Eviction ban extended to 31st May

admin    Uncategorized     agents

Residential tenants will be supported as the ban on bailiff-enforced evictions in all but the most serious circumstances, such as incidents of fraud or domestic abuse, and the requirement for landlords to provide 6-month notice periods to tenants before they evict will also be extended until at least 31 May.

The post Eviction ban extended to 31st May appeared first on Property118.

View Full Article: Eviction ban extended to 31st May

BREAKING: Government extends eviction ban AGAIN, this time by two months

admin    Uncategorized     agents

The government has extended the evictions ban by two months until at least 31^st May, the housing ministry has revealed.

The ban is an extension of the stay on bailiff eviction that has been repeated several times during the Covid pandemic and was due to expire on March 31st.

Also, as well as the bailiff evictions ban, landlords will still have to give tenants six months’ notice of their intention to evict as they do now, but also until May 31^st.

This mans in effect, a landlord who gives notice of eviction on 31^st May will not be able to physically evict the tenant until November.

Two month wait

But the bailiff eviction extension is potentially the most disappointing news for the thousands of landlords waiting to evict tenants and who already have warrants lined up, who must now wait a further two months to evict.

As before, there will still be circumstances under which tenants can be evicted (see full list at bottom) including anti-social behaviour, domestic violence, trespass and extreme rent arrears.

Housing secretary Robert Jenrick (pictured) says: “It is right that as we move through the roadmap, we ensure that businesses and renters continue to be supported.

“We have taken unprecedented action to support both commercial and residential tenants throughout the pandemic – with a £280 billion economic package to keep businesses running and people in jobs and able to meet their outgoings, such as rent.

“These measures build on the government’s action to provide financial support as restrictions are lifted over the coming months – extending the furlough scheme, business rates holiday and the Universal Credit uplift.”

Reactions

Ben Beadle, Chief Executive of the National Residential Landlords Association.

“We welcome clarification that emergency measures in the rental market will be phased out in tandem with the overall roadmap out of lockdown restrictions.

“That said, the further extension to the repossessions ban will do nothing to help those landlords and tenants financially hit due to the pandemic. Given the cross-sector consensus for the need to address the rent debt crisis, it suggests the Government are unwilling to listen to the voices of those most affected.

Polly Neate, chief executive of Shelter

“These extensions will come as a relief to the frightened renters who’ve been flooding our helpline with calls. While the threat level from the virus is still high, it’s right that renters can stay safe in their homes. 

“But as we follow the roadmap out of lockdown, the destination for renters remains unknown. The pandemic has repeatedly exposed just how broken private renting is, leaving many people hanging onto their homes by a thread. And, although the ban and longer notice periods are keeping renters safe for now, they won’t last forever. 

Exemptions list

• Anti-social behaviour (4 weeks’ notice)
• False statements provided by the tenant (2 to 4 weeks’ notice)
• Over 6 months’ accumulated rent arrears (4 weeks’ notice)
• Breach of immigration rules under the ‘Right to Rent’ policy (3 months’ notice)

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Government extends eviction ban AGAIN, this time by two months | LandlordZONE.

View Full Article: BREAKING: Government extends eviction ban AGAIN, this time by two months

Chancellor’s tax rises will hit largest landlords the hardest, experts warn

admin    Uncategorized     agents

Most landlords won’t be affected by a future increase in corporation tax, according to property tax experts.

The tax change from 19 to 25% – announced in the budget and due to take effect in 2023 – will hit rental profits made by limited company landlords with larger portfolios or those making large profits.

Businesses with annual profits of less than £50,000 will see the tax rate held at 19%, rising until it reaches 25% for those with profits of more than £250,000. 

Calculating the effect, Hamptons International found each percentage point rise reduced rental profits by £510, meaning that landlords’ tax bills would go up from £9,684 to £12,743. 

£50,000 and above

The average company landlord owns about three properties but would have to own ten buy-to-let properties worth £190,000 each, with mortgages at 75% loan-to-value, to earn a profit above £50,000.

Research director Aneisha Beveridge (pictured) says landlords holding properties through companies are unlikely to change their ownership arrangements.

But she adds that incorporation is still worthwhile for higher rate taxpayers: “Even at corporation tax of 25%, you would probably still be paying less tax than you would if you held it in your personal name as a higher-rate taxpayer.” 

Cornerstone principal consultant David Hannah (pictured) adds that some landlords might think all they need to do is split their business into several associated companies to gain the benefit of the 19% rate, keeping each of their profits below the £50,000 threshold.

