Martin Lewis warning to London renters – you could be owed thousands
The rental market may be in dire shape right now, but luckily Martin Lewis and his Money Saving Expert team are on hand to help tenants navigate the treacherous landscape.
The latest ONS figures show average monthly rents increased by 9% in England, reaching record highs of to £1,293.
But things are especially dire in London and the commuter towns around it. In the last year, Zoopla reports the average rent in the capital grew to £2,121 per month (up 4.2%), and tenants – particularly those on lower incomes – are feeling the pinch.
A ‘perfect storm’ of high housing costs, more expensive bills and stagnant wages has left many people struggling. According to Martin’s MSE newsletter, though, there are some ways you can lessen the load.
If you’re a renter in London, for example, you can use a tool to check whether your landlord needs a licence for the property where you live – and some tenants could be owed thousands in rent refunds if the the right documentation isn’t in place.
This is due to rules that state privately rented homes require a property licence before they can be let out to tenants, with the owner having to show it’s kept at a standard deemed acceptable.
However, different London boroughs have different property licensing rules, which can make it understandably tricky for tenants to know whether their landlord has the correct licence.
So instead of trying to navigate the internet for the information you need, Martin’s MSE is urging all renters in the capital to use a property licence checker launched in 2020 by the Mayor of London Sadiq Khan.
Simply enter your postcode into the search bar, select your full address, and work out whether your landlord is meeting the requirements.
Yet although the tool is handy, you still may need to do extra checks, and you can only use the tool if you rent privately and at least one person in your household pays rent. Additionally, landlords who live with lodgers don’t need a licence, so it won’t be relevant to this set-up.
If you do find that your landlord doesn’t have the correct licence, however, MSE says you could be due a refund of up to 12 months’ rent. And considering just how pricey it is to rent in London, that could amount to a lot of money.
Any no-fault eviction notices (typically referred to as Section 21 notices) you’ve been served are also invalidated if your landlord hasn’t obtained the correct licence.
The next step would be applying to a tribunal for a rent repayment order, which can be done by you or on your behalf by your local council. The process of getting the refunded rent isn’t easy, because it’s decided by a tribunal, but there are instances when tenants will be refunded for the rent they paid, up to a maximum of 12 months’ worth of rent.
You can also seek advice from Shelter regarding landlord licences.