Rent Repayment Order Magic Money Tree is pretty much dead!

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“Rent Arrears must be accounted for BEFORE rent is eligible to be reclaimed under a Rent Repayment Order (RRO).”

At a stroke, this Judgement of the First-Tier Tribunal (in a case defended by Des Taylor of Landlord Licensing and Defence) means that the no-win/no-fee become almost worthless for the lawyers

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Planning Reforms – Take first mover advantage

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New Government Planning Reform and Permitted Development (PD) rules have been introduced.

The investors who get in quick will win a 1st movers advantage in the market.

I will be hosting a FREE Online Masterclass on this very subject but places are going fast.

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Landlords checks of EU tenants after Brexit: Government forced to reveal more details

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The Joint Council for the Welfare of Immigrants (JCWI) has managed to pressure the Home Office into publishing a statement setting out the equality impacts of the EU Settlement scheme, which landlords will have to help enforce.

The charity won its complaint to the Information Commissioner against Home Office secrecy around the scheme, which will force EU nationals and non-EU family members to apply to continue living in the UK legally after we leave the European Union. 

The Home Office had refused to release the Policy Equality Statement but now has 35 days to do so, or 28 days to appeal. 

Under the scheme, the Government plans to give EU citizens a digital code to prove their residency for landlords and employers to look up online.

Tenant criminalised

The JCWI believes that if the Government plans go ahead un-amended, people who have lived and worked in the UK legally for years will be criminalised and prevented from working, driving or accessing vital benefits while landlords will face fines for renting to EU nationals without status.

The JCWI says the scheme will force large numbers of EU citizens and non-EU family members out of status after the cut-off point next year.

It adds: “With so much at stake, the Home Office should be taking every possible step to protect people – instead, the department is trying to keep the risks a secret.” 

The JCWI is calling for a ‘declaratory scheme’ that will grant all EU citizens and family members resident in the UK automatic settled status and provide physical documentation as proof of status.

“After the cut-off point, far more people will fall out of status, with similarly devastating real-life consequences to those faced by the Windrush generation,” it says.

Read more about the JCWI and Right to rent.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords checks of EU tenants after Brexit: Government forced to reveal more details | LandlordZONE.

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This man claims to have built the ultimate property management tech. But is he right?

admin    Uncategorized     agents

A rental property platform founder who believes in his service so much he bought a lettings agency to gain access to its landlords to be guinea pigs is now offering larger portfolio landlords a chance to trial it for free.

Herddle connects landlords, agents, tenants and contractors to improve how they work together by helping them to communicate together more efficiently and cost effectively, and claims to remove 95% of the work for landlords, but give them ultimate control.

Its founder James Fforde (pictured, above), a serial entrepreneur and former chartered accountant, says he has spent a small fortune and three years developing Herddle because he believes traditional property management is ‘archaic’.

But it’s crowded market for kind of tech so why should landlords try out his? Fforde claims Herddle is unique because it handles every aspect of property management rather than focussing on particular areas, enabling landlords to see the whole picture in real time using either its app or website.

It is also not just tech – Herddle employs a team of property management professionals and each landlord gets a dedicated person to deal with them.

Herddle covers everything including sourcing tenants, portal listings, virtual tours, referencing, photos, rent collection, contract renewals, financial statements, invoice tracking, document management, compliance, maintenance and utility switching.

Fforde has deep pockets – to try out the platform, he bought London lettings agency Alan Ives in Plumstead last year and approximately 100 of its landlords are now using the platform.

Herddle chages individual landlords a 10% management fee, but those with larger portfolios are charged less, depending on the number of properties they manage.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – This man claims to have built the ultimate property management tech. But is he right? | LandlordZONE.

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LATEST: Shelter’s rhetoric on arrears and evictions ‘doesn’t give the full picture’

admin    Uncategorized     agents

Claims by housing groups such as Shelter and Generation Rent that England faces an evictions ‘tsunami’ at the end of this month are significantly wide of the mark, research by a leading industry accreditation scheme has revealed.

Safeagent’s survey of 106 letting agents found that most dismissed fears of widespread evictions as a result of the pandemic; 36% of firms said they didn’t believe any tenants would be evicted after the ban ends, while a further 57% said it would be less than 10%.

The majority said this wasn’t down to arrears built up during the pandemic, but planned proceedings or non-payment of rent before March.

In terms of arrears, 74% of agents said that the proportion of their tenants who haven’t been able to pay their rent over the past three months was less than 10%, while one in ten said it was between 10-20% of tenants, and 8% said none of their tenants were in arrears.

Arrears reality

For those who are in arrears, most tenants were behind by one or two months (42% and 44% respectively) while only 5% of firms said tenants had arrears of more than three months.

Safeagent chief executive Isobel Thomson says the results show that the rhetoric emanating from lobbying groups around arrears and the likely number of tenants to be evicted because of their inability to pay rent, doesn’t give the full picture.

“We know times are hard, but we also know how much good work is being done by agents and landlords to maintain tenancies,” she says.

“Agents are not seeing high numbers of tenants in arrears and they are reporting landlords being sympathetic and willing to work with their tenants to find solutions.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Shelter’s rhetoric on arrears and evictions ‘doesn’t give the full picture’ | LandlordZONE.

