RLA policy director to give evidence to Hackitt enquiry

admin    Uncategorized     agents

RLA policy director David Smith, will be presenting evidence to the MHCLG Committee’s Hackitt enquiry tomorrow. The evidence session is being held by the Ministry of Housing, Communities and Local Government Committee and is the first following the publication of the Independent Review of Building Regulations and Fire Safety, led by Dame Judith Hackitt. In […]

The post RLA policy director to give evidence to Hackitt enquiry appeared first on RLA Campaigns and News Centre.

View Full Article: RLA policy director to give evidence to Hackitt enquiry

Small is beautiful – except in the private rented sector?

admin    Uncategorized     agents

Once again we read headlines predicting a grim future for the smaller landlord due to a combination of legislation change and increasing costs. Tory think tank Onward is proposing further tax changes to dampen investment in buy-to-let homes, with finance firms claiming more and more landlords are setting up as limited companies. In an article […]

The post Small is beautiful – except in the private rented sector? appeared first on RLA Campaigns and News Centre.

View Full Article: Small is beautiful – except in the private rented sector?

Onward’s paper “Green, pleasant and affordable� is incredible, unfortunately

admin    Uncategorized     agents

Onward has published its first policy paper, “Green, pleasant and affordableâ€�..  It was written by Neil O’Brien, who has been an MP since June 2017.  He is a Conservative, believe it or not.

His attack on BTL is only a small part of the paper

The post Onward’s paper “Green, pleasant and affordable� is incredible, unfortunately appeared first on Property118.

View Full Article: Onward’s paper “Green, pleasant and affordable� is incredible, unfortunately

Landlords being advised to keep in mind next EPC deadline

admin    Uncategorized     agents

Energy Efficiency:

Since 1 April 2018 it is an offence to rent out a property on a new tenancy, both residential and commercial properties, which includes a renewal tenancy, without a valid Energy Performance Certificate (EPC), which normally means having a minimum energy performance rating of E.

So far existing tenancies are exempt, but landlords with existing tenancies on properties currently rented out in the private rented sector are being advised to take note of the next deadline that relates to the energy performance of the building.

The next deadline comes on 1 April 2020, which means that then it will be unlawful to be renting any property with an existing tenant unless it has a minimum energy performance rating of E.

This reminder by Clare Gregory from Clarke Willmott LLP in Cardiff, published by businessleader.co.uk, is advising that landlords to start making plans now so that any properties in their portfolios are up to standard by the 2020 deadline. If landlords fail to do so they will be subject to a fine of £4,000, and also they could hit mortgage and re-mortgage problems, even if just one property in their portfolio is below standard.

Clare Gregory has said:

“From a tenant’s perspective, the forthcoming changes mean that they may find that they can potentially drive down their rent or threaten to move on if the required improvements aren’t made.

“The landlord will then be unable to re-let or sell the property without carrying out potentially costly works to improve its energy efficiency rating. If this scenario is repeated across a portfolio of investments, then the risks are easy to see.

“A landlord may find themselves with a portfolio of properties which can’t be let without expensive improvements being carried out, and not even able to cut their losses and sell poorly performing assets which fail the EPC test.

“When looking at their list of legal obligations, landlords might see the introduction of this legislation as another hoop to jump through. However, they have been brought in as a way to improve energy efficiency of homes.

“Thinking they can do little or nothing is therefore not really an option unless owners are happy to risk ending up with a portfolio of void properties on their hands, whereas undertaking a programme of improvements over the next couple of years could help to spread the cost and minimise future risks.

“There is still plenty of time to make sure any properties are up to scratch in terms of energy performance. Conversely, savvy landlords who are already ahead of the game and have better rated properties will be able to attract those wavering about whether to stay put or move on.�

“The obvious thing to do is to undertake any energy efficiency improvements during current void periods or lease breaks. They will more than likely be simple, low-cost measures which can be implemented and will have a significant impact on the energy rating of a building.

“We will be encouraging residential property owners to prepare a programme of capital improvements so that the necessary spend can be spread over the next couple of years rather than left to the last minute.

“By undertaking works and improving the energy rating there is the additional benefits of reduced energy use and operating costs, which may be attractive to potential tenants. Better still, it could also avoid a potential fine that could run into thousands of pounds!�

Changes you can make

These are some priority changes that landlords should consider, quick hits to bring the average rental home up to standard, and in some cases help with funding will be available:

• Put in double glazing – estimated cost: £2-3,000
• Replace an inefficient boiler – estimated cost: £2,000
• Loft and wall insulation – estimated cost: loft £500 and wall £400
• Install new radiator valves – estimated cost: £4-500
• Switch all your light bulbs to LED – estimated cost: £80-100

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords being advised to keep in mind next EPC deadline | LandlordZONE.

View Full Article: Landlords being advised to keep in mind next EPC deadline

End ‘Tax Breaks’ for landlords says Tory think tank!

admin    Uncategorized     agents

Tory MP Neil O’Brien, former aide to George Osborne and Theresa May at No. 10, has produced the first report for radical new Conservative think tank ‘Onward’ called Green, Pleasant and Affordable. Click here to read the full report.

The post End ‘Tax Breaks’ for landlords says Tory think tank! appeared first on Property118.

View Full Article: End ‘Tax Breaks’ for landlords says Tory think tank!

