Policing the letting fees ban - what we're up to
The ban on letting fees is coming – from 1 June, renters in England (including licensees and property guardians as well as tenants) will not have to pay fees for admin, references or inventory to move into a new home. Just the rent and refundable deposits.
This should have a huge impact – not only on renters’ finances, but on their relationship with the landlord and agent too. If the landlord isn’t fixing something or is asking for a higher rent, the tenant is in a stronger negotiating position because it is now cheaper for them to move out instead. Faced with the prospect of a tenantless property, the landlord is more likely to capitulate.
But letting agents are a crafty bunch – their ability to invent fees out of thin air is why we’ve got to this point. And many are willing to break the law – our research on lettingfees.co.uk found that 12% of agents weren’t publishing their fees, in breach of the Consumer Rights Act 2015.
Private renters denied protection from revenge eviction
Dangerous, broken stairs, or mouldy walls making your family ill? What do you do if the landlord won’t make sure your home is safe? Private renters can contact their council, who have a responsibility to enforce housing safety standards. The council should investigate complaints and if they find a serious hazard, take enforcement action against the landlord, which triggers protection against revenge eviction for the tenant.
But new analysis by Generation Rent shows that just one in every 20 renters who complains to the council about poor conditions gets protection from a revenge eviction. Even when a severe hazard is found, tenants only get protection from eviction in 1 in every 5 cases.
Britain’s biggest landlords cash in their portfolio - and evict 100s of families
Fergus and Judith Wilson own over 700 properties. They are among Britain’s biggest private landlords, owning entire streets in some parts of Kent. Ever since their decision, in 2014, to evict all tenants on housing benefits - even those who had never been in arrears on their rent - their names have been synonymous with controversy.
Now, the Wilsons have decided to cash in on their estimated £250m property portfolio, to settle down and “take life easy”. They reckon that it’s easier and more profitable for landlords to sell properties without tenants in-situ. So the Wilson’s have started the process of evicting their tenants in preparation for the sale.
Almost all the couples’ properties are two or three bedroom new builds, and many are home to young families. By law, the Wilsons only have to give the tenants two months’ notice of eviction. Some might manage to find new homes in this time. But many landlords are notoriously unwilling to offer tenancies to families on low incomes, meaning the most vulnerable will struggle. The chances of so many people finding suitable new homes are slim. Still less, homes nearby their employers, schools and support networks. Many must fear homelessness, and could be forced to turn to an already stretched council for support.
Three wins on ending discrimination
There’s been some good news this month for people facing discrimination in the private rental market – because of how they pay their rent, or because of who they are.
Buy-to-let mortgage conditions
First, Natwest announced that it would lift “all restrictions on landlords renting to tenants who are in receipt of housing benefits”.
The English Private Landlord Survey 2018
Happy tenants. Happy landlords. Longer tenancies and no unfair evictions. It’s all possible!
The 2018 English Private Landlords Survey (EPLS) – the first since 2010 – demonstrates that much-needed changes to the private rented sector, specifically to renter security, would have little or no effects on most landlords. The current system of rules reflects the interests and opinions of a small minority of landlords at the great expense of tenants who deserve better.
The EPLS surveyed 8000 landlords and letting agents and its findings were published last month. The questionnaire covered three main topics: landlord characteristics; their attitudes and behaviours; and, importantly, the future of the private rented sector.
What are some of the key findings and what do they mean for renter security?
Parliament abolishes £410m-a-year scam
The House of Commons has read letting agent fees their last rites! This afternoon MPs voted to approve the final version of the Tenant Fees Bill signed off last week by the House of Lords.
From 1 June, private renters moving home will no longer have to pay fees to start a new tenancy in England. Agents will only be able to ask for rent, and refundable holding and security deposits (capped at 1 week’s rent and 5 weeks’ rent respectively). The only exemptions are fees to cover the cost of lost keys, late rent payments, changing the name on a tenancy or ending a tenancy early.
Letting Agents are not the "servants of two masters"
Parliament’s scrutiny of the Tenant Fees Bill has exposed the common misconception that a letting agent works for both the landlord and the tenant. A letting agent is not, as David Cox, CEO of ARLA Propertymark had put it, “effectively the servant of two masters.” Letting agents typically act for only one side (usually, the landlord).
An agent’s role is to serve the interests of the person who appoints them. It is simply not possible to act loyally for two parties whose interests are at odds (e.g. when one side would rather receive higher rent and the other would rather pay less). To suggest otherwise is to contradict English statute and common law, the Property Ombudsman’s guidance, the forthcoming Tenant Fees Bill and even the Bible.
2018 takes renters closer to a fairer housing market
It's our End Of Year round-up! 2018 has been an exciting year for the campaign. Through our work - with activists, renter unions and other groups - we are closer to a safer, fairer and more secure private rental market.
MPs debated Section 21 - here's what they had to say
On Thursday 6th December our campaign to end unfair evictions reached the Houses of Parliament.
Labour MP Karen Buck, in partnership with the End Unfair Evictions campaign, sponsored a Westminster Hall parliamentary debate on the problems pertaining to Section 28 evictions. MPs came together to share horror stories from their constituents of evictions as well as discuss the larger power imbalances born of the constant threat of eviction many tenants live with.
Section 21: Terrible for tenants and lengthy for landlords in court
Our campaign to end unfair evictions has caught the attention of Parliament. On Thursday, MPs are debating “the use of Section 21 evictions in the private rented sector”.
We’re calling for the abolition of Section 21, and the government is considering responses to its proposed three-year tenancies. This is the first opportunity MPs will have to air their views on reform, and quiz the Housing Minister, Heather Wheeler, on her department’s proposals. We’ll get a sense of what there is cross-party support for.
Ahead of the debate, we wanted to take a look at what we know about evictions and their extent. It's important to note that the problems with Section 21 go far beyond the basic number of evictions. The threat of a no-fault eviction discourages tenants from treating the property as their long term home, and even from complaining about disrepair.
Pressure builds on Natwest over benefit discrimination
Back in October, we learned that Natwest had asked one of its buy-to-let customers to either evict her tenant, who was receiving housing benefit, or pay a draconian fee to switch her mortgage.
The bank’s terms and conditions prohibited customers from letting to tenants in receipt of housing benefit. Yet another example of a bank discriminating against low-income households and fuelling the “No DSS” culture. But this time, 62% of the bank is owned by the government, i.e. us.
The landlord has started a petition urging the government to stop this practice by high street banks, and it’s nearly at 5000 signatures.