BREAKING: All students to return to campus from 17th May onwards, government confirms

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The Department of Education has also made an extra £15 million available to students who are struggling to pay their rent due to the pandemic.

This will cover both international and postgraduate students along with their domestic undergraduate counterparts.

The announcement is ‘Step 3’ in the government’s relaxation of Covid restrictions roadmap in England, assuming the steps preceding it roll out without infections, hospitalisations and deaths rising again.

Arts and ‘practical’ students have already been allowed to return sinc early March with an estimated 49 per cent of students already eligible to return to in-person teaching, subject to decisions by their institutions, while the remainder have continued to attend online lectures and seminars.

Covid testing

But the remaining students who return will have to jump through several Covid hoops in order to return to campus.

Returning students will have to take three supervised Covid tests, each three to five days apart regardless of whether they have symptoms or not. And they will have to take Covid Lateral Flow Tests twice weekly all the way through the summer term.

All tests will be free, and all students and staff who test positive from an LFD test will need to self-isolate for ten days, unless they receive a negative polymerase chain reaction or PCR test within two days.

Find out more about Covid student accommodation tenancies.

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EXCLUSIVE: ‘This is how PRS needs to be reformed to work better’

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Private rented sector expert Paul Shamplina has set out some key ideas to reform the market for privately rented homes so that it works better for both landlords and tenants.

Shamplina, who is consulted by civil servants when new regulations are being framed, says the key areas that need reform include the broken Universal Credit rent payment system, evictions and the dual problems of rogue tenants and landlords.

He says the government needs to think long and hard before banning Section 21 notice evictions.

“If S21s are banned then it is going to make landlords much more exposed to the kind of serial rogue tenants who play the system, and this will dramatically change referencing,” he told popular industry podcast Property Jam.

“Landlords are going to scrutinise tenants much closely before they get the keys and I think the voluntary schemes that link people’s credit scores to their rental payment track record need to be put on a more official footing.”

Tenant rogue databases

Shamplina has already told ministry of housing officials that the UK needs a national rogue tenant database – as exists in Australia – and that a ‘three strikes’ system should be introduced for landlords to exclude the worst offenders.

He told the podcast presenters this would be more effective than the current national rogue landlords database, which so far has only a handful of people listed after three years in operation, and is only available to local councils, not the public.

Also, the Landlord Action founder says the government’s decision to allow tenants on Universal Credit to be paid their rent direct has caused significant problems for thousands of landlords because it is difficult, and sometimes impossible, to persuade the DWP to pay a landlord the rent directly when a tenant is struggling to manage their finances.

“I always say that there are more rogue tenants than there will ever be rogue landlords, but at the moment the regulatory and political campaigning doesn’t reflect this reality,” he says.

Listen to the Property Jam podcast for free.

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High profile East Anglian landlord fined over offences at infamous apartment block

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An much lauded landlord with his own Wikipedia page whose block of flats was in such a poor state that all the tenants had to be rehomed has been fined £6,100.

Nick Sutton, a director of Faiths Lane Apartments, which ran 60 Faiths Lane in Norwich, admitted six offences at Great Yarmouth Magistrates Court relating to breaches under the Housing Act.

It heard that following a complaint by a resident in December 2017, Norwich City Council inspectors visited the 40-flat block and found problems including fire hazards.

In January 2018, an engineer inspected the electrics and found hundreds of defects. Sutton was handed eight improvement notices, requiring him to fix defects by the end of June.

But, during another inspection in August 2018, inspectors found a smoke alarm hanging from a ceiling, large gaps between the rails in a stairway, putting children at high risk, a lack of smoke detectors, damp and mould on walls and defective fire doors in the basement boiler room.

Prohibition order

In October 2018, the council put a prohibition order on the building and ordered all tenants to leave, paying them compensation totalling £50,000.

In March 2020, the Royal Courts of Justice’s Upper Tribunal ordered Sutton and his company to jointly pay £174,000 for failing to fix the apartment block, a 70% reduction on the original £572,000 sought by the council.

Sutton told the court he had no previous convictions and that there were only issues with five of the 144 fire doors in the building.

Following his latest court appearance, District Judge Shanta Deonarine fined Sutton £6,100, as well as £4,000 costs and a victim surcharge of £610.

Long and difficult

A Norwich City Council spokesman told the Norwich Evening News that it was a long and difficult case. He adds: “We acted swiftly to protect the residents of St Faiths Lane after it become clear how serious and appalling the conditions were at these premises.

