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RLA Launches its London Mayoral Manifesto for the Private Rental Sector

Published On: April 12, 2016 at 8:55 am

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Categories: Landlord News

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The Residential Landlords Association (RLA) has launched its London Mayoral Manifesto, setting out its hopes for the private rental sector under the new mayor of London.

The Landlords4London document details what the RLA believes to be priorities for the successful London mayoral candidate in regard to supporting the private rental sector.

RLA Launches its London Mayoral Manifesto for the Private Rental Sector

RLA Launches its London Mayoral Manifesto for the Private Rental Sector

The RLA is discouraging rent controls, encouraging better enforcement of current legislation, boosting supply, introducing flexible tenancies and addressing the buy-to-leave trend.

The organisation will be following the campaign trail across London ahead of the mayoral election on 5th May. It will lobby the candidates on the issues contained within the document.

It opposes rent controls on the basis that they will limit the supply and quality of private rental housing, and is encouraging the successful candidate to look at enforcing existing legislation more effectively to tackle rogue landlords, rather than introducing new regulations.

The RLA also wants the new mayor to commit to encouraging investment in the private rental sector, as well as introducing flexible tenancies and cracking down on the buy-to-leave trend, which puts added strain on London’s housing market.

The Chairman of the RLA, Alan Ward, says: “The private rented sector is a vital provider of housing in the capital, with a huge shortfall in the social housing offer and spiralling house prices.

“After the hammering buy-to-let landlords have taken at the hands of the Chancellor, we want the successful mayoral candidate to recognise the essential role these landlords play in tackling London’s housing crisis.”1 

The RLA’s full manifesto document can be found here: http://www.rla.org.uk/landlord/lobbying/elections/london-mayoral-election-2016.shtml

We will continue to keep you updated with all the latest information for landlords and changes to the London housing market.

1 http://news.rla.org.uk/rla-launches-lonection-manifesto/

 

 

The Following Areas Have Now Moved Onto Universal Credit

Published On: April 11, 2016 at 2:47 pm

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Categories: Finance News

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Universal Credit is almost at the end of its rollout across the UK, with the following areas now subject to the new welfare system.

The Government’s new benefit scheme sees six payouts combined into one monthly payment for claimants. Universal Credit includes housing benefit, which means if you have tenants in receipt of the payment, they may have moved onto the new system.

The Following Areas Have Now Moved Onto Universal Credit

The Following Areas Have Now Moved Onto Universal Credit

We have been reporting on the areas that now use Universal Credit since the start of the year. For the previous postcode areas, see our most recent piece: /many-housing-benefit-tenants-wales-now-subject-universal-credit/

Another significant change that Universal Credit enforces is that tenants will now be paid housing benefit directly, rather than it automatically going to their landlord. If you have housing benefit tenants, be aware that they will now be responsible for paying the benefit to you.

If you are worried about your tenants falling into rent arrears during the change, you can protect your investment with the ultimate peace of mind cover – rent guarantee insurance. This will ensure that you still get paid, even if the tenant defaults on the rent.

As of 28th March, the following parts of the country are now on Universal Credit:

  • E1 6, E2, E5, E8, E9 and E20 3 in Eastern London.
  • EC1V 1, EC1V 9, EC2A 2, EC2A 3, EC2A 4, EC2M 1 and EC2M 2 in Eastern Central London.
  • GU34 4 and GU34 5 of Guildford.
  • N1 3, N14, N1 5, N1 6, N1 7, N4, N5 2, N15 6 and N16 in Northern London.
  • PO1, PO2, PO3, PO4, PO5, PO6, PO7, PO8, PO9, PO10 7, PO11, PO12, PO13, PO14, PO15, PO16 and PO17 of Portsmouth.
  • RG7 2, RG7 3, RG7 4, RG7 8, RG14 9, RG19 8, RG20 0, RG20 4, RG20 5, RG20 9, RG21, RG22, RG23, RG24, RG25, RG26, RG27, RG28 and RG29 of Reading.
  • SO21 3, SO24 9, SO31 and SO32 3 in Southampton.
  • SP11 0 and SP11 6 in Salisbury.

