Renting 4-5 rooms on AirBnB – which use permission class?

admin    Uncategorized     agents

Hi, I’d like to move house but retain my existing property, rented to multiple single occupants using AirBnB for periods of minimum 5 days to maximum 3 months.

The majority of visitors will be international visitors for Mon PhDs (I know this as I have been using the rent a room scheme for two years and 90% of visits are postgrad students on short courses at nearby university).

View Full Article: Renting 4-5 rooms on AirBnB – which use permission class?

To sell, or not to sell?

admin    Uncategorized     agents

Hi, I have a mortgage coming off its fixed rate at the end of October and it’s not possible to switch rates until six weeks before.

With mortgage interest rates currently raising by the minute, my profit margins are disappearing and I’m tempted to sell up –

View Full Article: To sell, or not to sell?

Cheltenham Council takes action to tackle empty high street shops…

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Cheltenham Council is using a two pronged approach under its innovative Business Improvement District (BID) organisation to tackle empty shops on its high streets.

The Business Improvement District (BID) is a business-led body formed in the borough to improve a centrally defined commercial area. The organisation is funded by businesses themselves, for the benefit of those businesses, and it aims to coordinate investment into the area, and to deliver projects and services to enhance those already provided by the Council.

Cheltenham says, “A BID is a not-for-profit company, which can only be formed following consultation and a ballot in which businesses vote on a BID proposal… for a maximum five-year term the BID and operates within a legislative framework… defined within the business plan [businesses] will be required to pay the mandatory BID levy.”

First established in Canada and the US, BIDS now operate around the world and there are more than 300 in the UK, including Bath, Bristol, Swindon, Salisbury and Worcester.

The two-pronged approach will tackle empty shops in Cheltenham town centre where landlords of empty shops are being told to do more in an effort to boost the high street by filling their vacant premises.

The borough council and Cheltenham BID are pursuing the two-pronged strategy which starts with engagement (consultation) and ends with enforcement.

A respected industry expert has been appointed to work with the town’s property agents and property owners, while the council is doing its part by ramping up its existing commitments and issuing warning letters to those responsible. These warnings will request that owners review and improve the condition of their properties when needed.

Currently, 32 properties in the town have been identified as in need of improvements, one of these being the former Sports Direct unit (102-104 Cheltenham High Street) which Cheltenham says is a “live example of active engagement with the property owner and the agent.”

A recent BID survey of Cheltenham town centre found there were 43 unoccupied ground floor retail units in the central BID zone, representing 8.85% of a total of 486 units. Springboard, the Retail Footfall Analytics specialist, in its July vacancy report, showed that Cheltenham’s vacancy rate was 8.8%, set against a national average figure of 11.2% and the South West average of 9.4%.

There are new openings planned for this coming autumn, which Cheltenham Council hopes will lead to an even further reduction in it’s average vacancy rate.

“Footfall is a good indicator of the strength of the high street and again this shows Cheltenham High Street is resilient to the current economic conditions; despite the impacts of the pandemic and the recent cost of living crisis, businesses have responded positively. The peak was early in July and ties in with the dates of the music festival, Wimbledon Big Screen, and launch of the Umbrella project,” says Cheltenham Borough Council.

Cllr Max Wilkinson, cabinet member for economic development, culture, tourism and wellbeing, says:

“Many people are concerned about the high street and we are too – particularly empty and unsightly shop fronts. Despite the well-known challenges faced by every town and city centre, Cheltenham is faring relatively well.

“However, we will not be complacent and we know there is work to do. Many of the landlords of shops in Cheltenham are investment firms and they can be challenging to deal with. That’s why we are pursuing a two-pronged approach of stepping up discussions with agents and landlords of empty premises, while taking enforcement action when it is needed – as evidenced by the 32 letters already sent.”

The Vacant Shops Academy was commissioned by the Council and Cheltenham BID to audit existing units in Cambray Place, The Strand, High Street, including the lower High Street, Promenade, Montpellier and the Regent Arcade to help develop a plan to fill them.

