Minister told looming tenancy reform will reduce student housing supply

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The government has been urged to exempt all student housing from its plans for open-ended tenancies or risk making it harder for students to enter higher education.

Groups representing universities and student accommodation providers – along with the NRLA – have written to Housing Minister Felicity Buchan (pictured) explaining that a shortage of this accommodation has already led some academic institutions to call for a limit to be placed on student intakes for as long as the next five years.

It warns: “The proposed introduction of open-ended tenancies and inevitable reduction in housing supply is therefore likely to further constrain the expansion of the education sector, to the detriment of prospective students and wider society.”

The government’s White Paper on rental reform proposes that all student housing, except for purpose-built blocks, would be subject to open-ended tenancies, meaning landlords would be unable to guarantee that accommodation will be available for the start of each academic year, unless sitting tenants have handed in their notice to leave. As a result, students couldn’t plan where they want to live and with whom.

Disadvantaged

“Reduced supply and rising costs in the private rented sector are increasingly likely to preclude economically disadvantaged students from living on or near campus,” add the groups.

They argue that where a landlord rents their property to a group of students, a fixed term tenancy agreement should be permissible, and call for measures to allow student landlords to give two months’ notice to repossess a property when it is needed for incoming students.

To provide these students protection, they suggest that such notice should only be given during the final two months of a tenancy agreement.

Read more about the campaign to persuade ministers of rental reforms and the student sector.

View Full Article: Minister told looming tenancy reform will reduce student housing supply

Daily Telegraph wants to talk to landlords who have recently sold new build properties

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Are you a landlord who has recently sold new build properties for less than what they paid? Then, Alexa Phillips, the personal finance reporter for the Telegraph would like to speak with you.

Alexa would like to know:

When did you buy the property?

View Full Article: Daily Telegraph wants to talk to landlords who have recently sold new build properties

Landlords are taking action as tax bills and refurb costs rise above rent yields

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The festive period is over, and as we head towards the second month of 2023, the year has well and truly begun. For many landlords, 2022 was a mixture of tough decisions, calls to action, and the realisation of a potentially rocky road ahead.

View Full Article: Landlords are taking action as tax bills and refurb costs rise above rent yields

NEW: Activists urge landlords and agents to stop property ‘bidding wars’

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Tenants’ union Acorn has pledged to continue targeting letting agents in the city until they stop encouraging ‘bidding wars’ to help landlords achieve higher rents.

Members launched a noisy protest outside a number of branches; some agents which had started talks with Acorn about signing the pledge were left alone, but others were visited by Acorn reps who said they would follow up requests and repeat the protest until the agencies agreed to end the practice.

“We’re trying to stop letting agents pitting tenants against each other to force up the price of rents, driving loads of people out of the city, out of their homes that they’ve been in for years, and breaking apart communities, and this is something that is going on all the time – it’s affecting loads of our members,” Acorn organiser Ewan Maclennan (pictured) told the Bristol Post.

He explained that agents sometimes encouraged people to bid £50 or £100 higher to increase their chances of securing a property or gave out a formalised offer form to tenants.

“It’s almost part of the formal process for a lot of these letting agents,” added Maclennan.

Council motion

Earlier this month, Bristol City Council acknowledged the prevalence of bidding wars and their negative effect for renters, particularly low-income households.

It passed a motion backing calls for new rent controls in Bristol and promised to publish an annual living rent index, showing what affordable rents would look like in the city. A publicly accessible list will also show all enforcement notices issued to landlords while a new regular renters’ forum would engage with private tenants.

Read more about Bristol.

View Full Article: NEW: Activists urge landlords and agents to stop property ‘bidding wars’

Where are the most affordable places to rent?

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The current turmoil in the rental market shows no signs of slowing down with UK rents in the fourth quarter of 2022 hitting an all-time high, increasing 13% year-on-year, according to a new survey.

The flatshare site, SpareRoom

View Full Article: Where are the most affordable places to rent?

