Rent increases (Scotland)

Martin Lewis: "Today's pod is all about renters' rights. Some meaty need-to-knows, including your rights if they try to put the rent up, what you can do if the property needs repairs or is damp, can they reject your request for a pet, how to deal with letting agents and council landlords and lots, lots more. We're going to deal first with questions all about England and Scotland. Then, at the end, some special notes for those of you in Wales and Northern Ireland to point out where your rights differ."I'm delighted that joining me are Ben Leonard, who is a policy officer at Acorn, Julie Ford, former Housing and Homeless Law specialist advisor for Citizens Advice and founder of Gothard Rowe Landlord Services, which mediates disputes, and Emma Jackson from Citizens Advice Scotland to help us try and navigate the differences between the situation in Scotland and the rest of the UK."

‘Can a private landlord hike rent by 10% a year?’

Martin: "So let's start with @anowlcalledsage on Twitter: “Please confirm that there is absolutely nothing a renter can do to stop their private landlord hiking their rent by 10% a year like mine did, other than move from the place they've lived in for 10 years.” Ben, why don't you start?"

Ben Leonard (Acorn policy officer): “Yeah, so there's not quite nothing that can be done. You can challenge rent rises by a tribunal. So that's the good news. The bad news is that the system really doesn't work that well for renters, for two reasons, really: first is it takes a long time, and landlords can basically evict you using Section 21 before you actually get through the process.”

Martin: “Section 21. That's ‘no fault’ evictions, so you don't have to do anything, they just don't want you anymore – go.”

Ben: “Yeah, so that's one thing. And then the other problem is that it's not risk free for the tenant either. So, the tribunal can say, 'actually, having looked at the other market rents available, we think that the landlord hasn't risen your rent enough', and they can actually increase the amount by which the rent is risen. So consequently, I know of nobody who's even really gone down this route, because either they get evicted before they get a chance to, or they're too worried that their rent will go up even more than the landlord."

Martin: "So, you could go and argue that 'my rent rise is unfair', but it doesn’t really matter. Because if you’re going to lose it, and the landlord doesn’t want it, they’ll kick you out. Julie, anything else to add on that really?"

Julie Ford (founder of Gothard Rowe Landlord Services): “Yeah, I agree completely with what Ben said. And it is just one of those systems where it just doesn’t really work. It’s great on paper, but the system doesn’t work. I do know of tenants that have challenged it. And unfortunately, they’ve had the same outcome that Ben just said there – they have actually had their rent increased higher than what the landlord put it up to.”

‘No fault’ evictions are banned in Scotland

Martin: “Emma, any hope for those in Scotland. Is it different?”

Emma Jackson (Citizens Advice Scotland): “Yeah, definitely a few differences here. So first off, ‘no fault’ evictions are banned here in Scotland. So I think that's an important thing to note. And we've just had some recent changes come in, from the 1st of April, we had this temporary rent increase rent caps as emergency cost of living protections to really help tenants. But as of 1 April, that temporary cap on rent increases no longer applies. So, same as you guys in England, landlords do have the ability to increase rents. They've got to give tenants notice; they can only do that once every 12 months.

"But we have seen some strengthening for at least the next 12 months on the rent adjudication process. So, a bit similar to what Ben was talking about, there's an independent process for tenants to get that rent reviewed. And that's been sort of tightened up over the next 12 months so that hopefully, as few people have that very steep increase as possible. One difference is when it goes to that review, they guarantee that they will not increase it from the amount that the landlord is suggesting. So that's a little bit of protection…”

Martin: “So, it means there’s less risk going to review at least?”

Emma: “But what we're hearing from advisors in our CAB bureaus across Scotland is it's looking really complicated, and they're finding it hard to get their heads around exactly what this process means. So, if they can’t understand it, what hope is that for tenants? And we are a bit worried that then that means there's going to be an additional barrier. And we know that people can be really scared about approaching redress processes, because they think the ultimate outcome is going to be well, I'm going to lose my home so I may as well stay put and potentially suck this up. So maybe some bits that are a bit better, but a lot of people are really concerned about rent hikes here, too.”

Martin: “So we've got the concerns in Scotland there, of course, I mean, there's also a reflection for the rest of the UK because there is the discussion of banning Section 21, the discussion of banning ‘no fault’ evictions here. So, I mean, by the sound of that, it wouldn't be a panacea, it wouldn't cure everything, would it?”

Ben: “No, it would help I think swing the balance of power a little bit in the other direction, though, I think at the moment, it's not just with rent rises, so many things like repairs, as well, tenants are too scared to exercise the rights that they do have, because there's so much leverage on the other side i.e. the threat of homelessness, or even at least having to move house. So, it wouldn't fix everything, but it would help almost every aspect of renting, frankly, if landlords didn't just have that big red button, they can push.”