“Our private sector housing team has worked tirelessly to bring this case to a positive conclusion, and we’re delighted with the outcome.”

Sutton put the property on the market via a local estate agency for £5.5 million, and it has recently been refurbished and turned into upmarket short-term rental apartments (pictured).

PIC CREDIT: Booking.com

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SURVEY: Landlords worried by home working trend and what it means for PRS

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More than half of landlords have lost confidence in the buy-to-let market as uncertainty around home working, property prices post Covid-19, concern about future tax hikes and fear of rent arrears when the furlough scheme ends in September have kicked in.

Rentround’s survey of 20,000 landlords shows 20% are looking to leave while 33% are unsure about their future.

It says landlords worry that prices could dip due to the exodus away from London and the big cities, as well as companies embracing working from home policies.

Rentround found that letting agent fees – the biggest expense for landlords – is the most important factor when choosing an agent (28%), followed by the agent’s ability to quickly find tenants and fill void periods (27%) and to give a hands-off, headache-free landlord life (20%).

While 28% of landlords find agents on the high street, 27% use Google as their main source.

Tenant find-only services is what 39% of landlords want from an agent, while 30% report they’ll be looking for a guaranteed rent service next time, according to Rentround, which says this fits with a similar rise in guaranteed rent searches it has seen on the site since the first lockdown in March 2020.

Rentround founder Raj Dosanjh (pictured) believes it will be interesting to see how the number of landlords choosing letting agents with a high street presence changes as more agents adopt online or hybrid approaches.

He adds: “Guaranteed rent continues in popularity. The uncertainty brought about by eviction bans, the future ending of furlough and changes in tenant behaviour is pushing landlords for safer approaches where their rental income is concerned.”

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PM advertises prospective tenants with animals will be ‘considered’

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Dog loving Prime Minister, Boris Johnson, has advertised his Oxfordshire cottage for rent at £4,250 a month with the listing confirming prospective tenants with animals will be ‘considered’.

It remains to be seen how ‘considered’ a pet-owning tenant will be in his £1.2 million Grade II-listed 4-bed family cottage.

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Unsatisfactory EICR is an absolute shower?

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The electrician who recently did an EICR for my property found the installation “Unsatisfactory”, one of the reasons being that the shower circuit (6mm twin and earth) is overrated with a 40A overcurrent device.

In 2017 I had a new 18th edition consumer unit installed and that electrician provided a complete Domestic Electrical Installation Certificate valid for 5 years to the next inspection.

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EXCLUSIVE: The country is facing an adapted properties crisis – could you help?

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NRLA chief executive Ben Beadle on the association’s new guidance showing landlords the role they can play in supporting the UK’s ageing population and disabled renters

Could you provide a home for someone with a disability, or elderly tenant that needs a place offering that little extra help?

Properties suitable for tenants are in high demand but short supply, yet many landlords are unaware of the potential within their properties – or the funding available to adapt them.

Now, with the need set to increase as our population ages we are asking the government to work with private landlords to bridge the country’s accessibility gap – before it is too late.

Many landlords are unaware of the potential within their properties – or the funding available to adapt them and in our new adaptations guidance we set out how private landlords can consider requests for adaptations from their tenants.

The guidance was created with input from access and adaptation specialists from across the housing sector, and we hope it will improve awareness of the opportunities out there when it comes to providing adapted properties for a more diverse range of tenants.

Research

According to recent research conducted by the Social Market Foundation, the number of  PRS households headed by a person 65 years or older is set to double by 2046.

In addition to this, data from housing provide Abode Impact shows four in five disabled people live in housing that doesn’t meet their needs and 91% say they experience barriers to renting.

Many tenants who need them, say they can’t access adapted properties in the  PRS – that these homes simply don’t exist.

At the same time our research suggests that there has been a lack of engagement between local authorities and PRS when it comes to responding to these needs.

We believe the time has come to tackle the issue and work in partnership with local authorities before the situation reaches crisis point.

If we want to help expand the number of adapted homes for UK disabled and older renters then landlords need to be aware of the support that is out there.

Funding: Disabled Facilities Grant

Under the Disabled Facilities Grant (DFG) scheme landlords can claim up to £30,000 (in England) to adapt their property so that it meets the needs of a disabled tenant. The figure is £36,000 in Wales.

However recent research by the NRLA shows 79% of landlords had no knowledge that the scheme existed.

On the plus side once they were told about it 68% were more willing to make adaptations.

