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Em Morley

Redbridge Landlord Licensing Scheme Refused

Published On: December 23, 2015 at 2:43 pm

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A proposal to introduce a borough-wide landlord licensing scheme in Redbridge, east London has been refused by the Secretary of State.

Redbridge Landlord Licensing Scheme Refused

Redbridge Landlord Licensing Scheme Refused

Redbridge Council says it is “extremely disappointed” at the decision to deny the implementation of the scheme.

Over 1,700 people were surveyed during the consultation period, of which 463 were landlords or letting agents. Many tenants and residents of Redbridge were supportive of the scheme.

A doorstep survey of more than 500 residents was also conducted, of which 86% of respondents supported the plans.

The council states that evidence provided to the Secretary of State shows a significant amount of anti-social behaviour in the borough is related to private rental housing.

The council hoped a borough-wide scheme would give it “the vital tools to help ensure that landlords of private rented properties take responsibility for standards and safety of their property, and deal with any problems caused by their tenants”.

In their response to the council’s application, the Secretary of State claimed that although the case for a borough-wide scheme had not been met, it is clear that in some wards of the borough, there is a link between anti-social behaviour and private rental properties.

Redbridge Council will now consider whether to revise the evidence base to determine if it will consult on a smaller scheme.

Leader of the council, Councillor Athwal, says: “We are extremely disappointed that, despite evidence provided, our application has been turned down to allow us to implement a borough-wide scheme for private property licensing.

“We strongly believe that a borough-wide scheme is vital to hold landlords to account for the actions of their tenants, including noise, rubbish and vandalism and other anti-social behaviour related to some private rented properties.

“Without a borough-wide scheme, it will be impossible for us to readily identify who is responsible for a property and deal proactively with poor standards of rented accommodation. Sadly, we will now have to go back to the drawing board and consider our options.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/council-disappointed-as-licensing-scheme-is-refused

Tenants Damage Properties to Avoid Eviction

Published On: December 23, 2015 at 12:25 pm

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Tenants Damage Properties to Avoid Eviction

Tenants Damage Properties to Avoid Eviction

Tenants may be purposefully damaging their rental properties to avoid being evicted, according to an online letting agent.

Under new laws, landlords that do not respond to legitimate repair requests cannot use section 21 notices to regain possession of their properties. The legislation was enforced on 1st October.

However, research from PropertyLetByUs found that 10% of tenants have admitted to causing over £500 worth of damage to their homes.

The Managing Director of the agent, Jane Morris, states: “While in principle the legislation is a good move, ensuring that landlords don’t evict tenants because of a genuine disrepair issue, it is open to dishonest tenants bending the law to avoid eviction.

“Landlords need to ensure that they make regular checks on their properties and handle tenants’ complaints about damage quickly and efficiently. If landlords are suspicious that the damage is intentional to avoid eviction, they should seek legal advice.”1

Have you had an experience similar to this since the new laws were introduced?

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/tenants-will-damage-properties-to-avoid-eviction-claims-online-lettings-agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Property Supply to Decline

Published On: December 23, 2015 at 10:18 am

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Two in five letting agents expect rental property supply to decline over the next five years, according to the latest report from the Association of Residential Letting Agents (ARLA).

Rental Property Supply to Decline

Rental Property Supply to Decline

The organisation expects the changes to Stamp Duty for buy-to-let investors – as announced in the Autumn Statement – to hit landlords’ confidence in the sector.

Managing Director of ARLA, David Cox, comments: “This month’s findings are triggered by the Chancellor’s announcements around buy-to-let tax in his Autumn Statement.

“When the rabbit was first pulled out of the hat, we said these changes would be catastrophic for the rental sector and this has been echoed by letting agents across the country. The new Stamp Duty increases will make owning a buy-to-let unprofitable for a lot of landlords and certainly make new investors think twice about purchasing a buy-to-let property.”

Under the changes, buy-to-let investors and second home buyers will be charged an extra 3% in Stamp Duty on purchases over £40,000.

The ARLA study also found that tenants are experiencing fewer rent rises, with under one quarter (23%) of agents reporting rent increases for tenants in November, down on October’s figure of 25% and the lowest this year.

Demand for rental homes rose slightly last month, likely a result of renters preparing themselves for Christmas and New Year.

ARLA member agents registered an average of 34 new tenants per branch in November, up from 33 in October.

Supply of rental housing was also on the up last month, a 9% rise from October’s 173 properties per branch to 189. However, tenants in London are continuing to struggle finding properties, with just 121 homes managed per branch – 36% less than the UK average.

Cox continues: “It’s promising to see that the number of agents reporting rent increases is continuing to decline and this should spread some Christmas cheer amongst renewing tenancies or looking for a new property to rent.

“However, just under a quarter of tenants are still unfortunately seeing hikes in their monthly rent payments. But if we continue to follow trends we’ve seen in previous months, we should see fewer tenants experiencing increases as we welcome in 2016.”1

Do you agree with Cox? Or are the changes to Stamp Duty enough to stop you investing further in the sector, or make you put your rents up?

1 http://www.propertyreporter.co.uk/landlords/btl-stamp-duty-causing-gloominess-among-letting-agents.html

 

 

Tax Experts Express Confusion over New Wear and Tear Allowance

Published On: December 22, 2015 at 4:35 pm

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Tax Experts Express Confusion over New Wear and Tear Allowance

Tax Experts Express Confusion over New Wear and Tear Allowance

Tax specialists have expressed concerns over the new Wear and Tear Allowance system, saying that the rules are unclear.

