Join Me On My Property Development Project Site

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Join me at my new property development project as I take you on a site tour through this shop and uppers permitted development conversion project.

Click on the video below:

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Explained: Major upcoming EPC Regulation changes for Buy-To-Let landlords

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The UK Government has identified that homes across the UK contribute about 1/5 of all carbon emissions from the country. In order for the UK to reach its ambitious carbon neutrality goals, the UK Government has decided to focus on improving the energy efficiency of homes, especially buy to let properties and new builds. As part of this, in several recent consultation documents, it has been suggested that the minimum energy efficiency standard (MEES) of residential buy-to-lets should be raised.

At this time all buy to let properties must have an Energy Performance Certificate (EPC) rating of E or above. Meeting this requirement meant that many landlords needed to undergo costly upgrades to their properties in order to legally advertise and let their properties to tenants.

Under current UK guidelines, landlords need to update the EPC at least once every 10 years. Not having an EPC rating that meets the minimum energy efficiency requirements could result in large fines for landlords.

Find out more in our latest EPC Guidebook

Upcoming EPC Regulation Changes

As already mentioned, the current minimum energy efficiency standard for buy to let properties is a band E. This MEES came into full effect last year in 2020. However, in a consultation document from late 2020, it was suggested that the minimum EPC rating be raised to a band C for all new tenancies by 2025, and all existing tenancies by 2028.

According to recent survey statistics, almost 60% of homes in the UK have a D rating or lower which means this change will affect the majority of landlords in the UK potentially costing them £1,000s in forced property upgrades. The UK Government has released suggested changes and potential costs associated with these changes to reach the new minimum EPC standards. Landlords will need to review their insulation in walls, floors, and windows, as well as potentially install new, more energy-efficient boilers.

If this sounded bad enough, in a consultation document from June 2021 it was determined that this bar should be raised again. The document strongly suggests raising the minimum EPC rating for buy to let properties to a B by 2030 with only 4 of the 84 consultants thinking this minimum ‘inappropriate’ or unachievable.

Regulations changes are covered in more depth in our free EPC Guidebook

What do these EPC regulatory changes mean for landlords?

The first big issue is the cost. Currently, the cost for EPC improvements for landlords is capped at £3,500. However, this cap will likely be raised to £10,000 for the new EPC minimum. And while there are potential funding options that landlords can reach out to, they are few and far between.

What this means is that landlords will need to get a new EPC rating done with suggested changes for improvements. They will then need to implement these changes at personal cost just to legally keep their property as a buy to let. Landlords should keep careful records of all expenses accrued whilst improving their EPC rating using a digital income and expense tracking system like Landlord Studio. Once you hit the cap, you’ll be able to register for an exemption so that you don’t need to make any further changes at that time and good records will be vital an exemption from further improvements is to be filed.

With the EPC bar being raised again by 2030, it’s likely that you’ll need to spend even more money. As such landlords need to be planning property improvements in order to spread the cost of these improvements out over the next 10 years.

There are a few exemptions to meeting the new minimum EPC regulations. Examples of exemptions include:

• if the building is listed and upgrades would unacceptably alter the properties character or appearance,
• the upgrades or changes required to improve the EPC are not approved by the mortgage lender
• or the work is carried out and the cost accrued but the EPC rating has not yet reached the minimum energy standard.

If you believe your buy to let may be exempt you can register it on the PRS exemptions register.

We have outlined a complete breakdown of the current EPC regulations, the upcoming and potential changes mentioned in this document, as well as exemptions, suggested property improvements, and a list of penalties along with references and links to further reading to important documents such as the aforementioned consultation documents and government papers in our downloadable EPC guide.

To learn more about EPC and the upcoming changes, download our free EPC Guidebook here.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Explained: Major upcoming EPC Regulation changes for Buy-To-Let landlords | LandlordZONE.

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LATEST: PRS management firm under investigation as rent payments falter

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Some landlords have been discovering this week that expected rent payments have not popped into their bank accounts, a problem that has been traced back to property management firm ARPM.

The company is well established in the private rental sector and is used by many lettings agents to outsource management of their inbound maintenance requests by tenants, and to collect rental payments and sometimes deposits too on an agent’s behalf.

But in recent days many landlords have discovered that their monthly rent payments have been missed, only to be told by their letting agent that ARPM is not taking phone calls or returning emails.

The company’s boss and senior team are also not returning calls, emails or text messages, and agents report that many of its employees’ out-of-office messages show they have left the company.

Investigating

ARPM is registered with both Client Money Protect and mydeposits and a spokesperson for both organisations has told LandlordZONE that they are aware of potential issues with the holding of deposits and client monies via ARPM and are ‘currently investigating’. 

“This is a potentially complicated scenario and we have limited information at the moment. 

“Any landlord, tenant or agent who thinks they may be affected should contact mydeposits or Client Money Protect immediately. 

