Halifax Price index shows 3.3% growth in July

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House prices in the three months to July increased by 3.3% against the same period a year earlier with the average house price rising to hit a new record of £230,280

On a monthly basis, prices rose by 1.4% in July

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Who owns the loft space?

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We own a ground floor flat, a house converted into two flats. We own the freehold of upstairs and the upstairs flat owns the freehold of our flat, we also have a lease in place which has 988 years remaining.

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Section 24 Billboard Campaign arrives in the North

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Four new Billboards have be erected in the following locations to promote the campaign against Section 24 and the devastating damage the tax attack on private landlords is having on the availability and pricing of UK rental properties:-

• Mansfield –

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Forum Spotlight: Cats causing issues

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A landlord posted on our Forum recently a question about what she should do next with a long term tenant, whose cats were starting to become a nuisance. At the start of the tenancy, it was agreed that the tenant could have two cats. However the landlord recently inspected the property and had discovered that […]

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Government’s tenancy plans – another blow for landlords?

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Security of Tenure:

The government’s about face on long-term tenancies, from a voluntary longer-term tenancy to a 3-year mandatory one, will not go down at all well in most of the landlord community.

Although the plan is as yet at the consultation stage, and a tax sweetener is being suggested, a public consultation ending on the 26^th of August has a title that is rather ominous: “Overcoming the barriers to longer tenancies in the private rented sector�. It would imply a confirmation of the government’s intent, rather than a genuine need to consult on people’s views.

The proposal is to introduce a mandatory minimum term of three-years for a private residential tenancy. This would drive a coach and horses through the principle of shorthold, which for 30 years has allowed landlords to get their properties back without too much hassle when things go horribly wrong. Even then, it can easily take up to 9 months to repossess under the current rules, using section 21.

The new proposal would bring in a tenancy where there is a six months probationary period, at which point the landlord could bring the tenancy to an end if all is not well. But if this becomes law, when this 6 month hurdle is passed, the landlord is tied-in for the duration – for the remaining two and a half years, whatever happens next. During this period though, the tenant can walk away with just a short period of notice.

It would be a major transition away from the current shorthold tenancy where the landlord can use the section 21 no fault eviction process after the initial 6 months, providing the fixed term has expired. Basically, under the current rules, it means the landlord has a degree of control and protection, should things go wrong.

Relying on section 8, which would be the case with the long-term tenancy, the onus falls on the landlord to prove that a tenant is in default, in a court of law – unlike with section 21 a court hearing is mandatory.

Given the current state of the justice system, with court closures up and down the country, section 8 can be a long drawn-out and expensive process. It offers a largely discretionary eviction process where there’s no certainty of possession, unlike the section 21 accelerated route which is a mandatory paper based process; one that’s been largely responsible for the growth of the private rented sector.

Yet again it would seem that the government is caving in to media pressure and political reality, that is, a large cohort of tenants now representing a huge voting block, one which will greatly concern the Conservatives when election time comes around.

The private rented market has grown geometrically through the diligence and hard work of many thousands of small-scale landlords investing their money into a sector. This was because the sector offered better returns than other asset classes and savings routes. In the process these landlords have provided much needed accommodation for those unable to afford to get themselves onto the housing ladder.

For several years now governments have provided nothing but discouragement for the small-scale landlord, while at the same time feigning gratitude for what they do. Through multifarious legislative measures, including the introduction of successive rounds of new safety and tenancy regulations, restrictions on mortgage interest relief, and a stamp duty surcharge for second homes, the government has clobbered the landlord.

When landlords wake up to the full implications of these latest proposals on longer tenancies, some experts in the industry think this could be the final straw for many. They will not be at all surprised to see many more landlords selling-up and leaving the sector altogether, with the effect that rents will increase as fewer houses are available for renting.

Have your say – Open Consultation until 26th of August – Overcoming the Barriers to Longer Tenancies in the Private Rented Sector – have your say here

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Government’s tenancy plans – another blow for landlords? | LandlordZONE.

