Property Redress Scheme says redress for landlords should also include Rent to Rent firms

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Earlier last month the Conservatives announced that all buy-to-let (BTL) landlords will be forced to register with a redress scheme, as is already compulsory for all letting and estate agents.  The Property Redress Scheme (PRS) says an introduction of this kind should also be extended to include Rent to Rent (R2R) firms.

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Retrospective Stamp Duty after change of use?

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Suppose I decide to nominate a former rental property long in my possession as my main home within the permitted window for making the election.

My main home, purchased in 2016, now becomes my second home. I paid only the ordinary stamp duty when I purchased it

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Big Changes are expected in 2018 on HMO Licensing Rules

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New HMO Licensing Rules:

Since mandatory licencing was introduced by the 2004 Housing Act, and landlord with a property housing 5 or more unrelated occupants over 3 or more stories has had to apply for a licence from their local authority to operate a multi-occupied letting.

This licence sets down strict safety standards to which landlords must comply, and these premises are covered by two pieces of legislation specific to them:

• The Management of Houses in Multiple Occupation (England) Regulations 2006 – applies to all HMOs – Bedsits and shared houses.
• The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007 apply to buildings converted into self-contained flats not complying with Building Regulations 1991 or later.

However, another category of House in Multiple Occupation (HMO), which does not currently need a licence, and is not subject to quite the same strict safety criteria, is one of two stories or less which has 3 or more unrelated occupiers, commonly known as a house share. These are very commonly used for student housing, where students have their own rooms in a standard house, sharing bathroom and kitchen.

But, from next year (likely April) it is expected that there will be a much tougher regime for these types of lettings. This is when some new HMO licensing rules are expected to be introduced. This change is likely to come as a surprise to many landlords as it will almost certainly require them to do work in their properties.

Whereas existing mandatory licensing applies to around 60,000 properties up and down the country, the new rules could apply to many more than this. It is thought that around 175,000 properties will be involved in the new mandatory licensing scheme.

The New Mandatory Licensing Rules

These new rules, which are really aimed at rogue landlords who are abusing the lettings system, will impose tough new standards, with the objective of improving the overall standard of lettings in England. Minimum room sizes and rules governing refuse disposal and its storage are likely to be imposed.

A Government consolation exercise has been ongoing on proposals for England only to remove the 3-story rule and draw up limits on minimum room sizes. For example, it is proposed a room must be a minimum of 6.52 square metres for one person, and 10.23 square metres for two people. The measurement of these rooms cannot include areas where the ceiling is below 1.5 metres in height.

In this scenario it is proposed that mandatory licensing will apply to all shared homes with five or more occupants, if at least two of them are unrelated (from different households). This would also take in any flats above or below shops and other business premises meeting this criteria.

Any landlord applying for a license will need to prove that they are a “fit and proper person”, a test which is to be tightened up under these proposals, and will likely include criminal record checks. Fines for not obtaining a license for an HMO will possibly by unlimited.

The changes are intended to improve the overall standards and safety of lettings in England generally. There is likely to be a grace period for landlords to catch up with these standards.

Although more landlords with properties meeting the above criteria will pay more in fees to their local authority, working to improved standards in their properties may result in more favourable mortgage applications.

The government’s drive to improve letting standards comes after much bad press involving rogue landlords and health and safety, and combined with a national housing shortage, the government want to get “onto the front foot” with rented housing.

Housing and planning minister Gavin Barwell has said:

“In order to build a country that truly works for everyone, we must ensure that everyone has somewhere safe and secure to live.

“These measures will give councils the powers they need to tackle poor-quality rental homes in their area. By driving out rogue landlords that flout the rules of business, we are raising standards and giving tenants the protection they need.”

Fire Safety in Rented Premises

Houses in multiple occupation and residential property licensing reforms – here

Extending mandatory licensing of houses in multiple occupation and related reforms – here

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Big Changes are expected in 2018 on HMO Licensing Rules | LandlordZONE.

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Property118 Founder Sends Open Letter To Chancellor Philip Hammond

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Dear Mr Hammond

On behalf of the UK Private Rented Sector represented by the Property118 online community our requests are both simple and straight forward to implement and have no cost implications to HM Treasury.

Please help all UK buy-to-let landlords

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Property118 Tax Overwhelmed Pre-Budget

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The number of landlords who want to complete their business restructuring and associated tax planning before the Nov 22nd Autumn Budget has hit record levels for Property118.

We are now booking consultations for after the Budget on a first come first served basis.

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Will you be hit by the Budget?

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Hi, I write for The Guardian (I’m their money editor) and we’re keen to profile a landlord ahead of next week’s Budget – looking at the sorts of things that have affected you financially over the past year, what you want from the Budget

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Dilapidated Properties spell trouble for landlords…

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Property Hotspots:

So called property hotspots offer high yields (high returns) because the house prices are low, but if the area where you invest in your buy-to-let determinates, then not only does your low priced investment lose more value, your income declines or disappears altogether, and you have your work cut out dealing with all the issues that ensue.

On landlord in Burnley, Lancashire, once one of the hottest property hotspots in the land, says that if his long term tenant should leave he would find it difficult to re-let any anything like the £4,000 per year he takes now, if he can do it at all.

