Mark Smith (Barrister-At-Law) Landlord tax planning strategies – Berkshire

admin    Uncategorized     agents

Our Hon. Legal Counsel, Mark Smith, Head of Chambers at Cotswold Barristers will be presenting an overview of several landlords tax strategies at the pin Berkshire Meeting property networking event Monday 20th May 2019.

The event will start at 6:00pm until 9:00pm and will be free for guests of Mark Smith that have not previously attended a pin meeting.

The post Mark Smith (Barrister-At-Law) Landlord tax planning strategies – Berkshire appeared first on Property118.

View Full Article: Mark Smith (Barrister-At-Law) Landlord tax planning strategies – Berkshire

Monthly Bridging Loan rates fall to average 0.74% Q1 2019

admin    Uncategorized     agents

Bridging Trends has reported its lowest recorded average monthly Bridging Loan rate across the market since 2015. Across its surveyed lenders the average pricing for monthly interest is now down to 0.74% for Quarter 1 2019 and this is down from 0.8% in the last Quarter of 2018.

The post Monthly Bridging Loan rates fall to average 0.74% Q1 2019 appeared first on Property118.

View Full Article: Monthly Bridging Loan rates fall to average 0.74% Q1 2019

Reducing the risks of flooding for properties

admin    Uncategorized     agents

Depending on what part of the country you own a property in,
the more at risk you are when it comes to flooding. Places like Cumbria and
North Yorkshire have had awful floods in rainy times for a long time. Venturing
down south in the UK, you are at less of a risk but there still exists the risk
you could be affected by flooding, so it is always best to be safe rather than
sorry. 

According to official statistics, over 5 million homes are
at risk of flooding across the UK. With this figure in mind, it is vital that
homeowners are well informed about how they can work to reduce the risk of
their property flooding or what to do if their property does flood beyond their
control.

Also, with the risk that without the right protection
against flooding, lenders are unlikely to provide finance, be it a first or
second charge mortgage, with the risks of damage to the property otherwise far
too high for them to lend large amounts. As part of the underwriting and due
diligence process when applying for a mortgage, if your property is at too high
a risk of flooding and water damage, the lender may well reject the application
(more
information about the process).

It was recently revealed that the UK government has established
a plan for the potential of 20 to 30 per cent more extreme downpours than it has
ever experienced before. This is following the criticism received for its
response to flooding across the country over the past few years.

Thus, it is clear that the government is excepting more
flooding to take place across the UK and so it is vital that we protect
domestic dwellings, businesses and places of work.  Flooding can cause some very serious damage to
property and the contents, resulting in months or even years of disruption.

Flood Warnings in the
UK

If you live in a high-risk area, there are a number of
things you can do before a flood hits, including:

• Registering with Floodline. You can do this by visiting
  their website or by calling them on 0345 988 1188. This is a government run
  system which will notify you when there is a flood risk in your area
• Be sure that you have insurance which covers
  flooding and water damage. It should also cover the costs associated with
  drying out, temporary housing, restoration and professional fees (such as
  solicitors and surveyors)
• Keep your important items and possessions which
  hold sentimental value upstairs to reduce the chance that they get damage if
  the worst should occur. This may include things like your insurance documents,
  passports, photos and medicines
• If you do live in a flood risk area, you should
  keep in mind that this is the case when you are doing any renovations on your
  home by adding waterproof coating to the walls and the sideboards and so on,
  opt for tiled floors rather than carpets downstairs, install power sockets and
  other electrics at least 1.5m above floor level, add flood guards and ensure
  sufficient ventilation bricks have covers, landscape your garden to direct
  water away for your property, ask a plumber to fit a backflow prevention valve
  in order to prevent sewage back up membranes (source: RJ Acoustics)
• You could consider investing in a sump pump
  which is not battery operated, emergency sandbags and flood boards which can be
  fitted on the outside of the windows and doors if a flood should occur

The Environment Agency operates a very detailed flood map which you can be sure to keep an eye on. This will display the latest flood warnings as well as the level of flood risk in your area. Furthermore, Friends of the Earth offers another easy-to-use flood map. Either of these can really help you in better planning floods before they occur

Following a Warning That
Flooding is Expected

Once you have been informed that a flood is likely to hit,
there are some further measures that you can take to help prevent any extensive
damage happening to your property:

• Turn off your electricity, water mains and gas.
  You need to be sure that you know how to do this quickly so that you remain
  calm when a flood is likely
• You can put sandbags outside of your property to
  help to create a sort of barrier between the flood and your home
• Put plugs in the sinks and baths and weigh them
  down with sandbags where possible. Remember to also plug any other water inlets
  such as overflows, taps and toilets. This is especially pressing if your pipes
  don’t have ‘no-return’ valves
• Move any electronics, rugs or any other
  expensive and important items upstairs
• You can always ask someone for help if you need
  assistance in preparing for a flood following an alert

Investing in temporary flood protection equipment could save
you a lot of heartache and money. You may never actually need it, but this sort
of equipment such as sandbags and flood boards can potentially one day work to
save your property. It must be said that sandbags are often provided by local
councils. However, in high risk areas, they often run out if you are not quick
enough. Therefore, it may be wise to just have some of your own to hand just in
case.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Reducing the risks of flooding for properties | LandlordZONE.

