Tory MP: Why I’m hoping for a Renters Reform Bill announcement tomorrow

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The demise of Section 21 ‘no fault’ evictions is set to come a step closer with the expected announcement of the Renters Reform Bill in tomorrow’s Queen’s Speech, a leading Tory MP has said.

First revealed in 2019, the bill will also bolster the Section 8 notice process, usher in a national scheme of ‘lifetime deposits’ for tenants, and reform or abolish Assured Shorthold Tenancies.

Writing in The Times, Conservative MP Nickie Aiken (pictured) said she expected to see it revived and able to make fundamental changes to help fix renters’ problems and strengthen their rights.

The Cities of London and Westminster MP said it needed to remove the “arbitrariness of evictions” and create a system less skewed in favour of landlords by abolishing Section 21.

“I have immediate family who have moved from the security of homeownership to the private rented sector,” said Aiken.

“Like many families in similar situations, the precarious nature of the sector is striking.

“Poor living standards and regulatory problems are an all-too-familiar reality for many renters. Even the best tenants have little protection from being ousted from the place that they call home.”

Unsettling

She added: “It is unsettling that eviction can happen to virtually anyone through the powers of Section 21 notices.”

Aiken pointed to a new YouGov poll that showed 76% of people think landlords should not be able to evict tenants without giving an acceptable reason.

She said that while it was clear the market has seen some seismic shifts, legislation has been slow to keep up or even respond to these changes.

“The abolition of Section 21 is the start but we need to do more to support our renters to give people a stake in the property market and assure them with long-term security.”

She added however, that it was important to recognise that any changes should not take away from a landlord’s right to regain possession of their property when tenants are at fault.

Read Aitken’s comments in full (requires subscription).

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How liable would we be in the case of a fire?

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I am a Freeholder and Shared Freeholder of two Victorian conversions, each with 3 flats over 3 storeys including the ground floor.

Whilst we abide by standard fire safety rules for example 30 minute fire doors, wired smoke alarms

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Capital gains tax tips on family gifted property?

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My wife has a part-time job earning 12,000. Her mother signed over her house in 2002 giving half to my wife’s sister and half to my wife.

My wife’s mother died in February, and they decided to sell the house.

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Tom’s view: ‘This is the biggest home building boom we’ve seen for many years’

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Although Covid has hit the property sector hard, it’s adapting fast and construction is growing – but there will be winners and losers, says Tom Entwistle.

Covid has not been all bad news for UK property: working from home and lockdown restrictions have produced a boom in DIY and home improvement works, while the desire for more space has seen relocation enquiries with the property portals go through the roof. Foreign travel bans have resulted in a boom on the demand for UK holiday accommodation and moves toward suburban / rural rentals.

Britain’s construction sector is also seeing its biggest increase in work in five years. With strong demand for housing and with other projects resuming full working, as the coronavirus pandemic eases, the building industry has not be busier for some time.

Impact of the pandemic

The downside to all of this, as the impact of the pandemic, coupled with Brexit, becomes clear, is the impact on the demand for rentals in inner cities, and the shortage of building and other products and building materials which many economic experts warn is resulting in price inflation.

The lock-down induced DIY and home improvement boom are giving a real boost to companies involved in materials supplies, such as builders’ merchants and furniture stores. Logistics and warehousing companies involved in home deliveries have never busier as people continue to work from home and use their travel savings on this alternative spending.

A Royal Institution of Chartered Surveyors (RICS) survey of its members predicts that profit margins in the building sector will increase for the first time since well before the pandemic as the volume of work continues to rise over the coming months.

RICS Chief Economist Simon Rubinsohn (pictured) says: “The indications are that the (building) industry has adjusted relatively well to COVID-related work practices with most respondents to the survey suggesting only a small hit to productivity,”

Residential Boom

In late 2020 early 2021 private residential construction has seen the biggest rise in construction work, followed by infrastructure projects as the government gears-up to fulfil its election promises on increasing spending on infrastructure, especially in the north. Social housing, public-sector works and industrial and commercial projects have all seen increases in activity levels.

