BTR firm makes ill-advised bid to promote site using Shelter’s mental health data

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A build-to-rent development is trying to sell its properties on the back of research about renting in the traditional PRS causing poor mental health.

A press release from The Keel in Liverpool cites recent research by housing charity Shelter that revealed how one in five people in privately-rented properties suffer from poor mental and physical health.

It claims the build-up of damp and mould are cited as the most common problem, with many landlords ignoring the plights of their tenants.

“Whilst living in poor conditions can affect our physical health, the toll and stress this causes can also cause severe mental health issues,” the promotional material explains helpfully.

Stress toll

“[The Keel] is helping to show how this new sector is building trust between tenants and landlords in a bid to ward off poor mental health due to living conditions and the toll of resulting stress.”

In a shameless plug for its facilities, the release boasts about its dedicated on-site team, regular socials, and communal areas, which help to boost the wellbeing of residents, and it adds: “Having a healthy social life is also crucial to help maintain your mental health.”

It believes the development on the city’s Queen’s Dock is helping to show how important it is to care for tenants, “prioritising their health to make for an all-round better rental experience” – showing just what a caring and compassionate bunch BTR landlords are.

Read more about BTR.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BTR firm makes ill-advised bid to promote site using Shelter’s mental health data | LandlordZONE.

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LATEST: Welsh government offers private landlords £30m to house homeless

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The Welsh government is to pump in more cash to help end homelessness in the country including a new £30 million funding pot for local authorities, housing minister Julie James (pictured, above) has announced.

It will be used primarily to support the Welsh Private Rented Sector Leasing Scheme, which effectively underwrites the risks and costs of persuading private landlords to rent their properties to local authorities in return for a rent guarantee and additional funding to improve the condition of their property.

Local authorities can then use these properties to provide affordable and good quality homes for people who are at risk of or experiencing homelessness.

Tenants will benefit from the security of long-term tenures of between five to 20 years and help to maintain their stay in a long-term home, such as mental health support or debt and money management advice.

£30m initiative

This £30 million initiative is part of the Welsh government’s Homelessness Action Plan, which is a cross-sector and multi-faceted attempt to house homeless people and prevent them losing their homes in the first place.

As part of housing minister Julie James’ promotional efforts for the initiative, she met 42-year-old Jonathan Lewis (pictured, above) from Swansea.

He has overcome huge challenges throughout his childhood, teenage and adult life and has finally been able to find and thrive in a secure home after years spent sofa surfing or sleeping in his car.

James said: “Meeting Jonathan today – who really is an inspiration – just shows the importance to everyone of a decent, affordable and stable home.”

Read more about the millions the Welsh government is spending supporting tenants.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Welsh government offers private landlords £30m to house homeless | LandlordZONE.

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PRS pandemic impact report

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As 2021 draws to a close, Belvoir’s pandemic report reveals the impact of the Coronavirus pandemic on the UK rental market.

“Earlier this year Belvoir commissioned property expert Kate Faulkner to review data from the Belvoir rental index as well as quarterly surveys of offices during the pandemic and beyond.

The post PRS pandemic impact report appeared first on Property118.

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Welsh government to encourage PRS to lease to local authorities to prevent homelessness

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The Welsh Government will announce a new £30million funding pot over five years for local authorities. Under the Private Rented Sector Leasing Scheme, private property owners will be encouraged to lease their properties to local authorities in return for a rent guarantee and additional funding to improve the condition of their property.

The post Welsh government to encourage PRS to lease to local authorities to prevent homelessness appeared first on Property118.

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‘Let’s not forget property remains the best performing investment’

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I’ve been in the property investment business for almost 30 years and during this period opportunities have come and gone but I’ve yet to discover an asset class that performs better.

Gold, silver, crypto (gambling in my opinion) and stocks and shares have yet to outperform the results I’ve generated from property, and will continue to do so.

Let me explain: As at Sept 2021 the average house price in Scotland is £180,334¹. In2000 it was £51,587² meaning house prices have grown around 250% in 21 years.

But take the £51,587figure and apply inflation since 2000 (average of 2.8%p.a¹.) then today’s house price should be £88,799. And yet it’s £91,535 more, which is 177% of the original investment over inflation.

Now I have never been one to invest in property at those high prices, but my property values have risen just the same.

You can invest in lower value property and spread your risk as it’s always a numbers game at its core. If you understand the dynamics, it’s like the McDonald’s of property investing. Just keep duplicating it.

What do I mean? If you get the rental charge per month, occupancy rate, loan to value, interest rates and overheads right you’ll always be guaranteed to make money.

Hassle?

Most people say, “I can’t be bothered as I don’t want the hassle.” What hassle? If you have a managing agent looking after it or you’ve invested in a property fund, then you are literally paid to wait.

What do I mean ‘paid to wait’? Most investors like myself offer different levels of service depending on how hands on or hands off you want to be and remember the property is generating income every month in rent while it appreciates, and you can either draw down or reinvest that income.

