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Em Morley

A burdensome approach to landlord regulation is rejected

Published On: August 3, 2016 at 10:04 am

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The Government is to relent on forcing landlords of leasehold properties to have to be a member of a redress scheme. This is despite increasing pressure from conveyancers looking for a reform of leasehold legislation.

There have been calls from The Conveyancing Association for existing and incoming leaseholders to be made to join a redress system with consumer rights, similar to one of the three existing property ombudsman schemes.

Redress Schemes

Baroness Hayter of Kentish Town brought up the issue of redress schemes for landlords of leasehold properties during a Department for Communities and Local Government debate last week.

Hayter enquired if the Government was thinking of extending the requirements of the Consumers, Estate Agents and Redress Act 2007 and the Enterprise and Regulatory Reform Act 2013, in order to require landlords of leasehold properties to be permitted to belong to a redress scheme.

However, minister Lord Bourne noted that the Government, ‘is not persuaded that more burdensome approaches to regulate landlords would be effective.’

A burdensome approach to landlord regulation is rejected

A burdensome approach to landlord regulation is rejected

Tribunal

Mr Bourne said leaseholders in dispute with a landlord could apply to the first-tier tribunal (property chamber) in England and the Leasehold Valuation Tribunal in Wales to obtain redress.

He continued by saying, ‘the government is extending leaseholders’ access to redress by including provisions in the Housing and Planning Act 2016 that will address an irregularity concerning the inability of courts and tribunals to restrict recovery of a landlord’s legal costs from leaseholders as administrative charges, where they consider a restriction on recovery to be just and equitable. The Government plans to introduce related secondary legislation by summer 2017.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/burdensome-approaches-to-regulate-landlords-of-leasehold-homes-would-be-ineffective

 

 

RLA slams report declaring PRS unfit for purpose

The Residential Landlords Association (RLA) has moved to defend the private rental sector, in the aftermath of a scathing report from the Resolution Foundation.

This report analysed the latest housing trends in the UK and concluded that the private rental sector is not fit for purpose. According to the Resolution Foundation, private sector tenants are much more likely to face insecurities as a result of shorter-term tenancy agreements.

Overhaul

In response to the report, the RLA said that the sector is certainly not in need of a radical overhaul. Instead, the RLA believes that the private rental sector provides a vital service to an ever-growing number of tenants.

The most recent English Housing Survey revealed that private sector tenants spend an average of four years in their current rental property. This is a slight rise from the 3.7 years recorded five years ago.

What’s more, the survey found that private sector tenants are more satisfied with their accommodation than those in the social rented sector.

RLA slams report declaring PRS unfit for purpose

RLA slams report declaring PRS unfit for purpose

Changes

Rather than a substantial overhaul, the one change that the RLA feels is necessary for the sector is the way that buy-to-let landlords are currently taxed. The RLA warns that recent changes implemented by the Government on mortgage interest tax relief for landlords will see investors passing on these further costs to their tenants.

Alan Ward, chairman of the Residential Landlords Association, noted, ‘the evidence shows that tenants in the private rented sector are staying in their homes for longer. No landlord ever wants to lose a well behaved tenant who pays their rent on time.’[1]

Alterations to mortgage interest tax relief for buy-to-let landlords are scheduled to come into force in 2017.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/the-prs-is-fit-for-purpose-despite-claims-to-the-contrary-says-rla

 

 

Fake letting agent put behind bars for deceit

Published On: August 2, 2016 at 1:23 pm

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A man has been put behind bars after falsely posing as a letting agent to scam both landlords and tenants.

Reporting service Court News said that Adam Coote started his deceit with Andrew Rickard and Sahila Kauser in 2012. Coote had only just been released from prison for a similar offence.

Fake

Mr Coote, also know as Elliott Wilson, used fake agency names, such as Belgravia Property Group, Mayfair Residential and Park Lane Residential to offer fake properties in London, Bristol and Birmingham.

Coote was jailed for 28 months at Southwark Crown Court. Mr Rickard had been sentenced for 18 months imprisonment, while Kauser had been sentenced for the same period, suspended for 2 years.

Previously, Coote had been jailed for four years in August 2009 for similar scams in Manchester and Liverpool. His most potent scam was to take six months rent from the tenant, only for the ‘agent’ to disappear with their money.