The delivery of this plan, in addition to the recently renovated Clarence Fountain pocket park and the Wilson Art Gallery and Museum refurbishment, is continuing the council’s work, “to create a vibrant town centre for residents and visitors,” says the Council.

The Council is powerless to set business rates or dictate what the rent levels will be in shops owned by private landlords. Many of the empty premises in Cheltenham, says the Council, are owned by investment or pension firms, and some of these are offshore.

The new programme of activity by BID, “is expected to last one year and includes a review of business engagement alongside formal enforcement action by the council against landlords who do not ensure their premises are well-maintained,” the Council says.

Heath Gunter, Cheltenham BID chief executive, said:

“The traditional high street is changing and through working with The Vacant Shops Academy we can ensure that Cheltenham is at the forefront of this evolution. It is an important piece of work that needs to be done and it is great that Cheltenham BID can partner with Cheltenham Borough Council on this project.”

Enforcement action means using existing legislation to demand action of owners who do not respond to consultations: a section of the planning act (Chapter II, Section 215) gives Local Planning Authorities (LPAs) the power to require ‘proper maintenance of land’.

In effect this allows LPAs to take enforcement action where, “it appears that the amenity of a part of their area, or of an adjoining area, is adversely affected by the condition of the land in their area”.

Where the Council and BID consider it does adversely affect the area they may serve a notice on the owner and occupier of land under this section of the act. Such a notice will then set out the steps the Council considers is required to remedy the condition of the land.

View Full Article: Cheltenham Council takes action to tackle empty high street shops…

4 ways to make sure you find a good tenant with great pets!

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Although it’s not a legal requirement to let a property to tenants with pets yet, there are several moves to make it more difficult for landlords to say ‘no’. This includes wording in the Government’s own ‘model tenancy’ which some landlords use that will prevent them from “a blanket ban on pets”. The tenancy agreement assumes that ‘consent for pets will be the default position’, and if the landlord objects, they have to respond to a tenant’s request, in writing, within 28 days to explain why.  

In addition, the recent white paper on ‘Rent Reform’ indicates this will be widened to all private landlords letting property and will include a mediation process if the tenant feels the landlord’s refusal for them to let with pets isn’t fair.

With over half of households having a pet, but only 7% of properties advertised to let with pets, renting to animal lovers could be a great way to secure a long term, excellent tenant, who may even pay a little more rent.

However, it’s essential to carefully reference check both the tenant and the pet(s). Here are four ways to check a tenant and their pets before you let to them:-

#1 Meet the pets

This is an excellent way to make sure the pet living in your property isn’t going to be a noise nuisance to neighbours or indeed cause damage. Ask the tenant to meet you at the property with the pet and you will soon know if they are a good pet to let to.

#2 Vet checks

If a tenant looks after their pet well, they are likely to be known by their local vet. Dogs and cats will need vaccinations, flea and worm treatment and some vets offer packages to provide these, so check with your tenant if they are up to date with the required care and ask for a written vet reference.

#3 Emergency and holiday care

A sensible pet owner will always know who will look after their pet in an emergency, be it a dog sitter, local kennels or friends and family. So check who will look after the pet when needed and, as a landlord, it’s worth keeping these details to hand, just in case.

#4 Assistance dogs cannot be refused

If a tenant has an assistance dog, it’s important to be aware you cannot legally refuse a let. And remember they will be very well trained and are a lot less likely to cause any damage to your property or a nuisance to neighbours.

If an agent is fully managing your property, it will be their responsibility to check both the tenant and the pet. Check too that the agent will do regular visits to the property to carry out periodic checks. This helps tremendously as the agent will pick up problems before they become a real issue.

Thinking of letting your property and considering letting with pets? Speak to someone at your local Leaders branch and we can explain how to let to tenants with pets safely.

View Full Article: 4 ways to make sure you find a good tenant with great pets!