Let me give you an example. I bought a property (I’ve bought several over the years and another 17 this year so far) in July 1999 for £10,000. It’s a one-bedroom flat and since then I’ve generated a top-line rent of around £80,000 against it to offset against overheads (i.e. interest costs, insurance, repairs, managing agent etc).

At some point before the credit crunch, I got a re-mortgage of £27,695 (a lifetime tracker at base plus 1.15%) which means I have none of my own money in and got cashback (tax free as you don’t get taxed on re-mortgaging property, only selling) from the bank to invest in more property.

This is an infinite return on my investment as I have no money in it anymore and I still earn money every month.

As I said at the beginning… “it’s probably the best performing asset class’ I meant it. As for the value? Well, I’m paid to wait on it going up.

About the author

Jim Parker is a leading Scottish landlord and also runs multi-branch East Coast lettings agency Fife Properties.

Data sources: 1 Bank of England and Scottish Land Registry details 2 Homelet

Jim Parker

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Let’s not forget property remains the best performing investment’ | LandlordZONE.

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Labour reshuffle: Shadow housing secretary Lucy Powell replaced by Lisa Nandy

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Labour leader Kier Starmer’s chaotic reshuffle has included giving housing spokesperson Lucy Powell the new job of shadow Digital, Culture, Media and Sport brief, it has been announced.

Lisa Nandy, who has been demoted from shadow Foreign Secretary, has been given the job of scrutinising the Department of Levelling Up, Housing and Communities, taking over Powell’s former role.

The reshuffle, which had been expected, took place yesterday, kicking off while the party’s deputy leader Angela Rayner was giving a key speech on parliamentary sleaze, apparently catching her by surprise.

Other departures include Nick Thomas-Symonds, the shadow home secretary who is replaced by Yvette Cooper, Kate Green, the shadow education secretary and Jo Stevens, the shadow culture secretary.

The reshuffle has been reported as Starmer’s attempt to both keep Rayner at arm’s length and reduce the number of left-wingers within the shadow cabinet.

Powell, the MP for Manchester Central since 2012, was appointed to the shadow Housing role in May, taking over from Thangam Debbonaire, who became shadow leader of the House of Commons.

But Powell’s tenure heading up the housing brief has been both brief and relatively unremarkable.

Landlords attacked

Her high point was a keynote speech in September during Labour’s conference in Brighton, during which, as LandordZONE reported, she attacked landlords and holiday homeowners.

“I see no contradiction in us also promoting home-ownership – not for more landlords or second homes, but for ordinary working people – nurses, electricians, delivery drivers and care workers – currently priced out,” she said.

She also said a Labour government would link housing costs to wages and “tackle the thorny issues of quality, affordability and security in private rentals”.

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

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Powell loses her shadow housing role in Labour front-bench reshuffle

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Labour leader Kier Starmer’s reshuffle has included moving housing spokesperson Lucy Powell to cover the shadow Digital, Culture, Media and Sport brief, it has been reported.

The reshuffle, which had been expected today, came while the party’s deputy leader Angela Rayner was giving a key speech on parliamentary sleaze, apparently catching her by surprise.

Nick Thomas-Symonds, the shadow home secretary, Kate Green, the shadow education secretary and Jo Stevens, the shadow culture secretary, were all removed from their roles.

The reshuffle has been reported as Starmer’s attempt to both keep Rayner at arm’s length and reduce the number of left-wingers within the shadow cabinet.

Powell, the MP for Manchester Central since 2012, was appointed to the shadow Housing role in May, taking over from Thangam Debbonaire, who became shadow leader of the House of Commons.

But Powell’s tenure heading up the housing brief has been both brief and relatively unremarkable.

Landlords attacked

Her high point was a keynote speech in September during Labour’s conference in Brighton, during which, as LandordZONE reported, she attacked landlords and holiday home owners.

“I see no contradiction in us also promoting home-ownership – not for more landlords or second homes, but for ordinary working people – nurses, electricians, delivery drivers and care workers – currently priced out,” she said.

She also said a Labour government would link housing costs to wages and “tackle the thorny issues of quality, affordability and security in private rentals”.

A replacement for Powell, who is seen as a more moderate member of the Labour front-bench team, has yet to be announced.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Powell loses her shadow housing role in Labour front-bench reshuffle | LandlordZONE.

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Licensing scheme delayed after ‘strong opposition’ over costs and enforcement

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A new selective licensing scheme in Southend has been put on hold after councillors complained they lacked details about how it would work.

The scheme got the go-ahead in March and was scheduled to start on 1^st December but has now been referred back to cabinet after a narrow vote at a full council meeting.

Councillors previously voiced fears that the council already struggles to administer its HMO licensing scheme.