The RICS survey which was undertaken over the last couple of months shows that Britain’s property market has performed much more strongly than the wider economy. It’s a result that the RICS largely puts down to the Stamp Duty holiday on house purchases and a sudden rise in demand for larger homes as people look to move out from city centres to properties more suited to home-working.

The pandemic has also resulted in a clear shift in demand away from flat shares with a group of strangers, the traditional first move into city work-life, to rentals as singles, with partners or even returning to live with parents.

Material shortages

The IHS Markit’s Purchasing Managers’ Index for the construction industry shows the biggest rise in activity in the sector since 2014, but RICS points to the shortages in the supply of building materials as the biggest constraint on construction, rather than anything to do with financing difficulties.

The RICS study found the productivity in the sector was down by 5% due to social distancing involved in the Covid work restrictions for workers. However, this, it says, was a smaller impact than surveyors had expected as the lock-down working rules were introduced, and the recent recovery appears to be more than making up for that.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tom’s view: ‘This is the biggest home building boom we’ve seen for many years’ | LandlordZONE.

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PROFILE: Meet the Labour’s new shadow housing minister who’s also a landlord

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New shadow housing minister Lucy Powell – who has called for tougher PRS regulations – is a landlord herself.

The MP for Manchester Central is in favour of secure tenancies for life and creating more regulation for HMOs but should have a good understanding of the sector’s challenges as she rents out a room in her London flat.

She is also a shareholder and director of New Road Management which owns the freehold of six flats in Camberwell, where she lives.

Powell, an MP since 2012, replaced Thangam Debbonaire following Keir Starmer’s post-election reshuffle, and has been vocal in parliament about PRS shortcomings during the last decade.

In the debate on the Housing White Paper in 2017 she said: “By far and away the worst-quality housing in Manchester is in the private rented sector.

Broken market

“It is unfit for human habitation, infested, damp and dirty, and it is being paid for, by and large, by the taxpayer through housing benefit. When will the Government intervene in that broken market?”

In the past she’s called for a licensing scheme in the city and believes Airbnb and similar short let platforms are creating a serious problem in central Manchester, damaging neighbours’ lifestyle and neighbourhoods.

She’s endorsed the Labour policy of further relaxing the planning rules on building new homes and recently backed a rent to buy development in Openshaw where the rent is significantly reduced to allow tenants to save up to get a deposit to buy part or all of the house over five years.

Powell has regularly spoken out to get the government to support leaseholders in her constituency who are trapped in Grenfell-style flats.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – PROFILE: Meet the Labour’s new shadow housing minister who’s also a landlord | LandlordZONE.

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Lucy Powell is new Shadow Housing Secretary

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Following the massive election disappointments in England last week, Sir Keir Starmer’s shadow cabinet reshuffle has included replacing Thangam Debbonaire as Shadow Housing Secretary with Manchester MP Lucy Powell.

Lucy Tweeted: “Really pleased to become the Shadow Housing Secretary –

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Is becoming a property investor easier and more attractive post COVID?

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Total Landlord Mortgages investigates the impact COVID-19 has had on the buy to let market and explains why now, with restrictions easing and life returning somewhat to ‘normal’, is a good time to invest.

The COVID-19 pandemic may have hit the economy hard, but the buy to let market continues to boom. In 2021, more property investors than ever have formed companies to purchase buy to let homes and rents are primed to rise beyond expectations.

Companies House figures reveal that almost 42,000 companies were incorporated by landlords last year – a 23 per cent increase compared to 2019.

That takes the number of buy to let companies to a record total of 228,743, with almost half of these based in London and the South East.

Meanwhile, letting agent trade body, Association of Residential Letting Agents (ARLA) says 60 per cent of landlords increased their rent prices in March 2021. This is due to the fact that there are fewer properties available to rent but a growing number of tenants looking for a place to live.

