Only 54% of non-portfolio landlords aware of EPC requirements for 2025

admin    Uncategorized     agents

Buy to let portfolio landlords are more likely to be aware of the government’s proposed EPC requirements than non-portfolio landlords, according to new research by Landbay.

From 2025, all rental properties with new tenancies must have an EPC rating of at least C and for existing tenants

View Full Article: Only 54% of non-portfolio landlords aware of EPC requirements for 2025

Property market supply falls by 21%

admin    Uncategorized     agents

The number of properties listed with estate agents has fallen by an average of 21% in the last year.

In January 2021, estate agents across England and Wales had an average of 33 properties on their books. This included both available properties and those sold subject to contract.

View Full Article: Property market supply falls by 21%

SDLT on Private Purchase of two properties to be combined to one?

admin    Uncategorized     agents

We have a portfolio of properties rented out and are buying 2 attached cottages to make 1 private residence (the cottages are on separate deeds being purchased from the same seller). We are selling our main residence to fund the purchase.

View Full Article: SDLT on Private Purchase of two properties to be combined to one?

LandlordZONE parent firm Hamilton Fraser acquired by insurance intermediary giant

admin    Uncategorized     agents

Hamilton Fraser, the parent company of LandlordZONE, has been acquired by the UK’s largest independent insurance intermediary group Global Risk Partners (GRP).

The deal, which is for an undisclosed sum, is subject to regulatory approval by the CMA.

Borehamwood-based Hamilton Fraser, as well as being a leading supplier of insurance products and services to landlords and letting agents, operates three of the UK’s government-approved private rented sector schemes.

These are myDeposits, the Property Redress Scheme and Client Money Protect as well as leading evictions firm Landlord Action.

All of the group’s staff will move over to become GRP employees as will its senior team including CEO Eddie Hooker, who founded Hamilton Fraser in 1996 with Simon Fox and David Jacobs and remains a significant shareholder.

Digital future

“Hamilton Fraser is joining forces with a like-minded business in GRP, which like us has seen the future of insurance and realised it will become increasingly digital which is particularly true within the property sector,” says Hooker (pictured).

“I’m confident they are the best custodians for our business, our people and our loyal clients as we embark on the next exciting stage of our development.”

Stephen Ross, GRP’s head of M&A, who says he was impressed with the “sheer quality of the Hamilton Fraser business, which has an outstanding track record of success in its chosen niches and is a superb fit for GRP”.

“Hamilton Fraser is a high-class brokerage with a strong commitment to digital innovation and customer-centricity, built on a deep understanding of the specialist markets in which they operate.”

Hamilton Fraser will continue to trade under its existing brands and will sit within GRP’s high-growth digital division headed by Steve Anson, its COO.

GRP is one of the largest independent insurance intermediaries in the UK and itself was acquired via a majority shareholding by global private investment firm Searchlight Capital Partners in 2020.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LandlordZONE parent firm Hamilton Fraser acquired by insurance intermediary giant | LandlordZONE.

View Full Article: LandlordZONE parent firm Hamilton Fraser acquired by insurance intermediary giant

The Last Chance To Get Your Deal Funded

admin    Uncategorized     agents

Have you got a property project that requires funding?

Are you looking for a business partner or an Angel Investor to make that deal happen?

Here is your last chance to apply to Property Elevator to get just that.

View Full Article: The Last Chance To Get Your Deal Funded

EXCLUSIVE: Landlords accuse big council of ‘bulldozing’ through licensing schemes

admin    Uncategorized     agents

Landlords in Ealing are dismayed that two controversial licensing schemes have been “bulldozed” through without properly engaging them in the consultation process.

Many opposed the HMO licensing scheme and renewed selective licensing scheme which were rubber-stamped in December after a public consultation and come into force on 1st April.

Last summer, they complained of being kept in the dark about the council’s proposals which they also criticised for being ‘cobbled together’ and lacking detail or justification.

Peter Littlewood, of landlord campaigning group iHowz, says the authority made no attempt to communicate with them, or local landlords. 

He tells LandlordZONE: “We invited Ealing to several meetings, we asked them for comments, to justify the new scheme, and to show us what should be a public report on the success, or other, of the previous scheme.

“To all these we had no response, not even an acknowledgement they had received the emails.”

Money maker

Adds Littlewood: “The scheme has been introduced to earn the council money, with property conditions being a firm afterthought. They appear to be determined to bulldoze this through.”

However, a council spokesman insists: “The council has an ongoing publicity campaign to ensure all key stakeholders are made aware of the new schemes.”

The HMO licensing fee is £1,100 per HMO plus £50 for each habitable room, with the first payment of 30% payable on application to cover the costs of processing the application form.

If the application is refused, this first payment won’t be refunded. The new selective licencing fee is £750, with an initial payment of £225 taken at application.

