EXCLUSIVE: New Brexit Visa rules to exclude new overseas landlords

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New immigration rules mean overseas property investors and landlords will find it very difficult to access the UK’s buy-to-let market next year, the Home Office has told LandordZONE.

The Government’s post-Brexit Tier 2 visa programme kicks off on 1st January 2021, with the Skilled Worker visa replacing the Tier 2 (General) work visa.

It awards points for a job offer, with the conditions that arrivals should use English up to a certain level and have a job offer from an approved UK employer.

Landlords are included in the list of eligible jobs but this route is designed for those coming to fill a skilled vacancy that can’t be filled by a resident worker.

That would exclude independent landlords wanting to live here and invest in buy-to-let property.

While EEA nationals who’ve arrived in the UK before 31st December can apply under the EU Settlement Scheme, this is only open for applications until 30^th June 2021. 

£2 million minimum

The Government is also restricting other routes; the former Entrepreneur visa, which allowed businesspeople with between £50,000 and £200,000 in funds to enter the UK to set up or take over a UK business, has been replaced by the Innovator visa, which allows entry only on condition they set up an “innovative business” – which effectively wouldn’t cover property management.

Only those with at least £2 million to invest can come to the UK on an Investor visa, but a Home Office spokesperson tells LandlordZONE: “Whilst investment in property would not satisfy the requirements of the immigration rules, a Tier 1 (investor) may buy property in addition to their permitted investment.”

She adds: “If an individual will remain based overseas, they can come to the UK for the purpose of entering into contracts using the visitor route.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: New Brexit Visa rules to exclude new overseas landlords | LandlordZONE.

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Havering Council extends Licensing and Landlord Fines Money Machine

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Havering Council has agreed to the extension of its landlord licensing gravy train. The current scheme was launched in March 2018 and has bagged the council the best part of a £million with £417,500 in financial penalty fines, and £350,000 from 314 HMO licences issued to landlords and paid for by increased tenant rents.

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SHOCK figures: London to lose a net 13% of all renters once Covid restrictions finish

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London landlords will face a challenging rental property market once the pandemic subsides, it has been claimed.

Rentals platform SpareRoom.com says its research among renters in the capital reveals that 27% are waiting to move once Covid restrictions lift, and that half of them expect to leave London altogether, a majority of them planning to move to towns or villages outside the city.

SpareRoom says that London is therefore unlikely to ‘go back to normal’ as many companies continue to enable employees to work from home, removing the need for them to live within commuting distance of central offices.

The upshot of this is a projected 13% net exodus of renters from London, which is likely to significantly lower rents as supply begins to outstrip supply.

Save money

Looking at the wider market, SpareRoom says almost a quarter of 23-29 year olds left their rented accommodation during the pandemic to save money or after losing their jobs.

Many have chosen to move back into their family homes, and a third of 23-29 olds now live with their parents compared with 18% of thirty-somethings.

“We’re looking at a redrawing of the UK’s rental map in 2021 and London will be the biggest loser,” says Matt Hutchinson from SpareRoom (pictured).

“Whether it’s down to the catastrophic effects of COVID on tourism, hospitality and the arts, driven more by lifestyle factors like wanting outdoor space, or simply the realisation that many jobs can now be done from anywhere, London living is losing its appeal for many.

“We’ve already seen the effects on London rents, with averages falling consistently since spring.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – SHOCK figures: London to lose a net 13% of all renters once Covid restrictions finish | LandlordZONE.

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HMOs: Bath is latest city to launch clampdown plans

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Bath and North East Somerset Council is the latest local authority to clampdown on HMOs within its private rented housing market.

This follows similar moves by a raft of other councils this year particularly on HMO density, a problem that Bath and North East Somerset says it wants to tackle. There is also a Bill going through parliament that will give local councils like Bath greater powers to regulate this type of rented property.

The council is to consider a report to be published tomorrow that will reveal the detail of its plans.

It is expected that these will include bringing new-build properties into its existing HMO policy, as well as including family homes that are converted into multi-occupancy rented units.

The council also intends to tighten up policy for landlords seeking to upgrade HMOs from small to larger units, create new parking standards for HMOs and look at further regulating student HMOs and other types of university accommodation.

These proposed changes are being spearheaded by local Liberal Democrats who have a majority on the council. The party says it is reacting to resident concerns about the rapid spread of HMOs particularly within Bath.

“HMOs are important in the provision of affordable housing for younger people, but we also need to ensure a mixture of housing types in the city,” says Councillor Alison Born (pictured).

“I’ve heard numerous examples of families who have not been able to find homes to buy or rent in Bath, due to the number of HMO properties.

“A better mix could also help protect community assets, such as schools, because the conversion of family homes to HMOs drives down demand for school places.”

If approved, the plans will go forward to a six-week public consultation.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – HMOs: Bath is latest city to launch clampdown plans | LandlordZONE.

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How long do I need to live in the property to avoid CGT?

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I wanted to ask if I sell my main residence and move into my only buy-to-let property thus making it my main residence which I will live in, changing bank account, credit cards, register to vote at the address etc.

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Proposed Fair Rents Bill could lead to more frequent rent increases

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Tenants could be subjected to higher and more frequent rent rises if the Fair Rents Bill is passed through the Scottish Parliament as planned.

In its response to the Call for Evidence on the Bill, which is calling for a rent cap on private rented properties in Scotland

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