Tenants increasingly getting first refusal to buy their home

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Mortgage brokers are reporting ‘an enormous uptick in enquires’ from tenants who are being given first refusal to buy their rented home.

The brokers point to increasing numbers of amateur landlords who are now exiting the private rental sector with rising interest rates squeezing margins –

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In need of a lift

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We purchased a flat just over a year ago, we did so as the flat was in a nice area, near to our family and importantly due to our advancing years and my wife’s disability, she is in need of a hip replacement.

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DIY conveyancing for transferring own house to ltd company

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Hi, I finally decided to transfer my personally owned & lived in property to a ltd company for renting out.

I have always lived in this property and will be moving out soon.

I understand that transferring to ltd company and rent later will save me from CGT for past dates.

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Fire break wall- Capital Expenditure or Revenue Expenditure?

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Hi all.

Hopefully, somebody on this superb property resource can help me with a tax query.

At the request of my landlord buildings insurance, I have recently had a fire break wall installed in the loft space

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EXCLUSIVE: Big landlord to sell ‘low-yield’ properties as interest rates rise

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Higher interest rates have forced one of the UK’s leading guaranteed property cash buying firms to rethink its investment strategy.

The Open Property Group plans to start offloading properties, says MD Jason Harris Cohen (main pic). He tells LandlordZONE: “We aim for a 7% yield but with borrowing costs of 6%, the only way to make it viable is to look for high yield properties.

“We’ll be selling off some of our lower-yield properties when they become vacant, especially those that wouldn’t meet the proposed EPC targets, but when there are opportunities to buy from landlords, we are still actively investing – albeit cautiously.”

Harris Cohen says rising inflation is pushing up the cost of contractors, building materials and sending round a plumber – all of which the landlord has to absorb – potentially making the HMO with all-inclusive bills model unviable, particularly due to higher energy costs.

Rent increases?

Landlords are also having to then weigh up whether to increase the rent or keep good tenants. With a void period, they might have four weeks without rent which is the equivalent of any rent increase, says Harris Cohen.

“It makes sense to keep the existing tenant in place, so we’re having to negotiate rents but at the same time making tenants aware of the support available.”

The company has just sent out a cost-of-living letter to all its tenants as it expects to see an increase in rent arrears this winter, possibly even worse than that experienced during the height of the pandemic when there was more government support.

“We appreciate that some of our tenants – the majority of whom are on housing benefit – will have to choose between heating, eating and paying rent,” he adds.

“We’ve reminded them how important it is to pay rent and explained the support available and that we will help them where we can. However, we have our own financial liabilities with 150 properties.”

Visit the Open Property Group.

View Full Article: EXCLUSIVE: Big landlord to sell ‘low-yield’ properties as interest rates rise

Issues with landlord-section 13

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My partner and I have been having issues lately with our landlord.

The Property was not in good shape and the landlord was not aware of the state of the property when she tried to let it.

The owner (her mum) lives on the ground floor

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Landlords with agents face due diligence checks

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Propertymark is urging agents to familiarise themselves with updated guidance, so they don’t fall foul of anti-money laundering rules.

The move will see agents carrying out customer due diligence on their landlord clients – and tenants.

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Scratched hob – should the tenant pay?

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Hi, I installed a brand new ceramic hob before my tenant moved in, even provided liquid hob cleaner, along with a note asking them to use flat pans only along with user manuals.

The tenant has just moved out and the hob is scratched

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Government portal will give details on criminal landlords

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The government has revealed that its property portal will be publicly available for everyone to help drive criminal landlords and agents from the private rental sector.

The response is part of the consultation to reforming its rogue landlord database with news that the recently announced property portal will ensure that local councils

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Leading Labour MP savages landlords over short-term lets ‘explosion’

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York’s MP has accused private landlords of turning the city into a short-let hotspot, draining it of people and revenue.

Rachael Maskell says that its 2,132 known short-term holiday lets are having a catastrophic effect on both the residential and student community.

“The average rental price is £945 a month in York, but landlords can make £700 for a weekend in an unregulated market where they are seeing the opportunity to make more money,” she told a Generation Rent podcast.

“We’ve seen a plethora of Section 21 notices issued, people being evicted and fewer rental properties available where we don’t have enough in the first place,” adds Maskell, who says as tenants are evicted, they are leaving the city, taking skills with them.

Luxury

Maskell has previously told the Commons that developers are building luxury accommodation in York, prompting the government to say it has achieved its housing target – but then these properties are simply switched over to Airbnbs.

The MP believes the Levelling up and Regeneration Bill, along with suggestions in the government consultation into the sector – looking at tougher checks and a self-certification scheme for hosts – don’t go far enough.

She says her Short-term and Holiday-let Accommodation (Licensing) Private Members’ Bill – which gets its second reading on 9^th December – is needed as it makes a case for a widespread licensing regime.

This would give councils the power to require licensing for converting properties into short-term lets, issue fines and vary rates of local taxes.

“Local authorities need the right to say no to a licence,” she asserts.

View Full Article: Leading Labour MP savages landlords over short-term lets ‘explosion’