Plans to force HMO operators to pass on £400 bills rebate ‘demonise landlords’

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Landlords have slammed the Government’s new plans to force HMO landlords who operate ‘all inclusive’ rental properties to pass on the £400 rebate being made available via the Energy Bills Support Scheme (EBSS).

This announcement is an abrupt U-turn – previously Ministers had told parliament such landlords would only be ‘encouraged’ to pass on any energy bill support cash to their tenants.

And only yesterday this was reiterated by climate minister Graham Stewart in answer to a question from MP Peter Kyle.
Now, the BBC has reported that ministers are to modify existing or planned legislation to force landlords to pass on the EBSS rebate.

“It’s not fair for struggling renters to be left at the mercy of their landlords for this much-needed help when so many are having to count every penny this autumn,” says Shelter chief executive Polly Neate.

Chris Norris, Policy Director for the National Residential Landlords Association, says: “Given payments under the support scheme have not begun to be made, the Government’s plans to legislate are premature and are demonising landlords unnecessarily. 

“It sends a dangerous and misleading message that landlords cannot be trusted to do the right thing, creating needless fear and anxiety for tenants.

“The reality is that one-off pots of money like this cannot compensate for the fact that the benefits system is systematically failing to protect the most vulnerable tenants.

“At a time when households finances are being squeezed it makes no sense to have frozen housing benefit rates.”

View Full Article: Plans to force HMO operators to pass on £400 bills rebate ‘demonise landlords’

LATEST: Truss ‘sympathetic’ to calls to re-instate mortgage interest tax relief

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Landlords have been offered a glimmer of hope by the new Prime Minister who’s hinted that she’s not adverse to considering the repeal of Section 24.

NRLA boss Ben Beadle met Liz Truss at a recent hustings event in his Ruislip constituency where he was surprised at her stance towards the PRS.

Speaking on Property Tribes’ Landlord Lens, he says she told him that she thought landlords had been given a hard time by the previous administration and that the last four or five years had been “very, very tough”.

“She was essentially saying that she wanted to have an environment that was encouraging towards property owners so that they would bring their properties to the market,” reports Beadle.

“This could mean a whole range of different things, but to me I think there’s a huge opportunity here for the removal of Section 24 and all of the benefits that can bring to tenants in terms of reducing costs to landlords and therefore reducing rents.”

Effusive

While Beadle acknowledges that at a hustings event, “she’ll say anything to anybody”, he reckons she didn’t have to be quite so effusive.

He’s now hoping that he can convince more of her colleagues during the upcoming Conservative Party Conference where he will be speaking on a panel about landlord relationships and issues.

“We’ve had several years of punishing regimes – we’ve got rents at a record high, fewer homes and landlords exiting the sector – but the messages are cutting through,” adds Beadle.

View Full Article: LATEST: Truss ‘sympathetic’ to calls to re-instate mortgage interest tax relief

Does your Buy to Let beat inflation?

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As inflation continues to rise at the fastest rate in over 40 years, it’s becoming increasingly difficult to find business and investment opportunities that can withstand the difficult economic landscape.

In property, there have certainly been many positives coming out of the last 12 months for landlords

View Full Article: Does your Buy to Let beat inflation?

Agents report ‘desperate’ conditions as consequences of Scots rent freeze kick in

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Leading UK-wide estate agency the Belvoir Group has reported ‘desperate’ conditions within the Scottish private rented sector following the country’s decision to implement a rent freeze and evictions moratorium.

The company says the situation is rapidly worsening leaving thousands of tenants in a perilous situation as accommodation becomes more and more difficult to secure.

Reports from its Edinburgh and Dundee operations reveal extraordinary scenes of 1,000 people bidding for properties as demand outstrips supply but more and more landlords remove properties from the market.

Scotland has taken the most radical approach to managing its housing market since Labour and the Greens went into coalition, with Patrick Harvie, a Green MSP, being named as ‘minister for tenants’ rights’.

The consequences of this, including the recently announced rent freeze and evictions moratorium into next year, are now being felt.

“The current situation is incredibly difficult for tenants, and many of those looking to secure a rental property are feeling extremely frustrated and often left disappointed,” says Andrew Jack from Belvoir Edinburgh (pictured, below).

Unprecedented

“As an example, we have received over 9000 tenant enquiries in the past four weeks, which is unprecedented.

“We recently released two flats to the market, and within 48 hours had received over 1,000 enquiries for each of them from potential tenants. “Not only is it logistically difficult to process 2000 enquiries, but clearly, we were only able to offer these flats to two tenants, leaving 1998 perfectly good potential tenants still looking to find somewhere to live.

Ron Campbell, the Dundee boss of its Northwood chain, says: “The challenges facing tenants have never been as bad as they are at present.

“Demand is completely outstripping supply, and it is emotionally draining for my team members to continually deliver bad news to those people who come into our offices day in and day out looking for somewhere to live.”

Campbell says that at his office,  for every property that comes onto his books his branch has “probably lost four properties from existing stock, as landlords who have been with us for many years are now feeling pushed into exiting the market”,” he adds.

