Guest blog: How Crisis is working WITH private landlords on ground-breaking pilot scheme

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When the coronavirus outbreak began early this year, homelessness organisations along with local councils and Scottish Government moved quickly to protect people experiencing homelessness, especially people who were sleeping rough, from the pandemic, providing them with somewhere safe to stay and self-isolate.

This undoubtedly saved lives.

Once in the hotels, organisations like Crisis have been working to provide support to people to move on into more permanent, stable accommodation.

Along with Streetwork and Cyrenians, we set up a new pilot scheme which focused on helping people move on from homelessness and into a privately rented home.

In April, the UK Government increased the rate of housing benefit so that it now covers the lowest third of rents across the rental market.

This meant that hundreds of properties were now affordable for people who relied on benefits in Edinburgh, offering a route out of homelessness.

The pilot, which is funded by Scottish Government, began in April, with the partners working to build the pathway from hotels to safe and settled homes for people with a range of support needs.

Crisis was able to build on the success of its Help to Rent scheme, which already works closely with landlords and people experiencing homelessness across Edinburgh to help find a settled home in the private rented sector.

We liaise closely with landlords and agencies, Cyrenians co-ordinates the service, and Streetwork ensures tenants have a full package of person-centred support.

Assessment process

This support is trauma informed and begins while the person is experiencing homelessness, assisting them through the assessment process which includes finding the right home for them.

Person centred, the support ranges from helping people to move in, set up and maintain a home, to supporting them to pursue their own goals in life.

Emotional support is a key aspect of the help provided to assist people to successfully leave homelessness behind for good.

We’re supporting people to leave homelessness behind for good because of the scheme.

We’ve built up stronger relationships with landlords and letting agencies and built our understanding of the support needs that people experiencing homelessness may have so that we can continue to successfully support people to find and maintain a tenancy in the private rented sector.

We know that ending homelessness is possible. Through access to the private rented sector and support to maintain a tenancy, we know that people are provided with a base to rebuild their lives and leave homelessness behind for good.

If you’re a letting agent or landlord and would like to discuss a potential property – or simply find out more on about Help to Rent or the PRS Pilot – please contact Crisis’ PRS Service Manager, Eluned McHardy on 0131 209 7700 or eluned.mchardy@crisis.org.uk

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Guest blog: How Crisis is working WITH private landlords on ground-breaking pilot scheme | LandlordZONE.

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Section 21 review hearing date and tenancy missing?

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Hello. After serving a section 21 I have just received a hearing date for a review.

The court papers advise me to do the following: Provide to the courts a bundle of all documents filed in the case to date and to provide a paper copy of that bundle to the defendant.

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‘Don’t believe ‘get rich quick’ claims about property investment, says leading landlord

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Property investment newbies have been warned that TV shows that claim making money from property is ‘easy’ should be taken with a pinch of salt.

Luton landlord Jonathan Schuman told some of the 36,000 people who subscribe to the All About Property Facebook group last night that there is no substitute for detailed local knowledge, research and good contacts with estate agents.

“Only if you do that will you eventually find the kind of deals where you can make money,” he says.

“So to speak, you’re after £1 properties that you can buy for £50p and then sell on for 75p, but that’s all about sourcing and persuading agents to come to you first with properties.

“It’s why I always say property investment is all about people and not property.

“You need to spend at least two or three weeks researching a market before you enter it – otherwise how do you know whether a property is an opportunity or not?

Deal costs

“Novice investors also need to understand that there are costs involved that aren’t talked about much on TV shows including the deposit, stamp duty, agency fees, legal fees and interest costs.”

Schuman, who revealed he is recovering from a mild bout of Covid after contracting the virus several weeks ago, was interviewed by Paul Shamplina.

The two discussed the current market and the effect of the pandemic on property investment.

Schuman surprised many of those viewing by saying neither stamp duty, unemployment or economic downturns were a determining factor in an active property investment market, but rather interest rates.

“If there is a serious recession in the coming months then it will be my fourth, but I can say with confidence that although things may look bleak and the least likely time to invest, given our low interest rates it will still be an ideal time to jump in.”

Read our interview with Jonathan Schuman.
Listen to a podcast on investing in property during the pandemic.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Don’t believe ‘get rich quick’ claims about property investment, says leading landlord | LandlordZONE.

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Landlords battle council over ‘pricey’ new HMO licensing scheme

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Welsh HMO landlords could find themselves required to pay an additional licence fee as well as the Rent Smart Wales registration fee after Swansea councillors approved a pricey new additional licensing scheme.

