Plea to support landlords with rental reforms as record numbers plan exodus

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The Renters Reform Bill will increase pressure on landlords and may force even more to quit the market, warns the Royal Institution of Chartered Surveyors (RICS).

Its alarm comes as the number of landlords planning to sell rented properties has already reached its highest rate on record, according to new data from the NRLA. It found that in Q1, 33% of private landlords in England and Wales planned to downsize, up from 20% the same time last year. Meanwhile, only 10% of landlords plan to increase the number of properties they rent out as 67% said demand for properties from prospective tenants was increasing.

Higher rents

The RICS predicts that with demand continuing to outstrip supply, rental prices will be driven higher over the next few months. Samuel Rees, senior public affairs officer, explains that it’s increasingly concerned about the pressures facing the rental market. “Demand for rental homes remains high, but stock remains low, and landlords are increasingly exiting the market – which is translating into higher rents.”

Adds Rees: “The government’s proposed changes…will increase pressure on landlords and may force even more to exit the market. The government needs to ensure that proposed reforms to the rental market are delivered in such a way that it increases support for landlords and tenants and maintains and grows supply.”

Instructions dropped

Its poll reveals that tenant demand increased in the three months to April according to a net balance of +41%, while landlord instructions dropped, with a net balance of –24% of respondents reporting a decline.

Buy-to-let landlords offloading property are behind rocketing receipts of Capital Gains Tax, according to new figures from HMRC which show it collected £18.1 billion in CGT in 2022/23, £7 billion more than two years previously. The growth is set to continue as the CGT annual tax-free exemption has been cut from £12,300 a year to £6,000 and will fall to £3,000 from April next year, according to NFU Mutual.

View Full Article: Plea to support landlords with rental reforms as record numbers plan exodus

Record number of landlords are selling up – NRLA

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Despite record tenant demand for a rented home, the number of landlords quitting has rocketed to a new high, research shows.

Polling by the National Residential Landlords’ Association found that the number of landlords who are planning to sell their properties has hit its highest rate on record.

View Full Article: Record number of landlords are selling up – NRLA

Gove shelves plans to scrap leaseholds after Number 10 row

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Housing Secretary Michael Gove has dropped plans to abolish leaseholds in England and Wales after Downing Street officials argued there was not enough time to enact such major reforms.

Despite describing it as “an outdated feudal system” and pledging to get rid of leaseholds earlier this year, he will stop short of doing so, according to The Guardian. Gove had wanted to replace leaseholds for flats with a commonhold system, which would allow owners to make joint decisions about what should happen in shared areas of the building.

Crippling bills

In the aftermath of Grenfell, many homeowners have faced crippling bills and cannot sell their properties after buying leasehold flats that the freeholders refuse to make safe. New figures from the DLUHC show that in 2021-22, there were an estimated 4.98 million leasehold dwellings in England, with 38% of homes in the PRS owned on a leasehold basis.

Speaking on Sky News in January, Gove explained: “The fundamental thing is that leasehold is just an unfair form of property ownership. In crude terms if you buy a flat, that should be yours.”

Ground rents

However, he is still set to announce a range of measures to protect leaseholders next month, including a cap on ground rents, more powers for tenants to choose their own property management companies and a ban on building owners forcing leaseholders to pay any legal costs incurred as part of a dispute.

A spokesperson for the Department for Levelling Up, Housing and Communities told the paper: “We are determined to better protect and empower leaseholders to challenge unreasonable costs. In line with our manifesto commitment, we will bring forward further leasehold reforms later in this parliament.”

Property lawyer at JMW, David Smith, says Gove’s decision was predictable. “With the ongoing (and not exactly well met) challenges of PRS reform, standards in social housing, and the Building Safety Act, it was unrealistic to take on a fourth major reform programme.”

View Full Article: Gove shelves plans to scrap leaseholds after Number 10 row

How many landlords are impacted by the building safety crisis?

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Hello, my name is Suzy Spilling, co-founder of the NON-Qualifying Leaseholder campaign group.

I didn’t know if any Property118 members are impacted by the Building Safety Act and Leaseholder Protections or are aware of the following NRLA survey.

View Full Article: How many landlords are impacted by the building safety crisis?

Property 118 – Feedback testimonials

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Hello to all Property 118 readers,

My name is Elizabeth Warburton and I am head of video content here at Property 118.
I understand that Property 118 has brought an extremely informative, educational and completely free platform to help us Landlords now for many many years

View Full Article: Property 118 – Feedback testimonials

Manchester’s selective landlord licensing scheme expands

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Manchester City Council has announced that its selective landlord licensing scheme has expanded this week to cover 700 more rented homes.

