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Luton Council Aims to Tackle Rogue Landlords

Published On: December 17, 2015 at 12:58 pm

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Luton Council Aims to Tackle Rogue Landlords

Luton Council Aims to Tackle Rogue Landlords

Luton Borough Council has launched a new scheme to crack down on rogue landlords that rent out poorly managed or dangerous properties.

The Rogue Landlord Project was created alongside the Bedfordshire Fire & Rescue Service, the Luton Law Centre and the Luton Citizens Advice Bureau.

The council insists that rogue landlords will not be tolerated and offenders will be caught.

The scheme particularly focuses on:

  • Houses in Multiple Occupation (HMOs)
  • Beds in sheds – substandard properties that are being used as homes without relevant permission
  • Empty homes – the council hopes to bring these properties back into use to provide more people with accommodation

Recently, 18 landlords have been prosecuted by Luton Council or served with prohibition orders, many resulting in large fines and criminal records. Beds in sheds and HMOs have been emptied and several investigations are ongoing.

Councillor Tom Shaw, Portfolio Holder for Housing at Luton Borough Council, says: “The Rogue Landlord Project is an integral part of ensuring that private housing in Luton is of a good standard. It is an important part of our enforcement policy and will help ensure that properties in Luton are safe and maintained to a good standard. If a HMO is poorly managed, tenants’ safety could be at risk.

“We are committed to ensuring that rogue landlords are identified and are made to improve the property or face prosecution. I would encourage tenants or neighbours who suspect a landlord is not adhering to the rules to get in touch with us.”1 

1 https://www.luton.gov.uk/Housing/Other%20housing%20information/Pages/Rogue-Landlord-Project.aspx

Senior agent warns on landlords setting up ltd companies

Published On: December 17, 2015 at 12:44 pm

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A senior letting agency boss has warned landlords to be on their guard if they are planning on setting up a limited company in the wake of the Chancellor’s announcement in the Autumn Statement.

Anita Mehra, managing director of Benham & Reeves Residential Lettings, says Mr Osborne’s cap of mortgage relief for landlords alongside an increase of 3% in stamp duty on buy-to-let properties has seen the industry, ‘reel.’

Due to this, Mehra states that many landlords have approached her firm about information on putting their property portfolio in a limited company.

Popular

This is becoming more popular, due to the restriction on tax relief on mortgages interest only affecting individual investors and unincorporated residential property organisations, not limited companies.

Mehra notes that, ‘before going down this route, landlords need to think carefully. Transferring an existing property portfolio into a limited company structure could potentially attract Capital Gains Tax based on the market value of the property although such a move may be deferred on incorporation and allowing the landlord to roll the gain into the cost of the shares.’[1]

Instead, Mehra believes that landlords should discuss their issues with their accountants before making any decision.

Senior agent warns on landlords setting up ltd companies

Senior agent warns on landlords setting up ltd companies

Bills

‘The transfer can also see the landlord facing a hefty Stamp Duty Land Tax bill as each property is effectively considered to be sold at market value to the company even if there may be no consideration,’ Mehra said.[1]

An example Mehra gave is that people purchasing property through a company for the first time, overseas companies or other similar vehicles are permitted to pay 15% Stamp Duty Land Tax if the purchase price exceeds £1m. From April 2016, this will drop to £500,000 if the property is not for rental investment.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/12/senior-agent-urges-caution-over-setting-up-buy-to-let-limited-companies

Majority of tenants satisfied with PRS

Published On: December 17, 2015 at 10:36 am

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A new investigation from Paragon Mortgages has indicated that tenant satisfaction levels remain high in the Private Rental Sector.

In addition, the survey shows that demographics of the sector are changing. 29% of people making a home in the private rented sector are couples, with 21% being couples with children.

Settled

The majority of tenants asked seem to be settled in the Private Rented Sector, with 87% of those asked stating they felt at home. Additionally, the report shows that the average time spent living in the sector presently stands at 12 years.

Improving standards are the key factor driving the popularity of the sector, alongside a shortage of housing stock. 81% of respondents said they were satisfied with their landlord, with 66% of renters considering their rented property to be good or very good value for money.

