Can an AST be signed retrospectively?

admin    Uncategorized     agents

Hi, Just going through some tenancies and have come across a tenant who does not have a signed AST on file (or anywhere else).

If we were to sign an AST, dated with the original tenancy start date (01.09.2020) but our signatures dated with today’s date

View Full Article: Can an AST be signed retrospectively?

Rightmove says house prices jumped by £2,587 in September

admin    Uncategorized     agents

The average price of property coming to the market grew by 0.7%, or £2,587, in September to £367,760, the Rightmove House Price Index reveals.

The figures show that middle and high-end market sectors are driving price rises, with a new record average asking price of £340,513 in the ‘second-stepper’ category – that is three bedrooms and non-detached with four bedrooms.

View Full Article: Rightmove says house prices jumped by £2,587 in September

What impact will record inflation have on business rates?

admin    Uncategorized     agents

Business rates revaluations are scheduled at certain times, but if these occur during period of high inflation the new fix could put businesses and commercial landlords at risk.

Though business tenants are liable to pay business rates, landlords should be concerned because they become liable themselves should the building become vacant.

Business rates and inflation

If inflation remains at the present level (around 10 per cent) the upcoming rates revaluation due in April next year could result in the rating list being fixed at a level that’s far too high for comfort for many businesses, it could drive many businesses to the wall.

It has been estimated that should inflation remain at its present elevated level, business rates for commercial properties in England as a result of next April’s revaluation will rise in total by over £2 billion, a nice result for central and local government but not so good if it drives companies out of business.

Business rates revaluations

Business rates are re-set at each revaluation for a period of time known as the rating list. The current rating list, running from the April 1, 2017, until the March 31, 2023, was extended due to the pandemic in an attempt to ease the burden on businesses.

Business rates in England are a tax on the occupation of non-domestic property introduced in England and Wales in 1990. Since devolution and a Welsh Assembly in 1997, rate setting in Wales has been separated from England, and Scotland uses a different system as well.

Properties are assessed as a rating list with a rateable value, a valuation of their annual rental value on a fixed valuation date using assumptions fixed by statute. Rating lists are created and maintained by the Valuation Office Agency, a UK government executive agency of His Majesty’s Revenue and Customs (HMRC).

The agency values properties for Council Tax and for non-domestic rates in England and Wales (in Scotland this function is performed by the Scottish Assessors). The work is undertaken on behalf of the Department for Levelling Up, Housing and Communities in England, and the Welsh Government in Wales.

The business rating list is in fact a series of local rating lists, with each property being assessed for a rateable value based on rental values. Rating lists were prepared and maintained by the Valuation Office Agency, while billing and collection is the responsibility of local authorities.

The system features a central government set multiplier, often referred to as the Uniform Business Rate, by which the basic bill is calculated. The rates bill for individual properties and business, particularly of late due to Covid, is modified by various reliefs, including the newly introduced transitional relief, which was designed to smooth large changes in liability due to revaluations. The multiplier was calculated to ensure that, on average, bills rose by no more than the rate of inflation.

Rating lists can be altered either to reflect changes in properties, or when valuations are successfully appealed and new rating lists are normally created on revaluations every five years, though for future rating lists the government has shortened this period to three years. The aim of this is to keep the rates businesses pay more in-line with market rental values, as they change with the strength of the economy.

Through the Local Government Finance Act 2012, and regulations that followed, the government gave local authorities the power to keep up to half of business rate income and transfer half of it centrally, to central government. The central share is then distributed to councils in the form of revenue support grants.

The other half kept by local authorities are then subjected to tariff, levy, top-up and safety payments depending on the financial position of the council. According to the government the change gives financial incentives to councils to grow their local economies and increase their income from business rates. At the same time the new scheme has resulted in more risk and uncertainty.

Revaluation next April – business concerns

With the next business rates revaluation due next April, Mortgage Introducer quotes RVA Surveyors saying that business owners and leaders are increasingly nervous as to what another rise could mean for their businesses.

