Property firm boss banned for 12 years after falsely claiming £45,000 Covid loan

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A property investor who falsely claimed a £45,000 Bounce Back Loan before dissolving his firm has been banned by the Insolvency Service.

Simon Gorgin, 63, from Kings Langley, was sole director of P3 Estates Ltd until it was dissolved in December 2021.

In May 2020, he stated on the loan application that the firm’s turnover in 2019 had been £180,000.

However, investigators discovered that P3 Estate Ltd had never traded, and had not been trading at the time of the loan application and so wasn’t entitled to receive any money.

They also found that three days after the loan arrived in the company’s account, Gorgin further breached the rules of the scheme by transferring the full £45,000 to his own bank account.

Strike off

Gorgin, who has other business interests in the creative sector, also failed to notify the bank from which he had borrowed the money that he had applied to strike off the company in April 2021.

By July of the same year P3 Estates still owed the full amount of the loan, prompting an investigation by the Insolvency Service.

He has now been banned for 12 years, which prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court. A compensation order is being recommended to recover the money.

Abused

Peter Smith, deputy head of dissolved company investigations, says Gorgin abused the scheme and took taxpayers’ money at a time when many businesses were in genuine need.

“His lengthy ban should stand as a warning that we will take action against directors who abuse government support schemes,” he adds.

View Full Article: Property firm boss banned for 12 years after falsely claiming £45,000 Covid loan

Buy-for-Uni: How to be a student student landlord

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It’s that time of year when students will be looking to sort out accommodation for the upcoming year, so what better time to learn more about our Buy-for-Uni proposition?

A Buy-for-Uni mortgage allows students to purchase a property local to their university

View Full Article: Buy-for-Uni: How to be a student student landlord

Retro-fitting buildings for energy efficiency – is it worth it?

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Refurbishing, or in the jargon – retrofitting – older commercial and residential buildings, according to the Government, is desirable and necessary, given that energy efficiency standards that will need to be met under the Government’s legal commitment to net zero by 2050.

But is this kind of refurbishment economically viable in today’s straightened times; UK businesses are operating in a low grow, high tax economy that’s likely to be years in recovery? Residential landlords are under pressure with rising mortgage rates and other costs, a punishing tax regime and ever increasing regulation.

Many small-scale buy-to-let investors are weighing the economics of doing this right now. Many single lets are of the older property stock types, terrace properties with solid walls which present expensive up-grade costs, not to mention the hassle involved if it’s under a long-term tenancy.

The environmental cost

With energy consumption and costs increasing across the globe, older commercial and residential buildings are said to be responsible for consuming a large portion of the nation’s energy – they account for up to 20 per cent of carbon emissions in the UK and represent a higher than necessary amount of energy consumption.

Cutting pollution and saving energy is the need of the hour, but just how cost effective is investing in an environmentally sound refurbishment (retrofitting) project to the average commercial or residential large building owner?

Commercial buildings

Commercial building owners often struggle to see the evidence that these outlays will generate their desired returns, but that perception is beginning to change says property international property agents JLL.

Traditionally, owners see improvements in the efficiency of a building on a years-return basis – if the return period is short enough they will do it. The problem is that a simple cash return break-even analysis, looking only at operating costs, acts as a barrier to investment judged simply over the short-term.

Retrofitting investments must be viewed in a different context says JLL: they may not be self-funding on a purely operational cash flow basis, but other long-term benefits will ensue – the old rules for evaluating these projects must change, that’s the argument being put forward by several recent studies as well.

The return on sustainability investments is often undervalued, says JLL. Building owners need to look beyond operating costs to assess the impact on a building’s overall value, taking a longer term view.

JLL gives the example of a building worth £120 million in today’s market and needs a £18 million (15 per cent) upgrade.

That sort of investment may never be fully recovered on an operating-cost break-even basis, but tenant demand for low-carbon buildings is accelerating apace: there’s a big risk that a building’s value will fall dramatically if it fails to meet future tenants’ needs and the Government’s low-carbon targets.

