NEW initiative unlocks thousands of landlords from Grenfell risk rules nightmare

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Thousands of landlords should be able to sell properties locked up by Grenfell risk rules following the launch of a government insurance scheme.

The Government Actuary Department (GAD) has developed the professional indemnity insurance scheme as many qualified professionals cannot currently get professional indemnity insurance to cover their External Wall System (EWS1) assessments.

These assessments are carried out to decide whether remediation work such as cladding removal is needed on a high-rise building after mortgage lenders became reluctant to lend to buyers of high-rise flats following the Grenfell fire.

GAD has supported the Department of Levelling Up, Housing and Communities to design and work out pricing of the scheme, which project lead Jacqui Draper (pictured) says was a complex and significant piece of work.

“We have estimated that claim costs will be £100 million, although there is no theoretical cap on the total size of claims that could be made,” she adds.

“We also advised DLUHC on the level of premiums needed to recoup the expected claims and operating costs.”

September launch

The scheme is set to launch in September and the government has teamed up with a selected insurer which will be administering the policies to qualified professionals.

Earlier this year, the government announced that leaseholders would not have to pay for remediation work on properties between 11m-18m high, making developers responsible for funding works. After initially saying ‘qualifying leaseholders’ would not include landlords, it included ‘accidental’ landlords with no more than three properties in total.

View Full Article: NEW initiative unlocks thousands of landlords from Grenfell risk rules nightmare

7 Steps For Recession Success Over The Next Five Years

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7 steps to succeed in recession over the next 5 years presented by Ranjan Bhattacharya at the Baker Street Property Meet.

History is repeating itself, it’s like we’re back in the 1980s!

However, Uk property investors can use this past and present data to predict the future of property over the next five years and get ahead.

View Full Article: 7 Steps For Recession Success Over The Next Five Years

EXCLUSIVE: Can landlords still access councils’ empty homes funding?

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Landlords with empty properties are being urged to take advantage of council cash to help fight the housing shortage.

About 300 councils currently offer a scheme – mainly loans to carry out repairs – although some provide grants, usually ranging from £5,000 to more than £25,000.

However, since 2015 when central government funding stopped, councils have had to find the cash from their own budgets.

Kent County Council’s No Use Empty scheme, for example, offers short-term loans of between £25,000 and £175,000, while Preston Council will offer to buy an empty property and renovate it for its use.

Often councils will only offer grants on the condition that landlords then take tenants in council temporary accommodation.

Camden’s Landlord Empty Property Grant scheme offers £15,000 for a bedsit up to £80,000 for a large building and has provided 56 grants – mainly for flats – since 2013/14.

It believes that many empty homeowners might struggle to repay a loan and that loan schemes can be complex and a burden to administer, says councillor Meric Apak (pictured) cabinet member for better homes.

He says: “One of the most successful approaches available to us is to use grants to support empty homeowners to undertake any works required, in return for which we ask them to house a homeless household we are working with.”

Action on Empty Homes says take-up is better wherever the scheme is more generous, but believes that with housing waiting lists getting worse, it’s a good way to help.

“It’s worth finding out whether your council does it,” campaigns manager Chris Bailey tells LandlordZONE.

“For those landlords looking to buy property at auction in up-and-coming areas, these are more likely to need some work, so it makes a lot of sense to look at a scheme that will help you.”

It believes a new national empty homes strategy would create a national fund to support councils in bringing tens of thousands of long-term empty homes back into use and says council tax rises alone are unlikely to be effective. “Carrots are needed as well as sticks,” adds Bailey.

Read more about empty homes.

View Full Article: EXCLUSIVE: Can landlords still access councils’ empty homes funding?