1p go £4,880: Landlords begin returning deposits as cap regulations kick in

admin    Uncategorized     agents

The new regulations mean that landlords must return cash to tenants if the deposit for a renewing tenancy exceeds five weeks’ rents.

The tenant fees ban and its restrictions on rental deposit size
are beginning to bite with landlord refunds running from 1p to several thousand
pounds, it has been revealed.

This includes one landlord who this week voluntarily paid £4,880
back to a tenant on their refundable property deposit thanks to the new
legislation.

The lucky renter – who admittedly had paid a proportionately
large deposit – was handed the bumper refund recently.

Since the Tenant Fees Act was introduced last June, landlords in
England are paying back an average deposit of £317 to tenants renewing
contracts with them, although one landlord has even paid back just one penny.

The legislation states that a
refundable tenancy deposit must be capped at no more than five
weeks’ rent where the total annual rent is less than
£50,000, or six weeks’ rent for rent £50,000 or above.

It also says that any existing
deposit above the cap should be refunded on a new fixed-term tenancy which is
created on, or after, 1 June 2019.

Deposits have typically fallen from 5.5 weeks rent in
April to 4.76 weeks in December, according to TDS. This is helping renters
across England make an average saving of £163 and £300 in London.

Steve Harriott, its chief executive, says: “Handing over a penny to a tenant might seem a bit pointless, but
we’re pleased to see that landlords are adhering to the new legislation, no
matter how small the refund is.

“The legislation now means tenants can easily see what any given property will cost them with no hidden costs.” Find out more about how the deposit cap works.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 1p go £4,880: Landlords begin returning deposits as cap regulations kick in | LandlordZONE.

View Full Article: 1p go £4,880: Landlords begin returning deposits as cap regulations kick in

Fire safety – making sure your tenants are safe

admin    Uncategorized     agents

In the year ending June 2019, 215 people lost their lives due to house fires – including tenants in rented homes. In response to this the Home Office has re-launched its fire safety campaign – including information and advice for landlords and tenants. Landlords’ obligations As a landlord you must: make sure all gas and […]

The post Fire safety – making sure your tenants are safe appeared first on RLA Campaigns and News Centre.

View Full Article: Fire safety – making sure your tenants are safe

When will landlords face greater regulation following landmark Lord Best report?

admin    Uncategorized     agents

Industry players gathered at parliament last night to find out the latest news about greater regulation of the private rented sector, including LandlordZone.

Many landlords may not realise it but they and many of the other players within the private rental market face significantly higher oversight when the Johnson government implements the recommendations of a much talked-about report, most likely in late 2021.

A gathering was held last night at Parliament to bring together all the major parties that will be affected and LandlordZone was there to find out what progress has been made.

The event, which was sponsored by Citizens Advice and was attended by all the major landlord, estate agent and leasehold agents associations, redress schemes as well as the Ministry of Housing, heard from the report’s author Lord Best (pictured, above right), who said the government has yet to commit to a date for moving forward, but was still keen on policing the private rented market better.

“This is a well thought out blueprint for the robust regulation of the sector and brings together all the elements for a safe, professional and reputable industry in which faith can be restored by consumers,” says Sean Hooker (pictured with Lord Best), Head of Redress at the Property Redress Scheme.

Despite the government’s commitments to turn Lord Best’s 50+ proposals into legislation, the event was conspicuous by the absence of the current Housing Minister, Robert Jenrick.

But Lord Best said this was not indicative of the government’s lack of support for the proposals and that the weight of support by the industry for regulation was compelling.
“He was very hopeful the current administration would act accordingly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – When will landlords face greater regulation following landmark Lord Best report? | LandlordZONE.

View Full Article: When will landlords face greater regulation following landmark Lord Best report?

Right to Rent checks carried out by Agents

admin    Uncategorized     agents

The property agent did the Right to Rent checks on a tenant when they initially issued a 12-month tenancy contract to the tenant. The property is fully managed by the Agent. At this point the tenant’s visa did cover for full first 12-month tenancy contract.

The post Right to Rent checks carried out by Agents appeared first on Property118.

