Written By Em

Em Morley

Agents Assisting Taxman to Recover Monies

Published On: March 23, 2015 at 2:04 pm

Tags: disclose any outstanding tax payments,etting agents have assisted the taxman

Latest figures released by HMRC suggest that letting agents have assisted the taxman in recovering in excess of £20m in unpaid taxes from private landlords.

During the past 12 months, hundreds of agents were served notice to provide details of rents they had collected on behalf of all landlords.

Crackdown

The figures from HMRC show that £20m was recovered up until the end of January 2015, a significant rise from the £7.9m announced in October.[1] HMRC’s crackdown on unpaid taxes is part of their Let Property Campaign.

Agents Assisting Taxman to Recover Monies

This campaign gives private landlords the chance to disclose any outstanding tax payments in more favourable circumstances then if they were caught. So far, it I estimated that over 9,500 have chosen to disclose their arrears and subsequently bring their payments up to speed.[1]

Warning

Ian Leigh, a tax partner at accountancy firm Jefferys Henry, remarked that, ‘these figures should come as a warning to anyone with undisclosed rental income.’ He went on to warn that, ‘with increased data-gathering activities, it is less likely a case of it and more likely when HMRC catches up with you.’[1]

Advanced technologies mean that HMRC is now able to collate information from a much-broader range of sources. Letting agents are now firmly under scrutiny. Mr Leigh advises that, ‘landlords with undisclosed rental income should take this opportunity to come forward and regularise their tax affairs as soon as possible.’[1]

He also said that cheaper penalties, ‘as low as 20%’ in some cases could be, ‘negotiated for those who make a voluntary declaration as part for the Let Property Campaign.’[1]

Landlords who chose to ignore the warnings face full penalties and in some cases, criminal proceedings.

[1] http://www.propertyflock.co.uk/f/B3BDBBD1B

Rental Price Gap Closing

Published On: March 23, 2015 at 8:56 am

Author: Em Morley

Categories: Finance News

Tags: prices have predominately risen,rent prices in the U.K as a whole rose,Rents for new tenancy price agreements

Latest findings have indicated that the gap in rental prices between London and the rest of the U.K is closing.

Results from the newest HomeLet Rental Index reveal that the average rent for properties in London have remained at a similar level during the previous three months. However in the rest of the country, prices have predominately risen.

Rises

Figures released for February show that seven out of twelve areas in the U.K have experienced increases in rent prices during the past three months. Prices in the North East of England rose sharpest, showing an increase of 3.1%. The South West also showed a substantial increase of 2.5%. Average rent prices in the U.K as a whole rose to £899 from £873 in December 2014.[1]

The remaining five areas, in which prices have not increased in the last three months are Greater London, the East and West Midlands, Wales and Scotland.

Rental Price Gap Closing

New Tenancies

Findings from the report also suggest that prices for new tenancies have risen substantially in some areas. Prices in Northern Ireland saw an increase of 7.2%, with the North East of England recording a 6.2% rise. Other areas where prices of new tenancies increased include the South West and East Anglia, where prices rose by 4.5% and 3.7% respectively.[1]

Rents for new tenancy price agreements in London however fell by 2.5% and prices in Scotland, Wales and the East Midlands also saw a dip in rents.[1]

Strongest Growth

Responding to the figures, Martin Totty, CEO of Barbon Insurance, the parent company of Homelet, said that the rental market in the U.K was becoming more widespread. Mr Totty noted that, ‘2014 saw the London rental market outstrip the rest of the UK in terms of rent price growth. ‘ He went on to say however that, ‘what we are seeing so far in 2015 is the private rental market becoming much more broad-based, with the strongest rent price growth occurring outside of the capital.[1]

Mr Totty also stated that, ‘other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow.’[1]

[1] http://www.residentiallandlord.co.uk/news/3763-rental-price-divide-narrows.html

Student Property Sector Growing

Published On: March 20, 2015 at 2:16 pm

Author: Em Morley

Categories: Landlord News

Tags: humour is a key element,increased competition within the market,Many students are daunted

New findings have suggested that the student property sector continues to go from strength to strength.

