NEW: Serial NW rogue landlord banned from PRS for three years

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A serial rogue landlord has become the first in the North West region to be served with a banning order after he failed to improve poor housing conditions in his unlicensed properties.

Wirral Council had previously prosecuted Frank Morrow from New Brighton on two separate occasions for failing to comply with improvement notices concerning poor conditions and failing to obtain selective licences for both his rental properties in Birkenhead Road, Seacombe (pictured).

In September 2021, he was fined more than £7,000 after being found guilty of failing to get the licences as well as failing to carry out safety checks and necessary repairs.

In 2020, Morrow was fined almost £4,000 after admitting six offences including failing to carry out gas and electricity checks, as well as not licensing the two properties.

Rogue database

After he was first prosecuted, Morrow was added to the national Rogue Landlord Database. A First Tier Property Tribunal has now ruled that the landlord cannot let or manage property for three years; if he breaches the banning order, he could face up to 51 weeks in jail and/or an unlimited fine, or a civil financial penalty of up to £30,000.

Councillor Tony Jones (pictured), chair of the economy regeneration & housing committee, says: “The majority of landlords in Wirral provide decent and safe homes for their tenants – however, a minority continue to exploit their tenants and let sub-standard housing.

“This case demonstrates that the council will take firm action against rogue landlords, and we will use all the powers available to stop criminal landlords from operating in Wirral.”

Read more about rogue landlords.

View Full Article: NEW: Serial NW rogue landlord banned from PRS for three years

Deadline looms for overseas landlords to register properties

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Overseas entities that bought UK property before 1st August 2022 must register with Companies House by 31st January or risk a fine and jail time.

The Economic Crime (Transparency and Enforcement) Act 2022 applies to offshore companies, partnerships and foundations which, according to Land Registry data, own 93,877 properties in England and Wales.

Individuals who want to protect their privacy often choose to hold UK property through an overseas company but keeping your name off Land Registry records comes at price, says accountancy and business advisory firm BDO, as they must now pay stamp duty of 17% when buying UK residential property.

Dawn Register (pictured), head of tax dispute resolution at BDO, says the government is conscious that a previous lack of transparency allowed those wanting to conceal their identify for other reasons – sometimes illicit ones – to invest in UK property.

“This is why part of the new registration process involves declaring the beneficial owners of the company to Companies House,” she explains.

Criminal offence

“Failure to register is a criminal offence, and the officers of the entity could face a fine and up to two years in jail – or five years in some extreme cases – if they do not comply.

“Similarly, failure of beneficial owners to supply information can also be a criminal offence under UK law so it’s important that affected parties take urgent action to comply.”

The register will be publicly available and HMRC is likely to take a keen interest in the companies and individuals that appear, possibly questioning them about the source of funds to purchase property.  

Overseas landlords will be taxable on UK rental income and HMRC will also want to check whether any Annual Tax on Enveloped Dwellings is due; this is generally payable on residential property with a value of more than £500,000.

Read the complete tax guide for landlords.

View Full Article: Deadline looms for overseas landlords to register properties

Early Repayment Penalty against CGT?

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Hello helpful peeps. I am wondering if a Lender’s Early Repayment Penalty can be used as a Capital Cost and offset against CGT?

Many Thanks.

Helen

Hi Helen, My colleague Alex Norian who is an accountant and a Property118 tax consultant has very helpfully provided a Loom video to answer your question

In summary

View Full Article: Early Repayment Penalty against CGT?

Petition for tax relief reinstatement – Government says ‘No’

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A bid by a landlord to get the Government to reinstate tax relief allowing mortgage interest to be set against rental income has been shot down after the petition reached 28,000 signatures.

Simon Foster started the petition on the Government website to reinstate the full amount of mortgage interest against rental income before tax is calculated.

View Full Article: Petition for tax relief reinstatement – Government says ‘No’

BREAKING: Scots government U-turns on rent freeze after ‘listening to landlords’

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The Scottish government has ‘seen sense’ and converted its controversial rent freeze announced last September into a ‘rent cap’, limiting rent rises in the private sector to 6% from April 1^st this year.

This decision was announced by housing minister Patrick Harvie (main picture), who it is claimed has listened to the concerns of landlords and letting agents in Scotland.

Only a week ago leading figure Jim Parker wrote exclusively for LandlordZONE, warning that the measures, along with the recent increase in stamp duty for buy-to-let purposes, had “all got too much for the private investor who has consistently propped up and supported the rental sector for the last 20 years” and that many were leaving.

David Alexander, CEO of DJ Alexander Scotland Ltd, says: “Given the level of feeling from landlords, property investors, the build to rent sector, universities, the farming community, and others that the rent freeze was damaging the sector and reducing the availability of homes for tenants it is appropriate that the Scottish Government has seen sense and adopted a more conciliatory approach. To do anything else would have simply exacerbated the current housing shortages.”

Knee-jerk

Oli Sherlock (picutred), Director of Insurance at Goodlord, adds: “A rent freeze is a knee-jerk reaction which, although it might help some tenants in the short run, is unsustainable and has the long-term impact of pushing more landlords out the market and squeezing the availability of rental homes.

“A price cap is a more sensible step forward than a freeze, but it’s still not addressing the key issues facing the market today.

“We have an economic and regulatory environment that is driving landlords away from the sector and not enough homes to go around.”

Pic credit: Patrick Harvie/Twitter

View Full Article: BREAKING: Scots government U-turns on rent freeze after ‘listening to landlords’

Scottish government U-turns on rent freeze after ‘listening to landlords’

admin    Uncategorized     agents

The Scottish government has ‘seen sense’ and converted its controversial rent freeze announced last September into a ‘rent cap’, limiting rent rises in the private sector to 6% from April 1^st this year.

This decision was announced by housing minister Patrick Harvie (main picture), who it is claimed has listened to the concerns of landlords and letting agents in Scotland.

Only a week ago leading figure Jim Parker wrote exclusively for LandlordZONE, warning that the measures, along with the recent increase in stamp duty for buy-to-let purposes, had “all got too much for the private investor who has consistently propped up and supported the rental sector for the last 20 years” and that many were leaving.

David Alexander, CEO of DJ Alexander Scotland Ltd, says: “Given the level of feeling from landlords, property investors, the build to rent sector, universities, the farming community, and others that the rent freeze was damaging the sector and reducing the availability of homes for tenants it is appropriate that the Scottish Government has seen sense and adopted a more conciliatory approach. To do anything else would have simply exacerbated the current housing shortages.”

Knee-jerk

Oli Sherlock (picutred), Director of Insurance at Goodlord, adds: “A rent freeze is a knee-jerk reaction which, although it might help some tenants in the short run, is unsustainable and has the long-term impact of pushing more landlords out the market and squeezing the availability of rental homes.

“A price cap is a more sensible step forward than a freeze, but it’s still not addressing the key issues facing the market today.

“We have an economic and regulatory environment that is driving landlords away from the sector and not enough homes to go around.”

Pic credit: Patrick Harvie/Twitter

View Full Article: Scottish government U-turns on rent freeze after ‘listening to landlords’

Where is the landlords’ voice?

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Hi all, I have been listening to many reports on the news and most recently a representative of Shelter on Rip Off Britain.

Whilst I fully agree some properties are in a bad state of disrepair and mould

View Full Article: Where is the landlords’ voice?