View Full Article: Right to Rent checks carried out by Agents

Using a property investment LLP for school fees planning purposes

admin    Uncategorized     agents

Our client was a higher rate tax-payer and also owned four properties in his own name with the benefit of mortgages. Accordingly, he was affected by the restrictions on finance cost relief.

His wife is also a higher rate tax-payer

The post Using a property investment LLP for school fees planning purposes appeared first on Property118.

View Full Article: Using a property investment LLP for school fees planning purposes

Exclusive: Airbnb slams lettings industry report into short lets boom as ‘flawed’

admin    Uncategorized     agents

Lettings agency industry association ARLA Propertymark claims its research shows Airbnb is damaging traditional rental market.

Airbnb has dismissed the findings of a new report that predicts nearly half a million properties could be left unavailable in the
private rented sector as more landlords exit the market and move into
short-term lets.

ARLA Propertymark’s survey of 1,000 landlords
found that 2.7% had moved from having long-term tenants, while 10% said they were likely to consider a
switch to short-term lets.

Based
on this, ARLA says the number of unavailable properties would reach 470,000 if
those landlords who said they were ‘very or fairly likely’ to leave did leave.

In response to questions from LandlordZone, an Airbnb spokesman has
slammed the report as, “flawed conclusions produced by an industry body working
to protect its interests”.

He says: “Most hosts are not professional landlords, and more than
half say the additional income they earn from occasionally sharing their space
helps them afford their home.” 

ARLA’s Impact of
Short-Term Lets report says thousands of landlords faced with
burdensome regulations are quitting the private rented sector to offer
short-term lets instead. 

It fears the shift will have a significant
impact on the country’s already stretched housing supply and, because fewer
properties are available for long-term rent, believes a rise in rent costs
would be inevitable.

However, the UK Short Term Accommodation Association
says there is no study which demonstrates a concrete link between short-term
rentals and housing supply in the UK.

“As long as amateur short letting is only done in properties
which are lived in for some portion of the year, there will be no impact on the
long-term housing supply as these homes are not available for long-term letting,”
adds chair Merilee Karr.

Airbnb is currently conducting a roadshow around the
UK and promises to collaborate with hosts, communities and politicians across
the UK on proposals for a simple statutory registration system for short-term
rentals.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Exclusive: Airbnb slams lettings industry report into short lets boom as ‘flawed’ | LandlordZONE.

View Full Article: Exclusive: Airbnb slams lettings industry report into short lets boom as ‘flawed’

These are the nation’s £1m+ property sale hotspots

admin    Uncategorized     agents

The latest research by lettings and sale agent,
Benham and Reeves, has revealed where the most £1m+ properties are selling as a
percentage of total transactions, despite the influence of market uncertainty
which has been most prevalent in the upper tiers of the property market.

Benham and Reeves pulled the latest data from
the Land Registry for the last year, breaking down transactions by price to
find which areas had seen the most market activity at the £1m price point and
above, £5m and above and £10m and above, as well as how this translated as a
proportion of all transactions during the same time period.

The data shows that transactions at £1m and
above accounted for 1.8% of all transactions and despite the capital being
worst hit by political uncertainty and buyer hesitation, London remains the
£1m+ playground for high-end homebuyers, accounting for 13 of the top 15 areas
where sales at £1m or above accounted for the highest percentage of all
transactions.

Of course, prime central London topped the table
with Kensington and Chelsea remaining the most prestigious corner of the
capital, seeing no less than 59% of all property sales coming in at a mill or
more.  

Westminster was home to the second-highest
proportion of high-end property sales, with 46% selling for £1m+. Camden (35%),
the City of London (34%) and Hammersmith and Fulham (32%) also ranked high.

Other boroughs to make the top 15 included
Richmond, Islington, Southwark and Merton.

Outside of London, Elmbridge and South Bucks
saw 21% of transactions exceed £1m, with Chiltern (12%), St Albans (10%),
Windsor and Maidenhead, Three Rivers and Guildford also hitting 9%.