Martin: “And of course, at the time that we're recording this, we simply don't know if the promised end to ‘no fault’ evictions is going to come or not. It is a political hot potato. We are a practical programme, so we're not going to go into that."

The bill to ban ‘no fault’ evictions in England has had a setback

Martin: “Just a quick update on this. Now the general election has been called the bill that was to ban Section 21 ‘no fault’ evictions has not been put through parliament before Parliament was disbanded. So it's all going to have to restart again once a new government gets in place, and it will depend on the views of that new government as to what happens."

‘Do I have any control over how much my landlord can increase my rent?’

“This question is very similar, but we'll do it anyway. Graham Wheaton: “As a renter do I have any control over how much my landlord can increase my rent by? They've just come out of a fixed rate mortgage and because they asked me to open their post as they're in Australia I know what their new monthly mortgage payments are. However, I'm expecting them to increase the rent by an additional £300 to £400 over and above their £400 mortgage increase. They were already charging £300 above the original fixed rate. Do I have any right or redress?”

That I suppose there is de jure and de facto isn’t there? By law, what I’m hearing the answer's ‘no’.

Julie: “That's correct.”

Martin: “But not all landlords are horrible. I mean, there are many reasonable nice people who want to keep good long-term tenants and look after them and help them and they're trying to do their best to work within the situation that they're in. So, you’d always talk to them wouldn’t you?”

Julie: “Yeah, absolutely. I mean, a good tenant is worth their weight in gold, you know, if they look after the property, they get on with the neighbours, that is worth everything to a landlord. Increasing the rent is something that is going to come, it comes with inflation, it comes with any type of industry…”

Martin: “Mortgage rates have gone up. So many, many landlords are paying mortgages on their properties, their costs have gone up, like most firms do, they're going to pass it on to the customer.”

Julie: “Absolutely. But it's how you pass it on. And you need to also make sure that it's affordable for the tenant to maintain. Because even though the landlord's costs have gone up, the tenant’s wages may not have gone up, obviously they've got other costs - council tax, their electricity, gas, that's all going up. So, you still have to do those affordability checks with tenants to make sure they can afford the rent increase that you're putting forward.

Martin: “When you say you have to, what do you mean by that?”

Julie: “Well, it's more of a best practice than an actual set-in-stone mandatory thing to do. And most landlords out there that are increasing the rent are having that conversation with tenants because they want to keep a good tenant in."

Ben: “Even if your landlord isn't the nicest person in the world, there are still things you can do without having to go to the tribunal. So, we at Acorn have successfully fought rent rises or renegotiated rent rises up and down the country. And a lot of that is just bringing to light what's going on. The media are very interested in rent rises at the moment. So it's getting in touch with local journalists if your rent’s doubled, they'll want to run it. Getting in touch with the local politicians, and crucially is all joining a renters’ union so that you can use the solidarity of the people in your community and also use their experience and bring to light what's going on, you can pressure landlords into something more reasonable because nobody likes to be the villainous landlord in the local press.”

Martin: "And the same way as any employer. Assuming that the landlord is going to rent the property out again, there are costs to bringing in a new tenant that an ongoing tenant doesn't have; you've got the onboarding costs. It doesn't match up on the seesaw very well against Section 21 ‘no fault’ evictions, but you do have a little bit of weight that if you can make yourself a relatively attractive tenant and say to them, 'but I can't afford that much but I can afford this much, and that way, you don't have to do a recruitment. So for you, it would actually see you'd still get more money in in total because you're not doing the recruitment, but you're keeping me and you want it to go up 7% I'm asking for five and a half because I've worked out I can do five and a half percent'.

"I mean, don't be scared to have those conversations. Hopefully if it's a good landlord, they'll work it out. They want a good tenant and they're not trying to hurt you. There are some horrible landlords out there as well as there are some nice ones. So, you never know what attitude you're gonna get.

"The interesting thing for me – you’re all the specialists, that’s why we're doing this Not the Martin Lewis Podcast today – but in many of the reasons people say to me, why do you always talk about mortgages, and you don't talk about rents when I went and tried to get the government to help on mortgages? It's simple, because when you're talking about mortgages, there are what 10 players out there? I can sit in a room with 10 people and the Chancellor - and we did, we had a mortgage Summit - and you can try and negotiate an improved situation for people who are making serious decisions. You can't do that with landlords, because, okay, there are some big conglomerates out there doing it. But often it's a one-on-one relationship with an individual. And that means it's a much more bespoke relationship that is far more difficult to get through. And that's sort of half the joy and half the problem, isn't it?”

Emma: “I was just going to come up with maybe another bit of a difference that we've got here in Scotland. So we've got a landlord registration scheme, which I think has helped to go some of the way in this direction. But one of the things that we're acutely aware of is that we need more data, we need more insight on who landlords are, on the private rented sector in general to be able to do exactly what you're talking about Martin, to have that insight and intelligence so that we can give people the right advice and through our network of bureaus not just in Scotland, but all the way across England and Wales, local bureaus do provide advice to landlords as well.

