Landlords face secret subletting surge

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A worrying trend among tenants who have been secretly subletting their landlords’ properties has been revealed.

The study from Direct Line business insurance delved into the practices of renters across the country and found that a staggering 48% of subletting tenants had failed to disclose this arrangement to their landlords.

View Full Article: Landlords face secret subletting surge

Property118 Ambassadors Guide

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Property118 currently works with hundreds of Ambassadors, many of which are Accountants and other professional advisers of our existing clients including; mortgage brokers, letting agents, estate agents, insurance brokers, IFA’s, conveyancing solicitors etc.

We have created this page to provide full transparency of these arrangements.

View Full Article: Property118 Ambassadors Guide

Official report backs binning leasehold but some owners ‘still worried’

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Ditching leaseholds is ‘entirely possible’ although some flat owners still aren’t convinced about moving across to commonhold, a government report has concluded.

It explains that while reaching a point at which most existing flats are owned without a third-party landlord or are commonhold is ‘not impossible’, the process of moving to different ownership or management structures was considered a significant barrier.

Many felt it would be too time-consuming or costly and were concerned about the potential for disagreements with neighbours.

A DLUHC study – Living in and looking after shared buildings: the perspective of leaseholders and prospective flat buyers – found that people were initially excited by the idea of taking more control but, once they considered it further, had some concerns about how it would work in practice and whether they or their neighbours had sufficient skills and spare time to carry out the function properly.

But it believes that providing more details about appointing external directors or using a management company could help reassure flat owners that they will not necessarily have to take on large amounts of additional responsibility.

Meanwhile, many thought commonhold would give them greater control, be democratic and transparent.

The Association of Leasehold Enfranchisement Practitioners believes the report clearly shows the intended direction of travel for leasehold reform.

No awareness

Director Mark Chick (pictured) says most participants had no awareness of the right to manage in leasehold, nor that commonhold is an alternative to leasehold.

He adds: “The report shows that although awareness of commonhold is low, when participants were provided with more information about commonhold ownership, they generally viewed it positively in theory.”

Earlier this year, Housing Secretary Michael Gove dropped plans to abolish leaseholds in England and Wales after Downing Street officials argued there was not enough time to enact such major reforms.

View Full Article: Official report backs binning leasehold but some owners ‘still worried’

Gove consults landlords on looser rules for commercial to residential conversions

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Landlords are being encouraged to share their thoughts on government plans to make it easier to convert larger department stores, space above shops and offices. 

As part of Housing Secretary Michael Gove’s announcement on regeneration, inner-city densification and housing delivery across England, the consultation on new and amended permitted development rights aims to “unleash building on underused sites in high-demand regions”.

The government’s report explains how residential uses can help diversify and create more resilient high streets.

“We are therefore exploring ways in which this right could be amended to reflect the changing landscape of our high streets and to deliver more homes,” he says.

“Changes will support the delivery of additional homes across England that might otherwise have not come forward through a planning application.”

Permitted development

The permitted development right currently allows up to 1,500 sqm of commercial, business and service use to change to residential, for example, to provide for up to 20 two-bed homes.

It proposes allowing more floorspace to change to residential use and wants views on whether the size cap should be doubled to 3,000 sqm or removed to provide no limits on the amount of floorspace that can change use.

Premises need to be vacant for a continuous period of at least three months immediately prior to the date of the application for approval under existing rights, as a way to safeguard against businesses being displaced.

But the government believes the requirement may be ineffective and could result in a property being left vacant for longer periods. It proposes removing this requirement to provide greater flexibility for owners, to enable more premises to change use, and deliver additional homes.

The consultation closes on 25^th September.

View Full Article: Gove consults landlords on looser rules for commercial to residential conversions

Landlords given five months to join enlarged £800 London licencing scheme

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More than 5,400 homes in Islington now need a licence under Islington Council’s new selective licensing scheme. 

Landlords in Finsbury Park, Tollington and Hillrise wards are affected, where properties are blighted with poor conditions, according to council enforcement officers who have been deluged with thousands of complaints about disrepair, damp and mould, inadequate facilities and safety issues. 