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Scarborough selective licensing proposals excessive- RLA

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The RLA has written to Scarborough Borough Council about its proposals to introduce Selective Licensing in parts of the town, warning that some of the plans are ‘unlawful’. The council is planning on introducing selective licensing in parts of the Castle and Central wards of Scarborough, under Section 80 of the Housing Act 2004. This […]

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Arrears settled but LPA receivers still acting negligently?

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After the Bank of Ireland interest rate hike, I fell £1000 in arrears with my rental property by mid 2014. They appointed Templetons as a receiver who are based in Cardiff (The property is in Sheffield). I settled the arrears

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The Sun Newspaper Reports Leaked Budget Plans To Increase SDLT Again

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According to The Sun Newspaper; “Treasury chiefs are planning to hike the extra levy on buy-to-let purchases in a fresh bid to ease the housing crisis.”

The article goes on to say that a government source revealed:

“Increasing the buy-to-let levy is something the Treasury are looking at doing in the Budget.”

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Scrap the landlord tax hike if tenants are to find homes

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Landlord Taxes:

Ministers need to scrap the taxes which are preventing those in need of a home finding suitable accommodation at a reasonable price.

A report based on the Residential Landlords Association’s (RLA) research is predicting that there will be a net loss of 133,000 homes for private rent over the coming year and that the 12 months to March 2017 for England saw a net loss of 46,000 private rented homes, due in the main to the tax hikes.

These RLA statistics are based on questioning members, over 2,600 landlords, indicating that 84 per cent of landlords have seen tenant demand increasing or remaining stable during the supply drop, meaning that rents can only go one way – that’s up.

These findings are backed by Association of Residential Letting Agents’ (ARLA) research which also indicates an increase in demand for private rented homes, while at the same time the number of landlords on agents’ books has declined.

The RLA blame the supply drop firmly on the government’s actions, its decision to restrict mortgage interest relief to the basic rate of income tax and also its decision to add a three per cent levy on stamp duty for the purchase of additional homes.

A major focus for the Government in the private rented sector has been its attempts to boost the supply of rentals provided by corporate developers. But the RLA research indicates that these providers represent a miniscule section of the market; so far just two per cent of all private rented households in the UK are in homes developed by corporate investors.

The RLA thinks that the majority of landlords are, and will continue to be, individuals and small businesses, small-scale landlords who are best placed to support small and medium sized building companies by investing in their new houses.

RLA Policy Director, David Smith, had said:

“The demand for private rental homes shows no signs of slowing up, despite efforts to encourage home ownership.

“The Government was always mistaken to place homes to own and to rent in opposition to each other rather than seeking to supply more homes in all tenures.

“Corporate investors are failing to provide the new homes to rent at the pace and scale we need. They are also poorly equipped to meet the housing needs of towns and rural areas.

“The vast majority of landlords are individuals and small businesses, providing good housing to their tenants and supporting local economies. We need to support and encourage them to provide the long term homes to rent needed.

“The Government should use taxation more positively and not penalise landlords who are contributing to badly needed homes to rent.�

Online lettings agent MakeUrMove has also conducted a poll of 1,000 of its landlords, indicating that 49% of them intend to increase their rents, while 51% are considering selling properties due to the tax changes in the rental market.

Alexandra Morris, managing director of MakeUrMove, told Property Industry Eye that the lack of new rental properties on the market will push rents up further and will affect London’s 898,000 tenants most.

Rightmove’s figures show that London rental prices have risen the most in the UK, up around 3.4% on the year.

Mr Morris had said:

“The lettings industry has continually been warning the Government that the changes they’ve introduced to the private rental sector such as the loss of mortgage tax reliefs, additional regulations on landlords and the looming tenants fees ban, would have unintended consequences such as rent increases, and that is now happening in London.

“This increase in rental prices in the capital should ring alarm bells. Action must be taken to ensure it remains financially viable for tenants to rent properties and for landlords to meet their financial obligations.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Scrap the landlord tax hike if tenants are to find homes | LandlordZONE.

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Why 5 year fixed rate Limited Company mortgages are so popular

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Earlier this year (2018) mortgage lenders were forced to tighten up their affordability criteria.

Since then, LTV has rarely been the restricting factor when it comes to BTL borrowing. Instead, the level of borrowing has become more restricted based on “affordability calculations”.

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