Like most councils, Ealing doubtless won’t accept ignorance of its schemes as an excuse; in nearby Waltham Forest, a landlord was recently handed a £5,400 rent repayment order for not registering with a selective licensing scheme after a First Tier Property Tribunal rejected her defence that she didn’t know about it.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Landlords accuse big council of ‘bulldozing’ through licensing schemes | LandlordZONE.

View Full Article: EXCLUSIVE: Landlords accuse big council of ‘bulldozing’ through licensing schemes

Labour burns its bridges with landlords with call to speed up rent controls introduction

admin    Uncategorized     agents

Labour’s housing spokesman in Scotland has called on its government to bring in rent controls to stop landlords hiking up prices before their expected introduction in 2025.

The government is consulting on proposals for a new deal for tenants in the country, including a system of rent controls, setting up a regulator for the private rented sector, and creating a new housing standard covering all homes.

However, Labour MSP Mark Griffin fears the current target doesn’t come soon enough. Speaking to a local TV station, Griffin said: “There’s no need for it to be so late in the parliament because it just gives landlords the opportunity to ramp prices up before any cap comes in.

“We should be looking to do this now. We can see the cost of living going through the roof just now and people absolutely struggling to make ends meet.”

Overheating

Griffin suggests that the housing sector is overheating due to an increase in the number of people looking for a new home after two years of the pandemic.

“People are being charged more and more to buy a property or to rent a property so that’s why we think the government should step in,” he adds.

A proposal for rent controls was first made in MSP Pauline McNeill’s Fair Rents Bill in 2019, which the Scottish Association of Landlords believes could lead to higher and more frequent rent increases as well as a shortage in the supply of homes.

Labour Scotland’s pledge mirrors the party’s national policy as its website still stands by its 2019 private renters’ charter which promised to cap rents at inflation nationally, while Labour London mayor Sadiq Khan continues to campaign for similar powers. Elsewhere, Bristol is bidding to become the first UK city to have the power to cap rents.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Labour burns its bridges with landlords with call to speed up rent controls introduction | LandlordZONE.

View Full Article: Labour burns its bridges with landlords with call to speed up rent controls introduction

BREAKING: Trading Standards moves to regulate sales and lettings portal listings

admin    Uncategorized     agents

Property portal listings for rented and for-sale properties will soon be required by law to have mandatory information within them following the launch of a much-anticipated initiative from National Trading Standards.

Its Estate and Lettings Team (NTSELAT) has launched Phase 1 of a programme that will see some of the basics ‘required’ on portal listings including price or rent, size of deposit, council tax band or rate and fore sales properties, whether its leasehold, freehold or commonhold.

Phase I is to go live this month with agents required to be compliant by the end of May.

Later phases will be backed by legislation will make it compulsory for property listings to include utilities available within a property, non-standard features that could influence a transaction decision and more prosaic factors too including location.

The initiative is part of NTSELAT’s attempts to make renting and buying property more transparent and fairer for buyers and tenants, and earlier this month was rolled into the government’s ‘levelling-up’ White Paper announcement.

“These technical changes will prompt all players in the property market to do things a bit differently,” says NTSELAT Senior Manager James Munro (pictured).

“Vendors and agents may find that bringing conveyancers on board at the outset helps ensure all information is available for marketing, and issues with things like restrictive covenants or boundaries can be addressed earlier.

“For consumers, a better understanding of why certain information such as a property’s tenure is important will enable them to make informed decisions when they embark on a property search.”

A further two phases are being developed which will incorporate further material information such as restrictive covenants, flood risk and other specific factors that may impact certain properties.

Sean Hooker (pictured) Head of Redress at The Property Redress Scheme, said: “This is great news for the consumer and will lead a much more transparent and consistent way of introducing properties to the market.

“It will also give clarity and assurance to agents that they are doing the right thing, will set the ground rules on what is expected and avoid the consequences of not providing a good level of information. Fewer complaints, faster transactions, happier customers, what is not to like?”

Theresa Wallace, (pictured) Chair of The Lettings Industry Council, adds: “The material information project is a crucial piece of work to ensure that consumers looking at buying or renting property can make an informed decision earlier in the process.

“The objective is to provide consumers with more information prior to viewing a property. This will be a big change for the industry who have come together to support this initiative and The Lettings Industry Council felt it was important to be a part of a project that can have a real benefit for consumers.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Trading Standards moves to regulate sales and lettings portal listings | LandlordZONE.

View Full Article: BREAKING: Trading Standards moves to regulate sales and lettings portal listings

Commercial property energy upgrades could cost over £30bn

admin    Uncategorized     agents

The road to net zero is paved with additional costs for Britain, not least the amount of money it will take to upgrade commercial property, in the industrial alone.

Achieving grade “B” ratings under the 2030 Minimum Energy Efficiency Standards (MEES) requirements for the UK’s industrial, manufacturing, logistics and warehousing property stock has been estimated to cost up to £30.5bn, that’s according to data supplied to Property Week by commercial real estate agents, Avison Young.