Propertymark pledges support for Gas Safety Week

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Landlords are being urged to check that their gas appliances are safe by understanding the law.

The call comes from Propertymark who are supporting Gas Safety Week which is now in its 12th year.

The event will see organisations across various industries come together for one common goal –

View Full Article: Propertymark pledges support for Gas Safety Week

BRIEFING: Rogue landlords face prison sentences under new rules

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Under plans to get tough on landlords, stricter standards will be brought in to eliminate unsafe and cold rental housing says the Government

Landlords could be facing six-month prison sentences if they let older homes that are unsafe and cold for their tenants.

Under new Government plans upgrade older housing stock in the private rented sector (PRS). These proposals have been published by the Department for Levelling Up, Housing and Communities (DLUHC). Formerly the Ministry for Housing, Communities and Local Government, the department is tasked with implementing the Governments “levelling up policy”, and this will be partly achieved through housing reforms.

The new policy proposal would see landlords who let properties that are below standard, and who fail to keep their properties warm, dry and in good safe repair, would potentially be criminally prosecuted in a local magistrate’s court where a judge will decide their fate. The maximum sentence for these housing offences will be six months in prison.

According to Rachel Mortimer writing for The Daily Telegraph, the Government intends to introduce the new minimum standards right across the private rented sector (PRS) in England, which are similar to those already existing in social housing provided by local councils.

The intention is to stamp out poor practice and unsafe homes.

In a consultation published on Friday which will last for 6 weeks, from Friday 2 September 2022 to Friday 14 October 2022, ministers have revealed plans for a “legal duty on landlords” to ensure minimum standards are met which ensure their properties are in a “reasonable state of repair” when they let them.

The Government is encouraging individuals and organisations, interested parties to respond to the consultation via an online survey. 

Those landlords who fail to keep their properties up to these minimum standards will face either a civil penalty by the local authority or a prosecution in a magistrates’ court which could result in a custodial sentence as well as a ban from acting as a landlord or property manager.

The consultation will seek views from interested parties on the introduction and enforcement of a Decent Homes Standard in the private rented sector in England.

Currently, landlords who do not provide meet minimum standards face either a civil penalty of £30,000 or can be handed an unlimited fine by a court and banned from ever leasing property again.

The Government claims that this will introduce the biggest overhaul of the private rented sector in a generation once the new Decent Homes Standard is brought into force. The current standard is not legally binding in the PRS, though there are strict rules for gas and electrical safety and fire safety which can potentially result in a prison sentence for landlords.

The DLUHC says…

“The current enforcement system largely places the obligation on local councils to identify hazards in privately rented properties and take enforcement action against the landlord, who must then comply.

“This creates an environment where some landlords are not proactive in ensuring their property meets requirements and rather wait for an inspection to be told what improvements need to be made whilst tenants live in unacceptable conditions.”

The former Levelling Up minister Michael Gove, before he was sacked during the ousting of the present prime minister Boris Johnson, pledged earlier this year to halve the number of poor-quality rentals over the next eight years.

Gove’s plans could prove challenging and expensive for those landlords with older properties that need extensive improvements. Some of these properties will need thousands of pounds spending on them to meet the coming new environment standards – £10,000 to £15,000 pound upgrades to meet the Energy Performance Certificate (EPC) targets are not unheard of.

Experts are warning that these tough new standards, along with the removal of section 21 and fixed-term tenancies will mean that more landlords will consider leaving before these new rules are introduced, exacerbating and already tight housing market.

Tenants just cannot find enough vacant rentals to satisfy their needs due to a severe shortage of rental accommodation. What capacity there is has been subject to kikes in rent levels and is now resulting in bidding wars between tenants.

Enforcement

Ben Beadle, of the National Residential Landlords Association, told Ms Mortimer of The Daily Telegraph: “All the laws in the world will do nothing without improved enforcement against the minority of landlords who tarnish the reputation of the responsible, law-abiding majority.

