Posts with tag: London landlords

The Average House Price at Each London Underground Station

Published On: February 4, 2016 at 4:04 pm

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Categories: Property News

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Are you looking to invest in the London property market ahead of buy-to-let tax changes this year? Or maybe you’re one of the homebuyers looking to take advantage of the London Help to Buy scheme, which launched on Monday?

Whichever way you’re going to buy, if you’re considering the property market in the capital, it is vital that you pick the best place to purchase.

Thanks to online estate agent eMoov, you can now compare house prices across the London Underground with the firm’s alternative Tube map.

For each of the 280 stations on the Underground, eMoov has found the average house price in that area.

Last year, we published a similar map, which shows how much it costs to rent near each Tube stop. And the two maps show some similarities…

Take one of the cheapest rental prices for example. Renting in Hatton Cross cost just £324 per month back in September, and indeed, it is still one of the cheapest places to buy this year, with house prices around £292,000.

Dagenham Heathway also has some affordable properties – the average house costs just £238,000. However, renting in this area was more expensive last year, at £796 a month.

While not all rent prices/house prices correlate, expensive spots are pricey across all tenures.

Properties in Hyde Park Corner go for an average of £1.9m, while tenants will need a huge £2,920 per month to rent there. However, rents are cheaper in Piccadilly Circus, at £2,256 a month, while house prices average a whopping £2.6m.

Landlords are reminded that buy-to-let investors and second homebuyers will be charged an extra 3% in Stamp Duty after 1st April, which is causing many investors to rush into the market now in order to beat the deadline. Find out more: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Those looking for help with saving for a deposit can apply for Government-backed equity loans of up to 40% of a new build property’s purchase price worth up to £600,000 through the Help to Buy London scheme. For more information visit: /help-to-buy-london/

Use the map to find out where you can afford to buy: https://media.timeout.com/images/103113857/image.jpg

London Landlords to Receive Cashback on Old Boilers

Published On: February 4, 2016 at 1:22 pm

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Categories: Landlord News

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The capital’s first boiler replacement scheme has been launched, announced by the Mayor of London, Boris Johnson.

The London Boiler Cashback Scheme is offering £400 in cashback when old, inefficient boilers are replaced to 6,500 of the capital’s homeowners and private landlords.

London Landlords to Receive Cashback on Old Boilers

London Landlords to Receive Cashback on Old Boilers

The scheme works on a first-come, first-served basis, so landlords are being encouraged to apply early.

Private landlords or their letting agents must be accredited with the London Rental Standard in order to be considered. They can apply for cashback on more than one property, so long as they meet the scheme’s requirements.

Replacing an old, inefficient boiler with a new, efficient version can be beneficial in many ways; a more efficient boiler can mean average savings of £340 per year, as well as a warmer, more comfortable home. It also substantially reduces the risk of carbon monoxide poisoning.

It is hoped that the scheme as a whole will significantly cut carbon emissions and improve air quality across London.

If you are considering applying for the scheme, the following rules apply:

  • The current boiler must be 70% or less energy efficient – usually a G rated boiler that is either gas, LPG, solid fuel or oil fuelled – in working order and the main boiler used to heat the property.
  • The replacement must be a gas boiler that is A rated – at least 90% energy efficient – or a renewable/low carbon heating technology.
  • The installer must be a Gas Safe registered installer, a Microgeneration Certification Scheme (MCS) certified installer or equivalent, or a member of a competent persons scheme, such as OFTEC or HETAS.

When you apply, you must provide details of the boiler to be replaced, along with those of the heating engineer. You will then receive a voucher, after which the boiler can be replaced.

Vouchers are valid for 12 weeks from the date of issue, in which time the boiler must be installed. To receive the £400 cashback, you must then send back proof of installation, along with the voucher, no later than ten working days after the expiry date of the voucher.

For more information on the scheme, details of how to apply and the terms and conditions, visit: www.london.gov.uk/boilers

Only Prime Central London Landlords Can Absorb Extra 3% Stamp Duty

Published On: January 8, 2016 at 9:27 am

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Only Prime Central London Landlords Can Absorb Extra 3% Stamp Duty

Only Prime Central London Landlords Can Absorb Extra 3% Stamp Duty

Only landlords buying properties in the prime central London market will be able to absorb the extra 3% Stamp Duty charge, which will come into effect on 1st April, according to investment advice firm, London Central Portfolio (LCP).

Investors buying rental properties in other parts of the UK will be hit much harder by the additional tax, claims LCP.

A statement from the firm reads: “For UK investors buying outside prime central London, for affordability reasons and who have benefitted from very low levels of Stamp Duty, the new additional rate sees the tax jump by almost 2.5 times.

“In prime central London, on the other hand, Stamp Duty will rise less than 50% on average. This is likely to be absorbed very quickly, due to the strong, long-term price growth in prime central London of 10.1% per annum, which would equate to 61% over the next five years.”

This fairly modest effect on landlords in London contrasts to the much stronger impact on Manchester, where long-term growth has only averaged 4% per year.

LCP warns: “The additional 3% Stamp Duty will significantly eat into profits. As investors weigh their options, it is areas outside prime central London that are likely to suffer the most.”1 

LCP believes the rise in Stamp Duty for landlords is part of a Government attack on the buy-to-let sector, which will institutionalise the market through Build to Rent and institutional investment; large-scale property investors will be unaffected by the extra Stamp Duty, which does not apply to purchasers of 15 properties or more at one time.

