NTSELAT deem Price on Application unlawful

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The National Trading Standards Estate and Letting Agency Team (NTSELAT) has released its opinion, with the collaboration of the Competition and Markets Authority (CMA), on the use by agents of the term price on application (POA) in property listings.

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Build to Rent – A good idea or not?

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I am wondering what subscribers think about the new trend of large build to rent developments. I can see the attraction to young people, with communal hubs, IT suites and on-site coffee shops etc. It means that if their own home is the size of a box they can go and hang out in other parts of the building.

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EXCLUSIVE: ‘Cut or scrap stamp duty’ say backbench MPs… but not for landlords

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Tory MPs are urging the government to cut or scrap stamp duty in a bid to save homebuyers thousands – although their proposals don’t extend to landlords, LandlordZONE can reveal.

Kevin Hollinrake, a member of the Treasury select committee and founder of Hunters estate agent, says stamp duty is a “disincentive to transact, which is bad for the economy” and suggests the initial £125,000 threshold could be axed, effectively making the pandemic stamp duty holiday for lower-value homes permanent.

However, although he believes the current surcharge is fundamentally wrong, Hollinrake is unsure whether landlords should be included in any potential shake-up by the Treasury, he tells LandlordZONE.

“Landlords do a very good job, providing accommodation for lots of people but this is a tricky area – I’m on the fence,” he says. “It needs to be looked at, but this is not a fully worked out proposal.”

Zero-rated

Rising house prices mean 1.2 million homes that were previously zero-rated now require buyers to pay stamp duty after moving above the £125,000 threshold, meaning they face 2% tax on any purchase funds above that amount.

According to a report in The Telegraph, a further 3.1 million have been dragged into higher stamp duty brackets, paying between 5%-10%.

First-time buyers – who will also have to raise an extra £4,000 for a deposit compared with two years ago and an additional £5,000 in annual household income to secure a mortgage – will be hardest hit, according to analysis by Zoopla.

Meanwhile, the Treasury has collected £18.6 billion in the year to March 2022, an increase of £6.1 billion despite the stamp duty holiday during the pandemic.

Sir John Redwood MP and Greg Smith MP have also called for changes to the current tax system.

Read more: Scrap the 3% stamp duty surchage says NRLA.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: ‘Cut or scrap stamp duty’ say backbench MPs… but not for landlords | LandlordZONE.

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LATEST: Appeal granted for landmark clarification on who pays rent repayment orders

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The Supreme Court has granted permission to appeal in a case to decide whether a Rent Repayment Order (RRO) can be made against a superior landlord, usually the property owner, not just the immediate landlord.

It follows the long-running legal battle of Rakusen v Jepsen, culminating in August last year when the Court of Appeal ruled that RROs only apply to the immediate landlord, which was good news for those who find their property has been sublet unknowingly in rent-to-rent set-ups but not for tenants who struggle to take dodgy companies to task.

It overturned a previous decision by the Upper Tribunal, which ruled that an RRO application could be made against any landlord of the relevant property for the relevant period of the relevant offence.

Martin Rakusen granted a tenancy of his flat within Mandeville Mansion (pictured) on the Finchley Road in London, to Kensington Property Investment Group Ltd (KPIG) in May 2016, introduced by agents Hamptons.

KPIG then entered into separate written agreements with the four tenants.

Licence application

In November 2018, Hamptons told Rakusen that KPIG wanted to apply for a licence but none was granted and Rakusen did not renew KPIG’s tenancy in May 2019.

The tenants then applied for, and won, RROs totalling £26,140. Last year, the Court of Appeal allowed Rakusen’s appeal and struck out the claim against him, ruling that the correct interpretation of the law should relate to only the immediate landlord.

MORE: Read the full July 2021 Court of Appeal judgement

Landmark Chambers, which represents Safer Renting, says the case would be the first time the Supreme Court will consider the ‘rogue landlord’ provisions in the Housing Act 2004 and Housing and Planning Act 2016.

The appeal is expected to be heard towards the end of this year or early 2023.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Appeal granted for landmark clarification on who pays rent repayment orders | LandlordZONE.

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Bank Base rate kicking us when we’re down

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The Monetary Policy Committee have voted by a majority of 6-3 to increase Bank Rate by a quarter-point to a full 1% with 12 month CPI inflation rising to 7.0% in March, around 1% higher than expected in the February Report.

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NEW: Government ‘landlord bashing’ is fuelling rental supply crisis, warns NRLA

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Landlords have warned Ministers that their ongoing attempts to dampen investment within the private rental sector are fuelling a supply crisis, hiking rents and making homeownership more difficult to afford.

The National Residential Landlords Association (NRLA) says that since 2015 this has included taxing the supply of new homes to rent through a three per cent stamp duty levy, restricting mortgage interest relief to the basic rate of income tax so that, unlike any other business, landlords are taxed on turnover rather than profits.

The NRLA is warning that these tax measures are fuelling a supply crisis in the sector.