He says: “The proposal anticipates this and will simply aggregate all associated businesses such as companies under common control and reduce the thresholds for each company so that they are effectively taxed as a single entity.” 

Managing Corporation Tax is going to be difficult, says Hannah, who suggests that instead, they could consider maximising available deductions. “For example, the 100% deduction for electric vehicles like vans for carrying out maintenance works if the company does this work in house or maximizing borrowing to increase deductible interest,” he adds. 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Chancellor’s tax rises will hit largest landlords the hardest, experts warn | LandlordZONE.

View Full Article: Chancellor’s tax rises will hit largest landlords the hardest, experts warn

CLAIM: Evictions ban ‘restricting supply’ as tenants opt to stay put

admin    Uncategorized     agents

A leading estate agency has said what most landlords have suspected for some time now, namely that the government’s long-standing evictions ban is beginning to significantly restrict supply within the private rental sector.

The comments have been made by one of Cornwall’s largest estate agencies, 12-branch firm Millerson.

One of its senior director, Jeremy Miller, whose family have run the firm for over three generations, says demand is significantly outstripping supply on his patch with 70 applicants per rental property at the moment.

Miller has told local media that he pins this imbalance on two key reasons – the evictions ban and a wave of city folk escaping London and Bristol for a more bucolic lifestyle during Covid.

He says tenants who might otherwise move home and free up stock are staying put, aware that during challenging economic times – particularly in an area of the UK like Cornwall – staying put gives them greater stability than moving home within the PRS.

“There is currently a colossal demand for rental properties and added to that is the fact there is not a lot of rental properties coming to the market,” Miller (pictured) told Cornwall Live.

“Part of that at the moment is that tenants know that they have protection from eviction.

“The rental market is very strong at the moment. One of my colleagues put a property in St Austell on the market to rent and by the time they’d returned to their desk they had 68 emails before the property came off the market again within hours.”

He also said the SW rental market faced a ‘perfect supply/demand storm’ driven by the evictions ban, high prices tempting landlords to sell up and increased demand from outsiders looking to escape from cities.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – CLAIM: Evictions ban ‘restricting supply’ as tenants opt to stay put | LandlordZONE.

View Full Article: CLAIM: Evictions ban ‘restricting supply’ as tenants opt to stay put

LATEST: Scots landlord loan scheme extended past 31st March deadline

admin    Uncategorized     agents

The Scottish government has extended two loan schemes to give struggling tenants and private landlords with Covid-related financial problems more breathing space.

They can now apply for a Tenant Hardship Loan Fund or Private Rent Sector Landlord COVID-19 Loan Scheme, both of which offer interest-free loans, beyond the original deadline of 31st March.

This follows the Scottish government’s announcement that it is extending the ban on the enforcement of eviction orders until the end of this month, and is a strong indication that a further evictions extension is likely. As LandlordZONE reported on Monday, rumours are already flying within the property industry that this is likely to happen.

Tenant fund

The tenant fund is designed for those who have no other means of housing support. Loans are available up to a maximum of nine months’ rent, for arrears built up since 1st January 2020 and can include up to three months of future rent payments.

Landlord scheme

The landlord scheme offers eligible landlords up to 100% of lost rental income for up to three properties. It helps those who are not classified as businesses, have five or fewer properties to rent and have lost rental income due to tenants being unable to pay rent as a result of the pandemic. Applications for both can be completed online.

Housing minister Kevin Stewart (main pic) says that throughout the pandemic its focus has been on enabling people to stay safe in their homes.

“These schemes have provided vital support”, he says: “For the majority of tenants facing financial difficulties and arrears the best means of support continues to be regular non-repayable support, for example through Universal Credit and Discretionary Housing Payments.

“However, for those who may fall through the gap and are unable to claim such support, these funds offer a helping hand to manage any rent issues that have arisen in the last few months as a result of Covid-19.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Scots landlord loan scheme extended past 31st March deadline | LandlordZONE.

View Full Article: LATEST: Scots landlord loan scheme extended past 31st March deadline

New strategy for Scotland’s rented sector

admin    Uncategorized     agents

Rented sector strategy will be part of a major new housing publication written by the Scottish government apparently looking to improve accessibility, affordability and standards, as part of a new 20 year route map for housing to be published next week.

The post New strategy for Scotland’s rented sector appeared first on Property118.