"And we know here in Scotland, landlords have been struggling with some of the changes and we'd actually argue that there's a need for more training and more education so that landlords can fulfil the duties that they have. So, they can deliver on their rights and responsibilities. Because I think we all know that there is such a high demand for housing all across the United Kingdom and that means we need to think about all of the different aspects of the housing ecosystem that we have and that means keeping landlords in the housing system, who want to fulfil their duties, who want to fulfil their responsibilities and have good tenants and have a good relationship. So, we need to think about what support they need in this as well.”

In London, you could be owed thousands in back rent if your home isn’t properly licensed

Martin: “It’s worth noting in London you should check your home is properly licensed - you can go to london.gov.uk. to the property license checker. If the landlord hasn't followed the rules for licensing, you could be owed £1000s of back rent. But that's only London. And Scotland has its system too. Is there anywhere else?”

Ben: “Yeah, absolutely. So, I actually took my landlord to court, because I was living in an unlicensed HMO. This was a few years ago now.”

Martin: “HMO: Home of Multiple Occupancy.”

Ben: “Exactly, so it varies from council to council but usually five or six or more sometimes London and places like that it’s three or more. It’s an extra set of licensing that’s needed to meet certain minimum standards. And my landlord didn't have a license, so we got 80% of our rent back. There are also other selective licensing schemes around the country. So, it's always worth checking what the regulations are, where you live, and see if your landlord’s in violation of those. And it's not just about getting the rent back and get that nice payday. It's also about making sure that the home you live in is safe to live in.”

Martin: “There isn't a such a thing as a fair rent, is there?”

Julie: “There isn't. There used to be and some of those old tenancies do still exist, but they're very, very rare. But no, there isn't anything such as a fair rent, when we're looking at market value, that’s really what people are willing to pay. And if we've got people coming overseas, students that have got more money in the bank, that helps push rents up as well.

“The only thing I'd say Graham is I wouldn't make the assumption that they're going to continue the same margins as before, they may have looked at their total costs, and they may just be adding your mortgage on top. So, it may not be as bad as you think.”

‘Can my landlord take me to court for rent arrears I wasn’t aware of?’

Martin: "Let's go into the next question here. This is Dawn Spooner. “In August last year, my agent increased my rent by 7%. However, I didn't receive the letter notifying me of this. In November, I received a letter notifying me of action to pursue rent arrears. I've challenged this on the basis that I wasn't aware of the increase. Can they take me to court?” Well, the answer to that is always ‘yes’. But you don't know what the court will do. “I increased my rent standing order in November for the new amount.” So, this is primarily a question about communication of rent arrears as opposed to the rent arrear itself."

Julie: "Yeah, absolutely. And given that situation there. No, they can't take her to court is the answer to that question."

Martin: “Mine was slightly flippant in that you can always take somebody to court whether you win or not is the issue, you can take someone to court for being a poo face, but it doesn't mean your case isn't gonna be thrown out by a judge. But you're right, yours is a better way to do it.”

Julie: “No, absolutely. So, the whole point of serving a notice with regards to rent increase, which is usually done under Section 13 of the Housing Act, it's a prescribed form that the tenant must receive. And the whole point is the tenant must receive it. And it's from the date of receipt that's important. So when we're looking at how this tenant’s notice was served to them, when they've received it, that’s extremely relevant to the point of how someone's then going to proceed with that. If they haven't received that notice, they're not expected to be liable for the rent arrears."

Martin: "How do you prove you haven’t received it? It’s a bit of a difficult one, isn’t it?"

Julie: "The onus is always going to be on the landlord or the agent to prove that the notice was served. So, you'd have to get proof of posting, certificate of service, proof of an email that's been opened, acknowledged, for example, all of those are the ways that a landlord and agent can prove the notice has been served, but also the tenant’s action. Now this tenant actioned it as soon as she was made aware, which means she then started paying her rent from the November. That's the point of action. So, we will then take the fact that she's paid the new rent, she's accepted the new rent, but only from that November. So, it'd be very, very difficult for the agent or landlord to prove anything behind that."

Martin: “I mean, it's also two months at 7%. It seems a little bit, because it hasn't been communicated, it would be quite a heavy action to go to court on the back of it. So practical terms. What does Dawn do? How does she communicate? Would you do it by letter? Would you do it by phone? How would you communicate with the landlord? To try and stave this off? No one wants a big hassle here."

Julie: “No, absolutely, I would always say pick up the phone first, very simply because everybody reads an email or a text message in the frame of mind that they're in, not the frame of mind it was sent. So if you've got the hump and you receive something, that's how you read it: with the hump. So, I say pick up the phone, you can hear someone's tone of voice, you can work with them better in regards to how that's going to move forward.”

