London borough gets green light for unusual EPC-linked Selective Licensing scheme

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The Government has given the Hackney council in London the green light to introduce a Selective Licensing scheme in 14 of its wards to the east of the borough.

This scheme will be highly unusual because part of the scheme’s aims will be to target properties with low EPC ratings and help landlords upgrade them, which Hackney says is a direct response to the cost of living crisis.

As LandlordZONE reported last year, the scheme is due to rake in some £21.6 million for the council in fees revenue.

Hackney’s announcement follows a consultation last year among landlords, tenants and other interested parties..
But due to the size of the scheme, the Secretary of State for Levelling Up, Housing and Communities had to give his consent.

Legally let

This has now been achieved and landlords who let their properties in the east of the borough to a single family or two unrelated sharers will now be required to obtain a licence from the Council to legally let the property.

This scheme is in addition to the existing borough-wide licensing scheme for HMOs.

With a specific focus on reducing fuel poverty, the Selective Licensing scheme will help the council identify properties with the worst energy efficiency ratings and provide landlords with the relevant support and education to adapt their properties and effectively measure their carbon emissions the council says.

Few details of how this will work have been released, although one Haringey advice documents reveals thatit will: “require landlords to take action to improve the quality of the homes they rent and manage those properties more effectively”.

Those who apply for an ‘early bird’ Selective Licencing application will benefit from a discounted fee.
Landlords will pay £350 per a property instead of £600, should they sign up early.

Cllr Dana Carlin (pictured), Cabinet Member for House Services, Private Renters and Planning, says: “With over 40% of the borough renting from a private landlord, we want to ensure all our residents live in warm and safe homes.

“The Selective Licensing scheme will enable us to work with landlords to improve the quality of the housing stock in the private rented sector and support our private renters.

“We will take action to ensure that all private rented properties in the designated area are licensed and comply with relevant conditions.”

More details on how to apply.

View Full Article: London borough gets green light for unusual EPC-linked Selective Licensing scheme

Poacher turned gamekeeper? Airbnb helps spot fraudulently rented social housing

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Airbnb has started sharing payment data with Kensington and Chelsea Council in a bid to crack down on illegal short-term lets.

The lettings platform was given the go-ahead by the courts to share information as part of a new collaboration with the authority to tackle the problem of fraudulently let social housing. Any evidence it finds can be used in future legal action and will identify those social housing properties being potentially listed as holiday and short-term lets.

Theo Lomas, head of government relations for Northern Europe at Airbnb, says the initiative highlights the need for a more regulated sector.

Illegal

“Hosting in subsidised or social housing in the UK is illegal and has no place on Airbnb,” he says, “however the current situation is complex and costly, and requires a court order to avoid breaking GDPR rules.”

Adds Lomas: “This is yet another example of the need for the UK to update its rules and introduce a single registration system, so authorities have the information they need to tackle bad actors and return housing to those in need.”

The order, a first for Kensington and Chelsea, applies to two estates in North Kensington, but Airbnb and the council are working together to stamp out illegal sub-letting activity in social housing across the borough.

Councillor Kim-Taylor Smith (pictured), lead member for housing, says there’s huge demand for social housing in the borough.

“It’s simply not fair that people in genuine need are being denied a place to call home because others are illegally subletting their council properties to make money.”

He adds: “Tenancy fraud is not a victimless crime. It costs the public purse an average of £42,000 a year for each home and this welcome collaboration with Airbnb will help us to clamp down on it in our borough.”

View Full Article: Poacher turned gamekeeper? Airbnb helps spot fraudulently rented social housing

LATEST: More tenants staying put instead of moving home, report letting agents

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More renters are choosing to renew their existing tenancies rather than move house, according to estate agency trade association Propertymark’s latest research.

With rents still rising, a new peak in the number of people looking for a home to rent and lack of stock, the estate agent body reports that 73% of agents have seen an increase in the number of tenants renewing their tenancies during the past 12 months, evidencing the ‘big stay put’.

An average of 127 new applicants were registered per member branch in July, a figure which has been on a slow upward trend since February when it stood at 79.

Propertymark’s members reported having an average of 11 properties per branch that were available to rent in July – the same figure as the previous month and up from four properties reported in February.

It adds that 82% of members reported month-on-month rent prices increasing in July, a new record that reflects the continued pressure on rents experienced since spring last year.

Propertymark CEO Nathan Emerson (pictured) explains that the private rental market continues to be battered by the perfect storm of high demand, low availability and affordability issues that shows no sign of easing.