“Ministers have been repeatedly warned of the damage that would be caused if they continued to attack the private rented sector,” says NRLA chief executive Ben Beadle (pictured).

“The supply crisis is completely counterproductive to the Government’s mission to turn renters into homeowners.

“By suppressing supply whilst demand increases, with rents going up as a result, they continue to make it harder for tenants to save for a home of their own.

Wake up

“The Chancellor needs to wake up to a crisis of the Government’s own making, scrap the tax on new homes to rent and review other measures which add to a landlord’s costs.”

According to recent data from research consultancy BVA/BDRC for the NRLA, 62 per cent of private landlords in England and Wales report heightened tenant demand in Q1 2022 – a record high. 

Read a complete guide to tax for landlords.

Over the same quarter more landlords (11 per cent) sold property than purchased new property (eight per cent), making the supply crisis even more acute.

This is having a predictable effect on rents. Official data shows that private rents across the UK increased by 2.4 per cent during the first quarter of 2022, the biggest leap since 2016.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NEW: Government ‘landlord bashing’ is fuelling rental supply crisis, warns NRLA | LandlordZONE.

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Government fuelling rental demand and supply crisis

admin    Uncategorized     agents

The NRLA is warning that government efforts to dampen investment in rental housing are fuelling a supply crisis, hiking rents and making homeownership more difficult to afford. All at the same time data shows demand for rental property is at a record high.

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LATEST: Selective licensing scheme halted over ‘blanket regulation’ fears

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Councillors have welcomed news that a consultation into selective licensing in West Lindsey has been halted amid fears that it would create unfairness among landlords.

The plans, covering Gainsborough South West, Gainsborough North, Hemswell, Market Rasen (pictured) and Wold View, would affect 5,000 properties, and was planned to launch next year.

However, West Lindsey Council admitted that its previous scheme had seen limited success in tackling anti-social behaviour, community safety and crime levels, and the consultation was stopped seven weeks into the 11-week exercise, reports Lincolnshire Live.

Alison Provis, rural surveyor for the Country Land and Business Association, said the group would now seek to ensure that any future proposals fully addressed concerns.

Said Provis: “Introducing a selective licensing scheme that incorporates all landlords in the areas highlighted in this consultation was not the right idea.

Poor quality

“The approach must be to target those landlords who are providing poor quality housing and ensure it is only those properties that face additional charges and requirements.”

A meeting of the council’s prosperous communities committee heard from Councillor Trevor Young who said that forcing all landlords in certain areas to get a licence “creates unfairness” and added: “This is going to take some time and we’re not going to be able to bring in selective licensing for some time if we go through all the right processes.”

Concerns were also raised by Liberal Democrat Councillor Stephen Bunney (pictured), who said that alternatives needed to be considered and that other options for improving property conditions and reducing anti-social behaviour should be presented. Andy Gray, the authority’s housing and environmental enforcement manager, said his team would work to provide a response to the concerns raised.

A progress report is due on 19th July.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Selective licensing scheme halted over ‘blanket regulation’ fears | LandlordZONE.

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Wood-burning stove rule changes

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There are said to be over a million British houses using wood burning stoves. Some of these are in rental properties and owners and tenants will want to be aware of the law changes on wood burning which were introduced this year.

You could be penalised if you own or buy a wood-burning stove which is not compliant with the Government’s 2022 Clean Air Strategy and/or you use the wrong type of fuel. Read on to find the key changes you should be aware of to avoid buying a prohibited appliance.

Emissions regulations

Emissions from domestic fossil fuel burning, especially coal, have significantly reduced since the 1950s, but there has been a recent resurgence in the popularity or wood burning stoves and the use of open fires. The cost of living crisis and the surging cost of energy is only going to accelerate the trend, but this becomes a problem for the Government’s environmental targets as these heat sources have become the single biggest factor in particulate matter emissions.

The Government’s target is to reduce particulate matter air pollution by 30 percent by 2030, so with wood and coal-burning stoves producing up to 40% of this particulate matter pollution, it’s not surprising that they have become a key target for Government regulation.

The Department for Environment, Food, and Rural Affairs (DEFRA) published its Clean Air Strategy in 2019. This stated that the new Ecodesign regulations would come into force in 2022, which now mean that all new stoves will need to meet agreed emissions standards, regardless of where they are used in the country.

The Clean Air Act enables local councils to declare certain regions and districts as smoke control areas. In these zones, using an appliance that emits smoke through a chimney (such as a wood burner) is not allowed unless you’re burning an authorised fuel or using a DEFRA exempt product. Fines of up to £1,000 can be imposed for breaches of these regulations.

Do the regulations include banning wood burning stoves?

There are currently no plans to ban wood burning stoves says the Government. But significantly, one study – Clean Air in London – published the results of its findings for the Climate Change Committee (CCC), concluding that the use of wood burners should be phased out over time.

What is to be banned now are certain types of the most polluting fuels used in wood burners or multi-fuel burners, and only those types of fossil fuel burners which comply with certain design specifications can be sold and used from January 2022.

