HMO Covid-19 rent reduction conundrum?

admin    Uncategorized     agents

Hey 118ers, I have a contract with a letting agent for my HMO which has a guaranteed rent of x amount pcm. Recently, they have been asking me to reduce the rent due to the Covid-19 situation and in their words ‘the huge amount of people leaving London’.

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Do I have a right to know who lives in my house?

admin    Uncategorized     agents

I recently rented out my property and instructed a letting agent to fully manage it. As we are a family of tradesmen, I like to do any of the maintenance/gas safety checks/electrical certificates myself using my family.

Today the letting agent contacted me to say that the gas check was due.

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Alarming Mortgage Transfer Letter?

admin    Uncategorized     agents

I have just received a letter from Amber Home Loans saying that in the transfer of my BTL mortgage to Skipton Building Society I have to accept a change of terms in which the SVR will switch to Skipton’s BTL SVR –

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Tired of being a real-life landlord? Try this bizarre new online game instead

admin    Uncategorized     agents

Landlords needing some downtime after dealing with non-paying tenants and urgent repairs can enjoy a new video game about… non-paying tenants and urgent repairs.

Life simulation game – The Tenants – has just been beta launched, offering players the chance to become a landlord with problematic tenants as they build a rental property empire.

In what might be a little too close to home for some buy-to-let investors, players get to decide how to react to irate neighbours or police visits.  

Developer, Ancient Forge Studio, warns: “You never know what’s gonna happen: annoyed neighbours, problematic tenants, police involved. Gotta stay alert!”

Maximum profit!

It advises: “Invest wisely to achieve maximum profit. Keep an eye out for the best bargain and strike when you see an opportunity. Stay calm, focused and ready to make your business rise all the way to the top!”

Gamers get to decorate and furnish houses before Sims-style would-be renters come in to look around.

They can then screen their tenants and negotiate to get the best deal. During the game, tenants send their landlord messages when they need help or repairs.

Youtuber Call Me Kevin has posted a video of himself playing it, labelled ‘I became a landlord and ruined a neighbourhood!’ on his channel, which has received 28,000 likes.

While he played – as the landlord character ‘Cheapskate’ – his tenant got dozens of rats in the house and also sent him a message saying she had forgotten to pay her first months’ rent.  Real-life landlords might take comfort in the fact that she chose to pay after Call Me Kevin sent her a polite reminder.

Play the game for free.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tired of being a real-life landlord? Try this bizarre new online game instead | LandlordZONE.

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Tired of being a real-life landlord? Try this bizarre online game instead

admin    Uncategorized     agents

Landlords needing some downtime after dealing with non-paying tenants and urgent repairs can enjoy a new video game about… non-paying tenants and urgent repairs.

Life simulation game – The Tenants – has just been beta launched, offering players the chance to become a landlord with problematic tenants as they build a rental property empire.

In what might be a little too close to home for some buy-to-let investors, players get to decide how to react to irate neighbours or police visits.  

Developer, Ancient Forge Studio, warns: “You never know what’s gonna happen: annoyed neighbours, problematic tenants, police involved. Gotta stay alert!”

Maximum profit!

It advises: “Invest wisely to achieve maximum profit. Keep an eye out for the best bargain and strike when you see an opportunity. Stay calm, focused and ready to make your business rise all the way to the top!”

Gamers get to decorate and furnish houses before Sims-style would-be renters come in to look around.

They can then screen their tenants and negotiate to get the best deal. During the game, tenants send their landlord messages when they need help or repairs.

Youtuber Call Me Kevin has posted a video of himself playing it, labelled ‘I became a landlord and ruined a neighbourhood!’ on his channel, which has received 28,000 likes.

While he played – as the landlord character ‘Cheapskate’ – his tenant got dozens of rats in the house and also sent him a message saying she had forgotten to pay her first months’ rent.  Real-life landlords might take comfort in the fact that she chose to pay after Call Me Kevin sent her a polite reminder.

