Airbnb fights new rent rules legislation

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Airbnb has files a lawsuit against its home town San Francisco over new rental rules to be introduced in the city in July. The travel accommodation web service Airbnb could find itself lible to pay out thousands of dollars in fines following the introduction of new short-term letting law. The multibillion dollar company, which connects […]

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Brexit: The Impact on London's Property Market

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Last week, following a very close referendum, the country made the decision to leave the EU. The vote has left the London housing market in a state of uncertainty and left buyers, sellers and landlords feeling hesitant about what move to make next.

So what impact will Brexit have on London’s property market? Portico London estate agent’s Regional Director Mark Lawrinson, and Property Guru and NLA representative Richard Blanco give their predictions.

What was happening in the London property market pre-Brexit?

“The prime central London market was showing signs of a slowdown prior to the Referendum, and in areas of central London, we had seen prices start to soften following a decline in the number of transactions.  However, for London as a whole, most analysts were still forecasting modest growth with hotspots created by infrastructure projects like Crossrail helping to significantly increase values in boroughs like Ealing”, says Mark Lawrinson, Regional Director of Portico.

How will Brexit impact prices?

There’s an argument to be made that the weaker pound will help stimulate demand from overseas investors. Whilst the pound has got weaker, the Euro has also lost ground, so the exchange rate benefit of Brexit is likely to apply to investors with currencies tied to the dollar – notably from Asia and the Far East.

However, one of the main attractions for overseas investors (particularly from outside Europe) was that London represented a safe haven and a good place to park assets. Given current levels of uncertainty, it’s hard to make the case that this is still true, and there’s a risk that this may diminish the investment appetite for these sorts of investors (at least in the short-term).

There’s no doubt that anyone in the process of buying may be feeling some hesitation. However, the same is almost certainly true for those selling, because in many cases sellers are also buyers. So if that means that both supply and demand decrease simultaneously, then prices may not be impacted by as much as some people fear.

Mark Lawrinson comments, “Outside prime central London, the market is driven by domestic buyers rather than investors, who will still need somewhere to live regardless of our status outside the EU. They will also continue to need to upsize as their circumstances change, and we expect this market to be relatively unaffected by Brexit.”

Certainly in the short-term therefore we don’t expect to see an immediate drop in prices across London, although the decline in prime central London which had already started pre- Brexit is likely to continue.

Will interest rates fall?

Richard Blanco highlighted that there have been rumours that the Bank of England will cut interest rates to 0.25%, which could help generate more demand from buyers.  However rates are already at an all-time low, and he commented that, “Changes like this are unlikely to be made in the short-term.  The markets are still volatile and people will be waiting to see what happens over the coming months.”

What about the lettings market?

It’s possible that the rental market may get a boost in the short-term, as people look to rent for longer in times of economic uncertainty. If this happens, we could see a rise in rental prices which could, in turn, attract landlords to the market.

Richard Blanco comments, “Interestingly, if Boris, who was broadly pro-landlord as London Mayor, becomes the leader of the Conservatives and then Prime Minister, it’s possible that the aggressive stance the government has taken recently with tax changes to buy-to-let investments could be reviewed.”

With a new Prime Minister unlikely to be appointed until autumn, adjustments to taxation are unlikely to happen any time soon.  Despite the less favourable tax treatment for buy-to-let investors, the lettings market has shown steady growth so far this year, and post-Brexit we expect to see this continue.  With improvements in transport across the capital, there are more options for tenants commuting into central London, and new areas for landlords to invest to get both a good yield and a reasonable chance of capital growth.

Buyers need to be clever

It’s now more important than ever that buyers and investors purchase property cleverly. Good analysis is key, so ask an expert or do some research into which areas are up-and-coming or seeing strong capital growth, and if you’re investing, make sure to look where to find the best rental yields. Click on our interactive rental yield tool to the left to find out where in London a buy-to-let investment will pay off most.

Article Courtesy of: http://www.portico.com/

… LandlordZONE.

View Full Article: Brexit: The Impact on London's Property Market

Kingston Council offers prime leasing scheme

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Through a Private Sector Leasing Scheme, Kingston Borough Council is leasing self-contained properties from private landlords for one to three years. Under the scheme Kingston becomes the tenant of the property and pays an agreed rental amount to the landlord for the full term.

Rental payments are made monthly, are not connected with any benefit claim by the occupant, and are made directly to the landlord, irrespective of whether the property is occupied or not.

Kingston’s primary need is for two-bed properties within the borough, although there is also a smaller need for some other property sizes. Properties outside the borough can also be considered, but the property has to be within reasonable travelling distance of Kingston. However, as most London boroughs are facing similar demands to Kingston, the options for leasing to a host borough may be limited.

