Labour to ‘go further than Tories’ with harsher Decent Homes Standard

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Labour has promised to ramp up the pressure on private landlords by introducing a legally binding ‘Decent Homes Standard 2’.

Its latest draft policy programme – a provisional blueprint likely to shape the next general election manifesto – includes a proposal to take the government’s planned Decent Homes Standard further, although Labour’s vision is light on detail.

Expected as part of the imminent Renters’ Reform Bill, the Decent Homes Standard would ensure PRS properties are free from serious health and safety hazards.

Landlords would also be expected to keep homes in a good state of repair, so renters have clean, appropriate and useable facilities.

Fundamentally

Labour’s policy programme reiterates its plan to fundamentally reform the private rented sector, giving tenants greater security through a powerful new renters’ charter, which will include longer-term tenancies as standard, the right to reasonable alterations, ending Section 21 ‘no fault’ evictions and introducing a national register of landlords.

The party would also consult on how best to ensure tenancies are affordable and the effective implementation of no-fault evictions.

Other draft Labour policies include a promise to upgrade every home that needs it to EPC standard C within a decade by installing energy-saving measures such as loft insulation in locally delivered programmes, by giving local authorities the power and resources.

It has also set the target of a 70% homeownership rate by helping first-time buyers onto the housing ladder with a new, comprehensive mortgage guarantee scheme as well as bringing the leasehold system to an end.

Raising stamp duty paid by foreign individuals, trusts and companies when they buy UK residential property is another proposal.

Read more about the Decent Homes Standard.

View Full Article: Labour to ‘go further than Tories’ with harsher Decent Homes Standard

EXTRA red tape, scams and repairs drive more landlords to use agencies

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Almost two thirds (63%) of private landlords who manage their own properties are tired of sorting out repairs and dealing with red tape and considering using a letting agency or property manager instead. 

A Uswitch poll of 2,000 landlords found that the most common reason they might decide to pay an agent was to take a break from dealing with repairs (31%) followed by avoiding the hassle of finding tenants (30%) and avoiding legal responsibilities (30%).

More than a quarter (27%) would switch to a letting agency to avoid scams and fraud.

The comparison site believes that as soaring interest rates force mortgage rates up, the buy-to-let landscape has left some landlords apprehensive about what direction to take their properties in, or if they should continue renting them out at all.

Profits

Uswitch.com BTL mortgages expert, Kellie Steed (pictured), says while it can feel like selling up is the only option, there are other ways landlords can keep profits afloat during the cost-of-living crisis.

“Switching to a letting management company offers some attractive advantages and gives landlords the scope to hold onto their investment,” she explains.

“Property managers have a strong knowledge of the market’s changing regulations and can also take on much of the responsibility of owning investment property – lettings, repairs, rental disputes and complaints can all be tackled by an agency.”

Many offer increasingly attractive packages for landlords in return for 10-20% of profits, says Steed.

“Remortgaging a property can also save landlords money, as any equity held in the property will give them access to cheaper rates,” she adds.

“While a lower interest rate could offer less expensive loan repayments, releasing equity on a property can boost your finances and give you, and your property, more support in the form of a cash sum.”

Read more: Agencies must help landlords navigate looming reforms.

View Full Article: EXTRA red tape, scams and repairs drive more landlords to use agencies

Daily Telegraph wants to speak to landlords about the Renters Reform Bill

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Are you a landlord who is worried about the wide range of reforms expected in the Renters’ Reform Bill? Then, Alexa Phillips the personal finance reporter for the Telegraph would like to speak with you.

Alexa would like to speak to Property118 readers about:

• What do you think about the proposals in the bill

View Full Article: Daily Telegraph wants to speak to landlords about the Renters Reform Bill

Conservative MPs condemn government’s ‘war on landlords’

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Tory MPs fear the soon-to-be-published Renters’ Reform Bill will force more landlords to sell up.

According to the Telegraph, there are growing concerns amongst Conservative MPs that the government has gone too far with its war on landlords.

View Full Article: Conservative MPs condemn government’s ‘war on landlords’

How Shelter helped my tenant become homeless

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As a landlord, I recently faced a difficult situation with one of my tenants, a 68-year-old man who was struggling with drug addiction and had fallen severely behind on rent payments. Despite my efforts to work with him, I had to use a section 8 eviction notice to remove him from the property.

View Full Article: How Shelter helped my tenant become homeless

Tech firm gets public cash to help portfolio landlords improve energy efficiency

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Proptech company Propflo is working with BTL mortgage lenders to help portfolio landlords make their properties more energy efficient.

It has been given a grant by Innovate UK to encourage lenders to explore initiatives such as encouraging retrofitting in their products, creating buyer groups to lower installation costs, and providing tools so landlords can better understand the case for improvements and investment.

Propflo explains that although lenders can influence and enable energy efficiency upgrades, the investment case currently isn’t clearly presented, while there’s also a lack of ongoing engagement after a retrofit, and little automated verification and monitoring to show the real impact.

Proposals

The company has already engaged with more than 20 lenders and will now develop proposals for a phase 2 demonstration with one or more lenders in the buy-to-let, residential and shared ownership sectors. The project will also involve lettings agents, mortgage brokers, and landlords.

According to founder and CEO Luke Loveridge (main picture, centre), this will help lenders and landlords meet looming regulatory changes while forward-thinking lenders should see it as an opportunity to help them win and retain more business by adding value for their customers.

“We’re focusing on mortgage lenders as they now have to report on the energy efficiency of their back book and have a voluntary target to decarbonise this,” he tells LandlordZONE.

“It is primarily about providing as much support as possible and lowering the barriers to retrofitting for landlords, by leveraging the scale of lenders. We want to work with lenders to explore financial incentives in the project, but this isn’t the primary focus.”

View Full Article: Tech firm gets public cash to help portfolio landlords improve energy efficiency

Average rents hit £1,000 for the first time

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Tenants moving into a newly let property are facing average rents outside of London of more than £1,000 for the first time, data reveals.

Hamptons says renters are facing a £1,002 bill and in April, that was £72 or 7.8% more than it was in April 2022.

View Full Article: Average rents hit £1,000 for the first time

Hybrid LLP structures GAME OVER!

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It’s game over for most Hybrid LLP tax structures.

A “Hybrid” / Mixed LLP is a Limited Liability Partnership where one or more Members is a Limited Company.

Following our article “How Property118 Are Helping A Landlord To Resolve A Serious Hybrid LLP Tax Planning Blunder”

View Full Article: Hybrid LLP structures GAME OVER!

An open letter to Polly Neate at Shelter

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Below, we publish an open letter from Property118 reader, ‘Dismayed Landlord’.

He details issues about helping his tenants – and wants Polly Neate, the chief executive of the homelessness charity Shelter, to help him find housing for his tenants as he is intending to sell up.

View Full Article: An open letter to Polly Neate at Shelter

How Property118 Are Helping A Landlord To Resolve A Serious Hybrid LLP Tax Planning Blunder

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Stay tuned for the big reveal – the name of the accountant responsible for this catastrophic situation will be unveiled soon. But first, we’re working to negotiate a settlement with HMRC on behalf of the landlord who’s now facing a hefty bill in taxes

View Full Article: How Property118 Are Helping A Landlord To Resolve A Serious Hybrid LLP Tax Planning Blunder