Building will become unlettable

It means that older buildings throughout the globe that cannot meet low-carbon targets could become unsaleable and unlettable. Whereas low-carbon rental space in the right locations will likely earn substantial premiums when they benefit from efficient and tasteful retrofit conversions.

This risk-versus-value spread is beginning to show in multiple markets around the globe, London being a prime example. JLL predicts there being as significant shortage of commercial spaces with the right low-carbon footprints by 2025. This, they say, is down to the number of companies with net zero commitments, compared with the retrofit pipeline.

The supply simply won’t meet the demand in the future. “Retrofitting will contribute to delivering on that growing demand and driving value from changes to valuation fundamentals including rents, voids and operating costs,” says JLL.

“We consistently see these results in practice. A tenfold increase in mechanical, electrical and plumbing engineering (MEP) related capital costs to decarbonize prime office space in London are often more than offset by improvements in rent, reduced void periods and lower exit yield discounts. The result is that implementing a zero-carbon strategy is accretive – especially where some significant works are already planned.

“As companies continue to take action on decarbonizing their businesses, building owners who wait for greater certainty or regulation will fall behind the demand curve and face valuation risks. The reality is sustainability-minded companies will vacate buildings if owners don’t invest in retrofitting them. And we’ll see more pressure from that every year.”

80% of office buildings which exist today will still be in-use in 2050, says JLL

What about vintage buildings?

According to a recent report commissioned by the National Trust, Historic England, the Crown Estate and property companies Peabody and Grosvenor, retrofitting the UK’s historic buildings would support 290,000 jobs and boost the UK economy by £35 billion, while at the same time meeting the Government’s energy efficiency targets by slashing Britain’s carbon emissions.

Improving the energy efficiency of these historic buildings – those built before 1919 – both commercial and residential, would reduce the carbon emissions from all of the UK’s buildings by 5% per year; it would make these older buildings, homes and workplaces warmer to work in and live in and much cheaper to run.

Heritage and property groups have outlined a plan to boost energy efficiency at historical sites to create jobs, cut emissions and meet net-zero targets. Retrofitting the UK’s historical buildings – from Georgian town houses to the mills and factories that kickstarted the Industrial Revolution – could, says the report, generate £35bn of economic output per year. It would also result in additional skills training, create thousands of extra jobs and skills, and it would help achieve the Government’s climate change targets.

Just under 25 per cent of all UK houses, around 6 million of them, are pre 1919, and around 30 per cent of the commercial property stock in the UK is also in this vintage category. That’s around 600,000 commercial buildings. Property is responsible for around 20 per cent of the nation’s greenhouse gas emissions, and these older buildings are a significant proportion of that.

A bigger challenge

Retrofitting vintage buildings represents a bigger challenge than the same process in more modern buildings, but ensuring their insulation, windows and heating systems are more energy efficient will lower emissions and prolong the building’s lifespan.

Doing this avoids the wasted carbon emissions when a building is demolished and re-built from scratch. It avoids the large amount of emissions emitted during the site clearance and making the building materials such as cement and steel production necessary for construction.

The housing association Peabody, the crown estate and Grosvenor, the Duke of Westminster’s property firm, are arguing that a national retrofitting campaign for older buildings would result in the extra £35bn of economic output annually benefiting many industries along the way.

An example cited is Peabody Avenue in Pimlico in London where two terraces of staircase-access flats built in 1876 was used as a pilot project, an experiment to understand how to sensitively retrofit a set of heritage buildings.

Another example is the Grade II-listed Canada House in Manchester retrofit now in progress. Built in 1909 and owned by Grosvenor, the programme is to improve the building’s environmental performance.

Historic England has a record of restoring listed buildings, for example the 18th-century Shrewsbury Flaxmill Maltings.

Traditional skills needed in these refurbishments, such as lime plastering, are taught at workshops at the Heritage Skills Centre in Oxfordshire.

