Talks begin on UK-wide ban on landlords advertising property as ‘no children’

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The Scottish and UK governments are working together to prevent landlords banning children from properties after a BBC investigation revealed the practice was still rife.

Following the launch of the Renters Reform Bill which would strengthen the law to make it illegal for landlords to have a blanket ban on tenants who have children or receive benefits, talks are taking place to extend it to Scotland. Housing Secretary Michael Gove (main picture) has written to Scottish Housing Minister Paul McLennan to offer a joint approach which he said would send a clear message to providers.

The Scottish government said it would work with UK counterparts to develop the plans.

But a spokesman told the BBC that any talks “must include a close examination of the UK government’s decision to freeze Local Housing Allowance rates at 2020 levels for the third year running”, saying affordability was “the far more significant barrier to accessing a privately rented home”.

Investigation

An investigation found thousands of adverts for rental homes posted by private landlords and letting agents which said children or pets were not welcome. Almost a quarter of just under 8,000 ads examined on the OpenRent website said families were not allowed to rent the homes, while 300 on Zoopla explicitly said children were not wanted.

The Scottish Association of Landlords says it’s another sign of how the lack of private rented homes is making it harder for many tenants.

A spokesman tells LandlordZONE: “While these actions do not represent the actions of the overwhelming majority of landlords in Scotland, the recent actions of the Scottish government to restrict landlords’ rights to repossess their properties will no doubt make landlords more concerned about who they let their properties to in the future.”

He adds: “We hope to work with others to find a solution that addresses landlords’ concerns while protecting tenants’ rights.”

View Full Article: Talks begin on UK-wide ban on landlords advertising property as ‘no children’

Landlords are flocking to Landlord Sales Agency to sell their property portfolios before the eviction ban

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It’s a double-edged sword for landlords right now, with 1 in 3 landlords saying they’re going to trim down or get rid of their portfolios, coupled with the looming eviction ban in just 12 months’ time. It’s no surprise, therefore

View Full Article: Landlords are flocking to Landlord Sales Agency to sell their property portfolios before the eviction ban

‘Huge competition is the key problem for families in PRS, not landlords’ says Shamplina

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Paul Shamplina says the key reason why tenants with children are struggling to find rented accommodation is the ongoing supply crisis created by Government intervention in the sector, and the huge competition for properties that it is creating.

Speaking to BBC Radio 5 Live last night Shamplina – who is Director of Partnerships for Total Landlord insurance – said intense competition for properties means parents are finding it increasingly hard to find accommodation, as are most other types of tenants.

“Many landlords have children and at a recent industry show I spoke at most of the people in the audience said they’d be happy to rent to families,” he said.

Vilification

But Shamplina said increased taxation, more regulation via the looming Renters (Reform) Bill and the vilification of landlords are cumulatively persuading a greater number of them to quit the sector than normal, and this means many good tenants with children are being asked to leave as the properties are put up for sale.

“In my 30 years working with landlords and agents, I’ve never seen so many landlords exiting the market,” he said.

Speaking about the recent BBC research that showed almost three quarters of property listings on Open Rent stipulating ‘no children’, Shamplina tells LandlordZONE that a significant percentage of properties within the PRS are not suitable for children – in the same way not every home is ideal for dogs or cats.

‘no children’

“For instance, a one-bedroom or studio flat is not suitable for a family and neither is shared accommodation, student houses and HMOs, so landlords can fairly stipulate ‘no children’ in these circumstances,” he says.

“The Renters (Reform) Bill, when it goes live in 18 months’ time, will formalise what already exists out there in terms of landlords accepting tenants by setting out when a landlords can or cannot refuse a family with children, and this will stamp out unscrupulous landlords who say ‘no children’ for unfair reasons.”

Read more about the Renters (Reform) Bill.

View Full Article: ‘Huge competition is the key problem for families in PRS, not landlords’ says Shamplina

UK landlords with Airbnb properties in EU to pay 20% VAT on rental income

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British landlords who use rental platforms to let holiday homes in the European Union will soon have to pay VAT on their rental income.

Under the EU’s VAT in the Digital Age scheme, from 2025, these landlords will need to pay an average of 20% VAT, regardless of whether they live in the same country or outside the EU.

According to Tax Assist Accountants, the charge will be applied to platform operators such as Booking.com and Airbnb, requiring landlords to factor this cost into their rental fees to maintain profit margins. 

The EU predicts that almost three-quarters (70%) of accommodation providers using on-demand platforms such as Airbnb and Booking.com aren’t VAT registered.

This will cause administrative headaches for operators, who will need to notify each applicable member state which providers are VAT-registered and those who don’t yet have VAT numbers. 

Agents

This also includes firms that act as local agents for landlords owning holiday villas, apartments and cottages across Europe. 

The programme is designed to make the EU’s tax rules in the travel and hospitality sector fairer; due to the complexities surrounding VAT registration, hotels and conventional taxi services currently pay VAT on all the sales they disclose, unlike independent landlords and taxi services. 

The firm says that it’s possible Chancellor Jeremy Hunt could monitor the success of the programme and consider taking a similar path to improve tax parity. 

View Full Article: UK landlords with Airbnb properties in EU to pay 20% VAT on rental income

Has anyone used a Zero Deposit scheme?

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Hello, has anyone used a Zero Deposit (ZD) scheme? I’m coming into the ZD scheme from fresh having always taken traditional deposits up front so I’m wary of the scheme at the moment. I have been advised it might be a way of getting tenants to come forward.

View Full Article: Has anyone used a Zero Deposit scheme?