Commercial mortgages available for Airbnb type contracts with Together

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Together Money have informed our partner brokers that they will consider commercial mortgage terms for investors that intend to rent their properties using Airbnb.

This is separate to their Buy to Let range where they require a standard AST as they consider the Host (the owner of the property) to have a commercial contract with Airbnb.

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Compulsory Landlord Redress Scheme & Incentives For Longer Tenancies

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Landlords Ombudsman membership to become compulsory it seems.

In Theresa May’s most important recent interview on the Andrew Marr show yesterday she said that she wanted all private landlords to belong to a Redress Scheme like agents currently do and that landlords should be incentivised to offer longer tenancies.

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Theresa May – Compulsory Landlord Redress Scheme and incentives to offer longer tenancies

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In Theresa May’s most important recent interview on the Andrew Marr show yesterday she said that she wanted all private landlords to belong to a Redress Scheme like agents currently do and that landlords should be incentivised to offer longer tenancies.

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NLA Submits wish list to Treasury ahead of Budget

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Budget 2017/18:

The National Landlords’ Association (NLA) is making representations to HM Treasury ahead of the Budget to make the Government aware of the serious issues currently facing the UK’s Private Rented Sector (PRS) and their impact on housing.

The Chancellor of the Exchequer, Philip Hammond, has announced that the government will publish its Autumn Budget on Wednesday 22 November 2017.

The Autumn Budget sets out the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility (OBR).

Following the Chancellor’s announcement at Autumn Statement 2016, there will now only be one fiscal event in each year, held in the Autumn. From 2018 there will be a Spring Statement, responding to the forecast from the OBR, but no major fiscal event.

The focus of the Associations representations was to ensure that fiscal and economic policy better supports investment in private rented property and that sufficient funding is allocated to facilitate the implementation of the Homelessness Reduction Act.

One main NLA request is a call to introduce a package of “Capital Gains Tax reduction” measures. This, argues the landlords’ association, is to encourage the sale of poorly performing investment properties – properties where the proceeds of the sale will be entirely reinvested back into the lettings business, properties invested in, and utilised, for a period of more than 10 years, and properties that are eligible and suitable for sale to existing tenants.

In summary it makes the following recommendations:

• Embark on an immediate review of the removal of finance cost relief for private landlords.
• Introduce a package of Capital Gains Tax reduction measures to encourage the sale of:
• Poorly performing investment properties.
• Properties where the proceeds of the sale will be entirely reinvested into the lettings business.
• Properties invested in, and utilised, for a period of more than 10 years.
• Properties that are eligible and suitable for sale to existing tenants.
• Introduce measures to facilitate the tax-efficient movement of a letting portfolio into a corporate structure.
• Establish a government-backed investment vehicle to allow the sale of properties into a managed fund.
• Reintroduce the Landlords’ Energy Saving Allowance (LESA), and establish a level sufficient to improve the tax efficiency of carrying out relevant works.
• Set LESA at a level sufficient to improve the tax efficiency of carrying out works
• Fund the expansion of Help to Rent nationwide
• Establish a national deposit guarantee scheme for the private rented sector
• Remove the Capital Gains Tax surcharge for property sales
• Introduce Capital Gains Tax tapering and business asset rollover relief for private residential property which is let.
• Abolish the Stamp Duty Land Tax levy on additional property

See the full submission here

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NLA Submits wish list to Treasury ahead of Budget | LandlordZONE.

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£5.3 million tax planning success

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This week we got approval for a £5.3 million bridging facility to allow a client to withdraw their partnership capital up to base cost from their property rental business pre-incorporation.

The facility will transfer to the company on incorporation but the partners will retain the cash.

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Universal Credit – What is all the fuss about?

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More and more over the last few weeks there have been articles discussing the Governments flag ship Universal credit system, this has been the most major shakeup in the Welfare Reform in 40 years. Currently there are two services; Universal Credit Live Service and Universal Credit Full Service.

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New Pre-action protocol for debt claims from 1st Oct

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The new protocol is designed to encourage debtor and creditor to communicate and resolve a payment plan before the need to go to court.

Click Here to download the full Pre-Action Protocol for Debt Claims

The following summary is from our partners at the Sheriffs Office:

New process for Creditors:

Creditors will be expected to have sent a clearly dated Letter of Claim by post

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Purpose built student accommodation in high demand

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Whilst there were concerns that Brexit would have a negative impact on the Purpose-Built Student Accommodation (PBSA) market in the UK, new research has quashed this theory, with Savills reporting that over £2.1bn was transacted in the student housing sector after Brexit, compared to £1.9bn earlier in 2017. The same report noted a 17% increase in investment in student accommodation in the UK year on year.

