Carer/partner won’t leave after tenant died?

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Hi, We have a tenant who was served a section 21 back in April which expired on 26 June 2023. They were in arrears of over £6k. Due to the tenants’ health issues we were regularly in contact with their partner who was also the carer

View Full Article: Carer/partner won’t leave after tenant died?

Debate rages over huge arrangement fees for landlord mortgages

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A mortgage expert has advised landlords not to be put off by high arrangement fees on BTL mortgages, but some landlords and brokers have accussed lenders of profiteering.

With some fees as much as 7% of the mortgage amount, lenders have been accused of taking advantage of a precarious mortage market, but Lee Grandin of Landlord Mortgages says this simply isn’t true.

“The only reason this has come about is that the regulations are more stringent now for when lenders are working out cover, as interest rates have risen,” he tells LandlordZONE. “Those landlords coming off fixed rates can’t go onto a fixed rate with a new lender.”

Brokers have explained that higher arrangement fees – introduced after last year’s mini-Budget – are the only instrument lenders have to ensure borrowing can still continue for the benefit of the landlord, but also to satisfy their stress tests with the regulator.

Affordability

In short, lenders are acting out of necessity to enable landlords to achieve affordability.

Grandin adds: “Five years ago, fixed rates were a lot lower and they may have lent on a fixed rate of 4% for five years. That’s the only reason lenders are charging a fee – but with a 7% arrangement fee, the pay rate comes down significantly.”

He adds that the mortgage environment is set to evolve as lenders still need to get rid of money. “Margins will come down over the next few years and there will be a move towards tracker mortgages with much lower margins,” says Grandin.

“Lenders weren’t offering any lifetime trackers after the credit crunch like they used to, but these are starting to emerge again.”

But portfolio landlord, Kundan Bhaduri, director of London-based The Kushman Group, has accused lenders of profiteering and urged the Government to step in: “While some argue that these fees are a strategic way to maintain lower interest rates and enhance affordability, it is becoming increasingly evident that they border on profiteering, as they are causing extreme financial distress to landlords.

“Lenders used to charge around £995 to 2% in arrangement fees, but they’re now not far off £50,000 in some cases.”

Read more about mortgage arrangement fees on the LandlordZONE Forum.

View Full Article: Debate rages over huge arrangement fees for landlord mortgages

UPDATED: Bed bugs, an increasingly common problem in rentals…

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Bedbug Pest Control:

There’s been an explosion in the incidence of bed bugs that Rentokil blames on the bloodsucking creatures hiding in second-hand furniture.

Rentokil says it has seen a 65pc increase in bed bug infestations in Britain this year, blaming the rise in the increasing popularity of furniture recycling, particularly in rentals, and also because of a post-pandemic resurgence in travel, Airbnb and hotel stays.

Professor James Logan, from the London School of Tropical Medicine, told The Daily Telegraph that more people buying used furniture from websites including eBay and Facebook Marketplace is spreading bedbugs.

The small brown bugs deposit themselves unseen in the nooks and crannies of beds, chairs and couches before they creep out at night, biting their prey, their unsuspecting human victims. These bites result in nasty swollen sores and rashes and though they rarely spread diseases, they can cause infections.

The most common type of bed bug in the UK, cimex lectularius (main image), can also feed on household pets. Rodents and birds have been known as carriers of these nasty bugs.

Severe infestations will lodge themselves in floorboards, electrical sockets and even electrical items such as TV sets and stereo systems – they will find anywhere to hide that’s warm and dry.

Prof Logan said that Airbnb style travel and tourism, added to climate change may also be behind the dramatic increase seen in Britain. He added:

“Obviously we probably had a bit of a lull during Covid but with things starting to get back to pre-pandemic levels in terms of travel, it’s very likely that there will be bed bugs on the move much more again and travelling in people’s suitcases.”

A recent phenomenon in Britain

Most people in Britain have never seen one or even heard of anyone reporting a bed bug infestation, though now that seems to be changing, they may be a relatively recent phenomenon, but they are catching up now.

Bed bug infestations were common in the United States before
World War II, however, with improvements in hygiene and chemical treatments in
the 1940s and ‘50s, they were virtually eliminated there.

But like all the types of insects that have existed since ancient times, they are very persistent and survive in the most hostile environments, eventually adapting and thriving to adverse conditions, but they like warmth best. They commonly exist in most parts of the world: Africa, Asia, the Americas and Eastern Europe, and in Britain they have become more common, the warming weather being one factor, though international travel, Airbnb and more hotel stays are others.

