Government’s destructive path

Reply to the comment left by Steven at 11/05/2020 - 13:08I agree, it’s obvious the government have deliberately targeted smaller landlords to push us out of the business. Is it envy? Could be, but I think it’s also a matter of governmental arrogance and an urge to control, to control anything and anyone who is operating slightly outside of the system, to kill anything independent, just look up IR35 for example. The government hates any of its lesser “subjects” to operate independently. Everyone must be in the system, their system. This attitude of course does not apply to the multi millionaires, ie the Bransons of the country, and the various large international corporations, the government attitude is then of servility, wonder and awe and abject deference and they doff their caps and the multi millionaire or large corporation is then showered with gifts such as tax breaks, favourable government contracts and changing any laws to suit which may increase them making even larger profits, which is what I think is currently happening to us here in the PRS.
There is also an attitude of they can do anything they want and **** anyone who doesn’t like it.
It’s my strong belief that Brexit is involved as it’s all part of the same government mind set, “we don’t want the EU interfering with our sponsors profits”
You can read something which touches on this, it’s about Covid19 but it demonstrates the attitude;
https://www.globalresearch.ca/stench-corruption-stronger/5712235
The question is what do we do about it?
I think taking the government head on won’t work unless all landlords are united on a plan of what to do. Either we accept the new rules and try to survive or we bale out and invest our money elsewhere. Anyone got any other ideas?

A great deal of rental problems would be solved by having rental benefit paid directly to landlords

Reply to the comment left by Bristol Landlord at 11/05/2020 - 14:07
Agreed.

In agreement with Clint, many tenants think it is free money when they receive rent benefits. As soon as it was done it pushed landlords to the back of the queue. Even now when we give councils details of arrears we are the bad guys.
Something must give !!!
Direct payment is what we should use to get the ship a bit more balanced,

John

Reply to the comment left by john mcghee at 11/05/2020 - 15:28We simply refuse to Let to Benefit tenants without a change in the U.C. policy, AND a Guarantor ( whether that be the LA or Shelter ) - No Guarantor, then another family the Council can pay Twice as much to accommodate as if PRS rented the property to them.

I started nine years ago. I do not want this state aggro in my life.
I had a policy that I would never take a tenant on state benefits at all.
I had just one tenant who needed a guarantor and I used her father.
I did this because the other tenants told me that they really wanted her on board in the house share.
She was absolutely the worst tenant that I have ever had and started her disruptive behaviour from the day she moved in.
At one point I seriously considered evicting all of the tenants who shared the same joint contract and taking the financial hit.
Eventually she felt outside of her comfort zone with the other tenants and left of her own accord.
Lesson learnt. No more benefit tenants for me. I rather have a void. I have never had a void or a missed payment since I started although I did have to chase up the same idiot tenant on a monthly basis.

Reply to the comment left by john mcghee at 11/05/2020 - 15:28
I have never had problems with councils not making direct payments to me as, this was the condition of my tenancy and rents had to be paid directly to me from the start of the tenancy. There is a regulation which the council should adhere to if, it is a condition of your tenancy, that any rental benefit must be paid to the landlord, otherwise the tenant could be evicted.

In this respect, I always got a signed letter of authority from the tenant to act on the tenant’s behalf and in the following was included in the letter:

“Please further note that it is a condition of my tenancy that any housing benefit that I am entitled to, is paid directly to my Landlord and if the housing benefit is paid directly to me I may be evicted as detailed in the Tenancy Agreement. I request that the council assists me to secure and retain my tenancy in this respect.

For your reference, The Housing Benefit (Amendment) Regulations 2010 includes a regulation where Housing Benefit may be paid directly to the landlord. This additional clause (iv) that has been added to Regulation 96(3A)(b) is detailed below:
(iv) the relevant authority considers that it will assist the claimant in securing or retaining a tenancy”

It is with UC where this clause is ignored even though, UC's guidelines state that a payment could be considered to be paid to the landlord if the tenant may be evicted. UC is just one big nightmare. Avoid tenants on these benefits as it is geared to continuously lose money.

If tenants can get away without paying their rent, and landlords are prevented from evicting them, then a safer way of letting a property would be to lease it to a council or housing association, and let them take the risk of letting to tenants.

(Disclosure. I run a housing association that leases properties from private landlords).

