Universal Credit and private landlords

admin    Uncategorized     agents

The introduction of Universal Credit has been a hot topic for the various landlord forums over the past few months. Universal Credit is replacing the myriad of benefits currently available and replacing it with one single all-encompassing payment.

This Universal Credit payment will incorporate the current system of payment of various benefits including Housing Benefit

The post Universal Credit and private landlords appeared first on Property118.

View Full Article: Universal Credit and private landlords

Penalised by IF for renting?

admin    Uncategorized     agents

We rented our property to tenants when moving overseas six years ago and have never missed a payment. Intelligent Finance, our mortgage provider, charged an extra 1% on our mortgage as a risk premium under the terms of our mortgage.

The post Penalised by IF for renting? appeared first on Property118.

View Full Article: Penalised by IF for renting?

The Property Investor & Homebuyer Show – ExCeL London – April 2018

admin    Uncategorized     agents

The Property Investor & Homebuyer Show is the UK’s largest and longest running property expo – and a “MUST ATTEND” event for anyone serious about making money from property investment.

It also creates the largest single annual gathering of UK Landlords – and service providers – under one roof.

Event: The Property Investor & Homebuyer Show
Location: ExCeL London
Open Dates: Friday 20^th & Saturday 21^st April 2018
Open Times: Friday (10.00 – 18.00) | Saturday (10.00 – 17.00)
Entry Charge: £ zero

It is the ideal place for networking, obtaining reliable and up to date property market information and, of course, property to buy. It is designed to cater for all levels of property experience – everyone from the novice to the seasoned investor will find an answer to their questions.

With 120+ exhibitors expected and 75+ expert seminars, presentations and debates scheduled, you can identify the expertise and advice you need to make the right decisions on your specific area of investment interest.

In addition to UK investments, approximately 30% of the floor space will be dedicated to International property and provides the opportunity to compare established overseas markets such as USA, Spain, France, Dubai & Cyprus with emerging/newer locations e.g. South East Asia, Nigeria & Ghana. International agents and developers will be present alongside specialists who can advise on the process of investing overseas.

As always the show is FREE to enter – but visitors need to register prior to entry.

Register using the link below:
Register Now

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The Property Investor & Homebuyer Show – ExCeL London – April 2018 | LandlordZONE.

View Full Article: The Property Investor & Homebuyer Show – ExCeL London – April 2018

Applying for possession order and leave to transfer up at the same time

admin    Uncategorized     agents

A landlord can concurrently apply for a possession order and leave to transfer up to the High Court for enforcement. This can and should be done if you feel your property is at risk from tenants who may wish to destroy or damage your property as there can be a long wait for a County Court bailiff to attend to your eviction.

The post Applying for possession order and leave to transfer up at the same time appeared first on Property118.

View Full Article: Applying for possession order and leave to transfer up at the same time

New team of council detectives to crack down on unlawful Airbnb nightly letting

admin    Uncategorized     agents

Westminster Council in London is looking to crack down on property owners unlawfully letting their homes on a nightly basis using platforms such as Airbnb for more than 90 days per year.

Airbnb lettings in Westminster have more than doubled in the last two years to over 3,600 and rising with nearly 1,500 of these being investigated for unauthorised short term letting instead of on a minimum 6month AST contract.

The post New team of council detectives to crack down on unlawful Airbnb nightly letting appeared first on Property118.

View Full Article: New team of council detectives to crack down on unlawful Airbnb nightly letting

Unanimous MPC vote to keep Bank rate at 0.5%

admin    Uncategorized     agents

The Monetary Policy Committee (MPC) today unanimously voted to keep the Bank of England Base Rate at 0.50% and maintain the current levels of Quantitative easing. Good news at least for borrowers.

With inflation now at 3.1% it remains to be seen how long it will take for the fall in the Sterling exchange rate cost implications on imported goods and services to fully push through the economy.

The post Unanimous MPC vote to keep Bank rate at 0.5% appeared first on Property118.

View Full Article: Unanimous MPC vote to keep Bank rate at 0.5%

Lending Changes for Landlords by UK Finance

admin    Uncategorized     agents

Portico London estate agents recently put on a sell-out investment seminar, where a host of industry experts gathered to share their insight on some hot property topics.

One of the first experts to speak was Carla Sateriale, Senior Policy Advisor for UK Finance.

The post Lending Changes for Landlords by UK Finance appeared first on Property118.

View Full Article: Lending Changes for Landlords by UK Finance

BTL Crisis Looming think Landlord Experts

admin    Uncategorized     agents

Tax Hikes Hitting Landlords:

Chris Town, who is an experienced Leeds landlord and vice chair of the Residential Landlords Association, thinks that a crisis is looming in the Private Rented Sector (PRS) as landlords abandon the sector following tax rises, higher costs, more stringent regulations and mortgage restrictions.

Some experts in the industry think that the government could not have done more to discourage the small-scale private landlord and that the backlash from this will be an even bigger crisis in the rental sector as rentals become more scarce and rents rise.

Sharon Dale writing in the Yorkshire Post reports that tax changes and the proposed ban on tenant fees will create a “perfect storm” that looks set to batter landlords even further, reduce the number of homes to let and push up rents.

On top of that the government’s decision to withdraw mortgage interest tax relief on buy-to-let properties, over a four year period, which started this April, plus the extra 3% stamp duty on buy-to-lets, have already had an their impact.

The expected ban on letting fees, most likely to come in 2018, will affect landlords, agents and inventory clerks alike, with some landlords likely abandoning agents altogether, and more agents doing their own inventories. The result is likely to be more private landlords charging tenants for these extra services such as tenant checks and inventories, and passing on the costs by way of increased rents, where the market will bear it.

