Open Letter to the UK Buy-To-Let Mortgage Sector

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Most UK mortgage lenders and mortgage brokers do not fully understand the potentially disastrous implications of landlords taking on new mortgage finance at the point of incorporation of their property rental business.

At Property118 we feel we have a moral obligation to share the linked PowerPoint presentation below

View Full Article: Open Letter to the UK Buy-To-Let Mortgage Sector

Name on AST and DPS Certificate Spelt Incorrectly?

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I have a tenant who is subletting his room and is refusing to quit his tenancy and return keys. He pays his rent on time and in full every month. Its a single room with shared kitchen and bathroom facilities.

View Full Article: Name on AST and DPS Certificate Spelt Incorrectly?

This is how evictions will work after Section 21 goes, reveals NRLA

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LandlordZONE asked the National Residential Landlords Association to flesh out how it sees evictions working fairly in a post-Section 21 world once the government’s Renters’ Reform Bill gets Royal Ascent.

Here its policy chief Chris Norris replies.

Rent Arrears

“When it comes to rent arrears, we would much prefer to see every effort made to prevent them in the first place. To assist with this the Government should unfreeze the Local Housing Allowance. That said, it is vital that the new grounds for possession do not allow an impression to be given that paying rent is an optional extra.

“We propose a mandatory ground for possession where a tenant has at least 2 months of rent arrears at the time a notice to repossess a property is served, and in arrears of more than 1 month by the time of a court hearing.

“We are heartened by the Government’s commitment to develop new and stronger grounds for dealing with repeated incidences of rent arrears.”

Anti-Social Behaviour

“In situations of anti-social behaviour we are calling for a new process under which the courts would have discretion to allow a repossession to take place where tenants, neighbours and/or the landlord have raised concerns about certain behaviours. Importantly, where a tenant has been convicted of a related offence this should be a mandatory ground for eviction.

“There should be clear guidance for the judiciary about the types of antisocial

behaviour which would result in possession being granted under the discretionary elements. This should include case studies which would highlight the kind of antisocial behaviour which would need to be addressed in these circumstances. . Neighbours and fellow tenants should also feel able to come forward to provide evidence which the landlord can use in support of their claim, without fear of repercussions

“More generally, we welcome the Government’s move to reduce notice periods in cases of anti-social behaviour in order to protect those most affected.”

Landlords who sell up

“Clearly landlords should be able to repossess properties where they need to sell them. However, we recognise the need to prevent this ground being abused by individuals who wish to circumvent tenants’ security.

“Our proposed solution means that a landlord would need to demonstrate they have instructed a solicitor as part of the conveyancing process. They would also be obliged to provide a statutory declaration setting out their intention to sell, should their claim be challenged.”

In conclusion…

“The NRLA has worked extensively with the Government to develop a package which works for responsible landlords and tenants alike.

“We are heartened by the Government’s pledge to engage in further discussions with stakeholders to ensure the details of its White Paper are finalised before it is considered by Parliament but realise how vital it is that landlords’ voices continue to be heard.

“We will continue to represent the interests of all those landlords who already do the right thing.”

Visit the NRLA’s rental reform campaign page.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – This is how evictions will work after Section 21 goes, reveals NRLA | LandlordZONE.

View Full Article: This is how evictions will work after Section 21 goes, reveals NRLA

Flipping not renting is future of property investment, claims TV presenter duo

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‘Flipping’ houses can now be a more lucrative strategy for investors than renting them out, according to property experts and sibling TV presenting duo Scarlette and Stuart Douglas.

Their show, Flipping Fast, is currently airing on Channel 4 and they tell LandlordZONE how they’ve reduced their property portfolio to concentrate on buying, renovating and selling.

The show pits six teams against each other to do up a series of budget homes in the North of England, the winner being the one who makes the most profit and who will then bag a £100,000 prize at the end of the series.

“When the government changed the tax law we quickly realised that as a landlord, mortgage costs could no longer be deducted from rental income,” say co-presenters Scarlette & Stuart, who front the show alongside George Clarke.

Legislation has made it harder to be a successful property investor, but they add that their success is also down to hard graft.

“If you’re lazy and complacent you will fail. We would often see unprofessional property investors with that type of attitude and believe the recent changes have reduced the number.”

The siblings warn that without thorough research into the demographic of potential buyers in their chosen location, investors could also come a cropper.

Ceiling prices

“You have to buy at the right price and to do this you need to know ceiling prices in your chosen location.