The report estimates there will be 105,000 new workers needed in this work, including plumbers, electricians, carpenters and scaffolders over a period of three decades if net zero targets are to be met – 14,500 more electricians and 14,300 plumbers will be required.

The organisations involved in this project want the government to make the apprenticeship levy more flexible, allowing unspent funds to be channelled into training people in heritage retrofit.

View Full Article: Retro-fitting buildings for energy efficiency – is it worth it?

Telltale signs on how spot a bad tenant!

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A bad tenant could cost you thousands but how do you spot the bad ones?

There are so many stories I read every day of a tenant who trashed a landlord’s property, leaving the landlord to pick up the tab.

View Full Article: Telltale signs on how spot a bad tenant!

HMO landlords urged to share views on controversial council tax re-banding consultation

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Leaders of a campaign seeking to change the law on unfair HMO property council tax re-banding are urging landlords to input into the ongoing Government consultation on the matter due to end on the 31^st March.

As LandlordZONE has reported, many HMOs that originally were classified as single residential units for council tax purposes are now being re-banded as multiple units, which is being classed as an extra tax on tenants who live in HMOs.

Many tenants are now facing paying much higher and sometimes backdated demands for council tax where in the past their landlord paid their share of the single annual council tax bill.

But a concerted and well-organised campaign by the HMO Council Tax Reform Group to lobby Ministers on the issue and how unfair it is to tenants has been successful in moving minds in Whitehall.

This has included raising £7,000 to fund the effort, a popular Facebook site and dozens of letters written to MPs, several of whom have now backed the campaign.

Bill amendment

The Department for Levelling Up, Housing and Communities recently invited the group’s lawyer Alan Murdy to craft an amendment to the Levelling Up bill going through parliament to severely limit when and how HMOs can be reclassified.

This is now being consulted on and Wendy Whittaker-Large (main image), the co-founder of the group, says it is now imperative that as many HMO landlords as possible get involved to persuade Minister to carry through on their promise to reform how HMOs are classified for council tax purposes.

Give your views to the consultation.

The call has made by Whittaker-Large during an interview with co-campaigner Neil Chadda by Vanessa Warwick of Property Tribes, during which it was underlined how HMO landlords “have less than a month now to put their views forward for the consultation”.

Watch the whole video.

Pic credit: PropertyTribes/YouTube

View Full Article: HMO landlords urged to share views on controversial council tax re-banding consultation

My tenants want to apply for social housing?

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Hello, I am a private landlord. I had my tenants before 2016. They have been on a rolling tenancy since the AST fixed term expired.

I also had a ‘Deed of Guarantee’ signed by their guarantor when they moved in.

View Full Article: My tenants want to apply for social housing?

Unfair UK Taxation of privately owned rental PROPERTY businesses

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I’ve written this post in response to an article that appeared in The Guardian entitled “Landlords accused of ‘making up stories’ in drive to change UK tax rules”.

What a load of tosh that article was!

View Full Article: Unfair UK Taxation of privately owned rental PROPERTY businesses

Council slammed after being found to break same safety rules as landlord it fined

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Haringey Council has been hauled up for not completing fire and electrical checks at thousands of its properties, despite handing a private landlord £2,500 for the same failing.

The Regulator of Social Housing found the authority had breached parts 1.1 and 1.2 of the Home Standard, resulting in the potential for “serious detriment” to tenants.

It also found that 30% of Haringey’s properties did not meet the Decent Homes Standard and identified more than 100 Category One hazards.

Failure

Haringey had referred itself to the regulator in January, acknowledging a failure to meet statutory health and safety requirements in some of its homes.

A review found that many blocks did not have a current Fire Risk Assessment and a very large number of fire remedial actions were overdue.

More than 4,000 of these overdue actions were high risk, with half overdue for more than 12 months. Many blocks were without a communal Electrical Installation Condition Report and Haringey was unable to confirm that about 4,000 properties had had a domestic EICR completed within the last 10 years.