From today, housing benefit tenants in the following postcode areas of Scotland will receive Universal Credit:

  • DD6 in Dundee.
  • FK10 3 and FK10 4 in Falkirk.
  • KY1, KY2, KY3, KY4 8, KY4 9, KY5 8, KY5 9, KY6 1, KY6 2, KY7, KY8, KY9, KY10, KY11, KY12, KY15 and KY16 of Kirkcaldy.

The scheme has just two further rollouts across the country before all claimants are on the system. Look out for which areas are subject to Universal Credit next week.

The DPS and Tenant Shop Partnership Will Help Letting Agents and Tenants

Published On: April 11, 2016 at 12:31 pm

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The Deposit Protection Service (DPS) has announced a partnership with Tenant Shop to help make life easier for letting agents and save tenants money.

The DPS and Tenant Shop Partnership Will Help Letting Agents and Tenants

The DPS and Tenant Shop Partnership Will Help Letting Agents and Tenants

Tenant Shop provides agents with a notification and management software platform that aims to reduce their workload and paperwork substantially.

The system is also designed to make moving home simpler for tenants by finding them the best deals on insurance, TV and broadband, and energy, by switching them to their chosen package.

Tenant Shop also notifies local councils and utility suppliers of new and vacating tenants, preventing abandoned bills.

The DPS, the UK’s largest tenancy deposit protection scheme, is committed to keeping deposits safe over the course of a tenancy and ensuring the money goes back to the worthy party at the end.

The DPS’s Managing Director, Julian Foster, says: “We’re delighted to be working with Tenant Shop to explore ways in which we can make life for landlords and letting agents easier – as well as saving tenants money.

“Alongside protecting deposits, the DPS is keen to work with other key providers across the industry to raise standards and improve the experiences of our users.”

Glenn Seddington, the Managing Director of Tenant Shop, adds: “We are thrilled at the prospect of working with the DPS, with whom we share a common goal of providing letting agents with the tools to make their lives easier.

“By working together with the DPS, we can reach a wider audience and promote a service that is designed to improve the efficiency of our letting agent partners and which also enhances the industry image by ensuring that tenants are able to secure the most suitable, cost-effective energy, media and insurance products.”

We will continue to provide landlords, letting agents and tenants with updates on any changes to the private rental sector and property industry.

 

 

 

 

 

 

 

 

Will new regulations slow buy-to-let market?

Published On: April 11, 2016 at 11:51 am

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Categories: Finance News

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Over the past year, residential landlords have been subjected to a whole host of new regulations. Alterations to mortgage interest tax relief, an increase in stamp duty surcharges on buy-to-let purchases and changes to the wear and tear allowance are just some of the initiatives aimed at cooling the market.

Should the Bank of England press ahead with its plans for tighter mortgage lending criteria, this will be a further blow to buy-to-let landlords.

Intentions

The Bank of England believes the stricter lending criteria will cut the amount of buy-to-let borrowing by between 10%-20% in the next three years. Until presently, landlords have needed between around a 25% deposit to secure a buy-to-let mortgage.

Changes proposed by the Prudential Regulation Authority-the Bank of England’s regulatory sector-has called for lenders to make more stringent checks on landlords. This is to ensure that they can afford the mortgage repayments on their property. In addition, it has called for banks to test if landlords would still be able to afford monthly payments should interest rates rise.

Will new regulations slow buy-to-let market?

Will new regulations slow buy-to-let market?

Slowing Tactics

Jane Morris, Managing Director of PropertyLetByUs, observed, ‘this new lending criteria is a move at slowing down the booming buy-to-let market, which has seen a rush of landlords purchasing property to beat the stamp duty rise, which comes into effect this month. We have seen a sharp increase in the number of landlords placing properties with us over the last six months and since January, landlords sign ups have increased by 50-60%.’[1]

‘However, the market is very likely to slow down over the next few months, with Britain’s 1.8million landlords now facing the brunt of the increased taxes and new mortgage restrictions. The buy-to-let market provides the UK with essential housing for over 2.5million tenants and has been unjustly targeted by the government,’ Morris continued.[1]

Concluding, Morris noted, ‘landlords will need to find ways to protect their profits and income.’ She feels it is inevitable, ‘we will see rent rises and many landlords will be reviewing their fixed costs.’[1]

Finally, she said, ‘it is certainly a good time to review lettings costs, as some landlords could make significant savings on their letting agent finder and fully managed fees.’[1]

[1] http://www.propertyreporter.co.uk/finance/is-btl-lending-getting-tougher.html

CEO of lettings agency in scathing attack on the government

Published On: April 11, 2016 at 10:54 am

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Categories: Property News

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A chief executive officer of a leading lettings agency has slammed the Government’s performance for its first year in office.

