Episodes

  • #27: What the Renters’ Rights Bill changes about rent

    #27: What the Renters’ Rights Bill changes about rent
    Sep 25 2024
    The Renters' Rights Bill makes significant changes to the rules about rent for landlords and tenants in England. In this podcast episode, Richard Jackson and Suzanne Smith discuss the proposed restrictions on landlords when accepting offers from tenants, the new process that landlords will need to follow to increase rents, the new powerful rights for tenants to challenge and delay even reasonable rent increases, and what's happening with advance lump sum rent payments. They also discuss the challenges that landlords and letting agents face with a very short implementation timetable, with the expected "big bang" change over to the new tenancy system by the summer of 2025. Finally, they share tips on how to successfully navigate the change. >> Related episode: #26: What happens when Section 21 is abolished? >> Blog post: The new rules about rent in the Renters’ Rights Bill >> Ask a question: Click here for question form What we cover in this episodeThe changes to how landlords increase rentThe greater powers of renters to challenge rent increasesCan landlords accept advance lump sum payments of rent?The likely impact on tenants without a good credit historyThe rules to stop “rental bidding” The changes to how landlords increase rent Landlords will only be permitted to increase in-tenancy rent by giving at least 2 months' notice to expire at the end of a rental period, using the statutory process in Section 13 of the Housing Act 1988, and what will be an updated Form 4. Landlords won't be able to increase rent by agreement (unless the agreement is to reduce rent after a landlord serves a s13 notice) and all rent review clauses in tenancy agreements will be null and void. The greater powers of renters to challenge rent increases As now, tenants will be able to appeal Section 13 rent increase notices in the First-tier Tribunal, who will determine the market rent. If they do challenge a rent increase at the FTT, any increase in the rent will only come into effect on the date of the FTT determination. In other words, it won't be backdated to the date specified in the notice. This will have the effect of delaying an increase in rent that is fair and reasonable. Given the current delays on a small number of cases in the FTT now and the expected increase in appeals, this may have the effect of what David Smith of JMW terms "rent suppression". Can landlords accept advance lump sum payments of rent? The Bill does not say in words of one syllable whether advance lump sum payments may be made, and there is some disagreement between lawyers. This needs to be clarified urgently. The likely impact on tenants without a good credit history If upfront payments are outlawed, and given the expected increase in rent guarantee insurance as a result of the abolition of section 21, unless tenants have a good credit history, they may find it difficult to find somewhere to rent. The rules to stop “rental bidding” When landlords list or offer a property for rent, they will need to set a proposed rent. Landlords will not be permitted to accept offers above the proposed rent from prospective tenants. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
    Show more Show less
    23 mins
  • #26: What happens when Section 21 is abolished?

    #26: What happens when Section 21 is abolished?
    Sep 18 2024
    In this week's episode, Suzanne Smith and Richard Jackson discuss the practicalities of what will happen when the Renters' Rights Bill will abolish Section 21 "no fault" evictions for landlords in England. They cover: what is Section 21, how Section 8 will replace Section 21, the key new and changed grounds for possession, when it's going to come into effect, and what landlords will need to do to adapt to the new regime. They also share their reflections on this new Bill. As always, it's a very practical episode. PS As a general caveat, it's still very early days with the Renters' Rights Bill. The Bill is really difficult to understand, and we may well change our views on how to interpret it. It may also change as it goes through parliament. Before taking significant action, do get advice from a specialist solicitor. You can contact us by sending us a message on our contact page if you would like a referral. >> Ask a question: Click here for question form What we cover in this episodeWhat is Section 21?What will replace Section 21?What is Section 8?When is Section 21 going to be abolished?Tips for adapting to the new regime Special offer from Symple for Good Landlording listeners #ad Before we get into the ins and outs of the abolition of Section 21, we wanted to share a promotion for listeners of Good Landlording that helps you, and helps support the podcast. We all know it can be a hassle for landlords to keep on top of gas safety certificates, EICRs and EPCs, especially for those of us who have a portfolio in different parts of the country. Although software like Alphaletz can help remind landlords when they are all due, landlords can also use Symple to make sure they are actually done on time. If you haven’t heard of Symple, it’s a free platform that’s designed to help landlords streamline their compliance management. You can set it up to order gas safety inspections, Electrical Installation Condition Reports (EICRs), and Energy Performance Certificates (EPC) with just one click. Symple provides landlords with automated renewal reminders to ensure they never miss a deadline and provides real-time updates on certificate statuses once they are ordered. Symple cover the whole of the