Help for green improvements but not for struggling renters on benefits

admin    Uncategorized     agents

A VAT cut on solar panels and heat pumps has been welcomed by the sector but there’s frustration that the Chancellor ignored the impact of rising rents in his spring Budget.

Rishi Sunak announced he was cutting the 5% rate on energy saving materials to 0% for five years to help households improve energy efficiency and keep heating bills down. He promised the changes, which take effect from April, would save a typical household more than £1,000 to have roof-top solar panels installed.

Product demand

Jonathan Murton, director of energy efficiency consultants Murton & Co, says the rise in energy prices had already increased demand for products and adds: “I suspect there will be frustrations though as we are already seeing orders not yet fulfilled due to increasing backlogs and lead times.”

Elsewhere in the Budget, the Chancellor announced he was cutting fuel duty by 5p and reducing the basic rate of income tax from 20p to 19p in the pound from 2024. He also raised the threshold for the amount people earn before they pay National Insurance to £12,570 a year.

Cost-of-living crisis

The National Residential Landlords Association is disappointed that the government has again failed to explain what was required of the rental sector when it comes to energy improvements.

Chief executive Ben Beadle says: “More broadly, as renters, along with all others, face a cost-of-living crisis, the Chancellor should have reversed his decision to freeze housing benefit rates. Without this, those relying on the benefit will find it increasingly difficult to afford their rents.”

Alicia Kennedy, director of Generation Rent, adds: “When inflation is running at 7.4%, the Chancellor should have targeted help towards those least able to manage, by raising benefits at the same rate and making sure Local Housing Allowance covers rising rents. If he wants economic growth, the Chancellor should be shifting taxation from work to property wealth.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Help for green improvements but not for struggling renters on benefits | LandlordZONE.

View Full Article: Help for green improvements but not for struggling renters on benefits

Eviction rules change in Wales – but not for long

admin    Uncategorized     agents

Landlords in Wales have a brief window of opportunity to serve Section 21 eviction notices after Covid-imposed changes end but before the new Renting Homes Act kicks in.

The six-month notice rule – first introduced in July 2020 – ends tomorrow and reverts back to two months, but only until 15^th July when under the new Act, landlords will need to give six months’ notice again. The government had previously extended the rule last December in a bid to ease homelessness.

New regime

Property lawyer David Smith at JMW Solicitors says: “There is a short period to serve these notices for them to expire before Renting Homes comes into effect in July. As things stand those notices cease to exist in July. However, there are hints that notices served before July will carry over into the new regime.”

Once the new law comes in, landlords will not be able to give notice until six months after the contract starts, and unless they have been registered and licensed with Rent Smart Wales and followed deposit protection rules.

Media campaign

The Welsh government has now produced a new toolkit to help get the message out about the biggest shake-up of housing law in Wales for decades.

‘The Way You Rent is Changing’ is a communications campaign designed to tell everyone in the PRS about the new rules, and includes digital advertising, a radio campaign and direct communication, directing landlords and tenants to the website for more information.

As well as providing them with the toolkit, it’s also asking landlords to help share information about the changes on their social media channels.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Eviction rules change in Wales – but not for long | LandlordZONE.

View Full Article: Eviction rules change in Wales – but not for long

Spring Statement 2022 – Landlord Reactions

admin    Uncategorized     agents

Chancellor Rishi Sunak has just presented his Spring Statement to Parliament, focussing on the cost of living crisis and its exacerbation by immediately falling into another crisis, supporting global economic sanctions against the war in Ukraine.

The Chancellor’s policies to relieve the cost of global inflation to households included:

The threshold for paying National Insurance will increase by £3,000 from July to parity with the basic rate of income tax at £12,570.

View Full Article: Spring Statement 2022 – Landlord Reactions

To all landlords who rent to sharers

admin    Uncategorized     agents

As most Property118 readers will be aware, properties where there are three or more occupiers forming more than one ‘household’ will be classed as an HMO.  Making landlords liable for extra regulation.

Properties, where there are five or more occupiers forming more than one household

View Full Article: To all landlords who rent to sharers

Tenants in East Midlands hit by highest rent increases

admin    Uncategorized     agents

UK private rental prices went up by 2.3% in the 12 months to February, representing the largest annual growth rate since December 2016.

The Index of Private Housing Rental Prices reveals that the East Midlands saw the highest growth (3.8%), while London saw the lowest (0.2%), which reflects a fall in demand caused by remote working shifting housing preferences, according to the Office of National Statistics (ONS). It also reflects an increase in supply as short-term lets have changed to long-term lets.

Regional rises

In England, prices grew by 2.1%, representing the highest 12-month growth rate since March 2017. When London is excluded, private rental prices increased by 3.1%, up from a rise of 3% in January, and the highest 12-month growth rate since the research began in 2006. Wales saw a 1.4% increase, in Scotland it was 2.6% and there was a 6.5% jump in Northern Ireland.

The ONS says growth in private rental prices paid by tenants in the UK had remained broadly flat between November 2019 and the end of 2020, while the start of 2021 saw a slowdown in rental price growth, which was driven by the market in London. Growth in private rental prices has increased since the latter part of 2021, with widespread annual growth across all regions, with the exception of the capital.

It adds that rental price increases recently reported by ARLA and supply challenges flagged up by the Royal Institution of Chartered Surveyors would take time to feed through to the index, which reflects price changes for all private rental properties rather than just newly advertised rental properties.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tenants in East Midlands hit by highest rent increases | LandlordZONE.

View Full Article: Tenants in East Midlands hit by highest rent increases

Hostel landlord slapped with huge fine for shocking fire risks

admin    Uncategorized     agents

A Liverpool landlord has been handed a £20,000 fine for exposing vulnerable tenants to serious fire risks at their homeless hostel.

Step One (NW) Limited admitted five charges under the Management of Houses in Multiple Occupation (England) Regulations relating to Lower Breck House on Lower Breck Road, that houses a wide range of tenants, many of whom have suffered homelessness and substance abuse.

Anonymous tip-off

Liverpool Magistrates Court heard that after an anonymous tip-off, council officers discovered the HMO had 43 defective fire doors throughout the building, while the fire alarm sounders failed to meet the required decibel level, meaning that tenants might not have heard a fire alarm. Fire extinguishers also had out-of-date service records, some appearing to have had their last service as far back as 2016. Excessive use of intumescent foam exceeded the permitted amount while the cellar staircase was not adequately fire protected.

Liverpool Council told the court there had been a systemic failure to ensure the HMO was safe and adequately fire protected. District Judge Healey noted that the defects at the property had raised the risk of fire spread and fined the firm £20,000 plus costs of £4,747 and a victim surcharge of £190.

Shocking disregard

Councillor Sarah Doyle, cabinet member for strategic housing and regeneration, says the case reveals a shocking disregard for the safety of vulnerable tenants. She adds: “The landlord was taking rent for people to live in unsafe conditions and I dread to think what could have happened if a fire had broken out in the property.

“We are determined to take action against landlords if they put tenants at risk, which is why we are also about to launch a new landlord licensing scheme which will give us the tools to identify and tackle private rented properties as well as HMOs.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Hostel landlord slapped with huge fine for shocking fire risks | LandlordZONE.

View Full Article: Hostel landlord slapped with huge fine for shocking fire risks