Affordability and summer heat being felt in the lettings market

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Affordability is becoming increasingly important in the lettings market as it continues to heat up over the summer, one lettings agency reveals.

They point out that its rental value growth forecasts for 2022 are being upgraded as stock remains low and demand shows little sign of easing.

View Full Article: Affordability and summer heat being felt in the lettings market

How landlords can beat the looming economic crisis of soaring inflation

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Tired of renting, fed up with regulations, constant tenant hassle, costly repairs and, to cap it all, hammered by Section 24 Tax? You are not alone. Landlords nationwide have had enough and are looking to get out of renting by selling all or part of their portfolios.

View Full Article: How landlords can beat the looming economic crisis of soaring inflation

‘Spray foam must be regulated to stop properties becoming un-mortgageable’

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Urgent regulation of the spray foam industry is needed to prevent making thousands of homes un-mortgagable, warn leading property groups.

Sprayed polyurethane expanding foams are often used in lofts, either to stabilise a failing roof covering or to provide extra insulation. But a tightening of lending criteria has left thousands of homeowners unable to sell their properties because buyers are refused loans if spray foam is present.

The Residential Property Surveyors Association (RPSA) says it is becoming a significant problem as many installations are done badly while there are also regular reports of mis-selling, and cold-calling of vulnerable homeowners.

Chairman Alan Milstein (pictured) explains: “There is no regulation of installers and almost any cowboy salesman can get hold of the chemicals and the equipment to spray foam into the homes of unsuspecting ‘at risk’ owners.

“This has to stop and proper regulation of the industry is urgently needed. We believe that this is the only way to resolve the current lending impasse.”

Milstein says a regulatory framework needs to include mandatory training and qualification of installers, effective audit and review procedures, and a strict non-supply policy by manufacturers to any installer who is not properly accredited.

He says the group will work with the lending community to design inspection protocols to give lenders the confidence to provide an advance for a home with a properly managed spray foam installation. “We cannot continue to see homeowners placed in such financial distress.”

Steve Hodgson, CEO of the Property Care Association (PCA), adds: “The improper use of spray foam insulation can have devastating consequences or end up costing thousands for little benefit. So it’s vital that the spray foam industry is properly regulated and managed.”

View Full Article: ‘Spray foam must be regulated to stop properties becoming un-mortgageable’

LATEST: Jersey leaders call for landlords not to increase rents as inflation rises

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The Jersey Landlords’ Association (JLA) has urged landlords not to put up rents if they can possibly help it during the cost-of-living crisis.

It says many of its members, many of whom use their rented property as a pension, are already exercising restraint by not increasing rents this year or increasing rents by less than inflation, as are social housing providers.

A spokesman adds: “We would urge JLA members and all other private landlords to continue to exercise restraint when reviewing rents, if they are able – taking all tenant and landlord circumstances into account – during this hopefully temporary time of high inflation.”

Earlier this month, Jersey’s government unveiled a plan to tax islanders less and give some people more money in benefits to help deal with rising living costs. The association says it welcomes the mini-budget along with the government’s efforts to build more much-needed housing to take the heat out of the market.

Spiral

The JLA spokesman adds: “Our members are also aware of the risks to the wider economy of creating a spiral of inflation driving rent increases which, in turn, leads to more inflation, but also that landlords are not immune to the effects of inflation either.

“In particular, the costs of property maintenance, repair and renovation have spiralled over recent years and mortgage interest payments are steadily increasing for landlords and homeowners alike.”

In January, Jersey’s Reform Party announced a shake-up the rental market to give private renters recourse against unfair or unjustified rent increases. Its Fair Rents Plan includes moves to reinstate the Rent Control Tribunal, giving private renters the opportunity to appeal to an independent body if they believe their rent is excessive.

View Full Article: LATEST: Jersey leaders call for landlords not to increase rents as inflation rises

DOUBLE WHAMMY FOR LANDLORDS – Interest Rate Rises AND Section 24

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Until the recent interest rate rises started to bite into cashflow, many larger portfolio landlords had taken the decision to pay the extra tax resulting from the Section 24 restrictions on finance cost relief as opposed to restructuring their business.

View Full Article: DOUBLE WHAMMY FOR LANDLORDS – Interest Rate Rises AND Section 24

LATEST: City makes next move to implement huge new HMO restrictions

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Coventry council has taken its next step towards a huge new scheme that will prevent properties being converted in HMOs without full planning permission.

Eleven out of 18 wards within the city will be covered including Foleshill, Radford, Sherborne, St Michael’s, Earlsdon, Lower and Upper Stoke, Cheylesmore, Wainbody, Westwood and Woberley (see map).

The plans, which were first announced in xxx, will now be put to a full Cabinet meeting on the 30th of August after which a public consultation will take place and implementation most likely next year.

A council report on the proposals makes it clear that it wants to prevent any “unnecessary and avoidable displacement of families searching for properties and provides opportunities for those looking to get onto the property ladder by limiting the number of HMOs in certain wards and ensuring that they are not located so closely together”.

