80% of landlords ‘were ready for EPC changes’ scrapped by Rishi Sunak this week

admin    Uncategorized     agents

Rishi Sunak’s decision to scrap tougher EPC rules for rented properties may spark anger among some landlords following new research that four in five of them had already made preparations to meet the former minimum ‘Band C’ requirement.

Lender Shawbrook spoke to over 1,000 landlords and found that 80% said they were already prepared for the 2025 EPC regulation deadline and of these,  30% said their properties already have an EPC rating of A-C, while half said they had plans in place to improve their EPC rating before 2025 when all new tenancies were due to be included in the new regulations.

U-turn

Some landlords may view this week’s U-turn as a waste of their money – Shawbrook found that nearly half of the landlords it quizzed had spent between £500 and £20,000 on improving or investing in their properties over the past year, spending on average some £25,000 across the UK and £37,000 in London.

The now scrapped EPC proposals had also prompted many landlords to be more energy conscious when investing in new property, with over a quarter prioritising buying newer, more energy efficient properties during the next six months.

“Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties,” says Emma Cox (main picture), Managing Director of Real Estate at Shawbrook Bank.

“But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans.

“Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”

View Full Article: 80% of landlords ‘were ready for EPC changes’ scrapped by Rishi Sunak this week

Sunak’s betrayal: How the PM stabbed landlords in the back with his EPC U-turn

admin    Uncategorized     agents

Rishi Sunak has once again shown his true colours as a Prime Minister who does not care about the interests of landlords and the private rented sector.

In a shocking move, he has scrapped the plans to enforce minimum Energy Performance Certificate (EPC) ratings for rented homes

View Full Article: Sunak’s betrayal: How the PM stabbed landlords in the back with his EPC U-turn

Offering sex for rent via classified ads should be ‘specific offence’ say campaigners

admin    Uncategorized     agents

The government is being urged to bring in a dedicated ‘sex for rent’ law to protect tenants after it promised to clamp down on predatory adverts.

The recently passed Online Safety Bill will target the adverts and hold online platforms such as Gumtree and Craigslist responsible for preventing them from being posted.

Illegal content, including the adverts, will have to be removed, while the platforms must enforce promises they make to users who sign up through terms and conditions and offer them the option to filter out harmful content.

If the platforms don’t comply with these rules, Ofcom could fine them up to £18 million or 10% of their global annual revenue, whichever is biggest.

However, despite the prevalence of the practice, only one person has ever been convicted in a sex for rent case because victims must legally be defined as ‘prostitutes’, which acts as a deterrent.

The UK government launched a public consultation in April, which aimed to understand the problem.

Vulnerable renters

Campaigners are still waiting for its response, but Generation Rent believes a clear and dedicated law is needed to target predators and protect vulnerable renters.

Trade association Propertymark has previously called for landlords to be banned from the PRS for life and dealt with under the Sexual Offences Act, through criminal proceedings.

Tilly Smith (pictured), Generation Rent’s campaigns and partnership officer, says the inclusion of these harmful adverts in the Online Safety Bill is a positive move but that these changes alone will not end the overriding issues that force vulnerable people into sex for rent arrangements.

“The government must act to ensure that benefit payments are enough to cover the rent, that people can access and remain in safe and secure homes, and that that renters are supported through the cost-of-living crisis,” says Smith.

View Full Article: Offering sex for rent via classified ads should be ‘specific offence’ say campaigners

Free Property Management – Exclusive P118 members deal

admin    Uncategorized     agents

Landlords costs are on the rise mortgage rates and Section 24 all contribute to reduced profits.  To add insult to injury letting agency fees are on the rise with central London agents charging as much as 20% + Vat of the monthly rent.

View Full Article: Free Property Management – Exclusive P118 members deal

Higher rents caused by more landlords than usual quitting says Bank of England

admin    Uncategorized     agents

The Bank of England has blamed higher rents on more landlords than usual quitting the private rental market within its detailed quarterly report on the economy.

Its Agents’ Summary of Business Conditions report, which covers the period between July and August this year, highlights trading conditions across a range of sectors including housing compiled by its 12 regional representatives.

This is used in part by the bank’s Monetary Policy Committee to inform its interest rate decisions – the most recent of which was published yesterday revealing that its base rate would remain at 5.25% for another two months.

The agents’ report overall that economic activity remained subdued over the summer, and that “there were growing concerns about the outlook – most notably from contacts in consumer-facing businesses, but also from the business services sector”.

Turning to housing, the report says: “contacts said that demand had remained strong [for privately rented property].

Smaller landlords

“Supply was lower than it was a year ago, as tighter regulation and higher mortgage rates had caused some smaller buy-to-let landlords to leave the market.

“The strength of rental demand, relative to supply, meant that higher mortgage rates were generally being passed through to rents.

“There was little sign of a marked increase in rent arrears, although some contacts were worried that arrears could worsen later in the year.”

This is not the first time that the Bank of England has flagged up problems for smaller landlords and problems this is likely to present for the private rented sector.

In February the bank’s notes to accompany that month’s interest rate decision also said more landlords than normal were quitting the sector.

View Full Article: Higher rents caused by more landlords than usual quitting says Bank of England

Tenant requesting for Section 21?

admin    Uncategorized     agents

Background: We purchased a 3-bed mid-terraced property in 2022 with a sitting tenant of about 14 years. On completion, we issued a new 12-month AST which is due to expire at the end of October this year. In July, we informed the tenant that we would be increasing her rent by £50/month from 1st November and followed this with a section 13 notice because the AST does not have a rent review clause.

View Full Article: Tenant requesting for Section 21?

REVEALED: What the boiler replacement scheme change means for landlords

admin    Uncategorized     agents

Landlords have more of an incentive to make green improvements following PM Rishi Sunak’s announcement that they can now claim £7,500 for a heat pump installation.

Under the Boiler Upgrade Scheme, the grant for an air source heat pump has been increased from £5,000, and from £6,000 for a ground source heat pump. The grant value for biomass boilers remains at £5,000.

The changes take effect from 23rd October and live vouchers remain worth the original value, although these can be revoked and a new application made for a voucher at the higher value after that date, according to the standards organisation MCS.

The boost comes as the government scrapped its policy to force landlords to upgrade the energy efficiency of their properties by 2028, but to continue encouraging them to do so where they can.

Landlords will only need to replace gas boilers with heat pumps once they have worn out and even then, not until 2035.

Outstanding recommendations

To be eligible for the Boiler Upgrade Scheme, a property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.

Landlords need to contact installers to get quotes for the work; the installer will then apply on their behalf on the Ofgem website and the grant’s value is taken off the amount paid for installation.

The government reports that 22,857 voucher applications had been received by Ofgem up until 11th Sept this year.

Gas boiler replacements typically cost £2,000-£4,500 while heat pump retrofit costs vary widely, but costs can often exceed £10,000. However, companies such as Octopus Energy are offering installations from £3,000 in England after the grant, through the launch of its Cosy 6 model.

Read more about heat source pumps.

View Full Article: REVEALED: What the boiler replacement scheme change means for landlords

Second homes in Scotland could be charged more council tax

admin    Uncategorized     agents

Council tax is set to double for second homes in Scotland.

The Scottish government has put forward proposals which would give local councils the discretion to charge council tax premiums of up to 100% on second homes.

View Full Article: Second homes in Scotland could be charged more council tax