Majority of tenants satisfied with PRS

Majority of tenants satisfied with PRS

Attractive

John Heron, Director of Mortgages at Paragon, said, ‘the message coming through in this survey is that, for many people, the Private Rented Sector is an increasingly attractive option over the long-term. This in many ways reflects the ongoing issue of affordability in the housing market, simultaneously however, competition and best practice are driving higher standards in the sector-making it a more attractive proposition for both individuals and families.’[1]

‘This data underscores the value of the PRS to the UK’s housing market. The UK’s Private Rented Sector still has some way to go before it catches up with its counterparts in Europe, but higher tenant satisfaction with both standards and affordability, show that there is room for increased growth in the sector,’ he added.[1]

[1] http://www.propertyreporter.co.uk/landlords/private-rental-sector-fuelled-by-satisfied-tenants.html

 

NAEA and ARLA’s Housing Market Predictions and How to Overcome the Crisis

Published On: December 17, 2015 at 9:36 am

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The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have joined together to set out their housing market predictions for the next ten years and suggestions for overcoming the current crisis.

The organisations report that house prices and rent prices will soar over the next decade, while buying a property will become further out of reach for many.

NAEA and ARLA's Housing Market Predictions and How to Overcome the Crisis

NAEA and ARLA’s Housing Market Predictions and How to Overcome the Crisis

The NAEA and ARLA predict that homeownership will decline by 7% by 2025, while the number of people living in rental accommodation will increase by 9%.

ARLA believes that rents will rise by over a quarter, while the NAEA expects house prices to surge by 50%.

The sister bodies state that a “drastic and immediate” overhaul is needed to fix the current housing crisis.

The report, compiled with the Centre for Economics and Business Research, suggests what can be done to repair the broken market.

The average house price in the UK is currently about £280,000, with the Housing 2025 report forecasting that it will rise to £419,000 over the next ten years.

In London, prices are expected to almost double in the next decade, from an average of £515,000 at present to £931,000.

Rent prices are predicted to grow by 27% from the current average of £134 per week to £171 in 2025.

Again, those in the capital will face higher rises, paying an extra 34% in rent per week by 2025, from £234 to £314.

The study states that the current level of homeownership amongst the working population of around 62% will drop to 55%, while those living in rental housing will rise from 20% to almost 29% in the next ten years.

David Cox, Managing Director of ARLA, says: “Buying and renting a home is a giant step, and is out of reach for many. Rent costs are already growing at a rate that people are struggling to keep up with and they’re due to become even less sustainable over the next decade.”

Mark Hayward, Managing Director of the NAEA, also comments: “House prices are only going to go one way and unfortunately, that is up. For so many already priced out of the market, this is news aspiring house buyers will not want to hear.”

The organisations are calling for a number of measures to be introduced. These include:

  • Building on some parts of the greenbelt.
  • Mandatory licensing of landlords and letting agents.
  • Encouraging institutional investment in the private rental sector.
  • Encouraging more construction workers from outside the EU to work in Britain.
  • A Stamp Duty exemption for pensioners looking to downsize.

The managing directors say: “The housing crisis Britain is facing is deep-rooted, and if it is to be solved will require finance, suitable land, time, new skills and most importantly, the appropriate national regulation of the key stakeholders, not least the estate agents and letting agents that form our membership. We are calling for change, and it needs to happen soon.”1 

1 http://www.propertyindustryeye.com/do-something-about-it-naea-and-arla-say-housing-market-is-broken/

Scottish Budget brings more charge for landlords

Published On: December 17, 2015 at 9:14 am

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Scotland’s Finance Secretary John Swinney has revealed today that there will be an additional charge for people purchasing second homes and buy-to-let properties.

In his budget, Mr Swinney followed Chancellor Osborne’s move in this year’s Autumn Statement, by announcing an additional supplement of 3% on the purchase price of a home. This will be on top of the existing Land and Buildings Transaction Tax.

Changes

The Land and Buildings Transaction Tax (LBTT) replaced UK stamp duty in April of this year. This new system has raised £218m in its first seven months and uses a graduated tax rate, in the same way as income tax is calculated.

Under the current LBBT, properties bought for up to £145,000 do not incur any tax payments. For sales between 145,000 and £250,000, a tax rate of 2% in incurred, with a 5% rate for properties valued between £250,001 and £325,000.

For transactions between £325,001 and £750,000, the marginal rate is 10%, with a top rate of 12% applicable to all of those above £750,000.

In the address, Swinney also said that the rates for residential, non-residential and lease transactions will be the same next year. In addition, he said that he would bring forward legislation on the second home charge as soon as possible, to become effective from April 2016.

