Council prepares for overdue social housing survey despite harsh penalties for landlords
2 years ago | 4 comments
Council seizes properties from landlord
9:33 AM, 19th August 2024, 2 years ago
13
Merton Council is believed to be the first in the country to seize a landlord’s properties because – it claims – this will protect tenants.
The council says the landlord has repeatedly flouted housing regulations by not licensing them.
Under its selective licensing scheme, the council has the authority to address poor housing conditions and anti-social behaviour.
When residents complained about the properties in question, council officers inspected them and issued multiple notices to the landlord, who ignored them for months.
‘Committed to improving housing conditions’
Merton’s cabinet member for housing and sustainable development, Councillor Andrew Judge, said: “Everyone deserves to live in a safe and decent home and the council is committed to improving housing conditions in the private rented sector.
“While many landlords operate within guidelines, there are also others who do not, often taking advantage of some of the most vulnerable members of our community.
“This leads to issues affecting health and safety, the wider community, as well as the environment.”
He added: “This action sends a clear message to landlords: if you do not license your property, or act in such a way that the property cannot be licensed, the council can and will use its powers to take over the running of it.”
Council has taken control of the properties
By securing an interim management order, the council has taken control of the properties and will use the rental income towards improving conditions.
The properties are in the Figges Marsh, Graveney, Longthornton, and Pollards Hill wards, and all are subject to the council’s selective licensing scheme introduced last year.
The landlord remains responsible for mortgage payments.
Council taking over and managing an HMO
Phil Turtle, a legal expert in selective licensing laws at Landlord Licensing & Defence, told Property118: “The process of a council taking over and managing an HMO, or a house/flat which fall under selective licensing, goes back to the Housing Act 2004, section 101.
“The council can either make an ‘interim management order’ for up to 12 months or a final management order for up to five years
“Councils mostly avoid this like the plague because they know that their staff are completely incompetent to actually manage an HMO.”
He adds: “Which says a lot about the people that enforce against landlords – many have no idea how HMOs actually work.”
Tags:
housing regulations, landlord, london housing, Merton Council, Private Rented Sector, rented homes, Selective Licensing Scheme, tenant safety
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Member Since August 2023 - Comments: 94
10:26 AM, 19th August 2024, About 2 years ago
So can. PRS LL seize council properties where the council are not maintaining them due to no funds despite tenants complaints.
Its still no excuse for LL who let the rest of us down
Member Since October 2020 - Comments: 7
10:30 AM, 19th August 2024, About 2 years ago
Well said southern boyuk. I have rentals next door to LA housing and they are not fit for pigs. Rats were reported coming from the LA property in Nottingham and the city councils response was that they did not own the rats and so not their problem!
I wonder what would happen if a selective licensing inspection found rats in a PRS landlords garden? Would the same non sensical answer apply? Very doubtful £3000 fine I guess.
Member Since July 2013 - Comments: 33
10:42 AM, 19th August 2024, About 2 years ago
Is this the start of the big takeover by the state, provide the homes promised to the electorate without having to build or pay for them.
Bristol has just brought in another Licensing scheme to run alongside the last one but this scheme only £910 per unit!
Member Since December 2020 - Comments: 13
10:57 AM, 19th August 2024, About 2 years ago
Shocking on all accounts , by both landlord , and council alike.
what happens to the mortgage ?
BTL ostensibly based on the principle of letting and income pays expenses.
no income ? cant pay ? – repossesion .
Tenants served with notice by the bank no doubt ?
or tenants stop paying ! – then what does the council do ??
What a mess
Member Since April 2018 - Comments: 374
11:45 AM, 19th August 2024, About 2 years ago
What you would expect from a Labour council only interested in yet more taxes from hard working landlords..Do they care about tenants, no.
Member Since May 2015 - Comments: 2203 - Articles: 2
11:53 AM, 19th August 2024, About 2 years ago
Reply to the comment left by David at 19/08/2024 – 11:45
It’s not just Labour, remember the last conservative government?
Member Since May 2014 - Comments: 148
1:33 PM, 19th August 2024, About 2 years ago
““Everyone deserves to live in a safe and decent home..”
Ha! deserving & achieving are two different things..one is a statement that is not true, the other is an actuality. Many people do not `deserve` something because they have not earned it..literally.
Member Since May 2021 - Comments: 392
3:45 PM, 19th August 2024, About 2 years ago
Reply to the comment left by Landlord in Knots at 19/08/2024 – 10:30
2 Tier maintenance
Member Since August 2017 - Comments: 149
4:29 PM, 19th August 2024, About 2 years ago
Reply to the comment left by Landlord in Knots at 19/08/2024 – 10:30
I’m not a fan of the increased regulation that we as landlords have had to deal with but it shows a complete lack of balance to say “is this the start of the big takeover by the state”.
If a landlord fails to follow the regulations and then fails to engage with the council when threatened with enforement action, it cannot be a big surprise that the council will want to use its powers to try to force compliance. I’m sure that if you stopped paying your council tax and refused all attempts to comply, that you could expect a visit from the bailiffs and the confiscation of your property by them if all other methods had failed.
Member Since August 2014 - Comments: 336
4:57 PM, 19th August 2024, About 2 years ago
The lesson here is for landlords to extract every last bit of equity from their houses and have mortgages as big as the banks will allow.
If the Councils strip the landlord of the rental income and the landlord remains liable for the mortgage repayments, then as long as they have stripped all the equity they can from the property, then they can abandon it and let the bank and council fight it out amongst themselves.
So long as the equity has been sunk into a trust, along with all the other possessions the landlord has, the council will be left with a nasty headache. Sure, the landlord won’t be able to get finance again, but at least they will have protected their assets from the Council. And also there will be nothing left for the tax man either. (This is not professional advise; I am just venting)