The NRLA is now asking local authorities – which are responsible for distributing the grants – to do more to raise awareness of the DFG scheme and support landlords willing to adapt their homes.

Of course we are realistic. We know that there are limitations.

There are some properties that can’t be converted and are not suitable for adaptations, due to their size, layout or structural integrity.

But there are some that, with grant funding, could offer a vital home for someone struggling to find a property that meets their needs.

The NRLA is working to bring about a successful, vibrant and above all inclusive private rented sector that works for all.

With this in mind please take some time to look and the guidance to see if adapting your property is an option for you.

More information

• To access the full guidance click here.
• As part of this month’s Listen Up Landlords podcast we spoke to Sallie Stone-Bearne, founder of specialist letting agency Branch Properties, which sources adapted and accessible properties and Josh Wintersgill a wheelchair user who has struggled to find a rented home to meet his needs. To listen to the new episode click here.

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Shergroup Joins Property118 as a Sponsor

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Intro – 

Shergroup Limited is delighted to join Property118 as a sponsor in relation to Sheriffs, Bailiffs, and all things enforcement.  The invitation to join the Property118 community comes at a time when Sheriffs, Bailiffs, High Court Enforcement Officers

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EVICTIONS: Activists mobilise across UK to lobby government on ban extension

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Housing activists hope to mobilise an army of volunteers around the country, ready to fight evictions after the ban ends on 31^st May.

Momentum kicked off its campaign with a day of action at the weekend when protestors picketed landlords and agents’ offices demanding they commit to not evicting tenants during the pandemic.

As part of Momentum’s Eviction Resistance campaign, action groups in Southend, London, Loughborough, Bradford and Shipley held socially distanced protests against what they labelled a “rigged housing system” and have vowed not to stop until their demands are met.

The protests came after Momentum activists wrote to major landlords in their areas, requesting they sign up to the pledge.

Housing companies such as Uncle Living and billionaire property-owner John Christodoulou “refused or failed to reply” according to activists.

September extension

Momentum’s new housing campaign is working to build a social movement to extend the eviction ban in England and Wales until September 2021, legislate to force landlords to forgive all rent arrears accumulated during the pandemic – with means tested financial support to compensate small landlords where necessary – and an end to Section 21 evictions.

Jennifer Forbes, a member of its national coordinating group, told Tribune: “We’ve got a couple of weeks before the ban lifts to build an army of organisers across the country.

It’s the tireless work of people on the ground which will make the difference between success and failure. By knocking on doors, by getting rooted in your community, by mobilising your friends and family, by running your local campaign, you can help turn the tide.” 

She added: “To stop evictions we need organisers spread across all parts of England and Wales, ready to mobilise when the ban is lifted.” 

Read more about the most recent evictions ban.

PIC Credit: Momentum via Twitter.

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BUDGET RECAP: The big changes you need to be aware of in 2021

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If you are self-employed landlord, run a company, employ others or simply earn additional income, you should be aware of the changes resulting from the latest budget.

These guidelines are based on English law and are not a definitive interpretation of the law, every case is different and only a court can decide, so always seek expert advice.

The real details of the budget measures only become available as the government publishes its Finance Bill, so some of that detail is spelled out here:

In the budget, Rishi Sunak set out his three-point plan for Britain’s economy post pandemic, which included (1) a major redrawing of the economic map following the government’s major borrowing spree, (2) freezes to the individuals’ personal allowance threshold and a higher tax take from the biggest corporations.

With the highest level of government borrowing since WW2 predicted to peak at 97.1 per cent of GDP in 2023/24, the government has set out a plan of action to reduce this over an extended period of time.

For example, in 2023 the rate of corporation tax, paid on company profits, will increase from its present rate of 19 per cent to 25 per cent.

“Even after this change we’ll still have the lowest corporation tax rate in the G7. We’ll also protect small businesses so only 10 per cent of companies will pay the full higher rate,” Mr Sunak said.

There are a number of tax changes that are now becoming clearer and these are things to be aware of in the future:

The main tax events coming in April/May 2021

01 April – Corporation tax payment for year to 30/6/20 (unless quarterly instalments apply)

06 April – 2020/21 tax year ended on 5th.  2021/22 tax year begins.

New “off-payroll” working rules start.

