Development Project Disaster

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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.

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

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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?

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

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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

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

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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.

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Remortgage problems with 0.00% growth?

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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

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

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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.

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CIL payment on 15 year old development?

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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.

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

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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.

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BREAKING: Minister launches £65m rent fund for tenants facing eviction

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Housing minister Eddie Hughes has announced a £65 million rent payment support package for private renters facing eviction or homelessness ‘during the winter months’ and thanked landlords for their help supporting struggling tenants during the pandemic.

Eligible households should contact their local council if they require support, although it is up to individual local authorities to work out the best way to support each household on a case-by-case basis.

Any money is likely to be paid directly to the existing landlord, or a new landlord if the money is being used to support a household to find a new home.

This announcement, which references the long evictions ban during the pandemic, follows months of lobbying by the NRLA and many other organisations to offer struggling tenants direct financial to help pay their rent.

The Department for Levelling Up, Housing and Communities (DLUHC) say this is on top of the £500 million of indirect support for vulnerable families provided during Covid via its Household Support Fund.

The funding will be given to councils in England specifically to support low-income earners in rent arrears and ‘helping to prevent homelessness and support families get back on their feet’.

Vulnerable

Housing Hughes (main pic) says: “We have taken action throughout the pandemic to support the most vulnerable families, and it is vital we continue to provide support as we enter the winter months.

“This new funding will support families that are struggling and help to get them back on their feet as we begin to recover from the COVID-19 pandemic.”

Chris Norris, Policy Director for the National Residential Landlords Association says: “It is great news that those households worst hit by Covid related arrears may be able to access financial support. However, £65 million does not fully reflect the scale of the problem. NRLA analysis has put the figure of Covid rent debts at over £300 million.”

The Joseph Rowntree Foundation goes further, saying that: “We estimate that the group this support is targeted at has built up around £440m of rent arrears,” a spokesperson says.

Extra money

Alicia Kennedy (pictured), Director of Generation Rent, says: “Generation Rent has long warned the government of the devastating effect that rent debt has on people’s lives, so we welcome this new funding and its recognition of how hard private renters have been hit in the past 18 months.

“It’s a significant step forward that will help keep people in their homes when they would otherwise have been evicted.

“But with rents rising and Universal Credit cut, we fear it won’t be enough to prevent families hitting crisis point.”

Shelter boss Polly Neate adds: “With winter approaching, the government is absolutely right to act to keep people safe in their homes and prevent a wave of evictions and homelessness. For those who can access it, this funding will be a lifeline.”

The extra money will be provided as a top-up to the government’s £310 million Homelessness Prevention Grant.

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Landlords ‘to pay higher mortgage premiums for properties below minimum EPC standard’

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Landlords have been warned within the government’s Heatings and Buildings Strategy that they face having to pay higher mortgage premiums if they buy or remortgage properties that do not meet minimum EPC standards.

The proposals are part of, and run alongside, the government’s plans to make Britain ‘net zero’ by 2050.

But despite 17 million out of the nation’s 29 million homes being EPC band D or below, the government expects the scheme to be voluntary and market-based at first, using the lure of lower interest rates offered by lenders to persuade landlords and home-owners to upgrade their properties.

The scheme will have to be ambitious to succeed – the government estimates the cost of upgrading these 17 million homes to be up to £65 billion.

But if the green mortgage scheme is not successful and housing stock upgrade targets are not met then the government is proposing to make it mandatory for lenders to have all properties within their managed portfolios reach EPC Band C by 2030.

The lending market is at least beginning to respond – some lenders now have ‘green mortgages’ which offer lower interest rates for eco homes But progress has been slow.

Effectiveness

“While green mortgages are potentially a good way of encouraging the implementation of energy efficiency measures, the current low mortgage interest rates in the market are likely to reduce their effectiveness in this regard,” says a spokesperson for the National Residential Landlords Association.

“The Government’s English Housing Survey confirms that the private rented sector has the highest proportion of older dwellings of all tenures, with 32% built pre-1919.

“The cost of upgrading these properties to the highest energy efficiency ratings is significant, and the savings of a green mortgage are unlikely to be sufficient to cover this.

“What is needed in the future is a more strategic approach which recognises the specific challenges facing many landlords in the private rented sector is needed.”

The strategy document also proposes to prevent new-build homes from connecting to the gas grid in England from 2025.

A recently-closed consultation on requiring all rented properties to meet a minimum EPC band C by 2030, with an announcement expected later this year.

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