Unfair UK Taxation of privately owned rental PROPERTY businesses

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I’ve written this post in response to an article that appeared in The Guardian entitled “Landlords accused of ‘making up stories’ in drive to change UK tax rules”.

What a load of tosh that article was!

View Full Article: Unfair UK Taxation of privately owned rental PROPERTY businesses

Council slammed after being found to break same safety rules as landlord it fined

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Haringey Council has been hauled up for not completing fire and electrical checks at thousands of its properties, despite handing a private landlord £2,500 for the same failing.

The Regulator of Social Housing found the authority had breached parts 1.1 and 1.2 of the Home Standard, resulting in the potential for “serious detriment” to tenants.

It also found that 30% of Haringey’s properties did not meet the Decent Homes Standard and identified more than 100 Category One hazards.

Failure

Haringey had referred itself to the regulator in January, acknowledging a failure to meet statutory health and safety requirements in some of its homes.

A review found that many blocks did not have a current Fire Risk Assessment and a very large number of fire remedial actions were overdue.

More than 4,000 of these overdue actions were high risk, with half overdue for more than 12 months. Many blocks were without a communal Electrical Installation Condition Report and Haringey was unable to confirm that about 4,000 properties had had a domestic EICR completed within the last 10 years.

However, in January, a Haringey landlord failed in his attempt to have a £2,500 fine thrown out by a First Tier Property Tribunal after being fined by the council’s private sector housing team for letting an unlicensed three-storey HMO in Hornsey Park Road.

Inspectors ruled that the property also posed a high risk to the tenants because it didn’t have adequate fire protection or a detection system.

The council says it has started to put in place an urgent programme to rectify all failures.

View Full Article: Council slammed after being found to break same safety rules as landlord it fined

‘Landlords must be offered interest-free loans or grants for EPC upgrades’

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Estate agents have told politicians that Government-backed interest-free loans or grants to cover the cost of looming EPC upgrades are the only way many landlords will be able to fund the work.

The comments have been made by industry association Propertymark to an influential committee of MPs at the Welsh Sennedd as part of its inquiry into how to decarbonise the private rented sector.

Landlords in Wales and England are still waiting to hear how the changes to the Minimum Energy Efficiency Standards (MEES) regulations, which will bring in tougher EPC rules in a few years, will be implemented and funded.

The UK Government consulted on a proposal for all new tenancies to meet an Energy Performance Certificate rating of C from 1 April 2025 and existing tenancies by 1 April 2028 as part of MEES.

Also, and most controversially, it will include a higher cost cap of £10,000 which would hit Welsh properties the hardest, with the country’s properties having some of the lowest property values in the UK coupled with low energy efficiency ratings.

Loans or grants

To solve this problem, which is faced by other areas of the UK too, Propertymark has recommended that the Development Bank of Wales could offer grants or interest free loans to landlords to help them decarbonise and to finance retrofit.

It also suggested that landlords buying properties in need of significant work should pay a lower stamp duty.
The industry body also called for a clear strategy to support landlords contribute towards Net Zero as current targets for different tenures was causing confusion across the sector. 

“We’re really pleased to see that our proposals such as the availability of interest free grants for landlords, requests for an agreed timetable and milestones for the sector, the production and inclusion of a clear decarbonisation strategy, alongside calls for the Minister to provide clarity on how she will raise awareness have all been recommended to the Welsh Government,” says Timothy Douglas (pictured), Head of Policy and Campaigns at Propertymark.

“We now urge the Welsh Government to act upon these recommendations and work with the UK Government to introduce policies that allow landlords and homeowners to decarbonise their homes and properties in Wales.”

Propertymark recently predicted that some 40% of properties in England and Wales would not be upgraded to a ‘C’ EPC certificate in time without help.

View Full Article: ‘Landlords must be offered interest-free loans or grants for EPC upgrades’

Top Cities for Property Investment in Asia

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Introduction

When setting your sights on investing in property in Asia, it can be a bit overwhelming when you look at the number of cities around the world that are available. Many factors go into determining which city is right for you, but we’ve done our best to lay out some of the most important ones below:

Singapore

Singapore is a great place to invest in property. It’s a safe, stable, and developed country with a strong economy which makes it an ideal location for investors looking for high yields on their investments.