The scheme, approved by the council’s executive, triples the old Finsbury Park scheme it replaces and takes effect on 1^st January 2024. All existing selective licences will transfer to the new scheme so there will be no need for landlords who have already applied and paid for a licence to reapply.

The council estimates that 3,500 selective licences could be issued, with a fee of £800 and a £75 reduction for accredited landlords, generating an income of about £2.7 million over the next five years.

Riddled

Councillor Una O’Halloran (pictured), executive member for homes and communities, says: “While the vast majority of Islington’s landlords are responsible and let good quality homes, renters have told us that many others are riddled with safety and other issues, while their rent continues to soar.”

She adds: “This new licensing scheme will mean landlords must do more in hazard hotspots to protect tenants – or face action from our enforcement team.” 

Overall response rates to a council consultation were very low and there was a significant difference in opinion between landlords and tenants, with 15% of private landlords and managing agents in favour of licensing but 72% of tenants.

The scheme has taken years to be implemented; councillors were discussing options back in May 2020.

View Full Article: Landlords given five months to join enlarged £800 London licencing scheme

LANDLORDS – How to survive: A no-nonsense, straight talking and practical education day

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With the turmoil and the uncertainty in the market for landlords, I’ve teamed up with Property118 to put on an event for the 19th of October in Central London, with a host of experts in Tax, Company Structuring, Finance, Legal

View Full Article: LANDLORDS – How to survive: A no-nonsense, straight talking and practical education day

UK landlords prefer to sell up than spend on EPC upgrades

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The UK government’s EPC proposals to make rental properties more energy efficient may backfire, as a new survey suggests that most landlords would rather sell up than invest in green upgrades.

The survey by cleantech company GreenBuildingRenewables.co.uk, polled more than 1,000 landlords across the UK and found that 63% of them said they plan to sell properties rather than make energy-efficient improvements such as insulation

View Full Article: UK landlords prefer to sell up than spend on EPC upgrades

UK Property Market Summary and Predictions for 2023

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The UK property market has undoubtedly seen a tumultuous period since the end of 2022.

Fluctuating statistics, record-breaking demand, falling supply, and concerning economic projections have left many scratching their heads and wondering:

‘Is UK property investment in 2023 a good idea?’

The following guide presents a summary of the property market in 2022, as well as a look towards what the future may hold for the rest of the year and beyond.

What Happened to the UK Property Market in 2022?

January

• Property prices, on average, increased by almost 10% from 2021
• Property experts Savills reported that demand for housing was up 49% in mid-January compared to 2018-21.

February

• Despite a slight dip in property prices, the market remained strong, with the highest growth (12.5%) in the East and South West regions
• The rental market also saw growth due to continued demand for rental properties

March

• March saw the strongest monthly house price growth in 18 years at 1.1%
• Low housing supply contributed to skyrocketing prices
• The rental market grew by 10.4%, indicating ongoing demand

April

• Rental growth was widespread across the country, with the highest increase in rental prices since 2011
• Affordability became a concern as house price growth outpaced income growth

May

• A 16% increase in mortgages for first-time buyers compared to pre-pandemic levels
• Some areas experienced significant rental price rises, but overall growth started to slow down

June

• Annual price growth dropped by around 5% from May to June
• Property investment cooled down as the cost-of-living crisis began to make rising house prices unaffordable
• Housing supply still low, but demand decreased as people prioritized other expenses

July

• House price growth rose to one of the highest rates in 2022, most likely due to the lower prices from the stamp duty holiday in 2021
• Rental prices were growing almost six times higher than pre-pandemic levels, with the strongest markets being in the North West

August

• Rising living costs and reduced housing demand contributed to slower growth
• Popular areas like the North West, however, continued to see high rental demand, with the region seeing growth of around 10%

September

• The UK found itself in a complex political situation with the Government’s controversial Mini-Budget, and the death of Queen Elizabeth II
• Rental sector growth remained steady, but borrowing mortgages became more difficult with rising interest rates

