HMO platform raises £275,000 as it bids to become ‘Airbnb for house sharing’

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A tech platform that enables landlords to manage HMOs more effectively has raised £275,000 in new funding as its bids to become the ‘Airbnb for shared living’.

The money comes from asset management giant Mercia which has ten offices around the UK. Its MEIF Proof of Concept & Early Stage

Fund has made the investment in COHO, whose CEO Vann Vogstad (main pic, centre).

He came up with the idea of an online property management platform just for HMOs after living in house shares in Birmingham when he was a student.

COHO, which is unique within the housing tech space, is hoping to accelerate the growing trend for co-living amongst people of all ages. It allows property investors to manage their portfolio and tenants to find a suitable house share with like-minded people.

The platform, which Vogstad co-founded with Liam Cooper last year, has since then signed up 80 landlords.

The funding will allow the Worcester-based company to expand the team with the addition of five new jobs and develop a host of new features to improve the management of shared living.

Mainstream

“By making house sharing easier to manage for both landlords and tenants, COHO aims to bring it to the mainstream,” says Vogstad.

“The support of our investors will enable us to move forward at a much faster pace to achieve our ambition of making shared living more accessible to both property investors and tenants, and become the Airbnb of house shares.”

Kiran Mehta, Investment Manager at Mercia, says: “The property management sector is ripe for innovation with many landlords, in particular those with HMOs, having to patch together multiple management tools.

“COHO offers a one-stop shop for property management. Vann and the team have carved out a strong niche in the HMO market and have plans for some exciting additions to the product roadmap.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – HMO platform raises £275,000 as it bids to become ‘Airbnb for house sharing’ | LandlordZONE.

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Landlords are their reducing leverage requirements

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“Since the end of lockdown, we’ve seen an increasing population of landlords who do not wish to leverage their properties as much as they may have done previously. As a responsible lender, we have launched some 50% and 60% LTV products to cater for this market and reward this prudent approach.

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Interest Rate Rise Impact Calculator Wizard

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Calculating the extra amount of interest you will pay as a result of the recent 0.25% interest rate rise isn’t exactly rocket science for some people. However, if numbers isn’t your thing and/or you would like to understand how the Bank of England decision will affect your cashflow and your tax position I’ve designed the wizard below for you to use free of charge.

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£1.5 billion fund launched by government to back SME rental home construction

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SME developers and builders will soon have access to £250,000 home-building loans through the government’s Levelling Up Home Building Fund, announced as part of its new White Paper.

It wants to encourage innovative projects to build rental and for-sale homes, such as community-led housing projects and groups of small firms working together to deliver larger sites and will share out the new £1.5 billion fund in the hope it will lead to 42,000 new homes being delivered.

Individuals and UK firms will be eligible for finance as long as their project is financially viable, they are planning on building or refurbishing five or more homes on a site in England, and their project would stall, or progress much less quickly, without the cash.

They need to have a controlling interest in the land and a clear route to achieving planning consent.

Managed by Homes England, the fund offers finance from £250,000 for a five-year term but the government has also partnered with Invest & Fund to hand out loans of between £400,000 and £2.5 million for applicants who are planning fewer than five units.

Brian Berry, chief executive of the Federation of Master Builders, says the loans should be targeted at reversing the decline in SME housebuilders, who are now delivering only 12% of the country’s housing stock, down from 40% in the 1980s.

“Local housebuilders develop on underutilised land that will be vital for hitting housing targets. However, these plans must make sure we’re helping to deliver new homes where demand is highest.”

He adds: “It’s positive that the government is taking steps to improve the quality and energy efficiency of our existing housing stock in the private rented sector. Local builders will be critical to the success of this policy and should be considered at each point of its implementation.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – £1.5 billion fund launched by government to back SME rental home construction | LandlordZONE.

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Are Gove’s ‘levelling up’ plans a step too far for landlords?

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Taxes. Regulations. Rental changes. Reforms. High standards. Section 21 being scrapped. Is this all too much for some landlords?

The government’s dramatic Levelling Up White Paper feels like another knife in the back to the private rental sector.

A national landlord register, crack-down on rogue landlords, the implementation of a national ‘decent homes standard’ and moves to abolish section 21 ‘no fault’ evictions; it’s easy to see why so many landlords are anxious about the changes.