A report from Glide and Accommodation for Students shows that January and February proved popular months for students to start looking for their next rental home. 23% of landlords questioned said that they had already agreed tenancy agreements for all of the homes in their portfolio.[1]

In addition, another 36% of landlords and agents said that they believed their whole student property portfolio would be let by the end of May. Just 15% said that they did not expect to be successful in renting out all of their properties by the beginning of the next academic year in September.[1]

Competition

These statistics indicate that there is increased competition within the market, with properties being let earlier and quicker than before. With this in mind, Glide has teamed with Brett Booth, a youth insight consultant, to provide ideas aimed at helping landlords appeal to students and get their properties let as a result.

Their tips for landlords and agents include:

Embracing humour

When trying to appeal to younger people, the think-tank believes that using humour is a key element that must be used. By making fun of the industry and even themselves, landlords or agents could make their advert stand out in the congested market. Parodying themselves by using creative devices such as Photo-shop is just one way that humour could work well in appealing to the youth market.

Make the advert visible

With the youth of today more technologically advanced than ever before, landlords and agents must be conscious of the multitude of social media channels where they could successfully advertise. Channels such as Facebook, Twitter and Instagram provide perfect platforms for good adverts to not only be spotted but to be far reaching.

In order to be successful, landlords and agents should consider having both pictures and engaging videos embedded into their advert.

Simplify Bills

Many students are daunted by the prospect of leaving their homes to live in university accommodation. For a very high number, this transition will be the first time they have left home, therefore they could feel scared or apprehensive. The last thing they need then is to be worrying about bills.

To this end, student property providers should aim to offer inclusive bills where possible. Findings show that 72% of students say that inclusive bills are an important or crucial factor in attracting them to a property.

Value for money

All properties will be bound according to average local student rates. However, landlords can steal a march on their competitors by impressively marketing their homes. Instead of just providing a price, landlords and agents should tell the student exactly what they would receive for their money.

Fees for further education have rocketed; therefore students are becoming cagier with their money and look harder for the ideal property to suit their budget.

Agents and landlords alike should highlight specific benefits that are on offer as part of a student’s rent. This could include satellite television or high-speed broadband. Ex-residents could also serve as an ideal selling point if they were to talk about their positive experiences of living in the property. By using former students, existing academics will be more likely to empathise with them and could possibly be swayed to enter into a tenancy agreement.

[1] http://www.propertyreporter.co.uk/landlords/new-report-shows-student-property-sector-is-booming.html

Deregulation Bill to Stop Revenge Evictions

Published On: March 17, 2015 at 3:02 pm

Author: Em Morley

Categories: Landlord News

Tags: his government will put a stop to revenge evictions,the House of Lords has recently passed a law,the next step for the Bill is for it to gain Royal Ascent

After months of negotiation and different proposals, the House of Lords has recently passed a law which will prevent so-called revenge evictions.

The Deregulation Bill will see landlords prohibited from evicting tenants after they have complained about the condition of their property. Housing charity Shelter suggest that 200,000 tenants are faced by revenge evictions every year.

Deregulation Bill to Stop Revenge Evictions

Pledge

In a recent speech about affordable housing, Prime Minister David Cameron pledged that his government will put a stop to revenge evictions. Cameron said that, ‘we are outlawing retaliatory evictions so tenants don’t face the prospect of losing their home simply for asking that repairs be made.’[1]

As it has now been successfully passed, the next step for the Bill is for it to gain Royal Ascent. If this is, as expected, at the end of March, the Bill will then require a commencement order to make it legislation. It is widely expected that this will occur in October of this year.

