SNP councillors in Scotland have come up with an innovative suggestion to improve energy efficiency in private rental properties.
They want councils to have the power to enforce the improvements, fund them upfront from council coffers, and then reclaim the cost when the property is eventually sold.
Two senior SNP members of Glasgow council - Ruairi Kelly and Kenny McLean - want to see rules around Scottish Government grants relaxed to allow the idea to become reality.
The pair claim that many landlords are unable or unwilling to pay upfront for upgrades; this not only impacts individual rental properties but can effectively block energy improvements in larger multi-property units if one or more of the landlords object.
The councillors want local authorities to be able to compel landlords to carry out the work under council guidance, with costs recovered when the properties are sold.
They would also like to see more flexibility about the criteria for private landlord properties.
McLean is quoted on the Glasgow World news website as saying: “The requirement for landlords to pay upfront is a barrier to getting work to improve homes completed. We would support ministers making changes which allow the council to compulsorily carry out this work and recover the costs when the property is sold. This is similar to what already happens with emergency repairs. We get the work done and build recouping the cost into the landlord’s deeds.”
And Kelly is quoted as saying: “We’re not talking about landlords in communities … getting off the hook for the condition of their properties or for their refusal to invest in them. We’re saying that consideration must be given to the sheer numbers of private rented flats in Glasgow, the needs of the tenants and the fact that the current restrictions can mean that adjoining homes can’t get work done.”
The SNP-controlled Scottish Government says it already has a fund available for private landlords to assist with upfront energy efficiency costs, known as the Private Rented Sector Loan scheme.
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What could possibly go wrong?
Have Councils actually got any spare money to fund this sort of thing? I thought loads of them were on the verge of bankruptcy.
There's no mention of interest charges. What a fantastic deal if the Council stump up the money now, attach the debt to the house and you eventually repay it at today's prices in maybe 30 years time. Or would having a debt attached to the house make remortgaging difficult?
Councils have a very poor track record where cavity wall insulation is concerned, so why would anyone trust them with getting a competent job done that won't cause damp problems? I have 2 ex Council flats with the wrong type of insulation in the wrong type of cavities. It's supposed to be getting sucked out and replaced at some point. We've been waiting years for the job to be done and are still way down the list even though the insulation is sopping wet and we have water ingress every time it rains
How many inappropriate upgrades would be forced on landlords with no thought to the consequences? Internal insulation reduces space which can make small flats too small to be main stream mortgageable. Poorly installed cavity wall insulation in narrow or debris filled cavities causes cold spots and damp. How many loft insulation installers only do half a job because they know most landlords will never check or certainly not until the company has ceased trading?
Your comments on insulation spot on.
Stupid
Nonsense
People
Another brilliant initiative by the terminally brain dead SNP.
100% agree - if this goes ahead, I’m selling my scottish properties - it’s not the upfront costs that put landlords off, it’s the costs. This is just enforced debt - and has no place in a civilised society.
Don’t worry about EPC it’s only the tip of the iceberg.
The EPC itself needs reforming to be more measurably objective with regard to heating efficiency. It needs to make adequate allowance for proper ventilation and not penalise people who in rural districts can only burn oil and get a low rating because of carbon emissions.
What about all the other requirements you would need to be Building the property from new to Comply.
We hear about Rogue landlords that didn’t comply when served an improvement notice. The reason being it was not possible to comply even with the best will in the World. That’s why they ignored regardless of any fines the landlord was put in an impossible position. Obviously you either haven’t had a license a License or Inspection, the lists are so onerous and impracticable in occupied property and certainly not viable. I know first hand even though the property was Licensed 3 times previously & inspected twice. They ignored all that.
THE RENTERS REFORM BILL and LICENSING SCHEMES coupled with the all out attack on Private Landlords will make the crash of 2008 look like a Boom.
Honestly they didn’t even need Section 24 as well to achieve the intended consequences that was over Kill.
So a load of enforced changes on landlords. Super expensive uneconomical upgrades. All instigated by some council numpty who has no idea what they are doing or even trying to apply any common sense. Then when you sell, they take a MASSIVE chunk out of the sale price for their poor value works. Will the changes of added any value? No. So the landlord will pay for it.
What about interest and inflation too? Then when you sell will there be any profit??? If so CGT can wipe all that out!
Why are we bothering?
This idea is about as devistating as the Reform Bill. Although once you have lost your properties forever you won’t have to worry about selling and paying anything back anyway.
Start with there own social housing stock before dictating to us
I bet they don't!
Precisely, can't even afford to maintain or upgrade their own! Bonkers.
Another sure fire way to REDUCE the rental stock 😂😂👍🏻👍🏻💰💰
And the answer yet again is SELL UP and GET OUT. Especially if you are unfortunate enough to be in Soviet Republic of Scotland
Extremists should be kept out of power because they do so much harm to everyone's lives.
It is the same with the extremist ideas in the Renters Reform Bill - pushed up rents, caused so many Section 21 notices to be served etc. Terrible!
This is scary and sets a dangerous precedent. What’s to stop the Council then requisitioning rental properties or forcing the landlords to take people on social housing tenants? The Corporates will then be left to house working tenants.
I am surprised any corporates want to move into to all this BTR malarky. Who cares about the demand and returns? With the direction of travel the governments will soon turn on them.
I don’t think they will Nick. Look what happened to the smaller private nursing homes when they were forced out. And then the cost of nursing was allowed to take off. This is what will happen in the the PRS. I wonder who will then pick up tenants on benefits who cannot afford the Corporates’ rents?
Well as you say they did force the nursing homes out. Politicians don't learn. Like when they came down on landlords after Rachman from the 60s-80s they killed it all off. Then they had to introduce ASTs. Now the pendumum is going the other way. And not moderately. It's like a jugganaught. No common sense anywhere.
