Why not pay Housing Benefit directly to Landlords?

admin    Uncategorized     agents

Housing Benefit is paid to tenants to cover their housing costs (sorry for stating the obvious). There would be numerous benefits to landlords, tenants, Gov.uk and local authorities if it were paid directly. So why is this not already official policy or on @RishiSunak’s To Do list?

View Full Article: Why not pay Housing Benefit directly to Landlords?

Government’s energy efficiency plans are ‘dead in the water’

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The private rented sector has no hope of meeting the deadline to improve EPC ratings following the government’s failure to respond to a consultation which closed two years ago, according to the NRLA.

It is calling for a definitive timetable for publication of a response to the consultation and any following legislation. The NRLA also believes the amount landlords are expected to contribute should be linked to average market rents in any given area. This would mean it would taper from £5,000 to £10,000, taking into account different rental values (and by implication, property values) across the country. It suggests developing a new tax allowance for landlords who are undertaking works towards reaching Net Zero.

Proposed target

Back in January 2021, the government proposed a target that all new tenancies in the private rented sector should be in a property with an energy performance rating of at least a ‘C’ by 2025 – extended to cover all tenancies in the sector by 2028. The government also proposed that all landlords should be expected to pay up to £10,000 to make the necessary improvements to meet the proposed targets.

NRLA chief executive Ben Beadle says the government’s delay means its plans are dead in the water while the lack of clarity is playing a major part in holding back investment.

Unlimited sums

“The plans as they currently stand, rely on a misguided assumption that landlords have unlimited sums of money,” he adds. “They fail to accept the realities of different property and rental values across the country, and that the private rented sector contains some of the most difficult to retrofit homes.

“Ministers need a smarter approach with a proper financial package if we want to ensure improvements to the rental housing stock.”

View Full Article: Government’s energy efficiency plans are ‘dead in the water’

Homecare maintenance contracts – alternatives to British Gas?

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Hello, I’ve had BG boiler plumbing and drains homecare contract cover for some 20 years now for a modest portfolio of London properties and the service has been good – things like appointments or 24 hour service so you can book plumbers in the middle of the night (the only spare time I get).

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Will student tenants leave the utility bill?

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Hello, my question is, I have a buy to let property, and have noticed my tenants’ gas and electric bill is outstanding at £2,600.

They are overseas students so when they disappear will I, the landlord, be responsible for paying it?

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House sale profits exceed £100k for the first time

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Despite a slowing market and a recent drop in prices, it has been revealed that house sellers are racking up more than £100k in profit for the first time.

The figures from Hamptons show that for 94% of sellers who sold up last year

View Full Article: House sale profits exceed £100k for the first time

Meet Mark Smith (Barrister-At-Law) Landlord tax planning strategies – PPN Stratford

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Our Hon. Legal Counsel, Mark Smith, Head of Chambers at Cotswold Barristers, will be presenting in person an overview of several landlord tax strategies at the Progressive Property Network Stratford meeting Tuesday 10th January.

Workable, 19th Floor 1 Westfield Avenue

View Full Article: Meet Mark Smith (Barrister-At-Law) Landlord tax planning strategies – PPN Stratford

Helping homeless to move on could be right up landlords’ street

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Landlords are being encouraged to donate the addresses of their vacant properties as part of a unique bid to stem homelessness.

Dreamt up by architect Chris Hildrey, ProxyAddress allows people to securely borrow a stable, donated ‘proxy’ address duplicated from an existing property. The scheme particularly aims to target the thousands of vacant properties in the UK, owned by councils, housing associations, developers, and individuals – including 270,000 long-term empty homes. 

Local services

Hildrey says the estimated 320,000 people with no fixed abode can’t access banks, benefits, GPs, libraries, and local services. But by using ProxyAddress, the virtual copy of a physical address is attached to the person, not the place, so it can move with them wherever they go. It also doesn’t impact on the physical address’ post, credit rating, or value – or the residents who might be living there. Addresses initially last six months with the option to extend the arrangement if necessary.

“Developers can have months before their properties are built and lived in, while the addresses of long-term vacant properties can also be put to good use,” he tells LandlordZONE. “We’ve already had a number of small private landlords as well as larger companies offering us addresses.”

De facto ID

Hildrey explains that it’s not about using the proxy address to physically receive post but as a de facto form of ID. “It’s about reclaiming independence and helping people get over those hurdles. Once someone has the address, they can get a job, a bank account and then save up for the deposit for a rental property.”

ProxyAddress boasts a 95% success rate in its initial pilot of 50 homeless people in Lewisham, and Hildrey cites examples of those who’ve found work and a private tenancy as a result. It’s now expanding to five new locations including Glasgow, with the aim of rolling the scheme out nationally – and even internationally.

View Full Article: Helping homeless to move on could be right up landlords’ street

Important news about property investment in 2023

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In 2023, many investors will choose to give up, and sell up, before they run through their cash savings entirely, and that’s without mentioning the recession, falling house prices (coming soon), and rising rent prices (happening already).

What does this mean for property investors?

View Full Article: Important news about property investment in 2023

December dip makes small dent in rising house prices

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Average house prices fell by -1.5% in December, while the annual growth rate dropped from +4.6% to +2.0%, according to the Halifax House Price Index.

A typical property now costs £281,272 – down from £285,425 in November – following six months of rapid growth during the first six months of 2022, before cost-of-living pressures, coupled with rising interest rates, began to impact household finances and demand.

Greatest slowdown

Over the last year, the North East saw the greatest slowdown, with annual house prices rising by +6.5%, compared to +10.5% the previous month. Eastern England, the West Midlands and Wales experienced the smallest falls in growth rate.

Kim Kinnaird, director at Halifax Mortgages, says these trends need to be viewed in the context of historic prices. “The cost of the average home remains high – greater than it was at the start of 2022 and over 11% more than house prices at the beginning of 2021,” she says. “As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall, with house prices forecast to fall around 8% over the course of the year.”

Underlying demand

However, estate agency Chestertons believes there won’t be the widely anticipated drop in values this year. Instead, prices will see only a slight dip before a 1.3% increase in England and Wales and rapid growth of up to 10% in London in 2024. The firm says strong underlying demand for homes combined with fewer-than-expected forced sales will cushion prices.

Sebastian Verity, head of research, explains: “We expect 2023 to be characterised by a slower property market during which around 25% fewer properties will come onto the market and change hands compared to a ‘normal’ year.”

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Landlords: Give this article about future renting problems to your tenants

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As the headline says, landlords who want to explain just how difficult life is right now to their tenants should give them this article. For tenants who believe we should have a rent freeze and all landlords are evil, then be prepared for a shock.

View Full Article: Landlords: Give this article about future renting problems to your tenants