Written By Em

Em Morley

Investor Branded “Rogue Landlord” Threatens to Sue Council

Published On: September 22, 2017 at 10:04 am

Author: Em Morley

Categories: Landlord News

Tags: London,overcrowding,property conditions,rogue landlords

Investor Branded “Rogue Landlord” Threatens to Sue Council

A property investor who owns a three-bedroom house in Queensbury, northwest London, where 35 men were found living in rooms full of mattresses, has threatened to sue Brent Council after it publically referred to him as a rogue landlord.

We covered the shocking story yesterday – click here to read the full article: /council-warns-rogue-landlords-coming/

The residents had been cramped into every room of the property, other than the bathrooms, with bedding. Even the kitchen contained a sleeping area, while there was another mattress found laid out under a canopy in the back garden.

However, the landlord of the property, Sunil Hathi, insists that he had no idea of the conditions of the property or the fact that so many people are living in the house, as he originally let it to three individuals.

Brent Council raided the property on Winchester Avenue earlier this week, following complaints from neighbours about overcrowding, anti-social behaviour and fly tipping.

Hathi, who is a doctor, said that he was shocked by the discovery and has pledged to evict the men as soon as possible.

He responded: “I have no idea how many people are living at this address; it was originally rented out to three people. This is the first time I have come here in the month they have been living here. We were not aware they were staying here and we are going to evict them.

“Brent Council put out a statement to the press saying that it was a ‘rogue landlord’ and I resent these comments. They’re highly defamatory and I am speaking with my lawyers.”

He added: “I’m not running away from anything – why would I? This house is worth a lot of money. They could have found me in minutes on the Land Registry.”

Landlords, have you ever experienced a similar situation where you did not realise what condition your rental property was in?

Together Explains its Changes for Buy-to-Let Portfolio Landlords

Published On: September 22, 2017 at 9:42 am

Author: Em Morley

Categories: Finance News

Tags: mortgages,portfolio landlords,PRA changes,property investors

Together Explains its Changes for Buy-to-Let Portfolio Landlords

Together has confirmed its continued support for buy-to-let portfolio landlords ahead of the Prudential Regulation Authority’s (PRA) underwriting changes, which will be implemented from 30^th September 2017.

The specialist lender has explained the changes that it plans to introduce for buy-to-let portfolio landlords – those with four or more mortgaged buy-to-let properties – who are subject to the new PRA regulations.

From 29^th September, the loan-to-value (LTV) across a customer’s portfolio must not exceed 75%, including mortgage-free properties.

Together will apply an overall portfolio interest coverage ratio (ICR) for customers who have had arrears on any mortgage or secured loan in the past 12 months, and will require proof of income, although, if there are no secured arrears, then this will not be applied.

The lender has updated its property schedule document to capture whether properties are tenanted and the repayment type of existing mortgages. There will also be two additional questions on Together’s broker portal, My Broker Venue, to find out how many mortgaged buy-to-let properties the customer currently owns and the length of time the customer has been a landlord.

Richard Tugwell, the Intermediary Relationship Director at Together, says: “As the buy-to-let sector prepares for further changes, it’s likely that we’ll see a move towards specialist lenders like ourselves that can offer the flexibility and personal approach that will be needed in many portfolio landlord cases. At Together, we have updated our processes to help make it as easy as possible for brokers to adapt to the changes, and applied our usual common sense approach.

“Earlier this year, we enhanced our buy-to-let product range, and we’ll be continuing to review both our products and processes as the changes come into effect. We have a specialist buy-to-let team responsible for underwriting these applications, and our roving underwriters and business development managers will provide any additional support that brokers may require.”

All new applications by buy-to-let portfolio landlords to Together will be processed in line with this new criteria from 29^th September 2017.

Make sure you’re ready for the PRA’s changes.

More People will Rent than Own their Homes in 8 Years, Economist Believes

Published On: September 22, 2017 at 9:03 am

Author: Em Morley

Categories: Property News

Tags: homeownership,housing crisis,renting,tenants

More people will rent properties than own their own homes in just eight years’ time, according to one economist.

More People will Rent than Own their Homes in 8 Years, Economist Believes

Sebastian Burnside, a Senior Economist at NatWest, believes that a major cultural shift in homeownership is on the horizon, with more private tenants than mortgaged homeowners in just a few years.