Frustration

Many landlords are already worried about the looming EPC and ‘decent standard’ refurb costs being forced through by the government.

On a £60,000 property, which may only earn £6,000 a year in rent, a £10,000 to £15,000 refurb raises the question: is it worth it, or is there a way out?

What’s more, many landlords have been hit with the mammoth task of incorporating their portfolios. It’s safe to say, the landlord sector isn’t what it used to be. But what are the solutions?

Limited company

Incorporate, absorb the costs and hope things get better could be an option, and there are plenty of companies out there that are rising to the challenge and providing landlords with a service to do so.

Property118 are landlord incorporation specialists who can solve Section 24 problems by efficiently transferring property rental businesses into Limited Companies.

This solution works well for those who can fork out the fees, and are resisting selling because of Capital Gains Tax, but is CGT really a problem?

A deeper dive shows it might not be as bad as landlords think. With the decision of how best to manage the equity in portfolios, another option could be to sell up and cash in.

Selling up

It’s a route that many landlords are taking. Landlord Sales Agency is the leading portfolio exit specialists that have a credible track record when it comes to selling, and they’ll sell your entire portfolio in one sitting for 80 – 90% of the market value.

It takes handles all the hassle and delivers a lump sum for the whole portfolio in your bank in 7 to 21 days.

Expert view

David Coughlin, CEO of Landlord Sales Agency says: “You can either look at the changes as a frustration, or an opportunity to get out now while you still can.

“I’m selling my own portfolio and at Landlord Sales Agency our team know exactly what to do to help other landlords do the same.

“Between £2 million in the bank and the chance to lose the headaches and retire, or all the money we’re going to end up forking out as the government makes things tighter and tighter, I’d pick cashing in right now.

“We’ve had a good run of it, it’s now time to take the lump sum and reinvest in other business projects or retire and relax.”

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©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Are Gove’s ‘levelling up’ plans a step too far for landlords? | LandlordZONE.

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LATEST: Renting reforms legislation ‘still a long way off’ admits government

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The government has admitted that its long-awaited rent reform White Paper won’t be published until the Spring – more than two and a half years after it was first announced.

While announcing its Levelling Up White Paper yesterday, Michael Gove admitted that plans for ending Section 21 evictions and giving all tenants a strong right to redress were still not finalised.

The raft of reforms were first announced in November 2019 and again in the Queen’s Speech in May 2021.

In the Levelling Up White Paper, it announced it would be, “Publishing a White Paper in the spring setting out how the UK government will support those in the Private Rented Sector including ending so-called ‘no-fault’ Section 21 evictions and giving all tenants a strong right to redress.

“It will explore proposals for new minimum standards for rented homes, introducing a National Landlord Register and taking tough action against rogue landlords.”

Gove say he would only provide more details once his department’s review into the planned Decent Homes Standard review had concluded.

Rogue landlords

In the Commons yesterday, Gove explained: “Our white paper this Spring will cut the number of poor-quality rented homes by half, will also address the injustice of no-fault evictions and bear down on rogue landlords.”

He added that it would deliver a “tough focus” on decent standards in rented homes by setting a decent minimum standard that all rented properties must meet.

However, Shadow Communities and Local Government Secretary, Lisa Nandy (pictured), launched a vigorous attack on Gove’s levelling-up announcement, accusing the government of “fiddling the figures” and “cobbling together a shopping list of recycled policies”.

She added: “The system is completely broken and the government is out of ideas…these are recycled watered-down ambitions with some announcements that are so old – one is from 2008.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Renting reforms legislation ‘still a long way off’ admits government | LandlordZONE.

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Bank of England increases Base Rate to 05%

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The Bank of England’s Monetary Policy Committee (MPC) has voted by a majority of 5-4 to increase Bank Base Rate by 0.25 percentage points, to 0.5%.

The members of the committee that voted against actually wanted to increase the rate by 0.5 to 0.75%

View Full Article: Bank of England increases Base Rate to 05%

EXCLUSIVE: ITV Tonight’s Dan Hewitt to investigate Covid evictions

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Evictions expert Paul Shamplina is due to appear in the latest special investigation by ITV’s flagship Tonight programme, this time into the rental sector – and fronted by ITV journalist Daniel Hewitt. It is to be aired on 24^th February.

