The Licensing of HMOs (Prescribed Description) (England) Order 2018

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Hi All, Just had this piece of new legislation pointed out to me by a client. Although I heard Sajid Javid’s sabre rattling around Christmas, I hadn’t heard much more on it since. The new piece of legislation, made 20/02/2018 and laid before parliament 23/02/2018 appears to be coming in to force 01/10/2018 and would also appear to have been rushed through (was anyone aware of a consultation on this?)

http://www.legislation.gov.uk/uksi/2018/221/made

It appears to be removing the 3 floor limit from the original HMO regulations.

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Rental income and stamp duty or limited company

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I have one property rented out since I down graded to a small flat in August 2016 only. I am thinking of opening limited company as people say that is more tax sufficient, and asset is owned by the company rather than myself which can paid for my care in old age.

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Benefit Tenanted Properties could be eligible for energy grants

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Energy Efficiency:

Properties occupied by tenants on Housing Benefit could be eligible for energy efficiency grants to bring properties up to current standards ahead of the MEES (minimum energy efficiency standards) directive, effective from April this year.

The government is allocating a limited amount of funding for housing associations and private landlords with benefit tenants, where the current EPC rating of the property is E or below.

The grant is allocated to the tenant not the landlord, so successfully obtaining funding in this way would entail a certain amount of cooperation between the landlord and the tenant.

The scheme applies to houses only, not flats. UK energy suppliers will be contracted to carry out improvements, depending on the location and type of property, but the tenant will not need to be an existing customer of the supplier.

The scheme is a part of the Home Heating Cost Reduction Obligation (HHCRO) and the “Affordable Warmth Grant” aimed at dealing with fuel poverty in across the UK.

For example, installing a new A-Rated Boiler can reduce carbon emissions and can save tenants up to £300 per year on fuel bills for heating and hot water, and with good insulation the whole package can save the tenant considerably more.

Potential improvements covered by these grants include:

• Loft insulation
• Cavity-wall insulation
• Hot-water-tank insulation
• Draught proofing
• Gas, electric or oil central heating and hot water

Tenants can apply for the grant if they are receiving any of the following benefits:

• Working Tax Credit – with an income of less than £16,040 and which must include a disability element
• Child Tax Credit – with an income of less than £16,040
• Attendance Allowance
• Disability Living Allowance
• Income Support – which must include a disability premium
• Housing Benefit – which must include a disability premium
• Council Tax Benefit – which must include a disability premium
• War Disablement Pension – which must include mobility supplement or Constant Attendance Allowance
• Industrial Injuries Disablement Benefit – which must include Constant Attendance Allowance

Improving efficiency of a property will benefit both the tenant and landlord, so it’s in both their interests to work together to see if they can obtain the funding for this.

If you think your tenant is entitled to receive this grant, you can find out more information on the Warn Front Website – https://www.gov.uk/browse/housing-local-services/landlords

There is limited funding for this and the “Warm Front Scheme” is funded year by year on a set Government budget. The budget is usually taken up quickly because of the high demand, so the money may not always be available. However, it worth a try to get it and if successful landlords and tenants will benefit substantially by reducing the cost of meeting the compulsory MEES standards.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Benefit Tenanted Properties could be eligible for energy grants | LandlordZONE.

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Mick Roberts on BBC Radio Nottingham

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Our Own Property118 member Mick Roberts appears on BBC Radio Nottingham’s Mark Dennison Show. Mick tells it how it is in his own inimitable style and how Selective Licensing is going to directly affect his Benefits Tenants.

Click Here for BBC Iplayer

Mark Dennison starts talking about Licensing @ 1hr 12min and 30 seconds.

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Universal Credit deficit on rent?

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I have had a tenant move out of a property recently and because it was 2 weeks into the month I was told that I would not get the rental payment.

The Universal Credit team told me that if it had been 3.5 weeks into to the month I probably would of got the rent.

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Upad launches “Pay on Success” letting pricing model

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Online Lettings:

Upad.co.uk, the UK’s leading online letting agent, has revamped its payment options with the launch of ‘Pay on Success’ for its premium offering.  The move comes in direct response to client feedback.

“Pay on Success” is the most comprehensive of Upad’s pricing options and is intended to appeal to the less experienced or first-time landlord.  It includes a premium Rightmove listing with professional photography, as well as all the necessary paperwork to ensure the tenancy meets all compliancy requirements.  Importantly, the £399 fee is only payable once a tenant has been secured and the referencing process starts.

James Davis is founder and CEO of Upad and himself an experienced landlord with a large portfolio of rental properties.  He explains the rationale behind the shift:

“We continually review our service to landlords.  This ensures that the options we provide not only meet their current needs but exceed expectations and allow us to stand-out in comparison to traditional high street agents.  The launch of our ‘Pay on Success’ package is one such innovation.