He says: “Governments across the UK are all engaged in a tenant-focused reform of their private rental sectors.

“To boost supply, they also need to consider the heavy tax burden on property owners, the impact of more profitable and less regulated short-term lets, many of which stand empty for part of the year, and the lack of new homes being built to cope with the varied needs of a growing population.”

View Full Article: LATEST: More tenants staying put instead of moving home, report letting agents

Making tax digital as a landlord: What you need to know

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Making tax digital (MTD) for income tax is part of the government’s long-term strategy to digitalise tax and will have implications for how landlords pay tax on their income. For those used to self-assessment, it will represent a change, but providing digital records will give businesses greater insight into their finances and help avoid mistakes and lost tax revenue. With this new way of reporting income for tax purposes already coming in, it is essential for landlords to fully understand the process and what it means for them.

Who should be in the MTD program?

The government already requires VAT-registered businesses over the VAT threshold to use software in their accounting. That came into play in April 2019, and all VAT businesses have needed to follow the rules since April 2022.

From April 2024, many businesses and individuals using self-assessment for their tax returns will need to move to MTD, including landlords. The threshold is those whose income is over £10,000 per year. If, as a landlord, your rental income is over £10,000, you will need to use MTD. If, as well as a landlord, you are also a sole trader, you will need to combine your income from all your businesses, including rental income and use the MTD program if you are over the threshold.

If your rental income is below £10,000 a year and that is your sole income, or your additional income comes from employment where your tax and NI are paid through your employer’s payroll, then you do not need to move to MTD and can continue using self-assessment for tax liabilities.

Accounting software

One of the fundamental changes is that for MTD, it is compulsory to use software for accounting. If you already use software for your financial records, you will need to ask your provider if they intend to become MTD-compatible. The Gov.UK website has a list of software that is already compatible, including APARI, Sage and Untied, with a further list of companies with compatible software in development. It is worth checking this page as the deadline for moving to MTD comes closer to see if you need to change your provider.

MTD-compatible software comes in a range of prices and includes a variety of features, with some companies offering tiered systems to make them more affordable for smaller businesses. Some software packages offer free trials that are ideal for trying before you commit to them, and others provide a basic package that is entirely free. It is well worth looking closely at several different providers to find the one that best meets your needs and budget.

Owning multiple properties

If you have property income from two or more properties, you do not need to register each one separately for the MTD program, as all your income will be submitted in one. However, for your purposes, it is probably still a good idea to maintain individual records for each property you own to be able to make sensible decisions and plans.

Co-owning properties

If a business partnership owns a property or several properties, a nominated partner must fulfil the MTD obligations on behalf of the partnership. The individual’s share of the profit based on ownership will be pushed by the nominated partner to their digital tax accounts, and their individual tax liability will be calculated.

If you own property jointly, perhaps with a spouse, each person who received income from that property must register for MTD and report their income separately.

Getting started

Assuming you have not already registered for MTD as a VAT business, you or your accountant must register by the 5^th of April 2024. If you are already registered for self-assessment, you will not be moved automatically.

Using your software, you will provide HMRC with quarterly updates. Although there is no legal requirement for them to be accurate, they will be used to estimate your tax and NI obligations. Making them as accurate as possible will give you reliable estimates to help you with your financial planning.

By the 31^st of January, following the end of each tax year, you will use your software to provide an end-of-period statement (EPOS) with details of your property income and expenses. If you have any other businesses, you will also need an EPOS for each of them. At this time, you should also complete a final declaration of income, combining income as a sole trader and your rental income. The 31^st of January is also the deadline for paying tax and national insurance.

As with all changes, MTD is likely to take some getting used to, but Gov.UK guidance and videos are available to help you make the change more smoothly.

View Full Article: Making tax digital as a landlord: What you need to know

Fire risk assessments and FRAEW?

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Hello everyone, I am keen for readers’ views relating to the fire risk assessments and Fire Risk Appraisal of External Walls (FRAEW).

I’m just wondering how other professional landlords are faring with this – the Act is unclear about how we are to progress or what we can to do help the situation –

View Full Article: Fire risk assessments and FRAEW?

Repeat rogue landlord to pay £33,000 over HMO failures but escapes larger fine

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A rogue landlord who threatened tenants with eviction after they complained about problems in their HMOs has had her fine slashed by £67,000 to £33,000.

Lystra Dorval, of Oaks Lane, Ilford, was issued with 10 penalty notices relating to poor management of two sub-standard HMOs in Hayes Road (pictured), Clacton, and fined £90,000 following an investigation by Tendring District Council.