Court News suggests that Coote used the profits from his deceit in order to buy an apartment with a £2,000 fridge, a chauffeur driven Range Rover and trips to fancy restaurants.

Fake letting agent put behind bars for deceit

Fake letting agent put behind bars for deceit

Fraud

Mr Warwick Tatford, prosecuting, said, ‘the defendants were able to secure access to the properties and keys and a number of prospective tenants would then be shown around the properties.’[1]

Would-be tenants were told to give Coote and his associates deposits, to find that they had failed credit checks. The fraudsters than informed the tenants that their landlord was happy for them to move in, if they paid the first six weeks rent upfront.

Tatford continued by saying, ‘prospective tenants were provided with access keys of the properties and when they attended to move into the property they would find there was already a tenant in place who had also signed a tenancy with the company.’[1]

The fraudsters made a total of £26,585 from their deceit, which is likely to be recouped in compensation and confiscation proceedings.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/8/fake-letting-agent-jailed-after-swindling-landlords-and-tenants

Buy-to-let landlords to be hit with ‘green tax’

Published On: August 2, 2016 at 11:36 am

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A new report from the Telegraph has suggested that around 330,000 buy-to-let landlords could be hit with a ‘green tax’ of up to £5,000.

The tax will be designed for landlords to make their property more energy efficient. The Telegraph states that many landlord will face upfront costs for features such as cavity wall insulation and new boilers from 2018.

Green Deal

Previously, it was suggested that landlords would be able to apply for loans from the Green Deal scheme, in order to make required improvements. These bills would then by repaid by tenants, who would benefit from lower costs.

However, the new Department for Business, Energy and Industrial Strategy is now suggesting that homeowners provide this money.

Buy-to-let landlords who own property from the Victorian and Edwardian eras are set to be most affected by the tax. Typically, these properties are less energy efficient, in comparison to newer homes.

Buy-to-let landlords to be hit with 'green tax'

Buy-to-let landlords to be hit with ‘green tax’

Harsh

Richard Jones, policy advisor at the Residential Landlords Association, noted, ‘unless they make funding available, landlords will be forced to pass these costs on to tenants in the form of higher rents. It could also make being a buy-to-let landlord prohibitive. They could struggle to find such a large amount of money upfront.’[1]

‘Landlords have been harshly treated. This is an extra stealth tax on top of all the other measures that threaten the finances of the sector,’ he added.[1]

From April 2018, buy-to-let investors are legally permitted to raise the energy efficiency rating of their rental properties to at least a Band E. This means that there are presently around 330,000 residential properties with band F and G property that require work to be done.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/7/landlords-set-to-be-hit-with-a-hefty-green-tax

A Landlord’s Guide to Home Security

Published On: August 2, 2016 at 11:23 am

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Although landlords leave their property in the hands of their tenants for long periods, there are still measures that you can take to increase home security.

To help your tenants keep your property safe and secure, you can take simple steps to deter intruders. Sainsbury’s Bank has put together a useful guide to home security, which you could also give to tenants to protect the property while they are living there.

Do you know about the different types of burglar alarm? Do you use a BSI Kitemark-approved lock? Do your tenants know how to deter intruders while they are on holiday?

Through taking simple, small steps, you can ensure that your property is more secure. Follow these handy tips and sit back knowing that your property is as safe as it can be:

Check that locks are fully secure 

At the beginning of each tenancy, check the locks to ensure that they’re safe and secure. You may also decide that you need to install new or different locks to ensure that your property is safe.

  • Mortice locks – A mortice lock fits into the door itself. Five-lever mortice locks are recommended by Secured by Design, which is owned by the Association of Chief Police Officers.
  • Rim locks – These locks, sometimes known as Yale locks, are attached to the back of the door and lock automatically.
  • Multi-point locks – Multi-point locks are held closed by two or more hooks and bolds. They can be harder for burglars to manipulate.
  • Additional security bolts – These bolts make it difficult for doors to be forced open. They’re a popular choice for patio doors.

If your property has gates, a shed and a garage, you must also ensure that these have secure locks on them too, as they are prime targets for thieves.

A Landlord's Guide to Home Security

A Landlord’s Guide to Home Security

Install an alarm

Alarm systems are very effective at deterring burglars. There are many different models available, but the Metropolitan Police recommends a system that meets British Standard 4737/BS EN 50131.