So, with demand for rental properties outstripping supply and buy to let continuing to boom, is becoming a property investor easier and more attractive post-COVID?

As the nation emerges from lockdown and prepares for life after the pandemic, we asked Total Landlord Mortgages Principal, Daniel Lee, the frequently asked property investment questions.

Will buy to let mortgage interest rates rise?

Bank of England interest rates have stayed at a historic low of 0.1 per cent since March 2020 and are likely to stay at this rate for some time. The low interest rates were introduced during COVID-19 to encourage the economy to grow and are expected to remain as we come out of the impact of the coronavirus pandemic.

Will there be a property crash?

“This reminds me of a talk I went to around seven years ago with the leaders of the banking industry; one of them said that if there is an economic crash or the stock markets crash you will not see the Government stepping in to stimulate or prop up the economy.

However, if there is a chance the housing market will crash the Government will always make moves to strengthen and support this sector, which is exactly what happened in 2020 when the Stamp Duty Land Tax holiday was introduced for first-time buyers and movers.”

Daniel Lee, Total Landlord Mortgages

Has COVID-19 changed the rental market?

Bricks and mortar have never been more important. For the majority, the house you live in has also now become the place you work and socialise from.

Because of the lockdowns and social distancing restrictions enforced by COVID-19, more people are working remotely from home than ever before and space for a home office has become a priority to tenants.

The need for this extra space is something potential landlords are looking for in their new rental properties as they look to make them more attractive to  prospective tenants.

As well as office space, the pandemic has also made tenants appreciate outside areas and private gardens. Tenants are now increasingly looking for homes with a garden or outside area to relax and socialise in, whereas this may not have been a priority previously. A KFH study showed that 58 per cent of tenants say access to private outdoor space is paramount, and Ome’s rental market predictions highlights the shift out of cities to meet tenants’ increased requirement for outdoor space.

Are staycations attractive for holiday let investors?

Holiday home sales in the South West, Wales and the Lake District are booming as holidaymakers opt for UK breaks over international holidays due to COVID-19 travel restrictions, according to lender Hodge Bank.

Buyers are paying an average £401,000 for their holiday home, with the number of loan applications doubling in North Wales around the Lleyn Peninsula and Snowdonia.

Typically, the yield from a short term holiday home let is higher than that of a similar buy to let home, and the tax breaks are more attractive than those of other property investments.

For landlords looking for insurance to cover a holiday let, Hamilton Fraser Total Landlord Insurance offers a tailored UK home insurance policy as part of their landlord insurance offering, that provides comprehensive cover for holiday homes, whether they are for family use or let on short term rental agreements.

Are rents likely to continue to rise?

The latest official data from the Office for National Statistics shows that rents have increased on average 1.4 per cent year-on-year each month since January 2020 and a staggering 10.2 percent in the last six years (since 2015). Meanwhile, letting agents report that the supply of rental property has fallen for four months in a row, yet tenant demand is rising, which supports the reason for the increase in rent costs.

The Royal Institution of Chartered Surveyors (RICS) echoes this analysis, forecasting a three per cent rise in rents across the country excluding London, where they are expected to fall flat. This is likely to be because with more people working from home, the need to live in London has decreased.

The balance of supply and demand is tilting towards landlords and is likely to result in rents rising until the market adjusts again.

Are landlord mortgages easy to get?

Lenders still have an appetite for buy to let mortgages and the good news is that some are easing borrowing rules for landlords.

Total Landlord Mortgages can share some exciting news that helps borrowers who may have struggled to find a loan before. Find out more here.

Our lenders are now offering mortgages for individuals and companies that cover the following:

• Buy to let with just 100 per cent rental multiples
• Residential property, including ex-local authority homes; semi-commercial units; multi-unit freehold blocks (MUFB) and houses in multiple occupation (HMOs) above commercial premises
• Second homes, including AirBnB rentals and holiday lets
• First time landlords
• Foreign nationals
• Expats
• Borrowers with poor credit histories
• Loans for partnerships, trusts, limited companies and offshore companies

Total Landlord Mortgages can also help landlords transferring property from individual holdings to companies for zero consideration.

