Written By Em

Em Morley

Investec cuts buy-to-let mortgage rates by 1%

Published On: September 8, 2016 at 10:02 am

Tags: buy to let mortgages,Buy-to-Let,mortgage lenders,mortgages

Investec Private Bank has moved to introduce a new range of loan-to-value (LTV) bands across its buy-to-let mortgage product range. Borrowing rates have been slashed by up to 1%.

The lenders says its new buy-to-let mortgage rates will begin at 2.5%, plus three-month Libor at 50% LTV. In addition, Investec is also launching a 60% LTV from 2.75% and a 70% LTV at 3.10%.

Services

Investec provides both buy-to-let and residential mortgages to people looking to borrow between £250,000 and £10m, with a minimum annual income of £300,000 and assets totalling at least £3m.

Peter Izard, business development manager at Investec Private Banking, noted, ‘despite recent tax changes, the buy-to-let market remains an attractive proposition for investors. We’re delighted to be announcing these significant rate cuts today, which will be a real boost for landlords seeking larger loans.’[1]

Investec cuts buy-to-let mortgage rates by 1%

Alterations

The Bank is one in a number of lenders to cut buy-to-let mortgage rates in recent days, with competition fierce in the market.

Santander cut rates by up to 0.25% on some fixed products, while Virgin Money’s reductions have seen buy-to-let rates at 75% start from 2.19%. Natwest has reduced its standard buy-to-let two year fixed range for both purchase and remortgage by between 19-23 bps. Accord Buy-to-Let also announced plans to expand into the consumer buy-to-let market in the coming months.

Chris Maggs, Accord Buy-to-Let’s commercial manager, noted, ‘despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/investec-slash-buy-to-let-mortgage-rates-by-up-to-1

Only One in Five Landlords Expected to Pay More Tax Under Section 24

Published On: September 8, 2016 at 9:37 am

Author: Em Morley

Categories: Landlord News

Tags: Finance Act 2015,mortgage interest tax relief,private landlords,section 24

Only one in five landlords are expected to pay more tax when new section 24 rules, under the Finance Act 2015, are implemented from 2017.

Only One in Five Landlords Expected to Pay More Tax Under Section 24

Yesterday, Jane Ellison, the Financial Secretary to the Treasury, announced in the House of Commons that just 20% of private landlords will be forced to pay more tax when the law, which restricts the amount of tax relief that landlords can claim on their mortgage interest payments, comes in.

Ellison claimed that she does not expect the changes “to have a large impact on either house prices or rent levels, owing to the small overall proportion of the housing market that is affected”. She adds that the Office for Budget Responsibility “has endorsed that assessment”.

Ellison was responding to proposals for another review of the impact of section 24 on affordable housing. She believes that this “is unnecessary” as “the changes made by section 24 are being implemented in a gradual and proportionate way”.

From 6^th April 2017, the amount of income tax relief that landlords can claim on residential property finance costs will be reduced to the basic rate of tax – 20%.

The changes will be implemented gradually over a four-year period, ending in 2020. The tax rate will firstly be reduced by 25%, then 50%, then 75%, then 100% at the end of the rollout.

The Government has put together a guide on who the change will affect and how it will be introduced: /government-guide-tax-relief-changes-residential-landlords/

A recent survey by SellingUp.com found that the one change that is likely to discourage landlords from investing further in the property market is the mortgage interest tax relief cut.

It is also a concern that the tax restriction will force landlords to put their rents up, as they face dwindling profits.

How will the forthcoming tax changes affect your position in the buy-to-let sector? And do you believe that the Government should be reviewing section 24’s impact on affordable housing?

Property Redress Scheme is Forced to Expel Rogue Letting Agent

Published On: September 8, 2016 at 9:07 am

Author: Em Morley

Categories: Property News

Tags: fraud,landlords,letting agents,Property Redress Scheme,rogue letting agents

Property Redress Scheme is Forced to Expel Rogue Letting Agent

The Property Redress Scheme (PRS) has been forced to expel a rogue letting agent after it failed to pay money owed to its clients.

