Misleading Right Move Adverts – What can we do?

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We are in a situation, where a dubious agent is advertising greenbelt land for sale on RightMove.com with a clause that says ‘Suitable for residential, commercial or agricultural subject to the necessary consents’.

The local farmland was recently purchased

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BREAKING: Ministers delay publishing rent reform proposals until next year

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The government has revealed that it is to delay publishing its long-awaited proposals to reform the private rented sector until next year.

In a statement released today, the Department for Levelling Up, Housing and Communities (DLUHC) says the delay is required because it needs ‘additional and necessary time to develop the balanced package of reforms that we promised to deliver’.

Michael Gove’s DHLUC says in an email sent out to the industry trade bodies that this will “not only allow us to benefit from continued work with the sector but will also allow us to carefully consider the findings of the National Audit Office’s review of regulation of the sector which is due to report in the coming months.”

“Responding to the DHLUC email, Isobel Thomson, safeagent Chief Executive, says: “We welcome the clarity on when the White Paper on reforms to the private rented sector (PRS) will be published.

“It makes sense to wait for the findings of the National Audit Office’s review of existing regulation and exploration of key sector organisations’ aspirations for PRS reform for the benefit of tenants and landlords [due ‘this winter’]. safeagent took part in the NAO’s review and looks forward to the report being published.”

When the proposals to reform the PRS are finally published within its White Paper, it will have been a long wait – the monarch revealed in May that the government intended to publish the document ‘in the Autumn’.

The proposals will include several radical new measures for the PRS including a new ‘lifetime’ tenancy deposit model, bringing forward reforms to drive improvements in standards including by ensuring all tenants have a right to redress and also exploring the merits of a landlord register.

Sean Hooker, Head of Redress (pictured) at the Property Redress Scheme, says: “I appreciate the industry is on tenterhooks waiting to see what the proposals will be and uncertainty is not good for any sector, the fact the Government is continuing to consult with us and gather evidence on the impact and unforeseen consequences of the changes, is a prudent thing to do.

“For the sake of a few months more, let’s get this right not rush it through half baked. What is essential is once the White Paper is published, that the process speeds up and a consensus is achieved that benefits all parts of the vital housing market.  

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Ministers delay publishing rent reform proposals until next year | LandlordZONE.

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Labour claims Rishi Sunak’s stamp duty holiday led to buy-to-let bonanza

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Labour claims its analysis has found that the number of buy-to-let mortgages had tripled when the Chancellor announced his stamp duty holiday plans in his 2020 budget.

The stamp duty holiday was introduced by the Chancellor in July 2020. Subsequently it was then extended until 30 June 2021. 

To boost the UK property market

The idea was to help homebuyers and to boost the UK property market during the COVID-19 pandemic. This meant that buyers completing a purchase on a property for less than £500,000 before 1 July 2021 didn’t have to pay any stamp duty.

Stamp duty went back to normal rates in stages. From 1 July to 30 September, it was payable on the cost of properties above £250,000. Then, from 1 October, it reverted to pre-holiday rates, starting at £125,000.

Landlords purchasing buy-to-let properties still had to pay an extra 3% in Stamp Duty on top of the revised rates for each band.

At the expense of first-time buyers

Labour say that Rishi Sunak’s stamp duty holiday has led to a bonanza for buy to let landlords – and a blow to first-time buyers, their research indicates.

Labour’s analysis found that the number of buy-to-let mortgages actually tripled after the Chancellor announced the stamp duty land tax temporary reduction in his 2020 budget, a zero rate that would be increased from £125,000 to £500,000.

The concession also applied to all buy-to-let landlords and second homeowners, which Labour strongly objected to. The opposition party says that its analysis of figures from UK Finance shows that buy to let mortgages had tripled from 4,500 when the holiday was announced in July 2020, to 152,00 in June 2021, when the biggest tranche of discount came to an end.

During this time the proportion of mortgages to first time buyers came down every month from October 2020 to June 2021 according to labour’s figures.

Shadow Housing Secretary Lucy Powell says that in March and April 2021, the months before the holiday was first expected to end, the proportion of mortgages to first time buyers was down 10% on the previous year.

She said: 

“The Conservatives have wasted millions of pounds on a stamp duty holiday which benefitted landlords and second homeowners, over first-time buyers trying to get a foot on the ladder.

“Rather than seeing homes as the bedrock of a stable and successful life, the Conservatives treat housing as a commodity to be traded and profited from.”

