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Em

Em Morley

Prime Central London Property Market Continuing to Drop

Prime Central London Property Market Continuing to Drop

Prime Central London Property Market Continuing to Drop

The prime central London property market is continuing to drop, according to the latest report from Knight Frank estate agents.

It found that the amount of applicants decreased by 30% in September, compared to the same month in 2014. House prices also fell, by 0.3%.

The number of properties exchanged in the three months to the end of September was around 17% less than in the same period last year.

A partner at Knight Frank, Noel Flint, believes that currency fluctuations and Stamp Duty changes are deterring foreign buyers from the London market.

He says: “There are far fewer Russian buyers in London looking to spend £5m to £10m. Their budgets have been trimmed, as the rouble is a fraction of what it was. Ditto the Far Eastern buyers.

“Now the pound is so strong, London is not seen as such good value for money.”1

As a result, Knight Frank has reduced its annual house price growth forecast for 2016 from 4.5% to 2%.

Even if you do not own a property in the prime central London market, it is important to be aware that trends in this sector can spread to other parts of the capital, and sometimes across the country, particularly the South East.

Ensure you keep up to date with the property market in your area, and understand how it could be affected by what’s going on in London.

1 http://www.propertyindustryeye.com/going-down-prime-central-london-market-continuing-to-dip/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Petition Against Buy-to-Let Tax Reform Hits 35,000 Signatures

Published On: November 2, 2015 at 4:02 pm

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Categories: Property News

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Petition Against Buy-to-Let Tax Reform Hits 35,000 Signatures

Petition Against Buy-to-Let Tax Reform Hits 35,000 Signatures

An online petition against the planned buy-to-let tax changes has now surpassed 35,000 signatures, but it is still far from the target for triggering a debate in Parliament.

The tax reform, detailed by Chancellor George Osborne in the summer Budget, will see mortgage interest tax relief for buy-to-let investors cut to the basic rate of income tax, currently at 20%, even if the landlord pays the higher rates of 40% or 45%.

Osborne believes the relief will resolve “unfairness in property taxation”1. It is due to be phased in from 2017.

The industry has expressed strong opposition to the measure, with a website being created to explain how the new rule will affect not only landlords, but also letting and estate agents, tenants and pensioners. Take a look at Say “No” To George here: http://saynotogeorge.co.uk

The petition needs 100,000 signatures by the end of January to force a parliamentary debate.

However, its success has been set back in recent weeks, after the Chief Executive of the National Landlords Association (NLA) described it as “a waste of time”.

Richard Lambert said that even though exceeding the 100,000 mark sounds impressive, it means any subsequent debate by MPs would be “when ‘parliamentary time allows’, meaning that it could be months down the line, by which point the chance to affect change may well have passed”1.

You can find the petition here: https://petition.parliament.uk/petitions/104880

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/petition-against-buy-to-let-tax-changes-passes-35-000-signatures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Another Landlord Fined for Renting Out Bed in Shed

Published On: November 2, 2015 at 1:41 pm

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Categories: Landlord News

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A landlord has been fined almost £6,000 for allowing tenants to sleep in an outbuilding in Westcliff-on-Sea, Essex.

Syed Junid Ul Hassan Shah was found guilty at Basildon Magistrates’ Court on 21st October of failing to comply with three prohibition orders and for not licensing the property as a House in Multiple Occupation

Another Landlord Fined for Renting Out Bed in Shed

Another Landlord Fined for Renting Out Bed in Shed

(HMO).

The landlord was first investigated in July 2014, when Southend-on-Sea Borough Council’s planning enforcement department reported the home, 53 Glenwood Avenue, Westcliff-on-Sea, to the private sector housing team who then visited the property.

After an inspection at the end of July 2014, Shah was served four prohibition orders due to faults at the property, inadequate fire safety measures and the use of an outbuilding as a bed in a shed.