RVA Surveyors say there’s wide business community that is either unaware, sceptical, or simply too busy with the current economic climate, to think of challenging their business rates.

Anthony Hughes, managing director at RVA Surveyors, told Mortgage Introducer:

“Business rates has seen an upwards-only trend for years, and it is past time for the government to step up and sort out an increasingly outdated tax system. We need to see from Truss’s government that help for businesses is paramount in the coming days; not only to help businesses stay afloat, but to keep employment levels steady as well.

“As bills continue to soar, and speculation as to when businesses will receive help from the government runs rampant, business owners and leaders must take steps to create savings where they can,” Mr Hughes says.

View Full Article: What impact will record inflation have on business rates?

Holiday let deals rise as more lenders enter the market

admin    Uncategorized     agents

Buy-to-let landlords will find more lenders have come on board to cater to the growing demand for UK holidays, research reveals.

According to an analysis by Moneyfacts.co.uk, there are now more than 300 deals available to holiday let

View Full Article: Holiday let deals rise as more lenders enter the market

Tenant arranged removal of night rate meter in flat with electric heating?

admin    Uncategorized     agents

Hello, Advice appreciated!

I have a flat that has no gas, and has electric storage heaters which were on night rate electricity.

The tenant left, and we found he had arranged for SSE to change the meter to one without the night rate facility.

View Full Article: Tenant arranged removal of night rate meter in flat with electric heating?

Interest Rates Have Risen To 2.25% – What does This Mean For UK Property Investors

admin    Uncategorized     agents

Interest Rates have risen by half a percent, to 2.25%. What does this mean for UK property prices and our housing market and how will this affect property investors?

How high will interest rates even go?

What should you do now with your existing buy to let properties?

View Full Article: Interest Rates Have Risen To 2.25% – What does This Mean For UK Property Investors

New short-lets charter to tackle noise and litter created by holiday makers

admin    Uncategorized     agents

North Devon Council has launched a best practice charter to tackle problems caused by the rapid growth of short-term lets in the county.

In partnership with the UK Short Term Accommodation Association (STAA), which hopes the initiative will soon go national, it’s a set of guiding principles for property owners, managing agents or hosts.

This includes the need to provide a clear code of conduct for guests, to provide neighbours with a 24/7 contact number to use if they’re bothered by noisy parties, and to ensure rubbish gets dealt with properly.

Last year it was reported that North Devon, which covers holiday hotspots such as Clovelly (pictured) has seen a staggering 70% drop in private rented properties over the last two years as landlords have swapped to short-term holiday rentals. 

Illegal activities

The council believes that by addressing the main issues that affect neighbours such as poor waste management, excessive noise, and reduced sense of community from a high turnover of guests, the charter will encourage positive contributions to the economies and communities of the district and help prevent any anti-social or illegal activities associated with holiday lets.

STAA chair Merilee Karr (pictured) says: “It shows that the vast majority of our industry that we represent is continually improving how we work in partnership with local councils and communities while creating long-term value for local restaurants and shops and providing much-needed jobs in local areas and extra income to property owners during the cost-of-living crisis.

“We would love to talk to other councils about replicating this charter across the UK.”

The government is currently consulting on how short-term holiday lets impact housing supply across cities and coastal resorts across England.

View Full Article: New short-lets charter to tackle noise and litter created by holiday makers

Green upgrades for rented homes ‘becoming too expensive’ for landlords

admin    Uncategorized     agents

Green upgrades for private rented homes are rapidly becoming prohibitively expensive for landlords, according to one UK bank.

They are already under pressure to raise properties’ energy efficiency standards – with expectations that rented homes could have to gain an EPC grade C for new tenancies by 2025 and for all tenancies by 2028 – but while they wait to decide whether to fund improvements, the cost of upgrading becomes more expensive by the day.

The BCIS Material Cost Index is forecast to reach 17.5% by the end of 2022 with a high degree of volatility across all material categories, says Mike Feasey, relationship director at Secure Trust Bank.

Private landlords also need to factor in the increase in labour costs for tradesmen to complete any retrofit work.