However, a First Tier Property Tribunal ruled that because the issues had rapidly deteriorated over a short period of time there was less culpability.

Dorval argued that some work had been done and that damage had been caused by the tenants. It follows a previous appeal in 2020 when another tribunal reduced her fine to £70,500.

Threatened

The council’s housing team first began work with Dorval in April 2019, when tenants reported they had been threatened with eviction after highlighting problems, which included a faulty fire alarm, blocked fire escapes, insecure entrance doors, broken staircases, toilets not working, water leaks and dangerous electrics.

Several complaints were also made by neighbours about anti-social behaviour and the property’s condition.

When work had still not been done, the council issued an Emergency Prohibition Order to shut down the buildings. It also removed Dorval’s HMO licences.

The next day, a gas leak and flooding were found after pipework was stolen, and during clear-up work further damage was revealed including floors at risk of collapse, drains blocked with rubble and rotting waste.

Paul Honeywood (pictured), cabinet member for housing, says the level of fine shows landlords they must maintain their properties. “We are not afraid to take action against rogue landlords who think it is acceptable for our residents to live in sub-standard housing. This case highlights the issues which can happen, rarely to this level, and we will not hesitate to take strong action to clamp down on landlords who flout the rules.”

Read more: Essential guide to HMO property management.

View Full Article: Repeat rogue landlord to pay £33,000 over HMO failures but escapes larger fine

Property Market August Update With Ranjan Bhattacharya & John Howard

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In this property market update, John Howard and I are covering the recession, interest rates, and the outlook for Buy to let investors and developers. We debate our predictions for what this means for property investors as property prices and rents continue to sore &

View Full Article: Property Market August Update With Ranjan Bhattacharya & John Howard

Should Landlords Capitalise On Sky-Rocketing Rental Demand?

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Whether or not landlords should capitalise on sky-rocketing rental demand is a political hot potato. There are polarised opinions even among the Private Rented Sector’s leading centre’s of influence.  For example …

Eddie Hooker, CEO of Hamilton Frazer (the owners of MyDeposits

View Full Article: Should Landlords Capitalise On Sky-Rocketing Rental Demand?

Property Redress Scheme donates cash to local food bank charity

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A charity running a food bank and relief centre in Hertfordshire has received a cheque for £2,500 from the Property Redress Scheme.

Two of the company’s seniors, Tim Frome and Sean Hooker, visited Gratitude’s offices in Borehamwood, not far from Hamilton Fraser’s HQ, to see the work its three trustees and 60 volunteers do to support a variety of vulnerable individuals including those in financial hardship.

The charity takes food that’s good to eat but can’t be sold in shops because of packaging errors or overproduction. It then redistributes this food to the community through various free meals projects, a community pantry and its network of local charities.

Two of the trustees, John and Sheila Carlisle, were on hand to receive the money.

Frome, who is Managing Director of the Property Redress Scheme (PRS), says: “We decided to use half of our annual donation to help a local charity this year.

“We are delighted to support the great work that Gratitude does in the Borehamwood community providing food, supplies and other support and guidance to those in need.

“Having met John and Sheila I was very impressed with how passionate they are about expanding the services locally and into other areas of the UK.”

Humbled

Hooker, who is Head of Redress at the PRS, says: “We are proud and humbled to help Gratitude with their work.

“Whilst they are a local charity, their vision and ethos, goes beyond being a foodbank and relief centre.“They want to build a community and a sense of cooperation and inclusion. Their ambition is to help those who use their service, for whatever reason and for however long they need it, to develop and find solutions to help work through their challenges.

“In the short term they want to expand their service to provide hot meals for those who need them and we are pleased our donation will help make this happen.”

There are over 2,500 food banks in the UK and latest data from the Trussell Trust indicates the number of emergency food parcels being distributed has jumped from a few thousand every year in 2008 to 2.6 million last year.

Approximately 2.5% of UK households rely on this kind of support at the moment.

To donate to Gratitude, visit the charity’s website.

Main pic: (LtoR): John Carlisle, Sheila Carlisle, Sean Hooker, Tim Frome.

View Full Article: Property Redress Scheme donates cash to local food bank charity

Current student bed shortage will rocket to 450,000 by 2025 – claim

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Rising numbers of students heading to university, coupled with a slowing supply of new student housing, means that by 2025, the UK will face a shortfall of around 450,000 student beds, research reveals.

According to the latest data from StuRents there is currently a shortage of 207,000 which will not only push rent prices up –

View Full Article: Current student bed shortage will rocket to 450,000 by 2025 – claim