In housing, know your rights and mind your language

In the Beginning was the Word.

No, this is not an article about religion - any religion. It is literally about the importance of words in the communication of simple ideas.

Take the word "tenant": if you pay a monthly rent to live in a flat or house, you are a tenant. You don't own it, and there can be no confusion about that.

On the other hand, if you paid £400,000 for an 85-year lease on a flat, you are, in the eyes of the law, also a tenant. You may think you own the property, but your rights and obligations are controlled not by yourself but by the lease you bought, which spells them out and is legally binding. Oh, and you also have a landlord, all-powerful - however remote - and not necessarily benign.

"In fact, unless you have a freehold house with no mortgage, you're not really an owner. The property is not yours to sell freely"

Given that in England it is not legally possible to buy a flat other than leasehold, it is remarkable how many people are not aware of this, for which I blame that word, "tenant". Yes, the word "leaseholder" also exists, but the legal terminology lags far behind the facts and in court that terminology rules.

This situation gives rise to many of the issues now plaguing UK housing. Hundreds of flat dwellers are now living in blocks covered in cladding that is a fire hazard. The responsibility to correct this risk to life is the landlord's, and the lease allows them to recover the costs from the leaseholder/tenants. But the process is costly and fraught, and many landlords simply don't want to be bothered - they are not at risk.

This is not about Grenfell. Grenfell was a council-owned block, its victims were rent-paying tenants and the council's responsibility is total.

Now we come to another crucial word: Home Ownership. It is a political Holy Grail, but most of its uses relate to situations which are NOT ownership.

In fact, unless you have a freehold house with no mortgage, you're not really an owner. The property is not yours to sell freely, so in a meaningful way the ownership is shared with the mortgage lender who has to agree. And the higher the mortgage, the stronger the lender's position.

So, first time buyers, said to be the drivers of UK home ownership, can only become owners in the distant future, when the debt is paid off. If it ever is. Until then, you are a Home Buyer.

If it's a flat, even then you will only ever be a leaseholder.

While we're here, let's examine the concept of Shared Ownership, much touted by developers and politicians as a magic bullet leading to the Holy Grail.

In reality, it means you share "ownership" with both a landlord, invariably a Housing Association - to whom you pay a regular rent on their share - AND a lender, to whom you repay the mortgage on the Share you believe you are buying, which can be as low as 10%. On the other hand, if it's a flat, you will probably be made to pay 100% of the service charge, no matter how small your share.

And you cannot sell that share without the landlord's approval. Some will try to force you to sell it to them at a price they set, invariably below market.

In my long career as a property and consumer writer, I have never met someone who went into shared ownership and had anything good to say about it.

I can only conclude that Shared Ownership is a scam. Don't touch it.

To make matters worse, Shared Ownership is often introduced by developers as part of their obligation to deliver - here comes another pesky word - "affordable housing" as part of their planning obligations.

The only genuinely affordable housing in England is that built by local authorities to rent to people in need. In all its other forms it's another scam. The only current definition of affordable housing in my experience is that it isn't.

"In my long career as a property and consumer writer, I have never met someone who went into shared ownership and had anything good to say about it"

A senior civil servant in the Housing Department told me decades ago he dreaded being required by a minister to produce a definition, which he could not, while former Mayor of London Ken Livingstone defined it as "what a teacher married to a nurse" could afford. Witty, but typically vague and easily evaded - as it was during his term, often with his blessing.

Now it's 2022 and, far from being able to buy, working people are seriously and increasingly concerned about being able to afford to rent.

A major advantage of being a long leaseholder as opposed to an Assured Shorthold (AST) tenant is the ability to challenge landlords at a specialist tribunal rather than a court. However, this solution doesn't drop from the sky. It requires time, dedication and - above all - unity of purpose.

Here are the steps I recommend:

1. Form a Leaseholders' Association.

Whether a block contains six, 60 or even 160 flats, the Association must legally consist of 50%+1 of the total to have any effect. This may be daunting, but it is ESSENTIAL as only with these numbers on board can real progress be made. It's much easier nowadays with platforms like WhatsApp enabling recruitment, group discussions and decision-making. Use it!

2. Agree on the desired ends: Service Charges challenge, acquiring the Right to Manage, acquiring a new manager, acquiring the Freehold, etc.

3. Agree on a set of rules and conditions of the Association and elect an executive committee to take action. The executive should consult and update the members regularly, and should make itself known to local politicians and officials. Ensure the Association cannot be manipulated by a strong-minded individual with their own agenda. I have seen this happen too often, and prevention is much better than cure!

"Now it's 2022 and, far from being able to buy, working people are seriously and increasingly concerned about being able to afford to rent"

4. Dig deep! Your committee will have to instruct a lawyer and a surveyor who will work for YOU, not the landlord or his manager.

The lawyer should be a leasehold specialist and have a strong track record of success in this field, so choose carefully. Skimping here will cost you much more down the line. (And no, I'm not a solicitor!)

5. Get the Association recognised by the landlord. If he refuses, get it recognised by the local council - with 50%+ membership they have to!

6. Decide, with your lawyer, on a course of action - and go for it!

At all stages - do your homework. There is a wealth of information available online, and some leaseholders' groups can be very helpful.

Born in Jerusalem, Palestine (British Mandate), Mira Bar-Hillel spent her early career working in radio journalism and current affairs, where she became the country’s first female radio news reporter, before moving to London and joining the Evening Standard. She then transitioned into property and housing work, where she fights for housing and tenants’ rights. She has been recognised in Who’s Who for her leasehold campaign which resulted in changes to the law to give much-needed protections to long leaseholders.

Follow her on Twitter: @mirabarhillel

Have questions or comments? Email us at: editorial-english@alaraby.co.uk.

Opinions expressed in this article remain those of the author and do not necessarily represent those of The New Arab, its editorial board or staff.