Deposit-less renting scheme launches claiming landlords will ‘not be out of pocket’

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A new deposit-less renting service claims to go above and beyond other deposit alternatives on the market to make life easier for both tenants and landlords.

Rental guarantor service Housing Hand’s new product for working professionals, UK and overseas students covers all valid claims immediately, with a 100% pay-out rate, giving landlords reassurance that they won’t end up out of pocket if the tenant defaults on their rent.

Renters can choose to move into a property without paying a deposit if they’ve already applied for its guarantor service, which renters use in place of a personal guarantor.

Small chunks

Tenants pay an application fee of £25 then the equivalent of 20% of one month’s rent paid in small chunks, every month, in line with their rent. 

Housing Hand says there are a number of deposit alternative products such as insurance bonds that are limited in their scope and coverage and only payout at the end of the tenancy.

Terry Mason (pictured), group operations director, adds: “This is a new approach to deposits. By extending our guarantee cover to include deposits, we are providing clear reassurance to landlords.

“We’re also facilitating access to the private rented sector and to purpose-built student accommodation for young people who might otherwise have struggled to come up with the amount required for a deposit.”

With most deposit replacement schemes, the tenant pays a non-refundable fee instead of a traditional deposit of five or six weeks’ rent – in either a monthly or yearly fee; while tenants are still liable for damage at the end of their tenancy, unlike a traditional deposit, they pay a smaller initial amount but don’t get it back.

Read more about deposits.

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Liverpool council celebrates green light for huge new licensing scheme

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Liverpool Council is jubilant that its selective licensing scheme finally has the green light by the Secretary of State following a protracted battle with the government.

One of the largest in the country, about 80% of the city’s private rented properties in 16 wards will be covered, including 45,000 of the 55,000 properties in the original city-wide scheme which ran from 2015-2020.

In 2019, former Housing Secretary Robert Jenrick thwarted the council’s previous attempt to renew the scheme until 2025, so instead of launching a judicial review it came up with a new scaled-down bid.

An evaluation of the previous scheme found that it had identified 4,350 cases of the most serious category 1 and 2 hazards, issued more than 2,500 legal notices, 169 formal cautions and 197 written warnings, and had resulted in 300 successful landlord prosecutions and 87 civil penalties.

A consultation earlier this year found tenants were generally supportive of the proposal, with landlords and letting agents against it.

No connection

An NRLA spokesman says there is no clear connection between licensing schemes and levels of enforcement.

 “All that happens is that responsible landlords make themselves known whilst the criminals continue to operate under the radar.”

He adds: “The council should instead make better use of the data already available such as that from the Land Registry and HMRC to find and root out altogether those landlords who will never willingly make themselves known.”

Liverpool’s cabinet member for neighbourhoods, councillor Abdul Qadir (pictured), says: “The council will make no profit from the scheme.

“Every single pound we get from landlords will be ring-fenced, paying for our team to be out on the streets every day inspecting homes, chasing disrepair.”

The council is also trumpeting the government’s approval on its website blog where it explains there have been more than 8,400 complaints about the Liverpool’s PRS since April 2020.

It adds: “It is an understatement to say we have missed our proactive powers, our targeted enforcement action and working with landlords to bring properties back into a safe and well managed state.

“We can now look forward to renewing and strengthening our partnership approach with colleagues in planning and building control, environmental health, social services and other areas to drive forward the much-needed changes in our neighbourhoods.”

The scheme launches in April and will run for five years covering Central, Riverside, Greenbank, Kensington, Picton, Tuebrook & Stoneycroft, County, Anfield, St Michael’s, Princes Park, Kirkdale, Old Swan, Warbreck, Wavertree, Fazakerley and Everton.

Liverpool also introduced an Article 4 direction in March to clamp down on any HMO conversions.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Liverpool council celebrates green light for huge new licensing scheme | LandlordZONE.

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Scams cost private rental sector £7 million in 2021, reveals BBC show

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The BBC Radio 4 consumer affairs show You and Yours says 4,800 rental scams were reported by the public this year worth a total of £7 million.

Its presenter Sam Fenwick (pictured) said the programme’s researchers found that rental scams within the private rented sector are a growing problem, aided by the rise of classified platforms such as Facebook Marketplace and Gumtree but also the super-hot rental market in many areas of the UK.

Increasingly, it has become easy for scammers to pinch photos off sites such as Rightmove and Zoopla and upload them to public classified ad portals. They then scam desperate renters by offering to ‘drop the keys off’ after the deposit is paid, but then disappear.

Fenwick also said the rise of Airbnb has facilitated these scams – fraudsters can rent properties, take pictures and even conduct viewings at the properties before taking a deposit and the first month’s rent but then disappearing.