“Landlords don’t come in one size and we’ve always offered a variety of options to reflect this”

Upad was founded ten years ago and from day one has been committed to providing landlords with a fresh approach to operating their property portfolios – one which stands in stark contrast to many of the more traditional high street operations.  It’s a model which appears to work with landlord registrations increasing all the time.  James continues:

“In the final quarter of 2017, the number of landlords registering to use Upad’s services grew by 20% compared to the same period a year before and that’s at a time when we’re being told landlords are withdrawing from the market!

“The introduction of ‘Pay on Success’ has already been very positively received.  Early performance data shows that this package is proving twice as popular as the ‘Upad Complete’ offer which it replaced – a fact which we believe demonstrates how we deliver what landlords really want.

“Legislative changes may have deterred some landlords, but those with a strategic, long-term view who wish to remain in control of how they operate their portfolios, are demonstrating their commitment to the sector by choosing innovative, cost-effective, services such as those offered by Upad.”

Full details of all the pricing options offered by Upad can be found at: https://www.upad.co.uk/products-and-pricing

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Upad launches “Pay on Success” letting pricing model | LandlordZONE.

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Mandatory Electrical Checks a Step Closer

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Electrical Safety Checks:

Views and comments are now being sought on the recommendations made by the Private Rented Sector Electrical Safety Working Group following its initial consultation.

The working group has recommended introducing 5 yearly mandatory electrical installation checks for private rented property and that other safety checks (landlords / agents checking appliances between tenancies) be encouraged as good practice and set out in guidelines.

This ongoing consultation is inviting views and comments from interested parties to gather additional evidence on the recommendations made by the working group. The newly titled Ministry of Housing, Communities & Local Government (MHCLG) says that any legislation brought forward as a result of this consultation will be subject to the appropriate Parliamentary approval.

The final outcome of the consultation will be linked to the conclusion of Dame Judith Hackitt’s Independent Review of Building Regulations and Fire Safety following the Grenfell fire incident, due in the spring this year.

The plan is that five-yearly electrical installation and safety checks for all private rented properties will become mandatory, and, similar to the gas checks, safety certificates will be issued to tenants to show that the checks and any necessary repair work have been completed.

The new Housing Minister Heather Wheeler has launched a follow on consultation on the proposals which will also seek to decide how best to enforce the strengthened safety regime, on the setting up of a private rented sector electrical testing competent person’s scheme to ensure properly trained experts undertake this testing, and it seems likely that penalties will be along the lines of other landlord failings of up to £30,000.

It is argued that the checks will make properties safer for tenants and will also safeguard landlords’ investments by helping prevent fires.

Available statistics show that tenants in private rented sector housing face a greater risk that home owners of being involved in an electrical incident, electrical shock or house fires due to electrical faults in the wiring and in appliances.

Powers provided for in the Housing and Planning Act 2016 will allow the department to introduce regulations which will provide for these additional measures.

These come on top of a slew of recent initiatives and potential new rules aimed at tackling rogue landlords and improving the quality of private rented properties:

• Automatic fines by local authorities of up to £30,000 and banning orders for rogue landlords for seriously breaching various regulations
• Rent recovery fines
• A Bill giving tenants the right to take legal action against landlords for unsafe properties.
• The government has said it has committed to changing the law to require all landlords to join a redress scheme making sure that every tenant has access to effective dispute resolution.

Heather Wheeler has said:

“Everyone deserves a safe place to live. While measures are already in place to crack down on the minority of landlords who rent out unsafe properties we need to do more to protect tenants,’ said Wheeler.

“That’s why we introduced powers to enable stronger electrical safety standards to be brought in along with tough penalties for those who don’t comply. We want to ensure we strike the right balance between protecting tenants while being fair for landlords. So I want to hear from as many people as possible whether these independent recommendations are the right approach.”

Electrical safety in the private rented sector – more information here

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Mandatory Electrical Checks a Step Closer | LandlordZONE.

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Selective Licensing Scheme ‘Additional Powers’ Ruled Illegal By Court of Appeal

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News 24 has reported that the Court of Appeal has ruled that councils cannot use selective licensing conditions to impose new standards on private rented homes.

Paul Brown, a landlord in Accrington, is challenging Hyndburn Council which sought to use its selective licensing scheme in certain areas of the borough to force the installation of carbon monoxide detectors and also to carry out electrical safety checks and implement their findings.

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Do you have student accommodation or developments to sell?

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Lettingsupermarket.com are assisting in the representation of a large Investment Group based in the U.S. who specialise in the acquisition of Student Accommodation.

They currently have over £300m invested in Student Accommodation developments in the U.S., with over 3,000 units across Maryland

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BBC Panorama attacks Section 21 ‘no-fault evictions’

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Once more, last night, landlords watched with trepidation as the BBC presented a so-called investigation into the use of Section 21 notices in the private rented sector.

The inauspicious title: ‘Evicted for no reason,’ warned us that we should expect the usual bias and inaccuracy as Section 21s are not served for no reason.

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