Martin: "A smile in your voice helps. 'I'm so sorry. I just want to understand…I don't want to be in rent arrears. I didn't get the letter. I've started paying months ago. Can we just get on with this?'"

Julie: “Yeah, absolutely. And ultimately, for the landlord as well, he's still got to wait for that tenant to be two clear months in arrears before he can action anything. That's not going to happen when there’s only 7% difference between the rent that they have paid, and the rent that was increased. So really pick up the phone, have that conversation, if you want to then follow it up with an email to just go this is what we talked about. So, you've then got it in writing, that makes it even more secure."

Martin: "Okey dokes."

Ben: "So this, I think there's an element of this, which is relevant to our previous discussion as well around challenging a rent rise, which is that so this person asking this question, started paying the new rent and if they did actually want to challenge the rent rise later down the line, they couldn't do that now, because they've already paid the higher rent. So, if you get a rent increase, and you don't think it's fair, and you want to challenge it through the tribunal, don't pay the higher fee, because that's seen as accepting it."

Martin: “But you should notify your landlord, you should say, I'm going to continue to pay my fee without prejudice or something in that level, I presume, that you're not going to pay the higher fee. Don't just keep paying your old fee, because then they will assume it's rent arrears. Is that right?”

Julie: “Yeah. So, the issue you've got here is timeline. When you want to challenge your rent increase, you've only got a month to do that. So that's basically the month’s notice that the landlord has given you, you've got that month's notice up until the new rent due date to make that challenge. So it doesn't actually allow you to carry on paying and paying and paying your old…"

Martin: “Although I'm still listening to your first answer, which is basically challenging rent rises is a really tough thing to do.”

‘My rent has increased by more than the maximum stated in my tenancy agreement’

Martin: "Lucy Pritchard, last one we’ll do on rent rises. “I had a tenancy agreement that stated a maximum 5% per year increase and got one over four times that, what can I do?” So that on the surface looks like a breach of contract. But of course, it depends how long the contract was lasting, and how you enforce it."

Ben: "I think go to your local renters union and get them to go through the contract with you. It depends what's written in there, really. If your tenancy agreement is for five years, with a preset level of rises it’s quite likely, you could enforce that I think and, whether through a court or whether through the court of public opinion, make it known what's happening and make sure that you get a reasonable settlement at the end of it."

Julie: “The only thing I'd add to that is that it depends on the type of contract you've got. So, with an Assured Shorthold Tenancy when it comes to its natural end at fixed term, it can either be a contractual periodic meaning it carries on month by month with all the original terms, or it becomes a statutory periodic, which means the law takes over. So, any original clauses you have don't follow through. So even if she had a 5% rent increase clause in there, if it turns into a statutory periodic, that thing goes in the shredder and no longer exists.”

Martin: “But I presume, going back to the fact that these are not necessarily big companies doing this, they might not have the legal advice either.”

Julie: “Absolutely."

Martin: “So I mean, it isn’t a question - when a bank tends to do this, while they can often be wrong, but it takes big resources to fight them as well which I’ve spent my career doing but this isn't necessarily some big industrial conglomerate who's got its own in-house lawyers. So, they may not even remember they had the clause in the contract.”

Julie: “Quite possibly.”

Martin: “I want to move on to repairs now. Again, after rent rises this was the next biggest one. General unsuitable conditions… the amount of people who have damp in their homes, it is staggering the number of messages we've had on that."

'What can I do about a landlord who won't do the necessary repairs?'

Martin: "Pam says: “My son is a private renter. The house is basically falling down around him. It's an old terrace. It's full of damp and the walls are cracked. He's told the landlord multiple times, and they say it's because it's an old building. What do I do?”"

Ben: "Well, one thing you can do is go to the council and complain to environmental health basically, and the council can ultimately issue an improvement notice. Again, there's a problem with this process is the same as the other one really, there's a bit of a theme here that it takes a long time, and you can get evicted while you're doing it. Once the council has issued an improvement notice you are protected from Section 21 ‘no fault’ eviction but they usually give them a window before the improvement notice is issued in which to make the repairs and it's in that window when they can issue a Section 21, get you out and get someone in who they think will be less trouble.”

Martin: “But once you've complained to the council and the council are investigating, would the council not follow through? Is it tenant dependent, the council following through? Or is it once a complaint’s been made?”

Julie: “The answer is yes, it is tenant dependent because once the tenant is evicted, and the property is no longer tenanted, then there is no longer a breach of legislation because the property is empty. So, it would need a new tenant to move in and make a complaint of their own."