Landlord feedback

“We’re getting a lot of feedback from private landlords that high costs are proving a barrier when considering the benefits of upgrading their property’s energy efficiency credentials,” says Feasey.

“The cost of retrofitting existing buildings with green and sustainable measures will, in all likelihood, continue to rise and make it more difficult to recoup the cost of that investment throughout the remaining life of a property.”

With more than half of homes in England rated D or below for energy efficiency, he believes private landlords and investors still have options.

“Residential investment loans for investors to acquire or maintain an existing stock or release equity to fund further energy efficient residential projects are worth considering,” adds Feasey (pictured).

“Doing nothing is not an option because the danger is that landlords and investors will be left with properties that cannot be let and may prove difficult to sell.”

Earlier this year, research carried out on behalf of Paragon Bank revealed that one-third of landlords plan to quit the sector or do nothing to address energy efficiency failings if and when new EPC regulations kick in.

Read the ultimate guide to having a ecofriendly property.

View Full Article: Green upgrades for rented homes ‘becoming too expensive’ for landlords

LATEST: Chancellor cuts stamp duty but no direct tax relief for landlords

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Kwasi Kwarteng failed to deliver the hoped-for repeal of Section 24 in his mini-Budget but confirmed a permanent cut in stamp duty.

The chancellor raised the threshold before stamp duty is paid to £250,000 and for first-time buyers, to £425,000 – cuts universally panned by mortgage brokers who’ve labelled them a catalyst for stimulating an overheated property market.

As expected, next year’s planned corporation tax increase was ditched and will remain at 19%, the basic rate of income tax will be cut to 19p in April 2023 – one year early – the 45% top rate of tax for higher earners was abolished and Kwarteng also confirmed a reverse in the increase in National Insurance.

“We want this country to be an entrepreneurial economy,” he told the Commons. “The tax system needs to be much simpler – people should keep more of the money they earn. We are determined to break the cycle of higher taxes hampering growth – we need a new approach for a new era.”

Kwarteng also announced the creation of new investment zones, where the government will liberalise planning rules, release land and accelerate development. To increase housing supply and enable forthcoming planning reforms, it will also increase the disposal of surplus government land to build new homes.

Labour’s shadow chancellor Rachel Reeves (pictured) said stamp duty cuts had been tried before. “The last time the government did it, a third of people who benefited were buying a second or third home or buy-to-let property – is that really best use of taxpayers’ money when debt is already so high?”

She asked if the chancellor could confirm how much of the stamp duty cut would go to those buying multiple properties. “Instead of stamp duty going up like a yo-yo we need to get building, target support at first-time buyers and tackle the issue of homes being sold to overseas investors.”

Commentary

Rightmove’s housing expert Tim Bannister

“Demand has been softening over the last few months but today’s announcement is likely to stimulate some more demand.

“If it does lead to a big jump in prospective buyers competing for the constrained number of properties for sale then it could lead to some unseasonal price rises over the next few months.

“But because the change is permanent, and because of gathering headwinds such as rising mortgage rates, we expect to see a more gradual increase in demand compared with the surge when the temporary stamp duty holiday was announced in 2020.

“Plus, buyers could save up to £15,000 during the temporary stamp duty holiday, while the savings are lower with this change.

“The first-time buyer threshold change means we could see more first-time buyers who can afford it making a jump to a bigger home as their first move. With more buyer demand we would also expect that the current trend of more properties coming to market will continue, offering more choice for buyers.”

Read more about the stamp duty cut.

View Full Article: LATEST: Chancellor cuts stamp duty but no direct tax relief for landlords

How the Government’s mini-budget affects landlords

admin    Uncategorized     agents

The much anticipated mini-budget from the new Chancellor Kwasi Kwarteng delivered a few surprises for landlords.

Income tax rates have been changed and there is a cut to stamp duty.

However, one critic says the government has missed an opportunity to help renters deal with the cost-of-living crisis.

View Full Article: How the Government’s mini-budget affects landlords