These creatures are tiny brownish, flattened insects that feed solely on the blood of mammals, including humans, the most common types preferring feeding on humans; they bite all warm-blooded animals, including dogs, cats, birds and rodents.

Night hawks

They are mostly active at night, preferring to hide away
from daylight but remain close to where people sleep. Their flattened bodies
enable them to fit into the tiniest crevices in floors and beds. Signs they are
present are hatched and un-hatched eggs and dark spotting stains, which is their
dried excrement.

They usually bite people at night while they are sleeping, piercing the skin with an elongated beak through which they withdraw blood. As the bite is painless, the person seldom realises they are being bitten, but some may develop an itchy red sore or welt within a day or so of the bite, though for some there’s no reaction at all.

Eradication is a challenge

The creatures are challenging to eradicate, to say the least. It is unlikely that a DIY solution to eradication will be successful, so as soon as an infestation is suspected pest control professionals should be called in before the infestation becomes too extensive.

Since they are able to hide in so many different places,
inspections must be very thorough indeed and total elimination is not always a certain.
However, an experienced pest controller will know where to look for bed bugs, and
will have the equipment necessary to give the best chance of their disposal
first time.

All none essential fabric furniture should be removed, and it may be necessary to dispose of and replace beds and chairs. Disposing of the furniture requires great care if the infestation is not to be spread, and once the item in question has been removed it should be burned.

If an infestation is spotted the sooner it is treated the better as it will be much more difficult to irradiate once it spreads and the bugs become well established – the infestations can become very large.

Landlords and bedbugs

As with any insect or rodent infestation there’s always the question of who is responsible when a property is tenanted – tenant or landlord?

Ideally the tenancy agreement should set out clearly the circumstances in which the tenant can be held responsible for infestations of these sorts of creatures or rodents such as mice and rates.

However, nothing is cut and dried with this and unless it can clearly be shown that tenants have been responsible for the matter, a policy of goodwill should be adopted. It is perhaps preferable that the landlord takes on the responsibility – after all it’s in their long-term interests.

Dealing with the problem comprehensively my mean the tenants have to move into alternative accommodation temporarily, so the landlord should contact their insurers – good landlord’s policies should cover this.

How to remove bedbugs

To rid yourself of a bedbug infestation is not easy, you really need to use a pest control professional such as rentokil, but there are certain things you can do in the meantime to control the outbreak. Here are some steps you can take:

• Wash all bedding, curtains, and clothing in hot water and dry them on the highest dryer setting.
• Remove and replace cushions and pillows.
• Put other items that can’t be washed in the dryer and run it on high for 30 minutes or more.
• Replace mattresses if you can, otherwise: take a stiff brush to scrub mattress seams to remove any bedbugs and then thoroughly vacuum.
• Repeatedly vacuum beds and the areas them around them
• Vacuum floor boards and floor coverings thoroughly.
• Dispose of the vacuum cleaner waste dust in a sealed plastic bag and place it in the bin outdoors right away.
• Put a tightly woven, zippered cover or sealed polyethene cover on mattresses or to keep bedbugs from entering or escaping.
• Bedbugs can live several months without food, so keep cover on mattress for at least a year.
• Repair cracks in plaster, glue down peeling wallpaper, and seal holes and wide joints in floor boards.
• Remove all unnecessary clutter from lounges and bedrooms and move beds away from walls and other furniture.

[Image: the common bed bug Cimex lectularius]

View Full Article: UPDATED: Bed bugs, an increasingly common problem in rentals…

Town declares housing crisis blaming ‘skyrocketing’ rents partly on landlord exodus

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A town council in the SW has declared a ‘housing crisis’ blaming affluent new arrival renters but also ‘landlords pulling out of the market’ for rapidly-rising rents.

The initiative is in the fashionable town of Frome and is being led by councillor Polly Lamb (main picture, inset), who is a former lettings agent in the area.

She wants to highlight the problems caused by ‘skyrocketing’ rents which exclude many low-income local, some of whom have resorted to living in converted vans or sofa surfing.

“Frome has become very popular and has a high profile in the national media,” she says in her report submitted to the cabinet meeting.

“Regulations to control the PRS and keep tenants safe are unpopular and many landlords cite this as reasons to pull out, making rental properties even more scarce.