The amendment, due to be enforced in April, will replace the current system that allows landlords of furnished properties to claim back 10% of their rental income against capital expenditure on replacements of furnishings, furniture, appliances, white goods and kitchenware.

However, the Allowance will be changed to actual expenditure, rather than an automatic 10%, next year. Draft regulations indicate that landlords will be capped on what they can claim, with the replacement being an equivalent, not an improvement.

The Association of Taxation Technicians insists: “We certainly expect to be seeking guidance on how HMRC will approach the question of whether a new item is substantially the same as the old item which it is replacing.

“If the new item is an improvement, which has to be treated for tax purposes as capital expenditure and not as a like-for-like replacement to be offset against rental income, the draft provision requires a restriction to the replacement expenditure.

“This position is particularly complicated in relation to items like white goods, where manufacturers are constantly introducing new technologies and functionality. We will be highlighting to HMRC the situations where we think that practical guidance will be needed to avoid disputed claims.”1 

However, the Association does welcome some of the new rules, particularly that landlords will be able to claim against the cost of removal of old items, such as fridges and mattresses.

The proposed revisions can be viewed here: https://www.gov.uk/government/publications/reform-of-the-wear-and-tear-allowance/reform-of-the-wear-and-tear-allowance

For the latest changes to landlord law, remember to check back on LandlordNews.co.uk daily.

1 http://www.propertyindustryeye.com/replacement-rules-for-wear-and-tear-rules-are-unclear-say-tax-experts/

Are Rents Really as Expensive as Claimed?

Published On: December 22, 2015 at 2:05 pm

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Are Rents Really as Expensive as Claimed?

Are Rents Really as Expensive as Claimed?

The news is full of how renting is extortionate and landlords exploit tenants… But is this actually true? Just how expensive is renting?

Recently, rents have performed strongly year-on-year, in line with earnings growth – almost for the first time since the start of the recession.

Rent price indices from LSL Property Services and Belvoir use advertised rents, showing the highest increases, while Countrywide studies prices for existing tenants, which although indicate growth, show rents rising at a much slower rate than for those new to the market.

This data shows that landlords do not exploit tenants with huge increases and reflects the true movements of the rental market.

Regionally, the Office for National Statistics (ONS) found that property prices range massively – from an average of £158,000 in the North East to 3.36 times that in London, at £531,000.

The lowest average rent is in the East Midlands, at £609 per month, with the typical rent in the capital set at £1,442 a month – just over double. This indicates that rents do not rise at the same rate as house prices. And although there have been some high increases, 8-10% annually, these are predominantly for newly advertised rental homes.

Countrywide found that for existing tenants (the majority), rent prices hardly rise at all.

Rent price growth should also be put into context. Since the recession, private sector rents dropped by between 5% in London and 20% in Nottingham. Since then, many increases have been reported as rises, but were simply recoveries. While rents in the East Midlands have grown by 6-8% yearly, today’s prices are only just back to levels recorded in 2008.

Ideally, rents should rise in line with inflation, meaning that landlords have, in fact, seen a price cut over the years.

How have your rent prices changed over the last few years? And do you believe this is correct?

It’ll be Lonely This Christmas

Published On: December 22, 2015 at 12:43 pm

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It'll be Lonely This Christmas

It’ll be Lonely This Christmas

This year saw a rise of 45% in the amount of families with children living in emergency housing – the highest level for 12 years. With the housing crisis taking a hold on the country, many will be homeless this Christmas.

Housing charities are sharing their appeals for help this year, as the lack of property supply and rising house prices push more and more people out of their homes.

Can you help?

Crisis is asking you to Reserve a Place this festive season, with donations of £22.29 enough to welcome a homeless person into a Crisis centre, three nutritious hot meals for them – including Christmas dinner – and the opportunity to shower, a change of clothes, a haircut and a health check. Those seeking help will also be given expert advice on life-changing issues, such as housing and employment, and be informed of Crisis’ year-round services.

Find out more and donate here: https://community.crisis.org.uk/reserve-a-place-general?attr1=tag%7Creserve

Shelter has found that more than 100,000 children will be homeless this Christmas, but you can help them wake up in their own bed. Just £30 will provide cooking facilities for healthy family meals, while £60 will help the charity offer practical support and make sure no one faces homelessness alone. £80 could also help Shelter’s lawyers provide free, expert advice to avoid families losing their home.

Give to these families here: http://england.shelter.org.uk/donate/homelessatchristmas?vwo_ad=100k_homeless&gclid=Cj0KEQiAhuSzBRDBoZfG56bK9-YBEiQARiPcZdkC5G5l7K8JEIg8Y2jZGKO3kTOSSTHchXNY8QetBUYaAgye8P8HAQ

Spread the love 

Costa Coffee has also joined in on tackling homelessness, with its Swansea Oxford Street store opening especially on Christmas Day to give out free coffee, food and presents to homeless people in the city. Eight of the chain’s staff have volunteered for the event and NHS nurses will be on hand offering aid and support.

Why don’t you give the gift of giving this year and help the many people that won’t wake up in their own beds on Christmas morning?