“We would also suggest that in the meantime, affected agents should also notify Action Fraud on 0300 123 2040, the Insolvency Service on 0300 678 0015, your relevant CMP scheme, and make your local Trading Standards team aware. 

“We will endeavour to provides updates as more information materialises.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: PRS management firm under investigation as rent payments falter | LandlordZONE.

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Landlords join 100 organisations calling on Boris to U-turn on £20-a-week benefits cut

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The National Residential Landlords Association (NRLA) has joined forces with Generation Rent and Shelter to urge the government not to go ahead with its planned £20-a-week cut to Universal Credit and Working Tax Credit at the beginning of October.

The landlord body is one of 100 organisations including Citizens Advice and the National Housing Federation as well as children’s charities and advice services which have signed a letter to Boris Johnson, warning that the cut risks causing “immense, immediate, and avoidable hardship”.

It says that imposing what is effectively the biggest overnight cut to the basic rate of social security since World War Two will pile unnecessary financial pressure on about 5.5 million families, both in and out of work.

Same mistakes

The letter adds: “We are at risk of repeating the same mistakes that were made after the last economic crisis, where our country’s recovery was too often not felt by people on the lowest incomes.

“The erosion of social security support was one of the main drivers of the rise in in-work and child poverty, and contributed to a soaring need for food banks, rising debt and worsening health inequalities.”

It says that at the start of the pandemic, the Chancellor’s £20 increase to “strengthen the safety net” was a tacit admission that a decade of cuts and freezes had left it unfit to provide the support families need.

Joseph Rowntree Foundation’s latest research shows the planned cuts risk plunging 500,000 people into poverty, including 200,000 children, and will take the main rate of out of work support down to its lowest levels in real terms since around 1990.

The letter concludes: “We all want a social security system that supports families to escape poverty rather than pulling them deeper into it. However, this cut risks causing immense, immediate, and avoidable hardship.”

Read more about Universal Credit.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords join 100 organisations calling on Boris to U-turn on £20-a-week benefits cut | LandlordZONE.

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SNEAK PEEK: Barratt reveals micro flat concept being built in London

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House building giant Barratt has revealed what it claims to be the future of UK housing – a 37 sq metre one-bedroom apartment for sale at £285,000.

The 160 initial ‘Smrt’ homes are within the company’s huge Eastman Village development in Harrow, North London where eventually some 2,000 people will live.

But while the properties are being aimed at 20 and 30-something first time buyers initially outside of the government’s Help to Buy scheme, Barratt has told LandlordZONE that they are also attractive to buy-to-let investors – although it says landlords are not their target market.

The one-bedroom apartments, which have been carefully laid out to look as spacious as 37 sq metres can be, and have high-end fixtures and fittings, offer gross returns of 6.7%. This is based on an annual rent of £19,200 or £1,600 a month, although Barratt says its figures suggest yields of up to 5% for the overall site.

By comparison, standard one-bedroom apartments at Eastman Village are 50.7 sq metres but start at £337,000.

First endeavor

Barratt London says the Smrt apartments, which are officially launching on September 11, are its first endeavour to offer both affordability and quality within a micro home, a concept it is looking to introduce at other sites.

The company says the only way to offer affordable homes in expensive cities like London is to make them small but cleverly designed.

Its Smrt properties are the minimum required by law – the London space standard for a couple living in a one-bedroom, single-storey property without a bath is 37 sq metres.

Nevertheless, each property has a balcony, access to a communal courtyard garden, bedroom (pictured), utility cupboard, separate bathroom with shower and a kitchen/diner/lounge (main pic) as well as access to a nearby communal gym.

There are no covenants within the Eastman Village development preventing properties being rented out by their owners, although short-lets Airbnb rentals are banned.

The properties are owned on a 999-year lease and owners are automatically given membership of the site’s management committee body.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – SNEAK PEEK: Barratt reveals micro flat concept being built in London | LandlordZONE.

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Why technology can give your business a big break

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As a landlord, your life is far from idle as you work hard to find new tenants, manage your current ones, do the admin, find reliable tradespeople and much more.
Faced with this, more and more landlords are turning to technology to get things done, usually a property management platform.
Here are a few ways that technology can help you save valuable time, ease your workload, and benefit your business.

Advertising changes

Do you remember the days when landlords found tenants via local newspaper ads?
Some still do, but the internet is fast taking over, now that websites such as Facebook Marketplace, Rightmove and Zoopla offer national reach to a much wider range of tenants, all via your laptop.
There are even mobile apps and platforms that allow you to view and adjust your property listings as and when you need to. Relying solely on ‘To Let’ signs are becoming a thing of the past.

Property management platforms

These platforms simplify the many processes involved in property management.
This includes helping keep track of and securely processing rental payments; storing valuable documents; sourcing and hiring skilled tradespeople and more.
Some offer in-app messaging, giving landlords control of the properties on-the-go via a single, simple, easy to use platform, while overseeing everything personally and on your own time.