“Although we are doing our best to encourage sales to new and existing landlords, many investors who are worried by rental controls, including the moratorium on evictions that was recently announced, are feeling nervous.

Read more: What is a rent repayment plan?

View Full Article: Agents report ‘desperate’ conditions as consequences of Scots rent freeze kick in

Chancellor Kwarteng hints at Stamp Duty cut in radical bid to boost growth

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Speaking in New York, Liz Truss says she’s willing to take radical and unpopular decisions to boost the UK economy in an attempt to head off an impending recession.

The prime minister confirmed the reversal of the national insurance tax hike to be officially announced by the Chancellor in Friday’s mini budget. In addition, Mr Kwarteng plans to cancel a planned corporation tax rise and has hinted at a stamp duty cut.

Former Chancellor Rishi Sunak planned to increase corporation tax, from 19 per cent to 25 per cent, from April 2023. Truss and her chancellor argue that cancelling the planned rise will boost business investment in the UK and help drive economic growth towards their target increase of 2.5 per cent of GDP each year.

It was reported by The Times newspaper that Chancellor Kwarteng is also planning a cut in stamp duty. In what would be a surprise move to boost the property industry and with it the economy as a whole, confirmation is awaited on Friday. Downing Street refused to comment said the newspaper.

Speaking from the Empire State Building, with a large vista of the famous city in the background, Ms Truss confirmed that she is willing to make some radical and unpopular decisions if they are likely to result in a boost to the UK economy. At this time of rising energy costs and huge government subsidies being applied to protect homes and businesses these measures are a brave move.

The reversal of the 1.25 per cent National Insurance Contribution (NICS) rise in April, originally targetted to fund the NHS and adult social care, will immediately put money back into the pockets of wage earners.

Scrapping the bankers’ bonus cap, designed to attract more talent into the City of London, is an unpopular decision in some quarters, but aimed at boosting the City, one of the biggest revenue earners for the country, and seen as a priority for growth – one worth taking flak for?

Truss has said:

“If we put up taxes, if we have arbitrary taxes on energy companies, if we have high corporation tax, we’re not going to get that investment and growth.

“In order to get that economic growth, Britain has to be competitive. If we put up taxes, if we have arbitrary taxes on energy companies, if we have high corporation tax, we’re not going to get that investment and growth.

“What we know is people on higher incomes generally pay more tax so when you reduce taxes there is often a disproportionate benefit because those people are paying more taxes in the first place.

“We should be setting our tax policy on the basis of what is going to help our country become successful. What is going to deliver that economy that benefits everybody in our country. What I don’t accept is the idea that tax cuts for business don’t help people in general,” she said.

Stamp duty land tax is a tax you pay on all property purchases.

In July 2020, the Government cut stamp duty to boost the property industry and help buyers during Covid. Until 31 March 2021 home purchases didn’t attract stamp duty on the first £500,000 of a purchase price. This was a big saving of up to £15,000 for those who were buying at the time. The stamp duty holiday was later extended until 30 June, and finally again until 30 September.

During Covid in this later period home buyers didn’t have to pay stamp duty on the first £250,000.

From 1 October 2021, rates return to pre-Covid levels. That means the point you start paying stamp duty will be £125,001:

– £0-£125,000 = 0%

– £125,001-£250,000 = 2%

– £250,001-£925,000 = 5%

– £925,001-£1,500,000 = 10%

– £1,500,001+ = 12%

There is a higher rate surcharge of 3 per cent for the purchase of any property which is addition to your main home. You’ll usually have to pay 3% on top of these stamp duty rates if you are buying a second home or buy-to-let.

The government’s Stamp Duty Land Tax (SDLT) calculator will tell you how much tax you pay on a property purchase.

View Full Article: Chancellor Kwarteng hints at Stamp Duty cut in radical bid to boost growth

A landlords welcome guide for new tenants

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Giving your tenants a welcome pack will set expectations & ground rules early and could save you a lot of time and money during the tenancy period. You can guarantee that not every tenant is going to understand what their responsibilities are straight off the bat.

View Full Article: A landlords welcome guide for new tenants

What are fair cancellation terms in Letting Agency contract?

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Dear All, I currently have 3 HMO’s managed by a letting agent who I have been with for nearly 11 years. The owner of the business has sold the company to another local agent. I was notified in writing this past Saturday (The current owner did call me the week before).

View Full Article: What are fair cancellation terms in Letting Agency contract?

Transferring property back to myself?

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Hello, Can you please advise the best way to transfer my flat back to me now?

In 2005 I bought my first one-bedroom flat for £265,00.00 getting a mortgage of £238,075.00

2007 I got married and bought a new 2-bedroom apartment with my husband for £440,000.00.

View Full Article: Transferring property back to myself?

Private rents are ‘stubbornly high’ as homes get smaller

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Rents as a share of income have remained stubbornly high while the average floor space per private renter in England has fallen by 16% over the past 20 years, research reveals.

According to Resolution Foundation research, the lost floor space equates to a city the size of Nottingham.

View Full Article: Private rents are ‘stubbornly high’ as homes get smaller