“Once you’ve done that, work backwards as to how much you should spend on the renovation to make a healthy profit. If you overspend on the purchase price and subsequent renovations, the chance of making a positive return on your investment is greatly reduced,” they advise.

“And if you’re flipping and purchasing with a mortgage, try to get one that doesn’t have an early redemption fee.”

Both suggest that investors should be 100% committed to giving themselves the best chance of success.

“Do as much research as possible, build relationships with estate agents and auctioneers, devise clear strategies and budget accordingly. Take all emotion out of any decision process and think with your head, not your heart.”

Join the LandlordZONE forum on flipping properties.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Flipping not renting is future of property investment, claims TV presenter duo | LandlordZONE.

View Full Article: Flipping not renting is future of property investment, claims TV presenter duo

Debunking Common Property Tax Myths

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Welcome to the pilot of ‘The Property Tax Show’ where myself and Tax Consultant Alex Norian From Property118 will be debunking common myths and misconceptions from all areas of property tax.

If you have something you want to be covered in a future episode

View Full Article: Debunking Common Property Tax Myths

Council forgoes civil financial penalty in pursuit of Banning Order

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Despite announcing in 2018 that they were now pursuing landlords for failure to licence HMOs and breaches of HMO Management Regulations under the civil penalty regime, (see £16,000 fine given for non-licence HMO”) the local authority has instead taken this “Rogue” landlord to court where there was only a small £4,808 fine.

View Full Article: Council forgoes civil financial penalty in pursuit of Banning Order

EPC reports urgently need upgrade to be ‘relevant’ says leading specialist

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A long-overdue shake up of Energy Performance Certificates (EPC) should focus equally on energy consumption, cost and carbon emissions to make them more relevant, according to the UK’s largest accreditation scheme for energy assessors.

Elmhurst Energy also believes EPCs’ validity period should be cut from 10 to three years and re-issued whenever there is a change to the building which impacts its energy performance.

EPCs haven’t been updated since they were introduced in 2007 and last November the government published its EPCs for Buildings Action Plan which identified improvements to their efficiency and effectiveness.

It’s hoped that there will be an update this year but, in the meantime, Elmhurst has mocked-up a new style of energy report (see main pic), displaying estimated energy (kWh), carbon emissions (kg), and energy cost (£) used by each property, along with other improvements.

Funding mechanism

Elmhurst also suggests expanding and updating energy assessment methodologies to address the energy used to cool buildings as well as changing the funding mechanism in the government’s Energy Company Obligation programme so that it supports the whole house retrofit approach, including upfront assessments and planning to ensure the right improvements are made in the right order. 

Elmhurst MD Stuart Fairlie (pictured) says once EPCs are updated, governments can align regulations to the relevant metric, so that policy initiatives to tackle fuel poverty can focus on cost, while initiatives on reducing energy use could be measured by energy consumption, and climate change regulations could be based on a measurement of carbon emissions.

“Not since the 1970s has the UK had so many concerns about the price of energy and security of supply,” says Fairlie.

“Thankfully, unlike the 1970s, we have many of the carbon-reducing, fuel bill busting, energy efficiency solutions at our fingertips, if only we could implement them nationally. These changes feel more urgent than ever before.”

Read: Ultimate guide to the MEES and EPC regulations.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EPC reports urgently need upgrade to be ‘relevant’ says leading specialist | LandlordZONE.

View Full Article: EPC reports urgently need upgrade to be ‘relevant’ says leading specialist

Can tenant claim disrepair when they have got kitchen in this state?

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An elderly (aged 80), long standing tenant told me on Thursday that she needs work done in her kitchen and I said I would get my builder to see what could be done.

Then I looked in the kitchen – there were dirty dishes stacked around and in the sink.

View Full Article: Can tenant claim disrepair when they have got kitchen in this state?

Guidence to strengthen the information available to fire and rescue services for new high-rise homes

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New improvements to fire safety guidance and building regulations to ensure tall buildings are made safer in England have been introduced as part of a wider package of reforms. The changes meet recommendations from Phase One of the Grenfell Tower Inquiry and will strengthen the information available to fire and rescue services.

View Full Article: Guidence to strengthen the information available to fire and rescue services for new high-rise homes

Can Council Tax be clawed back from past tenants for banding error?

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Some of my tenants have just moved and have forwarded across the Council Tax bill to confirm payments up to the end of the tenancy. However, on the paperwork, I have noticed that the Council Tax bill has been wrongly billed to band A and not band C as it should be for this property.

View Full Article: Can Council Tax be clawed back from past tenants for banding error?