Matt Pennycrook from Labour wants to introduce a hardship test even on landlords selling. Then there's this article. Then tenants right to buy the landlord's property. Etc. Rent freezes. Eviction bans.... The world is truly mad now.
Absolutely terrifying Nick. I have always suspected Right to Buy will be introduced in the PRS. I have been a landlord for 40 years before Section 21 introduced. My first Buy to Let I bought way under market value with sitting tenants. The property was also in poor condition as the exiting landlord not motivated to improve the property. I took the risk with the property as the tenants were young and would eventually want bigger and better accommodation. That was then. Now there will be sitting tenants on protected rents with the landlord forced to maintain to the highest possible standards on frozen rents. If a landlord has to prove hardship in order to sell that would be devastating. If all these predictions look like coming true all the PRS need to sell up now. I have just sold 3 with huge CGT hit and more to follow. Instead of getting rid of Section 21 a responsible and fair government would introduce 3 year leases to give tenants stability. Incidentally in all my 40 years of being a landlord I have only ever served 1 Section 21. Now the PRS is being weighted so favourably towards the tenant it is essential for the landlord to have some safeguards.
Well said. I used one S21 in in 10 years to get rid of some mould growing Africans. Those that don't know how to live in a house. To be honest a 1910 house, so single skin walls and not well insulated. It was cold. A Grade E EPC. But people from warmer climates don't go well with some of our properties and cold climate at times. Coupled with having 4 kids, her, her brother, her mum it as over populated. All windows shut as they are cold. Lazy too with the council inspector telling me she had wet bathroom floors and towels on the floor. Dealt with the compensation letter too. The thought of no S21 with people like this.... My fear is tenants will have nothing to fear going forward. Worse they will be incentivised with compensation from the Ombudsman. An all but guaranteed win. So landlords will be stuck in a loop of endless problems and claims and no way out. Except death when it comes....Which will no doubt be welcomed!
“So landlords will be stuck in a loop of endless problems and claims and no way out. Except death when it comes....Which will no doubt be welcomed!”
So well said Nick
EPC is not fit for purpose, it needs to be abolished or radically changed. I've said it before on here but, again - we had a landlord who fully renovated a detached house, removed gas central heating and replaced with an air source heat pump system, solar water heating and solar photo voltaics. EPC rating was C and after spending thousands it remained C, the assessor said that if it hadn't been for the efficient lighting and insulation it would have been a D!
..because councils have a history of running things efficiently, effectively and sensibly?
Councils and the Gov can't even get their existing jobs right. - can anyone name any job the Gov has taken on which has actually come in on budget?
No!
Meanwhile in Birmingham, A former landlord has been ordered to pay a council tax demand dating back nearly 20 years.
Deen Adam, who owned several properties in Birmingham, was shocked to open a letter from an agency working on behalf of Birmingham City Council, demanding he pay £514 for alleged missed payments in 2006 by former tenants who lived at the address in Runcorn Road, Balsall Heath (pictured), reports the Birmingham Mail.
In the letter, debt firm Equita wrote: “You have been sent this notice of enforcement because you have not paid money you owe. A liability order was issued by the court for non-payment of council tax due to Birmingham City Council on 16/08/2006 for a period up to 08/12/2006.”
Adam questioned the timing of the letter and told the paper: “The property I owned had tenants in at the time. The council should be contacting them for the non-payment, not myself, the ex-landlord. I’m no longer a landlord and I’m suffering with long-term health issues and in receipt of disability benefits. How has it taken the best part of 20 years to discover this cold case?”
Birmingham Council says the former landlord is being held liable because information he provided conflicted with other tax records. A spokesman tells LandlordZONE: “As we were unable to establish the validity of the lease or the occupation of another individual, we therefore held the landlord liable for an empty period.”
Good evening fellow Landlords - I am hijacking another post to let you know that Reform uk have issued their draft manifesto and they have included banning the RRB and scrapping the tax changes, If you go to their Facebook page there is a link there. As a pleasant change they ask for feedback and input which neither of our current 2 main parties seem willing to do. I hope you will have a look at it. Happy reading,
Thanks, Catherine.
It would be useful if, perhaps, there was a thread where landlords could post things like this and, indeed, like my message about Council Tax claimed after 20 years!
Perhaps it could be called Members' Muses and be at the top of the page?
Thanks Catherine for the information! I've taken a look at their publication - "Contract with the People 2024"
As you said, they address tax and the Renters' Reform Bill, stating:
"Scrap the 2019 tax changes for Landlords. The tax system should encourage smaller landlords into the rental markets, not penalise them.
Abolish the Renters Reform Bill. Existing legislation was adequate to address bad practices. Instead we will boost the monitoring, appeals and enforcement process."
Perhaps we shld start our own site
May I just add that I have never been politically active but I have been horrified by the actions of our current govt and the clear unfitness to govern by both of our main parties. Can I ask all Landlords reading this assuming you can support the Reform manifesto please forward it to as many people as you can. It will take a huge upheaval to change the apathy and historical voting patterns of the average vote. Govt have refused to listen to us and no doubt Labour will be worse so perhaps we can frighten them a bit if they know there is an up and coming player to challenge the status quo
When will the government learn, they are the cause of homelessness.
If they stop hitting landlords, there wouldn't be a problem.
Another tenant contacted me the other day asking if I had any houses to rent as her friends landlord was selling up and she is desperately trying to find a new home..
I get messages from tenants asking the same question ever month or 2 and I feel sorry that I can't help them.
The government has no council houses available to help them, yet they keep bashing landlords until we are forced to sell.
When we all do and their mates in BTR only take the top tenants, what happens to the rest of them?
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