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Landlord Calculator Launches Ahead of Buy-to-Let Tax Changes

Published On: November 23, 2015 at 12:58 pm

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Landlord Calculator Launches Ahead of Buy-to-Let Tax Changes

Landlord Calculator Launches Ahead of Buy-to-Let Tax Changes

Property Partner has launched a buy-to-let calculator for landlords to work out the potential impact of the reduction in mortgage interest tax relief on their income.

The property crowdfunding platform has introduced the calculator ahead of the changes, which will be phased in from April 2017.

Thousands of buy-to-let landlords will see a significant dip in their rental income when the maximum level of tax relief that can be claimed on buy-to-let mortgage interest drops from the current rate of 45% to the basic rate of 20%.

The cut is designed to create a balance between landlords and first time buyers, as well as raising billions of pounds in revenue for the Treasury. However, landlords in the UK are already taxed much more heavily than those in Germany, France and the USA.

Experts believe that the reduction could cause serious changes in the private rental sector, further limiting the supply of rental accommodation and subsequently pushing rent prices higher.

The Property Partner calculator will help landlords understand the impact of the changes. Landlords put into the calculator whether they are a basic rate taxpayer (20%), a higher rate taxpayer (40%) or an additional rate taxpayer (45%).

They then put in how much their bought their property or properties for, their total rental income per year, how much is left on their mortgage(s) and what interest rate they are paying. The resulting prediction indicates how much more worse off higher rate taxpayers will be once the cuts are fully implemented.

CEO of Property Partner, Dan Gandesha, comments: “Landlords were hit with a shock new tax in the summer Budget when the Chancellor announced that mortgage tax relief would be cut.

“Our buy-to-let calculator allows you to quickly and easily work out whether it’s still worth holding onto your property or not, and what other alternatives are available.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/property-partner-launches-tax-change-calculator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fireman landlord jailed after fatal blaze

Published On: November 23, 2015 at 11:49 am

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A landlord who was an operational fireman at the time an arson attack killed five members of a family in one of his properties has been put behind bars.

Mr Jay Liptrot, one of the firefighters called to the scene of the blaze, tried in vain to save members of the young family.

Heartbreaking

In a harrowing case, the fire was proved to have been started by a neighbour, who was jailed for life for the murder of the five people. Melanie Smith, ordered to serve a minimum of 30 years, was found guilty of deliberating setting fire to a pram in the communal hallway of the accommodation.

Mr Liptrot faced 5 charges of manslaughter at the beginning of his trial. However, these charges were subsequently dropped after he pleaded guilty to the lesser charge of failing to take the necessary fire safety precautions.

Caernarfon Crown Court heard that a simple fire door, costing around £250, would have restricted the flow of the fire for roughly 30 minutes. The firefighters arrived on the scene within 6 minutes of the 999 call.

Inadequate

The court also heard that a, ‘woefully inadequate,’ door made from glass and thin wood failed to form a sufficient barrier to protect the family, made up of a couple aged 23 and 20, and three small children, aged 4, 2 and 1.

Mr Lipton had been a firefighter for 15 years at the time of the fire but his since lost his job. He was sentenced to 15 months in prison, alongside costs of £4,299 and a £100 victim surcharge.

Fireman landlord jailed after fatal blaze

Fireman landlord jailed after fatal blaze

Despite this, he still owns a further 11 properties in the Prestatyn are. Following the case, North Wales Fire and Rescue said that it is introducing a new policy, which will require staff to declare any conflict of interest.

Safety

Passing sentence, Mrs Justice McGowan noted, ‘Jay Liptrot has generally been a good and conscientious landlord. However, his culpability must be categorised as high.’[1]

Simon Smith, chief fire officer of North Wales Fire and Rescue Service, added that Mr Liptrot would be the subject of an internal investigation. ‘As a responsible employer whose priority is the safety of the public, it is of course of deep concern to us that an employee, as a landlord, failed to take precautions to ensure this property was safe which not only goes against legislation but also against the core values of our service,’ he stated. {!}

[1] http://www.propertyindustryeye.com/landlord-who-was-a-fireman-is-jailed-after-blaze-killed-tenants/

 

 

National register of BTL properties requested

Published On: November 23, 2015 at 10:19 am

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A leading property investment search portal has put forwards an online petition with the help of the UK Parliament, requesting a national register of buy to let private rental properties.

Founder of Buy2Let.com Martin Wilkinson, is campaigning for a register of transactions completed by buy to let investors, in order to assist in removing rogue landlords from the market.

Slack

Mr Wilkinson believes that despite recent attempts by the Bank of England to stifle the buy-to-let sector, a chronic shortage of properties available, coupled with increasing house prices, means that the private rental sector picks up the slack.

‘We frequently see reports and statistics on the owner-occupier market but the lack of reliable, comprehensive data on the private rental and buy to let sector means no one-including politicians, mortgage lenders and estate agents-has a clear picture of what is happening in the market,’ observed Wilkinson. ‘In much the same way as a mortgage charge is registered on traditional house sales, we think there should be a similar requirement for buy to let purchases.’[1]

National register of BTL properties requested

National register of BTL properties requested

Wilkinson claims that the Buy to Let sector makes over £100bn in transaction each year. With this in mind, he said, ‘it’s vital that we capture the true scale of this important market and at the same time, use the data gathered to identify and stamp out malpractice and rogue landlords.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/buy-to-let-chief-wants-register-to-deter-rogue-agents-and-landlords

 

Today’s the Day for Change in the Welsh Private Rental Sector

Published On: November 23, 2015 at 9:55 am

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Categories: Landlord News

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Today's the Day for Change in the Welsh Private Rental Sector

Today’s the Day for Change in the Welsh Private Rental Sector

The day has arrived for landlords and letting agents in Wales to join up to the Rent Smart Wales scheme.

