The Property Investment Strategies To Focus On In A Recession

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The property investment strategies to focus on in a recession presented by Ranjan Bhattacharya at the Baker Street Property Meet.

We’re in for the worst recession the UK has seen, so don’t waste your time and money on property strategies that won’t work in the near future.

View Full Article: The Property Investment Strategies To Focus On In A Recession

HM Treasury’s Debt Repayment Plans a ‘threat to landlords’ say experts

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Landlords face a new challenge next year when the Government introduces its Statutory Debt Repayment Plan scheme, experts have warned.

During Covid HM Treasury introduces a ‘breathing space’ scheme to give those in serious debt up to 60 days before legal action began, including rent arrears.

Now, following a consultation that ended last week, HM Treasury expects to bring in Statutory Debt Repayment Plans.

These would enable a certified debt advisor to develop a repayment plan that would provide reassurances that debts would be paid, in return for legal protections for the debtor.

But the contentious issue for landlords will be whether the plans will include rent arrears.

While ‘breathing space’ arrangements automatically included qualifying debt including rent arrears, debtors can choose to exclude or include them within their SDRP.

Tenancy renewals

This is because, HM Treasury says, “the likely longer period over which rent arrears will be paid in the plan could lead to a landlord not renewing an individual’s tenancy”.

Nevertheless, trade association Propertymark is worried rent arrears will be rolled into SDRPs, counselling HM Treasury that they should only be included as a ‘last resort’.

Proprtymark is worried that landlords could fall into mortgage arrears if they were unable to take possession proceedings in respect of arrears included in a plan.

“The development of a SDRP should be made in conversation with the tenant, agent, landlord and debt advisor,” it says.

“This would ensure the frequency and amount of payment is in the best interests of all parties involved.”

Timothy Douglas (pictured), its Head of Policy and Campaigns, adds: “During these difficult times, it is essential that we find ways to support tenants who temporarily cannot afford to pay off debts including rent while ensuring the solutions cannot be abused by those who have no intention of paying.”

Read the consultation in full.

View Full Article: HM Treasury’s Debt Repayment Plans a ‘threat to landlords’ say experts

I’m selling my rental property – but tenants are struggling to find a home

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Hello everyone, We’ve had a great tenant for over a decade – single mum with 2 boys.

She has an IVA (Individual Voluntary Arrangement) but has never missed a rent payment and is no trouble at all.

We are having to sell this property in Sussex and she simply cannot find a new rental.

View Full Article: I’m selling my rental property – but tenants are struggling to find a home

Acorn campaign group reveals 44% of local HMOs not licensed by council

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Renters’ union Acorn has inadvertently highlighted the unfairness of landlords paying for licence fees when poor enforcement means many rogue landlords simply refuse to do so, happily dodging the high fees and paperwork.

Its Cambridge outpost says the problem of unlicenced HMOs leaves renters vulnerable and is now campaigning for the authority to take action on the issue of unlicensed HMOs, which it has discovered was well known within the council.

Acorn has started a petition and is demanding that the council commits to having at least two full-time staff to work on the issue of HMOs, publishes a timeline to achieve full licensing, and works to get all HMOs in Cambridge licensed.

A spokesman told CambridgeshireLive: “When we found out that the council was aware that there were more than 600 unlicensed HMOs in Cambridge city, we wondered why that number was so high.

“We believe that everyone deserves a safe home to live in and it’s local authorities’ responsibility to ensure that everyone’s got that safe home.”

Inspections

The council says the total number of licensed HMOs in the city now stands at 808. A spokesman explains: “We estimate there may be a further 640 licensable properties and will continue our work, including proactive inspection, to confirm that those properties are safe and suitable and whether they need to be licensed as an HMO.”

The Mandatory scheme began in 2018.

He adds: “We eagerly await the introduction of the government’s proposed rental property portal, which will enable us to more easily identify licensable HMOs and crackdown further on criminal landlords.”

Cambridge’s figure does not seem particularly high when compared to other areas of the UK; Birmingham Council recently revealed that the city could have 8,000 HMOs without a licence.

Read more about Cambridge HMOs.

View Full Article: Acorn campaign group reveals 44% of local HMOs not licensed by council

Build to Rent is the REAL key to rental reform says portal boss

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A summer of government chaos has led to several questions being left unanswered, particularly for the property industry.

When Michael Gove unveiled the Levelling Up White Paper, setting out a plan to transform the UK by “spreading opportunity and prosperity” to all parts of it, it was made clear that the rental market must reform. 

Experts believe that had Gove remained, his focus would have turned to the Build to Rent (BTR) sector and the benefits that it offered.

This would have included a spotlight on the role of institutional investment or professionally managed renting, and how this could form central pillars of the rental reform White Paper and the need for more high-quality rental homes. 

Dedicated Minister

Love to Rent, the first and only digital marketing platform for BTR, has been calling for some time for a dedicated Minister for Renting to address some of the problems in the private rented sector.

The industry at large believes a dedicated minister is needed to support the households which are private rentals and to encourage and play a part in the growing BTR sector, which can improve the lives of millions in the future.

Michael Gove has been vocal about the need for reform in the rental sector and has highlighted areas of improvement such as the need for more quality rental homes, better customer service, more responsible landlords and to lessen the environmental impact.

These are the same objectives that are core to the Build to Rent sector and which are carried out with each new development.

Read more: What does BTR mean for BTL?

It is our hope that the new housing minister, Greg Clark, will ensure that the thousands of people renting will get the protection they deserve.” 

It is not just Gove who recognised this need for change. Surging demand has led to local authorities favouring the Build to Rent sector with many creating their own Build to Rent planning policy to speed up delivery. 

Anne-Marie Brown, the Founder and CEO of Love to Rent

View Full Article: Build to Rent is the REAL key to rental reform says portal boss

What can a tenant’s deposit be used for?

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Hello everyone, I have had a housing benefit tenant, with the rent paid by Universal Credit, since April 2021 and the tenancy ends on 31 October 2022.

The rent for April and May was paid on time by Southwark council but I was only notified by the tenant at the end of June 2022 that the UC rent payment is in arrears

View Full Article: What can a tenant’s deposit be used for?

Do landlords need guarantors for all tenants?

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Hello everyone, In these difficult economic times, firms are regularly going bust and creating financial problems for their employees, and the SE (self employed) are just as vulnerable.

Would it not make sense to have guarantors for all tenants?

View Full Article: Do landlords need guarantors for all tenants?

Unacceptable tenants – do I need to supply a reference?

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Hello everyone, We had tenants for 4 years living in our 5 bed house next door.

We got on very well and we were quite relaxed with them.

Over time however, I came to realise that they were moving in more rodents in cages into bedrooms.

View Full Article: Unacceptable tenants – do I need to supply a reference?

Shelter’s warning after landlord repossessions rise

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The number of landlord possession actions in England for all court stages has increased compared to the same quarter of last year, the Ministry of Justice has revealed.

In the latest data, they have compared April to June of this year

View Full Article: Shelter’s warning after landlord repossessions rise

Where UK property investors are bulk buying to boost their portfolios

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British investors are spending an average of £1.2 million to quickly bolster their property investments by buying full portfolios rather than single properties, research reveals.

According to specialist property lending experts, Octane Capital, the North East is currently providing the best value for money.

View Full Article: Where UK property investors are bulk buying to boost their portfolios