The programme also referenced a story LandlordZONE reported on last month in which an Edinburgh student was scammed of a £2,300 deposit in this way.  

Very common

Speaking on the programme, National Trading Standards spokeswoman Hannah Macmillan said these kinds of online rental scams are now “very common and we see lots of fake property listings”, she said.

Facebook has released a statement saying it is investing people and technology to remove these kinds of ads from their Marketplace platform and is urging landlords and tenants who think ads look suspicious or turn out to be fraudulent to report them to the police.

Gumtree recently told LandlordZONE that it takes all allegations of fraud extremely seriously and that it requires property ads on the site to comply with government regulations for property advertising.

Listen to the show on catch-up.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Scams cost private rental sector £7 million in 2021, reveals BBC show | LandlordZONE.

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Smaller Liverpool Licensing scheme approved for 2022

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After having the renewal of the city-wide Liverpool selective licensing scheme rejected by the government in 2019, Liverpool council have been successful with a smaller scheme covering 16 wards of the city. Approximately 45,000 of the original 55,000 properties will be covered.

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Premier League footballer caught up in rent-to-rent sub-letting scheme

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Crystal Palace FC footballer Wilfried Zaha has become embroiled in an alleged rent-to-rent scam involving a block of flats in West London, it has been reported.

The company involved is Z O and Sons Ltd trading as ZO Properties which the 29-year-old footballer joined as a director in October 2017 but resigned in August this year.

It has now been revealed that ZO Properties has been leasing the £2,700-a-month apartments in Maida Vale but sub-let them without consent and collected the rent and, it has been alleged, not been passing on the cash to the property’s owners.

The managing agent for the property’s freeholder told The Sun newspaper that the flats were to be used as staff accommodation, not sub-let on the open market.

Illegal sub-letting of properties by rent-to-rent companies as highlighted by this case are becoming a growing problem within the private rented sector and are giving the reputable providers a bad name, says evictions Paul Shamplina (pictured).

Eviction

“They also make possession claims difficult because it’s often hard to work out who the landlord really is and, as in this case, tenants believe they have paid their rent on time but are facing eviction by the ‘superior landlord’ for non-payment of rent,” he says.

According to the Sun newspaper, ZO Properties’ director Obinna Ogbonna cannot be traced, while the Companies House website reveals that his firm’s latest accounts are overdue by five months and its company website is no longer live.

ZO Properties’ Facebook page describes itself as a ‘leading serviced apartments’ operator in London and features some of the Maida Vale flats. But comments on the page also allege it has been collecting deposits for tenancies, cancelling them at the last moment and keeping the cash.

The Sun newspaper has reported that Zaha is now ‘urgently investigating’ what’s been going on.

ZO’s company address is currently registered at accountancy firm CC Young, but has previously been registered at a flexible workspace near Old Street on the outskirts of the City.

Pic credit: Shutterstock/Facebook

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Premier League footballer caught up in rent-to-rent sub-letting scheme | LandlordZONE.

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Premier League footballer caught up in dodgy rent-to-rent sub-letting scheme

admin    Uncategorized     agents

Crystal Palace FC footballer Wilfried Zaha has become embroiled in an alleged rent-to-rent scam involving a block of flats in West London, it has been reported.

The company involved is Z O and Sons Ltd trading as ZO Properties which the 29-year-old footballer joined as a director in October 2017 but resigned in August this year.

It has now been revealed that ZO Properties has been leasing the £2,700-a-month apartments in Maida Vale but sub-let them without consent and collected the rent and, it has been alleged, not been passing on the cash to the property’s owners.

The managing agent for the property’s freeholder told The Sun newspaper that the flats were to be used as staff accommodation, not sub-let on the open market.

Illegal sub-letting of properties by rent-to-rent companies as highlighted by this case are becoming a growing problem within the private rented sector and are giving the reputable providers a bad name, says evictions Paul Shamplina (pictured).

Eviction

“They also make possession claims difficult because it’s often hard to work out who the landlord really is and, as in this case, tenants believe they have paid their rent on time but are facing eviction by the ‘superior landlord’ for non-payment of rent,” he says.

According to the Sun newspaper, ZO Properties’ director Obinna Ogbonna cannot be traced, while the Companies House website reveals that his firm’s latest accounts are overdue by five months and its company website is no longer live.

ZO Properties’ Facebook page describes itself as a ‘leading serviced apartments’ operator in London and features some of the Maida Vale flats. But comments on the page also allege it has been collecting deposits for tenancies, cancelling them at the last moment and keeping the cash.

