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Em

Em Morley

Fake Landlord-and-Tenant Couple Took £66,000 in Benefits Scam

Published On: April 10, 2015 at 4:30 pm

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A couple that pretended to be landlord and tenant, despite having three children together, stole £66,000 in a benefits scam.

Sikander Rafiq, 34, and Samara Jabreen, 32, told the lie to Birmingham City Council in a scam that spanned eight years.

From Ward End, Birmingham, the couple claimed £66,268 in housing benefit, Council Tax benefit and income support. Birmingham Crown Court was told that Jabreen’s first income support claim in 2002 was genuine.

However, three years later Rafiq bought a home for the family. Jabreen then claimed to be a private tenant and requested her benefit payments be paid to the landlord, Rafiq.

Prosecutor Blondelle Thompson said that additionally, Jabreen signed declarations stating that neither she nor the children are related to Rafiq. The mother also claimed single occupancy discount on her Council Tax.

Jabreen pleaded guilty to two counts of failing to notify a change in circumstances and a charge of making a false representation. Rafiq confessed to a charge of furnishing false information regarding the tenancy agreement provided to the Council.

Jabreen has been spared prison due to her ill health and being the sole carer of their children. She was sentenced to 22 weeks, suspended for 18 months, placed under supervision for 18 months, and ordered to join the Anawim probation project for 30 days.

The court heard that Rafiq acted out of desperation to pay the mortgage rather than through greed. He was given an 18-month sentence, suspended for 18 months, and ordered to carry out 180 hours of unpaid work.

The investigation began after a report was issued to the City Council’s fraud investigation team in October 2011.

Thompson said: “At no time did she declare Rafiq was her partner or father of her children. The house was put under surveillance and his car was seen daily and was used by Jabreen.”1

Life insurance documents and a Virgin Media account, both in Rafiq’s name, were registered at the couple’s address.

Judge Roderick Henderson called Rafiq a “dishonest” man, who once pretended to be his brother to avoid getting a criminal record.

He said: “As far as you are concerned, I get a very clear picture of a person who is dishonest and bends things to whatever benefits you at a particular time.

“You both pleaded guilty but when you came back to be sentenced you wanted to vacate your plea because you said you were not guilty at all. You then turned up and entered a guilty plea but put forward a false basis.

“You have behaved not only in a dishonest way in the history of the case but before the court.”1

The judge believes that Jabreen played a smaller role in the scam and was encouraged by Rafiq.

1 http://www.dailymail.co.uk/news/article-3022813/Couple-pocketed-66-000-benefits-scam-pretending-landlord-tenant-three-children-together.html

 

Those in Their 30s Might Never Move House Again

Published On: April 10, 2015 at 4:13 pm

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Those in their 20s and 30s in the UK will own half as many properties in their lives as their parents, research has found.

This age group will own an average of 1.7 houses in their lifetime, compared to 3.2 for the over-50s. These figures were revealed by a study from LV= home insurance, who also discovered that a third of homeowners are living in homes that are too small for them but they cannot upsize.1

Around a quarter of survey respondents said that they are unable to save up for a deposit on a bigger house, and a sixth are waiting for property prices to fall before even considering moving.1

Experts say that rising prices, which have caused higher Stamp Duty, legal fees and estate agent costs, as well as a housing shortage and harsher mortgage lending are to blame.

Lots of families are staying in their homes, but deciding to extend. Moving house has become so difficult that many respondents say they are in their forever home, including one in five of those in their 30s.1

Those in Their 30s Might Never Move House Again

Those in Their 30s Might Never Move House Again

A different report revealed that the affordability of properties in UK cities has worsened over the past year and is currently at levels last found in 2009. The typical price is now over six times the average annual income.

LV=’s Selwyn Fernandes says: “While owning your own home was achievable for the previous generation, it is an impossible dream for many today. Rising house prices and strict lending criteria are now not only preventing people from buying their own home, but they are also stopping many homeowners from moving, forcing them to modify their homes instead.”1

Paula Higgins from the HomeOwners Alliance, also comments: “This survey suggests many are stuck in homes which may be unsuitable because they cannot afford to move.

“In different stages of your lives, you have different needs. You may need to move closer to your place of work, or to good schools, or nearer to family. You may want more green space or a more adaptable home. But lots of people are finding they are stuck in their first homes, which they struggled to afford in the first place.

“Transaction costs, changes to mortgage lending criteria and, critically, a woeful lack of new homes being built puts homeownership, and moving up the ladder, out of the reach of many.”1

The average property price in cities has increased from £182,000 to £195,000 between 2014-2015.1

Lloyds Bank found that Oxford is the least affordable city in the UK, followed by Winchester, Cambridge, Chichester, Brighton and Hove, Bath, and London.

The most affordable is Stirling in Scotland, with Londonderry in Northern Ireland closely following. Just behind are Lancaster, Bradford, and Hereford.

The highest house price growth since 2005 is in Aberdeen, due to their sharp property boom. London has experienced the largest growth since 2010.

