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Em Morley

Government Warns over Not Paying Tax

Published On: May 4, 2013 at 4:27 pm

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Due to the fragile economy in the UK, the Government are cracking down on companies or businesses that may be avoiding paying tax.

Government Warns over Not Paying Tax

Government Warns over Not Paying Tax

The news has already uncovered numerous stories regarding celebrities, landlords, and corporations using loopholes to pay less tax, and all of them have been condemned for their actions.

Additionally, HM Revenue and Customs (HMRC), has said that they are seeking out anyone who has sold their property recently and not paid their Capital Gains Tax (CGT). They will soon be planning more serious repercussions.

Jonathan Turner, of tax advisory company KPMG’s Northern Private Client team, has made a statement warning those who haven’t paid CGT: “If you have sold a property which wasn’t your main home, it’s likely you will need to pay Capital Gains Tax on the profits. There is a limited window of opportunity to come clean. If you think you are unaffected by this you must come forward and tell HMRC by 9th August 2013. In return, you will secure the best terms possible to pay the money back by the deadline of 6th September 2013.

“Ignoring this is not an option. After this amnesty period passes, HMRC will use the information they hold to target you, and you may be subject to harsher penalties or even prosecution.” 1

He adds: “You can ask your accountant to make this notification on your behalf, or complete a notification form online. Do not leave it until the last minute: HMRC require detailed information about the sale, as well as any other gains you haven’t previously disclosed. This is an opportunity to get your affairs in order and ensure you are meeting your responsibilities.”

If you have sold a property recently, either in the UK or overseas, then you are required to pay CGT on any profit you made over £10,600. Depending on which country you have sold your property in, you may also have to pay extra tax there. Ensure you check this with your overseas property insurance provider.

You can check the rules surrounding CGT on the HMRC website, or call their helpline if you are unsure. An accountant will be able to inform you quickly and with ease on how much you owe and how to pay this.

1 http://www.justlandlords.co.uk/news/Landlords-warned-over-not-paying-tax-1709.html

 

 

Housing Associations Move to Private Rental Sector

Published On: April 25, 2013 at 10:40 am

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A number of large housing associations are moving into the private rental market. The latest to make the transition is Genesis, which works across London and the South East.

Genesis will be advertising one, two and three-bedroom properties to be privately rented. These properties will be let out to all types of tenants, ranging from young professionals to families with children who simply cannot afford property in the capital.

Report

To coincide with their move into the private rental sector, Genesis also published a report in conjunction with the Smith’s Institute. The report looks into the future of housing associations and suggests that they may have to become more commercially minded to deal with grant reductions and welfare reforms.

Housing Associations Move to Private Rental Sector

Housing Associations Move to Private Rental Sector

Genesis suggest that the housing sector will become dominated by private rental tenants in the coming years, as people are priced out of owning their own homes. The report criticises short-term tenancy agreements and rules against consumers personalising their rented property. Unpredictable rent increases also come under fire.

Chief Executive of Genesis, Neil Hadden, said: “At a time when more people are renting than ever before, we believe it is important to offer high-quality private rental properties.”

He claims that Genesis use a “breadth and depth of housing management experience to create a comprehensive offer,” which in turn gives tenants “greater flexibility, choice and security than other parts of the private rental sector.”[1]

Hadden went on to say that Genesis are offering “tenants longer tenancies, greater freedom to personalise their homes and the flexibility to move within our property portfolio if their needs change.”[1]

Moves

Recently, it was also announced that Notting Hill Housing Group is also migrating into the private rental sector. The announcement stated that the group will buy 140 properties from Berkley Homes, in order to be privately let. This partnership is in conjunction with the Greater London Authority and the Homes Community Agency.

Further indications that more housing associations are moving into the private rental sector came with the news that Guiness Partnership and Catalyst Housing are each building 1,000 new private rental properties. Both associations are doing so without any Government funding. They join London & Quadrant and Places for People in pledging to use their own funds to move into the private rented sector.

Build-to-rent

A number of housing associations were recently named as winning bidders for the build-to-rent loan scheme. Notting Hill Housing Trust was one of those successful and expects to quadruple its portfolio in five years as a result. This would mean building a further 2,000 homes for rent.[1]

Other associations that were successful include Network Housing Group and Together Housing Group. Additionally, Persimmon, one of the UK’s largest building organisations, plans to build 600 homes for private rent.

[1] http://old.lettingagenttoday.co.uk/news_features/Housing-association-giant-moves-into-private-rentals

 

 

 

What does Quiet Enjoyment Mean?

Published On: April 19, 2013 at 2:17 pm

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Most tenancy agreements, whether commercial or residential, will include an agreement on the part of the landlord for quiet enjoyment of the premises.

What does Quiet Enjoyment Mean?

What does Quiet Enjoyment Mean?

Common law states that every landlord must allow their tenant quiet enjoyment of the property they are renting. This means that a landlord must make sure that no one interferes the tenant’s right to possession of, and enjoyment of, the premises. This could relate to the landlord themself, or a letting agent. A tenant may claim damages or potentially an injunction, if any interference does not cease.

The quiet part of quiet enjoyment does not relate to noise. In this context, it means without interference. Enjoyment means to have the use and benefit of the premises.

In fact, in a case of the London Borough of Southward vs. Mills, the House of Lords overruled a breach of quiet enjoyment after the tenant claimed against the landlord because of excessive noise from other tenants within the building. It concluded that the tenant began renting when the flats were already noisy. Their property was also found to have satisfactory soundproofing.

Temporary interferences are also likely to make a claim unsuccessful.