  • Audible only – These alarms set off a loud and unpleasant alarm, which is designed to scare burglars and notify your neighbours.
  • Automatic dialling alarms – An automatic dialling alarm sets of a noise and makes an automated call to the police.
  • Remote signalling alarms – This type of alarm sets off an alarm and sends a message to a monitoring office, which then contacts the police.

Fit security lights 

Motion-sensor security lights can also be very effective. A bright light makes it easy to see when someone approaches your property and can make burglars reconsider their break-in attempt.

These lights are particularly useful in high-risk areas, such as:

  • Parts of the property that aren’t overlooked by neighbours or visible from the road.
  • Patio doors.
  • Flat roofs.
  • Back doors.

Ensure the property is insured

A good Landlord Insurance policy will protect your property from theft or attempted theft. This cover is included as standard in the Just Landlords policy, which has been rated 5-star by Defaqto. You should also advise tenants to insure their belongings against theft.

Keep keys out of sight

Remind your tenants to keep their keys out of sight, as keys or other valuables can be very tempting to burglars when left by a door or window. It is also advised that tenants do not hide spare keys in common spots, such as under a doormat, as these are the first places a burglar will look.

Take protective steps when going on holiday 

If you know that your tenants will be away on holiday, there are measures that both parties can take to look after the property while it is empty. If they are away for more than a few days, try to arrange the following:

  • If you live near the property or your tenants have a friendly neighbour, have a car parked on the drive at all times.
  • Ask your tenants to set up a timer for lights and the radio during the evenings.
  • Ask your tenants if you can make regular inspections while they are away to ensure the property is safe.
  • If it’s summer, go to the property to cut the grass or have your tenants ask a neighbour.

Empty homes are a prime target for burglars, but you can deter theft by taking preventative measures and asking your tenants to put certain actions in place.

Don’t risk your property suffering damage by theft with this helpful advice and visual guide from https://www.sainsburysbank.co.uk/money-matters/home-security

How have London’s Olympic boroughs faired post 2012?

Published On: August 2, 2016 at 9:46 am

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With the Olympics in Rio just days away, a residential property crowdfunding platform has looked at how property prices in London have changed since the Games 4 years ago.

According to Property Partner, the six Olympic boroughs used during the London Games have outperformed the majority of others local authority areas in the capital.

Investment

The investigation found that major financial investment has driven property prices up by an average of 64% in the six boroughs during the period. Hackney, Newham, Barking and Dagenham, Greenwich, Tower Hamlets and Waltham Forest performed better than the still healthy 52.8% house price rises recorded in the capital’s 32 boroughs.

Waltham Forest received the gold medal, recording house price growth of 76% in the last four years. Hackney took the bronze, with growth of 66.9%, while Newham was squeezed out of the medal positions with 62.6%.

Non-Olympic borough Lewisham took the silver medal with house price growth of 67.9%.

How have London's Olympic boroughs faired post 2012?

How have London’s Olympic boroughs faired post 2012?

Legacy

Dan Gandesha, CEO of Property Partner, said, ‘London 2012 was the catalyst for a flood of investment into the capital, much of which was injected into regenerating some of the capital’s most disadvantaged boroughs. The economic legacy of the Games-supporting new jobs and skills, encouraging trade, inward investment, tourism and improved transport links-has meant a corresponding rise in house prices in the six host boroughs. The economic, social and environmental gap between these boroughs and the rest of London is closing.’[1]

‘Over the next few years, the capital will further benefit from significantly infrastructure projects-particuarly Crossrail where areas that were relatively inaccessible will suddenly be on London’s doorstep. In turn, like the Olympic effect, house price around Crossrail’s 40 stations are continuing to see an upward trend despite post-Brexit uncertainty,’ he continued.[1]

Concluding, Gandesha noted, ‘The reality is, no one can say for sure what will happen just now. But the fundamentals of the capital’s housing market are self-evident – demand far outstrips supply, which is further exacerbated by population growth and low borrowing costs. Moreover, the Bank of England is likely to reduce base rates even further in the very near future.’[1]

[1] http://www.propertyreporter.co.uk/property/olympic-boroughs-continue-to-outperform-other-areas.html