Labour’s figures show that in the South West, mortgages for first time buyers were down 14% on the previous year in April 2021. In the North West they were down 11%, and in the East and West Midlands they were down 12% in March 2021.

Lucy Powell went on: 

“Labour is the true party of home ownership. Rather than robbing first-time buyers of their advantage, we would give them first dibs on new build homes, and stop the scandal of developments being sold off plan to overseas investors.”

A Treasury spokesperson had said: 

“Our temporary stamp duty cut helped to protect hundreds of thousands of jobs which rely on the property market by stimulating economic activity.”

Tenant arrears fund

Tenants in rent arrears are to get a £65million fund to help them after the Government eviction ban and the Universal Credit uplift come to an end.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Labour claims Rishi Sunak’s stamp duty holiday led to buy-to-let bonanza | LandlordZONE.

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Yorkshire council boasts about its eye-watering fines for errant private landlords

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Harrogate Borough Council has fined seven rogue landlords a total of £109,000 since 2018 for failing to meet housing standards, one of a growing number of local authorities keen to parade its track record on prosecutions.

The council boasts that it has successfully defended every appeal made by a private landlord against financial penalties.

It most recently took action against Jamshid Jalali-Ghazaani, who ignored an improvement notice on his property on the High Street in Starbeck after the council found several hazards including excess cold, structural and kitchen safety issues.

He was fined £25,000 and appealed against the penalty which was dismissed by a property tribunal.

Other successful defences include against landlord Stephen Archer who was fined £15,000 for failing to comply with an improvement notice at a property on Providence Terrace, and landlord Andrew Norman who was fined £13,500 for failing to comply with licence conditions at an HMO in Dragon Parade.

Harrogate Council (pictured) has also issued financial penalties totalling £40,589 against other landlords who did not appeal.

Encourage landlords

Trevor Watson, director of economy, environment and housing, says: “This is an important reminder for landlords that as the housing authority we have the powers, and where necessary, will use them to protect tenants and residents, and hopefully encourage landlords to improve housing standards in the private rental sector.”

Earlier this month the Department for Business, Energy and Industrial Strategy announced a new campaign along with an extra £4.3m of extra funding to help councils clamp down on errant landlords.

Councils will share the cash to make an extra 100,000 engagements with difficult to reach landlords who own the worst performing properties that fail to meet a minimum energy performance rating of EPC band E. The money will pay for local radio ads, roadshows and workshops.

Read more about fines in Harrogate.

Image: Farrell & Clarke Architects.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Yorkshire council boasts about its eye-watering fines for errant private landlords | LandlordZONE.

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Isle of Wight votes to bring in £30,000 fines for rogue landlords

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Isle of Wight landlords face a crackdown after the council agreed to bring in tough new civil penalties, LandlordZONE can reveal.

The council is the latest to introduce fines of up to £30,000 which will be used where landlords fail to comply with improvement notices, offences in relation to HMO licensing and contravening an overcrowding notice.

The council says it will choose how to prosecute those involved, either by enforcing a civil penalty or through the magistrates’ court, on a case-by-case basis.

According to Island Echo, when reviewing one case the council had recently dealt with concerning a landlord who’d failed to fix nine hazards in a home where three children lived, housing enforcement officers determined that reasonable civil penalties would have been about £10,000.

The island has a rented sector of nearly 17,000 households. The council reports that money made from civil penalties would create a sizeable income for housing enforcement purposes, with the potential to add more resources to regulate housing standards.

A council report states: “We aim to support good landlords who provide decent homes and avoid unnecessary regulation which increases costs and red tape for landlords and also pushes up rents for tenants.

“However, a small number of rogue landlords knowingly rent out unsafe and substandard accommodation. We are determined to crack down on these landlords and disrupt their business model.”

Read more about the Isle of Wight.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Isle of Wight votes to bring in £30,000 fines for rogue landlords | LandlordZONE.

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CGT reporting extended to 60 days

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As of Budget day, the government has immediately extended the deadline to report a Capital Gain on the sale of residential property from 30 days to 60 days.

They have obviously realised this was a needlessly tight timescale and may have responded to complaints made by members of the Association of Accounting Technicians who have been very vocal on the subject

Adam Harper

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UC taper cut does not undo the damage

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Responding to the announcement in the Budget that the Universal Credit taper will be cut from 63 to 55 per cent from 1st December 2021, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Today’s announcement is welcome news for those private tenants who have struggled to afford their rents throughout the pandemic

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BREAKING: Landlords given a month longer to pay CGT bills, budget reveals

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Landlords have been given longer to pay their Capital Gains Tax (CGT) on residential property gains from 30 to 60 days, Chancellor Rishi Sunak has announced in his Autumn budget.

