Tag: Property

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The Guild supports clampdown on rogue landlords

The Guild supports clampdown on rogue landlords

The government’s decision to invest an additional £4m in funding for local councils to tackle criminal landlords and letting agents has been warmly welcomed by The Guild of Property Professionals.

The housing secretary, Robert Jenrick, announced on Friday that he has pledged new funding to be used to clamp down on rogue landlords, with the money set to be shared between more than 100 councils across England

He commented: “Councils already have strong powers to force landlords to make necessary improvements to a property through the use of a range of measures, including civil penalties and banning orders for the worst offenders.

“The grants will support a range of projects to enable councils to make the best use of these powers. This will include trialling innovative ideas, sharing best practice and targeted enforcement where we know landlords shirk their responsibilities.”

There are more than 4.5 million households in the private rented sector in England, with recent statistics showing that 82% of private renters are satisfied with their accommodation, which although impressive, does suggest that there is room for improvement

The Guild’s inhouse Compliance Officer, Paul Offley, said: “We fully support this initiative as it will ensure that rogue landlords and letting agents are punished for breaking the law and it will also ensure that more tenants are treated fairly.

“With the funding providing councils with a means to crack down on illegal activity in the lettings market, tenants will have more protection and the standards of the rental sector will be raised.”

“An environment where exploitative landlords are stamped out will enable good landlords and letting agents to thrive,” he added.

But the government funding to root out criminal landlords has been described by the Residential Landlords Association (RLA) as inadequate to tackle the scale of the problem.

David Smith, policy director for the RLA, said: “We welcome the government’s focus on rooting out criminal landlords. For too long the debate has been driven by ideological calls for more regulation of the sector. What is needed is better enforcement of the powers already available to tackle the minority who bring the sector into disrepute.

“The funding though is nowhere near enough. Instead of offering inadequate and sporadic pots of money, it is critical that the government provides proper, multi-year funding to enable councils to plan and prepare workable strategies to find the criminal landlords. This should be supported by councils having the political will to prioritise enforcement against the crooks rather than tying good landlords up in licensing schemes which do nothing to protect tenants.”

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Rogue landlord fined £27k for unsafe HMO

Rogue landlord fined £27k for unsafe HMO An unscrupulous landlord has been fined £27,000 over an unlicensed HMO in Luton with multiple fire and safety breaches. ​

Luton Magistrates Court heard that the unlicensed property at 14 Kenneth Road, Luton, LU2, had poor fire alarm systems and blocked fire exits, missing and broken tiles on the roof, and evidence of rat infestation.

Marco Caruso of Verulam Court, Hendon, pleaded guilty to illegally managing a HMO and seven breaches of HMO regulation.

He was fined £27,000, which included a £170 victim surcharge and costs of £848.70.

Cllr Tom Shaw, portfolio holder for housing, commented: “This is a great result for the rogue landlord project [being operated by the council] and an excellent example of how we are working together to ensure that private housing in Luton is of a good standard.

“If an HMO is poorly managed, the tenant’s safety could be at risk.

“We are committed to identifying rogue landlords and making sure the properties they manage are in a good condition and adhere to safety regulations, or face prosecution.”

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Help and support available for landlords paying tax and keeping records

Help and support available for landlords paying tax and keeping records The tax return deadline when filing your online Self Assessment for the tax year ending 5 April 2019 is less than a month away.

Filing an annual tax return is a necessary task for every self-employed person, including buy-to-let landlords, with the 31 January deadline for the 2018/19 Self Assessment tax return at midnight on 31 January 2020.

Whether you have just started out as a buy-to-let landlord or you are an established property investor, there is much to consider from a financial point of view.

Around 10 million people must complete a self-assessment tax form every year, typically because they are self-employed, run their own business or have untaxed income or capital gains, such as from a buy-to-let property, a trust or investment portfolio.

There is no need to fret over filing your tax returns, as it does not even require an accountant.

However, if you are concerned about going it alone and doing your own tax return, you may wish to check out HMRC’s ‘help and support for landlords’.

For more information, click here.

HMRC also offers online tax return help for landlords to their online series of help and support webinars.

View all HMRC webinars.

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New trade body launches for BTL landlords

New trade body launches for BTL landlords A new landlord organisation, which is the largest ever trade body in the letting sector, has been officially launched.

The National Residential Landlords Association, which came into force yesterday, has a membership of more than 80,000 landlords.

The new organisation has come about after the National Landlords Association (NLA) and the Residential Landlords Association (RLA) agreed to merge in autumn, with a view to delivering a stronger voice for landlords in the private rented sector.

Ben Beadle is the NRLA’s new chief executive, having joined from Touchstone, part of the Places for People housing group. He was previously managing director of TDS Northern Ireland and director of customer service with the TDS.

The two previous chairs, Alan Ward of the RLA and Adrian Jeakings of the NLA, said in a joint statement: “After more than 20 years of friendly competition the time is right to create a single organisation to represent and campaign for landlords.