UK with pre-approved local service providers. There’s no searching or chasing - Symple handles everything for you. Symple even guarantees to do it by the due date if you book it at least 4 weeks in advance. The charges for the certificates are reasonable, and all of the suppliers are vetted. And best of all, Symple are offering listeners of Good Landlording a 5% discount on all of their products with the code GL05. This is a paid promotion, but one that benefits our listeners as we have negotiated a 5% discount for our listeners on all certificates ordered from Symple using the code GL05. Click here for Symple What is Section 21? Section 21 of the Housing Act 1988 gives landlords the right to evict tenants without needing to give a reason. So long as that landlord serves a valid notice using Form 6A, which is on the government website, they give two months notice plus a few days for service (and assuming the landlord has, of course, served all the relevant documents when they needed to), then the landlord will get the property back. The landlord doesn't need to give a reason. It doesn't mean there is no reason, just that they don' need to explain their reason. >> Blog post: How and when will Labour abolish Section 21 no fault evictions? What will replace Section 21? The only way landlords will be able to bring a tenancy to an end after Section 21 is abolished is by using the Section 8 process. What is Section 8? Section 8 is from the Housing Act 1988 and allows landlords to evict tenants when they have a specific grounds or a reason. The landlord needs to provide evidence of the ground. There are two types of grounds:
    Show more Show less
    29 mins
  • #25: Overview of Labour’s new Renters’ Rights Bill

    #25: Overview of Labour’s new Renters’ Rights Bill
    Sep 12 2024
    Suzanne Smith and Richard Jackson discuss their first impressions of Labour's new Renters' Rights Bill in this special episode of Good Landlording, shortly after Bill was published. They go through the big ticket items in the new Bill, how it compares to the old Renters (Reform) Bill, and what landlords should do to prepare for the new Bill. They'll be discussing the Renters' Rights Bill in more detail in the coming weeks and months, but this episode provides a useful overview of what's in the Bill, and what's not. >> Ask a question: Click here for question form What we cover in this episodeOverview of the Renters' Rights BillThe key parts of the Renters' Rights Bill1. The abolition of Section 212. The abolition of ASTs and fixed term tenancies3. Changes to Section 8 Grounds for Possession4. No rent controls in the Renters' Rights Bill5. Change to rent increase procedure6. No encouragement of rental bidding7. Other provisions in the Renters' Rights BillWhat should landlords do about the Renters' Rights Bill? Overview of the Renters' Rights Bill The Renters' Rights Bill is very similar to the old Renters Reform Bill, but with a fair few Labour "tweaks", notably removing the concessions given to Conservative backbench MPs at the Report Stage of that Bill, banning rental bidding, and giving tenants more rights when it comes to challenging rent increases. There are no dramatic surprises as the main provisions have been well signalled by the Labour government. The amendments that Labour proposed at the Report Stage of the Renters (Reform) bill have been reflected in the new Bill. >> Useful resource: Renters' Rights Bill Hub >> Blog post: How the Renters' Rights Bill compares with the Renters (Reform) Bill The key parts of the Renters' Rights Bill 1. The abolition of Section 21 The Renters' Rights Bill takes the same approach to the abolition of Section 21 no fault evictions as the Renters (Reform) Bill. However, there will be no delay to the implementation for existing tenancies for the Lord Chancellor's review of the operation of the County Court eviction process as there was with the Conservative's Bill. Instead, there will be a "big bang day" when all tenancies will switch to the new regime, without Section 21, whether they are new or existing tenancies. The abolition won't affect notices that are served before the Bill comes into force. >> Blog post: How and when will Labour abolish Section 21 no fault evictions? 2. The abolition of ASTs and fixed term tenancies As per the old Bill, assured shorthold tenancies will be replaced by periodic assured tenancies and landlords won't be able to sign up renters for a minimum period. Renters will be able to serve 2 months' notice to quit at any time. Labour have done this to make tenants flexibility so that they're not tied in and can leave places that are in disrepair. It's part of their aim of giving more power to renters. There is no exception for student landlords, and they won't be able to stop tenants moving out at Easter or after the exams in May. 3. Changes to Section 8 Grounds for Possession Contrary to media reports over the summer, the Renters' Rights Bill does not introduce a hardship test for Mandatory Grounds, which would have effectively turned all Mandatory Grounds into Discretionary Grounds. Landlords will be pleased that the new Bill contains the new Ground 1A from the Renters Reform Bill which entitles them to possession if they can demonstrate they wish to sell the property. 4. No rent controls in the Renters' Rights Bill Despite recent speculation, there are no rent controls in the Bill and no provisions to devolve the power to impose rent controls to local government and the Metro Mayors. 5. Change to rent increase procedure Landlords will only be able to increase the rent by using the Section 13 procedure, and the notice will be doubled from one month to two months.