Writing in the property magazine Estates Gazette, Ian Wilson, chief executive of Martin & Co, gave David Cameron just two out of ten in a ‘scorecard exercise.’

Performance

Mr Wilson’s analysis focused on how policies implemented or announced in the last twelve months have impacted on the residential property market.

In the last year, cuts in landlords’ mortgage interest tax, the rises in stamp duty on buy-to-let transactions, Right to Rent immigration checks and alterations to Wear and Tear allowance have all had impacts on the sector.

Wilson is particularly damning in his assessment, noting, ‘the Conservative government has failed the private rental sector. Unintended consequences of the reforms are emerging, with residential landlords fighting to complete on properties before April, pushing first time buyers aside. House prices are artificially high in the UK because of restrictions on land use dating back to World War 2.’[1]

CEO of lettings agency in scathing attack on the government

CEO of lettings agency in scathing attack on the government

Solutions

Continuing, Wilson said, ‘the private rental sector has been superb in providing housing solutions for those unable to buy a home and as such, the sector has doubled in the last 20 years, organically and with no government support. Individuals have invested in the buy-to-let sector out of their own pocket, made feasible by allowing the interest on a Buy to Let loan to be offset as a business expense.’[1]

‘The changes the Conservative are imposing have not only caught people off guard, undermining confidence in a highly valuable sector of the market, but have deliberately penalised small time landlords, the stalwarts of the sector. Meanwhile corporate organisations, who have offered little in the way of housing solutions, retain in all tax benefits. The government needs to think hard before using a blunt instrument in a fragile housing market as it could have far longer term implications,’ Wilson added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/4/agency-chief-gives-cameron-2-out-of-10-for-lettings-sector-performance

 

Making Landlord Admin Quicker for You and Your Tenants

Published On: April 11, 2016 at 9:37 am

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Categories: Landlord News

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With so many changes affecting the buy-to-let sector and a heap of regulations to adhere to, wouldn’t making landlord admin that bit quicker be more effective for your lettings business?

While there are certain circumstances where you must provide a paper copy (for example, with section 21 notices), there are instances when mounds of paperwork can be avoided.

If you’re looking to take on new tenants and will soon be issuing a tenancy agreement, wouldn’t it be easier to have documents returned within minutes without having to organise a face-to-face meeting with tenants and print off copies of contracts?

Making Landlord Admin Quicker for You and Your Tenants

Making Landlord Admin Quicker for You and Your Tenants

Now, there is an online application that could help you make the lettings process more time and cost effective.

Signable is an electronic signature application, which already helps many UK landlords save time, money and become more secure. Signable allows documents to be signed on any device, meaning that tenancy agreements can be signed securely on the move at any time of day. This way, tenants can get everything back to you quickly and efficiently – Signable reports that documents are returned under 30 minutes on average.

Electronic signatures, or e-signatures, allow someone to agree the contents of an electronic message, such as an emailed copy of a tenancy agreement. With Signable, all documents are securely stored.

And don’t fear – Signable complies with the latest electronic signature laws in the UK and EU. Under the Electronic Communications Act 2000, documents signed electronically are just as legally binding than paper-based signatures.

Signable can be used for a variety of documents, including tenancy agreements and inventories. They can be created, signed and filed electronically, all from the Signable app, making the whole process easy for you and your tenants.

The firm’s Rob Bluck explains: “Along with saving time and money, landlords who use Signable are able to make the complete document-signing process easier for tenants.”

Landlords are currently using the service for the following: AST documents, application forms, guarantor forms, holding fee forms, direct debit/payment forms, deposit forms and feedback forms.

If you are an HMO landlord, it is also good to know that you can have various tenants sign the same document using Signable.

If you’d like to find out about more ways to save time and money, visit https://www.signable.co.uk