Social media

Having regularly updated personal blogs, Instagram accounts and Twitter profiles is a growing and new way to attract potential tenants.
Technology is becoming increasingly important; those without a social media presence can unfortunately get left behind or ignored completely.
With something as simple as a few keyword ‘hashtags’, you can broaden your reach to a wider audience and encourage interaction with your posts and build your local professional network.
This will ensure that your voice within the industry is always fresh, up to date and, most importantly, one that prospective tenants will want to listen to.

Better photos and videos

Logging onto a property management platform or property advertising website, the last thing tenants will want to see is a dimly lit or badly shot preview video or photo.
Prospective tenants want to see alluring but honest imagery of their potential future home.
And apps like Lightroom, VSCOcam and FilmoraGO have free versions readily available to help achieve that, without needing to be a pro.

Online rent payments

Some landlords are dubious about online rent payment processing services, and it’s understandable.
But as technology develops, the internet is becoming a safer place and it’s increasingly becoming impractical to keep tabs on payments manually: storing documents, collecting payments in person, driving to the bank to deposit said payments, doing it all over again for your other tenants. It eats up valuable chunks of your day and can be exhausting.
Property management apps solve this problem by enabling safe and hassle-free digital rent processing.
Any reputable property management platform will work alongside an equally reputable and secure payment service.
Doing this ensures that your finances are handled professionally and safely. And that includes Clooper, LandlordZONE’s preferred property management platform.
With Clooper, you can do all this and more. Clooper makes it easier for landlords to list properties, network with reputable tradespeople and tenants already on the platform, communicate with them efficiently through their in-platform messaging service, manage paperwork, track repairs and so much more.
Clooper’s guided onboarding processes ensure landlords carry out all necessary checks in a compliant way including referencing, Right to Rent, gas safety checks and more.
Their secure payment provider, Stripe, are certified as a PC1 Level 1 Service provider: the most stringent certificate you can get in the industry, ensuring your financial security.
The platform is efficient, transparent, and most importantly, designed for you. You are in control of everything, while Clooper helps simplify your life as a landlord.
Also, as LandlordZONE’s Official Property Management Platform Partner, Clooper has extended an exclusive 30-day free trial for

LandlordZONE subscribers.

By utilising the code CLLZ0001, you can benefit not only from the free trial period but from free rent processing, free property advertising and much more.
You’ll even net yourself a free Clooper t-shirt if you sign up to an annual plan! Offer lasts until September 30th, 2021.
Save valuable time, broaden your network, keep your payments safe and stay securely at the helm of your properties with Clooper. Sign up here today.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Why technology can give your business a big break | LandlordZONE.

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Section 24 Tax Is Now Hitting Tenants Hard

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Rental demand and hence the average price of UK rent is at an all time high and continues to sky-rocket, but why?

Well, we predicted this six years ago when the UK Government first announced the introduction of the Section 24 Tax.

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EXCLUSIVE: Number of Rent Repayment Order cases rising every year

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Rent Repayment Orders (RROs) in England are rising each year as local authorities look to cause errant landlords maximum pain.

According to government figures, there were just 73 RROs made in 2018, rising to 282 in 2019 and 349 in 2020. So far this year there have been 202 orders made – no doubt impacted by hold-ups in the court system.

The figures were easy to access, despite the Ministry of Justice rejecting LandlordZONE’s Freedom of Information request on the subject; civil servants claimed that finding out the information would be too time-consuming and expensive.

First introduced in 2004, tenants could originally only take action once their landlord had been convicted of a criminal offence, however since 2016, they’ve been able to apply directly to a First Tier Property Tribunal for a RRO without the need of a prior conviction.

Both tenants and councils can seek to have up to 12 months of rent, Housing Benefit, or Universal Credit repaid – usually in addition to a fine or civil penalty.

LandlordZONE regularly covers tribunal cases, most commonly because a landlord has failed to licence an HMO, such as landlord Karen Merricks who was recently handed a whopping £47,000 bill in Tower Hamlets. Like hers, landlords of large HMOs are particularly at risk of large fines, as a RRO consists of a year’s worth of rent for each tenant.

London surge

There’s been a huge 532% increase in orders in London between May and July, according to geospatial technology firm Kamma, which reports that the largest single fines ever recorded are £100,000 for a landlord and £167,000 for a letting agent.

Gavin Dick, local authority policy officer at the National Residential Landlords Association, says the pandemic has focused local authorities’ attention on RROs, which are now a big part of their armoury.

He tells LandlordZONE: “Both tenants and local authorities are more aware of them, and once one authority uses them, others see this and do the same. They want to hit landlords – those who don’t have a licence or haven’t properly collected a deposit – with as much as possible and I’m sure we’ll see them used even more in the future.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Number of Rent Repayment Order cases rising every year | LandlordZONE.

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