5 Top UK Buy To Let Property Investment Hotspots

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Where to find property investment hotspots for Buy To Let (BTL) in the UK.

In this video, I go through the top 5 Buy To Let Hotspots in 2021 and the number one best strategy to capitalise in hotspot areas.

The post 5 Top UK Buy To Let Property Investment Hotspots appeared first on Property118.

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OPINION: Is banning Section 21 evictions a bridge too far for the government?

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In January LandlordZONE predicted that the Renters Reform Bill was to have been well on its way through parliament by now.

At the time, the government had been promising for month after month to fix the ‘broken’ private rental market.

Ministers had said repeatedly this was to be achieved through the Bill which would ban Section 21 evictions, give tenants more security in their tenure via longer contracts and make it easier to manage deposits, among other things.

But this week’s Queen’s Speech ‘kicked all of this into the long grass’, as one senior landlord figure put it to me; the government is starting from scratch with a White Paper in the Autumn, after which fresh proposals and legislation may be announced.

Landlords, letting agents and even tenants’ organisations are baffled by this – there have already been two consultations for the Renters Reform Bill, so who why do it all again?

The ‘real politick’ of this is that giving renters more rights sounds great during hustings but is very tricky to implement on the ground, whatever Shelter might say, and also expensive to police.

Keeping tabs on deposits and redress within the rental deposit can be done by people on call centres. Ensuring tenants are treated properly requires boots on the ground, knocking on doors.

Two-year roadmap

So action is to be delayed. And looking at the schedule, for some time. LandlordZONE estimates that if the White Paper is published in September, followed by a 12-week consultation and then draft legislation is laid in parliament in early 2022, it will take around nine months to make it to Royal Assent.

So late 2022 at the earliest, with implementation likely to take another 12 months to give landlords, agents and tech time to get ready (like the Tenant Fees Act did) – so a potential 28-month or two year roadmap, which would take it perilously close to the May 2024 election.

Most experts agree that the government will, instead, cut out all the difficult stuff like lifetime deposits and instead focus on balancing the rights of tenants and landlords so that renters get longer, more stable tenancies should they want them, and courts are given more discretion when granting evictions.

I suspect, as The Law Society has suggested, landlords will have to grant longer contracts, give tenants much longer notice periods when seeking to regain possession and even reimburse tenants should they wish to move back in or sell a property earlier than agreed.

On the other hand, tenants who deliberately dodge paying their rent, make too much noise or sell drugs from their front door, for example, will be ejected much more quickly and cheaply than now.

Unfortunately, we will have to wait another four months to find out.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – OPINION: Is banning Section 21 evictions a bridge too far for the government? | LandlordZONE.

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Fad or the future? Letting agency reveals Bitcoin rent payments system

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Lettings platform Mashroom has begun allowing tenants to use cryptocurrency to pay their rent. 

The online agency now accepts Bitcoin and other cryptocurrencies which it processes through a crypto payment service, converts into pounds and then sends directly to landlords.

LandlordZONE believes Mashroom is the fourth major accommodation provider to accept cryptocurrencies. In 2015 agency RE/MAX became the trailblazer, followed by London BTR property developer The Collective and in February this year Essex estate agency PropertyVine.

Despite this slow adoption, Mashroom says virtual currencies are increasing in popularity, acceptance and use at many retailers and – with lower transaction fees – cryptocurrencies are often cheaper than standard credit card payments.

For customers, the process is like paying by card, where the financial exchange is taken care of by a secure third party, before being returned to the vendor. 

It adds that in the very traditional world of property, there has been a real boost in technological adoption, with many tenants and landlords now much more comfortable using online platforms.

The lockdown has also accelerated changes with an increase in video viewings and online signing.

Stepan Dobrovolskiy, Mashroom CEO and founder (pictured), says that as it’s possible to go through the whole process without stepping foot outside your door, the next logical step is to pay with digital currencies too. 

He adds: “For an increasing number of renters, cryptocurrency is the payment method of choice. With such a large demographic, we have to move with the times to avoid alienating anyone, and accepting crypto payments is the natural next step for a business in 2021.” 

Mashroom is encouraging tenants wanting to pay rent with cryptocurrency to encourage their landlord to sign up to the platform.

Read more about tech for landlords and tenants.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Fad or the future? Letting agency reveals Bitcoin rent payments system | LandlordZONE.