By 2025, Burnside claims that the number of mortgaged households will be just under six million, while the amount of households in private rental accommodation will be slightly more, at six million. This crossover is expected to happen in late 2024.

Burnside says: “We think it’s a fairly comfortable bet that, by 2025, we will have more households renting privately than owning their homes with a mortgage, which is a big cultural shift for a country like the UK and something that’s being driven by those underlying demographics.”

There are already more people owning their homes outright than people buying with a mortgage, and the number of outright homeowners is expected to continue climbing.

Since 2013, outright homeownership has been the largest form of housing tenure in the UK. By 2024, Burnside says that around nine million households will own their homes outright.

The amount of households in social rental housing is forecast to edge downwards, from four million today to just under that figure.

Burnside reports that fewer people are taking out mortgages because of the differences between their incomes and house prices. However, baby boomers are increasingly able to pay off their mortgages.

He insists that, as the private rental sector grows, lenders need to rethink their repossession strategies.

At present, lenders tend to treat homeowners who fall into mortgage arrears with more leniency than buy-to-let landlords; defaulting landlords typically have their properties possessed within months.

However, Burnside notes that possessing landlords’ properties quickly is problematic to their tenants, who often develop ties to the area they’re living in.

How quickly do you expect renting to overtake homeownership?

Gas Safety Week May be Coming to an End, but it Still Matters

Published On: September 22, 2017 at 8:13 am

Author: Em Morley

Categories: Landlord News

Tags: gas safety,gas safety week,Health and safety,landlord law

Gas Safety Week May be Coming to an End, but it Still Matters

This weekend may mark the end of 2017’s Gas Safety Week, but landlords must remember that gas safety still matters going forward.

Earlier this week, when Gas Safe Register’s Gas Safety Week 2017 began, we reminded all landlords of their legal obligations regarding gas safety, to ensure that you keep your tenants safe when they’re living in your properties.

Although gas safety is important all year round, Gas Safety Week is the perfect opportunity to raise awareness amongst homeowners, landlords and tenants of their responsibilities concerning gas safety.

Our partner Just Landlords has also highlighted this week how costly failing to comply with your legal duties can be – watch out!

To help all landlords keep their properties gas safe and protect their tenants’ health and safety, we have created a comprehensive guide to your responsibilities. Read it for free here: /landlords-guide-gas-safety/

Although Gas Safety Week comes to a close on Sunday, we are calling on all landlords to stick to the law and comply with all of the regulations regarding gas safety.

The Chief Executive of ARLA Propertymark (the Association of Residential Letting Agents), David Cox, reiterates the organisation’s support for gas safety awareness: “As Gas Safety Week draws to a close, ARLA Propertymark highlights the campaign and the importance of gas safety. Agents and landlords are legally responsible for the safety of their tenants, so it’s important they ensure that maintenance and annual safety checks on gas appliances are carried out by a Gas Safe registered engineer. In the last three years, there have been 22 deaths and nearly 1,000 gas-related injuries, and Gas Safety Week gives us an opportunity to reiterate the need for better safety measures in rental properties.

“Providing a Gas Safety Certificate to tenants is already a legal requirement for landlords, and provides peace of mind for tenants that the property and its appliances are safe. Renters shouldn’t be afraid to demand this document if they aren’t given it at the start of an agreement. It’s now time for the Government to make best practice legal, and enforce compulsory carbon monoxide alarms in every rented property. At the moment, they only need to be in rooms with solid fuel burning, but we should be doing all we can to protect tenants.”

Don’t forget to keep up with your gas safety requirements when Gas Safety Week finishes for another year!

Property Transactions Down in August in Typical Seasonal Slump

Published On: September 21, 2017 at 9:54 am

Author: Em Morley

Categories: Property News

Tags: homebuyers,property sales,property transactions

Property Transactions Down in August in Typical Seasonal Slump

The latest official property transactions statistics, for August 2017, from HM Revenue & Customs (HMRC) show that sales were down last month in a typical seasonal slump.

The provisional seasonally adjusted UK property transactions count for August was 103,490 residential and 10,600 non-residential sales.

The seasonally adjusted estimate of the number of residential property transactions dropped by 0.5% on a monthly basis in August, but is up by 6.6% on an annual basis – the same level as transactions in August 2015.