Read more on the tax here: /btl-homes-hit-with-increased-stamp-duty/

1 https://www.lettingagenttoday.co.uk/breaking-news/2016/1/prime-london-buyers-can-absorb-extra-3-duty–but-other-cities-cant

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Late summer tenancies give London landlords a boost

Published On: September 29, 2015 at 4:05 pm

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Categories: Landlord News

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Gove’s cladding plans are ‘based on lazy and false assumptions’, says NRLA

Landlords in the capital have been provided with a late summer rental boost, according to a new report compiled by London estate agent Portico.

Research from the organisation suggests that landlords in the region whose tenancies begin in the back end of the summer achieve rents 11% higher than those starting in December.

Increases

The firm suggests that a reason for this surge in prices is down to a 10% reduction of available housing supply in September, combined with a 64% increase in tenant demand. This is primarily driven by the student and graduate markets.

Portico says that it gets double the amount of enquiries per property in September, in comparison to the national average. In addition, the firm said this figure was four times the number of enquiries per property than in December.

Late summer tenancies give London landlords a boost

Late summer tenancies give London landlords a boost

Fluctuation

‘We are advising landlords to take advantage of these seasonal fluctuations which can see rental income boosted,’ said Robert Nichols, director of Portico. ‘With much smaller void periods and higher rents, landlords should seriously consider inserting a break clause at the next renewal point in their tenancies to re-synchronise tenancy dates. A tenancy starting in September is just good business.’[1]

Just last week, a report from the Association of Residential Letting Agents indicated that the supply of rental property fell in August, from an average of 189 properties per agency in July to 178. In addition, the report confirmed that fewer letting agents reported rent increases during the last month.

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/late-summer-tenancies-provide-london-landlords-with-11-rent-boost

 

 

Boris Johnson’s Landlord Scheme is Unsuccessful

Published On: July 21, 2015 at 8:57 am

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Categories: Landlord News

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A landlord scheme introduced by the Mayor of London, Boris Johnson, aimed at improving the private rental sector in the capital has been generally unsuccessful.

It was revealed that just 0.2% of advertisements for rental properties mentioned that the landlord or letting agent had signed up to the scheme.

Johnson launched the London Rental Standard in May last year. It is the first citywide scheme to accredit good landlords and letting agents.

He said that he hoped to “improve the experience of everyone involved, from landlord to tenant, with a clear set of good practice rules.”1

The scheme aimed to accredit 100,000 landlords and agents by 2016.

The news release for the launch read: “In time, the London Rental Standard will become an instantly recognisable feature of London’s lettings industry, helping Londoners to pick between the huge array of landlords and agents on offer.”1 

Boris Johnson's Landlord Scheme is Unsuccessful

Boris Johnson’s Landlord Scheme is Unsuccessful

However, over a year later, the official website indicates that by mid-June, just 14,452 landlords and 339 letting and management agents had signed up, significantly below the 2016 target.

A study by the Green Party claimed that the Rental Standard has failed to appeal to letting agents or tenants, despite a marketing budget of £250,000.

On Zoopla, just 114 advertisements mentioned the scheme, 0.2% of the 62,521 total listings of rental homes in July. Most were listings posted by one agent, Prime Estate Agents in Whitechapel, which included the Rental Standard in a list of schemes it is accredited by.

Darren Johnson, Green London Assembly member, comments: “Voluntary accreditation schemes only work if tenants know how to look out for the badge, creating demand that landlords might respond to. Even the agents who are members of the scheme don’t publicise it and don’t let tenants search for accredited landlords.

“The scheme is a flop and is no substitute for adequate regulations.”1

He believes that the answer is compulsory licensing for all landlords, saying that more secure tenancies and rent controls are needed to protect tenants.

Generation Rent’s Dan Wilson Craw says there are numerous issues with the Rental Standard: “It is basic, basic stuff. If a landlord isn’t already doing most of these things, they’re probably breaking the law.

“The scheme is a long way off critical mass and having currency among tenants. Even if it achieved that, there’s nothing forcing landlords who don’t comply to get better and with demand so high, those landlords will always find tenants.”1

Higher profile agents, such as Foxtons and Winkworth, have blogged about joining the scheme in the past, but the Green Party has noted that it is not mentioned in their advertisements for rental properties.

A spokesperson for Foxtons says: “As one of the initial agents to sign up to the London Rental Standard, Foxtons fully supports any initiative that helps to raise standards within the private rental sector and with the backing of the Mayor of London, it’s gained great momentum.”1

Deputy Mayor for Housing, Land and Property, Richard Blakeway, notes that London was one of the first cities to set professional standards for its rental sector.

“Over 130,000 properties are now managed under the London Rental Standard, with a rapid growth in the number of accredited agents who manage the bulk of rental homes,” he says.

“This ambitious project is one of a range of policies pioneered by the Mayor to support 2m Londoners renting, including the creation of a long-term, institutionally backed private rented market and rent to buy to help people convert rent into equity.”1

1 http://www.theguardian.com/money/2015/jul/20/boris-johnson-good-landlord-scheme-flop