PROBE: What has happened to the UK’s most ambitious landlord and property duo?

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Mystery surrounds the Carling Property Group – one of the largest private residential landlords in the UK – which appears to have gone underground.

The Scottish firm, which three years ago boasted a portfolio of more than 350 houses, studios and flats through its firm the PRS Group, is not answering phones, while its sister company – United Capital Investments – is also uncontactable.

The website listed on Carling’s Facebook page no longer exists, while the PRS Group website is now hosted by a casino firm.

Hair transplant

Somewhat surprisingly, the Carling Group’s head office phone number turns out to be a hair transplant clinic where a receptionist reveals that it has recently been fielding a number of calls from people trying to contact the property firm.

Owners Graeme and Leanne Carling (pictured) are a high-profile couple who revealed only recently that they were on target for a £500m a year turnover by 2024. The pair set up Carling Property Group in 2008 and launched PRS Group in 2018 with the aim of becoming the UK’s most dominant operator in the private rented sector.

Financial backing

In 2019 they revealed plans to pick up properties from private landlords shedding their portfolios and how they had secured financial backing from banks in the UK, as well as individuals and investors overseas.

In their last recorded media interviews in February (for a business website) and September (within interviews recorded by Property TV), Graeme Carling spoke of his plan to sell off those properties which were deemed unsustainable and to diversify into non-property markets such as pharmacy, construction, electrical and electrical services and facilities management.

In 2019 the Carlings acquired building services company McGill which had been facing financial difficulties but, after receiving a reported £1 million investment cash, the firm collapsed in September this year with debts of £4.4 million. More success has been achieved with their second company purchase, electrical and plumbing firm Alliance.

Meanwhile, United Capital has been ‘actively seeking’ acquisition opportunities in the UK among cash-generative businesses with a turnover of £10m to £80m.

The self-styled, “innovative, socially responsible, and forward-thinking international property group” promotes itself as “committed to decarbonising existing properties to provide sustainable and environmentally-friendly buildings for work, life, and play”.

Graeme Carling is listed as a director of 15 firms at Companies House and owns the Affinity Business Centre and workforce accommodation company, Dundee Digs.

LandlordZONE has made multiple attempts to track the couple down via listed numbers and emails for their various businesses, and made a direct approach via his Twitter account, all with no response to date. Graeme’s recent tweets suggest the couple have recently been in Dubai and Portugal.

View Full Article: PROBE: What has happened to the UK’s most ambitious landlord and property duo?

Social Housing over-charge £2 Million in Rent

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‘Beyond housing ‘ operates Social Housing in the Cleveland, Redcar and North Yorkshire areas.Since 2010 they have been charging inaccurate rents and between  2016 and 2020 were not compliant with Rent Standard.

This is related to 486  properties with ‘at least £2 Million being overcharged!!!

View Full Article: Social Housing over-charge £2 Million in Rent

Propertymark investigates 5 agents for AML non-compliance

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Propertymark has opened compliance cases against five letting agent members following the latest HMRC publication of businesses who have failed to comply with anti-money laundering (AML) regulations.

The list of businesses who haven’t complied with the Money Laundering

View Full Article: Propertymark investigates 5 agents for AML non-compliance

Renters are better off today than they were last year

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It has been revealed that when accounting for inflation, renters are better off today than they were a year ago despite nominal rent increases of up to 14%.

The research from Ocasa, the specialist rental platform, found that without adjusting for inflation

View Full Article: Renters are better off today than they were last year

Nearly 70 estate agents under the spotlight over ‘dirty cash’ compliance failures

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Propertymark is scrutinizing five of its members on the HMRC’s list of firms which failed to comply with anti-money laundering regulations.

The newly published list reveals that 68 agents were issued penalties for failing to comply between 1st January and 31st March totalling over £500,000, five of which belong to the agents’ trade body.

Breaches include failing to apply for registration at the right time, failure to carry out risk assessments, and have the correct policies, controls and procedures in place, conducting due diligence and record keeping.

Propertymark says it has beefed up its compliance team to support its members, providing regular reminders about responsibility and liability, updates on HMRC and Trading Standards enforcement and penalties, and information on data protection.

Minefield

A spokesman adds: “Propertymark knows that compliance can be a minefield for both lettings and sales agents and legislation is constantly changing so its visits from its compliance team have proven to be invaluable to its members.

Propertymark undertakes visits in person and is currently undergoing development to get their team members out and about more frequently to review and support the procedures agents have in place.”

It aims to visit members at least once every five years and unlike HMRC or Trading Standards, gives firms a minimum of 10 working days’ notice.

