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

New landlords: are you properly prepared for letting a property for the first time?

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Are you new to letting letting a property? Do you want to rent-out your own home for a time, or have you bought a buy-to-let and you’ve never let one before?

Here, Tom Entwistle spells out the key points you need to be aware of.

If you are really nervous about doing this, and it is perhaps advisable, at least for the first time, you should seriously consider using a good professional letting agent, one that’s qualified and a member of one of the key professional associations: RICS, ARLA UKALA, NALS and NAEA etc. Do your research first and if possible seek recommendations.

This article applies primarily to English law. It is not a definitive interpretation of the law. Although tenancy laws are similar in other jurisdictions, there may be significant differences. Always seek professional advice before making or not making important decisions.

Otherwise, you can save a lot of money by doing it yourself, but you must pay attention to a few absolute basics. If you don’t you could find yourself with a heavy fine, or you will be stuck with a bad tenant, unable to evict, not paying rent and wrecking our property.

Here are some of the important points to cover:

1. Make sure the property is safe – that there are no obvious hazards and that it complies with basic letting rules and regulations. It’s a really good idea to do a simple written risk assessment. You will find a link to risk assessment template and more information about safety and letting here: You can also read about the latest safety requirements in private rented property here: https://www.gov.uk/private-renting/your-landlords-safety-responsibilities
2. You need an Energy Performance Certificate (EPC) before you can market your property. These cost in the region of £60 to £100 and last for 10 years. They give an energy rating from A to F, and after April 2018 the overall property rating must be a minimum of E. This is likely to increase to a rating of C by 2025 for new lets. You must issue a copy of this certificate to the tenant at the start of the tenancy and on renewal. You will find more information about EPCs and how to obtain a certificate here: https://www.gov.uk/get-new-energy-certificate
3. Make sure you have any gas and electrical systems and appliances in the properly checked, and a Gas Safety Certificate issued by a Registered Gas Safe Engineer and a qualified electrician. Also, the gas appliances must be serviced annually. The gas certificates last for 12 months, they must be current at the start of any tenancy, and a copy must be issued to the tenant initially and on renewal. You will find more information about gas checks here: www.hse.gov.uk/gas/domestic/faqlandlord.htm
   The electrical checks must be done initially by a competent person and every five years thereafter. You will find comprehensive information about electrical checks here
4. Alarms – Smoke Alarms must be fitted on each level of the property, preferably in the stairwell, along with Carbon Monoxide (CO) detectors in rooms where there are solid fuel appliances – including open fires. The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 came into force on 1 October 2022. From that date, all relevant landlords must: 1. Ensure at least one smoke alarm is equipped on each storey of their homes where there is a room used as living accommodation. Landlords must ensure that a carbon monoxide alarm is equipped in any room used as living accommodation which contains a fixed combustion appliance (excluding gas cookers). They must ensure that smoke alarms and carbon monoxide alarms are repaired or replaced once informed and found that they are faulty.
   The requirements are enforced by local authorities who can impose a fine of up to £5,000 where a landlord fails to comply with a remedial notice. The alarms / detectors must be tested at the start of every tenancy and tenants should have instructions to test and report faults during the tenancy. You will find more detailed information here
5. Make sure you have done Legionella checks, especially if the property has been vacant for a period – these are basic checks, usually running taps to clear out the water system and cleaning shower heads, which can be part of the safety risk assessment. You don’t have to be an expert to do these checks and carry our a risk assessment. You will find more information on the Health & Safety Executive (HSE) website here
6. You need to issue your tenant with the latest version of the Government’s “How to Rent Guide”, a legal requirement: https://www.gov.uk/government/publications/how-to-rent This document can be served as a pdf. via email if a clause in your tenancy agreement allows for documents to be served by electronic means. Otherwise it is a good idea to attached to the rental agreement at the time of signing. Make sure you have the version that is available at the time of the commencement of your tenancy.
7. Screening and Selecting Tenants. This is perhaps one of the most important things you should be doing to make sure you have a successful tenancy. Make sure you do property checks using this 20 point check-list provided by TenantVERIFY: “A 20 Point Checklist – TenantVERIFY® Recommended Checks” – https://www.tenantverify.co.uk/useful-documents.html
8. Protecting Deposits. Since April 2017 all security deposits taken (maximum of one month’s rent) must be protected in one of the Government approved schemes and statutory information (section 213 notice) served on the tenants and/or any other person who paid all or part of the deposit. More information here: https://www.gov.uk/tenancy-deposit-protection
9. Deposit cap and the limits on fees that can be charged. The Tenant Fees Act 2019 provides for restrictions on these charges. Holding deposits are capped at one week’s rent; Security deposits will be capped at five weeks’ rent where the annual rent is less than £50,000 and six weeks’ rent where the annual rent is £50,000 or more; Default fees (fees which can be charged during the tenancy) are limited to the reasonable costs incurred in replacing a key or lost security device or interest on rent overdue by 14 days or more, capped at 3% above the Bank of England base rate.
10. Inventories. Since the advent of the Deposit Protection Scheme, without a good inventory you will stand little chance of winning a claim against the deposit for damage to the property. You need excellent documentary evidence to show condition before and after the tenancy, and ideally an independent inventory company can provide this at a reasonable cost.
11. The check-in. Checking-in a new tenant is very important in the process of letting a property. It’s a good idea to complete as much of the above as possible so that the documentation can be included in the tenancy agreement. That way there is no possibility that anyone can deny having received it later.
    There a lots of things to remember, so it’s wise to have a check-list in front of you so you don’t forget anything important. Find the Check-in-Check-Out Checklist here: www.landlordzone.co.uk/documents
12. Operating Instructions. You should supply a folder to new tenants with safety instructions, operating instructions and emergency procedures for everything inside and outside of the property: how to operate the cooker, defrost the fridge, light fires, locate stop taps and electrical fuses, alarm settings etc. Also other information such as when and where the bins are emptied, where post should be forwarded to, and where the local amenities, entertainment, good pubs and restaurants, and transport routes are; this will always be appreciated.
13. Inform HMRC that you are letting a property for the first time. As there will be rental income involved you will need to complete an annual self assessment tax return which must be submitted by January 31. see – Paying tax and National Insurance
14. Administration. Don’t forget to record all your income and expenses for each property you own for the year in question. From this you can work out your tax liability. You need to split off those expense items termed as capital expenditure, which should be recorded for when you sell the property, and those items which can be classified as revenue items, which can be off-set against income.
    You will need this information for your annual self-assessment tax return.
    A simple spread sheet will suffice for this if you have just one or two properties, otherwise think about investing in one of the landlord specific accounting software packages. It’s a good idea to keep all the paperwork in one place – have a file for each rental property and one for each tenancy and keep a journal which records all communications, dates, times and conversations with your tenants.

Good luck with your lettings business.

View Full Article: New landlords: are you properly prepared for letting a property for the first time?