Sun Money calls for no more delays to vital protection for renters as landlords hand out eviction letters
RENTERS are in fear of being made homeless as landlords hand out eviction letters ahead of a clampdown.
Long-awaited reforms to ban property owners from kicking out tenants who haven’t done anything wrong are expected soon.
But numerous delays to the promised shake-up have left millions of tenants in fear of asking for necessary repairs or objecting to unfair rate hikes because of the risk of eviction.
For each month that the reforms are postponed, up to 2,000 more tenants are being threatened with homelessness.
Today in The Sun we call for NO MORE DELAYS to vital protection for renters.
Here Sarah Davidson lays bare the problems and how to seek help if you’re having problems with your landlord . . .
Landlords selling up
A SHRINKING number of homes available to let, soaring rents and overcrowding are causing a deepening crisis for tenants.
Many landlords are selling up, claiming they are being pushed out by higher taxes, mortgage rates and other costs.
Letting agencies report that across the country there were an average ten hopeful tenants registering for every rented property on the market in March.
This means that landlords can demand record high rents — the average amount for new tenants is now at £1,199 a month, according to property firm HomeLet.
Most councils have to put social tenants in rented properties owned privately — so they are also being impacted by the crisis.
Evictions surge
THE situation is dire for tenants whose landlords have decided to sell their home.
Last year almost 25,000 households faced eviction after getting a Section 21 notice — a jump of 50 per cent on the year before, according to the charity Shelter.
Section 21 means your landlord can turn you out for no reason and with just two months’ notice.
Paul Shamplina, founder of Landlord Action and presenter of Channel 5’s Nightmare Tenants, Slum Landlords, believes even more property owners are using Section 21 evictions this year to allow them to sell up.
He said: “For many, buy-to-let is no longer financially viable.”
Overcrowding and unfit homes
MORE than 310,000 children in England have to share a bed with a sibling or parent because of overcrowding, while two million live in cramped homes.
Many tenants are being forced to live in homes with mould, damp or broken appliances.
Renter groups say that until no-fault evictions are banned, some landlords will continue to force tenants out to raise rents or to dodge their duties to fix issues.
Reform is needed urgently
MINISTERS initially promised the much-needed reforms would be before Parliament last week, but they were delayed.
Dan Wilson Craw of campaign group Generation Rent says: “Section 21 evictions are creating more misery for renters than at any time in the four years since the Government promised to scrap this unjust law.”
The new bill is also expected to make it illegal for landlords and agents to refuse to rent properties to people on benefits.
A separate bill looking at landlords’ responsibilities related to the health risks caused by damp and mould is also expected.
A spokesperson said the Government is committed to banning no-fault evictions and will bring forward legislation “very shortly”.
Your rights as a renter
UNTIL the promised ban becomes law, which will take many months and possibly longer, renters have few rights if they are issued with a Section 21 notice.
Citizens Advice says that if you’re hit with one, your landlord must give you two months’ notice.
If you don’t go by this date, they will start proceedings which are usually lengthy and expensive.
The court decides whether you can be evicted. If you still do not leave, bailiffs can remove you.
But the National Homelessness Advice Service warns that if you are likely to need emergency housing after you are evicted you may not get help unless you have written confirmation from the local authority saying that you can leave earlier.
This means that some charities advise tenants to stay put until the bailiffs come.
Where to get help
IF you are privately renting and your landlord refuses to fix problems, you should report them to the council.
Complain to the Housing Ombudsman if you are a social tenant or your landlord is a member of a voluntary scheme.
You could get compensation if they fail to carry out repair work within a reasonable time.
Call Shelter’s emergency helpline if you’re at risk of homelessness on 0808 800 4444, or speak to Citizens Advice for other support.
‘I fear baliff will knock’
OSCAR HERON is terrified bailiffs will be knocking on his door after being served a no-fault eviction notice last year.
The 46 year old was told he’d be turfed out of his North London flat last September, but despite making enquiries about more than 900 rental properties, he can’t find a landlord willing to take him.
Oscar receives Universal Credit and a Personal Independence Payment after a stress-related breakdown forced him to quit a career in advertising.
He now freelances for marketing firms and picks up acting jobs, which combined with his benefits means he’s always paid his rent on time.
But he’s not earning enough to pass letting agents’ checks – in spite of the council guaranteeing to cover his rent.
The “For Sale” sign outside his home has now changed to “Under Offer”.
Oscar says: “I’m in constant fear the bailiffs will be at my door.”
Trapped? Try no-deposit mortgage
TRAPPED renters have been offered a step-up onto the housing ladder with a new first-time buyer mortgage that doesn’t require a deposit.
Skipton Building Society has launched a 100 per cent mortgage only available to tenants where no down payment is needed.
The Track Record Mortgage is available to renters aged 21 and over who have never owned a property before, at a rate of 5.49 per cent, fixed for five years.
Unlike other no-deposit home loan deals it doesn’t require a guarantor, so buyers won’t have to rely on support from the Bank of Mum and Dad.
Skipton’s research found that 80 per cent of tenants feel “trapped” in the rental cycle, often paying more to their landlord each month than the cost of a mortgage – yet without a hefty deposit they have no hope of qualifying for most home loans.
When checking whether or not applicants can afford the amount they want to borrow, Skipton will ensure that the monthly payments are no more than the average that they have paid over the past six months in rent.
For example, a tenant paying an average of £800 per month would be able to borrow a maximum of £149,153 over a 35-year term.
Renters will also have to pass all the usual affordability tests and credit scoring.
David Hollingworth from brokerage L&C Mortgages said: “Renters will have been frustrated by the need to build a big deposit to meet high purchase prices, while covering steep rental payments at the same time.
“This deal recognises the fact that hard-pressed first-time buyers who have met their rent and household bills over a sustained period of time should demonstrate their ability to meet a mortgage payment lower than their rent, irrespective of the existence of a deposit.”
If house prices continue to fall, borrowers could find themselves in negative equity – where the size of their outstanding debt is greater than the value of their home.
But as the mortgage is fixed for five years, their monthly payments won’t increase during that time.
Chris Sykes of broker Private Finance said: “Paying off some of the mortgage over the five years will mean the borrower could refinance to a better product at a lower loan-to-value at the end of the fixed term.”
But not everyone will be able to qualify because of the strict affordability checks or they will find that the amount they can borrow is not enough to buy a property in their area.
Mr Sykes said that some will be better off renting and saving up a deposit.
He added: “This new scheme may push up demand and thus house prices.”
By James Flanders