Agent letter evicting UC tenants read out by Corbyn in PMQs

admin    Uncategorized     agents

Jeremy Corbyn used one of his 5 questions to the Prime Minister in the House of Commons PMQs to read out a letter from GAP Property saying it was giving every single one of its Universal Credit (UC) tenants two months’ notice ahead of the roll-out of UC in the area.

The post Agent letter evicting UC tenants read out by Corbyn in PMQs appeared first on Property118.

View Full Article: Agent letter evicting UC tenants read out by Corbyn in PMQs

More Student Accommodation on the way…

admin    Uncategorized     agents

New Developments:

The number of new student accommodation developments across the UK is rising to meet the expect increase in students forecast over the next 10 years.

According to recent research by Savills’, Bath is the UK’s top hotspot for student accommodation developments, because of strong demand characteristics, high occupancy levels, strong rents and good prospects for rental growth. In second position is Birmingham followed by Brighton, Bristol, Edinburgh and Exeter.  This year saw three new places moved up to the top ten, including Exeter, Guildford and Leeds.

The London market represents the largest city in the UK for student housing. According to JLL, London’s full-time student population is expected to rise by 50% over the next 10 years, which will exacerbate the existing shortfall in student housing supply.

According to Savills, investment volumes are to reach £5.3bn in 2017, up 17% on 2016 as investor confidence returns after the EU referendum.

Jeremy Robinson, Managing Director of Housing Hand comments:

“Just this month, the University of Brighton was granted planning permission for a new student accommodation project for £60-80 million, which will see the development of 804 rooms in two towers, with construction due to be completed by September 2019.

“These new developments are popping up all over the UK and are good news for students.  Historically, many have found it difficult to find affordable accommodation close to universities and have had to opt for purpose built student accommodation (PBSA).

Fig 1 Savills Student Housing Development League 2017

“Typically, rents are high in this type of accommodation, all though the spec is high, which proves very attractive to international students.

“Students are paying £280 – £500 per week for a studio apartment and many more are unable to provide a UK guarantor to secure accommodation. Based on these figures, potential UK and international students without a UK guarantor in London would have to find up to £26,000 to cover the deposit and six month’s rent. Even if potential tenants can pay in advance, they may still need a UK guarantor. This can be a huge worry and for many, a real obstacle to going to university.

“However, we mitigate all the risks for letting agents and landlords by becoming the potential tenant’s UK guarantor.  We provide UK and international students who have failed a credit check with guarantor liability insurance policy.  This ensures that the rent payments are paid in the event of the tenant defaulting on the rent. Landlords and letting agents who are partnered with us have been able to increase occupancy, due to larger pool of applicants that can now qualify and they have been able to eliminate the risk of rent loss, due to tenant default, at no cost to them.

“According to Savills research, the UK attracted 112,000 fulltime students from the EU and 285,000 from other countries last year, making up just under 23% of the full-time student population. These students contribute £25bn (Universities UK) to the UK economy each year through tuition fees and other spending such as accommodation and services.

“Forecasts show that international student numbers are to rise by 6% per year over the next three years. University applications from Chinese students have almost doubled over the last decade, to 14,000 in 2016. With the sterling – yuan exchange rate 8% lower than it was before the EU referendum, this growth is expected to continue.”

For more information, www.housinghand.co.uk

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – More Student Accommodation on the way… | LandlordZONE.

View Full Article: More Student Accommodation on the way…

The private rented sector is ready to help fix the ‘broken housing market’

admin    Uncategorized     agents

Housing will take centre stage in the forthcoming Budget, with the emphasis on building more homes and on increasing the number of owner-occupiers.

If, however, the Government wants a country which works for everyone, it also needs to address the needs of those who will never be able to buy.

The post The private rented sector is ready to help fix the ‘broken housing market’ appeared first on Property118.

View Full Article: The private rented sector is ready to help fix the ‘broken housing market’

Scotland the Brave?

admin    Uncategorized     agents

From the 1st of December 2017 the new PRT ( Scotland ) kicks in, laying rest to the AST.
One of the key toxic terms enshrined in this new set up is – there is no fixed period for the tenant.

The post Scotland the Brave? appeared first on Property118.

View Full Article: Scotland the Brave?

Good Reasons For Landlords To Become Non-Resident For Tax Purposes

admin    Uncategorized     agents

Did you know; if you become non-resident for tax purposes you only pay CGT on capital appreciation since April 2015 on your rental properties?

A few weeks ago I shared a tax planning strategy based on this (link here) and since then I have already been contacted by four landlords who are now residing in the Southern Hemisphere.

The post Good Reasons For Landlords To Become Non-Resident For Tax Purposes appeared first on Property118.

View Full Article: Good Reasons For Landlords To Become Non-Resident For Tax Purposes

Property Redress Scheme says redress for landlords should also include Rent to Rent firms

admin    Uncategorized     agents

Earlier last month the Conservatives announced that all buy-to-let (BTL) landlords will be forced to register with a redress scheme, as is already compulsory for all letting and estate agents.  The Property Redress Scheme (PRS) says an introduction of this kind should also be extended to include Rent to Rent (R2R) firms.