Hewitt, whose report into social housing made headlines in September after he uncovered shocking conditions endured by some council housing tenants, is now looking at the private rented sector and, in particular, evictions during Covid.

He visited the offices of Landlord Action to film an interview with its founder Paul Shamplina who is also Chief Commercial Officer at parent company Hamilton Fraser.

The film crew had earlier followed Shamplina as he attended evictions in Hounslow in London and Banbury in Oxfordshire, as well as serving three eviction notices at different properties in North London that morning.

“My understanding is that the programme will be about tenants and landlords and how they have been affected by the large rent arrears built up during Covid, and the consequent rise in evictions,” he tells LandlordZONE.

Surge

“I told Hewitt how the pandemic has led to a surge in landlords evicting their tenants, post the eviction ban and a rise in the number of landlords cashing in and leaving the market.”

“Remember that 70% of our work at Landlord Action relates to Section 8 rent arrears cases, but we are increasingly seeing more landlords using Section 21 to gain possession and sell their properties.”

Shamplina says he hopes the programme will include his claim that the number of possession claims in England is likely to double over the next 12 months compared to 2021 as both social and private landlords ramp up their activities.

“But the biggest challenge to loom over landlords is not so much increasing evictions but the huge costs of upgrading properties to reach EPC band C by 2030.

“I am confident that the programme will be a balanced look at the private rented sector, and reflect the common feeling among many landlords that they are under fire from all directions,” he adds.

Shamplina has appeared on The Tonight programme in the past.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: ITV Tonight’s Dan Hewitt to investigate Covid evictions | LandlordZONE.

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What will new ‘decent homes standard’ ask of landlords? Here’s our ‘sneak peak’

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Landlords are waiting to find out how they will need to bring their properties up to the ‘decent homes standard’ announced in the government’s Levelling Up White Paper.

However, its extensive guidance for social landlords gives a good indication of what might be expected as this is likely to be the basis for the new rules covering private landlords.

Under the definition, a home is considered decent if it doesn’t have one or more serious category one hazards. It also needs to be in a “reasonable state of repair” and would fail the test if one or more of the key building components – external walls, roof structure and covering, windows/doors, chimneys, central heating boilers, gas fires, storage heaters, plumbing and electrics – are old (older than their standard lifetime) and, because of their condition, need replacing or major repair.

A property isn’t in a reasonable state of repair if two or more of any other building components are old and, because of their condition, need replacing or major repair.

‘Reasonably modern’

Properties need “reasonably modern facilities and services” and those which lack three or more of the following would fail: a reasonably modern kitchen (20 years old or less); kitchen with adequate space and layout; reasonably modern bathroom (30 years old or less); an appropriately located bathroom and WC; adequate insulation against external noise (where external noise is a problem); and adequate size and layout of common areas for blocks of flats.

A home without one or two of these is still classed as decent, and landlords wouldn’t need to modernise kitchens and bathrooms if their property meets the remaining criteria.

Lastly, properties need to “provide a reasonable degree of thermal comfort” through both effective insulation and efficient heating – although this definition could well be superseded by any upcoming changes to EPC ratings.

Government guidance also notes that landlords are not expected to make a home decent if this is against a tenant’s wishes as work can be undertaken when it is next void.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – What will new ‘decent homes standard’ ask of landlords? Here’s our ‘sneak peak’ | LandlordZONE.

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Japanese knotweed, danger is downgraded…

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The large herbaceous perennial with its bamboo-like appearance became infamous in Britain for it’s threat to buildings. Its rapid growth, its size and most importantly the damage it can do, made it the villain of the horticultural world, and it became feared by property owners and mortgage lenders alike.

Until recently, the presence of the invasive plant coming within seven metres of a home could cut up to 15 per cent off the property’s value. It meant banks and mortgage lenders were reluctant to lend to buyers given the threat to the property.

However, rather like Covid, it seems, this threat is being downgraded.

Japanese knotweed is no longer seen as such a serious threat to property valuations, that’s according to new official guidance put out by the Royal Institution for Chartered Surveyors (RICS) for its chartered building surveyors.

The new guidelines from the respected professional body says that knotweed should not affect the value of a home unless it is causing visible damage. The guidance, due out by the end of March, claims there’s now a better understanding of the threat level of the plant which means surveyors no longer have to flag it up as a risk, in most circumstances.

