Landlords launch legal action as local authority scraps informal notices for landlords

A local authority is facing legal action after scrapping informal notices for all landlords except those who join its own accreditation scheme.

Hull City Council documents show concern that informal notices – usually a letter and schedule of works sent to landlords when a hazard is identified in a tenant’s home – did not protect tenants from unfair evictions.

Informal notices as a result have been scrapped for anyone not part of the local authority’s Hull Accredited Landlords Scheme (HALS).

Landlords will also be charged for where formal notices are issued, which local group the Humber Landlords’ Association (HLA) says will cost around £250.

The HLA has applied for a judicial review of the policy change at the High Court, claiming it goes against government regulations and could result in a homeless crisis and rent increases.

It has been backed by the Residential Landlords Association (RLA) and the National Landlords Association (NLA).

David Smith, policy director at the RLA, told EYE: “We wrote to Hull before expressing concerns that their new structure was not acceptable.

“We are disappointed that they did not take our concerns seriously and we are happy to support a local landlords association in challenging this decision.”

Chris Norris, director of policy and practice at the NLA, added: “By removing informal improvement notices from the inspection process Hull City Council has laid bare its real motivation for taking action against landlords; revenue raising.

“The informal stage allows landlords to remedy problems swiftly, without recourse to law, undue disruption to tenants, or making any payments to the local authority.

“Eliminating this stage, and moving directly to sanctions, demonstrates that the council is more interested in financial gain than positive outcomes. It conflicts with national guidance, creates additional animosity between landlords and tenants, and risks the prosecution of landlords who may not even be aware of issues with their properties.

“The NLA has spoken to those affected, and is providing support to the HLA to find the best possible solution for local landlords.”

The HLA said it also questions why the council won’t recognise other accreditation schemes for the exemption it offers.

Danny Gough, director of Hull-based agency MyPad and chairman of the HLA, said this would impact his and other firm’s clients.

He said: “The HLA is concerned for tenants who risk losing their homes due to this policy change set out in Hull City Council’s proposal.

“The most concerning aspect is at least 65% of landlords in Hull are governed by the banks with mortgages on their properties. Many of these banks are looking for any reason to increase lending rates and to protect their assets.

“Receiving a formal notice could trigger concern for the banks who can, in turn recall the loans, forcing landlords to sell their property portfolio, making tenants homeless.”

He warned that the council scheme requires safety measures beyond the legally required standard, adding: “This will include full re-wiring of older properties, mains powered smoke alarms, escape windows and fire protection between each floor.

“Not only will this cause major upheaval for tenants living in the properties while improvements are carried out, it will also create costs starting at £2,000 per property, which could increase rents.”

Gough said he believed Hull City Council is simply looking to raise revenue rather than protect tenants and has seen no sensible reason for the policy introduction.

He said: “The HLA is urging Hull City Council to allow other professional organisations to be allowed the same exception as the landlord registered under the HALS scheme, but our request has been denied.

“This means professional landlords who provide good quality properties that are safe, legal and decent will be treated in the same way as the small minority of rogue landlords.”

“The only way to stop this policy change is at the High Court. The HLA has the full support from the RLA and NLA and we are prepared to pay the costs of up to £100,000 to fight this case.

“Hull City Council has confirmed the judicial review will be defended and they are prepared to waste taxpayers’ money.”

Hull City Council was unable to comment at the time of going to press, but has previously declined to comment when asked about the case.

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4 Comments

  1. CountryLass

    That is unfair, could it be classed as extortion? “Pay me money to get preferential treatment, if you don’t then… *clicks pen threateningly*”

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    1. qweasdzxc

      From http://www.hull.gov.uk/business/private-landlords/hull-accredited-landlord-scheme-landlords

      The scheme is free to join and if accepted…

       

      So there is no extortion, just some paperwork, a course to attend and working to a code of management.

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  2. Will

    Clear discrimination and highlights Hull City Council’s money raising scheme. Yet another ROGUE COUNCIL with normal levels of arrogance when spending tax payer’s money. If they loose the CEO should resign and those providing the advice to sacked for wasting public money. It seems like a “old mates club” if their own accreditation scheme is the only one recognised and this is clearly discriminatory or far worse.

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  3. Orson67

    Apart from the clearly discriminatory aspect of this matter and the fact that Hull City council are using the scam (opps, sorry…scheme) to raise funds and nothing else, it’s plain to see that Local Authorities are  hell bent on raising as much cash as possible for as little work as possible. They’re so desperate to get their greedy grasping hands on money that the staff would pimp their mother, their wife and their sister if they thought there was a shilling to be made. Truly disgraceful.

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