It’s a similar story at the higher price
brackets although a more marginal percentage, with £5m+ transactions accounting
for just 0.04% of all transactions, while this dropped to 0.01% for
transactions of £10m+.

While Kensington, Westminster and Camden placed
with the highest proportion of transactions as a percentage of all transactions
at both the £5m+ and £10m+ price brackets, Runnymead was a new entry with the
area ranking fourth in both price brackets.

Director of Benham and Reeves, Marc von
Grundherr, commented:

“There’s no denying that month after month of
uncertainty surrounding Brexit had caused the market to grind to stutter and
at the very top end, where even the smallest margins can equate to substantial
sums of money, there had understandably been a sharp drop in buyer
interest.

While this has seen transaction levels fall in
the upper price tiers, there hasn’t been a total exodus and as our research
shows, London, in particular, has remained a very attractive proposition to the
wealthiest buyers.

Now that we’ve seen the bottom of the market
and a Boris bounce has opened the flood gates of both buyer and seller
activity, domestic and foreign investment in the most valuable pockets of the
market should start to regain momentum.

Those that did commit to a purchase over the
last year have done well in terms of value for money, as the top tiers of the
market are often those susceptible to the most dramatic swings in price once
the cogs do start to turn, and will no doubt start to climb in price as the
year plays out.” 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – These are the nation’s £1m+ property sale hotspots | LandlordZONE.

View Full Article: These are the nation’s £1m+ property sale hotspots

Failed EPC Due to assumed no insulation?

admin    Uncategorized     agents

I am at a loss where to go to rectify my EPC rating. The engineer that came out to assess has rated my flat (converted Mill in 2007) a G3. He has given zero stars for Insulation walls & Ceiling.

The post Failed EPC Due to assumed no insulation? appeared first on Property118.

View Full Article: Failed EPC Due to assumed no insulation?

Tax implications of remortgaged loan used for BTL purchase?

admin    Uncategorized     agents

15 years ago, I purchased a BTL property for £300k and financed this with £130K re-mortgage against my home and a £170k BTL 20 year interest only mortgage, (my home mortgage is also an interest only).

For the past 15 years I have been claiming tax relief on both mortgages

The post Tax implications of remortgaged loan used for BTL purchase? appeared first on Property118.

View Full Article: Tax implications of remortgaged loan used for BTL purchase?

Buy-to-let investors should be stripped of empty properties, say Labour leadership hopeful

admin    Uncategorized     agents

MP, Emily Thornberry makes comment during fiery speech at hustings even in Bristol over the weekend.

Labour leadership hopeful, Emily Thornberry has revealed during a hustings event that she believes buy-to-let investors who buy property in the UK and then leave it empty should be banned from the market.

Her comments over the weekend came during a hustings in Bristol attended by the other three candidates in the race Keir Starmer, Rebecca Long-Bailey and Lisa Nandy.

Each candidate was allowed 40 seconds to answer questions from the floor at the event and Thornberry came out fighting when asked about her approach to the housing market and ‘empty investment apartments.

“As for all these empty flats [marketed at] people in China who think ‘shall I buy a gold bar or shall I buy a flat in Bristol, I say ‘no’,” she said to the packed hall.

“You’re not allowed to buy a flat in Bristol as an investment and keep it empty; if you do then you lose it. It’s about inter-generational justice.”

Thornberry was on combative form at the event, largely because she’s the only candidate among the four to yet gain enough either trade union or Labour membership backing.

Her comments, it is safe to assume, were designed to appeal to the younger, Momentum (i.e. Corbyn-supporting) younger Labour membership for whom Britain’s ‘broken’ housing market is a hot issue.

Thornberry has been the MP for the Labour safe seat of Islington South and Finsbury since 2005 and has limited form on housing, although she was an enthusiastic opponent of Boris Johnson when he was mayor of London, fighting his decision to allow developers to build luxury apartments all over the capital without the required affordable housing ratios required under planning regulations.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Buy-to-let investors should be stripped of empty properties, say Labour leadership hopeful | LandlordZONE.

View Full Article: Buy-to-let investors should be stripped of empty properties, say Labour leadership hopeful