NEW: Official ‘How to Rent’ guide out next Monday, confirms Government

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The government has confirmed that the latest How to Rent guide will go live on Monday, 2nd October, including details on the new Housing Loss Prevention Service.

The guide – for tenants and private landlords to help them understand their rights and responsibilities – was last updated in March and forms part of the prescribed information that landlords in England must issue at the start of any new tenancy or renewal, and if they don’t, they lose the right to repossess using Section 21.

It was last refreshed to reflect legal changes including the requirement for carbon monoxide alarms to be fitted in every room with a fixed fuel burning appliance, and that an electrical installation condition report must be provided to tenants.

The Housing Loss Prevention Service, which went live in early August, means that tenants facing eviction or repossession can get free early legal advice on housing, debt, and welfare benefits issues before appearing in court, as well as continuing to get advice and representation on the day of their hearing.

Read more about the Housing Loss Prevention Service

It replaces the Housing Possession Court Duty Service which only offers ‘on the day’ emergency advice and advocacy.

However, there are fears that it could result in more landlords fighting – and potentially losing – expensive court battles. Propertymark has warned that there needs to be an equitable system in place which is responsive, fair and progressive for all parties.

According to Propertymark, where agents or landlords have issued the existing version of the guide in advance of the tenancy start date, they should follow up by issuing the new version as soon as it becomes available, keeping evidence that this has been done – preferably using a system that also shows that it has been delivered and opened.

Find the updated guide on 2nd October on the DHCLG website.

View Full Article: NEW: Official ‘How to Rent’ guide out next Monday, confirms Government

BEST Property Strategy in the Falling Property Market

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Would you like to know how you can increase your monthly cash flow, before the end of the year, without having the hassle of having to obtain any mortgages?

If you would like to increase your monthly cash flow

View Full Article: BEST Property Strategy in the Falling Property Market

Homeowners snapping up homes sold by landlords ‘key reason for higher rents’

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Homeowners are buying the vast majority of rental properties being offloaded by landlords, reducing local rented supply.

A survey of more than 500 big valuers and surveyors reveals that 90% reported that these properties were typically being sold to buyers who planned to make them their primary residence.

e.surv’s research also shows 79% of surveyors witnessed a drop in landlords planning to buy new investment properties during the last 12 months, while half saw a rise in landlords planning to rationalise their portfolio or exit entirely.

Half of the surveyors also saw an increase in the number of privately rented homes entering the sales market as pressure on landlords mounts.

Outstrip

The demand for rental homes continues to outstrip supply across the UK, with 44% of respondents reporting falls in the stock of rental instructions coming to market.

The survey also finds that properties are being let more quickly and typically at or above the asking price in the most active rental markets; 45% of London-based surveyors reported an increase in rental prices let above the asking price, with 40% seeing the time to let a property shorten.

Pressure

While the number of private landlords exiting the market has not been at the scale some first feared, Rob Owens, head of research at e.surv, says that its analysis shows there is likely to be continued pressure on supply and prices as landlords consider their position.

“The buy-to-let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords,” he adds. “It is important that the government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”

View Full Article: Homeowners snapping up homes sold by landlords ‘key reason for higher rents’

Prime Mininster has ‘betrayed landlords’ by ditching EPC upgrade scheme rules

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Many landlords have spent thousands of pounds on energy efficient upgrades in readiness to meet regulations that have now been ditched by Rishi Sunak.

lettingaproperty.com reports that while some increased loft insulation and upgraded eclectics in their rental properties, others went further by replacing gas boilers, installing air source heat pumps, and even adding solar panels.

The government had planned to introduce energy efficiency targets of an EPC band C for private landlords in England and Wales, by 2028.

The rental platform’s founder and CEO, Jonathan Daines (main picture), says that while welcome news for some, the government’s U-turn is frustrating for its landlord clients, many of whom had already taken steps to do the right thing in preparation for change.