Chris Town told the Yorkshire Post:

“New rental property purchases are down by a fifth and some landlords are leaving the sector, especially those who have a high loan to value mortgage. The numbers just don’t add up when you take into account the cost of running and maintaining a property. The other major issue with the loss of mortgage interest relief is it can push landlords into a higher tax bracket.”

Mr Towns, continued:

“Landlords are also being much stricter about who they let to as they can’t afford rent arrears. That means they won’t take on higher risk tenants, such as those on benefits, so it is the poor that suffer.”

Another Leeds landlord, the Halliday family, after 60 years of building a rental property portfolio, is said to have stopped buying BTL properties due to the recent tax changes. Before these changes came in landlords were able to deduct mortgage interest from their rental income before calculating their tax liability. However, since last April and until 2020 this interest payment relief is being gradually phased out. Instead a “tax credit” worth 20 just per cent (the basic rate of tax) can be set against mortgage interest.

This means that some landlords are going to see their tax bills spiral if they are pushed into a higher rate tax band, and their rental business profits will tumble. This will make it increasingly difficult for them to plough back profits into keeping up the maintenance and safety standards of their properties.

Richard Halliday told the Yorkshire Post:

“It’s becoming increasingly difficult to be a landlord, which is why we have stopped buying properties. The extra three per cent stamp duty alone takes 12 to 24 months to recoup and then there’s the withdrawal of mortgage interest relief, the 28 per cent capital gains tax when you sell and the prospect of paying fees for lettings checks. Tenants are also going to be hit as landlords increase rents to cover overheads. Everyone is a loser.”

The Residential Landlords Association (RLA) has been calling on government for some time now to avert a rentals crisis by reversing the tax changes. This is what has happened in Ireland in the 1990s when the government there saw the affect their tax hike was having on private landlords.

“The lesson from Ireland is that punitive taxes don’t help and tenants are the victims. Sadly, the Treasury doesn’t seem interested as it simply wants the tax receipts. We have even suggested meeting them halfway by offering longer, fixed-term tenancies and agreeing to take benefit claimants as tenants in return for being able to claim mortgage interest tax relief,” says Mr Town.

Director of Yorkshire letting agents Linley and Simpson, has said:

“At a time when we now need this private investment more than ever, there is a real risk of shutting the door on a rich source of extra rental properties that the region craves. The risk is that any shortfall will further limit choice and supply for tenants, and trigger more upward pressure on monthly rents.” Instead of dampening this enthusiasm for buy-to-let, he believes that the government should be incentivising it.

“We are significantly adrift of the buy-to-let peak witnessed a decade ago and there is a noticeable absence of first-time investors who have that appetite for buying-to-let.”

He adds that the impact of mortgage interest relief withdrawal has yet to fully register with some landlords.

“One of the litmus tests will be in the next few weeks when investors file their tax returns and see the impact on their bottom line for the first time. It remains to be seen whether it will prompt them to think twice this year, or next year, or the year after when the full force of the increases takes hold.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BTL Crisis Looming think Landlord Experts | LandlordZONE.

View Full Article: BTL Crisis Looming think Landlord Experts

Here’s My Bitcoin Strategy – What’s Yours?

admin    Uncategorized     agents

Some say that each Bitcoin might be worth $5,000,000 in years to come!

Well if they are right I will settle for owning just one thank you very much

Corbyn wrong on Private Rented Housing

admin    Uncategorized     agents

Longer Tenancies:

Labour leader, Jeremy Corbyn, today painted an inaccurate picture of the private rented sector.

During Prime Minister’s Questions he referenced a woman who had lived in her private rented home for ten years who faced having to leave her property. He used it to call for three year tenancies and warned that tenants were living in fear of eviction.

Official statistics however show that private sector tenants have lived in their homes for an average of over four years.

Figures from the Ministry of Justice also show that in the most recent period for which data is available, 62 per cent of all claims to repossess a property by landlords were in the social rented sector, compared to 16 per cent in the private rented sector.

Further figures show that just a tenth of all tenancies in the private rented sector are ended by a landlord or letting agent.

RLA Policy Director, David Smith, commented:

“The figures speak for themselves. The vast majority of tenancies are ended by the tenant, and not the landlord and the very fact that the person quoted in today’s exchanges has lived in their rental home for ten years shows the sector is already providing long term stability.

“Many tenants have a perceived fear of eviction because tenancies will often be on the basis of six or one year periods which are, in the vast majority of cases, renewed. It is disappointing that the Leader of the Opposition has needlessly played to such fears.

“We welcome the Government’s plans to consult on barriers that make it difficult to offer longer tenancies which will provide an important opportunity especially to address the problem of mortgage lenders preventing landlords from offering them.”

The RLA represents over 50,000 private sector residential landlords in England and Wales.

• The English Housing Survey headline report for 2015/16 can be accessed here Page 18 notes: “for private renters the average length of residence was 4.3 years.”
• The Ministry of Justice’s latest statistics on mortgage and landlord repossessions in England and Wales for July to September 2017 are available here Page 5 notes: “The majority (62%) (21,179) of landlord possession claims were social landlord claims, 22%, (7,621) were accelerated claims and 16% (5,372) were private landlord claims.”
• The English Housing Survey Private rented sector report for 2015-16 can be accessed here Page 21 notes: “When asked about their most recent move, most private renters said that their last tenancy ended because they wanted it to (73%). A tenth (11%) said that their landlord or agent ended the tenancy.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Corbyn wrong on Private Rented Housing | LandlordZONE.

View Full Article: Corbyn wrong on Private Rented Housing