance for landlords to help them comply with current legislation and I am constantly amazed how many people are prepared to commit vast sums of their own money in to a business they do not understand at all.
On balance I think the market needs a more distant investment vehicle that effectively allows the average investor to be in the sector without having unreasonable costs or having to do the actual management.... Read More
I think you need to do two things. Firstly get some advice from a solicitor who is genuinely expert in leasehold matters, the average high street hack doesn't have the required experience.
I'd also suggest you advise the other freeholders what you want to do. Obviously the issue has come up before so it won't be a total surprise.
One of the problems might be that a dissenting freeholder will seek compensation for the loss of the storage in the attic. They might have a valid claim, depending on lease terms, that will at the least delay your project.
The storage space has a value to everyone entitled to use it and you will probably have to pay that value to the other owners if they can prove a right to use it.... Read More
Your contractual relationship with the tenant is over so you are under no obligation to do anything for the ex tenant.
However the tenant may have some reasonable justification for the request, in which case it is good manners to provide a copy if you have one. You would be justified in making a charge to cover your expenses. I'd get the cash before handing over the document.
It's possible the ex tenant is assembling references for a letting or mortgage, however it's their own fault for losing the AST so why shouldn't they pay for a new copy.... Read More
I have to say that if you were to spend a couple of hours combing through the DCLG announcements on the PRS released in the last couple of weeks you won't be any happier.
I have posted a few times here over the last 18 months that the sector faces greater regulation and involvement with Goverment. The profile of the sector is increasing and complaining about it is not going to change things.
In some ways the PRS is the victim of its own success, if more people live in the PRS than the Social sector then that is going to become an influential lobby. You may hate Generation Rent but they are increasingly well organised and vocal representing tenants.
It can't continue as an effectively unregulated industry and I mean effective regulation because there is a lot of legislation already existing that is not evenly enforced.
The profile of some of the key problems like overcowding, poor management & maintenance and the conduct of a small number of landlords has an increasingly well researched public health implication.
Goverment is becoming aware that it is spending substantial sums treating symptoms caused by poor PRS housing.
It may be difficult to believe but I am 100% behind the landlord representative organisations and accreditation, however the organisations voices are reduced by very limited membership.
I do think that blindly opposing everything is a waste of time. Making a fuss about smoke detectors just alienates the average observer who probably thinks they are a good thing. On the other hand I'd be worried about a right to sublet but my concern would be that the danger is that landlords control of the property would be reduced and therefore the effectiveness of management compromised..... Read More
Not all downside though, DCLG announced today 440 thousand free smoke alarms and 40 thousand free CO detentors available to landlords through the local fire service.
I'd assume that these are the battery type.... Read More
The EPC has a validity of 10 years and you must have one and make it available to prospective tenants or purchasers before marketing your property.
If you substantially change the property, it's heating or insulation the old EPC is invalid and you will need another one to let or sell a property.
It is an offence to let a property without an EPC and you could be fined £200 per instance. This means that if you have five rooms let seperately the fine is up to £1000. Having said that the enforcement is patchy at best.
In your case I would say that if your current tenant stays in residence past the expiry of the current EPC you will not need a replacement till you relet.... Read More
OK then I refer you to the maps in our licensing proposal which indicate the incidence of ASB.
I'm sorry but the idea that the property market in Southwark would be blighted or even affected by licensing is ludicrous. All across the borough there is substantial investment in all sorts of property regeneration and particularly residential. Both rents and housing prices have been growing strongly and demand substantially outstrips supply.
If I were interested in property investment I would specifically be selecting the worst (and therefore cheapest) properties in areas where there is high and increasing demand. There is clear evidence that areas that have for many years been seen as run down are now regenerating and both commercial and residential property is improving.
If Savills rate Southwark as one of the best residential investment returns in the UK then perhaps I might take their analysis over yours.... Read More
The old tests for selective licensing were lack of demand and ASB linked to high density of PRS occupation.
So in applying that to the real world I think that each LA area is different. In rural or very sub urban areas it would seem that it would be a challenge to make a case that ASB and PRS tenure could occur at a high density across the LA area.
I think that changes as you move into metropolitan areas where you might have an LA which has a problem with ASB that is property related and a high density of PRS occupation spread across the area. Whilst I don't know the borough well I think Newham might be a good example because there is a fairly even spread of rental values without peaks and troughs ( If I have done Newham any disservice I apologise). Therefore a borough wide designation is justified.