“Many landlords are selling their properties if they deem it too expensive to meet the energy performance standard in time for 2025/2028.”

Covid move

“This has encouraged more people to move here, particularly in the Covid period as remote working became more possible.”

She made the comments during a council meeting (main picture, inset) pointing out that Frome has a higher-than-average house prices and lower-than-average salaries, which “means increasing number of people locally rely on the private rented sector for accommodation”.

But as her report highlights, a lack of affordable housing and a council waiting list topping 600 means they are competing with home-working professionals who yearn for the town’s bucolic allure.

Greater powers

Frome is the third council in the UK to declare a housing crisis along with South Hams in Devon and Leicester, although it’s also calling for greater powers to regulated second home; more social and council housing to be built, more powers to regulate planning and better use of existing homes locally.

“Rents have skyrocketed and that is pushing out local people who have been here all their lives,” she told the council meeting, adding that the ‘crisis’ status would mean housing provision would now be at the heart of all the council’s decision making.

Read the report in full.

View Full Article: Town declares housing crisis blaming ‘skyrocketing’ rents partly on landlord exodus

2-year 70% LTV Buy to Let rates reduced 0.45% by Paragon

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Paragon Bank has reduced its core two-year fixed rate buy-to-let mortgages starting at 4.85% for a maximum 70% Loan to Value (LTV) dependent on EPC rating

Rates on the two-year fixes are priced at 4.85% for single self-contained properties with EPC ratings of A-C and 4.90% where the EPC is rated D or E.

View Full Article: 2-year 70% LTV Buy to Let rates reduced 0.45% by Paragon

EXCLUSIVE: New licencing schemes to rise by 31% in 2023 says data firm

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The number of selective and HMO additional licensing schemes launched this year has already equalled last year’s total as councils come under pressure to tackle private rental housing standards.

Thirty-two schemes have been launched so far – matching 2022 – according to geospatial technology company Kamma, which predicts that we could see another 10 before the end of the year, or 31% higher than 2022.

While the number of schemes launched in 2020 (20) and 2021 (19) fell as councils diverted resources towards dealing with the Covid pandemic and ensuing lockdowns, this created a backlog in 2022 when councils rushed to green light plans.

Activity

However, Kamma’s COO Chris Morgan (pictured) says it doesn’t believe a backlog is still the reason for a growth in scheme activity.

“The state of the economy, the cost-of-living crisis, and the changing demographics of the PRS towards older more affluent renters has put pressure on government to tackle, or at least be seen to be tackling, rental housing standards,” he tells LandlordZONE.

“There is a fundamental attitude shift that we expect to carry forward this higher level of new schemes being launched each year. It really is total finger in the air trying to predict council behaviour, but if I had to pick a range, I’d probably say between six and ten more schemes this year,” adds Morgan.

Although prevalent in London, schemes are launching all over the UK. In the last few months, Manchester has rolled out five new selective licensing schemes, Birmingham introduced selective licensing in 25 of its wards, and Southwark became one of the UK’s largest schemes, launching in 19 of its 23 wards.

Meanwhile, Medway and West Northamptonshire are considering similar schemes.

View Full Article: EXCLUSIVE: New licencing schemes to rise by 31% in 2023 says data firm

Unmasking Fake Property Gurus and Deal Sourcers

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Having nearly got sucked in by fake gurus and property sourcers I decided to write and submit this article to Property118 to help others …

When navigating the world of property investment, it’s essential to distinguish between genuine experts and those looking to capitalize on your enthusiasm.

View Full Article: Unmasking Fake Property Gurus and Deal Sourcers

London sees more record breaking rent rises

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Average weekly rent in London rises again, according to new figures.

The latest figures from Foxtons lettings index reveal average weekly rent in July was £597 per week, slightly lower than the £599 recorded in June

View Full Article: London sees more record breaking rent rises

Rent a property for one year only?

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Hello everyone,could I please have some help from the Property118 forum? I would like to know the best way to rent a flat for one year only as my wife and I are planning to sell our home and we will want to move into it next year. 

View Full Article: Rent a property for one year only?

Landlords selling up see capital gains fall

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Landlords who have sold up this year have seen their capital gains take a hit – they are making £10,000 less than they did last year, research reveals.

According to real estate firm Hamptons, the average BTL landlord who sold a property this year made £95,000.

View Full Article: Landlords selling up see capital gains fall