Tenants using illegal electricity cards?

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Some may find this experience interesting – others may have wise words of advice to offer?

We have two flats over a business which was created 10 years ago. The business pays all the electricity for the whole building and the flats have a sub-meter each which they top up with cards purchased from the agent.

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Problems with mould as heating turned down?

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We have had our flats for over twenty years and they are all in good condition. We have had very little problem with mould until now. Several tenants are complaining and sending photos.

I know they have cut down significantly on heating and are not using the tumble drier because they can’t afford the cost.

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Campaigners claim letting agents ‘egging on’ landlords to raise rents

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Renters groups have blamed letting agents for encouraging private landlords to raise rents to unacceptable levels to help boost their revenues.

In a Generation Rent survey of more than 1,000 renters in England, when tenants facing rent rises asked their landlords for an explanation, 17% cited letting agent advice compared with 11% of landlords who cited mortgage costs as the reason for increasing rent.

The survey found that a third of prospective tenants had been asked to attend mass viewings with other renters, a quarter were asked for multiple months’ rent in advance and a fifth had been told to bid up rents to secure a home.

Deputy director Dan Wilson Craw (pictured) tells the Financial Times that rent increases are, “symptoms of a market where there is a shortage of homes, but letting agents are making life harder for tenants, making the whole process more stressful”.

Michael Deas, a co-ordinator for the London Renters Union, adds: “Rents don’t just go up — they are inflated by…agents and the market reports they put out.”

Lettings boss Greg Tsuman, president-elect of ARLA Propertymark, refutes the claims that agents’ behaviour has distorted the market and says prices are going up because of fierce competition for properties.

He adds that letting agents often advise landlords to go for lower prices as they would be more sustainable long-term.

“If everyone is fighting for the property, it’s stressful,” Guy Gittins, chief executive of estate agent Foxtons told the newspaper.

“Guess what, it’s stressful for the agent too, it’s not an environment we welcome. We sympathise with the renters of London; it is a supply and demand dynamic that is not healthy.”

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BREAKING: ‘Rent Smart Wales’ style scheme revealed for Welsh holiday lets

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The Welsh Government wants to know what landlords who operate holiday accommodation in the country think of its proposed regulation of the sector.

Following a deal with Plaid Cymru, the Welsh Labour Government has committed to a statutory licensing scheme for holiday lets, which is likely to be very similar to the existing Rent Smart Wales scheme for traditional lets.

This would see properties on platforms such as Airbnb or Booking.com required to meet much tougher conditions before being offered for rent, including all providers to evidence that they have met certain requirements in order to operate.

Permission

This include having the correct insurance for accommodation providers, confirmation of planning permission to allow the premises to be let, evidence of a fire risk assessment, gas safety certificate, and proof of electrical safety, to list a few examples.

The scheme is part of a package of measures to address the negative impact second homes and short-term holiday lets can have on the availability and affordability of housing for local people in Welsh communities.

A licensing scheme would include a database of who is operating in the sector as it is “currently not possible to determine how many visitor accommodation businesses there are in Wales, or in any given community,” the consultation document says.

It is also expected that the licensing scheme will be backed up by a mechanism – and funding – to ensure property owners comply with the scheme.

Economy Minister, Vaughan Gething (pictured) says one key thrust of the scheme would be to ‘level up’ regulation and compliance – many hotel and B&B owners argue that they must comply with fire and safety legislation, for example, while properties on Airbnb do not have to.

“Over the course of the past year, we have been exploring and engaging with stakeholders on how such a scheme could work in Wales,” he adds.

“As the consultation now opens, we would like to hear further views and would encourage the sector to respond to the consultation.”

His opposite number at Plaid Cymru, Siân Gwenllian, says the initiative is part of a wider effort in Wales to take “radical and immediate action to address housing market failures and the lack of affordable housing, using the planning, property and taxation systems to make a difference.

“There has been a huge increase in the short-term holiday let sector in recent years which is exacerbating the housing crisis in Wales. While we have a regulatory framework in place in Wales for private rental accommodation,” she says.

Read the consultation document and respond here.

View Full Article: BREAKING: ‘Rent Smart Wales’ style scheme revealed for Welsh holiday lets

Scots Minister shows ‘blatant disregard’ for landlords with higher BTL stamp duty

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Landlords in Scotland have been hit with a stamp duty rise as the government strives to raise additional revenue.

It announced legislation in the Budget statement to increase the rate of the Additional Dwelling Supplement from 4% to 6% for second home buyers and buy-to-let landlords, which also aims to protect opportunities for first-time buyers.

