Leading figure to launch trade group for portfolio landlords

admin    Uncategorized     agents

Leading landlord figure Marcus Selmon is to launch a group for larger operators in two weeks, LandlordZONE can reveal.

Marcus, who is part of a consortium of companies operating a sizeable portfolio in the North West of England, says the new organisation is to be called the Portfolio Landlords Action Network (PLAN).

The launch is to take place at the offices of Hamilton Fraser on 10th November this year and is open to all to attend – although space limitations mean places will be allocated on a first-come, first-serve basis.

But there will be an option to sign up and watch the launch online (sign up here) which means as many people who want can see what all the excitement is about.

Ahead of this launch, LandlordZONE editor Nigel Lewis interviews Marcus to find out why he believes the sector needs a dedicated organisation representing the interests of larger, portfolio landlords.

NL: Why PLAN?

MS: Last year I was watching TV and saw an ad by Shelter asking for donations to help fund their campaign against private landlords, playing on the belief among many viewers that private landlords are the root of all evil and a group who nobody in either government or opposition circles is keen to support – which in the Tories’ case it odd given most landlords probably vote for them.

I did some research into the background and history of the private rental market to try and understand why and in doing so had a moment of revelation where I understood what the problem was.

The problem the Government has is not really with good or bad Landlords but with the whole structure of the current market where 98% of the five million properties are owned by two million Landlords who have three properties or less. They will not say that directly but that is their issue…because millions of landlords with a handful of properties are impossible to regulate.

One of our aims is to engage with Government and get them to come up with what they think the right structure is for the PRS. We believe they want more private landlords with larger portfolios. But for that to happen the Government needs to encourage the market to develop in this way.

NL: Why are big portfolio landlords different?

MS: They have a different outlook. If you own a large portfolio that you intend to hold for the long term and self -manage then your priorities are completely different from a smaller landlord or a letting agent.

Your focus is your tenants because happy tenants mean a successful business as they are your main source of income rather than any capital gain you may be making on a property (which is irrelevant if you are not selling) or the need to find new clients for your business. 

You also have the incentive to get things right because of the economies of scale operating a larger portfolio. If you are doing a thousand Right to Rent checks each year then you have to have systems for doing them properly and will invest in those systems. If you do one check a year you do not and may lose track of what’s needed and what’s not.

But I must stress that this is a generalisation, and I am sure there are many smaller Landlords who are the exception to these points.

The problem is when you have two million landlords it only needs a small percentage to do things wrong to in order to cause trouble. If you assume that two per cent of that market was made up of bad landlords that would still be 40,000 bad landlords. That is a lot of landlords and Tenants with problems. 

If those tenants complain to Shelter and similar organisations then obviously there will be an impression things are really bad.  If as Shelter say the figure is 40% (i.e. 800,000 landlords) then it’s no wonder people believe the current system does not work

NL: What will PLAN offer?

MS: It will bring together other landlords like us to try and create a group with a distinct voice. In addition, we will offer a forum for Landlords  to network with each other, share experiences and knowledge, and benefit from the information we will be providing on the latest tech and systems available for such Landlords

We are also looking at plans to offer a much wider membership for smaller Landlords who aspire to be portfolio landlrods

NL: Why does the government need to get involved?

MS: Any market relies on the rules and regulations that govern how it operates. Currently, the focus is on creating ‘negative’ rules to restrict how current landlords operate. The problem is that while these might seem reasonable for individual landlords with a few properties, they are not relevant or helpful to larger portfolio landlords.

The solution is to use a carrot and not the stick and provide incentives to landlords who are prepared to operate in a way the Government supports and encourages much larger landlords to emerge. Exactly how that would work is the detail that needs to be worked out. 

One starting point is to have a model that the Government supports and is their vision of the ideal market.

That such a vision is not there now because no one is addressing the issue of what a good market should look like. 

That is why PLAN has been formed. That is our objective going forward and we hope others will join us to make this a reality. 

Visit the PLAN website.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Leading figure to launch trade group for portfolio landlords | LandlordZONE.

View Full Article: Leading figure to launch trade group for portfolio landlords

Development Project Disaster

admin    Uncategorized     agents

Persimmon, the major housebuilder, got its latest development project completely wrong by building blocks back to front!

Join Andrew Roberts and me as we break down what exactly went wrong, as well as our predictions on the future of interest rates.

The post Development Project Disaster appeared first on Property118.

View Full Article: Development Project Disaster

Cash in and retire – Sell your whole Portfolio in less than 28 days

admin    Uncategorized     agents

It’s been an interesting time for landlords, as we’ve all been witness to the property market soaring to record highs, and very rightly it’s caused many of us to think: Is now finally the time to sell up my portfolio and cash in?

The post Cash in and retire – Sell your whole Portfolio in less than 28 days appeared first on Property118.

View Full Article: Cash in and retire – Sell your whole Portfolio in less than 28 days

Kerching! Birmingham City Council Decides to Cash-in on Landlords

admin    Uncategorized     agents

Here we go again as yet another local authority, this time Birmingham City Council (BCC), decides to get on the gravy train which is selective licensing, with what is being touted as the largest selective licensing scheme ever attempted.