Play the game for free.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tired of being a real-life landlord? Try this bizarre online game instead | LandlordZONE.

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Tourist areas seeing ‘investor bidding wars’ for staycation properties

admin    Uncategorized     agents

Demand for buy-to-let and holiday let or staycation properties has risen to unprecedented levels as investors pile in.

One Lake District estate agent, Nick Elgey, of Hackney and Leigh says that they are seeing “competitive bidding wars” which are bringing soaring house prices particularly around areas like Keswick in the North Lakes.

“I have specialised in estate agency throughout Cumbria for more than 30 years but I have never seen such intense levels of activity,” he has said.

Mr Elgey puts the sudden rush in demand and the resulting increase in house prices down the uncertainty caused by the COVID-19 pandemic.

Houses that are suitable for letting it seems are “flying of the shelves” with sales being agreed very quickly when they come on to the market. 

The unfortunate result is that locals are being priced out of the housing market at a faster rate than ever. Lake district property prices have been increasing at a faster rate than the average UK price for years, but this is now an unprecedented boom.

“Once we advertise a desirable Lake District house, we normally receive enquiries from all over the UK”, says Mr Elgey.

Safe haven

The Lake District is seen as a safe haven for property investment especially in times when travel abroad is restricted and likely to be so for some time – the staycation boom is increasing demand for all holiday let properties, but when they located are in an area of outstanding natural beauty, and a national park, to boot, the attraction is even greater.

In addition to the attraction of having the property for occasional personal use as a regular holiday destination for the family, the trend to more home working and increased commuter distances, some are considering these properties as a main residence

Holiday lets

“They are seeking Lake District houses for recreational use as a second home or to earn rental income from holiday letting, especially following the staycation boom due to the pandemic and the record low bank base rate which is stagnating cash investments,” Mr Earley told local media.

Demand has always been high in the South Lakes, which are seen as ‘honeypot’ locations for holidays, but this is a new trend now evident in the North Lakes, with places like Keswick, Threlkeld, Braithwaite, and Pooley Bridge, near Penrith coming under the investors’ spotlight.

Victorian properties in Keswick are now selling for over £400,000 whereas only 18 months ago they would have gone for around £300,000. Rightmove’s statistics show that sales within a five-mile radius of Keswick rose by 25 per cent in 2020 over those recorded in 2018.

Read more stories about holiday lets.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tourist areas seeing ‘investor bidding wars’ for staycation properties | LandlordZONE.

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LATEST: Landlords to share in new £562m green fund to upgrade properties

admin    Uncategorized     agents

Landlords are set to benefit from a new fund that plans to upgrade 50,000 homes with green improvements.

The government has kicked off its £562 million funding programme to provide the UK’s least energy efficient and fuel-poor homes with cavity wall and loft insulation, heat pumps and solar panels in a bid to help them save up to £450 a year on their energy bills.

It’s part of an ambition to eradicate fuel poverty, manage energy bills and reduce carbon emissions from domestic buildings.

More than 200 local authorities across England and Scotland are sharing the cash.

Councils that have applied for and won funding so far include Aberdeen, which has £2.2 million to retrofit 100 homes, creating a decarbonised neighbourhood, with tougher wall insulation, new air-source heat pumps and solar panels, and Leeds, which has almost £10 million to retrofit up to 600 homes across the city-region.

The £500 million Local Authority Delivery Fund, part of the Green Homes Grant, makes up most of the funding and aims to help households with an income of under £30,000.

It will work with local authorities to ensure the money is targeted at those who need it most, including those living in private rented accommodation.

Referral routes

The Department for Business, Energy and Industrial Strategy tells LandlordZONE that councils will be able to identify deserving households through a variety of referral routes including the health and charity sectors or by criteria such as receipt of means tested benefits and council tax exemptions.

A spokeswoman says: “Interested landlords should contact their local authority to see if they are taking part in the Local Authority Delivery scheme.”