Martin: “So that's why it is worth the landlord, on a tactical basis, getting rid of them. It's really interesting listening to this, this isn't a subject I follow. It must be very frustrating for renters who are having problems with their landlords to be dealing with all these, because you're pretty impotent, aren't you?”

Ben: “This is why we exist at Acorn, this is exactly the problem that we've identified in society is that the very few protections we have don't really function anyway. So that's why you need strength in numbers, you need the community to back you up. And you need to use whatever pressure we have available to us to make landlords, unscrupulous landlords that do exist, make them act properly, because the law’s really not that useful."

Martin: “Tell me things are a bit better in Scotland, Emma?”

Emma: “Repairs are a big issue here as well. We did some research here last year. And many of the issues that we've been discussing have been bubbling up. And it's really important that people know where to go and get advice. So, through your local CAB, organisations like Living Rent. It's really critical that renters know that they do have rights, that they can advocate for themselves, and they can speak up because having a safe, affordable, secure home is vital for everybody. It's like the foundation of all of our lives. And that equally applies to tenants as much as homeowners or those in Social Security. So, whether it's repairs or rent increases our message over and over again at Citizens Advice is Get advice, know your rights, get that support to challenge."

Martin: “I know but I don't mean to knock you. But it's slightly frustrating, because I'm hearing the advice is: “you're struggling - even with the advice - you're struggling to have much behind you, it's tough as a renter, this is not a balanced situation, particularly at the moment. I'm going to move on. So, I'm not meaning to knock you. I mean, you're absolutely right in your sentiment."

Emma: "For us, I think maybe where we see some hope, Martin, is we have a housing bill that's moving its way through the Scottish Parliament. There are seven key parts, a lot of it is focused on renters. So rent controls, keeping pets, increasing homelessness prevention. And that's where we see we can really strengthen some of the areas that people are struggling with. But you're right, there's absolutely more that can be done.”

Martin: “Let's do this question. We’ve got a voice message here.”

‘Has it become more common for landlords to allow pets?’

Martin: "“Hi, Martin. It's Claire from Suffolk. I remember seeing ages ago that the law was changing and that landlords would have to allow pets. My daughter is currently looking for a rental and would like to take a dog. But the vast majority of adverts still state no pets, can you let me know what's happening please and when - or even if - it will be changing.”"

Julie: “So what happened was the government introduced a model tenancy, which they put on their website for people to use so that everyone had a standard document. And in there, it was much more pet friendly. But there was no legislation that set in stone that landlords have to accept pets. The Renters Reform Bill that's currently going through Parliament is again a bit more pet friendly, but it does still give the landlord the right to refuse if it's a reasonable excuse to do so. So, for example, in a block of flats where the freeholder says no pets, that's against the superior lease if then the tenant does have a pet. So, there's still going to be options for landlords to refuse pets if they want to.”

Martin: “Do you think generally the changes will mean it will be more acceptable to have pets, and it will be easier?”

Julie: “I think overall, it is actually more acceptable to have pets. I know more and more tenants in properties that do have pets, smaller pets, obviously, so cats, smaller dogs. But with the Renters Reform Bill, they're also going to be looking at the welfare of animals. They're going to be looking at the welfare of the animal. So, if you've got a one bedroom flat, they're not going to be accepting a Great Dane because that's not fair on the dog."

Martin: "Correct."

Ben: “It will make it so that everyone’s playing by the same rules and it no longer depends on the goodwill of your landlord. So if you have a reasonable request for a pet, it can't be refused. Whereas now a landlord can arbitrarily say no, you can't come here with a dog. It almost puts it on the same level as like putting up posters and redecoration and things like that. So the landlord can refuse if you want, say, a horse in a bedsit, but realistically I think it will make life a lot easier for pet owners.”

Martin: “So you may be able to have a budgie but it doesn't mean your rent will be cheap. Sorry. That was the best I had, I'm allowed one in the programme.”

Do you have more rights if your council is your freeholder?

Martin: "TK @moggiecat, interestingly. So @Moggiecat asks, “Wonder how many rental leasehold properties have a council as freeholder. We as leaseholders have had a problem with a gutter pipe leak going on for years. Black mould and wet walls. Council takes ages to do anything. Says it's fixed then the issue is back. The tenants have suffered.” Do you have any more rights if your council is your freeholder?"

Julie: "You do have a few more rights because it comes under different legislation to ordinary AST or Assured Shorthold Tenancy tenants as we know them. So this is then leaseholder and freeholder legislation. So to answer the number question, there's actually around 300,000 properties that are freehold by the council. What they can do is make a formal complaint to the council first of all. When that's not satisfied, then they can go to the housing ombudsman, which then governs the councils and housing associations in England."

Martin: "So you do have a bit more punch?"

Julie: "Yeah, you do."

‘What are my rights in regards to the mould in my flat?’

