Government U-turn on ‘extra time’ for landlords to meet tougher EPC rules

admin    Uncategorized     agents

The government has insisted it is committed to raising energy efficiency in the PRS from EPC band E to C by 2028.

Contrary to her boss’s comments earlier this summer, Housing Minister Baroness Scott of Bybrook gave peers the assurance when asked what she had made of Michael Gove’s remarks, given that the PRS had the fewest decent homes.

In July, the Housing Secretary suggested there could be a delay in bringing in energy efficiency plans for the PRS. Citing financial pressures on landlords, he told The Telegraph that the government should relax the pace of changes to EPC targets.

The previous month, Energy Minister Andrew Bowie admitted that landlords would have to wait many more months to find out the details of government proposals to raise the minimum EPC for rented properties.

And new Energy Security and Net Zero Secretary Claire Coutinho has already been encouraged to focus on driving through new EPC rules as the green debate begins to heat up.

No clearer

The NRLA says the sector urgently needs certainty on the timeline for upgrades. Policy director Chris Norris (pictured) adds that landlords are no clearer on what is required of them.

“Ministers must put in place a plan which sets out financial measures which can help landlords deliver improvements,” he tells LandlordZONE.

“Crucially, this strategy must recognise that the PRS contains a higher proportion of older properties, which are usually more costly to upgrade.”

The imminent rule changes are prompting landlords to consider quitting the sector, particularly as there are fears that some will pay out more for green improvements than they could make in lifetime energy savings. Others are only seeking out rental properties to buy that already meet the likely minimum MEES certificate, according to Paragon Bank.

View Full Article: Government U-turn on ‘extra time’ for landlords to meet tougher EPC rules

HMRC Rules Simplified: Transferring Your Business to a Company – A Guide for UK Landlords

admin    Uncategorized     agents

As a UK landlord, you might not be overly excited about tax regulations, but there’s one set of rules that could significantly impact your financial future: transferring your property business to a company. This move could help you save on taxes and streamline your operations

View Full Article: HMRC Rules Simplified: Transferring Your Business to a Company – A Guide for UK Landlords

Landlords could go to prison if they don’t meet new energy rules

admin    Uncategorized     agents

The government is considering imposing prison sentences on landlords and property owners who do not comply with stringent new energy efficiency regulations – a move that has infuriated some MPs.

In a bid to meet its net-zero targets

View Full Article: Landlords could go to prison if they don’t meet new energy rules

Government issues damp and mould warning within new landlord guidance

admin    Uncategorized     agents

Private landlords are to be held accountable for damp and mould in their homes including unlimited fines for those who flout the rules, new guidance from the Government has made clear.

Three Government bodies have jointly issued the lengthy advice document (see links at bottom), which makes it clear that private landlords as well as housing associations and councils are to be policed more heavily over the quality of their homes. This includes facing unlimited fines for those who ignore the various laws governing damp and mould.

This follows the case last year of toddler Awaab Ishak whose death from complications prompted by damp and mould in his council home brought the issue into the political limelight.

‘Lifestyle choices’

Housing minister Michael Gove (pictured) says in the guidance that landlords must not blame tenants for damp and mould – a hotly debated area within the LandlordZONE Forums – saying: “Damp and mould in the home are not the result of ‘lifestyle choices’, and it is the responsibility of landlords to identify and address the underlying causes of the problem, such as structural issues or inadequate ventilation”.

Gove’s guidance, which has been issued jointly with his department but also the Department of Health and Social Care and the UK Health Security Agency, stresses how the presence of damp and mould can affect tenants’ mental and physical health, and urges them to swot up on this six pieces of legislation they and their properties must conform to, and how and when to respond to tenants’ complaints.

The guidance also heralds two of the Renters (Reform) Bill’s key components which will be used soon to police private landlords including their management of mould and damp in properties.

These are the Housing Ombudsman which will deal with tenant complaints where the landlord hasn’t taken action, and the Property Portal, where a landlord’s compliance with the Decent Homes Standards, along with other regulations, will be recorded.