Lloyds Bank’s Andy Hulme concludes: “House price rises in the past two years have resulted in a deterioration in home affordability in the majority of UK cities, and generally widened the north-south affordability divide.”1

1 http://www.dailymail.co.uk/news/article-3013955/Young-never-buying-home-Survey-suggests-Britons-twenties-thirties-average-1-7-properties-lifetime.html

 

Budget amendments to private rental sector

Published On: April 9, 2015 at 3:54 pm

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Categories: Landlord News

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George Osborne’s latest and possibly final Budget threatened to create much interest for landlords. With the closest General Election for decades looming, there is an uncertainty in the property market.

 

Surprisingly, the Chancellor provided only limited changes for the private rented sector in his announcement. With this said, there was a proposal to scrap the annual tax return, in favour of people being able to pay their tax and submit returns online throughout the year.

 

Switchover

 

The switchover to the digital format is expected to begin in early 2016. As part of the changes, people will be permitted to pay their tax at any period during the financial year. Payment in installments will also be allowed.

 

Choosing to pay online will enable people to see exactly how HM Revenue and Customs calculate tax. In addition, people will be able to link software and bank accounts, eradicating the need to fill in an end-of-year return and having to pay a large bill all at once. If a person wishes to continue to complete an annual paper return, then the option will still be available.

 

The National Landlords Association are one of a number of industry organisations to welcome the move, saying that it will make things more efficient for landlords.

 

Additional changes

 

This year’s Budget also included some additional changes which could concern landlords. The Government’s failure to continue with their support for energy improvements after March 31st is disappointing given that new Energy Performance regulations have recently been outlined. The lack of support could see many landlords having to fund energy improvements out of their own pockets.

 

Furthermore, the Government has revealed plans to prevent private sector tenancy agreements to include clauses that prohibit the sub-letting of a residence. This means that landlords will not have full control over who is residing within their property. Landlords are also concerned that this rule will lead to complications with the recent terms of the Immigration Bill, which orders landlords to check to immigration status of their tenants. It remains unclear how these checks would be affected in the case of sub-letting.

 

Some experts have also predicted another buy-to-let boom, following changes to pension rules. Under the new legislation, people will be able to use money from their pension fund to invest in property.

‘Bed and Breakfast’ fear for landlords

Published On: April 8, 2015 at 4:05 pm

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There is concern that new legislation regarding the prevention of prohibiting tenants from sub-letting their rental property could see many homes turned into small bed and breakfasts.

 

Proposals in the Budget, under the title, ‘sharing economy,’ have provoked a wary and critical backlash from a number of industry figures.

Concern

These detractors have raised various concerns, mostly concerning the right of a landlord to know exactly who is residing in their property. Other concerns focus on potential pitfalls such as tenancy deposits, landlords’ mortgages and insurance and the creation of a House in Multiple Occupation. Furthermore, issues surrounding the Immigration Bill, where landlords are responsible for checking the immigration status of tenants, also appear to have been thrown into confusion.

'Bed and Breakfast' fear for landlords

‘Bed and Breakfast’ fear for landlords

 

Advantages

Housing lawyer Tessa Shepperson is more optimistic about the changes and sees some advantages for tenants who are allowed to effectively run a business from their landlord’s property. Shepperson said that, ‘many tenants are finding it hard to make ends meet and being able to take in a lodger or paying guest would help them greatly financially.’[1]

 

She continued by noting that the change, ‘would be particularly helpful in situations where one or more tenants have lost their job or where one of joint tenants wants to move out.’[1] Shepperson also feels that the housing crisis could and should be effectively managed. She is of the opinion that we, ‘actually have sufficient capacity to house our population,’ but it is, ‘just not being used efficiently.’[1]

 

Right to Rent

Shepperson believes that, ‘giving tenants the right to rent out their spare room to make a bit of cash would help ease the housing crisis, certainly so far as single people are concerned.’ This, she argues, would give them, ‘a wider pool of places they could go.’[1]

 

Despite her enthusiasm and supposed backing of the change, Shepperson does suggest that any new legislation would have to be carefully considered and then drafted. She also thinks that the rent a room allowance should be raised.

 

[1] http://www.propertyflock.co.uk/f/3B37B1AE4

 

‘Unhealthy’ urban areas named and shamed

Published On: April 8, 2015 at 10:12 am

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A recent investigation has found that urban areas in the North and the Midlands are most likely to include a larger number of businesses that could cause harm to public health.

 

The report, commissioned by the Royal Society for Public Health (RSPH), includes a league table ranking 70 towns and cities against the proportion of businesses that either support or harm the public’s wellbeing.

 

Health on the High Street

Rankings such as this are part of the RSPH’s ongoing Health on the High Street campaign, which seeks to make Britain’s high street healthier. The RSPH are trying to encourage businesses to carry out measures that would improve this and are also lobbying for more powers to be given to local authorities in licensing and planning areas.

 

After consultation with public and industry experts, the Society has classed bookmakers, payday lenders and fast food outlets as having the most negative effect on health. On the other hand, pharmacies, leisure centres and health services were found to have the most positive impact.