Shamplina webinar reveals biggest issues vexing landlords right now

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The most pressing questions on LandlordZONE readers’ minds were revealed during a recent webinar hosted by Chief Commercial Officer of the HFIS group, Paul Shamplina (main pic).

He joined forces with industry figure David Coughlin (main pic, inset) to help landlords identify the key steps to achieve the highest profits from their portfolios this year, but the pair were also inundated with questions from those watching.

Coughlin is the co-founder of the National Association of Property Buyers and director/founder of both National Residential and the Landlord Sales Agency.

This included the tricks of the trade when looking for the best mortgage particularly for first-time landlords; the practicalities of incorporating an existing property portfolio; the best heating systems for rented homes during the current energy price hike crisis; how to manage tenants who are struggling to pay their rent and what constitutes a ‘fair’ rent increase.

Shamplina and Coughlin were asked nearly 40 questions on these subjects both during and after the webinar, which was watched by hundreds of landlords.

One of the most frequent issues vexing landlords, the webinar revealed, is whether to operate existing or newly-purchased properties via a limited company umbrella. It’s a strategy that, although more time-consuming than personal ownership, is becoming more popular as a way to reduce a landlord’s tax bill and overall improve profitability. Learn more on limited company ownership of property and find out the pros and cons.

Check out the answers to some of your questions below:

Q: How would a first time buyer go about getting a buy to let mortgage? Are their any specialist mortgage providers?

A: Usually you would need a residential property mortgage before applying for a buy to let mortgage as lenders would like to see experience. Or you can buy your first property as residential and convert it to buy to let which is a good strategy for beginners

Q: What is your advice on increasing rent in the current climate? What would a fair increase percentage be?

A: You need to consider the market rent versus what they are paying. Advise your tenants what this is and that you need to agree on a rent increase closer to market rent for long term financial stability for yourself and their tenancy. Communicate and make it clear that with interest rates rising and future repair costs you cannot afford to run at a loss. Work with your tenants to come to an agreement and even offer to stagger the increase

Q: When incorporating properties how much stamp and capital gains tax needs to be paid?

A: This depends on whether you have commercial property in your portfolio and if you are running your rental portfolio as a partnership. You can pay 0% CGT if incorporating a partnership or pay 1% if it is a mixed residential-commercial portfolio. Alternatively, you may have to pay the full prevailing stamp that would apply

Q: Is it worth transferring a buy to let property into a company (that I own as a sole trader) for tax purposes?

A: For one property maybe not as the tax-costs benefits may be negligible. Incorporating is an expensive and complex business and the cheapest and simplest way for you would be purchasing from yourself in an SPV.  If you are intending to purchase more properties then it is advisable to set up an SPV for future purposes and maybe in time you can transfer this property

Q: As a basic rate tax payer with one HMO property in my name is it worth moving to limited company ownership? What might be the costs involved?

A: Firstly, add the rental income to your salary and if you stay in the basic rate bracket then there is nothing further to do. If you are pushed into a higher rate then consider purchasing the property from yourself in the limited company and benefit from the tax efficiency. It is worth considering you might also be able to increase your pension contributions to reduce salary and keep in line with the basic rate

Watch the webinar for free in full here.

View Full Article: Shamplina webinar reveals biggest issues vexing landlords right now

Disabled Tenant In DESPERATE Need of Good Advice

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I consider my landlord to be a perfect Gentleman and have been renting the same property for nearly 17 years without any issues whatsoever. That was until I received the letter below from him a few days ago. I don’t know how to respond or what my options are.

View Full Article: Disabled Tenant In DESPERATE Need of Good Advice

Revealed: The UK’s best buy-to-let areas

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Landlord insurance provider Simply Business has researched the buy-to-let areas that are most popular with landlords.

It says that London is still the best city for buy-to-let landlords for the second year running.

The firm says that more than 39,000 BTL insurance policies have been taken out in the capital.

View Full Article: Revealed: The UK’s best buy-to-let areas