Control numbers

Cabinet Member for Housing and Communities, Councillor David Welsh (pictured) says: “We want to manage the development of HMOs across Coventry and especially in areas of the city where we need to have the ability to control their numbers.

“Housing developments must meet housing need in the city. We need good quality affordable homes for families, we believe this will help improve neighbourhoods.”

Deputy Cabinet Member for City Services, Councillor Gavin Lloyd, who is also a Sherbourne Ward Councillor, adds: “Whilst HMOs are an integral part of the community, as they provide housing to students and young professionals who house share, by controlling the number of them throughout the city – and particularly those in the most saturated areas – we’re supporting residents and accommodating the housing needs of the many, not the few.”

View Full Article: LATEST: City makes next move to implement huge new HMO restrictions

Tenants frustrated by lack of communication with letting agents

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Many tenants say they feel ignored by their letting agent, with delays in responding to problems being the most common complaint, research reveals.

Researchers questioned 2,000 tenants and found that 31% of those who tried to contact their letting agency with an out-of-hours emergency didn’t receive a response.

View Full Article: Tenants frustrated by lack of communication with letting agents

House prices AND inflation rose in June

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The UK’s average house price increased by 7.8% in the year to June 2022, the latest data from the Office for National Statistics (ONS) reveals.

And the ONS has also announced that the rate of annual inflation to July has hit double digits –

View Full Article: House prices AND inflation rose in June

EXCLUSIVE: Landlords battle city council over HMO council tax re-valuations

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Portsmouth’s HMOs are in the firing line again as growing numbers are being referred to the Valuation Office Agency (VOA) to have their council tax bands reassessed.

Rather than paying tax on the whole property, each room can be classified as a band A at a cost of £1,200, with tenants able to apply for a 25% single-person discount, taking the bill to £900 for each resident.

Tenants have even been charged back-dated council tax, meaning that some owe more than £3,000 without even realising, particularly if they’ve already moved out, according to the Portsmouth & District Private Landlords Association.

Although the practice was brought in to deal with commercial units being converted into residential properties, chairman Martin Silman suspects the council is referring each HMO that comes through its planning system. He says at last 12 members have been recently affected, as well as a local councillor who lives in an HMO.

“A member was told by the VOA that it was getting a lot more referrals than anywhere else in the country, so we’ve put in a Freedom of Information request as we’re hoping to get some answers,” Silman (pictured) tells LandlordZONE.

“Unfortunately, tenants will end up footing the bill, pushing up the lowest rents in the city which in turn will push all the city’s rents up, along with house prices.”

Chris Ward, Portsmouth Council’s director of finance, says he recognises landlords’ concerns and that the council is not deliberately seeking to ‘disaggregate’ council tax bills for HMOs.

He tells The News: “The council has no role in determining the council tax band of properties in the city, or when any changes should be effective from. This is the responsibility of the Valuation Office Agency which then informs the council. We are then obliged to bill the council taxpayer from that date.”

This summer, the city has been consulting on plans to introduce additional licensing for smaller HMOs which the landlord group believes will drive more out of the market, push rents up and create homelessness.

View Full Article: EXCLUSIVE: Landlords battle city council over HMO council tax re-valuations

EXCLUSIVE: Landlords battle city council over controversial council tax re-valuations

admin    Uncategorized     agents

Portsmouth’s HMOs are in the firing line again as growing numbers are being referred to the Valuation Office Agency (VOA) to have their council tax bands reassessed.

Rather than paying tax on the whole property, each room can be classified as a band A at a cost of £1,200, with tenants able to apply for a 25% single-person discount, taking the bill to £900 for each resident.

Tenants have even been charged back-dated council tax, meaning that some owe more than £3,000 without even realising, particularly if they’ve already moved out, according to the Portsmouth & District Private Landlords Association.

Although the practice was brought in to deal with commercial units being converted into residential properties, chairman Martin Silman suspects the council is referring each HMO that comes through its planning system. He says at last 12 members have been recently affected, as well as a local councillor who lives in an HMO.

“A member was told by the VOA that it was getting a lot more referrals than anywhere else in the country, so we’ve put in a Freedom of Information request as we’re hoping to get some answers,” Silman (pictured) tells LandlordZONE.

“Unfortunately, tenants will end up footing the bill, pushing up the lowest rents in the city which in turn will push all the city’s rents up, along with house prices.”

Chris Ward, Portsmouth Council’s director of finance, says he recognises landlords’ concerns and that the council is not deliberately seeking to ‘disaggregate’ council tax bills for HMOs.

He tells The News: “The council has no role in determining the council tax band of properties in the city, or when any changes should be effective from. This is the responsibility of the Valuation Office Agency which then informs the council. We are then obliged to bill the council taxpayer from that date.”

This summer, the city has been consulting on plans to introduce additional licensing for smaller HMOs which the landlord group believes will drive more out of the market, push rents up and create homelessness.

View Full Article: EXCLUSIVE: Landlords battle city council over controversial council tax re-valuations