Despite signing up its 5,000^th member last month, the PRS has now decided that Carter Stones Limited, of 1A Connaught Road, Ilford, must be expelled.

The PRS reports that the letting agent failed to make awards totalling £15,406 to four complainants.

After receiving a number of complaints from both landlords and tenants, the PRS made the decision to expel Carter Stones. All of the complaints received were similar in nature, relating to delays and/or failure in paying money and poor or non-existent service.

Sean Hooker, of the PRS, comments: “Failure to pay an award, however large or small, is a serious breach of our terms of reference. Agents must not assume that the complaint will go away if they remain silent and refuse to engage with the scheme.”

Evictions specialist Paul Shamplina, who is also a member of the advisory panel of the PRS, also says: “Having been instructed by complainants who have not had their complaints resolved, I was shocked to discover Carter Stones are still trading out of the same premises with a slightly different name – Carter Stones Practical Living. I will shortly be undertaking a campaign to raise awareness of the issue of enforcement action against rogue agents.”

One landlord that previously dealt with Carter Stones and filed a complaint against them with the PRS feels gratified that the agent has been expelled: “They have made a complete mess of the management of my property, purposefully, it seems, illegally subletting, not registering rent security deposits, and defrauding me out of £8,928 rent, £745 fees/charges and security deposit.”

Have you ever dealt with a rogue letting agent? Remember to make complaints to any scheme you use.

Rogue landlord couple prosecuted for unlicensed property

Published On: September 7, 2016 at 2:49 pm

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,rogue landlords,rogues

A rogue landlord couple from north Wembley have been fined heavily for failing to make sure that the property that they had rented and subsequently sublet was licenced.

Daniel and Alima Borzos were told to pay a total of £10,334 by Willesden Magistrates Court.

Letting

The Borzos’ rented the four-bedroom property from a letting agency, after telling staff that they would live in the property with a small child. Subsequently, they sublet the property to another group of other tenants.

Brent enforcement officers raided the property in April. Upon arrival, they discovered a total of 16 mattresses within the home. It is believed that there were more than 20 people in residence .

Willesden Magistrates Court found the couple guilty of failing to provide evidence of their evidency. Mrs Borzos was fined £7,000 and Mr Borzos £2,000. In addition, each defendant was told to pay costs of £497 and a victim surcharge of £170. Both how now left the property.

Rogue landlord couple prosecuted for unlicensed property

Improving standards

The double prosecution means that a total of 35 rogue landlords have been convicted since January 2016. The prosecutions have come about as a result of a licensing scheme aimed at improving standards in the private rental sector in Brent.

Councillor Harbi Farah, Brent’s Cabinet Member for Housing, noted, ‘this case once again demonstrates the importance of Brent’s private sector licensing scheme. While there are many good landlords in Brent who have licensed their properties, there’s still a minority who haven’t, who are operating illegally and exploiting people for profit. We will always push for the strongest penalties against unlicensed properties in Brent, so we’re pleased to see rogue landlords like the Borzos’ receive a substantial punishment.’[1]

[1] http://www.propertyreporter.co.uk/landlords/unlicensed-landlords-hit-with-heavy-fines.html

Overseas Property Investors Now Competing with First Time Buyers in London

Published On: September 7, 2016 at 10:51 am

Author: Em Morley

Categories: Property News

Tags: Brexit,first time buyers,London,Overseas investors,property investors,property market

Overseas property investors, as well as the country’s own landlords, are now competing with first time buyers for affordable properties in London.

Overseas Property Investors Now Competing with First Time Buyers in London

A recent report from the BBC claims that the fall of the pound following June’s EU referendum has triggered a spending spree from foreign investors in London’s property market.

However, it warns that overseas property investors are no longer just targeting prime central locations.

Due to Stamp Duty hikes for properties worth over £1.5m, property investors are now seeking cheaper properties in the capital, which is putting more pressure on struggling first time buyers.

With the new Prime Minister, Theresa May, insisting that “Brexit means Brexit”, the BBC has investigated what the future holds for London. It also questions whether first time buyers, many of which are currently priced out of the market, will benefit from the country’s decision to leave the EU.