October

• The majority of the mini-budget was reversed, following a massive detrimental economic effect
• As the cost-of-living crisis steadily continued, as well as the unstable economy, a cap on house prices was beginning to limit rates

November

• House prices fell by -0.9%, the biggest drop since June 2020
• Market activity decreased, with mortgage approvals returning to pre-pandemic levels
• The end of the Help-to-Buy scheme affected affordability and resulted in falling prices

December

• House prices fell for the fourth consecutive period, down -0.1% from November
• Average rent decreased slightly from November but remained higher than the previous year

Property Market Predictors

Following a lack of demand for expensive property and more buyers preferring affordability, many experts predict a continued drop in prices across many regions, with interest rates rising alongside.

If prices do slip in 2023, though, buyers should write off the property market as a viable option. Recent forecasts show that, despite significant drops in 2023, the market is expected to recover, with certain regions predicted to see price growth of 11.7% by 2027.

View Full Article: UK Property Market Summary and Predictions for 2023

Need a hoover in a hurry? High-tech kiosk lends renters essentials

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Renters in two of the capital’s build-to-rent apartment blocks can rent out household appliances, games and other essentials in a novel gadget-sharing initiative.

Developer Get Living has partnered with TULU to install its smart rental units which residents at Victory Plaza and Portlands Place in East Village, Stratford, can access via a mobile app. Available items include Bosch cordless vacuum cleaners and robot mops, game consoles, VR headsets, projectors and air mattresses. They can also buy snacks and food staples.

Inspected regularly

TULU believes it’s a good way of promoting responsible consumption and taps into the growing demand for the ‘usage economy’, in which people access products only for the time they are needed rather than owning them, supporting sustainable living. The products on offer are tailored to the needs of the residents and inspected regularly by TULU to make sure they are clean and in good condition.

Growing demand

Ailish Christian-West, chief operating officer at Get Living, says: “We regularly speak to our residents to understand how we can enhance their living experience with us and initiatives such as TULU are a direct response to those conversations. We know that there is growing demand for subscriptions and rentals rather than purchases, whether it’s music, films, or household items, allowing people to live more flexibly, consume less and reduce their outgoing expenditure.”

Get Living has 4,000 homes for rent in London and Manchester and plans to grow its portfolio to 12,500 homes within the next five years.

View Full Article: Need a hoover in a hurry? High-tech kiosk lends renters essentials

Government targets cities and relaxes planning in bid to solve housing crisis

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A new housing plan would allow shops, takeaways and betting shops to be turned into homes while homeowners would have greater freedoms to carry out property extensions and open up lofts.

Housing Secretary Michael Gove says under the proposals, the government’s main focus will be on housing developments in the UK’s major cities where demand is highest and growth is being constrained as it bids to unblock the planning system and build more homes in the right places where there is local consent. The plan also includes regenerating 20 towns and cities across England. 

New homes

He wants to unleash a wave of new homes in Birmingham, Manchester and Liverpool, using development corporations which councils would bid to set up. Those government-sponsored bodies would then use compulsory purchase orders to buy up land and sell chunks on to developers to build new homes. A new ‘planning super-squad’ called the Action Taskforce for Land Assembly Sites would review permitted development rights and support development in these big sites.

When asked about how it would prevent investors from buying up all the new housing, Gove said: “We need a healthy rental sector. We have taken steps to ensure that it’s more expensive to acquire a second property than a first property – but there’s more that we can do and more will follow.”

Negative impact

Shaun Davies, chair of the Local Government Association, believes premises such as offices, barns, and shops are not always suitable for housing. He adds: “Further expanding permitted development rights risks creating poor quality residential environments that negatively impact people’s health and wellbeing, as well as a lack of affordable housing or suitable infrastructure.”

The proposals come as Prime Minister Rishi Sunak announced it would meet its manifesto commitment to build one million homes over this Parliament. However, last year the cross-party Levelling Up Committee found that the government was not on target to deliver 300,000 new homes a year by the mid-2020s.

View Full Article: Government targets cities and relaxes planning in bid to solve housing crisis