Onward report riddled with errors

admin    Uncategorized     agents

A new think tank is fundamentally wrong in its analysis of private rented housing – and the number of buy-to-let mortgages is falling, not rising. In its first report, focussed on housing, the Conservative supporting Onward, claims that at the end of 2017 buy-to-let lending was above the 2007 peak. In fact new buy-to-let lending […]

The post Onward report riddled with errors appeared first on RLA Campaigns and News Centre.

View Full Article: Onward report riddled with errors

Lib Dem response

admin    Uncategorized     agents

This is the response to my email from Ed Davey MP regarding the property tax petition issue. I signed the petition some weeks ago and the government rejected it.

Dear Tony,

Thank you for your email regarding mortgage interest relief and stamp duty surcharge

The post Lib Dem response appeared first on Property118.

View Full Article: Lib Dem response

Financial pressure on landlords is harming the PRS not improving it!

admin    Uncategorized     agents

In a report published 25th June, property expert Kate Faulkner has claimed that while legislation has been introduced to improve the private rented sector (PRS), it is not being properly communicated to landlords, agents and tenants.

Writing in her seventh report funded by the TDS Charitable Foundation

The post Financial pressure on landlords is harming the PRS not improving it! appeared first on Property118.

View Full Article: Financial pressure on landlords is harming the PRS not improving it!

15% of tenants bend the tenancy rules

admin    Uncategorized     agents

Tenancy Rules:

According to a detailed study* by Direct Line Landlord Insurance around 15% of tenants fail to keep their tenancy agreement covenants – they break the rules they’ve agreed to.

Failing to pay rent on time, smoking in the property and keeping a pet are the three most frequently broken rules highlighted by the study.

In the case of one-in-11 tenants (9%) their landlord never gave them a tenancy agreement – they are living contract-free!

While the majority (65%) of tenants have stuck to the rules, says Direct Line, 15% claim to have broken the terms and conditions of their rental agreement, while a further 9% claim that they don’t have a contract at all.

Over one in ten tenants (11%), claimed that they were unsure as to whether they had actually broken any of the rules in their contract or not, presumable they never read it.

The rules tenants breach range from failing to pay the rent on time or at all (25%) to failing to regularly check the smoke or carbon monoxide alarm (10%).

Other common broken rules include smoking (21%), keeping a pet (18%) and damaging or making alterations to the property (17%).

The most common sanctions that landlords can apply for breaking tenancy rules include:

• Losing some or all of the deposit (52%),
• Having to pay for any damages (22%)
• In some extreme cases tenants were even evicted H(4%).

However, more than one in five (21%) tenants say that the landlord never found out about their tenancy agreement breaches.

Nick Breton, Head of Direct Line for Business has some advice for tenants:

“The relationship a tenant has with their landlord can be crucial in the smooth running of a rented property. It is therefore of utmost importance for tenants to keep in touch with their landlords should anything arise that may be in breach of their rental agreement.

“Many landlords may be accommodating of requests to have a pet or to make changes to the property, but it is always safest to ask before doing anything to ensure that you are not breaking your contract in the process.

“Tenants who break the rules of their contract can face anything from the loss of their deposit to eviction, so for peace of mind, landlords should ensure they have a watertight legal contract in place to fall back on should anything happen to their property.�

And advice for landlords:

Direct Line for Business outlines here its top tips for landlords to ensure that tenants stick to the rules of their contract:

• Be clear from the outset: Ensure that your adverts clearly state any rules that you feel strongly about – for example looking for non-smoking or pet-free tenants only.
• Have it agreed in writing: It is imperative to have a written tenancy agreement for your tenants. Not only will they be legally required to pay rent, but it will also clearly outline what is and what isn’t allowed in the property. It’s a good idea to go through all of the clauses and penalties with the tenants before they sign the agreement to ensure that they are clear on the rules of the tenancy.
• Maintain dialogue with your tenants: You are within your rights to make scheduled visits to your property to ensure it is being maintained to a level that was agreed in the contract. This will also ensure that tenants look after your property, and dissuade them from breaking the rules too much.
• Don’t go overboard: Try not to make too many rules. Keep it simple. Establish a trusting, positive relationship with the tenant as they’ll be even more likely to stick to the rules.
• Accept that you may need to be flexible: If you have good tenants in your property for a length of time who make a request to get a pet, you may want to consider a compromise. Keeping the value of your property is one thing, but this may be offset by the time and cost of finding new tenants if it becomes a deal breaker.

*Direct Line for Businesses’ research conducted between 19th and 22nd August 2016 by Opinium Research amongst a nationally representative sample of 2,000 UK adults, of which 938 (47%) rent their properties from a private landlord. Opinium Research is a member of the British Polling Council and abides by its rules.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 15% of tenants bend the tenancy rules | LandlordZONE.

View Full Article: 15% of tenants bend the tenancy rules

16.9% gross yearly ROI predicted on this development in Leeds

admin    Uncategorized     agents

On a purchase price of £100,245, a deposit of £25,061 is required based on a 75% mortgage.  This translates into a return of £353 per month after mortgage costs, which translates into a fabulous gross return on deposit monies of 16.9%.

The post 16.9% gross yearly ROI predicted on this development in Leeds appeared first on Property118.

View Full Article: 16.9% gross yearly ROI predicted on this development in Leeds