The Sun newspaper has reported that Zaha is now ‘urgently investigating’ what’s been going on.

ZO’s company address is currently registered at accountancy firm CC Young, but has previously been registered at a flexible workspace near Old Street on the outskirts of the City.

Pic credit: Shutterstock/Facebook

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Premier League footballer caught up in dodgy rent-to-rent sub-letting scheme | LandlordZONE.

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Levelling the playing field for Peer-to-Peer Islamic Finance alternatives

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Her Majesty’s Revenue and Customs (HMRC) has made a welcome announcement as part of their ‘Building a trusted, modern tax administration system’, a principle first heralded by the government in July 2020. HMRC’s vision is to design a trusted, modern tax system that is simpler

The post Levelling the playing field for Peer-to-Peer Islamic Finance alternatives appeared first on Property118.

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Selective licensing in Southend put on hold?

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Hi, I just wondered if there are any articles going up about selective licensing in Southend? Only because I’ve had quite a bad experience and wouldn’t want other people wasting their time.

I have spent two days filling out forms and then paid (although only £6) to find out the scheme has been put on hold (this isn’t mentioned anywhere on the council site) and then I went to email them only to find out their email address doesn’t work.

The post Selective licensing in Southend put on hold? appeared first on Property118.

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Cambridgeshire auction house offers abundance of commercial units

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Heading up the sale is the Springwater Business Park, in Whittlesey, Cambridgeshire. It takes place on Wednesday 8th September at the firm’s Cambridge showrooms. Comprising of five industrial units, occupied by three established tenants, the business park currently has a rent roll of £53,043

When asked, why the predominance of commercial property at this auction?, Ian Kitson, Director at Cheffins replied:

Yes…“this is the most commercial lots that we’ve had for a while. However we wouldn’t really say that this is any sort of reflection of the commercial market, its more that the residential market has been so busy that there are less residential lots coming to auction at the moment. Commercial owners are also looking to capitalise on the strength of the current market, particularly in the industrial sector.”

Out of every economic crisis comes opportunity. Given the outlook for global and regional estate markets, there are more opportunities developing that on an attractive risk-adjusted basis will be coming to market over the next 12 months or so.

Kelly Whitman, Executive Director, PGIM Real Estate says that:

“With the right approach to asset management, necessity-driven retail sites, such as neighbourhood centres, can be adapted to benefit from online spending…”

There are several key factors supporting the outlook and more opportunities, barring another set-back with mutant viruses, as Covid wanes in the population. The vaccine rollout is taking effect, and going forward the UK economy is set to benefit from several tailwinds as we go into 2022.

Re-opening this autumn has already given the UK economy a major boost, with spending from accumulated savings giving further fiscal stimulus. Shortages are an inevitable consequence when supply outstrips demand, with an inflationary environment as a spin-off, but this lends support to assets prices.

Commercial property tenant demand appears to have turned a corner, supported by these improving economic conditions and a strengthening labour market, albeit with severe labour shortages in some areas and a continuing skills gap in the UK.

The central banks remain committed to a supporting monetary policy and the motivation for them to keep interest rates low would point towards further yield compression – increased asset prices.

There is no doubting that parts of the retail and office markets are facing structural headwinds, so investors are increasingly turning to niche sectors as a source of resilient income-driven performance. Traditional large-scale offices are going to need substantial investment to not only meet future climate change adjustments, they will also need to be post pandemic compliant as well.

As we emerge from the pandemic, or at least learn to live with Covid, companies are beginning to solidify their strategies, one of which is to go local; to develop a hub and spoke system where smaller office units in strategic locations, staffed by smaller teams, support a central hub.

A major beneficiary of the pandemic has been the industrial sector and logistics hubs, and with online spending on a continuing upward trend, that’s not going to go away soon. There are opportunities to be had in this sector with careful selection.

Auction lots at Cheffins

The are some interesting investments coming up at the auction, many of them with appeal to small-scale commercial property investors.

– The steel frame units on the business park total over 12,000 sqft, currently occupied by EDF EN Services UK Ltd, Trade Van Sales Ltd and Stadler UK Ltd. The Park has an estimate of £675,000 – £700,000.

– A modern semi-detached two storey office/workshop building on Ermine Business Park in Huntingdon. With on-site parking, the premises feature a series of office spaces, totalling over 1,966 sqft, located one mile from Huntingdon town centre and the A1 and A14 trunk roads. The property has an estimate of £195,000 – £210,000.

