RLA opposes plans to renew Wirral selective licensing scheme

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Plans to renew and extend a selective licensing scheme in Wirral have been opposed by the RLA. Wirral Council has put forward plans to re-designate four existing selective licensing areas that are due to expire at the end of June 2020. These areas include Birkenhead South, Egerton North, Egremont Promenade South and Seacombe Library. In […]

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Rents grow as housing market slows

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HOMELET’s Rental Index figures for September 2019 have been released. The headlines from this month’s report are:

The average rent in the UK is now £967, up by 2.5% on the same time last year

When London is excluded

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Upad no longer accepting new business

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One of the Uk’s first online letting agents, Upad has confirmed it will no longer be accepting new business and it’s home page has now been redirected to >> https://www.upad.co.uk/closed.html

The founder of Upad, James Davis, told The Property Industry Eye at the weekend that he recently spent 5 months recovering from an emergency heart operation and had “lost his drive.”

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Agency backs down over tenant fees due

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Fees ban:

A Manchester based
letting and management agency backed down over its claim for letting
fees after intervention action from a tenants’ Manchester and
Liverpool based union.

The tenant fees ban
came into force in June this year, but agents are within their rights
to apply tenant fees for contracts signed before then – it is
purely at the desertion of an agency whether or not these fees are
waived.

However, following concerted pressure from Acorn, a tenant’s union, the agency involved, Ascend, of Washway Road, Sale, decided to waive its fees.

Following a mass protest from Acorn members outside the agency offices, which involved jambing the company’s telephone lines, a letter was handed to the manager reminding him that it was in his discretionary power to waive the outstanding fees.

A decision was made
at the agency head office very quickly and it was decided to waive
them.

Acorn said the
letter stated:

“Acorn is here
today because you are callously threatening your tenants with
homelessness.

“These fees are
paid to the agency, not the landlord.

“Ascend are simply
attempting to line their own pockets at the expense of tenants and
landlords.”

This was underlined
by a threat that Acorn would “be forced to take further action”
if the situation was not rectified.

El, an Acorn member
who claims he was facing an eviction threat from Ascend for
organising other tenants against the fee claim, told the Star
newspaper:

“Ascend have made
me and my housemates feel stressed throughout the situation.

“It’s affected
all aspects of our lives and we are so glad that Acorn were there to
back us.”

Acorn organiser Kat
Wright told the Star:

“We won in twelve
minutes.

“Our member was
being threatened with eviction for organising against fees, which we
think are unfair and immoral – and while they may be legal, we
refuse to pay them.

“Now the fees are
withdrawn, as is the Section 21 threat.

“This absolutely
wouldn’t have been possible if we hadn’t had a rowdy picket with
loads of members amping up the pressure.”

The newspaper did not print any response from Ascend.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Agency backs down over tenant fees due | LandlordZONE.

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Asbestos and rental property

admin    Uncategorized     agents

I have one rental property. Purpose built in 1960s, typical construction of it’s era. I would like to highlight for other landlords their risks and responsibilities regarding this awful material and am interested to receive any advice from others who have experience.

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Online agent Upad to close: what happens next?

admin    Uncategorized     agents

Online letting agent Upad is closing with immediate effect. The shock news was announced on the company’s website this weekend, in a statement reading: “We regret to inform you that Upad is no longer accepting new business. We would like to thank all our customers for their support over the last ten years.” No reason […]

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New Right to Rent guidance for landlords published

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New guidance has been published by the Home Office on carrying out right to rent checks on nationals of Australia, Canada, Japan, New Zealand, Singapore, South Korea and the USA who have entered the UK through eGates as visitors. The factsheet, which can be read online here, says that nationals from the countries above may […]

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Final reminder on Section 21 Consultation

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Have
Your Say:

This
is a final reminder to landlords and agents to have your say about
the abolition of Section 21 in the private rented sector (PRS). This
consultation seeks views on implementing the government’s decision
to remove Section 21 of the Housing Act 1988 and improving section 8
eviction grounds.

The consultation closes at 11:45pm tomorrow, Saturday the 12th October 2019

It’s
important that as many landlords and agents as possible makes their
views known before the consultation exercise closes, because most
people in the industry acknowledge that abolishing Section 21 without
putting credible alternatives in place first would be highly damaging
to the PRS.

The
National Landlords Association (NLA) ran a panel discussion at the
Conservative Party Conference earlier this month, titled: 21st
Century housing options: Landlords, the state or the streets?

The
panellists were Greg Beales, Director of Policy at Shelter; Cllr John
Fuller OBE, leader of South Norfolk Council; Dawn Foster, journalist
and commentator for The Guardian; and Chris Norris, Director of
Policy and Practice at the NLA.

Steve
Bloomfield, Deputy Editor of Prospect Magazine, chaired a lively
discussion in front of a packed room. While the model of regulation
for landlords was heavily debated, there was agreement that improving
the court process would be vital if the Government wants to avoid a
dramatic reduction in supply within the sector.