The Scottish Fiscal Commission forecasts that the changes – which take place immediately – will raise an extra £34 million in revenue in 2023-24.

The Scottish government blames Westminster for forcing it to make the decision. Deputy First Minister John Swinney told the Parliament: “The calamitous choices made by successive UK governments have made our economy weaker and put the public finances under tremendous strain.

“Increasing the tax due on the purchase of additional dwellings such as second homes maintains our commitment to protect housing opportunities for first-time buyers in Scotland, while also raising vital extra revenue.”

Propertymark points to an already plummeting desire for landlords to remain in the sector, with 68% of letting agent members in Scotland reporting an increase in notices to sell due to ongoing legislative changes.

4% to 6%

Timothy Douglas, its head of policy and campaigns, says: “It’s disappointing to see the blatant disregard for the importance of incentivising investment in the private rented sector by raising the Additional Dwelling Supplement from 4% to 6% for additional homes.

“The private rented sector is a key solution to resolve the housing crisis but if the Scottish Government continue with policies that disincentive landlords this will only make the situation worse.”

Scottish landlords have already been hit with emergency legislation, banning evictions and rent rises until at least next April.

Read the Budget statement in full.

View Full Article: Scots Minister shows ‘blatant disregard’ for landlords with higher BTL stamp duty

Bank Base Rate Rise – Worked Examples for Landlords – NEW VIDEO

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Property118 members seem to love worked examples when it comes to understanding the principles of tax related to finance costs, so that’s exactly what my latest video on the Property118 TV YouTube channel provides.

I recorded this latest video below immediately following the Bank of England’s announcement that they had increased interest rates by a further 0.5% on 15th December 2022.

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Property leaders urge Michael Gove to address PRS pressures

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Leading members of the property sector have written to Michael Gove calling on him to address the unsustainable pressures on the private rental sector.

They say that Government policy needs addressing to help deliver cheaper rents for tenants – because that is what most tenants want.

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Campaigners claim latest mould data proves too many PRS homes ‘substandard’

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The Government has released official statistics that shows that one in nine or 11% of privately rented homes in England have a damp problem.

This latest tranche of data from the English Housing Survey also reveals that a quarter of PRS properties fail decency standards and that 14% are unsafe.

Campaigners have jumped on the figures as proof that a legal minimum quality standard for privately rented properties need to be introduced, as expected to be included within the looming Renters Reform Act next year.

“Homes are critical to our health and wellbeing. Damp and unsafe homes are making too many private renters ill,” says Alicia Kennedy, Director of Generation Rent (pictured).

“This winter more of us are struggling to afford to keep our homes warm, putting us at greater risk of ill-health.

“We urgently need the Renters Reform Bill to raise minimum standards that renters can expect from their homes, and give them the security of tenure they need to complain without fear of eviction.

“And if the government is serious about eradicating the scourge of damp and mould, ministers must give tenants better legal support to take action against negligent landlords.”

Huge fine

This latest data from the Official of National Statistics coincided with news form Cardiff that magistrates have fined a local landlady £10,000 with £2,000 in costs for a catalogue of failures relating to a house she owns and rents out as a House of Multiple Occupation (HMO.)

Rowshanara Begum’s HMO in Blaenclydach Street in Grangetown was found to have a catalogue of faults were identified,

This included inadequate structural fire protection to escape from the property, no fire alarm system, unprotected electricity meters, defective fire doors, broken windows, unsafe electrical installations, dirty carpets, unsafe kitchen facilities and evidence of penetrating damp (main picture).

Cllr Lynda Thorne (pictured), Cabinet Member for Housing and Communities said: “HMO’s play an important role in the city’s housing stock.

“As a landlord, the financial yield from these properties is often higher than renting a family home, but renting HMO’s carries additional responsibilities and the required investment in the property to ensure that it is safe for the tenants that are living there.”

View Full Article: Campaigners claim latest mould data proves too many PRS homes ‘substandard’

Government energy discount – Do tenants or the Landlord get this?

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Hello, this is the scenario:

Landlord owns and rents a property to students.

Landlord is the registered payer for energy bills (gas & electric).

Landlord receives Government ‘handout’ for household energy bills but payment is facilitated and paid out via the electric bill as a discount.

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Spray foam insulation can result in refused mortgage applications

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In September the Government announced a £2bn plan to offer home insulation grants of up to £5,000 per household in England. This is to be known as the Green Homes Grant and has replaced previous schemes such as the Green Deal which largely failed in their key objectives.

Grants can pay at least two thirds of the cost of some energy-saving solutions. The maximum amount available is £5,000, or £10,000 for those on certain benefits.