– In Ipswich, there is a four-storey commercial investment property, which has been recently refurbished and comprises a retail unit, storage area in the basement, a store/workshop and an additional two further storerooms, totalling over 1,679 sqft. Located on Carr Street, the property is in the pedestrianised part of the town centre with nearby occupiers including Santander, Costa Coffee and Specsavers. The building benefits from a recently signed 10-year lease, with a current rent of £15,000 per annum, and it has an estimate of £175,000 – £200,000.

– For anyone looking for a mixed-use investment, a prime shop in Braintree, with planning permission in place for two residential flats is on offer with an estimate of £295,000. Set in the town centre on Bank Street, the property is offered with vacant possession, having previously been let to Edinburgh Woollen Mill.

– On Newmarket High Street is a former banking hall with permission to convert to retail with flats above. The building has the ability to be converted to a large retail unit, with basement storage and either one or two residential flats above. It has an estimate of £325,000.

Ian Kitson, Director, Cheffins says:

“We have seen that demand for commercial investment opportunities has increased over the past 12 months as investors look to diversify income streams. Industrial buildings such as those available at Springwater Park continue to be some of the most sought-after as the sector sees vast levels of demand and strong yields.

“Similarly, mixed-use buildings are being actively sought by both smaller corporate and private investors, or career landlords who look to spread their bets across both the residential and commercial sectors. Values are increasing for small scale investment options, and we have seen that many buyers have turned to the auction room to pick up commercial opportunities at competitive prices as confidence in the market continues to grow following the Covid-19 pandemic.”

Residential properties:

In the residential section, there is a renovation opportunity in the form of a four-bedroom bungalow on Barkway Road in Royston, which has an estimate of £350,000, and there are two substantial barns in Hempstead, near Saffron Walden, with an estimate of £60,000 – £75,000.

Land investments

In the land section there is 17.8 acres of grass and amenity woodland at Creeting St Mary, near Ipswich. The land is intersected by a river and provides an opportunity for amenity use, and is sure to appeal to nature-lovers and those seeking woodland parcels. This has an estimate of £110,000 – £120,000.

Ian Kitson says:

“Renovation projects are continually of interest for auction buyers and the house in Huntingdon is a fantastic prospect for someone looking to purchase a historic property and preserve it for future generations. The land at Creeting St Mary is also set to be popular as a rare opportunity for those looking for amenity or woodland parcels.”

The auction will take place on Wednesday 8th December, from 2pm, online at https://www.cheffins.co.uk/property-auctions.htm

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REVEALED: Details of how landlords will be fined for late MTD tax forms

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Landlords who watched a webinar hosted by LandlordZONE and its tax partner APARI this week were given a rare insider’s guide to

HMRC’s Make Tax Digital (MTD) initiative, which is due to become mandatory in April 2024.

This included how the quarterly digital submission regime will work and how landlords will be fined if they are late filing their self-assessment paperwork.

The online-only event was chaired by TV star Paul Shamplina (pictured) and attended by three HMRC insiders; Mel Hume, Ian Hutchinson and Jim Rogers all of whom have been involved in the five-year-long design and build of MTD.

On hand to give advice on was Anish Mehta, Managing Partner of HMRC-recognised software platform APARI which landlords can use to prepare and submit their self-assessment tax returns digitally.

The HMRC spokespeople were keen to explain the changes that landlords will face after April 2024 and reveal some of the detail as well as answer questions fielded by some of the hundreds of landlords who were watching.

Landlord tax

“Whenever we do a webinar or other event about landlord tax it’s always one of the most popular – landlords can struggle with the challenges of self-assessment and in less than two years they’ll be new rules and procedures to deal with,” said Shamplina.

On fines, HMRC’s Jim Rogers revealed that it would be based on a points system and that landlords would only be fined if they missed all of the four quarterly submission deadlines each year.

Also, landlords will be given a month after each quarter has finished to use software to submit their paperwork.

“We realised that the first quarterly deadline would be the hardest to meet,” said Rogers.

Confirmation messages

Other nuggets revealed during the webinar included how confirmation of meeting their tax obligations will be given to landlords through software providers like APARI, not direct from HMRC.

And landlords will have to start keeping all their income and expenses in a digital form and submit this information quarterly in addition to a final end-of-year ‘Final Declaration’.

Also, it was revealed that for jointly-owned properties, each person will have to judge whether they must do MTD and if they do, APARI enables a couple to capture the income and expenses once but use it to submit two tax returns separately.

HMRC says MTD is for landlords who earn income from renting out properties of more than £10,000 a year and, although MTD becomes mandatory in April 2024, they are urging landlords to start getting used to the changes now.

They are running a pilot with APARI to get feedback and make sure that the system caters for landlords properly when it becomes mandatory.

Watch the webinar for free here.

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