Highlights of the discussion are available on YouTube here: https://www.youtube.com/watch?v=vJQJskmrW4s

Chris
Norris of the NLA said:

“The
biggest challenge we face as an organisation is the bad reputation of
landlords. Central government has driven that acrimony, which has
been less than helpful.”

On the same day as the panel, the NLA launched its report based on research commissioned from Capital Economics on the impact of the Government’s proposal, A new deal for renting? The unintended consequences of abolishing Section 21

The
report, based on a survey of NLA members, found that if the
Government’s proposals go ahead, there could be a 20 percent
reduction in the number of dwellings available in the private rented
sector. Furthermore, the number of dwellings available to tenants in
receipt of benefits could fall by 59 percent.

See the Consultation link

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Final reminder on Section 21 Consultation | LandlordZONE.

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Home alone…

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DIY landlords are being burdened with ever-changing regulations and legislation. Is it time to consider full management?

Whether you are new to the industry or a successful landlord with a
growing property portfolio, the services of a reputable letting agent can be an
important source of help and support. With profit margins tight, many landlords
try to manage their own properties, but is it worth risking falling foul of the
law in order to save a few pounds? There may be many benefits to using a
letting agent that you have not yet considered…

Firstly, a reputable letting agent will have a comprehensive
overview of everything that is going on within your geographic area, and this
can be invaluable. The agent can also offer guidance to issues such as legal
compliance, setting up the tenancy and running all aspects of the tenancy for
you. A good agent really can save a landlord significant amounts of time, money
and stress!

Interestingly, it’s not just the landlord who can benefit from a good
letting agent. Tenants who secure a property via an agent will also benefit
from many levels of protection and support, knowing they are living in a
property that is safe and legally compliant. Letting agents should have access
to regular training in all areas of the business and are kept up to date with
legislation as soon as it is announced. Tenants can be reassured that any
action a landlord wanted to take would be moderated by the agent to ensure it
was fair and legal. In addition, if a tenant was in a predicament of any kind,
or a property required emergency maintenance, the agent should be able to help
to sort out the problems quickly and efficiently – sometimes without troubling
the landlord at all.

Under
management

Levels of service and management will differ from agent to agent, so
what specific day-to-day services can a landlord generally expect?

A letting agent’s work starts long before a tenancy even begins. A
good agent, can market the property to the widest possible audience, offer
advice on how to best to prepare that property for market, organise and execute
the viewings, source contractors to make sure the property has the correct
certification, carry out credit checks and references to mitigate any risk to
the landlord, draw up the Tenancy Agreement, take a thorough inventory of the
condition of the property, plus register the deposit lawfully on behalf of the
landlord.

The agent’s work will continue throughout the tenancy. The agent
will visit the property regularly to ensure that the tenant is living within
the terms of their Tenancy Agreement and no maintenance issues have arisen. When
the time comes for the tenant to vacate the property, checks will be made comparing
the condition of the property to the inventory that was carried out at the
beginning of the tenancy.

Troubleshooting

One much-underestimated benefit is that an agent can become a
communication firewall between the landlord and tenant should something go
wrong during the tenancy. Some landlords find difficult conversations
particularly uncomfortable and it can sometimes prove easier for an objective
third-party to take over. The agent can also advise landlords on their legal
rights and make sure any issues are dealt with fairly, swiftly and within the
law.

Importantly, if an agent is involved early enough, they can help to
ensure potential problems are avoided in the first place, which is always the
best solution to problem-management.

Portfolio
potential

If you’re looking to grow your property portfolio an agent can help
here too. Whether a landlord is looking for incremental growth or yield from a
property, an agent will be able to help them find their next investment.

Professional letting agents will know what is available on the market,
and many also offer a sales service, they will be aware of any good properties that
are due to be offered shortly. Importantly, the agent will have wide and
up-to-date knowledge of those local areas that are good for investment and represent
good value.

Prior to purchase an agent can give an indication of potential
rental income and possible outgoings so that landlords can create an accurate calculation
of profit and costs.

Arranging an annual or bi-annual meeting with your agent is a good
idea to ensure you are not missing out on any potential opportunities to grow
your portfolio and maximise your overall investment. You may also be offered
access to wealth management and tax advice, which is more important than ever
today.

Choosing an
agent

Every letting agent will offer their own specific set of services
and level of support, so make sure you do your research before committing. Working
with the right agent is vital. Never choose an agent purely on their fees. Find
out exactly what level of service you can expect for the fees asked, how your
money will be protected, and ensure all your needs will be covered.

A quick check of the agent’s online reviews plus research into any industry awards they may have won will give you a good overview of the services they offer. Finally, do make sure you arrange to meet your short-listed agents in person. The agent you choose will be entrusted with the keys to one of your biggest assets, so there needs to be personal rapport, trust and confidence between the two parties.

To find a Belvoir agent in your local area visit: www.belvoir.co.uk

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Home alone… | LandlordZONE.

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Is your property a ticking tax time bomb?