This should interest landlords looking to change their business status for tax purposes who are worried about the implications of stamp duty and capital gains tax when making the transfer.

Call Total Landlord Mortgages today on 033 224 8918 for advice and guidance to finding the right financial solution for you. Or alternatively request a call back for a mortgage quote here.

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Stairlift request by individual in a block

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We own an apartment with a share of the freehold in North London. The block has 9 flats and we are on the top floor. Over the past few weeks another owner has made a request to the block management company that they require a stairlift for easier access.

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WARNING: Landlord reveals how he was tricked by sub-letting scammer and is now homeless

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A landlord is fighting to remove tenants from his property after he was tricked into allowing it to be turned into an illegal HMO.

Jackson Annor signed a six-month contract in September 2017, believing his three-bedroom flat in Ilford was going to be used as accommodation for company directors as part of a rent guarantee scheme.

But due to legal wranglings and Covid delays he is still trying to gain possession three years later and is owed more than £14,000 in unpaid rent.

Annor signed the contract with Luis Felipe Limongi Tilleira who, he has since discovered, was among a group hit with fines and costs totalling around £79,000 in 2016 after they rented out properties using fake names and businesses in Newham.

It was estimated that the group was receiving an income of more than £1.25m from their network of properties.

Just a trick

He tells LandlordZONE: “I didn’t do proper due diligence as the Open Rent check was inconclusive but by that time he had given me a £2,400 deposit. It was just a trick.

“I found to my horror that he was using the property as an illegal five-bedroom HMO without my consent, while the business was not registered with trading standards, the property ombudsman or the property redress scheme.”

Redbridge Council complained that the flat was overcrowded and noisy, and made allegations of drug dealing. Annor served a notice to quit in 2018 but Limongi refused to hand over the property. After two hearings, the court has finally granted a possession order ordering Limongi to produce the keys, but he still hasn’t done so.

“The judge didn’t grant me the money I’m owed and I doubt I’ll ever get it but I just want my property back now,” adds Annor. “I’m completely devastated. I have fallen on hard-times, I’m homeless and unable to pay the mortgage on the property which he benefits from.”

LandlordZONE has approached Limongi for a comment.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – WARNING: Landlord reveals how he was tricked by sub-letting scammer and is now homeless | LandlordZONE.

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BREAKING: Shadow housing secretary replaced by Labour moderate Lucy Powell

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Shadow housing secretary Thangam Debbonaire has been promoted and replaced by Lucy Powell as part of Keir Starmer’s reshuffle following last week’s disastrous election result for Labour.

54-year-old Debbonaire was in post for just over a year and was notable only for a handful of fiery speeches in parliament and a prolific output of written parliamentary questions to her opposite numbers, Robert Jenrick and Christopher Pincher.

The Bristol West MP has been moved to a more high profile job in Starmer’s reshuffle, albeit a less public-facing one, as shadow leader of the House of Commons.

Debbonaire’s housing beat will now be covered by 46-year-old Lucy Powell, who is a well-known pro-EU campaigner and moderate with a background in public relations and campaigning for the Labour party.

Party leaders

Unlike Debonnaire, Powell has connections to the centre of the party having worked with former Labour party leaders Neil Kinnock and Ed Milliband.

She has been an MP since 2012 for Manchester Central, has held two shadow roles (Education and Cabinet Office) but was discredited during Labour’s disastrous 2015 election defeat under Ed Milliband during which she was responsible for several PR blunders.

“Really pleased to become the Shadow Housing Secretary – some really big issues to tackle from cladding, housing crisis, private rented sector, homelessness and providing decent housing for all, to name a few,” she said today.

It has also been announced today that a Labour government would relax the planning rules on building new homes even further than the Conservatives, a policy Powell endorsed on Twitter today.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Shadow housing secretary replaced by Labour moderate Lucy Powell | LandlordZONE.

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