The National Residential Landlords Association (NRLA) says the high fee – between £714 and £1,020 – is like schemes in London where the operating costs would be expected to be higher.

Despite this, The City and County of Swansea is pushing ahead with the scheme for HMOs in the St Thomas electoral ward from February 2021 and is also renewing the scheme in the Castle and Uplands wards.

It reports that 41% of HMOs in the Castle ward were subject to complaints relating to poor waste management, while 38% were related to noise complaints.

Social issues

But the NRLA argues that this is typical of a general inner-city area and is the result of social issues and not the lack of bureaucracy around landlords.

It claims that with only 12 HMOs in the St Thomas ward, there’s insufficient need for a scheme there.

The council says additional licensing will be used as a tool to improve standards by working with landlords, while licence fees will go towards funding more HMO officers, although it acknowledges that recruitment will be challenging during the pandemic. 

NRLA Welsh policy officer Tim Thomas (pictured) says: “Given the difficulties the council are likely to face in recruiting officers to improve HMO properties in the area, the NRLA Wales have written to the deputy leader asking him to consider delaying the scheme until a time when recruitment will be less restricted.”

Read more: Are HMOs the way forward within the PRS?

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords battle council over ‘pricey’ new HMO licensing scheme | LandlordZONE.

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Property prices in areas of military significance

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Research by Benham and Reeves, has revealed that postcodes home to a part of our military history are also home to higher property prices when compared to the wider area. House price data in postcodes home to 10 military locations indicated that on average prices hit £618,225 which is 155% higher than the current average in Great Britain.

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Can the loft conversion still be used as a bedroom?

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We are about to buy a 3-bedroom house plus a loft conversion completed over 16 years ago with no regulations. The owners did not do the loft conversion, and we think they are struggling to find any signed off building regulation documents.

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‘We’ll show you how to do it properly’ council tells landlords as it eyes private rental market

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Shropshire Council is the latest local authority looking to launch directly into the private rental sector, saying it aims to ‘set an example to local landlords’.

Cornovii Developments Limited (CDL) aims to build and sell about 2,000 homes to address housing needs while generating income for the local authority.

Work starts on its first development – Frith Close (pictured) in Crowmoor – next month, where homes will sell from £180,000.

CDL is now looking to hire a property consultancy to advise it on market opportunities for the private rented sector and will soon draw up an 18-month marketing plan, including a social media launch strategy.

Jane Trethewey (pictured), Shropshire Council’s assistant director of homes and communities, tells LandlordZONE: “We think it could play a key role in maintaining high standards in the county’s rental offer, and ensure there is a range of good quality and well managed property types for those who want to rent by preference.

“The intention is to support typically younger, economically active households who want to maintain their mobility in the jobs market in Shropshire, as well as those for whom renting is a more affordable option than purchasing a home directly.”

She adds: “It’s quite an exciting opportunity for us to be able to set a challenge to other private sector landlords out there as to how to do this extremely well.”

Not convinced

But Gavin Dick (pictured), the National Residential Landlord Association’s local authority policy officer, is not convinced.

He tells LandlordZONE: “It’s a case of thinking they know best and saying they’ll bring up standards, but they will just chase the money rather than house those who are struggling.

“The result will be that they’ll show just how efficient private landlords are at giving value for money and the council will have to up its game to compete with them. If they think it’s easy, they’re in for a surprise.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘We’ll show you how to do it properly’ council tells landlords as it eyes private rental market | LandlordZONE.

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Making Tax Digital: What landlords need to know

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Those of you who keep up with all the latest tax rules will be well aware of the upcoming Making Tax Digital (MTD) regulatory changes from HMRC and will be making preparations for this biggest ever tax change.

For the 99% of landlords who prefer not to think about tax at all, this news might be worrying. You might be wondering what the new regulations are all about and how they’ll affect you.

Worry not ‒ APARI’s team of tax nerds love simplifying tax rules into language understood by real human beings. You also have a bit of time to prepare and get used to using new tax software, but more on that later.

Here’s what you need to know…

What is Making Tax Digital?

Making Tax Digital (or MTD, for short) are a set of new regulations from HMRC designed to transition the UK to a more efficient and accurate digital tax system. Some businesses paying VAT have already transitioned to MTD and will apply to every VAT-eligible company from April 2022.

MTD for Income Tax was announced by the Government in July 2020 and will affect landlords, self-employed and tradespeople.

How to comply with Making Tax Digital for Income Tax

To meet the requirements for the MTD regulations, landlords will need to keep digital records of property-related income and expenses, submitting a summary directly to HMRC via registered tax software once every quarter.

