Housing benefit causing young to choose between rent debt and health

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Young people are being forced to choose between racking up rent debts and risking their health due to rules limiting what they can claim for housing benefit. Those under 35 who are now relying on benefit to pay their rent for the first time will find that support will only be available to cover the cost of a room in a shared house.

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HMO landlord fined £70,500 after failing to upgrade properties in ‘shocking’ condition

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A rogue landlord who failed to repair her two run-down HMOs which had to be shut down, has been handed a £70,500 fine.

Lystra Dorval, of Oaks Lane, Ilford, was given ten penalty notices for poor management of the properties in Hayes Road, Clacton, where tenants endured a catalogue of faults, including blocked fire escapes, broken staircases and toilets, and dangerous electrics.

They reported being threatened with eviction for pointing out the problems, while neighbours also complained about anti-social behaviour and the properties’ poor condition.

Tendring Council in Essex gave Dorval a list of works to complete and a few months later told her to immediately repair the fire alarm.

Housing officers shut down the bedsits using an Emergency Prohibition Order and rehomed her tenants two days later when the work hadn’t been done.

Gas leak

The next day a gas leak and flooding were found after pipework was stolen, and during clear-up work further damage was revealed including floors at risk of collapse, drains blocked with rubble, and rotting waste.

Following “slow and unsatisfactory” progress on repairs to the building, enforcement notices were issued, and Dorval had her licences removed as the council said she was no longer a fit and proper person to run the HMOs.

She appealed, but a First Tier Housing Tribunal has now reached a similar decision, although it did reduce her original fine from £90,000 set by the council.

Paul Honeywood (pictured), Tendring councillor responsible for housing, says the case sends a strong message to landlords.

He adds: “We work closely with landlords as the vast majority want the same thing – a decent property which is good for the tenant and provides them with rental income. Sadly, this was not the case here.”

The property had been operated as a care home by Dorval for nearly three decades until 2014/15 before being investigated by the Care Home Commission and eventually shut down. It was then converted into two HMOs.

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Top fund manager says Real Estate Investment Trusts offer exceptional value…

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Star fund manger Nick Train’s Lindsell Train UK Equity Fund has produced a total return of 352% since its launch in 2006, compared with an 83% return for the FTSE All-Share.

The Finsbury Growth & Income Trust that is also managed by Train has performed equally as well, producing a 65% return for its investors over five years to 31st August, compared to 17% for the FTSE All-Share index.

The famously long-term buy and hold investor has held many of the stocks and funds in his portfolios for over ten years, but recently he’s been on something of a buying spree, taking new stakes in soap manufacturer PZ Cussons, drinks firm Fever-Tree, and credit rating agency Experian.

Train’s latest quarterly report for investors in the Lindsell Train UK Equity Fund makes for interesting reading, noting in particular that he thinks a number of property-based investments – especially Real Estate Investment Trusts (REITs) – look oversold right now, and he’s been taking advantage.

Since the end of September, for instance, he’s taken positions in Supermarket Income REIT, the Schroder Real Estate Investment Trust, HICL Infrastructure, and Regional REIT.

Despite the turmoil caused by Covid-19, says Train, investors in the UK are really spoiled for choice right now, though he does stress the importance of steering clear of the worst-hit sectors, such as travel and hospitality. Even the most conservative of investors is likely to find stocks with obvious appeal, he says:

“I genuinely believe this in part reflects the long period of disappointing absolute and relative returns delivered by the UK stock market,” Train writes.

“It’s simply that more opportunities are being presented to us as other investors give up on the UK. I don’t exaggerate when I say ‘give up’: have you seen the industry data showing monthly outflows from across all UK equity funds? They are substantial and sobering.”

In other words, thinks Train, a bit of a valuation gulf has opened up between what global investors are valuing UK stock market at, and Train’s own view of prospects the UK has to offer, particularly the kinds of high-quality UK stocks that he traditionally goes for.

Despite his reputation for his investing patience, at times “sitting on his hands” for many years on his favoured investments, with little by way of trading action, he now sees many opportunities in the market that are too good to miss. He will likely be making more purchases for his funds in the months ahead. That increased activity for Train includes property investments.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Top fund manager says Real Estate Investment Trusts offer exceptional value… | LandlordZONE.

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BREAKING: Landlord mortgage arrears jump by 19%, latest lender figures reveal

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The number of landlords with buy-to-let mortgages in arrears has leapt by 19% over the past three months, latest figures from UK Finance reveal.

The organisation, which represents the UK’s mortgage lenders and personal finance firms, reveals that there were 5,400 buy-to-let mortgages in arrears last quarter owing more than 2.5% of the outstanding balance.

Of these, 1,350 were more serious arrears owing 10% or more of the balance.

Jonathan Harris, managing director of mortgage broker Forensic Property Finance, says: “The uptick of buy-to-let mortgages in arrears is from a low base, with the overall picture suggesting current levels remain lower than in previous years.”

UK Finance says this is largely down to the ‘mortgage holiday’ its members have offered struggling landlords, and the moratorium on repossessions enforced during the pandemic.

Repossessions

Just 230 buy-to-let mortgaged properties were taken into possession in the third quarter of 2020, 71 per cent fewer than in the same quarter of the previous year.

“Following the industry moratorium on involuntary possessions, these low possessions numbers in Q3 2020 for the most part reflect cases where the customer requested the possession to go ahead or where the property was vacant,” says UK Finance.

Harris adds: “The past few months have been difficult for landlords, however, with evictions put on hold, and many may be tempted to sell up once they have an opportunity to do so.”

But however worrying the leap in arrears may seem, the situation for landlords remains mild compared to the darkest day following the global financial crisis, when an estimated 14,000 buy-to-let mortgages were in arrears.

Read more about Coronavirus and the PRS.

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CGT REVIEW proposals discussion LIVE on YouTube at 1:15pm this afternoon

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The Office of Tax Simplification has published its proposals to Chancellor Rishi Sunak in regards to CGT.

A link to the 131 page document can be found HERE.

The Breaking News Live video will be hosted by Ranjan Bhattacharya and myself.

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