Experience has shown, according to the new guidance, that the invasive weed “rarely causes” substantial damage to homes, and is less of a risk than other species such as buddleia and bamboo*.

Surveyors are being asked to “flag-up” the presence of knotweed if it is visible within 10ft of a property and where there are signs of damage. They are advised to investigate to determine whether any damage is caused by the plant or something else, but in any case it is unlikely to affect mortgeability either way says the guidance.

The RICS says:

“Substantial structures on sound foundations are unlikely to suffer structural damage due to Japanese knotweed.”

It has been estimated that knotweed, a plant that is difficult to kill and irradiate, grows up to 10ft, and has been costing the UK economy millions a year in treatment and in home devaluations.

The plant tends to lie dormant in winter months before resuming its rapid growth in the summer, while there is a danger of it reaching buildings and crossing neighbour boundaries, sometimes resulting in litigation between property owners.

Government report on knotweed

A UK government report published last year gave credence to the view that Japanese Knotweed may not be as big a threat to buildings as previously thought. These were the conclusions reached in the government’s report and pointed to what the future might hold for Japanese Knotweed and those affected by it.

Previous to that, in May 2019 the House of Commons Science and Technology Committee published a report “Japanese Knotweed and the built environment”. This followed a detailed inquiry prompted by the publication of new research by Dr Mark Fennell, Professor Max Wade and Dr Bacon in July 2018 (Fennell et al) which suggested that Japanese Knotweed may pose no greater threat to property than that of other plants.

What is Japanese Knotweed?

It is a large, highly aggressive and invasive weed, sometimes referred to as “elephant ears, “donkey rhubarb” or “monkey weed”. It grows in a variety of conditions and can commonly be seen alongside train tracks, on river banks and on waste ground.

The plant has large hollow stems similar to bamboo and large, green, heart shaped leaves. Its roots (rhizomes) have been thought to grow as far as seven metres horizontally and two metres deep underground – it is this extensive root spread that makes the plant so difficult to remove once established.

The only means of destroying Japanese Knotweed is to kill the roots. This can only be achieved by either multiple applications of herbicide or full excavation. If even a few centimetres of root are left in the ground, the plant can regrow.

Japanese Knotweed is classed as a controlled plant under the Wildlife and Countryside Act 1981. Whilst is not illegal to have the plant on your own property, it is illegal to allow it to spread on to adjoining property, including allowing the roots to spread underground. Under the Environmental Protection Act 1990 the plant is classed as “controlled waste”, meaning that it is illegal to dig it up and remove it from your property unless it is disposed of at a licensed landfill site.

A landmark legal case

In a 2018 legal case, Network Rail Infrastructure Ltd v Williams and another involved Japanese Knotweed growing on a railway embankment owned by Network Rail, and the claimants owned affected bungalows.

The Court of Appeal made it clear that the presence of Japanese Knotweed will not, in itself, provide grounds for a diminution of value claim, but encroachment of the plant onto neighbouring land will probably entitle the neighbour to damages. This is not because of any reduction in value, but because it interferes with the ability to fully use and enjoy the land. It has yet to be seen how courts would approach the quantification of such loss.

*Mortgage lenders have some concern about Japanese knotweed and its impact on the built environment. But stories about knotweed have become a popular media favourite, often exaggerated. It can undoubtedly damage the built environment, but usually in buildings by exacerbating an existing weakness such as cracks, crumbling mortar, decaying tarmac etc. It can lift paving slabs, block paving, etc, but damage to building structures is rare.

Buddleia is in fact responsible for more structural damage than Japanese knotweed. Seeds can grow in the smallest of cracks, even without access to soil. It is particularly damaging to the railway network, where it weakens bridges, interferes with overhead power lines and obscures signals.

Bamboo roots are very strong and not easily broken. They are thin and fibrous and can be found to a depth of up to 1m. They can be destructive to the built environment lifting paving, distorting or penetrating soft or decaying tarmac. They can also find their way into a buildings if there is a point of access available, and can grow through retaining walls and spread beyond boundaries.

So in those respects these two plants can be worse than Japanese knotweed.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Japanese knotweed, danger is downgraded… | LandlordZONE.

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