Additionally, you will also need to submit an end of year report, finalising all accounts and other income to form your self-assessment. The right tax software will compile these reports for you, based on your digital accounts, and submit them directly to HMRC.

The result is very similar to now ‒ MTD won’t change what you need to pay or when you need to pay it. 

Key Changes: a) use MTD software; b) keep digital records and c) submit account summaries once a quarter to HMRC.

Who does MTD for Income Tax apply to?

Making Tax Digital for Income Tax is for UK landlords who usually submit a Self Assessment tax return. It is a requirement for anyone with more than £10,000 of combined turnover from business and property income. 

When does Making Tax Digital for Income Tax come into effect?

Making Tax Digital for Income Tax comes into effect from the 6th April 2023. 

It’s possible to voluntarily register for MTD for Income Tax before then, which will allow you to get ahead of the game and familiarise yourself with the MTD process. Don’t worry, you can still revert back to a standard tax return if you want.

Using tax software now could also save you money on accounting fees and provide you with a summary of your profit and loss as well as real-time estimates of your tax liability.

Get started with a FREE APARI account today. 

Understanding the MTD process

While the process for MTD is roughly the same for everyone, every piece of MTD software will work a bit differently. To give you an idea of what to expect, here’s how APARI MTD software works:

Step 1: Keep digital records

You will need to record relevant transactions, both income and expenses, in your MTD software. Some software, like APARI, allows you to upload bank statements or your existing spreadsheet to help automate and speed up the process. You can then tag the relevant transactions and assign them to your properties.

Step 2: Sign up for MTD

Complete the sign-up process on the HMRC website and enter your Government Gateway ID into your tax software. This allows you to submit data to HMRC securely via your software. 

Step 3: Receive reminders about key dates

APARI will remind you about key dates, such as your quarterly and annual tax submissions, as well as insurance and tenancy renewals.

Step 4: Submit your tax information to HMRC directly from APARI

Your tax software should automatically prepare your quarterly summaries from your digital records, ready to review and submit directly to HMRC. You’ll get an immediate confirmation from HMRC.

Then, at year-end, you finalise your property income, add in any other tax information and complete a legal declaration that all information has been submitted. Finally, you need to pay your tax bill by the deadline (APARI will remind you). You should have an accurate estimate of your tax liability in advance, so there shouldn’t be any nasty surprises.

And that’s it! I know it probably sounds complicated just now, but with the right tax software it should make accounting easier, faster, cheaper and more accurate.

What do you think about MTD? Tell us via this short survey.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Making Tax Digital: What landlords need to know | LandlordZONE.

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Landlord to fight £18,000 fine for under-sized rooms in HMO

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A London landlord has said he intends to appeal a court decision to fine him and his company a combined £18,400 for failing to provide adequate living conditions for tenants at an HMO property following a long-running battle with the local authority.

Hersch Sternlicht, a director of North London firm Palmview Estates Ltd, is to appeal fines and costs handed down by Chelmsford magistrates last week.

These include a fine of £7,000 for his company plus a victim surcharge of £190 and costs of £3,551. Sternlicht was also fined £4,000, plus a victim surcharge of £190 and costs of £3,551.

The fines followed an investigation by Thurrock Council in Essex back in 2017 at an address in the town operated by Sternlicht on London Road (pictured).

It found that four of the rooms were under-size but during an earlier hearing it was claimed that the council’s room measurements were inaccurate. At the same earlier hearing Palmview estates and both Sterlicht and another family member were cleared of failing to apply for an HMO, and the council accepted that their tenants had been ‘difficult’.

Nevertheless, prohibitions orders were made on the four rooms but, when inspectors returned in 2019, it was found that two of the rooms had been let to new tenants.

Sternlicht was also issued a Civil Penalty Notice for the same property for breaches found under the HMO management regulations including inadequate fire safety measures, a water leak and a defective boiler.

Barry Johnson (pictured), cabinet member for housing, said: “Landlords and letting agents must ensure any properties they rent out are up to code and are licensed, where appropriate. Failure to do so is an offence which can result in prosecution or a fine of up to £30,000.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord to fight £18,000 fine for under-sized rooms in HMO | LandlordZONE.

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Landlord case study required for The Telegraph

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Dear Property118 readers, I received the follow request for assistance today from a Daily Telegraph journalist.

I’m writing an article today looking at the mounting problems landlords face in the time of coronavirus – ie, rent losses, the six month eviction notice period

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