[1] http://www.landlordtoday.co.uk/news_features/Revenge-evictions-ban-law-passed

‘Renting a Safe Home’ guide-impressions

Published On: March 17, 2015 at 10:32 am

Author: Em Morley

Categories: Property News

Tags: more user-friendly document,new legislation in the Deregulation Bill,the piece could benefit from some illustrations

The Government has recently released a number of publications aimed at aiding the rental market. One of these was guides is entitled: Renting a Safe Home: A Guide for Tenants.

Impressions

On first reading, it seems that the guide will undoubtedly be useful for many tenants, but could leave some with a few questions.

Narratively, the style of the piece is, as one would expect, official and an accurate reflection of the law. However, if the Government wished to target more underprivileged tenants, perhaps a more user-friendly document could have been better.

Occasionally, the piece could benefit from some illustrations, particularly when speaking about specific hazards. It is obvious that the author is confident addressing the subject matter, but many readers may need further assistance.

For example, illustrations of a gas safety certificate, unsafe electrical sockets and smoke and carbon monoxide alarms would all aid the piece and assist some tenants. Furthermore, examples of, ‘inappropriate positioning of amenities,’ mentioned in the guide would have proved to be more useful.

‘Renting a Safe Home’ guide-impressions

Expectations

The guide seems to be written in the expectation that revenge evictions will soon be a thing of the past, after the introduction of new legislation in the Deregulation Bill. With this said, the legislation will depend heavily on Environmental Health Officers being able to carry out assessments and subsequently serve improvement notices onto landlords.

With cuts to Local Authority funding, there is concern that many will not be able to provide an Environmental Health Officer to carry out the necessary assessments.

All in all, the guide is accurate and represents the law. This said, it remains to be seen how much it will help the number of tenants who are forced to live in unsafe homes.

Sub-Letting concern for rental market

Published On: March 17, 2015 at 8:39 am

Author: Em Morley

Categories: Property News

Tags: damage to properties from over-crowding can run into thousands,Landlord Action has moved quickly to air its concerns.,there should have been a period of consultation

A leading tenant eviction expert has voiced concern over upcoming Government proposals that would allow private-rental tenants to sub-let their property.

Budget smallprint

Reports have highlighted a piece of small print included in the latest Budget that points to a clause about subletting. This was included under the title, ‘support for the sharing economy.’

The information suggests that the government will: ‘make it easier for individuals to sub-let a room through its intention to legislate to prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short-term basis, and consider extending this prohibition to statutory periodic tenancies.’[1]

Landlord Action has moved quickly to air its concerns. The company founder, Paul Shamplina, said that the small print, ‘appears to have slipped in under the radar which, if it goes ahead, will throw up a magnitude of problems in the buy-to-let industry.’[1]

Shamplina continued by saying, ‘we have never seen so many sub-letting cases going to court because of unscrupulous tenants trying to cream a profit from property they have rented.’[1]

Problems

Mr Shamplina said that his company, ‘experience continual problems with tenants taking out tenancy agreements and then, in some instances, not even moving into the property themselves.’ Instead, he explains, tenants put up, ‘partitions,’ and then begin, ‘sub-letting to as many people as possible.’[1]

He went on to say that many tenants, ‘draw up separate agreements and trick sub-tenants into thinking they are the landlord.’ Shamplina notes that, ‘by the time landlords find out, damage to properties from over-crowding can run into thousands, and the tenant who holds the legitimate tenancy agreement is nowhere to be found.’[1]

Recommendation

Despite the content of the information yet to be disclosed, Shamplina suggests that, ‘there should have been a period of consultation with the industry before this was announced.’ He feels that, ‘this is not the way to fix the housing shortage and in fact will have quite the opposite effect if more and more landlords are exposed to the risk of nightmare sub-tenants.’[1]

Sub-Letting concern for rental market

Shamplina concluded by saying, ‘giving landlords even less control over their own property by preventing them from instilling clauses which prevent sub-letting could drive more good landlords out of the marketplace.’[1]

[1] http://www.landlordtoday.co.uk/news_features/Landlord-Action%3A-%E2%80%9CSub-letting-will-be-catastrophic-for-the-rental-industry%E2%80%9D