Contrast this with Southwark where there is an enormous variation in rental values and the incidence of property related ASB. As part of our licensing case we identify ASB hotspots, therefore there must also be cold spots too where ASB is less than the average. The Housing Act requires us to demonstrate a link between ASB incidence and PRS density.
We have taken that a little further and discounted areas where there is high PRS density at higher rents, because the ASB incidence is lower. That is why we have proposed a very small area for selective licensing.
Before statute became markedly involved in the regulation of property transaction in the 20th century the whole lot was governed by common law and case law.
Therefore agricultural tenancies tended to be quarterly with rents payable on quarter days, commercial tenancies with whatever the parties agreed and residential tenancies either for a term certain ( a number of weeks or months) or periodic weekly, monthly or quarterly until either side gave notice.
It was usual for a weekly or monthly tenancy to have a similar notice period to the rent or have a term in the agreement to vary that.
The terms of the AST are certain in that the court will always interpret the agreement to comply with the act regardless of what is or is not written in the agreement, provided the letting has the character of a tenancy ( residential, quiet enjoyment, etc) So you can include any terms or conditions you like in an AST but if they are not reasonable and compliant with the explicit or usual implied terms in an AST they are unenforceable.
In this case, though it seems to have worked out for the landlord in the end, the landlord needs to think carefully about holding an unwilling tenant to the exact notice terms. You may have the law behind you in contract terms but end up losing out because it would have been more sensible to be pragmatic and let a departing tenant go.... Read More
Whilst the comparison to an Albanian dictator was obscure, I'm sure everyone had to google it like me, inaccurate and in the end somewhat amusing it hardly takes the debate forward.
Because I disagree with you and am working on a proposal you dislike does not allow you to draw conclusions about me personally. I'm not aware that we have ever met and those of you who have been to meetings at Southwark will be hard pressed to detect the world view that you are trying to construct.
We have a duty to act fairly however the duty is owed to society in general and not landlords in particular. My intention here is to discuss the proposal from Southwark,not licensing in general though clearly the Regas case has a bearing because it is current and may have an effect on our proposal.... Read More
Please can you explain on what grounds or under what law you would take on Newham's licensing scheme ?
Mr Regas' call for resignations is not really very realistic, it's not very likely that a Councillor would take this call seriously when he can prove that 80% of the people who responded support the scheme.
The case adds up to a loss for Enfield but only changes the requirements for consultation, it does not damage Licensing as a power delegated to LA's.... Read More
12:36 PM, 17th August 2015, About 9 years ago
Jakub,
Please feel free to submit any evidence you like. You might also be clear about what offences I have committed with regard to PRS licensing in Southwark. Please be exact.
For everyone else I have left Southwark, entirely by agreement, when the work I was contracted to do was complete. I am very pleased to see that the proposal was approved by the Council recently
On my own behalf therefore I have to say that I think the proposal was a good one, it was widely and properly consulted and will, I think, have a positive effect over time. If other legislation overtakes it, well that is something we can't predict.
Discounting the less rational elements on this site and the comparisons to Albanian or Soviet dictators, which to be honest did cause a smile. There are a core of competent landlords we engaged with who can see what the objectives are and accept that the proposal addressed these as well as current legislation allowed.
As an example I cite the small areas included in Selective Licensing proposal. This clearly predated the rule change and was a direct result of our objectives, not political dogma or 'empire building'.
Most rational observers could see that we responded to the comments received in consultation and many of these were incorporated in the final proposal.
Quite a lot of the comments here are made by people who simply haven't read the papers or are unable to overcome their own prejudices enough to see both sides. There are more viewpoints than that of the amateur landlord.
Any landlord who can't see that this sector will become more heavily regulated is burying their head in the sand. The answer is to become engaged and steer proposals to the best possible conclusion as the NLA have done very well.
I have to say that having had close contact with all sides of the debate over the last two years, I think the future is clearer guidance for landlords to help them comply with current legislation and I am constantly amazed how many people are prepared to commit vast sums of their own money in to a business they do not understand at all.
On balance I think the market needs a more distant investment vehicle that effectively allows the average investor to be in the sector without having unreasonable costs or having to do the actual management.... Read More
11:13 AM, 4th June 2015, About 10 years ago
Hi Dianne,
I think you need to do two things. Firstly get some advice from a solicitor who is genuinely expert in leasehold matters, the average high street hack doesn't have the required experience.