Reported by the Burnley Express, the landlord whose name was withheld, says the condition of the private residences in the row is “disgusting”, most of them in his terrace having been boarded up.

The report says that seven of the 11 houses on the terrace are abandoned, with their windows and doors boarded up. These attract homeless people, rats, and damp and druggies, causing other residents to move out leaving their properties in a state of neglect. All this has happened in the last five years says the landlord.

The landlord says:

“Kids go in, rats go in, the windows are smashed, its wide open: a homeless guy was asleep under the window in the front room…We’ve had problems with rats along the whole block. It’s absolutely disgusting.

“They should be compulsory purchased,” he added. “If not, then it should be the council’s responsibility to contact the owners.”

The property on Florence Street off Accrington Road, Burnley, has been owned by this landlord for the last 35 years, and has been rented by the same tenant since for around 17 years, but the long-term tenant is now making noises that he wants to leave.

The council has told this landlord that as these residences are all privately owned, unfortunately it cannot do anything about the state of the other properties due to limited funding: Compulsory Purchase Orders cannot be universally issued, and the responsibility lies with the owners, says a Burnley Council. A spokesperson from the council said:

“We have the empty properties programme, but the responsibility for the upkeep of a property is ultimately down to the owner,”

This particular landlord’s insurance has gone up £500 a year after having a claim to repair damage to his property caused by damp coming through from a leaking toilet after lead flashing was stolen in the abandoned house next door. This was a £7,000 claim.

“My tenant is debating whether to move, which if that is the case, I’d lose about £4,000 a year in rent,” he told the Burnley Express.

“I’ll just have to board it up and leave it too. People can’t sell, and people won’t buy because of the state they’re in. “It’s wearing me down,” he said.

In some parts of the town Council housing officials have joined with a housing association to paint pictures of curtains, vases and neat front doors on scruffy boards covering a row of empty two up two down terraced houses, to look as though the homes have caring owners.

These look far better than bare boards, but take a closer look and the neat red and blue doors, bouquets of roses and newly drawn drapes are already attracting graffiti artists from this boarded up suburb nicknamed ‘junkie’s alley’, in Burnley, Lancashire.

In reality this street in the run-down Burnley Wood district of Burnley, Lancashire, is perhaps the “hottest” property hotspot in Britain, with one house selling for just £10,000.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Dilapidated Properties spell trouble for landlords… | LandlordZONE.

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The Police and Council have moved my tenant without telling me?

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Hi, Can anybody help me? About 4 months ago my tenant rang me to ask if I had any other properties available that she, and her family, could move into asap.

Apparently “some bad lads” had threatened her partner and they needed to get away immediately.

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Elfin Kitchens specified for exclusive student accommodation

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Elfin Kitchens has supplied over 355 ‘Premium Bespoke’ kitchens to Crown House, Sheffield – a purpose-built development of studio apartments for the private student accommodation sector.

The property boasts a number of first class facilities, which have all been designed to provide a standout university experience. This is reflected in the studio apartments which contain high quality, durable finishes, offering a blend of practicality and contemporary interior design. For these reasons, Elfin’s kitchens were specified for all studios, providing food preparation, storage and cooking facilities contained within compact units that complemented the modern décor.

The specification was further enhanced by including the popular Studioline system with each kitchen unit, linking the wall cupboards, splashbacks and side panels together to form one impressive product. The Studioline’s double-sided frame is manufactured from brushed stainless steel, which not only provides a sleek finish, but also provides high levels of durability.

An additional feature of the kitchens supplied to Crown House was the integration of a consumer unit in every model. This provides each apartment with complete electronic isolation for the kitchen, offering additional safety and a true ‘plug and play’ installation.

The main developers for the Crown House project were London and Scottish. Commenting on the specification of the Elfin Kitchens, Darren Simmons said: “On our Crown House Student Living development we worked closely with Elfin to develop a high quality product in a finish that complemented our interior design, whilst providing the durable solution that they are known for. We are really pleased with the end result and they look great in the apartments.”

Bob Andrew, Managing Director at Elfin Kitchens, said: “Crown House has been a great project for us and helped demonstrate the scale of products our range has to offer. It’s clear that the student accommodation market is developing rapidly, so we’re continuing to introduce new options that are adaptable to any size and style of apartment, while still providing all the essential cooking and storage facilities needed for independent living.”

The ‘Premium Bespoke’ range of kitchens incorporates high quality appliances, including a refrigerator, sink and tap, plus a choice of solo or combination microwave, oven and grill. In addition, ‘Premium bespoke’ models are supplied with soft close drawers and doors plus a choice of induction or ceramic hotplates with built in safety cut-out timers.

All ‘Premium’ models from our standard range are also available in a range of colours, from gloss powder coated White and Claret, to matt powder coated Sand and Bronze. Starting at 900mm wide, up to 1500mm, compact kitchens from Elfin save space and offer great flexibility, with right or left-hand versions available, as well as hotplates, dishwashers, combi-ovens and additional storage units.

For information on the entire range of kitchens and accessories, visit: www.elfinkitchens.co.uk

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Elfin Kitchens specified for exclusive student accommodation | LandlordZONE.

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£2,173.86 recovered from DWP

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Two months ago I published a case study: Live Universal Credit horror case study

In short we were approached by a PRS Landlord, he had granted a Tenancy in March, the tenant was on Universal Credit.

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