UK Business and Energy Secretary, Kwasi Kwarteng (pictured), adds: “This is yet another important step we are taking to eliminate our contribution to climate change and build back greener from the pandemic.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Landlords to share in new £562m green fund to upgrade properties | LandlordZONE.

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HM Treasury ‘Tax Consultation Day’ – Nothing on CGT or Stamp

admin    Uncategorized     agents

HM Treasury has published more than 30 tax updates, consultations and documents to, as they declare, ‘strengthen policymaking and modernise the UK tax system’. Click here to read the Command Paper

Of potential note for Landlords:

In England

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Phew! HMRC omits CGT from tax reforms but there’s a sting in the tail for holiday lets

admin    Uncategorized     agents

Today’s much feared HMRC tax updates have turned out to be good news for landlords, with none of the expected Capital Gains Tax (CGT) increases announced.

Instead, the changes are largely technical and will trouble landlords’ accountants more than their bank accounts.

But one update within the huge document published does concern second home owners and landlords with holiday lets in their portfolios.

Ministers want to clarify the tax position for second homes which, if they are for personal use attract council tax, but if ‘made available’ to rent on Airbnb or Cottages.com for example, pay business rates. These are usually lower because business rates are discounted for properties with a rateable value under £12,000, which most holiday lets are.

The owners of second homes that are not genuine businesses can reduce their tax liability by declaring that a property is ‘available for let’, but making little or no effort to actually let it out.

“It has been suggested, for example, that a property-owner may restrict the periods during which bookings can be accepted, ask for unrealistic rents or fail actively to market the property at all,” claims HMRC.

It says it is now going to legislate on the matter following a previous consultation.

Business rates

Soon, owners of second homes or holiday lets will have to rent their properties out for at least 70 days a year in order to pay the cheaper business rates tax, rather than just making the property ‘available to rent’. This would then mirror the current position in Wales, and Scotland too following its recent proposals which are of a similar nature.

“This will ensure that owners of properties cannot reduce their tax liability by declaring that a property is available for let while making little or no effort to do so,” says HMRC.

“Further details of the change and implementation will be included in the Ministry for Housing, Communities and Local Government’s (MHCLG) response to the consultation on the business rates treatment of self-catering accommodation which will be published shortly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Phew! HMRC omits CGT from tax reforms but there’s a sting in the tail for holiday lets | LandlordZONE.

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Inner London asking rents in meltdown, warn leading indices

admin    Uncategorized     agents

London has seen a dramatic fall in rents since the first UK national lockdown, with more people now searching for homes in Cornwall than the capital.

Knight Frank research reveals that as London has lost its lustre, rents collapsed during the past 12 months, hit by over-supply from short-let apartments re-joining the traditional lettings market, along with a lack of international students and corporate tenants.

Rental values in prime central London fell by 14% in the year to February, the steepest fall since September 2009, says the agent, while Hamptons Monthly Lettings Index for February found average rents in inner London fell 17.7% year-on-year, the largest drop recorded since the onset of the pandemic.

Grappling

City landlords are grappling with large-scale rent falls, agrees Zoopla, with areas such as the City and east London worst hit – even rents in the formerly trendy and popular Shoreditch are down by 30% year-on-year.

Tom Bill (pictured, below), head of UK residential research at Knight Frank, says: “It will take a year or more for some balance to be restored and rental values to recover to where they were before the pandemic.”

Rightmove reports that many renters are trading up for space which means the enduring appeal of London has waned as priorities changed.

Director of property data, Tim Bannister, explains: “The huge population of London means that traditionally it’s the most searched for location on Rightmove, but the appeal of the coast and the countryside over the past year has seen Cornwall crowned the new capital this year.”

However, lower London rents are now attracting greater numbers of renters from outside the capital who are opting for city-centre living post-pandemic says Knight Frank; tenants moving to prime central London came from an average of three miles away in the second half of 2020, up from 1.5 miles in the second half of 2019. 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Inner London asking rents in meltdown, warn leading indices | LandlordZONE.

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