Posts with tag: NLA

Now the NLA has Issued its Budget Wish List

Published On: February 2, 2017 at 10:06 am

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Following last week’s wish list to the Chancellor from the Residential Landlords Association (RLA), the National Landlords Association (NLA) has issued its own Budget wish list ahead of the announcement in March.

The group has once again expressed its opposition to forthcoming changes to tax relief on finance costs, as the Chancellor prepares to offer his Spring Budget on 8th March 2017.

Now the NLA has Issued its Budget Wish List

Now the NLA has Issued its Budget Wish List

The current rules that allow landlords to offset all of their finance costs, including mortgage interest, against tax will, from 6th April this year, be phased out to the basic rate of tax.

By April 2020, the consequences of Section 24 of the Finance Act 2016 will mean that it is likely that higher rate taxpayers will only receive 50% of the relief that they current get, which will limit their rental returns, as they will be required to pay significantly more Income Tax.

The NLA has also issued three demands in its Budget wish list – around half of the number of requests the RLA made – acknowledging that the Government’s priorities lie elsewhere.

The organisation recognises that the Government is “preoccupied with Brexit” while the country’s finances are “stretched to breaking point”, with “multiple demands and unacceptably high debt levels”.

A statement from the NLA continued: “Therefore, whilst drawing attention to our past submissions, in which we suggested alternatives to Section 24, in this submission, we have only asked for three very specific things.”

The NLA’s Budget wish list is as follows:

  1. Introduce a Capital Gains Tax (CGT) cut or taper 

The NLA argues that this will help to facilitate the disposal of poorly performing property investments, and diversify people’s financial investment portfolios. The group has sent costings to the Treasury, which show that this measure does not need to be as expensive as some fear.

  1. Extend business asset rollover relief to allow restructuring of portfolios

The organisation argues that this will enable increased property sales and greater mobility between tenures, while allowing landlords to reduce the gearing of their portfolios, thereby protecting against market shocks and improving stability.

  1. Reintroduce the Landlords’ Energy Saving Allowance (LESA)

From April 2018, new tenancies will not be able to be granted for properties with Energy Performance Certificate (EPC) ratings of F or G. Following the collapse of the Green Deal, the NLA is urging the Government to help mitigate the major capital costs that over 300,000 landlords are facing in order to stick to the law.

What do you think of the NLA’s Budget wish list?

Families top renting group in the UK

Published On: June 23, 2016 at 11:43 am

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Families have risen to become the most common household type in the private rented sector in Britain for the first time.

Research from the National Landlords Association shows that more landlords now let to families with children, accounting for 48% of the sector. This is closely followed by young couples, who make up 47%.

Shifting household trends

The latest data indicates a shift in comparison to four years ago, when young singles accounted for 53% of the market, followed by young couples and families with children.

Now, the private rented sector makes up nearly five million households in the UK. According to the English Housing Survey, the proportion of families in the sector has risen from 30% in 2004/05 to 37% in 2014/15

Of those families surveyed, privately renting a property is a steady option. 76% reported that they were happy with the length of their tenancy. 79% said that their tenancy was either renewed or stayed constant at the end of their initial fixed term.

As a result, the perception of renting a property as a barrier to family life is being snuffed out. 77% of renting families said they considered their rental property to be their home. 65% said they had received the green light to personalise their property however they wish.

Families top renting group in the UK

Families top renting group in the UK

Contrast

Richard Lambert, chief executive officer at the National Landlords Association, said, ‘there is a genuine contrast between the experience of renting in the 21st century shown in this research and the prevailing housing culture in Britain that only views it as stopgap, something to be tolerated while waiting for the opportunity to buy your own house.’[1]

‘There is a rogue element to private housing that ruins the experience for far too many people but for the majority of the 11 million private renters, renting offers an inclusive and flexible option which works for them in their current circumstances,’ he added.[1]

Concluding, Lambert said, ‘contrary to popular perception, there’s growing evidence that renting is no obstacle to putting down roots and calling somewhere home. The majority of landlords want good, stable, long term tenancies and these findings show that more and more are becoming receptive to helping families make a home in the private rented sector.’[1]

[1] http://www.propertywire.com/news/europe/uk-rental-homes-research-2016062112055.html

Third of landlords undecided on EU referendum vote

Published On: June 15, 2016 at 10:58 am

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New research from the National Landlords Association has revealed that 30% of buy-to-let landlords are still undecided on how to vote in next week’s EU referendum.

Findings from the report show that landlords are evenly split on how to vote, with 35% intending to vote leave and 35% voting remain.

EU membership

In addition, residential landlords were found to be divided on whether of not EU membership would be beneficial to their future business ventures. 53% said that membership would assist them, while 47% said it would be detrimental.

By region, London has more landlords looking to vote remain in the EU than anywhere else in the UK. In comparison, more landlords in the North East wish to leave than any other British region, with 44% intending to back the leave campaign.

Third of landlords undecided on EU referendum vote

Third of landlords undecided on EU referendum vote

Divisions

Richard Lambert, Chief Executive Officer at the National Landlords Association, observed, ‘landlords, much like the rest of the British public are divided on how they will vote in the EU referendum which means the decision looks to go down to the wire.’[1]

‘The Remain and Leave campaigns have both had difficulty persuading the public on the benefits or hazards of a Brexit vote and they have struggled to provide any clear analysis about the impact exiting the EU would have on the buy-to-let market,’ Lambert continued.[1]

Concluding, Mr Lambert feels, ‘as a result, landlords appear more likely to vote in this referendum based on their attitudes to issues such as national security, trade and immigration, rather than the effect on the UK property market or their business.’[1]

[1] http://www.propertyreporter.co.uk/landlords/third-of-landlords-undecided-on-brexit-vote.html

Welsh Tenants are the Most Satisfied with Their Landlords

Published On: March 2, 2016 at 12:12 pm

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Welsh Tenants are the Most Satisfied with Their Landlords

Welsh Tenants are the Most Satisfied with Their Landlords

Tenants in Wales are the most satisfied with their landlords than in any other part of the UK, says new research from the National Landlords Association (NLA).