View Full Article: New strategy for Scotland’s rented sector

ANALYSIS: Is the commercial property sector bombed out?

admin    Uncategorized     agents

The popular conception is that commercial is a write-off, but the reality is somewhat different, and as always in crises, investment opportunities are created

Along with the rest of the stock market, the share prices of commercial-property companies collapsed in March 2020. The realisation that COVID was far more than a bad flu epidemic hit the property industry like a hammer blow, especially as the full impact of the lock-down kicked in.

Notwithstanding the already declining retail sector along with the British high street and the accelerated growth of online and home deliveries, the impact of the pandemic has been devastating for much of the commercial property sector.

With rent arrears and late payments across the board in retail and leisure, there has been a dramatic knock-on effect on valuations. Home working and transport restrictions have had an equally dramatic impact on offices.

Boom sectors

However, it’s not been all bad news. Warehousing, supermarkets, and property that’s housing essential services such as medical have fared far better or even improved.

Although student accommodation and retail parks have taken what is hoped is a short-term hit, pandemic recovery is likely to correct this, but it’s unlikely to help the structural long-term decline in much of retail, and especially many shopping centres. 

The Investment Property Forum (IPF) reports that the overall impact of the pandemic on the return from commercial property in 2020 was on average merely a negative of 1%. This is made up of minus 5% on capital return, and minus 4% of income. Those sectors in decline have been largely balanced by those that have benefited, or at least remained steady.

Shopping centre nosedive

Whilst shopping centres have lost almost a quarter of their values on average, year-to-date, industrial properties in general appreciated by around 4%. Office values have declined by just 2%, this despite many of them being empty for most of last year.

IPF’s consensus forecast for 2021 predicts a modest improvement, with the industrial sector and warehousing continuing to do well, retail still in relative decline, but overall a modest across the commercial property sector rebound in 2022.

For those willing to take a long-term view, whether investing in commercial property directly, or through a fund, the crisis has probably created plenty of good value in the sector.

Charlie Ellingworth (pictured), a partner at Property Vision, a property-investment adviser, told Money Week: “This is no time to leave your capital on furlough. Though the dynamics of the sector are changing, commercial property remains an attractive asset class with yields averaging 5.2%, while interest rates are negligible”.

Mr Ellingworth pointed out that retail will still account for a third of the commercial property sector, despite an overall decline for over a decade – the result of over expansion in the 1990s and 2000s.

According to Savills the retail sector is “over spaced by 40%” due to the growth of online shopping, which is here to stay. There’s one hell of a lot of surplus retail space ripe to be repurposed. This is also where the opportunities exist for the small-scale investor.

Disused shops

Many town centres will have to go through major change if they are to remove the depressing appearance of boarded-up and deteriorating shop fronts. Conversion to residential has long been seen as the way out of the problem and it’s hard to see any alternative.

To this end the government wants to add impetus: changes to planning laws are now permitting a much more flexible change of commercial uses regime, from the conversion of closed shops to hotels and leisure uses, to the provision of town centre residential accommodations such as town houses and flats.

It’s harder to see an answer for many of the smaller shopping centres scattered across the land: an indication of the problem is given by the share price of specialist shopping centre owners Hammerson, once a member of the FTSE-100. The price has tanked by 99% since mid-2017.

Home working impact

The pandemic is bound to have some impact on offices. But this could be more in the way of deferred demand as opposed to long term decline, but the debate is still raging.

“Offices won’t die,” says Mr Ellingworth. “They’re simply too important for social interaction, collaboration and creativity.” Occupational density will likely fall, upgrading and improvements will need to be accelerated, for example separating open plan and providing whole building ventilation systems in large offices, but smaller offices will probably come into their own.

Office supply has already been in decline over recent years as more offices are helped by the relaxation in the planning rules, being converted to residential use. This will to some extent support city centre office values in the future.

Read more about commercial property.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ANALYSIS: Is the commercial property sector bombed out? | LandlordZONE.

View Full Article: ANALYSIS: Is the commercial property sector bombed out?

Free Lockdown Learning – 3 key developments in HMO licensing

admin    Uncategorized     agents

Our next webinar is with Housing Barrister Dean Underwood from Cornerstone Chambers and specialises in HMO and licensing issues.

In this webinar Dean will be looking at three key HMO issues relating to licensing. Essential watching if you are an HMO landlord (and even if you are not!).

The post Free Lockdown Learning – 3 key developments in HMO licensing appeared first on Property118.

View Full Article: Free Lockdown Learning – 3 key developments in HMO licensing