For a tenant to claim a breach of quiet enjoyment, they must prove:

  1. That there has been a new activity after the grant of the lease, and
  2. That there has been serious and persistent disturbance to the tenant’s occupation of the premises.1

The Court of Appeal has also claimed that the breach of quiet enjoyment does not apply against all disturbances. In one case, a landlord had scaffolding to carry out repairs on the outside of a tenant’s restaurant building. The claimant stated that this made the restaurant seem closed, and caused dust and inconvenience within the premises.

The Court of Appeal ended in favour of the landlord, stating that it was the landlord’s responsibility to conduct repair works for the benefit of both parties.

A landlord will also not breach quiet enjoyment if they enter a tenant’s property to follow a right set out in the agreement, for example, conducting inspections or repairs.

Invasive surveys, obstructing a tenant’s access to their premises, or causing damage to the property by an act or omission taking place on an adjoining property will put a landlord at risk of a claim.

1 http://www.foxwilliams.com/news/704

Risk Warning over Electric Appliances in Rented Property

Published On: April 12, 2013 at 5:11 pm

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Landlords and their agents have been warned about the risks of electrical products that are already in their rental houses, and any new ones that are installed, such as ovens, dishwashers, and fridges.

There has been an on-going wave of safety alerts and product recalls in this area. Just last week, Dorset Fire and Rescue Service dealt with a serious house fire caused by a tumble dryer.

Risk Warning over Electric Appliances in Rented Property

Risk Warning over Electric Appliances in Rented Property

Beko, an electrical appliance manufacturer, has continually been called out as being the cause for domestic fires, after their products allegedly started at least 20 fires in homes since 2010.

Regardless of the many alerts and product recalls, it is predicted that about 138,000 Beko products are still in domestic properties.

However, Beko is not the only manufacturer to have published warnings.

Electricity is a major cause of house fires in the UK, including rental properties. In a recent insurance claim, a landlord suffered more than £100,000 worth of damage to his rental property, after a fire started from a faulty fridge-freezer.

Manufacturers often issue product recalls, 266 in the past six years, however, there are problems with tracing the products because they are not registered.

For instance, from one batch of faulty dishwashers made in a seven-year period, only one in four has been traced. The average success rate of recalls is just 10-20%, says the Electrical Safety Council (ESC).1

Specialist insurers LetRisks’ Michael Portman says that landlord should regularly check all installed electrical appliances, for safety, and also for recalls.1

Furthermore, the landlord or agent should register new appliances with the manufacturer. This will make it easier for to be contacted if a product is recalled.

All appliances should be recorded on the inventory, including the make and model number.

The ESC have a webpage where you can find out of your product has been recalled: www.esc.org.uk/recall.

1 http://old.lettingagenttoday.co.uk/news_features/Warning-over-danger-electric-appliances-in-rented-properties

 

 

Hong Kong Rooms Size of Toilet Cubicle

Published On: April 12, 2013 at 10:33 am

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Categories: Property News

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We are used to hearing about the housing crisis in the UK, and the fact that the sharply rising population has caused a huge shortage of affordable properties. But what about elsewhere in the world?

Hong Kong Rooms Size of Toilet Cubicle

Hong Kong Rooms Size of Toilet Cubicle

It has recently been found that Hong Kong’s housing crisis is much worse, with people living in rooms around the size of a toilet cubicle within massive tower blocks.

In 2012, property prices in Hong Kong rose faster than any other country, and now it will cost about $8 a month for every square foot of space in your home.1

House prices in Hong Kong have tripled since 2009, partly due to a splurge by overseas property investors, particularly from China. The availability of low cost mortgages has also been sparse.

Now there is a huge lack of housing available, meaning that the properties bought in 2009 have now increased in value so much that many of those living in Hong Kong can no longer afford to live in any other accommodation than the tower blocks.

However, some have predicted that there will be a peak in the Hong Kong property market soon. This is expected to stem from the Chinese Government trying to limit the gains on these properties, and the banks increasing home loan rates by 25 basis points, following new stricter risk regulations.1

Chairman of John Swire & Sons Ltd, James Hugh-Hallett, believes that the continuous price gains in the Hong Kong housing market will lead to a “competitive disadvantage” and that property controls enforced by Hong Kong Chief Executive Leung Chun-Ying make sense.1

Hugh-Hallett adds: “We’re at the very top of the market for our global comparison. If you look at the price equivalent you pay in New York, Paris, London, Tokyo, there should be a price ceiling somewhere very soon.”1

Investors with overseas properties in Hong Kong should be aware of the changes that will soon arrive in the housing market, particularly as the rules could change regarding renting, and the amount of potential profit from buying and selling homes. It could also have an impact on overseas property insurance, and rent income and property tax.

1 http://www.justlandlords.co.uk/news/Hong-Kong-has-most-Expensive-Housing-in-the-World-1693.html

 

 

Tenant Cash Incentive Schemes Considered

Published On: April 10, 2013 at 4:56 pm

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Social housing tenants in the northwest London borough of Harrow could be offered financial incentives to move to another country.

Harrow Council have revealed that they could make offers of up to £20,000 to tenants who are “already considering moving abroad”, insisting that it would be “entirely their choice.”1

This was just one option presented to council tenants and leaseholders, at a meeting aimed at finding ideas to free up housing stock.

Other possibilities mentioned were moving tenants into smaller properties, or into private rental sector homes.

The Council states that they have 5,000 houses, which is one of the smallest housing stocks of social housing in the capital. However, they say that the ideas are at a “very early stage.”1

Bob Currie, councillor and portfolio holder for housing, says: “One idea was the possibility of offering an incentive to tenants already considering moving abroad; for example to retire, or to move nearer to a relative.

“It would only be offered to people considering a move away and it would be entirely their choice.

“Many different cash incentive schemes are being considered in order to free up vital housing stock.

“It must be stressed that there is no commitment to introducing any of the schemes at this time.”1

1 http://m.bbc.co.uk/news/uk-england-london-22076132