Conservative group leader Tony Cox told the meeting: “We haven’t got any detailed recommendations on how we are going to introduce the scheme. What we haven’t got is how the scheme is going to be administered, but if we are going to have a scheme it’s got to be compliant and robust and all the options have got to be looked at.”

Last month, Conservative councillor Meg Davidson told The Leigh Times that she had concerns around costs and staffing of the scheme, which is set to cover all private rented homes within Milton, Kursaal, Victoria and Chalkwell wards.

Inspections struggle

Said Davidson (pictured): “To license and inspect 3,500 or more properties is a huge undertaking and it does worry me that when you look at the HMO licensing scheme, it’s been a struggle to do about 100.”

A public consultation earlier this year garnered an impressive 1,792 responses, two thirds (68%) of which agreed with the proposal. However, 20% strongly disagreed – the majority of whom were landlords/agents (74%).

Many believed the costs would be passed on to tenants or that it would penalise good landlords while allowing bad landlords to operate.

The South Essex Alliance of Landlords and Residents (SEAL) opposes selective licensing and was originally set up to coordinate a response.

This has evolved into a formal partnership with the council to improve the standard of PRS accommodation and reduce anti-social behaviour throughout SEAL managed properties.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Licensing scheme delayed after ‘strong opposition’ over costs and enforcement | LandlordZONE.

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Landlord who forgot to chase up HMO licence exemption to pay £25,000

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Campaigning organisation Justice for Tenants has won £25,440 for four renters at an unlicensed HMO after a court ruled their landlord had not tried hard enough to secure a Temporary Exemption Notice (TEN).

Thambithurai Uthayakanthan told a First Tier Property Tribunal that when he found out he needed a licence for the four-bed flat in a former council block opposite the British Library in central London (pictured), he applied for a TEN in December 2019 and again in March 2020.

He believed a licence was not needed as he planned to sell it, while the tenants had also told him they intended to leave.

Justice for Tenants reported that when the four moved in, the flat was dirty with problems including a broken fire detector in the kitchen, broken furniture and boiler.

Sick daughter

It said a letter from Camden Council confirmed it had not received a TEN, while his letting agent had offered to apply for an HMO licence on his behalf in October 2019 but that at the time he was more concerned about his sick daughter.

The landlord explained that the water ingress and damp affecting the property were the responsibility of freeholder, Camden Council, while other maintenance had been done within a few days, including fitting a new boiler in October 2019.

Means of escape

The council confirmed that there appeared to have been no fire risk assessment carried out and when asked about the means of escape from one of the bedrooms which was accessed through the kitchen the landlord said that if there was a fire the fire brigade would be there within minutes and could use a ladder to access the bedroom window.

The tribunal ruled there was no evidence to show that Uthayakanthan had submitted the TEN applications and that he had declined help in making the application.

However, it said it was sympathetic to his family problems and believed he had tried to resolve issues, so gave him a 25% reduction in the £33,919 Rent Repayment Order application.

Read the judgement in full.

Read how RROs are rising in number and value each year.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord who forgot to chase up HMO licence exemption to pay £25,000 | LandlordZONE.

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Landlords should ‘wait and see’ before starting EPC upgrades, urges landlord

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A leading buy-to-let blogger says landlords should ‘wait and see’ what extra grants the government offers them as the two EPC upgrade deadlines get nearer, rather than spending thousands on improvements now.

The Secret Landlord, writing in a national newspaper, reveals that their energy assessor advised ‘not to be hasty’ and dive in with expensive wall insulation and boiler replacement spend quite yet.

The blogger, who has so far remained anonymous but has written a book and penned a column for LandlordZONE, tells fellow landlords to consider whether the government is likely to offer more generous grants and modify the current £3,500 ‘cost cap’ as the 2025 deadline looms.

This is likely to happen – landlords are required to ensure their properties reach a minimum EPC grade of C by 2025 for new tenancies and by 2028 for all tenancies.

Huge costs

But some three-quarters of privately rented properties are below EPC Grade C and many landlords, including The Secret Landlord, face huge costs to achieve this.

As the landlord points out, the EPC system of energy assessments is illogical because it measures how much it costs to heat a property, not how much carbon it consumes.

“If [landlords] are banned from renting out their properties by this rule, landlords like me will sell up, creating a crisis in the rental sector that even this buy-to-let-bashing Government wouldn’t want,” The Secret Landlord says.

The weaknesses of the EPC system are well known within both the landlord community and the property industry. As LandlordZONE reported in July, a survey of 70 valuers by Countrywide Surveying Services found that than 30% believed EPCs were not accurate or a reliable source of efficiency, or of high quality.

And the NRLA warned earlier this year that upgrading all rented properties to an EPC ban by 2028 was a ‘pipedream’.

Read The Secret Landlord’s Telegraph piece in full (requires subscription)

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords should ‘wait and see’ before starting EPC upgrades, urges landlord | LandlordZONE.

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