Martin: "Let's go back onto damp. I'll just do a couple together here. Helen proud. “Are you entitled to compensation for issues of severe damage which arose prior to occupation, but the landlord took seven months to repair and move out tenants. Environmental health had to tell the landlord what to do.” And Cecilia Allen, “Is it okay for my landlord to tell me that I need to just keep the window open when I complain about black mould?”"

Julie: "I think realistically, it's about understanding how the mould and damp is actually being formed. I mean, sometimes they are structural, which is 100% the landlord's responsibility. And sometimes unfortunately, it can be tenant lifestyle. And in those situations, yes, making sure you ventilate the property correctly would help towards those. It's not about whether it's legal to say to the tenant ‘just open the window’, it's more about actually getting to the source of what the damp or mould actually is."

Martin: Whose responsibility is that - the landlord or the tenant - to get to the source?

Julie: It will be the landlord's responsibility, because that comes under his repairing obligations as the structure of the property. So that's his starting point. And then from there, once you know where the source is, then you can decide…

Martin: So if it were to be the tenant that was causing the damage, then the landlord should tell the tenant that you need to change your behaviour in a certain manner. But if it's structural, then it's for the landlord to sort. And how quickly does this need to be done?

Julie: That's another beauty that comes with all the legislation. We don't actually have timescales. The Fitness for human habitation Act says the landlord must act in a ‘reasonable’ time, but nobody has actually defined ‘reasonable’ in law. So it's open to interpretation.

‘What should I do about a letting agent who’s acting illegally?’

Martin: "Just a quick one now for you on letting agent fees and deposits, Francesca Hood: “A letting agent states that the holding deposit is fixed. It's more than one week rent and is non-refundable.”"

Ben: "Illegal."

Martin: "Illegal, right. We’ll come a bit more detail. But that’s a good start, or a bad start.
“A letting agent states that they're offering an assured tenancy, that they're exempt from the Tenants Act 2019, which prohibits fees, application, referencing.”

Julie: Illegal.

Martin: Illegal. That's not a good agent. I think so there's two questions that come. First, what do they do about it? And second, who do they report this agent to?

Julie: The first thing they do is report the agent to Trading Standards. They're the ones that get involved in actually governing how agents behave, especially with the Tenant fees act, they'll get involved with that as well. They can also report it to the local council, the local council will do enforcement when it comes to the Tenant fees act. It can also go to the first tier tribunal, which is the same place that you do your rent appeals. When you don't like your rent increases trading

Martin: But, trading standards. If I'm right, we'll deal with the agent being a bad actor. But they won't deal with your individual case, will they?

Julie: It depends on the severity of the case. So in this situation, there are multiple breaches. So for a start, the holding deposit can only be a week's worth of rent, it can be less, but it can't be any more. And it is refundable. There are certain aspects…

Martin: What’s the difference between a holding deposit and a normal deposit?

Julie: “So a holding deposit is literally a piece of money that you hand over just to secure the property. So they take it off the market while they're doing your referencing and everything like that. The actual security deposit is a larger sum that’s secured against your behaviour as a tenant.

Martin: And has to go with a third party.

Julie: Yeah, one of the three deposit schemes out there.

Martin: Yes, fine. So the holding deposit can't be more than a week. So the fact that it's more than a week, that's the bit that's illegal.

Ben: And they have to refund it to you if they don't let the property to you. Otherwise, it's a fee, which is what was banned.

Martin: Yeah, fine. So it sounds like you have a bad actor there. You need to report them to Trading Standards. We wish you the best with that. Francesca, maybe you could let us know how you get on with it, please.

‘Why can't my renting record help me get a mortgage?”

Martin: "I'm going to move on now to one that comes a little bit more into my purview. “Why can't my renting record get me a mortgage?” Wendy Ryecraft: “If you can prove that you've paid rent for years never missing a payment, why can't you get a mortgage?

"Well, the honest answer is because the system doesn't work that way. Mortgages are governed based on affordability and governed on your credit score. Now there is a mortgage from Skipton Building Society that will give you 100% deposit using your renting record as a track record towards a mortgage that can help some, but the terms and criteria are a little bit difficult.

"The other thing I would suggest to people - I'm going to let you guys come in on this, but hey, I'm allowed to answer one aren’t I? - is that paying your rent on time can help boost your credit worthiness, your credit rating. There's the Rental Exchange initiative. That's one that's signed up to by landlords and social housing providers. If your landlord doesn't have that, you can use Canopy which uses open banking to add payments free to your Experian credit file (that's one of the three big ones), and CreditLadder that reports for free to one of the credit reference agencies. So use Canopy for Experian, and then use Credit Ladder for one of the others. You can then pay them more to get the third credit reference agency. But frankly, if you're covering Experian, and Equifax, you're doing pretty well to start off with.

