2 years ago | 5 comments
Hi, I’m hoping someone can advise me on an issue encountered with a Section 21 I have served. The tenant has instructed a solicitor, and this solicitor has stated that the S.21 is not valid because I “have demanded and received prohibited payments under the Tenant Fees Act 2019”.
After reviewing my accounts, I found that the only payments I have received from the tenant are for rent and council tax. There have been no other payments since the tenancy began, and no agent fees, deposit-related fees, or any other fees have been charged at any point.
Hence I wrote to the solicitor asking them to itemise the payment(s), stating what the payment was for, the date of payment and the amount, and they have not replied.
Do I have a right to know what the alleged payments are and if so, in what timescale does the solicitor have to respond in? Or do I have to wait to find out until I am in a possession court hearing if the tenant refuses to leave?
Thanks,
Steve
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Member Since June 2024 - Comments: 8
5:50 PM, 4th June 2024, About 2 years ago
Reply to the comment left by David Houghton at 04/06/2024 – 09:06
Even in a hmo it is down to the tenants to pay the council tax to the council not the landlord
Member Since October 2022 - Comments: 402
9:49 PM, 4th June 2024, About 2 years ago
Reply to the comment left by paul bell at 04/06/2024 – 17:50
It depends, HMO’s come I’m different flavours. The VOA used to use their discretion and make it one appurtenance. I have had correspondence from the VOA they are less keen now
Member Since May 2021 - Comments: 18
10:24 AM, 7th June 2024, About 2 years ago
Reply to the comment left by David Houghton at 04/06/2024 – 21:49
My thanks to you all for your thoughts and comments; to clarify, the property is an HMO, in that each of the three tenants have their own tenancy agreements (all identical), but it does not require to be licensed (as agreed with the council). As the tenants are disabled, they qualify for a 50% “Disregard” on Council Tax, and hence each tenant make a one third contribution to the CT bill, paid to me (the CT bill is a single bill for the house). I then pay the CT bill on their behalf, as they are not individually billed by the council. I make no admin charge for doing this. The Tenancy Agreement states that the tenant is liable for Council Tax (plus utility payments).
I struggle to see how this is a Prohibited Payment?
Member Since May 2021 - Comments: 18
10:57 AM, 7th June 2024, About 2 years ago
Reply to the comment left by Steve Knell at 07/06/2024 – 10:24
I forgot to add that my reading of the Tenancy Fees Act statute is that Council Tax is called out as an allowed payment. Schedule 1 (Permitted Payments), Paragraph 8 (Council Tax) of the Act states:
8(1)A payment to a billing authority in respect of council tax is a permitted payment.
Member Since October 2016 - Comments: 12
9:59 AM, 8th June 2024, About 2 years ago
From 1/12/23 HMO is considered single dwelling for council tax purpose, and the landlord is repsonsible for that, not tenants.
Member Since January 2020 - Comments: 1102 - Articles: 1
10:11 AM, 8th June 2024, About 2 years ago
Reply to the comment left by Steve Knell at 07/06/2024 – 10:57
In this case it is a payment to the landlord, not to the billing authority.
Member Since October 2022 - Comments: 402
10:20 AM, 8th June 2024, About 2 years ago
Reply to the comment left by Kath Jones at 08/06/2024 – 09:59
Hi Kath. Thanks for that. Do you have a reference. Thanks in advance
Member Since October 2020 - Comments: 1137
10:58 AM, 8th June 2024, About 2 years ago
Reply to the comment left by Steve Knell at 07/06/2024 – 10:24
It’s a prohibited payment because you’ve made reference to it being for Council Tax and such payments cant be made to landlords. You should have just called it all rent. It may seem like an unfair technicality, but its the law. Check it with your solicitor.
Member Since May 2021 - Comments: 18
11:30 AM, 8th June 2024, About 2 years ago
Reply to the comment left by Kath Jones at 08/06/2024 – 09:59
Hi Kath – can you forward a reference to this ruling please?
Many thanks.
Member Since May 2021 - Comments: 18
11:39 AM, 8th June 2024, About 2 years ago
Reply to the comment left by Seething Landlord at 08/06/2024 – 10:11
My reading of the act is that paragraph 8 means that payment (by the landlord) of council tax to a billing authority (eg the council) is a permitted payment.
The tenants have no bill against which to pay CT and the tenancy agreement makes it clear that the landlord is not charging for CT; hence as landlord I am offering a free service of collecting the CT contributions from the tenants (all of whom are severely mentally impaired) and paying the CT bill on their behalf. They do not have the capacity to arrange for payments themselves.