View Full Article: Reducing the risks of flooding for properties

Councils to be legally required to provide secure accommodation

admin    Uncategorized     agents

Prime Minister Theresa May has announced that for the first time ever, councils across the country will be legally required to provide support in secure accommodation for survivors of domestic abuse and their children.

With councils struggling to provide any form of accommodation let alone social housing for families and individuals that become homeless

The post Councils to be legally required to provide secure accommodation appeared first on Property118.

View Full Article: Councils to be legally required to provide secure accommodation

The UK Rental Market is not all doom & gloom…

admin    Uncategorized     agents

Buy-to-Let:

Andrew Turner, interim
chief executive of Commercial Trust, writing for the FT Adviser, thinks that buy-to-let is far from a sick patient when
it comes to providing good returns for private investors.

Responding to media
reports about how uncertainty has slowed down both the buy-to-let and
residential housing market, particularly because of Brexit, Turner is still
bullish.

Not denying there’s been a slowdown in both residential and
buy-to-let markets over the past 12 months, Turner cites UK Finance reporting
that while buy-to-let re-mortgage activity has soared, the total number of
buy-to-let purchase completions in 2018 was 11.2 per cent less than in 2017.

Also, UK Finance’s figures for January 2019 show a 1.5 per
cent reduction in the volume of residential lending, over the start of 2018. People,
Turner concludes, are sitting tight, and renting for now, rather than buy their
own homes.

Some Key Property
Market Indicators:

• There has been a slowdown in the buy-to-let sector
• There has been intervention by the government in the buy-to-let market, but
• The number of buy-to-let products shows lenders are positive about the outlook

Index of Private Housing Rental Prices indices, Great Britain, January 2011 to January 2018

A main reason for the continuing health of the rental sector
is that for many of those who are renting, saving for a deposit remains very
challenging. The average time for a young person to scrape together a
sufficient amount for a deposit on a small property in London is something like
10 years.

According to the Ministry of Housing, Communities and Local
Government’s (MHCLG) in its recently published English Housing Survey for
2017-18, the private rental sector (PRS) has remained unchanged over the last
five years at 4.5m households. This is equal to almost 20% of the total.

The survey shows that around 58 per cent of tenants expect
to buy a property eventually, and 26% of them expect to do this within the next
two years. On the other hand, around 41% thought it would take around five
years before they could own.

Those timescales, Turner suggests, means that Brexit is not
a major consideration, but that landlords have “more immediate and tangible
concerns�, basically because of the accelerated government intervention in the
sector.

Tax changes such as the introduction of a stamp duty premium
on additional properties, and the gradual reduction of mortgage interest tax
relief are worrying developments for buy-to-let landlords.

In addition, regulatory changes around the tenancy laws including
new HOM (house in multiple occupation) licensing laws, tougher safe living and
energy efficiency standards, plus the imminent tenant fees ban, have all
conspired to make some landlords decide to sell up, or at lease downsize, if not
delay investment.

Small-scale and amateur landlords are finding it
increasingly difficult to keep abreast of the changes and many are at a loss to
adapt and develop a successful formula which works for them. Letting is
becoming more labour intensive due to all the “red-tape� around lettings, so
unless they are very well organised it’s difficult for them to find the time,
when they are working as well.

Larger-scale portfolio landlords are able to devote the
necessary time and position their business operation in a tax efficient way, particularly
in regard to the new mortgage borrowing requirements.

So the game is swinging away from the casual or amateur
landlord towards the portfolio landlord who is well organised, has strategies in
place that take advantage of economies of scale and risk reduction.

“There are still plenty of reasons why buy-to-let
investments can offer opportunities to those looking for solid financial
returns,� says Turner.

In the right place and with the right kind of tenancy
management, buy-to-let still compares very favourably with other forms of
investment.

The positive factors that Turner identifies are:

• There are opportunities in the market as prices come “off
the boil� meaning that opportunities are waiting out there. Buying an existing rental
might mean less work is needed when purchased.

• Forecasts as the survey above suggests, there is no
reduction in demand for rental homes as thousands are putting buying on hold. In
February, London estate agent Foxtons reported that in 2018 there was an 8 per
cent increase in renter registrations in London, compared to 2017.

• There are big difference in the performance of buy-to-let
throughout the regions, some locations giving much higher income yields than others,
especially in the north of England.

• With government investment in infrastructure such as the “Northern
Powerhouse�, businesses are relocating to the regions in the UK and workers
have followed. This has helped to create vibrant economies across the major UK cities
for buy-to-let.

• Historically, house prices have always recovered from short-term
economic or political crises, and investment in bricks and mortar has always
been regarded as a long-term strategy, and post Brexit will be no exception.

• The massive volume of buy-to-let mortgage products in the
market place (1,162 in late February 2019, according to Moneyfacts), reflects a
positive buy-to-let outlook from lenders. This choice also comes with lots of incentives
and competitive mortgage rates.

Interest rates remain historically low and there’s no sign
of a change here. For example, the rate for a five-year fixed-rate buy-to-let
mortgage is more than 2 per cent less than in 2010.

Turner sees this time as a buying opportunity not to be
missed, while these rates remain low. By delaying he says, landlords could miss
out on the lowest deals, if rates should rise in the future.

With a sound and responsive investment plan in place, Turner
argues, “buy-to-let landlords can prosper and Brexit offers no reason why that
should not continue.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The UK Rental Market is not all doom & gloom… | LandlordZONE.

View Full Article: The UK Rental Market is not all doom & gloom…