Kingston uses the accommodation by subletting on a non-secure basis to a household. The Council manages the property during lettings, so the landlord/owner’s responsibilities are limited mainly to structural maintenance issues as set out in the lease. All private sector renting/leasing arrangements involve risk, but this scheme transfers the risks associated with the tenancy and income management to the council.

Some landlords prefer the flexibility of managing a property directly, and the familiarity of renting a property to an individual and not a corporate body like a local authority. For this situation the Council has developed a complementary service.

The Kingston Tenant Finder Service facilitates lettings between private sector landlords and tenants referred by the borough. These households have approached Kingston for assistance, but they are typically households that have lived in the private sector before, have managed their tenancies satisfactorily, and simply need assistance at one point of their lives.

In this scheme landlords are not obliged to take any particular tenant referred by Kingston and the borough will refer more households until the landlord makes a choice.

The landlord and tenant have a standard Assured Shorthold Tenancy and the landlord manages the property and rent accounts directly. Kingston however will facilitate the letting by the provision of a range of standard documentation, guarantee a deposit, pay a month’s rent in advance and carry out an initial property inspection, providing a free on-going advice service for landlords and tenants.

As with the leasing scheme, the main need is for two-bed accommodation within the borough.

The Kingston Private Sector Housing Team (PSHT) can support landlords with grants for improving and adapting properties. There is a home improvement grant that offers supports with energy efficiency work and a disabled facilities grant that helps adapt properties for older or disabled people.

The Government has provided increased disabled adaptations funding for this year and the PSHT would like to speak to any private sector landlords willing to go into partnership with the Council to provided adapted homes for Kingston residents.

If you would like help with managing the property then please look at the Private Leasing Scheme at www.landlordkingston.co.uk For more information call 020 8457 5003 or email: privatesectorhousing@kingston.gov.uk

… LandlordZONE.

View Full Article: Kingston Council offers prime leasing scheme

MP supports RLA over Capital Gains Tax amendment

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An RLA recommendation – to reduce Capital Gains Tax (CGT) paid by landlords when selling their rented home to sitting tenants – is being proposed as an amendment to the Finance Bill
View Full Article: MP supports RLA over Capital Gains Tax amendment

Property Investor Race Day – Epsom Downs Racecourse – Surrey

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Due to the massive success of our Property Investor Race Day/Evening (July 2015) at Epsom Downs Racecourse, we are delighted to announce its return…Thursday 7th July 2016 

Last year we had over 5000 attendees through the door and this time it’s going to be bigger and better.  From 2pm In the Duchess Stand there will be many exhibitors within buy-to-let and seminars delivered by “Industry Experts” which will cover Landlord Tax Advice, Tenancy Deposits, Landlord Insurance, Investment Opportunities plus much more.

Book your FREE tickets

At 6pm the venue will be transformed into an exciting racing event (6 races) which will be staged at the picturesque Racecourse itself in Surrey.

What better way to spend a summer evening combining business with pleasure, than at Epsom’s Property Investor Race Evening. Come see us on 7th July, tickets are totally complimentary to attend the Exhibtion and the Landlord Investor Race Evening.

This fantastic event will be attended by Landlords, Investors and Property Professionals from across the region.

In addition this evening fixture will give you a great chance to network with Landlords, Investors, Property Professionals and feature top quality flat races in the heart of Epsom’s finest feature – the Downs.

After the racing we are providing a band so you have a chance to dance the night away.

Dress Code: Smart/Casual

Parking: Just £5 for the evening at the Racecourse

Agenda of the Day/Evening

14.00 – Exhibition opens – meet exhibitors and seminars delivered by Industry Experts.

18.15 – First race (on 6 race card) begin

20.50 – Last race

21.00 – LIVE band starts playing the very best in 70’s and 80’s music throughout the evening.

22.30 – Finish

Register to attend the show and Race Evening.  When you register you will be automatically be updated on show information i.e. speakers/exhibitors and information on the Race Evening.

Book your FREE tickets

… LandlordZONE.

View Full Article: Property Investor Race Day – Epsom Downs Racecourse – Surrey

Case of the week – Gas Safety Certificates

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One topic that comes up regularly for the Landlord Advice Team in the wake of the new section 21 notice is gas safety certificates.
One of the legal requirements on landlords is to have a valid gas safety certificate and to have provided that to the tenants. Failure to do so can lead to fines and, for tenancies that started on or after October 1st 2015, landlords are prevented from serving the new section 21 form without it.
View Full Article: Case of the week – Gas Safety Certificates

Scotland’s private tenants launch tenants’ their union

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To be known as “Living Rent”, tenants have launched their own tenants’ union and Scotland’s first national union for people living in the private rented sector (PRS). They claim the organisation is to be run for and by tenants, with Living Rent providing support for private tenants and campaigning for better housing in Scotland. The […]

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View Full Article: Scotland’s private tenants launch tenants’ their union