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Tenant on the run following ‘reckless’ attempt to implicate landlord’s partner in terrorist attack

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A tenant who tried to frame his landlord’s partner for the 2017 Westminster Bridge terrorist attack following a dispute over his tenancy has been convicted of perverting the course of justice.

Gerald Banyard (pictured), who lives in Lancashire, tried to implicate his Sussex landlord’s partner by sending package to police stations in Brighton and Eastbourne implicating him in the terrorist atrocity in London.

Although he has been convicted, Banyard did not attend his hearing at Southwark Crown Court this week and a warrant has been issued for his arrest.

His actions followed the attack by Khalid Masood during which he ploughed his car into pedestrians on the bridge and then killing an unarmed police officer outside the Houses of Parliament, Keith Palmer.

“Banyard looked to exploit an extremely tragic and serious situation to try and settle what was a private dispute with his landlord,” says Commander Richard Smith, head of the Metropolitan Police Counter Terrorism Command.

“His actions meant that counter-terrorism resources were diverted to investigate what turned out to be a completely fabricated story which implicated an innocent man.

“His actions were disgraceful and completely reckless.”

Innocent

After the packages were sent, counter-terrorism detectives questioned the landlord’s partner and confirmed he was completely innocent.

He identified Banyard as a possible suspect because he was involved in a tenant-landlord dispute with his partner.

A handwriting expert confirmed that Banyard had written the notes sent to police.

PIC Credit: Metropolitan Police.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tenant on the run following ‘reckless’ attempt to implicate landlord’s partner in terrorist attack | LandlordZONE.

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ADVICE: Rent arrears and the new ‘breathing space’ debt scheme

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The government has shown concern during the pandemic about people with debts they cannot immediately repay, but how does it work asks Tom Entwistle.

As the country continues on the way to recovery from the pandemic crisis, and is moving back to something like normality, many people are experiencing long-term debt problems.

As a way forward the government has introduced legislation designed to alleviate the pressure on these people and help them recover their debt fee position.

The Debt Respite Scheme (Breathing Space Moratorium and Mental health Crisis Moratorium) (England and Wales) Regulations 2020 were passed last November to help those people through the crisis who are in serious debt. It becomes effective from 4^th May 2021.

This situation could easily apply to landlords as to tenants, but it is something landlords and agents should be aware of should their tenants fall into this category.

There is some sensitivity around this matter as landlords and agents are not allowed to initiate conversations about an individual’s private affairs such their debt situation, but it is perfectly acceptable to respond if the tenant raises the matter.

It is also acceptable where, discussing other matters such as repairs, damages or rent arrears where this naturally leads to the tenants claiming that debt is the real issue. Advice can be offered and a knowledge of the various debt services can be useful.

Correct channels

This legislation covers all forms of debt, not just rent arrears but in order for a debtor to qualify for a debt ‘breathing space’ they must go through the correct channels, that is a FCA approved debt advisor, private advisory service, or a local authority debt advisory service.

The decision to offer a breathing space rests with the debt advisor though there are some mandatory eligibility requirements set in the legislation which are not open to discussion or negotiation.

Condition one is that the debtor can maintain the current repayment amounts as they fall due, though they are not in a position to address the existing arrears amount. The idea is that after the breathing space the existing debts will not be any larger that at the commencement of the breathing space.

Interest charges

The breathing space period will be reviewed at regular intervals and can be revoked if the debtor fails to maintain the current payments. No interest or late payment charges can be applied to the debts during the breathing space.

Condition two is that during the breathing space the advisor works with the debtor to plan a longer-term way of getting out of debt. The breathing space is designed to take the stress off the debtor in the short term, giving them the space to think, to plan and to act to reduce their debt position. During this period landlords and agents are not allowed to contact the debtor about debt repayments.

Landlords and agents are being warned in this regard not to send out letters or even standard letters that inadvertently make demands which go against the principle of the breathing space, adding more unnecessary stress for the debtor.

The “standard” breathing space lasts for some 60 days and during this time not only must the landlord or agent refrain from making demands, they are prevented from initiating eviction proceedings under Section 8 of the Housing Act 1988. Any proceedings under way at the time of the grant of a breathing space must be notified to the court. A section 21 application, unless it is motivated because of a debt, may succeed.

Only one breathing space is allowed within any 12-month period.

Landlords and agents are advised to consult with the debt advisor to make sure the whole of the debt is included in the arrangement.