This illustrates a growing popularity in investment in PBSA, with investors recognising that the asset class can often offer higher returns than traditional buy-to-let.

The numbers of overseas students in particular flocking to UK universities to take advantage of the world-class education on offer is monumental, and only on the rise. Research from Universities UK International showed that 91% of international higher education students across all levels were satisfied with their university experience in the UK – so it is no surprise that the UK has seen a rise of 2.2% in applications from overseas students outside of the EU.

A rise in the number of university students has resulted in the demand for PBSA far outstripping supply, equating to there being 3.5 students for every available room last year. Industry experts have noted that this demand is particularly high in certain cities, including Liverpool which last year saw a 20% increase in students from the previous year. With an estimated 60% of these students requiring accommodation, the need for more PBSA speaks for itself.

High demand has made PBSA an excellent venture for property investors, with it becoming apparent that the need for high-quality student rental accommodation is a necessity. As well as this, there has been a growth in rents, in turn improving rental yields in the sector. Commercial property and real estate consultant Cushman & Wakefield is anticipating average headline rental growth of 2.9% between 2016/17 and 2017/18 within PBSA, demonstrating buoyancy in the market.

Research from Knight Frank has shown that the average weekly rent of a room in a student accommodation block is £126 – a figure that illustrates the growing trend within the student sector for students paying a premium in order to secure a luxury room.

PBSA often offer students more than a traditional university hall would, with many blocks fitted with extra amenities such as gyms, private kitchens, en-suites and communal games rooms. International students in particular are snapping up these boutique rooms as an alternative to more traditional student lets.

The upsurge in demand for student property in the UK means that investment in PBSA offers an excellent way to diversify your portfolio, with high yields and low entry prices. If you’re interested in finding out more about how you can invest in student property, contact StudentPodshop.com today and speak to one of our experienced student investment consultants.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Purpose built student accommodation in high demand | LandlordZONE.

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Live Universal Credit horror case study

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Today we have taken on the following case:

In March the landlord granted a Tenancy to a tenant who informed him she was on Universal Credit. Unsure of the new scheme and not swayed by the bad press the optimistic landlord decided to give it a go.

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The solution for huge rental demand in Newcastle City Centre

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With huge amounts of regeneration underway in Newcastle city centre, the capital of the North East is bolstering its reputation as one of the UK’s most attractive cities for renters, but the city is only just beginning to cater for it.

The city has been densely populated by students for a number of years, with impressive retention rates contributing high quantities of post-graduates and young professionals to the tenant mix.

Regeneration projects such as the £350m Science Central development are further adding to this pool by creating vast amounts of employment opportunities in the city and dramatically increasing the local economy.

Considering the city already boasts one of the highest ranked universities in the UK, plus another university claiming one of the country’s largest student bodies, the city centre struggles to accommodate for the increasing demand – there are still 2.8 students per PBSA bed (Savills).

With a noticeable shift away from students opting to live further away from the centre in favour of cheaper rents, and the city council aiming reduce the number of students in the suburbs for the benefit of the residents, planning has been granted for several built PBSA developments and tougher regulations on HMO licenses have been imposed.

However, there’s one development in particular that’s combating the problem, with a fresh solution that’s highly attractive to landlords, tenants and investors alike, plus it’s set to be the tallest development in the city to date:

Hadrian’s Tower, Rutherford Street, Newcastle

 Hadrian’s Tower is a 26 floor, 82 meter development bordering the highly-anticipated Science Central, ideally situated walking distance from the university campuses, in a key gateway location close to major road links and Newcastle Train Station, attracting all tenant types.

Comprising of 162 premium quality apartments for the private rental sector (PRS), Hadrian’s Tower will fill a big gap in the Newcastle property market, offering the opportunity for students, post-graduates and young professionals to live alone or with friends, without having to live in a studio apartment or ‘cluster accommodation’’, the typical set up in private student halls throughout the city.

Hadrian’s Tower Investment Highlights:

• 5 years 7% Net contracted rental yield
• 5% interest paid on deposit during build period
• 25th floor ‘Sky Lounge’, exclusive cafe and 24/7 concierge
• Direct from the developer

Please Click Here for further information

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