The Welsh private rental sector will experience many changes from today, including the requirement for letting agents to display fees. This was only announced last week, despite being mandatory.

Everyone renting out accommodation in Wales must register themselves and register details of their rental properties from today.

All managing agents and landlords that manage or conduct maintenance on their properties must also apply for a license, pass a fit and proper person test, participate in a training course and adhere to a code of practice as part of Rent Smart Wales.

Landlords that are registered but unlicensed must appoint a licensed agent to manage their properties.

Landlords and agents have one year to comply with the regulations before enforcement begins on 23rd November 2016.

Although the Rent Smart Wales scheme has been known about for a while, the obligation for letting agents to prominently display their fees in their offices and on their websites could come as a shock. The Association of Residential Letting Agents (ARLA) was not aware of the rule until last week.

If you let property in Wales, ensure that you are not caught out by either of these regulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlord Fined £70,000 for Breaching HMO Regulations

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

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A landlord in west London has been fined over £70,000 for breaching House in Multiple Occupation (HMO) regulations.

Landlord Fined £70,000 for Breaching HMO Regulations

Landlord Fined £70,000 for Breaching HMO Regulations

Ealing London Borough Council brought the case against Balwinder Singh Kahlon. He was charged for 18 offences of failing to comply with the Management of Houses in Multiple Occupation (England) Regulations 2006 (Section 234(3) and (5) of the Housing Act 2004 and one offence breaching Section 72(2) of the Housing Act 2004. He pleaded guilty to all of the offences.

The 19 fines totalled £69,100 and Kahlon was also ordered to pay council costs of 33,180.43 and a victim surcharge of £120, making the total £72,400.43.

The breaches regard the management of a property on East Avenue, Southall. They were uncovered after an unannounced inspection of the home in January by regulatory services officers.

The licensed HMO for ten people in seven households was found to have numerous serious management breaches, including a blocked escape route, dirty and unmaintained bathrooms and kitchens, unclean communal areas and poor maintenance of the emergency lighting.

A warrant was granted to enter the property. When officers arrived in February, they found 20 people living there, including two babies, making up ten households. Some individuals were living in windowless rooms, unsuitable for residential occupation.

Kahlon had ignored the terms and conditions of his HMO license by overcrowding the property with double the number of tenants he was allowed to house. The council brought the prosecution against him for offences relating to his failure to comply with management regulations of the HMO and one for allowing more occupants or households to live in the property than permitted by the license.

Councillor Jasbir Anand, Cabinet Member for Housing at Ealing Council, says: “We make every effort to ensure residents in the borough have decent living standards and are well protected from greedy slum landlords. Mr. Kahlon showed scant regard for his license conditions and endangered the lives of his tenants in order to make as much money as he could. I have nothing but contempt for his actions and welcome this substantial fine that has been imposed on him, which I hope will be a considerable deterrent to other unscrupulous individuals.”1

The court has enforced a collection order for the fine, demanding Kahlon to pay £25,000 by 27th November and the remaining balance within three months, by 26th February 2016.

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/southall-landlord-fined-70k-for-hmo-regulation-breaches

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EasyRoommate User Banned for Inappropriate Ad

Published On: November 21, 2015 at 12:49 pm

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Categories: Property News

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A user of house and flat share website EasyRoommate has been banned after advertising a spare bed in his room to single women for £1 per month.

He claimed that the reason for the unusual arrangement was because he is scared of sleeping alone.

The user tried to upload the advertisement to the site earlier this month. However, EasyRoommate moderators blocked the advert before it went live, as they felt there was “suspicion around the sexual intent from the landlord”.

The site was then unable to contact the landlord to clarify the situation, claims Michael Benjamin, Head of Global Marketing at EasyRoommate.

The advert stated that the ideal tenant would be a female student. The landlord added that she should be single.

The advert for the property in Gants Hill, northeast London, read: “I am renting another bed in my spacious ensuite bedroom for free due to autophobia, which is fear of being and sleeping alone.

“The tenant must be single female, clean, organised and sociable.”

Benjamin says that the landlord has been banned from using the site until he makes contact with the customer service team.

He explains that about 5% of adverts are blocked before going live during the pre-moderation process. Around 1.5% of adverts have been removed once going live, if the moderator finds that unsuitable changes have been made to the descriptions.

CEO of EasyRoommate, Albin Serviant, says: “We believe that flatsharing can be a wonderful experience, given the right conditions.

“Because we don’t want to leave to chance, we have a dedicated moderation team working around the clock to ensure the advertised flats are genuine.

“As a word of advice, if it’s too good to be true, then it probably is.”1

In student newspaper The Tab, Lizzy Woods – a student of Religion, Politics and Society – insists: “That’s so creepy! Fair enough if you need a roommate because of a condition like autophobia, but I doubt this condition is specific enough to dictate the need for his roommate to be both female and single.”1 

1 http://www.independent.co.uk/property/house-and-home/property/easyroommate-user-banned-after-advertising-spare-bed-in-his-room-for-1-a-month-to-females-a6728796.html