However, in January, a Haringey landlord failed in his attempt to have a £2,500 fine thrown out by a First Tier Property Tribunal after being fined by the council’s private sector housing team for letting an unlicensed three-storey HMO in Hornsey Park Road.

Inspectors ruled that the property also posed a high risk to the tenants because it didn’t have adequate fire protection or a detection system.

The council says it has started to put in place an urgent programme to rectify all failures.

View Full Article: Council slammed after being found to break same safety rules as landlord it fined

‘Landlords must be offered interest-free loans or grants for EPC upgrades’

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Estate agents have told politicians that Government-backed interest-free loans or grants to cover the cost of looming EPC upgrades are the only way many landlords will be able to fund the work.

The comments have been made by industry association Propertymark to an influential committee of MPs at the Welsh Sennedd as part of its inquiry into how to decarbonise the private rented sector.

Landlords in Wales and England are still waiting to hear how the changes to the Minimum Energy Efficiency Standards (MEES) regulations, which will bring in tougher EPC rules in a few years, will be implemented and funded.

The UK Government consulted on a proposal for all new tenancies to meet an Energy Performance Certificate rating of C from 1 April 2025 and existing tenancies by 1 April 2028 as part of MEES.

Also, and most controversially, it will include a higher cost cap of £10,000 which would hit Welsh properties the hardest, with the country’s properties having some of the lowest property values in the UK coupled with low energy efficiency ratings.

Loans or grants

To solve this problem, which is faced by other areas of the UK too, Propertymark has recommended that the Development Bank of Wales could offer grants or interest free loans to landlords to help them decarbonise and to finance retrofit.

It also suggested that landlords buying properties in need of significant work should pay a lower stamp duty.
The industry body also called for a clear strategy to support landlords contribute towards Net Zero as current targets for different tenures was causing confusion across the sector. 

“We’re really pleased to see that our proposals such as the availability of interest free grants for landlords, requests for an agreed timetable and milestones for the sector, the production and inclusion of a clear decarbonisation strategy, alongside calls for the Minister to provide clarity on how she will raise awareness have all been recommended to the Welsh Government,” says Timothy Douglas (pictured), Head of Policy and Campaigns at Propertymark.

“We now urge the Welsh Government to act upon these recommendations and work with the UK Government to introduce policies that allow landlords and homeowners to decarbonise their homes and properties in Wales.”

Propertymark recently predicted that some 40% of properties in England and Wales would not be upgraded to a ‘C’ EPC certificate in time without help.

View Full Article: ‘Landlords must be offered interest-free loans or grants for EPC upgrades’

Top Cities for Property Investment in Asia

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Introduction

When setting your sights on investing in property in Asia, it can be a bit overwhelming when you look at the number of cities around the world that are available. Many factors go into determining which city is right for you, but we’ve done our best to lay out some of the most important ones below:

Singapore

Singapore is a great place to invest in property. It’s a safe, stable, and developed country with a strong economy which makes it an ideal location for investors looking for high yields on their investments.

The country has a unique mix of old and new architecture, which adds to its charm as well as making it popular among tourists from all over the world. The property market here is also very stable, with good returns on investment, so you can rest assured that your hard-earned money won’t be wasted when investing here.

District 15, located on the East Coast of Singapore, is a popular real estate investment location due to its prime location, an abundance of amenities, and high quality of life. The district boasts beautiful beaches, park connectors, and a vibrant food scene, making it an attractive option for locals and expats. It is also conveniently situated near Changi Airport and the Central Business District, making it a sought-after location for professionals. Additionally, numerous reputable schools are in the area, making it an ideal choice for families. With its mix of urban and natural features, convenient location, and quality of life, it’s no surprise that District 15 is a hot spot for real estate investment in Singapore. There are 2 upcoming new condominium launches in Singapore in Singapore District 15, Grand Dunman and The Continuum which aspiring property investors should consider checking them out.

