Very strange tenant situation....

Naz2111

My brother has been renting a Build To Rent property for approximately two years. Build To Rent is where the property is built specifically for the private rental sector -- sort of like housing association but at market or above-market rent prices.

He's had no issues really for the first 20 months or so. However, the landlord has claimed that his two most recent rental payments didn't arrive. The rent for all tenants is paid by Direct Debit, using a 3rd party Direct Debit processing company. My brother's bank's confirmed that the two payments in question were remitted, and his bank statements reflect this. The Direct Debit processing company claims the payments either didn't remit at all or were reclaimed by the bank, so they've not forwarded the monies on to the landlord. The landlord force tenants to pay via this method, rather than by the standard Standing Order or bank transfer.

Thus, the landlord is claiming my brother is 2 months in arrears and they say they've begun "legal proceedings" against him. He actually made an overpayment that means even when you take into account this supposedly missing 2 months rent, he would only be 7 weeks behind, and not 8 weeks in arrears.

Heating, water, electricity and broadband internet are included in the rent. The landlord has now switched off the electricity, water, broadband and internet in my brother's home, due to these supposed arrears.

My question here is what is the situation legally? I had a quick chat with counsel at work and although she does not deal with property law, she did say that even if my brother was genuinely in arrears, he would need to be a full 8 weeks in arrears for the landlord to be able to get a mandatory eviction for rental arrears.

Also, can the landlord continue charging for gas, electricity, water and broadband given that they are not providing it?

I would be most grateful for any feedback and information anyone can provide. Thank you in advance.

G_M

1) Go to court. NOW. And or to the Private Tenancy Officer at the council and/or Trading Standards.

Turning off the utilities is harrasment. It is a criminal offence. See
Protection from Eviction Act 1977

2) your council is right - the landlord can evict for rent arrears in one of 2 ways:

a) S8 Ground 8. This is mandatory ie the judge must evict. However the arrears must be more than 2 months rent both when the S8 is served, and on the court date.

Plus of course the tenant can defend by showing he has paid the rent

b) S8 ground 10. This is discretionary ie up to the judge to decide whether to evict or not. For this ground any rent arrears apply.

See:

Housing Act 1988 Schedule 2 (17 S8 Grounds a LL can use)

Plus:
Has he written to the landlord, confirming the rent payments, and enclosing evidence from his bank that the rent went ou and where it went to?

xylophone

The rent for all tenants is paid by Direct Debit, using a 3rd party Direct Debit processing company. My brother's bank's confirmed that the two payments in question were remitted, and his bank statements reflect this. The Direct Debit processing company claims the payments either didn't remit at all or were reclaimed by the bank, so they've not forwarded the monies on to the landlord.

Your brother has gone to his bank, explained what is happening and asked them to trace the payments?

and see post 10

https://forums.moneysavingexpert.com/discussion/5685940

Naz2111

Thank you. That was a helpful read. My brother is not the first tenant who has had similar issues with this particular landlord.

Naz2111

Yes, he has provided extensive banking statement information proving the rent was paid. The landlord has done nothing to recover the money from the 3rd party Direct Debit processing company,

When he called the utility companies he was told that the landlord had emailed through to tell them to shut off his supply with immediately effect 'until further notice"

xylophone

When he called the utility companies he was told that the landlord had emailed through to tell them to shut off his supply with immediately effect 'until further notice"

See GM's comments above.

Naz2111

Looks like he will need to contact a solicitor then.

Naz2111

For the missing/misappropriated funds, can he bring a County Court Claim against them? Would he bring this against the processing company who took his money?

G_M wrote: »

1) Go to court. NOW. And or to the Private Tenancy Officer at the council and/or Trading Standards.

st999

And people want to sell their house and go rented.

agrinnall

I wouldn't accept that he is in arrears. The rent has been taken by the LL's intermediary in accordance with the instructions issued by the LL, if the money hasn't arrived at the LL's account that is something they need to take up with the intermediary. If the LL is foolish enough to seek eviction on S8 G8 I would expect the court to throw it out. And I don't think any overpayment should be made.

Naz2111

I must admit that the landlord's apathetic attitude to the 3rd party having mislaid or otherwise failed to forward the money is concerning.

I believe you are right. This does not amount to arrears. Coupled with the fact that even if this lost amount was taken into account and deemed arrears, he has overpayed his rent and so it would still not equal 8 weeks arrears. Therefore it is not clear why they imagine they can get a definite eviction.

agrinnall wrote: »

I wouldn't accept that he is in arrears. The rent has been taken by the LL's intermediary in accordance with the instructions issued by the LL, if the money hasn't arrived at the LL's account that is something they need to take up with the intermediary. If the LL is foolish enough to seek eviction on S8 G8 I would expect the court to throw it out. And I don't think any overpayment should be made.