The agency’s soon to be published “Building Zero: the road to zero carbon logistics” report, spells out the changes that will need to be made, and the cost of doing so to achieve the new standards. If the regulations shift to require owners to meet an even higher standard, an EPC rating of “A” for example, post 2030, to meet the 2050 net zero target, costs will be higher still.

The UK Government’s recently announced 10-point plan to accelerate progress to net zero carbon, supporting the delivery of objectives set out in the Paris Climate Change Agreement, has encouraged all industries to refocus on their environmental commitments. The push for legislation

and more industry standards, led by the UK Business Council for Sustainable Development (UKBCSD), is also gathering pace.

The Current Standards

Currently, with only a few exemptions, the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES) prevent landlords from granting a new tenancy of sub-standard commercial property, i.e. property that has an EPC rating of F or G. It means that landlords must make sufficient energy efficiency improvements to their properties in time to ensure they meet the standards.

Government has estimated that approximately 18% of commercial properties are currently in the EPC ‘F’ and ‘G’ rating brackets. In future this will adversely affect the ability of landlords to let or continue to let such properties – valuation and marketability are diminished, and debt borrowing will be affected, along with rent reviews and dilapidations assessments.

2030 and beyond

MEES will not currently apply if a commercial property has an EPC of E or above, however, the UK Energy White Paper 2020: Powering our net zero future confirms the Government’s intention that the future for non-domestic MEES regulation will move to EPC rating of “B” by 1 April 2030.

Therefore, although it may be tempting for landlords to target an EPC rating of E when upgrading, this is the bare minimum standard – such a commitment could be short-sighted. Landlords who decide to future-proof their buildings will not only save money in the long-term, their buildings will immediately be more marketable, a more attractive proposition for tenants, prospective purchasers and investors.

There is now a suggestion that Government might give local authorities access to the central EPC database to assist them in identifying properties that are let in breach of MEES. This would greatly assist local authorities in enforcing the MEES regulations and put pressure on owners to comply.

Daryl Perry, head of UK insight at Avison Young has said:

“The cost of improving the UK’s industrial, manufacturing, logistics and warehousing stock – even just in terms of MEES – is immense, Taking into consideration merely recommendations for improvement for existing buildings with EPCs, we estimate that the total cost for achieving the 2030 MEES requirement for industrial stock comes to £30.5bn, at an average cost of just under £344,000 per building.”

Mr Perry says that detailed modelling on an array of buildings undertaken by the company suggests that 1980s and 1960s buildings – under the current seven-year payback guidance – would only achieve and EPC grade ‘C’.

“While a number of forward-thinking developers are moving towards net zero carbon development and on-site energy generation, arguably the greater challenge is around how to upgrade existing stock, with 80% of the UK’s industrial stock more than 20 years old,” he says. “The policy shift around MEES, and changing requirements, has the potential to create significant environmental obsolescence.”

Meeting EPC standards is a huge challenge for property owners, but it is not the only task involved in meeting overall business sustainability standards in the industrial sector. Occupier requirements will drive the work needed to minimise buildings and supply chain emissions.

Non-domestic private rented property: minimum energy efficiency standard – landlord guidance

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Commercial property energy upgrades could cost over £30bn | LandlordZONE.

View Full Article: Commercial property energy upgrades could cost over £30bn

DODGY COURSES: Outrage as another young wannabe landlord racks up £10k debt

admin    Uncategorized     agents

A concerned landlord has highlighted the case of yet another would-be investor who has fallen foul of dubious property educators and called for the National Residential Landlords Association (NRLA) to take action.

The person involved is a 27-year-old, who has a degree and works for the police and who wanted advice on how to grow a buy-to-let business to help pay for her children’s education and started off by following education courses on YouTube and Facebook.

However, she then signed up for a property training course – paying more than £10,000 for the privilege – and her credit rating has now been badly affected by getting into serious debt.

The veteran investor tells LandlordZONE that the woman, a tenant’s niece, now admits she was gullible and regrets paying for information that is available for free on the internet.

Refund

“She spent the equivalent to a deposit on a low-value buy-to-let property but has come out of this without buying any houses and doesn’t have a hope of getting a refund.”

She believes something needs to be done to address the unregulated property training sector which is raking in money using smoke and mirror techniques.

“This sector is like the Wild West,” she says. “By marketing flashy cars, watches and mansions, it is showing up all landlords to be greedy and self-centred with little regard for anyone else but ourselves. We have a bad reputation to start with, without making it worse for honest landlords.”

She believes the NRLA should be proactive in advising the public about the sector and lobbying government.

She adds: “The government should also be persuaded to regulate this wealth education, get-rich-quick-through-property sector in the same way that it regulated the financial sector, which forced out the more dubious companies.”

The landlord we interviewed wishes to remain anonymous. Read more about the case here.

Read more about efforts to self-regulate the property educators sector.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – DODGY COURSES: Outrage as another young wannabe landlord racks up £10k debt | LandlordZONE.

View Full Article: DODGY COURSES: Outrage as another young wannabe landlord racks up £10k debt