“That requires properly resourced councils tackling the criminals and rogues, whilst allowing the responsible majority to easily prove their home is safe and compliant.”

Experts in the industry have observed for many years the introduction of increasingly strict regulations which have failed to improve standards.

Generally, its the responsible landlords who follow the rules and meet the ever higher standards, but the rogues seem to get away with this because there’s a lack of grip on enforcement by local authorities.

View Full Article: BRIEFING: Rogue landlords face prison sentences under new rules

NRLA hits back at Conservative MP calling for a rent freeze

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The National Residential Landlords’ Association (NRLA) has hit back at Conservative MP Natalie Elphicke who has been calling for a rent freeze on private rental homes.

Writing on the Conservative Home website, Ms Elphicke said that the rising cost of living has seen many households struggling and they are making hard financial choices.

View Full Article: NRLA hits back at Conservative MP calling for a rent freeze

Free lease extension – Is there a tax liability for this?

admin    Uncategorized     agents

Hi all, I need some advice, please. I own a flat in a house that was originally split into two individual flats back in the 1980’s. I own one flat and the Freeholder owns the other.

I am in the process of selling the flat and the Freeholder has agreed to allow me to extend the Lease with their being NO premium charged.

View Full Article: Free lease extension – Is there a tax liability for this?

Housing minister Eddie Hughes resigns just three days after Truss victory

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Housing minister Eddie Williams has thrown in the towel and says he is looking forward to having more time to work for his constituents in Walsall North and ‘championing their causes in parliament’.

The Midlands MP, who has been at the housing department since June 2018 – a long run for any housing minister or secretary of state these days – has handed back his ministerial ‘red box’ (pictured) and will return to the back benches.

With a merry-go-round in recent years of secretaries of state and housing ministers including scandal-struck Chris Pincher and bosses Michael Gove, Robert Jernick, Greg Clark and now Simon Clarke, Hughes was often the most experienced and knowledgeable person at the parliamentary coal face.

No hint has been made in his Tweet today as to the reason for his departure, but two likely reasons come to mind – either Truss has plans to install her friends as junior ministers at DHLUC and needs him out the way, or Hughes has no desire to work within the new government.

Renting reforms

His departure could be good news for landlords – without the lead organiser for the reforms, they are likely to now be delayed even further as Hughes’ replacement gets up to speed, which would be a considerable task given the huge range and complexity of the proposals.

Hughes was also a key player in the Government’s policy drive on building safety following the Grenfell disaster and also leasehold reform.

His departure has prompted some kind words on social media, which is unusual in today’s digital world, including Gavin Smart of the Chartered Institute of Housing, who said: “Sorry to see you go Eddie. It’s been good to work with you.

“You’ve brought understanding and energy to housing and homelessness and always engaged constructively in looking for solutions to some big challenges. Good luck for the future.”

Hughes also had responsibility for the ‘rough sleeping’ brief and several organisations also bade him farewell including Homeless Link, campaigner Kate Nichols, OBE and Greg Hurst of Homeless Impact.

Reaction

Timothy Douglas, Head of Policy and Campaigns for Propertymark, says: “A change of Minister will add to the uncertainty the proposals within the renters’ reform white paper have created among the landlords our member agents represent, specifically the lack of protections against anti-social behaviour with the removal of Section 21 notices and the move away from fixed-term tenancies.

“We’re ready to work closely with whoever replaces Eddie Hughes to ensure that if the private rented sector is to be reformed, it is fair, balanced and workable, and goes ahead without any further delays.”

View Full Article: Housing minister Eddie Hughes resigns just three days after Truss victory

Council extends its home purchase scheme to landlords

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A Scottish council says it will, for the first time, consider buying homes from private landlords and allow the tenant to remain in the property as a council tenant.

This will, the council says, help prevent homelessness and increase the council’s housing stock.

View Full Article: Council extends its home purchase scheme to landlords