“With so much of our work done in parallel there are major benefits to be gained for our landlord members.

“We will be stronger together when presenting a unified voice to government both nationally and locally about the importance of supporting the majority of landlords who do a good job providing the homes to rent the country needs.”

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Section 21 changes: time to prepare for reforms to the eviction system

Section 21 changes: time to prepare for reforms to the eviction systemLetting agents are being urged to do more to protect buy-to-let landlords by preparing now for the government’s plans to scrap Section 21 of the Housing Act, as part of a new Renters’ Reform Bill.

PayProp is advising agents to adapt to upcoming changes to the eviction system by updating key documentation and automating arrears management to cut the chances of having to evict tenants and leave landlords with an unnecessary rental void period.

The lettings payment automation provider wants to see letting agents take the following steps.

Neil Cobbold, chief operating officer of the lettings payment automation provider, said: “For some time, the political will – regardless of party – has been to remove Section 21 from the Housing Act 1988 and reform the eviction system.

“Following the Queen’s Speech, letting agents and landlords need to start preparing for change and updating their processes accordingly as it has been confirmed that the evictions process will be reformed through the same Bill.”

Cobbold points out that amendments to the eviction process will see agents needing to update their contract templates and eviction notices to fall in line with a new system – highly likely to revolve around a strengthened Section 8.

He explained: “One of the most important aspects of eviction reform for agents will be educating and informing landlords and tenants about how the new system will work.

“However, on top of this, they will also need to make sure their documents are up-to-date and watertight to evidence their adherence to current and proposed legislation. This will give landlords and tenants the best chance of a smooth eviction process.”

“Agents who adopt thorough record-keeping and arrears management can prove their worth to landlords and increase their chances of new business and client retention.

“Having the right technology and systems in place can be a huge help in making these changes seamless and efficient.”

He says that the removal of Section 21 has the potential to impact the methods landlords use to regain possession of their properties, although he feels that the government’s acknowledgment that it needs to improve the court process was a welcome addition to the Queen’s Speech.

But reforming the grounds for possession has the potential for teething problems and agents could mitigate this by improving their own internal procedures.

Cobbold continued: “With this in mind, agents need to think about the ways they can help to reduce the frequency of evictions. Encouraging good relationships between landlords and tenants is all-important, as is staying on top of repairs and facilitating good communication between both parties.

“Rent arrears are one of the most common reasons for evictions, so agents can help landlords to keep them to a minimum by sending automated emails and text messages – which are proven to be more effective when it comes to chasing rent payments.”

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You and your tenants need to be vigilant over the Christmas period

You and your tenants need to be vigilant over the Christmas periodThe Christmas season is upon us and there is a good chance that your tenants may be going away, leaving your property empty and therefore vulnerable.

To help ensure that your property remains protected, there are a number of measures that you and your tenants could take to keep your property safe while the occupants are away.

As the landlord, you should advise their tenants to check the functionality of locks, not only on main doors and windows, but also on sheds and garages, as bikes are often the number one choice for festive felons.

Tenants should also be told to ensure that valuables are kept out of sight so that they are not actively advertising the property to burglars.

You or your tenants may wish to consider installing timers for lights and lamps so that it looks like someone is at home.

It may also be wise to ask your tenants if you or a representative can enter the property if their plan to be away for an extended period. That way, post can be taken in, curtains can be opened and closed, and a vehicle can be seen to be at the property.

To help alleviate any concerns you may have over the festive period, here are some tips that you may care to share with your tenants:

+ Keep valuables out of sight: Keep valuables out of sight such as laptops, televisions and car keys might just prove to be an incentive to an opportunist.

+ Lock all windows and doors: If you are sharing a house or a flat, make sure that the last person to leave does a quick check around the property to ensure that all windows and doors are locked.

+ Keep a light on: A cheap plug-in timer will turn lamps on and give the impression that somebody is home when your property is empty over the holiday.

+ Take down Christmas decorations: While it may make your house look a little cheerier, if your house is going to be vacant until after the New Year decorations may indicate to that the house is empty, so take down the decorations before you leave for Christmas.

+ Neighbourhood watch: If you are comfortable and friendly with your neighbours then inform them that you’re going away and how long for, and ask them to keep an eye on your property.

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Average rents increase 3.2% year-on-year – HomeLet

Average rents increase 3.2% year-on-year - HomeLetRents in the PRS continued to grow at a modest pace in November, the latest figures from HomeLet show.

The data reveals that the average rent in the UK hit £947 per calendar month (pcm) in November, up 3.2% year-on-year.

When London is excluded, the average rent in the UK is now £784pcm, while the average rent in the capital is now £1,665pcm.

All 12 of the regions monitored by HomeLet showed an increase in rental values between November 2019 and the corresponding month this year.

But all of the regions monitored by HomeLet saw a slight decrease from October 2019, with the exception of Wales and the North East which saw an increase of 1.1% and 0.4% respectively, and the East Midlands which remains unchanged.

The region with the largest year-on-year increase is Wales, showing a 5.2% rise between November 2018 and November 2019.