"It won't fix everything. But improving your credit score can help and speaking to a mortgage broker to see what's available can help. Getting yourself a lifetime ISA where, as long as you're buying a property under £450,000, and you're a first time buyer, you get a 25% boost towards anything you're saving on a deposit, will help. But nothing completely solves the problem. Acorn, I bet you have issues in this area."

Ben: “We deal with largely renting issues, though, what we want to see ultimately, is the private renting sector diminished and homeownership and social housing increase. So we would support any measures which would make it easier for people to get out of the private rented sector and own their own home for sure. But this is not particularly my area of expertise."

Martin: "Private rented sector, I mean, it does have some benefits for people who want to move from area to area and have flexible… and want to go through that. I mean, it's not an ‘all bad’ is it?"

Ben: "I would say that most people in it now probably would rather be in another type of tenure. From my experience. There's massive advantages to either being in social housing where you pay less rent, and you get more support in various ways, or in homeownership with obvious benefits. Not many people want to be paying someone else's mortgage and be in very insecure housing to boot."

Martin: “Julie, where are you on that?”

Julie: “I do have to disagree on that. Ben, to be honest with you, I mean, I’m a private renter myself, as well as being a landlord, so I'm on the fence. But I think private renting does have a place in society. Ultimately, there's 4.6 million people that currently rent in the private sector, that must be for a reason. We know there's not enough social housing, don't get me started on that topic."

"But it helps for people that need to be nomadic, and people that move for jobs, people that only need to be in an area for a short space of time. It does help with certain people's lifestyles. And I think there will always be a place for the private rented sector, because it suits a certain sector of people. There will always be landlords, there will always be private renters. Yeah, absolutely. I think people owning their own home is a fantastic goal. It's not achievable for everybody, unfortunately, and social housing is there to pick up those that are unable to do either, which again, is absolutely how it should be. But I don't think we should eradicate the private rented sector. I'm still 100% behind that."

Emma: "Just to add to that, that this is about choice. It's about people choosing what's right for themselves, what's right for their families. And if banks and credit providers can do things that will enable people to take that next step forward for them that's the right choice for them, then that's a good thing. We need a diverse housing ecosystem, there is a place for the rented sector, for social housing, and then there's a place for homeowners as well. And we just need to keep that diversity in the housing system.”

Martin: "I’m gonna go back to the practicals, although it was fascinating. Thank you."

‘My landlord sold off some of my garden without telling me – what are my rights?’

Martin: "Emma Shepherd: “My landlord sold off a chunk of my garden to developers a couple of years ago without telling me. They've offered no rent rise this year as compensation. What are my rights here? Also, they keep coming round to do or look at things in the garden without notification or permission.” Well, that shouldn't be allowed, surely? That isn't allowed?"

Ben: "No, you have to give notice. A landlord has a right to access their property. But the tenant has a right to peaceful enjoyment and notice and the landlord should arrange a time that's suitable for the tenant. And if they're not, that is a violation of a tenant’s right."

Martin: “And the claim on the no rent rise. You know, they sold off the garden, but they'd rented the garden, they sold off the garden. You probably got more than the no rent rises here, haven't you?”

Julie: "Yeah, absolutely. Ultimately, that's a breach of tenancy, because the four corners of that tenancy agreement tell you everything that you're entitled to and what you're paying your rent for. So if the landlord has sold off some of the garden and hasn't altered the tenancy agreement to show that, then absolutely she's entitled to take that to a solicitor and see what they can do for her."

‘My letting agent won’t give me a tenant reference – what can I do?’

Martin: "Okay, I've got one final question for you. Let's see if we can try and get a positive answer. You guys have all been brilliant, but I do find the situation rather depressing. Maura McNally: “I'm 57. I private rent from letting agents. They point blank refused to give me a tenant reference so I can apply for social housing. Without it. I can't complete my application. Are they allowed to do this? I'm stuck between a rock and a hard place. I'm terrified of being stuck in private renting as I get older.” So it's coming onto your point earlier, Ben. “Yes, I work full time and I could afford to live without any financial support.” So can they refuse to give her a tenant reference?"

Ben: "I don't know about the law. But I know that if this was one of our members, we would do everything we can to get that reference for them. It sounds malicious, it sounds unwarranted. And it sounds like it's having real impact on that person’s life, so we would campaign to get that reference. I'm confident we could secure it."

Martin: "Is there another way to get a tenant reference from someone else? Or?"

Julie: Yeah, absolutely. Ultimately the tenancy agreement is between landlord and tenant, not letting agent and tenant so I'd bypass the letting agent and I'd go straight to the landlord and say, Can I have a reference, please.

Martin: Very depressing. Very depressing to hear that. Fingers crossed that works. Emma in Scotland. Anything to add on that one?