The country has a unique mix of old and new architecture, which adds to its charm as well as making it popular among tourists from all over the world. The property market here is also very stable, with good returns on investment, so you can rest assured that your hard-earned money won’t be wasted when investing here.

District 15, located on the East Coast of Singapore, is a popular real estate investment location due to its prime location, an abundance of amenities, and high quality of life. The district boasts beautiful beaches, park connectors, and a vibrant food scene, making it an attractive option for locals and expats. It is also conveniently situated near Changi Airport and the Central Business District, making it a sought-after location for professionals. Additionally, numerous reputable schools are in the area, making it an ideal choice for families. With its mix of urban and natural features, convenient location, and quality of life, it’s no surprise that District 15 is a hot spot for real estate investment in Singapore. There are 2 upcoming new condominium launches in Singapore in Singapore District 15, Grand Dunman and The Continuum which aspiring property investors should consider checking them out.

Grand Dunman is set to offer residents luxurious living in the heart of District 15. The development is designed for modern urban living with many amenities, such as a swimming pool, gym, and sky garden. With excellent transport links and proximity to top schools and retail destinations, Grand Dunman is set to be a highly sought-after development in Singapore’s competitive real estate market.

The Continuum, an upcoming luxury condominium in Singapore, promises to deliver a sophisticated living experience. The development is located in the Katong neighbourhood and offers unrivalled convenience with easy access to Orchard Road and the CBD. With stunning views, lush landscaping, and world-class amenities, The Continuum is set to redefine luxury living in Singapore.

Kuala Lumpur

Kuala Lumpur, the capital of Malaysia, is known to be one of the most developed cities in Asia. The city has experienced rapid growth over the past few years, resulting in a surge in property prices. This trend is expected to continue as Kuala Lumpur continues to attract foreign investors who are looking for good value-for-money properties and excellent returns on their investments.

The Malaysian government has also been promoting urban development projects such as highway upgrades, residential developments, and commercial projects to boost economic growth further still by attracting more businesses into Malaysia’s capital city.

Tokyo

Tokyo is the most expensive city in Asia and one of the most expensive cities in the world. It’s also home to over 13 million people and one of the largest metropolitan areas on Earth. Tokyo has been an important center of finance since at least 1868, when Japan began trading on international markets under its own name instead of through intermediaries like Korea or China.

Today, Tokyo remains a major financial center with many international companies headquartered there, including Sony Corporation (NYSE: SNE), Toyota Motor Corporation (NYSE: TM), Honda Motor Co Ltd (NYSE: HMC), and Panasonic Corporation (TYO: 6752).

Hong Kong

Hong Kong is widely known to be a densely populated city in the world. It’s also one of the richest, contributing to its status as an attractive place to invest. The city’s property market continues its upward trend, with prices rising consistently since 2009.

The average price per square foot ($psf) has gone up by more than 20%, from $1,483 in 2016 to $1,722 last year, according to figures from JLL’s Asia Pacific Investment Review 2022 report released recently.

Shanghai

Shanghai, the most populous city in China, is also a global financial center and a major port city. It’s famous for being one of the hotbeds of real estate development in Asia.

With its population expected to surpass 25 million by 2050, Shanghai has been growing at an exponential rate over recent years, and it will continue to do so as more people move into the city from rural areas. This means more demand for housing and commercial properties; it also means opportunities for investors who can buy property now before prices go up even more.

What kind of property do you want to buy?

There are many different methods when it comes to investing in real estate. You can buy a rental property, which means you’re renting out your home to tenants. Or you could flip (buy and sell) houses for a profit. There are also condos, townhomes, and even mobile homes that can be purchased as investments. The choice is yours!

The number of investable funds that you want to spend will determine what kind of investment property best suits your needs and lifestyle preferences. If the idea of living in one location isn’t appealing, but you still want steady income from monthly rents on multiple properties, then this might be perfect for you.

Find a good value for your investment dollar.