19 April – PAYE & NIC deductions, and CIS return and tax, for month to 5/04/21 (due 22/04 if you pay electronically)

01 May – Corporation tax payment for year to 31/7/20 (unless quarterly instalments apply)

19 May – PAYE & NIC deductions, and CIS return and tax, for month to 5/05/21 (due 22/05 if you pay electronically)

New personal service company rules to start in April

New “off-payroll” working rules that apply to certain workers supplying their services to clients via their own personal service companies start from 6 April 2021.

Under the new regime end-user businesses will be required to determine whether individuals are treated as an employee or not, if directly engaged. This is likely to be a significant additional administrative burden on the large and medium-sized businesses.

This is a complex area of the law based on several different court decisions. HMRC recommend end user organisations using the CEST (Check Employment Status for Tax) online tool to help with a determination, following which a Status Determination Statement can be issued setting out the reasoning behind the decision issued to any agency supplying the worker, if relevant.

The status determination notifies the agency that PAYE and NIC should be deducted from payments to a worker’s personal service company. That information will be passed down the labour supply chain if other entities are involved, and the ultimate fee payer is liable for making the tax and NIC deductions.

There’s no change for small employers

‘Small’ businesses, the definition of which is based on the existing Companies Act 2006 definition, will be outside of the scope of the new obligations and services supplied to such organisations will continue to be dealt with under the current IR35 rules, with the worker or personal service company effectively self-assessing. This applies to companies with an annual turnover of £10.2million or less, a balance Sheet total of £5.1 million or less, and less than 50 employees.

Employed or self-employed

A recent Supreme Court ruling that drivers for the ride hailing company, Uber are workers not self-employed individuals, and hence are entitled to holiday pay, pension rights and the right to be paid the national minimum wage, has major implications for many businesses.

Tax law doesn’t necessarily follow employment law, and the boundaries are becoming increasingly blurred, making it difficult to determine an individual’s employment status with absolute certainty, so if in doubt seek professional advice.

Super-tax-deduction for equipment

The Chancellor announced a new 130% tax relief for expenditure on new plant and machinery incurred between 1 April 2021 and 31 March 2023. This new tax relief is only available to limited companies and the Finance Bill reveals a nasty sting in the tail. When the equipment subject to the relief is eventually sold there’s a clawback, potentially at the same 130% rate.

If, for example, a new item of plant costs £100,000 the company would be able to deduct £130,000 in arriving at taxable profits, thus saving £24,700 in corporation tax at 19%. If, however, the plant was sold for £80,000 on 1 April 2023, 130% of the proceeds would likely be clawed back and £104,000 added to the company’s taxable profit, resulting in up to £26,000 corporation tax payable at the new 25% rate.

Fortunately, the claw-back rate will be reduced over time from 1 April 2023 onwards, so as to encourage long term asset retention.

The 130% rate does not apply to equipment such as air conditioning and central heating that normally qualify for a 6% writing down allowance. However, such “integral features” qualify for a special 50% first year allowance for the same two-year period.

Enhanced loss relief

In the March Budget it was announced that the normal one-year carry-back for trading losses will be extended to three years. This means that many businesses that have made losses during the pandemic may be able to reclaim a repayment of tax paid in that three-year period. This enhanced carry-back applies to unincorporated businesses as well as limited companies and the details are set out in the Finance Bill.

For corporation tax purposes the loss-making accounting period must end between 1 April 2020 and 31 March 2022 to qualify. For unincorporated businesses, the trading loss must be incurred in 2020/21 or 2021/22.

These new temporary carry back rules will permit losses to be set against trading profits made in the years ended 31 December 2018 and then 31 December 2017.

A Business Rates Review

Among the documents recently published is an interim report on the government’s Fundamental Review of Business Rates

This sets out a summary of responses to last year’s call for evidence and the final report is to be published in the Autumn.

Second Home Owners

The government is to legislate to tighten tax rules for second homeowners, meaning they can only register for business rates (and business rates relief) if their properties are genuine holiday lets.

This measure is intended to close a loophole that allowed some second homeowners to avoid paying council tax on their second property, and it has been revealed that some owners were even claiming coronavirus support grants for their second home “businesses”.

Tax Payment Processes

The Treasury has accepted a number of recommendations by the Office of Tax Simplification (OTS) on simplifying inheritance tax (IHT) reporting meaning that From 1 January 2022 over 90 per cent of non-taxpaying estates will no longer have to complete IHT forms for deaths when probate is required. The government is also considering introducing a new digital system for IHT and probate reporting.

HMRC is also said to be reconsidering the introduction of a “Pay-as-You-Go” system for the self-employed originally proposed 2016.

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