IMLA blame 80% decrease in BTL investment on government policies

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Intermediary Mortgage Lenders Association (IMLA) figures show that Buy to Let investment has fallen by 80% since the 2015 Summer Budget Section 24 mortgage interest relief restrictions were announced.

IMLA figure indicate Buy to Let lending in 2015 totalled £35 billion and last year this fell to only £5 billion.

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Sole to joint to spread tax and Stamp Duty liability?

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I have two buy two lets on my sole name, 1x HMO and 1x single let.

With the new tax changes to the property market I am looking add my wife’s name on to both properties to joint tenants to benefit from her tax allowance.

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The Menace that can Undermine your Investment

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 Japanese Knotweed:

Many landlords are familiar with Japanese Knotweed and the menace that the plant poses for property owners.

Typically, the plant is in full bloom in the summer and is characterised by its unusual zig zag stem growth, its heart shaped leaves and its white clustered flowers. The stems are one of the defining features of the plant and when the stems are split open the stems appear hollow.

In the winter (see image below) the leaves and flowers die back but the zig-zag shaped stems remain. What makes the plant special is its hardiness and its resistance to attempts at removal or treatment. The disposal of the plant away from the contaminated land can now only be carried out by licensed removal contractors at licenced landfill sites.

Individuals who find themselves in the unenviable position of having Japanese Knotweed on their land will find that sellers are put off from purchasing the land without a formal treatment plan in place.

Mortgage lenders have also been historically unwilling to lend when there is a presence of Japanese Knotweed on the mortgaged property’s land. Seller’s are obliged to notify prospective purchasers of the existence of Japanese Knotweed on the land of the Property being sold at question 7.8 on the Seller’s Property Information Form (known as form TA6).

The plant has been the subject of fierce litigation in 2017 and the Cardiff County Court found in favour of two property owners who lived next to a railway track controlled by Network Rail. Japanese Knotweed was found to be growing on the land that was controlled by Network Rail and that the presence of the Japanese Knotweed had had a detrimental impact on the value of neighbouring properties (i.e. the properties owned by Waistell and Williams).

In February 2017 the Cardiff County Court gave its decision in the joined case of Williams v Network Rail Infrastructure Ltd [2017] UK CC (the case is also known as Waistell v Network Rail Infrastructure Ltd). Network Rail was ordered to compensate the Claimants and the Judgment awarded the Claimants’ the cost of the knotweed surveys, treatment programmes, insurance backed guarantees, the diminution in the value of the Claimants’ properties after the treatment had occurred and general damages for loss of amenity and interference with quiet enjoyment.

Since that decision Network Rail have appealed to the Court of Appeal in Central London and a further hearing looks set to be heard in 2018.

When the case is finally heard by the Court of Appeal we will be able to answer questions that arise in Japanese Knotweed disputes, namely:

1. Does the presence of Japanese Knotweed on a neighbouring property’s land constitute an actionable interference? (i.e. even where there is no physical damage to the claimant’s property)
2. What should the appropriate levels of compensation be in these cases? (diminution in property value, damages for loss of amenity and interference with quiet enjoyment)

The Plant in Winter

What is clear is that the days of allowing these non-native, invasive plants to grow unchecked on land are over. If you live next to a neighbour who is allowing Japanese Knotweed to grow on their land, you need to contact specialist Japanese Knotweed Solicitors get clear guidance on the advisable course of action.

Author – Tom Lathom of Summerfield Browne Solicitors – www.summerfieldbrowne.com

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The Menace that can Undermine your Investment | LandlordZONE.

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Knight Knox – Investor Insight Workshop – Sheffield, 21st February,

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Knight Knox is holding its latest Investor Insight Workshop in Sheffield on the 21^st February, and if you are in need of expert property advice then this could be the event for you.

Whether you are you an investor looking to expand your portfolio; a landlord searching for a reliable lettings agent; or a potential homeowner who needs mortgage advice; the information you need to confidently take your next step in the world of property will be available at this free event at the Leopold Hotel.

The property industry can be a daunting place and it is no surprise that many people need help before making the correct decision. Knight Knox’s expert consultants will be on hand to provide advice on everything from mortgages to property management. No question is too big or small.

In addition there will be the chance to learn more about Knight Knox and Qualis Development’s first bespoke scheme located near Kelham Island, Great Central, which looks to redefine the boundaries of Sheffield City Centre.

Join Knight Knox anytime between 12pm and 8pm on the 21^st February to start taking your next step. To request our free ticket or for further information, please email exhibitions@knightknox.com

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Knight Knox – Investor Insight Workshop – Sheffield, 21st February, | LandlordZONE.

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Avoiding squatters in your property

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Commercial Property:

What can property owners and landlords to remove squatters legally from a commercial property?

Here’s some advice from Simon Broadbent, CEO of Secure Empty Property.

Commercial properties have been put at more risk, says Mr Broadbent, from squatters since 2012. This situation has arisen since the law making squatting in residential properties a criminal offence was put into effect.

Now, while residential property owners are able to legally keep squatters out of their buildings, commercial property owners have had to deal with an influx of unauthorised occupiers that they cannot as easily get rid of.

Currently, squatting in non-residential buildings is still a civil law matter rather than a criminal one, which means that the property owner has to go to court in order to have the issue resolved.

Obtaining a summary possession order costs £175, to just issue the application, and landlords can expect to take back possession of the property anything from 10 days to four weeks. This timescale takes into account court hearings and bailiff warning and enforcement, although if there is risk of damage to the property this process can be conducted via the High Court, which is much quicker.

If you’re looking for a quicker turnaround, then you can obtain an Interim Possession Order, but it can only be used within 28 days of you becoming aware of the squatters occupying your property.