As always

The post Kerching! Birmingham City Council Decides to Cash-in on Landlords appeared first on Property118.

View Full Article: Kerching! Birmingham City Council Decides to Cash-in on Landlords

Huge selective licensing scheme planned in Brum covering 40% of the city

admin    Uncategorized     agents

Birmingham landlords in 25 of the city’s wards could soon have to apply for a licence if a massive new scheme gets the green light.

The council has launched a consultation to get landlords’ and residents’ views on the plan which, because of its size, would need approval from Housing Minister Michael Gove.

In June 2020, Birmingham introduced a city-wide Article 4 direction, meaning that planning approval is required to convert a family house to any size HMO. A licensing scheme currently only exists for its 6,121 HMOs.

Under the proposed selective licensing scheme, all private landlords in the 25 wards that have been identified as having a high proportion of private rented housing and deprivation, would need a licence. 

Exploitation

It aims to provide a level playing field for good landlords and reduce the risk of tenant exploitation, as well as to reduce crime and deprivation.

The council says it recognises the good work of many private sector landlords in providing quality accommodation for their tenants and has pledged to continue working with the PRS to ensure all landlords provide properties to the same standard.

It also wants to understand the difficulties that landlords face and to help them offer long-term sustainable tenancies.

Shabrana Hussain, cabinet member for homes and neighbourhoods, says the scheme will contribute to the council’s aim of introducing more enforcement and licensing within the sector.

She adds: “I would encourage everyone to provide their views on the proposed scheme. It is only through listening to our residents and communities that we can ensure the licensing scheme focuses on what matters to local residents.”

The consultation runs until 3^rd January 2022 at www.birminghambeheard.org.uk

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Huge selective licensing scheme planned in Brum covering 40% of the city | LandlordZONE.

View Full Article: Huge selective licensing scheme planned in Brum covering 40% of the city

Remortgage problems with 0.00% growth?

admin    Uncategorized     agents

My 5 year fixed rates came to an end in June of this year, I began nudging my brokers in September last year, and they only started dealing with them in May of this year.

One mess after another preceded the properties surveys

The post Remortgage problems with 0.00% growth? appeared first on Property118.

View Full Article: Remortgage problems with 0.00% growth?

‘Bring in blanket landlord and property licencing in England’, urges thinktank

admin    Uncategorized     agents

Property licensing schemes and should be rolled out across all of England, creating a de-facto national registration scheme for the nation’s landlords and their properties similar to the schemes already in operation elsewhere in the UK, it has been claimed.

The non-partisan Centre for Public Data (CFPD) says councils that require landlords to be licensed take more than twice as much enforcement action as those that don’t, identity more than twice as many unsafe homes being rented out and solve a higher proportion of these cases.

Commenting on the report, lobbying group Generation Rent reckons another benefit of a national register could be increased tax revenues, since HMRC has no way to track down landlords who don’t declare rental income.

In the Queen’s Speech, the government promised to consider the merits of a national landlord register and a White Paper is expected this autumn.

Published data

CFPD’s recommendations include that the register be made easily searchable for tenants, that its data is published, and that it be integrated with other property databases for EPCs, deposit protection and holiday accommodation. 

Anna Powell-Smith (pictured), Director of the CFPD, says: “In England, you have to register to run a takeaway or work as an art therapist, but anyone can be a landlord – remarkable given how dangerous it is to live in a property with faulty wiring, boilers or mould.

“A patchwork of schemes will never give renters the protection they need and are an inefficient use of council resources. A national register will be cheaper to run and more effective in raising standards.”

Alicia Kennedy, Director of Generation Rent, adds: “Nationwide landlord registration would give enforcement authorities valuable intelligence about this sector, make it easier to inform tenants of their rights, and prevent criminals from renting out homes in the first place.”

Read more about the proposed national landlord database.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Bring in blanket landlord and property licencing in England’, urges thinktank | LandlordZONE.

View Full Article: ‘Bring in blanket landlord and property licencing in England’, urges thinktank

CIL payment on 15 year old development?

admin    Uncategorized     agents

Hi, any advice would be appreciated. I am selling a flat in a small development. The buyer’s solicitor has asked for proof that the Community Infrastructure Levy was paid.

As far as I know, this is payable by the landowner or developer at the start of the build.

The post CIL payment on 15 year old development? appeared first on Property118.

View Full Article: CIL payment on 15 year old development?

£65 million does not fully reflect the scale of the problem

admin    Uncategorized     agents

Responding to new Government funding to tackle Covid rent debts, Chris Norris, Policy Director for the National Residential Landlords Association said:

“We welcome the announcement of this funding and urge local authorities to target it at those tenants most struggling with Covid rent debts.

The post £65 million does not fully reflect the scale of the problem appeared first on Property118.

View Full Article: £65 million does not fully reflect the scale of the problem