In the case of a mental health debt breathing space, the request for this must originate from the mental health professional treating the individual. Unfortunately for the landlord intermediate payments during the mental health crisis would be suspended, but it is expected that mental health breathing space grants will be quite rare.

Read more about rent arrears.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ADVICE: Rent arrears and the new ‘breathing space’ debt scheme | LandlordZONE.

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Deposit warning: Landlord narrowly avoids £83,760 fine after failing to protect

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Given that the deposit protection rules were introduced in 2004, most landlords are aware of them by now, but people still fall foul of the rules, says Tom Entwistle.

The legislation introduced by the Housing Act 2004 gives tenants and their lawyers something of an incentive to ‘catch out’ landlords who don’t comply with the rules. They can get compensation which is a multiple of the deposit paid, depending on the severity of the breach of the rules.

The tenant can claim and the judge can award anything from one to three times the original deposit in compensation for the tenant.

The Rules:

• Landlords or their agents must protect the deposit in an approved deposit protection scheme at the right time, i.e., within 30 days of taking it.
• The landlord / agent must serve on the tenant certain “prescribed information” – as set out in the legislation including details about the property, the deposit paid and how it is being held. This information must be served on the tenant and whoever provided the deposit.

Despite the rules being reasonably clear and simple landlords occasionally get taken to court over breaches of the legislation and receive quite heavy fines because of it.

What many people fail to realise is that where tenancies have been renewed and the deposit has not been legally protected, the fines can multiply. It is not uncommon for tenancies to be renewed several times over a period of years, so fines can be payable for each and every breach when the deposit has not been protected.

Howard v Dalton

Such was the story in the case of Howard v Dalton (2019), and this was rather an extreme example of multiple fines adding to an exceptionally large amount.

Ms Howard was the tenant of Mr Dalton and entered into a tenancy agreement in 2007 paying an initial deposit of £900. On signing the agreement, she paid a further £845, obtaining a receipt which said “deposit remainer”.

Ms Howard was a long-term tenant entering into a further seven tenancies over a period of years.

The deposit was not protected by the landlord and neither was the prescribed information served on the tenant. The deposit was not protected until 2014 and the prescribed information was never served.

Ordinarily, had the deposit been protected on the first tenancy and the information provided there would have been no requirement to re-protect or re-serve the notice on the subsequent tenancies.

The landlord was vulnerable to a claim.

Sure enough, Ms Howard brought a claim for compensation and the claim was defended by Mr Dalton. The surprise for the landlord was the amount of the claim.

Ms Howard’s claim included fines for 8 tenancies and for failing to protect a deposit of £1745. She claimed that the failure to protect and the failure to serve the notice amounted to 16 separate offences all subject to a fine of 3 times the deposit amounting to £83,760.

The district judge went along with the claim. It was held that there had been two breaches (failure to protect and failure to provide prescribed information) for each of the eight tenancies, so 16 breaches in all. The court awarded the tenant compensation amounting to three times the deposit of £1745 for each breach, making a total of £83,760.

The landlord, perhaps picking himself up off the floor, appealed.

Appeal court decision

It was a fact that the 2007 tenancy deposit had not been protected until 2014, there was no argument over that. The fact that no deposit had been protected meant that no prescribed information, a key requirement, could have legally been served.

The court identified that within S.214 Housing Act 2004 was provided a claim for damages for either a breach of s.213(3) or s.213(6) – it could be one (failure to protect) or two (failure to serve) it could not be both. The penalty was therefore to be one fine per tenancy.

Fortunately for Mr Dalton, Ms Howard had failed to mention in here pre-action correspondence that the eight tenancies involved would be relied on at the trial when claiming compensation. 

Mr Dalton raised this point at the appeal trail, and the judge agreed it was a valid limitation. The judge also applied the 6 years statute of limitations rule which reduced the number of tenancies under consideration to four. Furthermore, the judge decided that the second payment of £845 was in fact a rent in advance payment.

Further still, the judge reduced the fine multiple from three to two times the deposit, not giving any reason for this but these fines are at the court’s discretion, making a total fine and the compensation figure that Ms Howard was to receive at £7,200.

While this fine was much less that it could have been, it is still a substantial amount and a warning to landlords and agents to take great care over deposits. Courts will come down heavily on landlords who blatantly breach the deposit rules, but clearly they are reluctant to impose fines which are so high they would cause unnecessary suffering and distress.

Read more about deposits.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Deposit warning: Landlord narrowly avoids £83,760 fine after failing to protect | LandlordZONE.

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