Emma: “Yeah, I think building on that point of talking directly to the landlord and maybe getting some advice from another organisation there just to really communicate the very human element in this and just how important it is in this woman's life to be able to move into social housing. And yeah, it's a really difficult tough one to hear.

Martin: Maura, we hope it goes well for you. And you get that reference, and you make the right choice for yourself of what's right and do let us know if it works. I wish you the best. Thank you so much. To everybody who's asked questions today. It really has been enlightening for me, I've enjoyed it very much. And special thanks to Ben Leonard from Acorn community bass union, Julie Ford, from Gothard Rowe Landlord Services, and Emma Jackson from Citizens Advice Scotland. Thank you, all three of you, so much.

How do things differ in Wales?

Martin: "Now, all the questions so far has been focused on England and Scotland, and indeed, many of the answers for Wales and Northern Ireland are similar. But I want to take a look specifically at the legal differences. Let's start with Wales. Here's Ceri Murphy from Shelter Cymru."

Ceri: "Hello, shwmae, Martin and podcast listeners. So just picking up on the questions that you received into the podcast and the key differences in Wales. Just like England and Scotland rent increase is a big problem here in Wales as well. So, landlords can increase their rent here once a year under the terms of the contract, but must do so using the correct prescribed form. So, via notice. However, there is no cap on that rent increase level.

"Additionally, there was a question on holding deposits taken by agents. Again, the Renting North Wales Act has banned certain fees and deposits which agents can take and fortunately holding deposits can still be taken here. And much the same as in England that's one week maximum and it has to be given back if the property is not taken up by the contract holder.

"The other thing in Wales is Rent Smart Wales. This was introduced back in 2015. It's a governing body that oversees landlord registration and licensing in Wales. ‘No fault’ evictions, much like in England, this is still a problem here, but much more strictly governed in Wales, meaning landlords cannot issue a ‘no fault’ notice within the first six months of occupation, and that notice must now be a six-month notice. So, what that means practically is that renters in Wales have increased security of tenure compared to those in England.

"Also, another question there on landlords or anyone working on behalf of the landlord having to give 24 hours’ notice - that's the case here in Wales. According to the act, you must give 24 hours’ notice in order to inspect or carry out repairs in relation to the property. Not doing so would be a breach of contract.

"Fitness for human habitation and disrepair. There were some disrepair questions. Again, big problem here in Wales. Landlords have got to ensure though here that the property is fit for human habitation on the day of occupation and for the duration of the contract. Interestingly, failure to abide by the statutory obligations can lead to a ‘no fault’ notice being invalid, so slightly different to the system in England and in Scotland."

How do things differ in Northern Ireland?

Martin: "And now Northern Ireland with Faith Westwood from Housing Rights, Northern Ireland."

Faith: "Hi, Martin. Thanks so much for having me. In Northern Ireland, tenants who've signed a tenancy agreement are protected from rent increases during the duration of that tenancy. Tenants who haven't signed a tenancy agreement are called periodic tenants here and they're protected from rent increases for the first six months that they live in a property. But if a tenancy agreement has expired, and a new one hasn't been signed, or the first six months of the periodic tenancy have passed, landlords can increase the rent. They do have to do that in a particular way. So, we've got to fill in a form called a Notice of Variation and they've got to give 28 days’ notice of that change in the rent. There's no limit on the amount that they can increase the rent in Northern Ireland and, unlike some other areas in the UK, there's no formal way of challenging a rent increase, unfortunately. But landlords and tenants can use the housing mediation service in Northern Ireland to resolve disputes about rent increases.

"There were also questions then about ‘no fault’ evictions. So, ‘no fault’ evictions also exist in Northern Ireland, but only after a fixed term tenancy has ended, or again after the first six months of a periodic tenancy where there's no tenancy agreement in place. So, for tenants who have lived in their home for less than a year a landlord has to give them four weeks’ notice. Between one and 10 years, a landlord must give eight weeks’ notice. And if you've been living in the property for more than 10 years, the landlord has to give 12 weeks’ notice before they bring that tendency to an end. So, the longer you've lived in the property, the more protection and security in your tenure you have.

"Two interesting things that come into Northern Ireland that are a bit different than the rest of the UK that come in in April 2023 are control over the amount of deposits that a landlord can charge. So, from the first of April 2023, landlords can only charge the equivalent of one month's rent for a deposit. And that's really to try and limit the practice of charging two or three times the amount of one month's rent. And if they don't comply with that, they can be fined up to two and a half thousand pounds. And just like the rest of the UK deposits have to be protected in an approved scheme within 28 days of taking that deposit.

"Another interesting change that came in April of 2023 is a requirement that landlords provide a receipt for any cash payments that are made during the course of that tenancy agreement. To try and protect tenants who are trying to prove that payments have been made, it’s a requirement that that receipt is provided within a reasonable time. Failure to do that is an offence and could lead to a fine of up to £2,500 as well."