In addition, the Inside Out London programme also looks into whether the capital’s recent spike in race-hate crime is driving immigrants out of the country, and what an independent state of London could look like.

The full show, which was broadcast on BBC One London on Monday 5^th September, is available on the iPlayer here: http://www.bbc.co.uk/iplayer/episode/b07qbfcx/inside-out-london-05092016

The CEO of the HomeOwners Alliance, Paula Higgins, responds to the BBC’s revelations: “It’s certainly a concern that as a result of Brexit, homebuyers are sitting on their hands while foreign investors buy up more affordable parts of London. The Government needs to do all it can to create a stable, functioning housing market. That means continuing to build more homes, but alongside reassuring people about the Brexit process.”

While the media has been “plagued” by negative reports on the effect of Brexit on the property market, recent figures from Halifax suggest that a recent slowdown in house price growth was caused by an ordinary seasonal adjustment, not the Brexit.

Has your property market activity been affected by the vote to leave the EU?

Rental rises continue through August

Published On: September 7, 2016 at 10:13 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,buy-to-let landlords,landlords,rental market,rental rises,tenants

New figures from the HomeLet Rental Index suggest that the rental market has remained steady in the face of economic, political and legislative changes.

The Index has recently been redesigned in order to include additional data on new tenancies, alongside property type and location. Results show that rents agreed on new tenancy agreements increased in most areas during the three months to August, albeit at a moderate rate.

New tenancy costs

According to the data, the average price of a new tenancy in the private rental sector rose by 3.1% in the period to hit £913pcm. This was a rise from the £885pcm recorded in August 2015.

August 2016’s HomeLetRental Index shows that rents have risen in eleven out of twelve regions of the UK year-on-year. The North East was the only region to see a fall in annual rents, with prices down by 1.6%.

While rents continue to rise, they do so at a more contained pace. The 3.1% increase seen during August is comparable to rises of between 3.5% and 3.8% seen over the previous four months. The largest slowdown was evident in London and the South East.

Results by region can be seen below:

Region	Average rent in August 2016	Average rent in July 2016	Average rent in August 2015	Monthly variation	Annual variation
East of England	£915	£911	£864	0.4%	5.8%
Wales	£654	£649	£622	0.8%	5.2%
North West	£699	£693	£670	0.8%	4.3%
West Midlands	£674	£658	£652	2.3%	3.3%
South East	£1,034	£1,027	£1,001	0.7%	3.3%
Northern Ireland	£627	£618	£610	1.4%	2.8%
Greater London	£1,497	£1,492	£1,457	0.4%	2.7%
South West	£799	£789	£787	1.3%	1.6%
Yorkshire & Humberside	£640	£637	£632	0.5%	1.3%
Scotland	£629	£643	£622	-2.1%	1.1%
East Midlands	£621	£618	£615	0.5%	1.0%
North East	£535	£543	£543	-1.6%	-1.6%
UK	£913	£907	£885	0.6%	3.1%
Notes:	Based on new tenancies in August 2016	Based on new tenancies in July 2016	Based on new tenancies in August 2015	Comparison of average rent in August 2016 and July 2016	Comparison of average rent in August 2016 and August 201

[1]

Rental rises continue through August

Finding a balance

Martin Totty, chief executive of Barbon Insurance Group, HomeLet’s parent company, observed: ‘The latest Index reflects a market in which landlords are engaged in a delicate balancing act: they’re aware of tenants’ concerns about affordability while also conscious of the need to achieve target yields. August’s figures suggest that rents are continuing to rise at a sustainable pace-ahead of price inflation, but well below house price increases, which were running at close to 6% according to the most recent data.’[1]

‘In the medium to longer term, the fundamental driver of rents will be the balance between demand and supply for rented property. We expect demand in the private rental sector to continue to grow, in line with demographic changes such as population growth and as affordability concerns remain in the house purchase market, so it is important that we see efforts to support supply,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/rents-continue-to-rise-in-august