The post Property Redress Scheme says redress for landlords should also include Rent to Rent firms appeared first on Property118.

View Full Article: Property Redress Scheme says redress for landlords should also include Rent to Rent firms

Retrospective Stamp Duty after change of use?

admin    Uncategorized     agents

Suppose I decide to nominate a former rental property long in my possession as my main home within the permitted window for making the election.

My main home, purchased in 2016, now becomes my second home. I paid only the ordinary stamp duty when I purchased it

The post Retrospective Stamp Duty after change of use? appeared first on Property118.

View Full Article: Retrospective Stamp Duty after change of use?

Big Changes are expected in 2018 on HMO Licensing Rules

admin    Uncategorized     agents

New HMO Licensing Rules:

Since mandatory licencing was introduced by the 2004 Housing Act, and landlord with a property housing 5 or more unrelated occupants over 3 or more stories has had to apply for a licence from their local authority to operate a multi-occupied letting.

This licence sets down strict safety standards to which landlords must comply, and these premises are covered by two pieces of legislation specific to them:

• The Management of Houses in Multiple Occupation (England) Regulations 2006 – applies to all HMOs – Bedsits and shared houses.
• The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007 apply to buildings converted into self-contained flats not complying with Building Regulations 1991 or later.

However, another category of House in Multiple Occupation (HMO), which does not currently need a licence, and is not subject to quite the same strict safety criteria, is one of two stories or less which has 3 or more unrelated occupiers, commonly known as a house share. These are very commonly used for student housing, where students have their own rooms in a standard house, sharing bathroom and kitchen.

But, from next year (likely April) it is expected that there will be a much tougher regime for these types of lettings. This is when some new HMO licensing rules are expected to be introduced. This change is likely to come as a surprise to many landlords as it will almost certainly require them to do work in their properties.

Whereas existing mandatory licensing applies to around 60,000 properties up and down the country, the new rules could apply to many more than this. It is thought that around 175,000 properties will be involved in the new mandatory licensing scheme.

The New Mandatory Licensing Rules

These new rules, which are really aimed at rogue landlords who are abusing the lettings system, will impose tough new standards, with the objective of improving the overall standard of lettings in England. Minimum room sizes and rules governing refuse disposal and its storage are likely to be imposed.

A Government consolation exercise has been ongoing on proposals for England only to remove the 3-story rule and draw up limits on minimum room sizes. For example, it is proposed a room must be a minimum of 6.52 square metres for one person, and 10.23 square metres for two people. The measurement of these rooms cannot include areas where the ceiling is below 1.5 metres in height.

In this scenario it is proposed that mandatory licensing will apply to all shared homes with five or more occupants, if at least two of them are unrelated (from different households). This would also take in any flats above or below shops and other business premises meeting this criteria.

Any landlord applying for a license will need to prove that they are a “fit and proper person”, a test which is to be tightened up under these proposals, and will likely include criminal record checks. Fines for not obtaining a license for an HMO will possibly by unlimited.

The changes are intended to improve the overall standards and safety of lettings in England generally. There is likely to be a grace period for landlords to catch up with these standards.

Although more landlords with properties meeting the above criteria will pay more in fees to their local authority, working to improved standards in their properties may result in more favourable mortgage applications.

The government’s drive to improve letting standards comes after much bad press involving rogue landlords and health and safety, and combined with a national housing shortage, the government want to get “onto the front foot” with rented housing.

Housing and planning minister Gavin Barwell has said:

“In order to build a country that truly works for everyone, we must ensure that everyone has somewhere safe and secure to live.

“These measures will give councils the powers they need to tackle poor-quality rental homes in their area. By driving out rogue landlords that flout the rules of business, we are raising standards and giving tenants the protection they need.”

Fire Safety in Rented Premises

Houses in multiple occupation and residential property licensing reforms – here

Extending mandatory licensing of houses in multiple occupation and related reforms – here

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Big Changes are expected in 2018 on HMO Licensing Rules | LandlordZONE.

View Full Article: Big Changes are expected in 2018 on HMO Licensing Rules

Property118 Founder Sends Open Letter To Chancellor Philip Hammond

admin    Uncategorized     agents

Dear Mr Hammond

On behalf of the UK Private Rented Sector represented by the Property118 online community our requests are both simple and straight forward to implement and have no cost implications to HM Treasury.

Please help all UK buy-to-let landlords

The post Property118 Founder Sends Open Letter To Chancellor Philip Hammond appeared first on Property118.

View Full Article: Property118 Founder Sends Open Letter To Chancellor Philip Hammond

Property118 Tax Overwhelmed Pre-Budget

admin    Uncategorized     agents

The number of landlords who want to complete their business restructuring and associated tax planning before the Nov 22nd Autumn Budget has hit record levels for Property118.

We are now booking consultations for after the Budget on a first come first served basis.

The post Property118 Tax Overwhelmed Pre-Budget appeared first on Property118.

View Full Article: Property118 Tax Overwhelmed Pre-Budget