I'd also suggest you advise the other freeholders what you want to do. Obviously the issue has come up before so it won't be a total surprise.
One of the problems might be that a dissenting freeholder will seek compensation for the loss of the storage in the attic. They might have a valid claim, depending on lease terms, that will at the least delay your project.
The storage space has a value to everyone entitled to use it and you will probably have to pay that value to the other owners if they can prove a right to use it.... Read More
14:49 PM, 21st May 2015, About 10 years ago
Hi Paul,
Your contractual relationship with the tenant is over so you are under no obligation to do anything for the ex tenant.
However the tenant may have some reasonable justification for the request, in which case it is good manners to provide a copy if you have one. You would be justified in making a charge to cover your expenses. I'd get the cash before handing over the document.
It's possible the ex tenant is assembling references for a letting or mortgage, however it's their own fault for losing the AST so why shouldn't they pay for a new copy.... Read More
16:03 PM, 19th March 2015, About 10 years ago
Hi Mark,
I have to say that if you were to spend a couple of hours combing through the DCLG announcements on the PRS released in the last couple of weeks you won't be any happier.
I have posted a few times here over the last 18 months that the sector faces greater regulation and involvement with Goverment. The profile of the sector is increasing and complaining about it is not going to change things.
In some ways the PRS is the victim of its own success, if more people live in the PRS than the Social sector then that is going to become an influential lobby. You may hate Generation Rent but they are increasingly well organised and vocal representing tenants.
It can't continue as an effectively unregulated industry and I mean effective regulation because there is a lot of legislation already existing that is not evenly enforced.
The profile of some of the key problems like overcowding, poor management & maintenance and the conduct of a small number of landlords has an increasingly well researched public health implication.
Goverment is becoming aware that it is spending substantial sums treating symptoms caused by poor PRS housing.
It may be difficult to believe but I am 100% behind the landlord representative organisations and accreditation, however the organisations voices are reduced by very limited membership.
I do think that blindly opposing everything is a waste of time. Making a fuss about smoke detectors just alienates the average observer who probably thinks they are a good thing. On the other hand I'd be worried about a right to sublet but my concern would be that the danger is that landlords control of the property would be reduced and therefore the effectiveness of management compromised..... Read More
15:02 PM, 19th March 2015, About 10 years ago
Not all downside though, DCLG announced today 440 thousand free smoke alarms and 40 thousand free CO detentors available to landlords through the local fire service.
I'd assume that these are the battery type.... Read More
14:47 PM, 19th March 2015, About 10 years ago
Hi Mike,
The EPC has a validity of 10 years and you must have one and make it available to prospective tenants or purchasers before marketing your property.
If you substantially change the property, it's heating or insulation the old EPC is invalid and you will need another one to let or sell a property.
It is an offence to let a property without an EPC and you could be fined £200 per instance. This means that if you have five rooms let seperately the fine is up to £1000. Having said that the enforcement is patchy at best.
In your case I would say that if your current tenant stays in residence past the expiry of the current EPC you will not need a replacement till you relet.... Read More
17:07 PM, 17th March 2015, About 10 years ago
OK then I refer you to the maps in our licensing proposal which indicate the incidence of ASB.
I'm sorry but the idea that the property market in Southwark would be blighted or even affected by licensing is ludicrous. All across the borough there is substantial investment in all sorts of property regeneration and particularly residential. Both rents and housing prices have been growing strongly and demand substantially outstrips supply.
If I were interested in property investment I would specifically be selecting the worst (and therefore cheapest) properties in areas where there is high and increasing demand. There is clear evidence that areas that have for many years been seen as run down are now regenerating and both commercial and residential property is improving.
If Savills rate Southwark as one of the best residential investment returns in the UK then perhaps I might take their analysis over yours.... Read More
14:39 PM, 17th March 2015, About 10 years ago
Reply to the comment left by "Mark Alexander" at "17/03/2015 - 13:31
... Read More
14:36 PM, 17th March 2015, About 10 years ago
Reply to the comment left by "Michael Bond" at "16/03/2015 - 17:39
... Read More
11:48 AM, 17th March 2015, About 10 years ago
Hi Mark,
The old tests for selective licensing were lack of demand and ASB linked to high density of PRS occupation.