Shah reported that repair work had been carried out in November 2014, but a further investigation found that minimal work had been conducted inside the house and that the outbuilding was still being used as a bedroom.

Additionally, the middle room on the ground floor of the property was still in use as a bedroom and the second floor room had no fire detection, but was being used as a bedroom. Further evidence was also discovered at this visit that other people were living in the house.

On 27th November 2014, the council wrote to Shah, requiring him to license the property as an HMO. Shah did not respond.

Executive Councillor for Housing, Councillor David Norman, comments: “There is simply no excuse for this sort of behaviour and I am delighted that this landlord has been brought to book. No one should be living in conditions like this, where there is little if any regard for safety or the welfare of tenants.

“I am very concerned to see beds in a shed and would urge anyone that is aware of any similar practises to report them to the planning enforcement and private sector housing teams immediately.

“I am pleased that a large fine has been issued and I hope this sends a strong message that the council will take action to protect tenants from being exploited in such a way.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/another-bed-in-shed-landlord-fined

Rogue landlord served with £23,000 fine

Published On: November 2, 2015 at 12:05 pm

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A rogue landlord in Reading has been ordered to pay a substantial fee after pleading guilty to a series of offences.

Mr Hafiz Mohammed Gulfraz was fined £20,000 and told to stump up an extra £3,343 in costs after a string of breaches of legislation. These included:

  • taking control of a HMO without a licence
  • breaching an emergency prohibition order
  • intentionally tampering with the electric and gas supply

The offences all took place during this year and all relate to the single property in Reading.

Charges

Mr Gulfraz was charged with 12 offences, five of which magistrates deemed to be most serious, hence the severity of the fine. These were based on breaches such as failing to ensure that the fire alarm and lighting were maintained properly and intentionally depriving tenants of adequate heat and light.

Rogue landlord served with £23,000 fine

Rogue landlord served with £23,000 fine

The court said that this particular case was one of the worst that it had ever dealt with.

Reading council began their investigation on the property in January following contact from a tenant in the property. Officers found a large number of health and safety hazards at the property, including the central heating system being disconnected.

The council decided that there was an imminent threat of harm if the tenants were to remain in the property and thus an emergency prohibition notice was served.

Additionally, despite there were five rent paying tenants residing in the property, it was still not listed as a house in multiple occupation.

Ombudsman warns on Right To Rent

Published On: November 2, 2015 at 10:52 am

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The Property Ombudsman has issued a warning to letting agents, warning them not to forget their duties under the upcoming Right To Rent immigration checks. These checks become mandatory across England from February 1st 2016.

Responsibilities

Christopher Hamer, who is in the final month of his term as Property Ombudsman, has move to remind landlords that in legal terms, the Right To Rent legislation states the responsibilities of checking a tenants’ documents lies firmly with the landlord.

However, Hamer warns that agents face the possibility of having the liability switched to them, should there be a written agreement that they will conduct the Right To Checks on behalf of their client.

‘Agents need to be very precise with the landlord from the outset as to what responsibilities they are taking on in regard to Right To Rent,’ Hamer noted.[1]

‘If the landlord wants the agent to undertake the necessary legal checks, then there must be clear and unambiguous documentation between the parties, stating who has taken responsibility and agents must diligently exercise their duties,’ he added.[1]

Ombudsman warns on Right To Rent

Ombudsman warns on Right To Rent

Checks

Under the Right To Rent legislation, landlords or agents are permitted to check identity documentation for all new potential tenants. These documents include a UK passport, European Economic Area passport or card, residence card or travel documentation, indicating an indefinite leave to remain. Further documents could be a Home Office immigration status document or a certificate of registration or naturalisation as a British citizen.

More information on the Right to Rent legislation can be found here.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/10/right-to-rent-ombudsman-tells-agents-to-get-written-instructions-from-landlords

 

Criminalisation of Landlords by Right to Rent Discussed in Commons

Published On: November 2, 2015 at 10:06 am

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The criminalisation of landlords by the Right to Rent scheme has been discussed in the House of Commons.