    Show more Show less
    15 mins
  • #24: Labour’s plans for replacing leasehold with commonhold

    #24: Labour’s plans for replacing leasehold with commonhold
    Sep 2 2024
    Almost 40% of the properties in the PRS in England are leasehold, so the chances are that if you're a private landlord listening to this podcast, you'll have at least one leasehold property in your portfolio. If you do own a flat in England or Wales, or are thinking of buying one, you need to listen to this episode of the Good Landlording podcast. This is because the government plans to "take steps to bring the feudal leasehold system to an end", by "reinvigorating commonhold through a comprehensive new legal framework", and replacing leasehold with commonhold. As part of this, the Government say they will ban the sale of new leasehold flats so that commonhold becomes the default tenure. This promises have significant implications for leaseholders, should it see the light of day, and it's something that property investors need to understand. However, abolishing "feudal" leasehold is also a lot easier said than done, and in this episode of Good Landlording, Richard and Suzanne discuss what it all means, and what's likely to happen in practice. They also talk about the implementation of the Leasehold and Freehold Reform Act 2024, and plans to abolish forfeiture and tackle ground rent for existing leases. >> Ask a question: Click here for question form What we cover in this episodeRecap of what's in the Leasehold and Freehold Reform Act 2024What are Labour's proposals for the draft Leasehold and Commonhold Reform Bill1. Labour promises to "tackle" ground rent2. The abolition of forfeiture for leasehold properties3. Labour's promise to replace leasehold with commonholdHow does commonhold differ from leasehold?Why does the Government wish to abolish freeholdThe transition from leasehold to commonhold Recap of what's in the Leasehold and Freehold Reform Act 2024 The Leasehold and Freehold Reform Bill managed to get onto the statute just before the election, becoming the Leasehold and Freehold Reform Act 2024. The Leasehold and Freehold Reform Act 2024 has the following key provisions: Considerably longer lease extensions, ie 990 years instead of 50 for houses or or 90 for flats. A new valuation process that is more favourable to the leaseholder. The banning the sale of new houses as leasehold, making sure that they are sold as freehold. Changes to the valuation methods for collective enfranchisement by leaseholders. Greater transparency over service charges and estate management charges. At the moment the Act has only received Royal Assent, but hasn't yet come into effect. However the Government's July 2024 King's Speech says "The Government will act quickly to provide homeowners with greater rights, powers and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024". They also say in the King's Speech that they will "will consult on the best way to bring [...] the injustice of ‘fleecehold’ private estates and unfair costs to an end [...] and implement new protections for homeowners on private estates in the Leasehold and Freehold Reform Act 2024. It's expected that leaseholders will need to wait until 2025 or 2026 before they can exercise their rights to extend leases for up to 990 years, but the Government will be under pressure to do it as soon as possible. What are Labour's proposals for the draft Leasehold and Commonhold Reform Bill The King's Speech refers to publishing a draft Leasehold and Commonhold Reform Bill that will "reinvigorat[e] commonhold by modernising the legal framework". They will also "restrict the sale of new leasehold flats. The Government will consult on the best way to achieve this, so that generations to come will benefit from absolute homeownership". The use of the word "draft" means the Bill itself is unlikely to be presented to parliament in the next year. Instead, they will publish it to enable people to comment on it as commonhold is very complex.