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If you earn income from residential properties, in the UK or abroad, you need to declare this income on your tax return. Not doing so can result in major penalties or fines. However, there is a way out: HMRC has started its Let Property Campaign again for the 7th year, since beginning in 2013. This allows UK landlords to come forward and voluntarily disclose unpaid tax on rental income that they have not paid. This disclosure should always be assisted by a qualified tax professional, as with this voluntary disclosure comes lenience when it comes to fines and penalties. Given that it’s possible to make significant savings on these penalties, it’s important to get your declaration right the first time around!
In the last year alone, nearly 400 overseas-based landlords confirmed to HMRC that the tax owed on their rental income was not declared or paid. This is a 61% increase on the approximately 250 declarations that came forward in the previous year. This is an indicator that the campaign is working, and that landlords who have currently not declared rental income should consider doing so.
HMRC have recently sent a number of letters to landlords whom they have information on but have not disclosed any information. These landlords are discovered by HMRC using a large database, combined with an artificial intelligence program called “Connect”. Activity can be cross-referenced from multiple sources including tax returns that have disclosed the ownership of property, the client lists of estate agents, and land registry and ownership data. Connect can also use information from social media profiles as well as spending patterns that indicate tax evasion. If the landlord does not respond within 30 days of receiving the letter from HMRC, they may be liable to face penalties based on what they owe. In addition, they could be subject to criminal investigation for non-compliance with tax declaration laws.
The let property campaign applies to landlords who have residential properties either in the UK or abroad. This includes landlords who have multiple properties, single rentals, holiday lettings, student accommodation, or rent out a room in their own home for more than the Rent a Room Scheme threshold. It does not apply to landlords who are letting out non-residential properties such as shops, garages, and lock ups. It does also not apply if you are renting out property on behalf of a company or a trust.
The process of declaring rental property income under the Let Property Campaign has several steps. Firstly, you need to appoint a tax advisor to notify HMRC know that you want to participate in the Let Property Campaign. Then disclose any income, gains, tax, or duties that you owe that you have not previously disclosed. Make sure that you engage a tax professional to calculate how much you owe, as well as determining how big your offer of fines and penalties should be. Ensuring that you get this process right will save you a lot of effort (and potentially money) further down the track. Once you have worked through your disclosure and offer with a tax professional, formally offer the disclosure and payment to HMRC, then pay what you owe. You can also voluntarily declare at any time outside of the Let Property Campaign, but you may
be hit with heavy sanctions if HMRC has contacted you as part of the campaign and you do not respond.
When you make your disclosure, you and your tax advisor can work out how much you should offer with regard to penalties you think you should pay. To determine exactly how much you will owe, HMRC will take into account the level to which you have helped them, and how significant your previous evasion has been, as well as the reasons behind why you did not declare income before. For example, a simple oversight or mistake will be treated much more favourably than purposeful lack of declaration. In some cases you may not have to pay any penalty at all. If you do have to pay penalties it will almost certainly be less than what you would have to pay if HMRC finds out that you are avoiding tax: under the Let Property Campaign the rates are rates are 0%, 10%, 20% depending on the circumstances, while without disclosure under the campaign the penalties can be up to 100% of your total tax liability. If you made a careless mistake, HMRC will look back up to a period of 6 years in determining what you owe. If you do not come forward and HMRC finds out you did not pay enough tax, they can look back up to 20 years.
Once you determine what you owe, you should pay within 90 days of declaring and offering your payment. If you cannot pay the full amount, let HMRC know as soon as possible, and do not make any payments until you have discussed your financial position with HMRC. They will take into account how and when you intend to pay, what your current income is, assets you have, and any debts that you have. They can then come to an agreement with you for, for instance, a payment plan.
The great news is that for certain individuals whom rental profits fall below or within their UK personal allowance entitlement, then you can register for the campaign complete all the work and get no penalties and no tax to pay. It is a way of completely bringing your tax affairs up to date in one exercise.
Taking advantage of the Let Property Campaign is a good way to get in line with your tax liabilities, while removing the full hit of potential penalties and fines. If you have undisclosed rental income, or have received a letter from HMRC, be sure to get your affairs in order as soon as possible, or risk facing even higher fines.
Finally I have recently seen letters from HMRC addressed to tenants of certain rental properties asking them to hold back rent due to the landlord as they have failed to get in touch with HMRC regarding their tax affairs because they are overseas. This is very serious and is a sign of HMRC and UK’s intent to claw back unpaid taxes. Taking from the Telegraph an HMRC spokesmen said: An HMRC spokesman said: “These letters form part of targeted compliance activity to ensure that offshore owners of UK property are aware of and comply with their UK tax obligations.
“HMRC is contacting both the overseas owner and any occupant of the property to provide information and help put right any innocent errors made. We understand that some areas of tax
can be complex and we want to help customers pay the right tax at the right time, ensuring the continued funding of vital public services in the UK.
It is vital all landlords comply as it is only a matter of time before HMRC get in touch for failure to comply
At Fusion Consulting we have successfully helped over 500 individuals complete the let property campaign and bring their tax affairs up to date. If you would like a free consultation please register by clicking the following link – https://lz.eshots.online/

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Is your property a ticking tax time bomb? | LandlordZONE.

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