“With the planned EPC changes looming, many landlords in our community proactively improved the energy efficiency of their properties,” he adds. “They incurred significant costs and practical hassles, to make energy efficiency upgrades in line with proposed EPC minimums.”

Regulations

However, Daines tells LandlordZONE that although it obviously spurred many landlords into action, he doesn’t believe many acted solely to comply with regulations.

“We work with many responsible and ethical landlords, who are also committed to providing the best accommodation standard they can, to encourage tenant loyalty and long-term letting,” he says.

And Daines doesn’t believe any upgrades will directly impact rents. “In many cases, accommodation has been improved, not just in terms of energy efficiency but also liveability and comfort for tenants. We advise our landlords if we believe changes to the property or market conditions warrant an increase but ultimately, it’s their decision.”

He believes it’s imperative that policymakers provide clarity and consistency in their approach to rental property regulations.

“The government’s wavering stance has ultimately betrayed landlords and tenants, while negatively impacting businesses who rely on a stable and thriving rental market.”

Read more: Ultimate guide to having an eco friendly property.

View Full Article: Prime Mininster has ‘betrayed landlords’ by ditching EPC upgrade scheme rules

Dear Polly Neate of Shelter – I agree with you!

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Dear Polly Neate,

It’s not possible to contact you directly as you, (Shelter), don’t allow contact through your website unless it’s to complain about a nasty landlord.

(For clarity, I’m a landlord with a small portfolio and I look after my tenants – indeed

View Full Article: Dear Polly Neate of Shelter – I agree with you!

How long will this eviction process take?

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Hi All. Two days ago I got an Order for Possession through the county court giving the tenant 28 days to leave. Despite this, I have a feeling that the tenant still will not go on 18th October. So my question is

View Full Article: How long will this eviction process take?

Landlords offered higher rents by new ground-breaking ‘rent to buy’ service

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A ground-breaking ‘rent to buy’ service that helps tenants get on the property ladder has been expanded to include private landlords.

Keyzy rents out properties to tenants and then helps them get on the property ladder by holding their hand to save up a deposit and get a mortgage usually after a three-to-four-year long tenancy.

But co-founder Simon Groll says it is now looking for landlords keen to add their properties to the new scheme, called Keyzy for Landlords.

“Landlords get 30% to 60% higher net income because there is no maintenance, no fees to pay to agents or property management firms and no void periods,” he says.

Fixed sale price

Participating landlords are offered a future fixed price for their property and once both sides agree, then transfer its management over to Keyzy which subsequently finds a renter to move in who is looking to buy their first home.

The tenant lives in the property for three to four years and, while paying a fixed rent, also saves towards a deposit to buy the home at the end of the term, which can be extended if necessary.

Once the end of the agreement period is reached, the tenant buys the property via a mortgage arranged by Keyzy and the landlord receives the proceeds of the sale.

Groll (pictured) says landlords aren’t ‘locked in’ and at the end of the lease period can decide not to use Keyzy to sell or rent out their property.

His firm makes money by charging a rent premium to the tenant and at a later date, referral fees from mortgage lenders.

“Keyzy for Landlords is ideal both for those with existing properties looking to sell up a few years down the line, and also those looking to invest in new properties but who want a more hands-off approach,” says Groll.

View Full Article: Landlords offered higher rents by new ground-breaking ‘rent to buy’ service

UK landlords were ready for scrapped EPC rules, study shows

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Most UK landlords had already prepared for the government’s planned energy performance certificate (EPC) legislation, which was scrapped last week by the Prime Minister Rishi Sunak.

The legislation would have required landlords to ensure their rental properties had a minimum EPC rating of C.

View Full Article: UK landlords were ready for scrapped EPC rules, study shows

Where to invest in buy to let properties for the highest rental yields

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With landlords facing lower profits than ever before, according to the National Residential Landlords Association, one lender has worked out where the best areas for buy to let yields are.

Digital mortgage firm Molo has used its internal data and found that the current average rental yield for England and Wales is 4.98%.

View Full Article: Where to invest in buy to let properties for the highest rental yields