HMRC warns that caution should be used when making comparisons of transactions between August 2016 and 2017, as some taxpayers may have changed their behaviour as they considered the result of this year’s snap General Election and the EU referendum in June last year.

For August, the number of non-adjusted residential property transactions was around 6.6% higher than in July, and 5.6% up on August 2016.

The figures for the three most recent months are provisional, and are therefore subject to revision.

The Managing Director of West One Loans, Stephen Wasserman, comments on the data: “With widespread speculation about when a base rate rise will happen, it’s to be expected that there is some knock-on for the property market. However, we are confident that the sector will show its much-admired resilience, especially from an investor perspective, over the coming months, due to the fundamental supply and demand mismatch in this country.

“With the UK set to leave the EU in March 2019, there is going to be a lengthy period of uncertainty, but we are hopeful that the property sector can provide continued stability for investors and consumers alike. As the market picks up again, it is crucial that investors understand all the financing options that are available to them, which includes specialist solutions, such as bridging loans, a sector which has seen solid growth in the second quarter of the year.”

We remind all portfolio landlords to be aware of the new underwriting rules being introduced at the end of this month. A guide to the changes can be accessed here: /landlords-guide-pra-portfolio-underwriting-changes/

Council Warns Rogue Landlords: “We’re Coming for You”

Published On: September 21, 2017 at 9:12 am

Author: Em Morley

Categories: Landlord News

Tags: landlord licensing,licence,London,rogue landlords

Brent Council has once again vowed to clamp down on rogue landlords in the local area, after 35 men were found living in a three-bedroom house in north London.

The men had been cramped into every room, other than the bathrooms, with bedding. Even the kitchen had a sleeping area, while another mattress was found laid out under a canopy in the back garden, with no protection against the night temperatures.

Council Warns Rogue Landlords: “We’re Coming for You”

The discovery was made on Winchester Avenue, Queensbury, at around 6am on Tuesday, when Brent Council enforcement officers and police officers entered the property after neighbours complained about overcrowding, anti-social behaviour and fly-tipping.

An investigation is under way to track down the landlord of the unlicensed House in Multiple Occupation (HMO).

Councillor Harbi Farah, the Cabinet Member for Housing and Welfare Reform at Brent Council, says: “Rogue landlords make their money by exploiting people who can least afford it – it’s a shameful practice and this is an especially shocking example.

“Any landlord treating their tenants unfairly should be in notice – we’re coming for you.”

Last week, Brent Council voted in new civil penalty measures to find rogue landlords up to £30,000 for breaching housing laws, such as letting unlicensed properties.

Meanwhile, Hackney Council is planning to introduce a selective licensing scheme in an effort to crack down on rogue landlords in the local area, as well as reduce anti-social behaviour in private rental properties.

The council’s consultation on the proposed scheme in Brownswood, Cazenove and Stoke Newington wards will run until 3^rd December 2017.

Hackney Council is consulting all residents, landlords and businesses living and operating in the borough on proposals to introduce two new licensing schemes for private rental housing in the borough.

The council is proposing an additional licensing scheme for all Houses in Multiple Occupation (HMOs) and a selective licensing scheme for all private rental properties.

The full draft proposal can be accessed here: https://consultation.hackney.gov.uk/communications-and-consultation/private-rented-sector-licensing-consultation/user_uploads/private-sector-licensing—full-draft-proposals.pdf

This week, Councillor Sem Moema launched a consultation on new powers designed to protect the borough’s tenants from living in “appalling conditions”.

Under the plans, landlords in Stoke Newington and Clapton, where the council reports that 20% of renters face issues like dangerous boilers, exposed wiring or vermin infestations, would require a licence from the town hall to ensure that their properties are safe and well-maintained.

Councillor Moema explains: “One in three homes in Hackney is privately rented, and too many renters face a raw deal of spiralling rents and a poor service from a minority of rogue landlords.

“Our research has exposed that, in some parts of our borough, tenants face appalling conditions that put their safety at risk despite paying an average of £1,820 a month in rent for a standard two-bedroom home.”

She insists: “This is simply unacceptable. We believe that introducing these licensing measures will give us the powers we need to tackle landlords who exploit renters and make sure their homes are safe, secure and well-maintained.

“But, crucially, we want as many renters, landlords and residents who experience these issues first-hand to respond to this consultation and give their views on our proposals.”

What are your thoughts on these crack downs?