All estate agents and certain letting agency businesses must be registered with HMRC for anti-money laundering. Agents should have procedures in place to detect suspicious activity and prevent money laundering to reduce the risk that criminals could target and exploit them for financial crime.

Read the full list of all firms not complying with AML regulations, including the 68 agents.

View Full Article: Nearly 70 estate agents under the spotlight over ‘dirty cash’ compliance failures

Daily Telegraph wants to speak with anyone buying a property

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The personal finance reporter for the Telegraph, Alexa Phillips, is looking to speak to landlords and non-landlords alike who are aiming to buy property at the moment about their experiences.

Alexa would like to know how you are approaching the market

View Full Article: Daily Telegraph wants to speak with anyone buying a property

City investors give Rothschild build-to-rent firm £19 million to develop site

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A build-to-rent (BTR) scheme in Rugby has been handed a huge cash boost from city investors.

Proof of the sector’s growing desirability, Investec Real Estate has given Edmond de Rothschild Real Estate Investment Management a £19.3 million development loan to support its construction of the 357-unit, which is set to fully open in January 2023.

With a mix of high-quality one- and two-bedroom apartments in a town centre location, Charolais Gardens will include a concierge, gym, residents’ lounge and wellness garden.

The loan is Investec’s first with Edmond de Rothschild, which has made the investment through its Residential Investment Fund UK that focuses on the development of affordable BTR assets in UK regional cities.

Connections

Jonathan Long, head of corporate real estate at Investec, says the transaction demonstrates its conviction in high quality, affordably priced build-to-rent schemes that benefit from great transport connections.

“The government’s Levelling Up agenda, impact of the Covid-19 pandemic and the sector’s defensive characteristics have seen accelerated investment in, and demand for, rental homes outside of London,” he explains.

“Establishing new relationships with high quality counterparties such as Edmond de Rothschild is a key part of our growth strategy, and we look forward building a long-term partnership.”

Last year saw a record £3.1 billion invested in regional BTR, with 20,000 homes currently under construction and a further 30,000 with planning approval. The sector has performed strongly against the challenging macroeconomic backdrop, with operators reporting strong lettings activity.

View Full Article: City investors give Rothschild build-to-rent firm £19 million to develop site

CGT due on assisted sale – advice?

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Hello, Assisted Sale and CGT query – and specifically what do solicitors and accountants consider the price to be – the actual sale price on market or price agreed in assisted sale document?

Accountant’s advice will be formally sought but before I get this I’d like to check out what others think of this scenario

Summary of situation put as simply as I can and leaving out cost of build

View Full Article: CGT due on assisted sale – advice?

Selective licensing?

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Hello, I had a selective license that ran for less than 5 years. I now need to apply and pay for a new selective license.

I have been told there was a Court case that set out that my original license should last for 5 years.

View Full Article: Selective licensing?

Times political editor claims Section 21 evictions ban to be ‘shelved’ by Truss

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A tweet by the political editor of The Times newspaper has claimed that Liz Truss is about to U-turn on abolishing Section 21 evictions.

Steven Swinford took to the social media platform late last night to claim that Liz Truss is shelving Michael Gove’s plans to end no-fault evictions, which were due to be introduced in this Parliamentary session

“The Times has been told that they are not considered a priority & could be killed off entirely, despite being a manifesto commitment,” he says.

Although Swinfords unattributed claims have only been mentioned in passing within his newspaper, commentary has been swift from key figures within the industry.

Paul Shamplina (pictured), founder of Landlord Action, says: “If this true, after three years of indecision about being abolished, it would be a major victory for landlords.

“I speak to landlords and agents every day and the feedback has been they generally have been worried about being able to gain possession of a property back.

“This move will also see a lot of landlords change their mind in selling up, which can only be good for tenants.  Housing stock has been dwindling and rents have been rising. I’ve said it all along it’s called non fault eviction, but there is always a fault.”

Condemnation from Labour figures and housing campaigners has also been swift. Labour’s Lisa Nandy, shadow cabinet member for the DLUHC, says: “Millions of people are only a few weeks from losing their home through no fault of their own. The Tories promised to stop this at the last election. Now this. You cannot trust a single word they say.

Matthew Pennycook (pictured), Labour’s housing spokesperson, adds: “Liz Truss has decided to betray private renters. Labour will abolish section 21 ‘no-fault’ evictions and strengthen tenants’ rights through a new renters’ charter.”

And Baroness Kennedy, director of Generation Rent says: “Totally flabbergasted. The Conservatives commitment to abolish evictions for no reason was made after a consultation, at a general election, confirmed by two prime ministers at three Queen’s speeches – if this is true it is shameful.”

View Full Article: Times political editor claims Section 21 evictions ban to be ‘shelved’ by Truss