The measure, which takes effect immediately but was hidden in the budget statement’s lengthy accompanying detail, applies to UK residents who are selling residential property within England.

For non-UK residents disposing of property in the UK, this deadline will also increase from 30 to 60 days.

“This will ensure that taxpayers have sufficient time to report and pay CGT, as recommended by the Office of Tax Simplification,” the Chancellor’s post-budget guidance says.

“When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.”

Previously, those reporting and paying tax on CGT had much longer – until the end of the tax year.

The Association of Accounting Technicians (AAT) says it has been lobbying for the past 18 months for this change.

It has highlighted member concerns that 30 days was not long enough, saying: “The process is reliant on clients setting up a CGT account online – which can take at least two weeks – within 30 days,” says its Head of Public Policy Phil Hall.

“Agents are not able to do this for their clients, which means this deadline is often missed, particularly around Christmas.

“It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer.

“I am very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Landlords given a month longer to pay CGT bills, budget reveals | LandlordZONE.

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BREAKING: Property sellers given a month longer to pay CGT bills, budget reveals

admin    Uncategorized     agents

Landlords have been given longer to pay their Capital Gains Tax (CGT) on residential property gains from 30 to 60 days, Chancellor Rishi Sunak has announced in his Autumn budget.

The measure, which takes effect immediately but was hidden in the budget statement’s lengthy accompanying detail, applies to UK residents who are selling residential property within England.

For non-UK residents disposing of property in the UK, this deadline will also increase from 30 to 60 days.

“This will ensure that taxpayers have sufficient time to report and pay CGT, as recommended by the Office of Tax Simplification,” the Chancellor’s post-budget guidance says.

“When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.”

Previously, those reporting and paying tax on CGT had much longer – until the end of the tax year.

The Association of Accounting Technicians (AAT) says it has been lobbying for the past 18 months for this change.

It has highlighted member concerns that 30 days was not long enough, saying: “The process is reliant on clients setting up a CGT account online – which can take at least two weeks – within 30 days,” says its Head of Public Policy Phil Hall.

“Agents are not able to do this for their clients, which means this deadline is often missed, particularly around Christmas.

“It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer.

“I am very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Property sellers given a month longer to pay CGT bills, budget reveals | LandlordZONE.

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Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal

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Chancellor Rishi Sunak has cut the amount the government claws back from workers who receive Universal Credit (UC) top-ups from 63p to 55p for every £1 they earn, but also confirmed £5 billion in funding to help bail out more property owners hit by the cladding scandal.

The new UC announcement, together with a £500 increase in work allowances, means Sunak is supporting many of the lowest-paid families with a £2 billion scheme worth £1,000 a year on average to the poorest UC claimants who have their pay topped up by the state.

“This is a two billion pound tax cut for the lowest-paid workers in our country, supports their costs of living and rewards work,” he told MPs.

Sunak said it would affect some two million families, the majority of whom will be renters, and come into effect at the beginning of December at the latest.

He gave two examples. This included that a single mother earning the national minimum wage and renting her home would be better off by £1,200 a year, while a couple with two children renting their home would be better off by £1,800 a year.

Read more about Universal Credit.

Cladding costs

Sunak’s budget speech offered slim picking for landlords overall unless they property owners within tower blocks affected by the cladding scandal.

The Chancellor confirmed the government’s £5 billion to fund more relief for those facing financial difficulties following the Grenfell tragedy – many of whom are landlords.

Mary-Anne Bowring (pictured), MD of property management firm the Ringley Group, says: “A blanket tax on developers is fairer than leaving leaseholders to shoulder the burden but it is still a blunt instrument to use to fix the cladding crisis.

“Fundamentally, accountability should fall squarely on those who overlooked the potential hazards of unsafe cladding in the first place.”

Estate agent Jeremy Leaf (pictured) adds: “The £5 billion fund is a step in the right direction but nowhere near the sums mentioned as being realistic to resolve the problem.

“A proper assessment of what’s involved is required, as well as enough tools to do the job in terms of engineers and surveyors and robust checking.

“Why should anyone be stuck in something un-mortgageable, particularly those blocks with very limited amounts of cladding? They have been tarred with the same brush as those blocks with extensive issues.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal | LandlordZONE.

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