There are five new licensing schemes in four neighbourhoods and landlords will now need to be licensed.

View Full Article: Manchester’s selective landlord licensing scheme expands

Housing charity blasts misleading rent-to-rent claims

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Shelter has strenuously denied that it is involved in any rent-to-rent schemes after it was claimed that the charity was either acting as a guarantor or had placed tenants in rented properties.

It has threatened to take legal action against any individual or organisation which uses Shelter’s name to “promote, encourage investment in, or add legitimacy to a venture”. The group adds: “We would like to make it clear that Shelter have not at any time and will not be involved in these or any other property investment schemes. Claims that Shelter are, or may be, involved in these schemes are bogus and fraudulent.”

Action Fraud

It explains that it does not directly place tenants in properties, does not own any residential properties and does not lease, let or rent any residential properties. The group says it has notified Action Fraud of at least one scheme purporting to involve Shelter.

It adds: “In 2022 we were made aware of more than one instance of an employee of ACH Investments Ltd (company number: 12368029) wrongly representing Shelter and issuing contracts in which Shelter were named as tenants in a rent-to-rent scheme, dating as far back as 2019. Shelter has not entered into any agreement, or had any dealings whatsoever with ACH Investments Ltd.”

Offering education

“It’s totally understandable that Shelter don’t want to endorse a particular guaranteed rent company,” Landlord Action’s Paul Shamplina tells LandlordZONE. “What they should be doing is offering education to tenants dealing with these companies and the possible ramifications if it goes wrong, which we’ve seen a big increase in during and after Covid.”

LandlordZONE has tried to contact ACH Investments.

• Shelter says 24,060 households were threatened with homelessness in England as a result of a Section 21 order in 2022, 50% higher than in 2021, while 290,330 faced homelessness, a rise of 6%.

View Full Article: Housing charity blasts misleading rent-to-rent claims

DAY TO GO: Get ahead in property investment at the free Virtual Property Exhibition

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This is a friendly reminder that the Virtual Property Exhibition, brought to you by the property investors network, is happening tomorrow (Friday 12th May 2023). Why not join 9 industry experts from all over the UK?

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View Full Article: DAY TO GO: Get ahead in property investment at the free Virtual Property Exhibition

Manchester rolls out next wave of selective licensing schemes

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Five more selective licensing schemes have opened in Manchester, covering 700 private sector homes.

Landlords in four new areas will now need to apply for a licence, in Levenshulme: Matthews Lane, Longsight: The Royals, Moss Side & Whalley Range: Claremont Road/Great Western Street/Bowes Street, and Rusholme: Birch Lane, Off Laindon Road and Dickenson Road. An early bird discount is available until 8th August.  

The new designations follow a public consultation last October. According to the council, potential schemes in Cheetham will need further investigation and it has promised to review the case for including this area in a future phase following further consultation.  

Four schemes

Four schemes already operate in the city, in The Ladders – Gorton and Abbey Hey, Hyde Road – Gorton and Abbey Hey, Trinity – Harpurhey and Ben Street area – Clayton and Openshaw.  

The council reports that 1,887 properties have been fully licensed since 2017, with 677 compliance inspections carried out; 82 properties were non-compliant and enforcement action has included 21 civil penalty notices totalling fines of £115,299.

Significant improvements

There are about 90,000 private rented homes in Manchester, 38% of the city’s housing supply, says councillor Gavin White, executive member for housing and employment, who adds that without intervention to tackle housing issues, it wouldn’t see long-term significant improvements. “This is where selective licensing is proving impactful, and our residents are seeing tangible improvements in their homes,” explains White.

“Of course, we know that the majority of landlords take their responsibilities seriously and work hard to provide a safe and well-managed property. But it is important that we work to tackle those landlords who seem willing to put their tenants’ safety at risk.”  

A new devolution deal was agreed by the government earlier this year to give the 10 Greater Manchester councils powers to approve larger selective licensing schemes.

View Full Article: Manchester rolls out next wave of selective licensing schemes

Renters Reform Bill is delayed – again

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In news that will not surprise anyone, the government has revealed that ‘procedural issues’ have delayed the publication of the Renters Reform Bill that is poised to shake up the private rented sector, the Mirror reveals.

It is now more than four years since the government first unveiled its plans to improve renters’

View Full Article: Renters Reform Bill is delayed – again