Grand Dunman is set to offer residents luxurious living in the heart of District 15. The development is designed for modern urban living with many amenities, such as a swimming pool, gym, and sky garden. With excellent transport links and proximity to top schools and retail destinations, Grand Dunman is set to be a highly sought-after development in Singapore’s competitive real estate market.

The Continuum, an upcoming luxury condominium in Singapore, promises to deliver a sophisticated living experience. The development is located in the Katong neighbourhood and offers unrivalled convenience with easy access to Orchard Road and the CBD. With stunning views, lush landscaping, and world-class amenities, The Continuum is set to redefine luxury living in Singapore.

Kuala Lumpur

Kuala Lumpur, the capital of Malaysia, is known to be one of the most developed cities in Asia. The city has experienced rapid growth over the past few years, resulting in a surge in property prices. This trend is expected to continue as Kuala Lumpur continues to attract foreign investors who are looking for good value-for-money properties and excellent returns on their investments.

The Malaysian government has also been promoting urban development projects such as highway upgrades, residential developments, and commercial projects to boost economic growth further still by attracting more businesses into Malaysia’s capital city.

Tokyo

Tokyo is the most expensive city in Asia and one of the most expensive cities in the world. It’s also home to over 13 million people and one of the largest metropolitan areas on Earth. Tokyo has been an important center of finance since at least 1868, when Japan began trading on international markets under its own name instead of through intermediaries like Korea or China.

Today, Tokyo remains a major financial center with many international companies headquartered there, including Sony Corporation (NYSE: SNE), Toyota Motor Corporation (NYSE: TM), Honda Motor Co Ltd (NYSE: HMC), and Panasonic Corporation (TYO: 6752).

Hong Kong

Hong Kong is widely known to be a densely populated city in the world. It’s also one of the richest, contributing to its status as an attractive place to invest. The city’s property market continues its upward trend, with prices rising consistently since 2009.

The average price per square foot ($psf) has gone up by more than 20%, from $1,483 in 2016 to $1,722 last year, according to figures from JLL’s Asia Pacific Investment Review 2022 report released recently.

Shanghai

Shanghai, the most populous city in China, is also a global financial center and a major port city. It’s famous for being one of the hotbeds of real estate development in Asia.

With its population expected to surpass 25 million by 2050, Shanghai has been growing at an exponential rate over recent years, and it will continue to do so as more people move into the city from rural areas. This means more demand for housing and commercial properties; it also means opportunities for investors who can buy property now before prices go up even more.

What kind of property do you want to buy?

There are many different methods when it comes to investing in real estate. You can buy a rental property, which means you’re renting out your home to tenants. Or you could flip (buy and sell) houses for a profit. There are also condos, townhomes, and even mobile homes that can be purchased as investments. The choice is yours!

The number of investable funds that you want to spend will determine what kind of investment property best suits your needs and lifestyle preferences. If the idea of living in one location isn’t appealing, but you still want steady income from monthly rents on multiple properties, then this might be perfect for you.

Find a good value for your investment dollar.

Location is an important factor when choosing an investment property. The location of the property will determine how much rent you can expect to receive, how much time and money you’ll need to spend on repairs, and whether or not renters will be interested in living there.

Consider the neighbourhood around your potential investment home and how it’s been improving over the last few years. If a neighbourhood has been steadily improving, this may indicate that demand for housing in that area is increasing–and therefore, more people will be willing to pay higher rents for apartments there (or buy houses).

Takeaway:

You can find the best cities for property investment in Asia by looking at the following list:

• Singapore
• Kuala Lumpur, Malaysia
• Tokyo, Japan (third-best)

Conclusion

We hope that this list has given you some ideas of where to invest in Asia. The cities we have listed are all great places to start your property investment journey, but there are many others out there too. It’s important to do some research before choosing which city is right for your needs!

View Full Article: Top Cities for Property Investment in Asia