 

Rankings

The rankings in the report were configured after businesses were scored by over 2,000 people, consisting of the general public and experts. Scores were given for the extent businesses promoted healthy choices, encouraged social interaction and gave access to health advice.

'Unhealthy' urban areas named and shamed

‘Unhealthy’ urban areas named and shamed

 

Top ten results for both positive and negative areas are outlined below:

 

Places with the healthiest retail regions

  • Shrewsbury
  • Ayr
  • Salisbury
  • Perth
  • Hereford
  • Carlisle
  • Cambridge
  • Cheltenham
  • York
  • Bristol

 

Places with the unhealthiest retail regions

  • Preston
  • Middlesbrough
  • Coventry
  • Blackpool
  • Northampton
  • Wolverhampton
  • Grimsby
  • Huddersfield
  • Stoke on Trent
  • Eastbourne[1]

 

Calls for change

As part of their ongoing campaign, the RSPH is calling on the next Government to adhere to a number of rules, in order to make the high street more-healthy. These include:

 

*Local authorities given the power to prevent the saturation of the market for betting shops, payday lenders and fast-food shops

*Making public health criteria a mandatory condition of licensing for all business types

*Compulsory hygiene ratings, calorie and nutritional information for all fast-foodoutlets

*A limit of just 5% for each business to give choice on the high street

*New legislation that enables local councils to set their own business rates to promote healthier outlets and eradicate those that are harmful to health

 

Unhealthy Busines 

Chief Executive of the Royal Society for Public Health Shirley Cramer, was concerned that the findings of the report highlighted a growing number of unhealthy outlets. Cramer said that, ‘while our ranking of towns and cities is by no means a reflection on whether these areas are generally healthy or unhealthy, our research does find higher concentrations of unhealthy businesses exist.’[1]

 

Cramer is concerned that these businesses are prevalent, ‘in places which already experience high levels of deprivation and premature mortality.’ She said that the RSPH, ‘recognise that businesses investing in High Streets are important for local economies; but this shouldn’t be at any price.’[1]

 

Dr Janet Atherton, President of the Association of Directors of Public Health, said that their own research, ‘shows empowering local authorities to control the total availability of alcohol, gambling and fast food on the high street is a top 10 priority for 91% of Directors of Public Health.’ Atherton urged the Government to, ‘implement legislative changes,’ and to, ‘bring about these necessary changes to help protect public health.’[1]

 

[1] https://www.rsph.org.uk/en/about-us/latest-news/press-releases/press-release1.cfm/pid/792B0BEF-F0FF-4349-B34BB5E5041A2D17

ISA Boost for First Time Buyers

Published On: April 7, 2015 at 12:02 pm

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Chancellor George Osborne gave first-time buyers unexpected but welcome cheer with a particularly feature of his latest Budget.

 

Help to Buy ISA

Mr Osborne announced plans for a new Help to Buy Isa, where first time buyers will receive an additional £50 for every £200 that they save for a deposit. The scheme will be capped at £3,000 per £12,000 saved and a person will only be able to open one account. However, the scheme is not capped at one account per household, therefore people buying together can both receive the bonus.[1]

 

Additionally, there is a limit on the price of properties that savers using the Help to Buy ISA will be able to buy. These are £450,00 for homes in London and £250,000 for homes in all other regions. The scheme goes live in the Autumn.[1]

 

Unsurprisingly, the scheme has been widely welcomed in the industry, but there are concerns that some savers will chose to spend the additional cash for other reasons.

 

One of those urging concern is Ray Boulger, of mortgage brokers John Charcol, who believes that the scheme needs to be, ‘robustly policed to make sure the savings are not used for other purposes.’[1]

 

ISA Boost for First Time Buyers

ISA Boost for First Time Buyers

 

He continued by saying, ‘more first-time buyers say finding the deposit is a bigger problem than finding the monthly payments and so the Help to Buy ISA will bring forward the dream of home ownership for many.’[1]

 

Mortgage

Critics also argue that the scheme helps those who are struggling to raise a deposit, but does not help those who cannot get a mortgage. Jonathan Harris, of mortgage brokers Anderson Harris, acknowledged that it, ‘is good news that first-time buyers will get Government assistance with their deposit.’[1]

 

However, Harris says that the big issue, ‘is that even if a first-time buyer can get together a deposit, there is no guarantee that they will be able to get a mortgage.’ He goes on to note that, ‘tighter rules under the mortgage market review mean many people who shouldn’t be struggling to get a mortgage are doing so.’ This, Harris believes, ‘requires Government intervention.’[1]

 

Adrian Gill of Your Move and Reeds Rains estate agents was more positive, saying, ‘Help to Buy is the Chancellor’s trump cared yet again.’ Gill believes that, ‘this significant new ISA scheme will help thousands of aspiring homeowners accumulate what they need to jump onto the property ladder.’[1]

 

 

[1] http://www.zoopla.co.uk/discover/property-news/budget-help-to-buy-isa-for-first-time-buyers/?utm_source=Twitter&utm_medium=Ads&utm_campaign=htb%20isa%20paid%20tweets#ctX5F3wi392YdgpW.97