So in applying that to the real world I think that each LA area is different. In rural or very sub urban areas it would seem that it would be a challenge to make a case that ASB and PRS tenure could occur at a high density across the LA area.
I think that changes as you move into metropolitan areas where you might have an LA which has a problem with ASB that is property related and a high density of PRS occupation spread across the area. Whilst I don't know the borough well I think Newham might be a good example because there is a fairly even spread of rental values without peaks and troughs ( If I have done Newham any disservice I apologise). Therefore a borough wide designation is justified.
Contrast this with Southwark where there is an enormous variation in rental values and the incidence of property related ASB. As part of our licensing case we identify ASB hotspots, therefore there must also be cold spots too where ASB is less than the average. The Housing Act requires us to demonstrate a link between ASB incidence and PRS density.
We have taken that a little further and discounted areas where there is high PRS density at higher rents, because the ASB incidence is lower. That is why we have proposed a very small area for selective licensing.
Turns out that was a good decision.... Read More
15:21 PM, 12th March 2015, About 10 years ago
Reply to the comment left by "Neil Patterson" at "12/03/2015 - 12:37
... Read More
15:44 PM, 10th March 2015, About 10 years ago
Reply to the comment left by "Mark Alexander" at "10/03/2015 - 13:40
... Read More
14:32 PM, 10th March 2015, About 10 years ago
Hi,
A reminder to readers that our consultation closes on the 14th and we are keen to record all views on our proposals.... Read More
15:36 PM, 26th February 2015, About 10 years ago
Michael,
Before statute became markedly involved in the regulation of property transaction in the 20th century the whole lot was governed by common law and case law.
Therefore agricultural tenancies tended to be quarterly with rents payable on quarter days, commercial tenancies with whatever the parties agreed and residential tenancies either for a term certain ( a number of weeks or months) or periodic weekly, monthly or quarterly until either side gave notice.
It was usual for a weekly or monthly tenancy to have a similar notice period to the rent or have a term in the agreement to vary that.
The terms of the AST are certain in that the court will always interpret the agreement to comply with the act regardless of what is or is not written in the agreement, provided the letting has the character of a tenancy ( residential, quiet enjoyment, etc) So you can include any terms or conditions you like in an AST but if they are not reasonable and compliant with the explicit or usual implied terms in an AST they are unenforceable.
In this case, though it seems to have worked out for the landlord in the end, the landlord needs to think carefully about holding an unwilling tenant to the exact notice terms. You may have the law behind you in contract terms but end up losing out because it would have been more sensible to be pragmatic and let a departing tenant go.... Read More
12:34 PM, 16th December 2014, About 10 years ago
Mr Brunstrop,
Whilst the comparison to an Albanian dictator was obscure, I'm sure everyone had to google it like me, inaccurate and in the end somewhat amusing it hardly takes the debate forward.
Because I disagree with you and am working on a proposal you dislike does not allow you to draw conclusions about me personally. I'm not aware that we have ever met and those of you who have been to meetings at Southwark will be hard pressed to detect the world view that you are trying to construct.
We have a duty to act fairly however the duty is owed to society in general and not landlords in particular. My intention here is to discuss the proposal from Southwark,not licensing in general though clearly the Regas case has a bearing because it is current and may have an effect on our proposal.... Read More
12:20 PM, 16th December 2014, About 10 years ago
Hi Mark,
Please can you explain on what grounds or under what law you would take on Newham's licensing scheme ?
Mr Regas' call for resignations is not really very realistic, it's not very likely that a Councillor would take this call seriously when he can prove that 80% of the people who responded support the scheme.
The case adds up to a loss for Enfield but only changes the requirements for consultation, it does not damage Licensing as a power delegated to LA's.... Read More
16:50 PM, 11th December 2014, About 10 years ago
Reply to the comment left by "Philipp Brunstrop" at "11/12/2014 - 16:32
... Read More
15:35 PM, 25th November 2014, About 10 years ago
Reply to the comment left by "David Lawrenson" at "22/11/2014 - 10:02
... Read More
15:20 PM, 25th November 2014, About 10 years ago
Reply to the comment left by "Philipp Brunstrop" at "20/11/2014 - 18:56
... Read More
14:43 PM, 25th November 2014, About 10 years ago
Reply to the comment left by "Mandy Thomson" at "20/11/2014 - 17:19
... Read More