An IPO can be more complex as it is only an interim measure while waiting for a hearing, and the application may even be overturned following the hearing. It is also reliant on specific timescales and other technicalities, which can derail the entire application and process if not followed to the letter. It is also a more expensive procedure for a result that is only “potentially” faster than a summary possession order.

In theory the police can remove unauthorised occupiers if they have committed criminal damage, for instance by forcibly breaking into the property or damaging the inside in some way. While squatting in the property is not a crime, damaging it is. The police can also take action if the unauthorised occupants have stolen from the property, used any of the utilities without permission, dumping waste otherwise known as fly-tipping, and of course ignoring court notices to leave if your court order goes through. However, often the police are reluctant to act before a court order is issued.

In order to avoid damage to your property by squatters breaking in, and in order to avoid costly legal fees in court applications and hiring a lawyer, Mr Broadbent recommends taking preventative measures.

• Investing in protecting your commercial property from being entered, either by force or through lack of security, can save you money and grief later on down the line.
• Boarding up properties to prevent entry or access with security doors and screens, alarms and CCTV cameras, and even manned security.

Secure Empty Property Chief Executive Simon Broadbent says, “Squatting is a real headache for landlords. Not just the cost of their eviction but the damage they cause whilst in occupation and the hold-up to the owners plans for re-development or disposal. We urge property managers to mitigate these risks before they happen”.

Secure Empty Property was set up in 2012 by its Chief Executive Simon Broadbent, who has more than 25 years’ experience in the industry. https://www.secureemptyproperty.com

Squatting is when someone deliberately enters property without permission and lives there, or intends to live there. This is sometimes known as ‘adverse possession’.

Squatting in residential buildings (like a house or flat) is illegal and a criminal offence. It can lead to 6 months in prison, a £5,000 fine or both.

Anyone who originally enters a property with the permission of the landlord is not a squatter. For example, when tenants fall behind with rent payments they are not squatting if you continue to live there.

Although squatting in non-residential (commercial) property or land isn’t in itself a crime, it is a crime to break-in or cause damage to the property.

Squatting and the law

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Avoiding squatters in your property | LandlordZONE.

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Ombudsman Services withdraws from property sector

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Ombudsman Services (OS) has today announced that it will withdraw from complaints handling in the property sector as it launches a major dialogue with consumers to help tackle an ‘imbalance in power’ in the housing sector.

The not-for-profit organisation

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Misinformation, government propaganda, hyperbole and irrelevance!

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Dear Ms Beddoes

The Economist’s recent article above has just been brought to my attention.  It is a mixture of misinformation, government propaganda, hyperbole and irrelevance.

Struggles of the landed gentry
Britain’s buy-to-let boom is coming to an end

New regulations and a cooler market are causing landlords to sell up

My comments on excepts from it follow.

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Personal experience of portfolio remortgaging process?

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I’d like to hear about other landlords experience of remortgaging BTL Properties with the new portfolio landlord regulations bought in in September.

How much longer does it take to process? Some lenders appear to be asking for more evidence than others.

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Reply to serious flaws in BTL article by The Economist

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Dear Ms Beddoes.

I am writing with regard to the following article:

Struggles of the landed gentry
Britain’s buy-to-let boom is coming to an end

New regulations and a cooler market are causing landlords to sell up

Unfortunately

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Irish Airbnb hosts earning €3,500 a year

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Airbnb Rentals:

The Irish Times reports that around one-third of Irish Airbnb hosts were renting out second houses to the 1.2 million overseas guests visiting Ireland last year.

The practice, which has been common in England, is controversial as it takes housing stock from the private rental sector (PRS), especially in areas of high demand such as London and the south east.

In 2016, landlords letting through Airbnb earned almost doubled the return they could have received for the average long-term letting in Dublin, many earning up to €3,500 a year.

Airbnb has come in for criticism across the world for not “weeding out” those landlords who are renting their properties through the website, and other websites such as Gumtree, for short periods, without the necessary planning permission, and in some case in breach of their leases.

In its first Irish “insights” report*, Airbnb says there were 8,500 active listings for spare rooms and entire homes in Dublin, with a typical Irish host earning €3,500 a year.

Airbnb said that the number of guests coming to Ireland increased by 63 per cent in the past year, generating €506 million in “economic activity”. There are now said to be at least 400 listings in every region in Ireland. Around 70 per cent of hosts rent their primary home or rooms in their primary home through Airbnb, leaving the other 30% that letting second homes.

The report says that that 85 per cent of guests use its service as they “want to live like a local”. Airbnb claims that their service was used by 676,000 Irish people last year, an increase of 98 per cent. About 20 per cent of those used the service in Ireland.

Of the 22,800 listings nationwide, 51 per cent of those were for an entire home and 48 per cent for a private room. About 1 per cent of listings were for “shared rooms”. Airbnb says that the average number of nights rented out a year by a host was 37.

Statistics quoted by the Irish times, published in December by Airdna, a data analytics company, claims that almost 5,000 whole properties were being let across the republic for up to €800 a night. Trinity College Dublin are said to have earned €172,000 through short-term lettings in one year, and at least a dozen landlords were identified as earning more than €100,000 a year renting out homes through the site.

The Irish Department of Housing is using Airbnb as a focus for regulatory proposals to put a limit on the number of nights for short-term letting of flats, to 60 nights a year.

London has applied a 90-days per year limit to properties that are let short-term since 2016. In Amsterdam that is 60-days per year, and homeowners in Berlin have been banned completely from letting out whole properties to tourists, in order to keep standard let rents affordable.

*Here is the equivalent report for the UK: Airbnb UK Insights Report: Bringing You Home Sharing Region by Region

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Irish Airbnb hosts earning €3,500 a year | LandlordZONE.

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