Second-home issue

Mr Swinney said to MPs that he is, ‘conscious of the issue of second homes.’ He went on to say that, ‘we need to ensure that the opportunities for first-time buyers to enter the market in Scotland are as strong as they possibly can be and we need to make certain that tax changes elsewhere in the United Kingdom do not make it harder for people to get on the property ladder.’[1]

‘This is why I today announce my intention to introduce a supplement to LBTT for those purchasing and additional home for £40,000 or more. Such properties will be subject to a supplement of 3% of the total purchase price, payable in addition to the existing LBTT charge,’ he continued.[1]

Scottish Budget brings more charge for landlords

Scottish Budget brings more charge for landlords

John Blackwood, chief executive of the Scottish Association of Landlords also commented that, ‘landlords will be disappointed and frustrated by the decision by the finance secretary this afternoon to copy the policy of the Conservative Party at Westminster and punish those who choose to invest in the private rented Scotland. The supplementary tax on the purchase of second homes will have a huge impact on the buy-to-let market and exacerbate an already serious shortage of properties in many areas.’[1]

‘We firmly believe that the biggest losers from today’s statement will be tenants who will now find it even harder to get the accommodation they want at a price they can afford,’ he added.[1]

Investment

Chartered Institute of Housing Scotland policy and practice officer Ashley Campbell said, ‘we welcome proposals to increase land and buildings transaction tax for second homes and buy-to-let properties but would like to see more details of where the additional revenue raised will be invested.’[1]

Campbell went on to say that, ‘our preference would be for these funds to be re-invested towards increasing housing supply.’[6]

[1] http://www.bbc.co.uk/news/uk-scotland-scotland-politics-35113952

 

Create your own natural Winter Wonderland!

Published On: December 17, 2015 at 9:00 am

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With the festive season beginning to get into full swing, the majority of us will have already taken our decorations out of the loft and battled with tinsel, baubles and broken lights.

However, the last bit of Christmas sparkle missing from your home could be in the garden. There is no better time to look outside and see how some greenery could be used to add to final festive touches to your windowsill, hearth or front door.

Happy Holly-days

‘If you have common plants like holly, cotoneaster, rosemary and ivy, they can all be put to good use in Christmas displays both inside and out,’ said Emma Hardy, author of The Winter Garden. ‘Little pine conifers will be fine to have indoors over Christmas. I bought some Picea glauca (white spruce) from Ikea, which are really good for Christmas displays. Look indoors at garden centres and they will have those little conifers,’ she continued.[1]

Have a Mossy Christmas

Hardy believes that by people should add, ‘softer greenery like bun moss or even moss from your lawn to add to a trough for the table.’ She added that, ‘you can pick moss off the lawn or if you have a lovely bit on the roof of your shed, use that. You may need to mist it a bit to keep it moist.’[1]

Create your own natural Winter Wonderland!

Create your own natural Winter Wonderland!

Be the Ivy of your friends  

‘Ivy, especially if it has the berries on it, looks great and lasts for ages,’ Hardy notes. ‘Pussy willow can be used, as can rosemary which keeps its shape. For a cheap display, consider bulbs. I bought some hyacinths the other day which were 69p each. Get a few of those, pot them up in an old vase with pine cones round them and it makes a special display.’[1]

iStock_000019052690_Small

Holes, holes, holes

Hardy warns that, ‘making holes in the bottom of any trough is essential for drainage, but ensure you put a drip tray underneath or the Christmas table’s going to get wet! Add a thick layer of gravel to the bottom of the container, leveling the surface, then half-fill the trough with potting compost before adding your plants.’[1]

‘If you want a bit of sparkle, put some of those battery-operated fairly lights around the tree and it’s just the sweetest thing,’ she suggests. ‘Use succulents from an existing rockery to make a fantastic wreath which should look good all year round and can be refreshed and reused next year too, ‘she suggests.[1]

Deck the trough with potting compost 

For finishing touches for displays, Hardy says, ‘Use moss to line a metal wreath frame, pulling the moss into pieces and laying it in a ring shape slightly larger than the wire frame, root side up on the table. Lay the wire wreath frame on top of the moss and place handfuls of potting compost on the frame, then wrap the moss around the frame and the compost, securing it with copper wire. This should provide enough nutrients to keep the succulents happy.’[1]

iStock_000069521523_Small

Festive cheer…for the rest of the year 

Hardy concluded by saying that when the festive season is over, she hangs her wreath in a sheltered spot outside. ‘Succulents can survive quite dry conditions so make sure the wreath doesn’t become waterlogged. In very dry weather, just moisten the moss and potting compost a little, she explains.[1]

She concluded by saying, ‘with all winter displays, it’s not worth doing anything that you can’t see from your house. If you have space by your front door, back door or back window, position your plants so you can see them.’[1]

Follow Hardy’s lead and create your own Winter Wonderland from your own surroundings!

[1] http://www.hamhigh.co.uk/property/make_your_own_festive_displays_the_natural_way_1_4344925