The new scheme will come as a welcome boost to the home insulation and renovation industry, while at the same time as offering to improve the energy efficiency of homes using approved installers.

Poor quality installations

Previous government schemes have been plagued with poor quality installations which lead to low insulation efficiency and in some cases contribute to other problems such as condensation and decay.

One type of insulation treatment in particular is problematic: spray applied foam insulation. The reason is that most surveyors take a jaundiced view of this material and its application in homes and most mortgage companies don’t like it. It means that in some cases loans will be refused when a property has had foam insulation installed.

Quick and easy solution?

Whilst spray foam is quick and easy to apply – either in a loft space between rafters, or within internal walls inside studied partitions or timber frames – it takes a skilled operator to apply it properly to avoid problems [see picture above] in the future.

Once applied, good or bad, it’s difficult or impossible to see if it’s hiding moisture condensation and wood decay. Therefore, when surveyors value houses for mortgages they will flag this up to the mortgage lender as an issue and loans get refused.

Like many services in the building trade there are rogue and unscrupulous operators who will apply this type of insulation with little or no regard to the quality of the finished product, and as it’s impossible to inspect what’s going on behind the foam, many surveyors will simply condemn it.

Foam removal

Once installed it’s very difficult to remove the foam. It’s got to the stage, with spray foam insulation, that companies are now offering their services to remove it when people find they can’t get a mortgage – most likely the service is offered by the same companies that apply it.

Correct application

The application process, when done correctly, solves a lot of problems. It’s quick to apply and the chemicals come in two large tubs instead of a truck load of Celotex sheets, which are then very time consuming to install, involving a lot of cutting to size and fitting.

Installing slab or Celotex type insulation needs a lot of care to get the sheets to the correct size, a snug fit to avoid any gaps, where cold bridging could occur. All joints and any gaps should be filled with sealer and all then sealed over with foil tape. A careless workperson can make the difference between a perfectly insulated roof or wall and a far less effectively insulated one with potentially hidden problems.

What is spray foam insulation?

Sprayed foam insulation is not a new idea, its been around for at least 30 years. There are two types: closed cell and open cell. The closed cell acts as a vapour barrier but it must be installed without any gaps where it touches the wood sides. The open cell type allows moisture to seep through but can only be used if there’s a breathable vapour barrier on the other side, usually the felt type roof covering.

So the open-cell products are vapour permeable and must only be used in conjunction with a breathable roof covering, a breathable roofing felt. Closed-cell products are often used to stabilise defective roofs with no felt layers, sprayed directly to the underside of slates or tiles which gives them some stability if their fixings have corroded. The problem here is, the foam covers a lot of sin hence why the mortgage companies don’t like it.

Closed cell products can undoubtedly extend the life of a defective roof, quickly and without going to the disruption and expense of replacing the roof covering. The closed-cell solution will improve airtightness in a home and depending on how a loft space is being used, this can be an efficient way of insulating the loft and house space, perhaps more so that deep loft insulation, which leaves the loft space cold. However, if the loft space is included in the sealed envelope of the house, to avoid condensation the loft must then have extra ventilation.

Spray foam performance

Truly reliable performance data on spray foam insulation installations is hard to find. The insulation qualities will vary according to the thickness of the application and whether all gaps are sealed. The main problem is that interstitial condensation can occur.

This means that condensation forms on the cold side of the insulation which leads to decay in the rafters, slate battens and slate / tile fixings. The quality of the application is therefore crucial if problems like these are to be avoided. This is not a DIY job, training and a good degree of skill are required by the operative to avoid these problems.

Depending on the situation, a sealed vapour barrier may be required on the warm side of the insulation as any gaps could allow air leakage and cause condensation on the underside of the roof covering. Therefore, spray foam insulation is not usually an option if breathability is required.

Any roof can be affected by condensation if it lacks the correct ventilation, and any type of insulation can cause this whether conventional or spray foam. It would be wrong to blame or condemn spray foam entirely on that basis, it’s simply a matter of the correct design and application.

Ventilation the key

Ventilation is the key to preventing condensation in any property, full stop. Structure and fixing decay, or wet and dry rot in timber, whether in roofs, floors and timber frames can all occur when there’s insufficient ventilation. Moisture will find its way into sealed spaces or spaces without a good air flow, which never properly dries out, and that’s when trouble occurs.

There does not appear to be much evidence of serious decay problems with spray foam insulation when applied correctly, and in the right circumstances, but to avoid problems with mortgage applications it may be wise to stick with conventional insulation types.

View Full Article: Spray foam insulation can result in refused mortgage applications