No Debt? Should you incorporate your portfolio?

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In this video interview with Mark Alexander, founder of Property118, we explore the opportunities afforded to landlords with no mortgages or low mortgages in regards to transitioning their ownership structure to a Limited Company. This is also known as ‘incorporation’

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BREAKING: Evictions ban to be extended for another two months, Jenrick reveals via Twitter

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The government has announced that evictions ban is to be extended for another two months to the end of August.

The government has announced that the evictions ban introduced in March is to be extended for another two months to the end of August.

Secretary of State for Housing Robert Jenrick has just tweeted the news, saying that: “We have provided an unprecedented package of support for renters during this pandemic. Today, I am announcing that the government’s ban on evictions will be extended for another 2 months. That takes the moratorium on evictions to a total of 5 months.

“Eviction hearings will not be heard in courts until the end of August and no-one will be evicted from their home this summer due to coronavirus.

“We are also working with the judiciary on proposals to ensure that when evictions proceedings do recommence, arrangements, including rules, are in place to assist the court in giving appropriate protections for those who have been particularly affected by coronavirus – including those tenants who have been shielding.”

Lord Chancellor and Secretary of State for Justice, Robert Buckland QC MP, said:

“Protecting vulnerable people has been our priority throughout this pandemic. Extending this ban will give people invaluable security in these turbulent times and work continues at pace to ensure vulnerable renters remain protected long after the ban ends.”

As we reported on May 4^th, Jenrick told a parliamentary select committee held on Zoom that he wanted to extend the eviction ban past June 25^th, when it was due to expire.

Today’s announcement is a compromise between the two opposing camps; landlords, who want to begin possession hearings against the worst cases of deliberate rent non payment of rent, and tenant organisations who wanted to see the ban extended for

And as we also reported yesterday, the NRLA has been working with the Ministry of Housing, Communities and Local Government on crafting a pre-action protocol, which will require landlords to work with tenants much more closely before being granted a possession hearing.

Twitter announcement

“Expect the unexpected with this government, this is a very important policy announcement that has been made on twitter without any further details provided,” says Tim Frome of Landlord Action.

“It would appear that the practice direction that was put in place to allow the suspension of private and social possession claims has been extended to 31^st August 2020. This is despite many courts beginning consultations with their stakeholders on starting again at end of June.

“With this further delay it is more important than ever that landlords discuss matter with their tenants and see if they can come to sensible arrangements on any issues tenants are facing from the virus. Landlords who had cases in court from before mid-March will be the ones most aggrieved by this decision. The rent arrears will continue and/or any anti social behavior is likely to be continuing.

“When the courts re-open at the end of August the backlogs will be horrendous. From a practical point of view trying to do hearings in July and August remotely was always going to be a challenge. Hopefully the courts will all be open from September and dedicated judges and time can be set up to deal with all the claims in the system.”

Shelter

Polly Neate, chief executive of Shelter, says: “The government has reset the clock on the evictions ban, buying the families who were only weeks away from losing their homes, a vital stay of execution. But it’s only a stop-gap.  

“The ban hasn’t stopped people who’ve lost their jobs during this pandemic from racking up rent arrears. Even if they have a plan to pay them back, these debts will throw struggling renters straight back into the firing line of an automatic eviction as soon as the ban does lift.   

“It’s critical that Robert Jenrick uses this extension wisely to change the law and properly protect renters. Judges must be given the power to stop people losing their homes because of coronavirus, otherwise the country will face a tidal wave of homelessness after August. Sooner or later, the government has to stop kicking the can down the road.”  

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Evictions ban to be extended for another two months, Jenrick reveals via Twitter | LandlordZONE.

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Harrow turns to LandlordZONE to help persuade landlords to back Selective Licensing scheme

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Harrow
Council wants landlords to have their say on whether to renew the London
borough’s selective licensing scheme.

It hopes to extend the current scheme in its Edgware ward
which ends this year so it can make sure fire safety standards, basic amenities
and the general management of rented properties are being met.

Ozge Albayrak, principal
residential licensing officer, says a minority of landlords let out poorly
managed properties, putting tenants at risk and attracting anti-social
behaviour.

“The scheme will allow us to take tougher action and
ensure the safety and wellbeing of residents,” she says. “We’ll be working
closely with the police, landlords, and tenants to make the area a better place
to live and work.”

Under the scheme, all private rented
properties will have to pay £550 for a five-year licence.

Harrow’s additional
licensing scheme licenses all HMOs throughout the borough, including all
private rented houses and flats with three or more occupants who are not all
related and share a kitchen or bathroom.

It also has two selective
licensing schemes in the Wealdstone and Edgware wards.

Landlords, as well as members of the public, are being
encouraged to contribute to the consultation which closes on 14^th August.

Read the council’s public announcement

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Harrow turns to LandlordZONE to help persuade landlords to back Selective Licensing scheme | LandlordZONE.

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Landlord Hero of the Week #6: Sue Simms

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Sue Simms is a busy landlord. As well as a 42-property portfolio in and around Birmingham, she runs a high street lettings agency, specialising in HMO management and a networking group for property investors.

But all this has been put on the back burner in recent weeks as she’s helped her tenants deal with the economic consequences of the Coronavirus pandemic.

Simms says a minority of her tenants have stopped paying their rent, largely because her portfolio is both in the social housing and private rent sectors, and because she’s been working hard to help those who are struggling.

“At my agency we’ve worked with some of the private rental market tenants to agree payment plans, but among the rest of my tenants a higher percentage have begun paying their rent quicker and more on time since the pandemic began,” she says.

Financial health

With her tenants who have said they can’t pay, she’s undertaken what is essentially a free financial health check. This has included asking for all their documentation such as confirmation of their furlough status, working out what they can afford and also helping them apply for Universal Credit.

“The secret is to do as much hand holding as you can and just make people aware of what their options are and make them feel that they were being supported,” she says.

But like some of her landlord friends in the area, Simms has been helping out frontline workers.

“For example, we were approached by a mental health nurse who needed to isolate away from her family so we suggested she rent one of our serviced accommodation apartments at cost for £400 a month which we normally let out for £80 a night and told her she could stay as long as she liked.

“The nurse was very happy because it was the most affordable property she could find; many serviced apartments in Birmingham are managed by rent-to-rent operators who can’t drop what they charge.”

Read another hero landlord story.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord Hero of the Week #6: Sue Simms | LandlordZONE.

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Post-Lockdown Buy to Let Market – Ltd co. and Personal

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With the lockdown caused by Covid-19, we saw the UK property market effectively shut down for a period of two months, with only essential moves taking place. Lenders responded by cutting LTVs, reducing product ranges, or closing the door for new applications altogether.

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Preventing wider access of direct payments will be detrimental to UC tenants

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This week, Secretary of State Thérèse Coffey took questions from the Economic Affairs Committee on the economics of Universal Credit.  As part of this she told MPs that she does not want to see a return to the widespread use of direct rent payments to landlords with tenants in receipt of housing benefit

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