It means that if you own a wood burning stove, or you are planning to have one fitted, then you must ensure that it complies with the prescribed specifications. As from 1 January 2022 all new wood burning and multi-fuel stoves and fireplaces will have to be manufactured in-line with the strict new guidelines known as Ecodesign.

These new stoves will now carry something called a SIA (Stove Industry Alliance) approved Ecodesign Ready Stove quality assurance tag. As well as it being compulsory for a stove to have the correct specification from 1st January 2022, all wood burning and multi-fuel stoves and fireplaces that are manufactured will have to adhere to the strict new guidelines known as Ecodesign. The clearSkies moniker is a guide and the highest kitemark given to a stove in the domestic fire industry, a design which must be used in smoke control areas.

Stoves and fireplaces with the clearSkies certification produce significantly lower levels of emissions compared to open fires and older stoves. Independent tests have shown a clearSkies stove produces up to 90% less emissions than an open fire and 80% less emissions than the average 10-year-old stove.

If a stove or fireplace is clearSkies certified you can be assured that it meets all the criteria needed to be legally installed and meets the latest environmental standards. You don’t need to look for any other certification.

Appliances conforming to the previous requirements and marketed before January 1, 2022, can still be sold legally and if you have an older stove you can continue to use it. The new legislation will not affect existing appliances that are already installed.

Types of fuels

Wet wood used in wood burners or open fires leads to an increase in smoke and particulate emissions. It produces significantly less heat because you are simply burning water, and it leads to the blackening of the stove glass front with a faster build-up of soot in the chimney.

Wood fuels should have a moisture content below 20%. Legislation introduced in February 2020 banned the sale of wet wood fuel with a moisture content higher than 20% in volumes under 2 cubic meters, with effect from 2021.

It can take between 12 and 36 months, depending on the storage conditions and the species of freshly cut wood, to season (dry out) sufficiently to be legally burned. Freshly cut wood can have a water content as high as 60% to 80%. You can test the moisture content using an approved moisture meter or ensure your wood is ready to burn. Check with the Woodsure website if you are purchasing wood fuel.

In a smoke control area you can only burn fuel on the list of authorised fuels. These depend on the locality in the UK but tend to include: anthracite, semi-anthracite, gas and low volatile steam coal. You can check if you live in a smoke control area with your local authority.

Fitting and maintenance

Wood burners and multi-fuel burners must be fitted and certified by a qualified installer to ensure the stove works efficiently, with minimal emissions. Chimneys and flues must be swept and checked regularly.

Regular maintenance (at least annually) is particularly important in rental properties and landlords must supply a Carbon Monoxide monitor in all rooms where there is a solid fuel appliance.

Regular maintenance includes safety checks to ensure the stove is safe to use including checking the firebox for cracks, that the glass is not cracked, the rope seals are working effectively, the baffle and grate systems are in good working order and all the vents, are supply and airways are clear and working correctly.

Landlords should ensure that their tenants are made aware of the regulations governing the burning of solid fuels where a wood or multi solid fuel burning stove or open fire is provided.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Wood-burning stove rule changes | LandlordZONE.

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Are students happy with their accommodation?

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Are students happy with their accommodation?

Being a student at university can be a blast but the properties they rent and the landlords who provide often get a bad press.

But the latest research from www.accommodationforstudents.com shows that overall students are satisfied with their accommodation and academic life.

Despite the challenges of the last two years students score satisfaction with their accommodation seven (out of ten) with over half of respondents an eight or above.

The survey of over 1,000 students also revealed high levels of satisfaction with university life overall with an average score of 7.5.

Keys to satisfaction

The survey revealed that one of the most important criteria for student satisfaction with their accommodation was how well the property was managed by their landlord.

Current students are broadly satisfied with their property management (6.9), however those that experienced the best standard of property management were likely to be most satisfied overall.

Price and location

While our previous research showed that price and location were the two most important criteria for students when searching for accommodation, this research revealed that these factors had little impact on satisfaction levels once the student had taken occupation of the property.

This is highlighted by the fact that students who lived over an hour away from university were just as satisfied with their accommodation as those that live under five minutes’ walk away.

Furthermore, students who were the least satisfied with the amount of rent they paid were just as likely to be happy with their accommodation as those that indicated high satisfaction with rent, once more emphasising the import role of the landlord.

Online house hunting

The research revealed the dramatic rise in online methods, both for searching for accommodation and studying and perhaps most importantly students’ satisfaction with these methods.

This is best illustrated by the fact that students were just as satisfied with property viewings undertaken online as they were with a traditional property tour.

Furthermore, those students who were currently using online or a mix online and in person study methods were as happy with the quality of their teaching experience as those that were on campus in more traditional teaching environments.

Long-term trends

These trends are set to continue and are in fact welcomed by students. 65% of students would like some elements of remote learning to become a standard part of the university experience, while the ability to conduct viewings online in a satisfactory manner benefits both students and landlords.  

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Are students happy with their accommodation? | LandlordZONE.

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