    Show more Show less
    22 mins
  • #23: What makes a successful HMO business, with Wendy Whittaker-Large

    #23: What makes a successful HMO business, with Wendy Whittaker-Large
    Aug 28 2024
    In this summer special episode of Good Landlording, Richard Jackson and Suzanne Smith pick the brain of Wendy Whittaker-Large about what makes a successful, systemised HMO business. The episode a fantastic source of information for anyone who has HMOs, is thinking of converting a property into an HMO or is just "HMO-curious". Wendy gives an insider's view of how to make HMOs a success, and build an efficient systemised HMO business. >> Ask a question: Click here for question form What we cover in this episodeAbout Wendy Whittaker-LargeWhy invest in HMOs?Why do renters like HMOs?Which locations are good for HMOs?How tenancy agreements differ for HMOsWhy 6 Bedroom HMOs are the sweet spotWhat Article 4 means for HMO landlordsTips for developing an successful HMOTips for managing HMO tenantsThe importance of having a systemised business for HMOs About Wendy Whittaker-Large Wendy Whittaker-Large is the multi award winning founder of BestNest, a property development and lettings business, and HMO Success, a specialist HMO training and mentoring company. She's also the chair of the HMO Council Tax Reform Group which successfully overturned the single banding of HMO rooms for council tax in 2023. Wendy is a landlord who's grown a large property portfolio since 2012, mostly focused on HMOs. She has also published two books about HMOs: 101 Essential Tips for Running a Professional HMO and Extraordinary Profits from Ordinary Properties (Amazon links). Wendy is a regular on the speaking circuit, and has a successful podcast called the HMO Success Podcast which is available on Apple, Spotify and Podbean). Why invest in HMOs? An HMO is a house in multiple occupation, in other words, a building in which three or more households live together It's a cross between a hotel and a house, with people living there, or a family home where you might have you know four or five adults living. Whatever happens in the market, there is always a need for good quality, dense housing. Wendy believes HMOs offer tremendous benefits both for the people who live there and also, of course, for landlords investing in this type of housing. Buying an HMO allows one property to generate more revenue than renting it out as one single family let. Wendy says that an average yardstick would be £1,200 - £1,400 pcm net profit across the country. On the other hand, there is more work, more investment and more management time. HMOs cost more to refurbish, as they need to have better fire doors and fire protection, and amenities. The HMO is likely to need a licence, and they are subject to more legislation, such as the HMO Management Regulations. >> Blog post: Property investor guide to the successful management of HMOs Why do renters like HMOs? Renters like HMOs as usually they only pay one amount which includes the rent and the bills. In an age of uncertainty over fuel bills and the cost of living, tenants like only paying one amount per month which covers everything. Living in an HMO is very flexible as there is usually no long term commitment. Tenancies are usually for 6 months and are suitable for those on contracts, who are maybe working across the country, who don't know where they're going to be in the future. Which locations are good for HMOs? Wendy recommends cities and large towns with more than 80,000 people, as they are likely to have the demand from HMO renters. How tenancy agreements differ for HMOs HMO landlords should use a specialist tenancy agreements for HMOs, as opposed to ones for where the property is let to one household or two sharers. This is because professional HMOs tend to be let by the room, and not as a joint tenancy. The renters have exclusive possession with quiet possession of their room (and perhaps an en suite), and share the common parts. The landlord is able to enter the common parts for inspections, and often include a cleaner in the rent.