Strong concerns were raised that landlords or their letting agents would automatically be committing an offence if the Home Office informs them that a tenant is in the UK illegally.

James Brokenshire, the Immigration Minister, said that he would “reflect carefully” on the worries expressed.

The Right to Rent scheme was introduced by the Immigration Act 2014, but the Immigration Bill 2015 will criminalise breaches of the regime and will be enforced across England from 1st February 2016.

The 2014 Act imposed civil penalties, but the new Bill will implement criminal sanctions.

In a committee session on the new Immigration Bill, various suggested amendments were discussed.

Keir Starmer, Shadow Home Office Minister, expressed: “The scheme has flaws… it includes provisions that put landlords in an impossible and unacceptable position because they become criminals on a date when they cannot do anything about that criminality.

Criminalisation of Landlords by Right to Rent Discussed in Commons

Criminalisation of Landlords by Right to Rent Discussed in Commons

“If it is brought to a landlord’s attention that they have someone in their premises who does not have a right to rent, they are duty-bound.

“It would be entirely appropriate for them to begin eviction proceedings from the moment they find out about the illegal tenant, but the landlord is already criminalised.

“They have become a criminal; they simply have not been prosecuted and charged. I cannot see any reason or need for that.”1

Starmer is the former Director of Public Prosecutions and Head of the Crown Prosecution Service.

He supported an amendment to give landlords two months to evict a tenant after learning that they are in the UK illegally. A further amendment would make sure that there would be no retrospective penalties.

Anne McLaughlin, an SNP MP, stressed the point: “As currently drafted, the bill would mean that as soon as a landlord receives a notice from the Secretary of State that the tenant does not have the right to rent, they would automatically be committing a criminal offence.

“That is despite the bill requiring landlords to give tenants 28 days’ notice to leave the property under the proposed eviction procedure.”

She also fears that landlords will get caught between housing law and the requirements of the Immigration Bill: “It is a case of ‘Which law will I break?’ Which of those laws would the minister suggest it is better to break?”1

Brokenshire responded: “Amendment 71 would protect a landlord from potential prosecution where they have taken action to evict a tenant who is an illegal immigrant within two months of receiving a Home Office notice.

“There is a technical issue with the amendment however, as it provides for that defence only when a landlord has taken eviction action under the additional routes provided in proposed new sections 33D and 33E of the Immigration Act 2014, inserted into the Act by clause 13.

“The amendment would provide no defence where a landlord is able and chooses to pursue eviction under existing routes.”

He explained: “For example, a landlord may be able to pursue a no-fault eviction under section 21 of the Housing Act 1988 or use other grounds available under section 8 of that Act.

“In some circumstances, the proposed defences would not be available.”

The committee also addressed concerns raised by David Smith, Policy Director of the Residential Landlords Association (RLA). He worries that landlords will become risk-averse, causing them to discriminate against prospective tenants they believe to be non-British.

A letter from the RLA to Brokenshire was also discussed. It detailed a number of fears, including a worry that law-abiding landlords would feel that they are facing substantial fines or imprisonment.

The letter also believes that there is a potential for chaos, as the 2011 Census revealed that 16.5% of private tenants do not have a passport.

Brokenshire does not agree with the RLA. He said: “Landlords conduct some checks; they might not be focused specifically on a tenant’s right to be in the country or who they are renting their property to. Many use agents to conduct credit and other checks.

“There is a sense that landlords in the rented sector will be vigilant. They have been or will be doing those general checks.

“The offence is only if they know or have reasonable cause to believe that someone in their rented property does not have the right to be in the country. We are setting a relatively high bar. We will give that clarity to the Residential Landlords Association.”1 

What are your concerns surrounding the new Bill?

1 http://www.propertyindustryeye.com/fight-is-on-to-stop-landlords-being-automatically-criminalised-by-right-to-rent/