Blame issues

“The onus is now firmly on the landlord to identify and deal with any problem,” says Sean Hooker (pictured), Head of Redress at the Property Redress Scheme.

“It is no longer acceptable to blame issues on the way tenants live and normal life such as cooking, washing and drying of laundry have to continue.

“Instead, landlords and their agents must be sensitive to the needs of tenants and work with them to understand and change behaviour where appropriate. 

“They should also thoroughly investigate the underlying causes behind the problems and follow up to ensure things have improved. 

“We at the PRS will be using this guide to hold agents to account and urge the Government to introduce redress for landlord managed properties as soon as possible to proceed a holistic approach across every rented home.”

Read the guidance in full.

View Full Article: Government issues damp and mould warning within new landlord guidance

Record number of UK landlords opt for limited companies when investing – Paragon

admin    Uncategorized     agents

Three-quarters of landlords are planning to acquire a new rental property in the next year and intend using a limited company structure to do so – a record high.

The findings from Paragon Bank, which surveyed nearly 1,000 landlords

View Full Article: Record number of UK landlords opt for limited companies when investing – Paragon

Watch out for ‘secret’ compliance fee clauses in contracts, landlords warned

admin    Uncategorized     agents

A leading housing lawyer has questioned the use of property regulation compliance fees which appear to absolve letting agents of their responsibilities to ensure a landlord’s property is being managed lawfully.

Tessa Shepperson, a solicitor who runs Landlord Law, says one landlord was charged a compliance fee on top of his 12% commission fee and discovered a clause buried in his agency agreement which says: “In consideration of the Landlord paying the Compliance Fee the Agent will indemnify the Landlord for a fine or penalty that arises from the Agent’s failure to ensure compliance with the Landlord’s statutory responsibilities.”

This clause goes on to list a number of conditions, including “getting any necessary permission to let and any HMO or other licenses”.

It adds that “A Compliance Fee Indemnity will not be provided where a liability arises when the Tenant has been in any way obstructive.”

Compliance fee

Shepperson questions whether, if the compliance fee is not paid, the landlord wouldn’t have redress if the agent ignored all relevant legislation and let the landlord in for substantial fines and penalties.

She says: “If the agent took a deposit from the tenant and failed to protect it within the 30-day period, could the agent use the landlord’s non-payment of a compliance fee to defend any claim that the landlord might make against the agent if they are sued by the tenant for the penalty?”

As he owns the property in his name, this landlord – unlike those who put their property into a limited company – could claim protection under the Consumer Rights Act.

She tells LandlordZONE: “Landlords need to read their agency agreement and challenge such a claim, and maybe avoid those agents who use them altogether.”

Small print

Propertymark says compliance is legally required, and all agents have a fiduciary duty to their client, so that if a fee is being charged for this, an agency shouldn’t hide it in the small print of their agreement, president Greg Tsuman (pictured) tells LandlordZONE.

He adds: “Agencies’ models and how their fees are charged vary, however, all fees need to be transparent as it’s important for a landlord to be able to make an informed decision on what services they’re offered and the fees included.”

Visit the Landlord Law blog.

View Full Article: Watch out for ‘secret’ compliance fee clauses in contracts, landlords warned

Considerations for UK Landlords: A Guide to Business Transfers, Professional Fees, and Capital Withdrawal

admin    Uncategorized     agents

Being a landlord in the UK comes with various financial responsibilities and considerations. This blog post will explore three crucial areas, as outlined in HMRC manuals, that landlords should be aware of: transferring your rental business to a company, professional fees linked to your business’s structure

View Full Article: Considerations for UK Landlords: A Guide to Business Transfers, Professional Fees, and Capital Withdrawal

Tenants – Here’s how much a 100% mortgage will cost you

admin    Uncategorized     agents

Skipton Building Society has announced that it will extend its 100% mortgage offering to tenants and existing homeowners in the UK.

However, a new study by property lending experts at Octane Capital shows the monthly expenses that potential borrowers are facing.

View Full Article: Tenants – Here’s how much a 100% mortgage will cost you