A huge 92% of renters in Wales say that they are satisfied with their landlord. Tenants in the East Midlands were second on the list, with 83% saying they are satisfied – the highest figure for England.

Those in the North West and South West followed, with 82% satisfaction.

However, a stark regional variation in satisfaction was exposed on either side of the Pennines. While 82% of tenants in the North West are satisfied with their landlord, just 67% of renters in the North East said the same – the lowest satisfaction level in the whole of the UK.

On average, eight out of ten tenants (79%) in the UK are satisfied with their landlords.

Position

 Region

No. of tenants satisfied with their landlord
1 Wales 92%
2 East Midlands 83%
3 North West 82%
4 South West 82%
5 South East 80%
6 Scotland 79%
7 West Midlands 79%
8 Yorkshire and the Humber 73%
9 London 72%
10 East of England 71%
11 North East 67%

The CEO of the NLA, Richard Lambert, comments on the findings: “Good landlords make up the majority of the market, so it’s not surprising that the majority of tenants are satisfied.

“Private renting is far from the insecure, uncertain and unhappy picture that it is often made out to be, and these findings will help to reassure existing renters and those looking to make their home in the private sector.”

He continues: “The NLA provides a range of training and accreditation opportunities for landlords in order to help them develop and improve standards, which is good news for the minority of tenants who are dissatisfied.

“However, this is only part of the solution, and both central and local government must also commit more resources to tackling poor standards and weeding out bad landlords.”1 

The NLA’s results arrive as the latest English Housing Survey reveals that the average private rental sector tenancy now lasts four years.

1 http://www.landlords.org.uk/news-campaigns/news/landlord-satisfaction-across-uk-highest-in-wales

40% of landlords considering forming a ltd company

Published On: February 20, 2016 at 9:05 am

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Over 40% of landlords are looking into making their business a ltd company, according to new research from the National Landlords Association (NLA.)

Presently, just only 1% of respondents said that they had already chosen to incorporate. The NLA believe this is due to the high cost of transferring personally held property into a private limited company.

Intentions

Additionally, data shows 31% of landlords have no intention of switching their properties to a limited company. 29% are still not sure about what they are going to choose in regards to incorporation.

Mortgage interest relief for buy-to-let landlords is to be levelled at the basic rate of income tax (20%) by 2021 and will begin to be phased back from April 2017. Landlords then will no longer be able to remove the cost of mortgage interest before they declare their taxable profit. The new moves will see them receive a tax credit of 20% of their mortgage interest costs.

The NLA has called the alterations, ‘The Turnover Tax,’ as landlords’ tax will be worked out on the rental income they earn instead of any profits. and will drive many basic rate payers up into a higher tax bracket. Higher rate payers will be left with increased bills.

40% of landlords considering forming a ltd company

40% of landlords considering forming a ltd company

Transferring

Landlords structured as private limited companies will be exempt from the tax alterations. Instead, they will only pay corporation tax on their profits.

‘Transferring personally held property to a limited company isn’t a straightforward process, so it’s not surprising that so few have taken this action so far,’ noted Richard Lambert, Chief Executive Officer at the NLA. ‘Landlords need to do their research but many will realise that incorporating simply doesn’t stack up financially; doing so will incur capital gains and potential stamp duty charges, which means the process may be prohibitively expensive.’[1]

Richard Price, Executive Director of the UK Association of Letting Agents, also noted, ‘while just one per cent have incorporated so far a significant proportion are still considering the move. If landlords follow through with these intentions then it’s likely that more and more will take a hands-on approach to managing their portfolios in the future, which would mean less business to go around for agents and certainly less of a need for full service offerings.’[1]

‘The changes to taxation are forcing landlords to re-evaluate their business and their place in the market, so our advice for agents is to begin talking to your clients about their intentions over the next few years and consider how you’ll meet their changing needs in a way that is distinct from your rivals,’ Price concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/incorporating-doesnt-stack-up-for-majority-of-landlords.html

NLA launches new ‘Rent on Time’ service

Published On: January 15, 2016 at 11:41 am

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The National Landlords Association has today launched a new service to try and guarantee landlords’ rental income, should tenants slip behind on or fail to pay their rent.

NLA Rent on Time has been announced as incidences of rent arrears in the private rented sector increased by 13.8% between the second and third quarters of 2015.

In addition, research from the NLA indicates that 37% of landlords experienced rental arrears in the last year.

Features

Including a fully automated online ordering system and a telephone support line, NLA Rent on Time is available for new and existing tenants. What’s more, the service is offered at a discounted price for NLA members.

‘Rent arrears is one of the biggest risks of letting property so, as the largest landlord association in the UK, we wanted to assure landlords they need not worry if their tenant doesn’t pay their rent,’ said NLA Chairman Carolyn Uphill.[1]

NLA launches new 'Rent on Time' service

NLA launches new ‘Rent on Time’ service

‘The service provides peace of mind for all landlords by managing the rent collection process and paying it into your account when it suits you, even if your tenant fails to pay,’ she continued.

Concluding, Uphill said that the new service, ‘takes the hassle out of dealing with missed rents, by working directly with your tenants in order to resolve the issues and, if necessary, initiating property repossession at no additional cost.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/1/nla-launches-rent-on-time-service