SW city to clampdown on HMO conversions with harsher rules

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Exeter is considering extending its Article 4 direction to help manage the impact of the city’s student population.

The current Article 4 – restricting landlords’ rights to convert properties into HMOs – is in an area close to the University of Exeter’s Streatham and St Luke’s campuses.

The council hopes to enlarge this to include postcodes where student-only homes make up more than 20% of housing, or which are expected to exceed that threshold.

It would also include the university’s Streatham Campus and areas of purpose-built student accommodation bordering the affected postcodes.

It would not change exempt areas as it says this would cause severe personal hardship to homeowners, on the grounds that these streets already have a very high concentration of student properties.

New areas

The exempt areas are: Culverland Road, Danes Road, Edgerton Park Road, Hillsborough Avenue, Mowbray Avenue, Old Park Road, Springfield Road, Victoria Street and Wrentham Estate.

The authority says the changes would help to maintain a balance between student and non-student housing in the area and wouldn’t unduly restrict HMOs for non-student residents, such as lower income households and households with specialist requirements.

Exeter Council admits that one drawback is a possible increase in private rents, due to further restrictions on HMO supply.

It adds that since 2010, changes in the number of HMOs have been relatively limited and that the university expects future growth in student numbers to be slower, resulting in less demand for HMOs, although the council is not convinced this will be the case.

It is looking for feedback on four possible options in the consultation which runs until 3rd July.

Pic: Google Streetview

Read more about Exeter HMOs.

View Full Article: SW city to clampdown on HMO conversions with harsher rules

OFFICIAL: Latest evictions surge ‘due to Welsh reforms pushing out landlords’

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The Minsitry of Justice has blamed a 23% jump in the number of private landlord possession during the first three months of the year on the Welsh PRS reforms, although volumes are still below pre-Covid levels.

Quarterly figures from the Ministry of Justice show that claims increased from 19,031 to 23,395 (23%), orders from 12,966 to 17,660 (36%), warrants from 6,874 to 10,469 (52%) and repossessions from 3,809 to 6,421 (69%) compared with the same quarter in 2022.

The highest private landlord possession claim rates were seen in London.

Possession claims now sit at 77% of their pre-Covid baselines, mainly driven by private and accelerated claims. This increase was particularly noticeable in Wales where the accelerated procedure for claims, orders and warrants increased by 236%, 249% and 275% respectively.

For England this increase was 16%, 46% and 95% respectively. The MoJ says landlords exiting the sector due to the Renting Homes (Wales) Act – with more changes set to come in from June 2023 – was probably behind the rise.

Despite the increase in volumes, the civil court is managing demand, according to the government, which reports that the median average time from claim to landlord repossession is now 22.3 weeks, down from 27.3 weeks in the same period last year.

Legal aid

However, the Law Society of England and Wales warns that 25.3 million people (42%) do not have access to a local legal aid provider for housing advice.

President Lubna Shuja says it’s extremely concerned that the government is struggling to attract bids for its new Housing Loss Prevention Advice Service scheme.

“Unless we see significant and immediate investment across the legal aid system including housing, more of these schemes will collapse leaving people without help when they need it,” she adds.

View Full Article: OFFICIAL: Latest evictions surge ‘due to Welsh reforms pushing out landlords’

‘This is why built-to-rent will outperform BTL in the long term’

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Property management professional David Goldberg recently revealed that in the long term, investing in so-called ‘build-to-rent’ developments will prove to be more profitable for investors than buy to let.

He claimed that “built-to-rent looks to be a win-win for both tenants and investors alike and with more than £75 billion forecasted to be invested in this sector by 2025, it’s showing no sign of slowing down”.

Given the provocative nature of this viewpoint, we asked Goldberg, who is CEO of property firm POD Management, to explain how he has come to this conclusion.

“Yes, I believe that returns are greater in the build-to-rent sector, as opposed to buy-to-let, but only when compared over the long-term,” he tells LandlordZONE.

“The speed of acquisition and relatively low capital outlay in buy-to-let typically offers greater returns in the short-term.

Impact returns

“But factors like spread of the portfolio (i.e. where they are) and dealing with each tenancy in isolation, plus individual maintenance requirements – both reactive and proactive – impact returns.

“Also, a buy-to-let landlord can’t adapt to the changing needs of the tenant, for example moving from a 1 bed to a 2 bed apartment, or generally offer amenity, which can increase the likelihood of voids.

“Build-to-rent developments can be built to a higher quality and standard (of course depending on the individual project), provide flexibility, and often have more competitive facilities, which means landlords can demand higher rents (as they deliver tenants exceptional value), generating stronger financial returns.

“Professional landlords can offer greater security to renters and likely provide more flexible options on deposits and rental terms.

Buy to lets

However, in the short-term I believe returns are stronger for buy-to-lets.

“They can deploy capital quickly, will have less of an initial outlay on refurbishment, and quickly secure rental income. Within the build-to-rent sector, the asset owner has to acquire the land, refurbish all of the properties, and stabilise the asset, although they will continue to hold the asset, meaning they can spread this cost over a longer period and, given the advantages outlined above, achieve higher rents and thus great returns.

“Although, there are of course many factors which can affect returns, such as the operator, provided amenities, the quality of the build, and the landlord.”

View Full Article: ‘This is why built-to-rent will outperform BTL in the long term’

How to increase the profit from your property portfolio

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As we all know, thanks to the current high-interest rates, purchases of single-let properties don’t really stack up for many investors at the moment.

For those property investors who already own single-let properties on variable rate BTL mortgages

View Full Article: How to increase the profit from your property portfolio

Forged signature? Court hearing for possession claim

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Hello, I have a tenant who denied that she signed the tenancy receipt document at the court hearing in April. I tried to evict her using section 21.

The judge told her to write a witness statement that she did not sign the NRLA Tenant Receipt Document.

View Full Article: Forged signature? Court hearing for possession claim

41% of landlords see the ‘importance of EPC regulations’

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Landlords are apparently feeling the pressure over proposed environmental regulations with 41% believing it is essential to meet the planned Energy Performance Certificate (EPC) requirements, research reveals.

According to Mortgage Advice Bureau, landlords are keen to do their bit ‘for the greater good of the planet’.

View Full Article: 41% of landlords see the ‘importance of EPC regulations’