    Show more Show less
    33 mins
  • #22: Making a Success of Supported Living, with guest Lisa Brown

    #22: Making a Success of Supported Living, with guest Lisa Brown
    Aug 21 2024
    In the third of four summer special episodes, Richard Jackson and Suzanne Smith speak to Lisa Brown, nurse turned property developer, who explains how landlords can make a success of leasing their properties to providers of supported living housing. In this episode, Lisa explains what supported living is, how it works, what type of properties are suitable, adaptations, choosing a provider and the advantages and risks for the landlord. You can also connect with Lisa on LinkedIn and find out more information on the Supported Living Property website, the Supported Living Property Podcast and the Supported Living Property YouTube Channel. >> Ask a question: Click here for question form What we cover in this episodeAbout Lisa BrownWhat is supported living?How does supported living work?What types of properties are suitable for supported living?Grants for adaptations for supported living propertiesWhat are the advantages of supported living for the landlord?What to look out for when choosing a supported living partnerCredits About Lisa Brown Lisa had nursing career of over twenty years working her way up to senior sister and emergency nurse practitioner in a busy East London A & E, and she also worked as a health visitor. She saw firsthand a direct impact that poor quality housing or lack of housing has on people's health and well-being. Lisa discovered supported living herself by chance and found it a natural fit with her experience as a nurse. However, she also discovered that property investors often struggled to let properties to supported living providers, and providers struggled to find properties to let. So she came up with the idea to set up her Supported Living Property Network to provides training and a place for providers and property investors to connect. Lisa also has a successful podcast (on Apple and on Spotify), plus a YouTube channel. What is supported living? Lisa Brown defines supported living as arrangement for accommodation for a tenant who has a support need. The support need may be long term. For instance, someone who has learning disabilities, autism, complex mental health, or maybe with physical disabilities, somebody for their for their whole lifetime is gonna require that level of support and input. It can also include people with support needs for a shorter term, for a few months or a few years. This may e people who are homeless, veterans with PTSD, people fleeing domestic abuse, or teenagers transitioning from the care service. There's a whole range of different people who need support in the short term. It's for people who need time to be able to support someone till they can move on and take their own tenancy. There are people with support needs in every community, from small rural communities to big cities, across the country. As there's a higher concentration of people in cities, demand is greater, but there are often requests for properties in a smaller towns and communities. y. How does supported living work? With supported living, the owner of a property enters into a lease with a supported living provider, which may be a housing association, community interest organisation, local authority, charity or care provider. That organisation either grants a tenancy or a licence to the people who will live in the property. The supported living provider provides accommodation to people with support needs ranging from a few hours support a week to members of staff on-site twenty four hours a day helping them access every part of their their life that they need the support for. Where the provider specialises in people with short term needs, they usually proved the support as well as the accommodation. For people with long term needs, the support can be provided separately. What types of properties are suitable for supported living? There is no specific type of property that is suitable for supported living, as such,
    Show more Show less
    26 mins
  • #21: How to buy and sell property at auction, with guest Bushra Mohammed

    #21: How to buy and sell property at auction, with guest Bushra Mohammed
    Aug 14 2024
    In the second of four summer special episodes, Richard Jackson and Suzanne Smith speak to Bushra Mohammed, who guides us through how to buy and sell properties successfully at auction. Not only is Bushra a property solicitor with particular expertise advising clients who buy and sell at auction, but she is also a property developer and landlord. This enables her to understand the perspective of property investors, and what the key issues are to look out for. Suzanne first met Bushra after following her Instagram account @bushra_propertyinterest. You can also connect with Bushra on LinkedIn and find out more information on her website. >> Ask a question: Click here for question form What we cover in this episodeWhy do people sell property at auction?Why do property investors buy at auction?Difference between buying property at auction and by private treatyWhy the auction legal pack is important for biddersPractical tips for buying property successfully at auctionPractical tips for selling property successfully at auctionBushra's Golden NuggetsCredits Why do people sell property at auction? People usually decide to sell a property at auction, instead of the usual "private treaty" are usually looking for speed and/or certainty, With speed, the seller knows they will have a legally binding exchange, which is highly likely to complete within two weeks or 28 days. The certainty comes from knowing that the winning bidder will exchange on the day of the auction and will pay a 10% deposit, which they will lose if they don't complete on the purchase. Typically the sellers are those who wish to sell quickly and efficiently, eg to raise money to pay debts, a probate sale when the owner has died or the property may have structural issues. Bushra advises that it is important for potential bidders to find out the reason for the sale, and then decide