 

 

 

Region Nov-19 Nov-18 Annual Variation Oct-19 Monthly Variation
Wales £630 £599 5.2% £623 1.1%
Yorkshire & Humberside £652 £623 4.7% £653 -0.2%
Northern Ireland £667 £639 4.4% £672 -0.7%
Scotland £664 £635 4.6% £674 -1.5%
North East £540 £517 4.4% £538 0.4%
North West £721 £694 3.9% £727 -0.8%
Greater London £1,648 £1,597 3.2% £1,665 -1.0%
East Midlands £642 £625 2.7% £642 0.0%
South East £1,013 £989 2.4% £1,020 -0.7%
South West £838 £819 2.3% £840 -0.2%
East of England £917 £898 2.1% £924 -0.8%
West Midlands £701 £688 1.9% £706 -0.7%
UK £947 £918 3.2% £953 -0.6%
UK excluding Greater London £784 £760 3.2% £788 -0.5%
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Rents set to rise in 2020 as landlords continue to exit the PRS

Rents set to rise in 2020 as landlords continue to exit the PRS Rents look set to rise across much of the UK next year owed in part to a further increase in the number of landlords exiting the buy-to-let market as the impact of legislation continues to be felt, letting agents have predicted,

ARLA Propertymark asked its members to share their predictions for the private rented sector and found that more than four-fifths – 84% – of letting agents think rent prices will rise in 2020, up from 65% when agents were asked the same question last year, looking ahead to 2019.

The research also shows that the supply and demand gap looks set to widen next year, with more than three-fifths – 61% – of agents forecasting that demand will continue to rise, while almost seven in 10 – 68% – think the number of landlords operating in the PRS will decline next year, as they are driven out by rising costs.

In line with this, 68% expect landlords’ taxes to rise again.

David Cox, chief executive, ARLA Propertymark, commented: “For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords. As a result, much of this year has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or choosing to step away from the sector altogether. This has impacted tenants most, who have restricted supply and have been faced with less choice and paying higher rents.

“Looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords. This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.

“Change should make the PRS fairer for all involved, and not penalise those landlords who provide high quality, affordable housing for thousands of tenants.”

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Scrapping Section 21 is ‘another attack’ against BTL landlords

Scrapping Section 21 is ‘another attack’ against BTL landlords The Queen has announced the new government’s priorities for its coming term, and it includes a proposal to abolish Section 21 of the Housing Act and reforming the grounds for possession, as part of a new Renters’ Reform Bill, designed to “introduce a package of reforms to deliver a fairer and more effective rental market”.

But in the absence of any meaningful plan to boost the level of social housing in this country, the announcement confirming the abolition of Section 21 in yesterday’s Queens speech has been described by ARLA Propertymark as “another attack against the landlords who actually house the nation”.

The trade body’s chief executive, David Cox, said: “If Section 21 is scrapped, Section 8 must be reformed and a new specialist housing tribunal created. Without this, supply will almost certainly fall which will have the consequential effect of raising rents and will further discourage new landlords from investing in the sector.

“ARLA Propertymark will be engaging with the government to ensure they fully understand the consequences of any changes, and we will be scrutinising the legislation, to ensure landlords have the ability to regain their properties if needed.”

The government also plans to introduce a new scheme to permit tenants to transfer their tenancy deposits when they move properties.

The new Lifetime Deposit scheme will permit renters to transfer their deposit from one property to another instead of being left out of pocket for weeks while they wait to be reimbursed from their old landlord but have to spend money securing their new property.

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One in three landlords plan to sell in the next year

One in three landlords plan to sell in the next year The UK could be heading for a rental crisis, with experts dreading the prospect of a chronic property shortage in the PRS as more than a third of private landlords look to sell up in the next year in the face of lower profits, new research shows.

A wide-ranging study of 2,000 landlords by the Residential Landlords Association’s (RLA) research exchange, PEARL, has found that almost 34% of private landlords are looking to sell at least one property over the next 12 months.

The study also found that just 12% of landlords are looking to expand the number of homes they rent out, down from 14% a year ago.

Almost half of landlords – 45% – told the RLA that the 3% stamp duty surcharge on additional properties had been a deterrent to further investment in property.

The drop in housing supply comes at a time when the Royal Institution for Chartered Surveyors (RICS) is warning that the demand for private rented homes is on the up.

The RLA is now calling on the government to scrap the stamp duty levy where landlords provide homes adding to the net supply of housing.

This should include developing new build properties, bringing empty homes back into use and converting larger properties into smaller, more affordable units of accommodation.

David Smith, policy director for the RLA, commented: “This is yet more clear evidence of the sell-off of private rented housing largely due to the government’s extra tax on new rental homes.

“It is ridiculous that when the country needs all the extra housing it can get, it penalises good landlords who invest in new homes.

“With a new government and a Budget due, we need a shift in policy to one that supports investment because otherwise there will be a growing supply crisis in the private rented sector as demand continues to rise.”