The Arkin v Marshall Court of Appeal backed the Govt Practice Direction 51Z ( confirming the legality of suspending Possession proceeding ( disappointingly. )
Court of Appeal - judiciary are Not fit for purpose !
I've Tweeted the full judgement @possession_uk

Reply to the comment left by Bristol Landlord at 11/05/2020 - 14:07
You're right, Bristol Landlord, what do we do? Thank you for your insights (and the time you've taken to set them out). These 3 pages of comments from you and everyone who's contributed here should be cut and pasted to every (small) landlord and would be landlord in the country with "What do we do?" As it is, I'm (currently) doing both your options, but not because I want to. [Readers, please switch off now if you don't want to read Mr Angry from Purley, for those that remember Steve Wright in the Afternoon on Radio 1. For those happy to put up with me having a rant on the psychiatrist's couch, please read on...). The real kicker for me was the 2015 Budget and s24. I'd just voted Tory, sweated cobs while the results came in and then celebrated. The Osborne... that was a jackboot to the crown jewels. By then I'd been a landlord for 21 years and looking forward to another 20 years as a landlord and looking after myself and my family under my own steam. But Osborne stuck a stick dynamite under that. Forgive my French, and I am a Tory voter (not because I actually want to vote Tory - I last did that for Thatcher - but because they are the least worst of a bunch of self important idiots and I feel I have to vote for someone) but what a cynical, slimy bunch. One contributor earlier said "System" - too right, but for me I take as a personal "what, you don't trust me to get this right after I have voluntarily taken on £millions in potentially bankruptcy making risk debt in a brave attempt to make and secure my own future. You don't think I WANT to make this work?!?" That seismic slimy moment stopped my life plan dead in its tracks and brought forward by at least 1-2 decades a carefully planned sell one property a year decumulation (to remove the debt leverage) so I could live out my dotage watching England lose the Ashes and failing to qualify for the World Cup time after time happy in the knowledge I was at least debt free. So I reluctantly started to sell in 2015. Ah but No! Even unwantedly having to accelerate my decumulation phase by 10 - 20 years, that was itself also to be screwed up - because Cameron decided he needed to have laid at the Altar Of Cameron the neutering once and for all of the Tory ESG so that He, (like all politicians tbh), could say that He, and only He, brought this about and that if it hadn't been for Him, the Tory party would for ever more be afflicted by the ESG and so He decided it shall be done. Only it wasn't. Pride (hubris) comes before a fall. For me the Referendum, and the horlicks the Tory party made of it for the next 3.5 years, put my sales on hold. No sales for the next 3.5 years, 2016 to 2019 for the s24 cobblers to catch up on me. Ah, but at last Bozza wins (well Brexit wins actually, it's just that Boris was holding the sign, or rather Dominic Cummings had Boris hold the sign. And Bozza had Corbyn as an opponent, which secured the Remain vote for Boris as the least worst ticket). Ok some light at the end of the tunnel - I'll start selling in 2020. Ah, but No! Wuhan decides it's more s24 hell... When the geniuses at Oxford or GlaxoSmithKline find a vaccine, then I'll start re-selling (I hope...). Thanks Osborne for ruining this man's dreams, and all the hard work and sleepless nights that are the foundation of such dreams. So, to answer your very valid question Bristol Landlord, for this Landlord its: (1) sell CGT loss making, or non-CGT, property first, but even then my fixed rate loans will dictate timing here too... Then (2) persuade The Wife the Isle of Man isn't all that bad, or Portugal is sunny this time of year and, if she agrees, it's off we go for 5 years plus. After s24, licking the a*se of Corporate Build to Rent, Referendum, Brexit, I'm blowed if the Tories think they are going to get my CGT too... Except, as in all marriages, if my Wife says they will, well they will, the slimy sods (sorry guys but that's marriage isn't it...?) But if Wifie says No, then it's hello Douglas or hello Calamari, or maybe both; either way, if I can help it, it won't be here, sadly, as it's really the only place I want to be... Sorry, I'm British through and through and will always want England to win everything, but a couple of Tory twats have ruined things and after 26 years of hard slog, risk taking and making an effort for myself and my family, and not least being the best Landlord I can to hundreds and hundreds of people young and old who have lived in my properties for more than a quarter of a century, the vast majority of whom have never had a bad word to say about me and with whom every one I've tried to have a harmonious relationship (being a Landlord is all about relationship), I'm sad to say but this disillusioned landlord is getting out - fully out. Thanks readers for reading if you get this far. Good luck in all you do and I please feel free to reply and use me as your psychiatrist as you see fit if some of my disillusionment resonates with some of you too.