whether the circumstances pose a risk for them as bidders, and what they can do to mitigate the risk. Why do property investors buy at auction? Programmes such as Homes under the Hammer have taken some of the mystery out of buying property at auction, and increased its popularity. Property investors usually decide to buy at auction in the hope they will be able to buy a property below market value. If they the highest bid, they have the certainty that purchase will complete. There will be no gazumping and no stressful chains. Difference between buying property at auction and by private treaty Whereas with a normal sale by private treaty (buyer makes offer, does searches, exchanges and then completes), when a bid wins at auction, the bidder is legally obliged to pay the deposit, with contracts "exchanging" straight away. There is no cooling off period and the bidder will lose the deposit if they con't complete the purchase within the specified time period, ie 2 weeks or 28 days. This means that someone buying a property at auction needs to do all of their searches and due diligence before the auction. Unlike a purchase by private treaty, they cannot pull out once the bid is accepted. Why the auction legal pack is important for bidders As bidders need to do their due diligence up front, it's really important to study the auction legal pack carefully to make sure there is nothing noted that might affect your decision to buy the property. Bushra advises instructing a solicitor to review it so that they can flag any risks and ask for further information. If the seller provides more information in response to a question, that will potentially put a bidder in a better position as the seller won't automatically send information to all bidders, as is the case with public procurement. >> Blog post: 7 ways to screen your property investments Practical tips for buying property successfully at auction Bushra gives the following tips to help investors buy property successfully at auction:
    Show more Show less
    34 mins
  • #20: Why interior design is important for landlords, with guest Charlotte Richardson

    #20: Why interior design is important for landlords, with guest Charlotte Richardson
    Aug 7 2024
    For our first summer special episode of Good Landlording, Richard Jackson and Suzanne Smith pick the brain of landlord and interior designer, Charlotte Richardson, about how good interior design can benefit both landlords and renters alike. As always, it's a practical episode, with lots of actionable tips to help landlords use interior design to help them attract and keep good tenants. >> Ask a question: Click here for question form What we cover in this episodeIntroduction to our guest: Charlotte Richardson of roostInterior design tips for landlords1. See the vision at the start2. Meet the needs of your target market3. Choose quality items4. Maximise the layout5. Flooring recommendations7. Invest in good lighting8. Inexpensive upgrades9. Good choices for paint coloursHow to choose an interior designerGolden nuggetCredits Introduction to our guest: Charlotte Richardson of roost Our guest for this "summer special" episode on interior design for landlords is Charlotte Richardson, Co-founder and Creative Director of roost, the interior design company that specialises in helping landlords and property developers maximise returns and make tenants feel great in their homes. As well as being an interior designer, Charlotte is a landlord and a property investor, and a graphic designer by profession. She has a fantastic blog called the roost interior design blog on her website with lots of great tips. You can follower her account _roost_ on Instagram. Interior design tips for landlords 1. See the vision at the start Charlotte recommends that landlords ask at the start of the project for the interior designer to provide realistic CGI rendering of what the space will look like after the project is complete. CGI rendering is a computer generated 3D visualisation which can help the property investor and the contractor visualise what the space will look like, and avoid costly mistakes before any work is done. It sets the scene for how this project is going to develop. They can see it in a 3D model and 'walk' around the house of flat before anything is done. It's a lot easier to make changes to the layout and even the colour palette at this stage than later on. Realistic 3D visualisations can also help contractors avoid costly mistakes, as they can see what the vision is for the property, plan, and know what's expected. It can also help investors pre-sell the rooms and market the property before the work is finished. 2. Meet the needs of your target market It's important for landlords to understand their target market. This can help landlords make interior design decisions and take care about what the tenants need and value. It will reduce voids and help landlords obtain a good rent. For HMO landlords, the needs of NHS workers are different from administrative staff who like to work from home, manual workers or students. It affects how much communal space that they need, how much space people have in their rooms, what facilities they value. It's also really important to make sure the layout works. Families benefit from flexible living space as their children grow up, and lots of storage. >> Related episode: #1: What makes a good tenant? 3. Choose quality items Having the property in good condition is key. This means choosing quality items that will wear well and last longer. For instance, use large tiles in the shower, which don't need as much grouting as smaller tiles, and will wear better. 4. Maximise the layout An interior designer can help landlords use the space effectively with an excellent layout. 5. Flooring recommendations The choice of flooring is important as it's expensive to replace a bad decision. Charlotte recommends tiles in the bathroom and LVT (Luxury vinyl tiles) in the communal areas as it's hard wearing and is good in areas where there is water, like a kitchen, as it's waterproof. They can be scratch resistant too. 7.
    Show more Show less
    29 mins