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Report calls for reform of UC including direct payments to landlords

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Earlier this year, Caridon Landlord Solutions joined other industry experts in responding to the House of Lords Economic Affairs Committee’s inquiry into the economics of Universal Credit. Following this, a series of recommendations for an overhaul of Universal Credit have now been handed to the Department for Work and Pensions by the House of Lords Economic Affairs Committee.

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Exclusive webinar: What’s the future for landlording

admin    Uncategorized     agents

Landlords are in the thick of it this summer as the end of the eviction ban looms and red tape, taxation and costs ramp up on a local and national level.

So what does the future hold? Does it still make sense and money being a landlord? Has regulation gone too far?

Three big beasts of the private rental market are to gather virtually on 20^th August during a webinar hosted by Landlord Zone to answer these and many other questions.

These are Paul Shamplina, founder of Landlord Action and star of Channel 5’s TV show Nightmare Tenants, Slum Landlords; Ben Beadle, CEO of the National Residential Landlords Association; and Eddie Hooker, CEO of Hamilton Fraser and My Deposits.

The trio will discuss and debate both the current state of the buy-to-let market, the impact of COVID 19, the ongoing government support for the property industry and landlords, the Stamp Duty ‘bounce’, trends and tips for landlords, as well as answering live questions from those watching.

The three have ample credentials to discuss the challenges facing the sector and to dissect what’s going on right now.
Shamplina has spent nearly three decades helping landlords with problem tenants, Beadle has been a landlord for over 20 years and Hooker has been working in the industry for nearly 25 years.

Book your ringside seat.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Exclusive webinar: What’s the future for landlording | LandlordZONE.

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Mini-boom drives house prices up 1.6% in July

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The August Halifax House Price Index has just been released showing the results of the Stamp Duty holiday with a sharp increase pushing prices to their highest ever levels in July at an average house price of £241,604.

The ‘mini-boom’

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Benefits cap has hit 150,000 renters, DWP figures reveal

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Homeless charity Shelter is urging the Government to scrap the benefits cap for at least the duration of the pandemic after new DWP statistics revealed that more than 150,000 households have been hit by it – a 93% rise post-Covid. 

Of those households capped, 43% saw their benefits docked by £50 or more per week and 17% lost £100 or more per week.

Last week, ministers refused to budge on the issue, despite warnings from the Social Security Advisory Committee that people living in areas with high rental costs were losing out due to a lack of flexibility in the system.

Since it was introduced in 2013, the cap has limited how much any one household can receive in total benefits, including Universal Credit, Housing Benefit and Child Benefit.

Families with children and couples in London can receive a maximum of £1,916.17 a month while those living outside the capital can claim up to £1,666.67.

Homelessness

Critics like Shelter say it has contributed to rising homelessness and family debt. Explains chief executive Polly Neate: “It’s undermining the Government’s efforts to shore up our welfare safety net.

“Many embattled parents who were already struggling with low pay and have lost their job or had their hours cut because of Covid-19 are finding themselves capped – losing vital support at the worst possible time.”

The Government has already taken some steps to help tenants and benefit claimants; in March, the 500,000-strong surge in the number of Universal Credit applications persuaded it to raise its Local Housing Allowance rates by up to 20% in some areas.

And in June, it agreed to come up with a new way of paying up to 85,000 Universal Credit claimants, after the Court of Appeal ruled that the DWP’s failure to cater for ‘non-banking day salary shift’ was unlawful.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Benefits cap has hit 150,000 renters, DWP figures reveal | LandlordZONE.

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Fancy that! Only 3.9% of landlords volunteer to tell HMRC about unpaid taxes

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An HMRC campaign to encourage landlords to voluntarily disclose any tax they owe on their rental properties has only managed to recoup a small percentage of its original target.

Announced in 2013, the let property campaign estimated that up to 1.5m landlords had underpaid or failed to pay up to £500m in tax between 2009 and 2010.

But, via a freedom of information request, chartered accountant Saffery Champness has discovered that since then only 58,779 people – 3.9% – have made voluntarily disclosures to HMRC, despite a recent increase.

The amount of tax yield recorded by HMRC from these disclosures is £163m, or just under a third of the expected haul.

There were 16,318 disclosures in 2018-19, an increase of 147% from the previous year, while this fell by 55% to only 7,362 disclosures in 2019-20.

Offer to pay

One of the campaign’s conditions is that once a taxpayer has informed HMRC of any previously undisclosed relevant income, gains, tax and duties, they have to make a formal offer to pay the full amount owed.

Saffery Champness partner Zena Hanks believes legislative changes may have unsettled landlords who were unsure of their new tax position.

She says: “The spike in the number of disclosures in 2018-19 may reflect the emerging threat of requirement to correct penalties, which began to be levied on undisclosed foreign property rental income as of 1st October 2018. It may also be a consequence of the property tax changes that have been introduced in recent years.”

Hanks adds: “The most common reason that was cited for disclosing to the campaign was taxpayer failure to notify HMRC of liabilities in the first place, which is likely a reflection of the fact that many of these landlords may have been unaware that they owed anything at all.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Fancy that! Only 3.9% of landlords volunteer to tell HMRC about unpaid taxes | LandlordZONE.

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