Location is an important factor when choosing an investment property. The location of the property will determine how much rent you can expect to receive, how much time and money you’ll need to spend on repairs, and whether or not renters will be interested in living there.

Consider the neighbourhood around your potential investment home and how it’s been improving over the last few years. If a neighbourhood has been steadily improving, this may indicate that demand for housing in that area is increasing–and therefore, more people will be willing to pay higher rents for apartments there (or buy houses).

Takeaway:

You can find the best cities for property investment in Asia by looking at the following list:

• Singapore
• Kuala Lumpur, Malaysia
• Tokyo, Japan (third-best)

Conclusion

We hope that this list has given you some ideas of where to invest in Asia. The cities we have listed are all great places to start your property investment journey, but there are many others out there too. It’s important to do some research before choosing which city is right for your needs!

View Full Article: Top Cities for Property Investment in Asia

Tenant deceased – permitted occupier not paying rent?

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Hello, I have recently been notified that the tenant on the agreement has passed away following no rental payments. His son (who is over the age of 21) was a permitted occupier, is refusing to agree a new tenancy and is not paying rent.

View Full Article: Tenant deceased – permitted occupier not paying rent?

S21 notice/Rent arrears/repossession order?

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Hello, I have a question: My tenant is in rent arrears by 6 months and those arrears now stand at £9,600. I have served the tenant a S21 notice followed by a repossession order.

The council pays the tenant £1,875/month towards the rent.

View Full Article: S21 notice/Rent arrears/repossession order?

Unexpected bounce in UK’s February house prices

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The UK’s house prices showed an unexpected increase of 1.1% in February from January’s price, says Halifax.

The bank highlights that a typical property costs £285,476 – up from January’s average price of £282,360.

However, the rate of annual price growth has slowed in all regions with an annual rise of 2.1%.

View Full Article: Unexpected bounce in UK’s February house prices

Why Might UK Landlords Consider a Partnership?

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UK landlords may consider a Partnership structure for a number of reasons, including:

1. Cost: It might be prohibitively expensive to sell properties to a Limited Company for tax planning purposes, especially if HMRC wouldn’t regard them to be qualified as Business Partnership for at least three years.

View Full Article: Why Might UK Landlords Consider a Partnership?

Do I have to renew EPC?

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Hello, Can someone please help? I am in my 70’s and only let two properties, I’m not an experienced landlord.

I have had a tenant in a property for 7 years and never put the rent up in all that time.

View Full Article: Do I have to renew EPC?

City launches consultation on ‘eye watering’ new fees for HMOs

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Nottingham has revealed it will charge non-accredited, less compliant HMO landlords an eye-watering £1,993 fee to join its proposed additional licensing scheme – a £273 increase on the current scheme’s fee.

Accredited landlords will pay £1,118 – up from £990 – in a city already used to having to fork out big bucks for a licence; according to the HMO Hub website, Nottingham’s mandatory HMO scheme is one of the most expensive outside London, at £1,330 for a standard application.

The authority explains that this ‘less compliant’ fee covers any additional monitoring, inspections and enforcement that might be needed, basing the figure on covering staffing levels to deal with 5,300 applications.

Nottingham Council insists that its current additional scheme has had a positive impact on HMOs, including tackling problems with waste management and anti-social behaviour.

The current additional scheme, covering parts of central Nottingham, will soon come to an end and the council hopes to introduce a new citywide scheme, which would run for five years from January 2024.

However, landlords in the city will be voicing their concerns during the current month-long consultation.

Concerned

An NRLA spokesman tells LandlordZONE that it is concerned about plans to increase licensing fees across the board.

“Quite frankly the council’s licensing schemes have become a de facto tax on much needed rented housing rather than an effective tool to root out rogue and criminal landlords,” he adds.

“Given the council will be able to access details of landlords and properties on the planned national property portal and in light of plans for a decent homes standard for the sector, licencing schemes of this kind are completely redundant and should be scrapped.”

Lambeth holds the dubious honour of having the most expensive additional licensing scheme in the UK, where landlords pay £2,024 to license a four-bedroom HMO.

Read the consultation details in full.

View Full Article: City launches consultation on ‘eye watering’ new fees for HMOs