Posts with tag: landlord law

Right to Buy Could be Extended to Private Tenants

Published On: January 13, 2016 at 9:24 am

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A Conservative MP believes that the Right to Buy scheme may be extended to private tenants in the near future.

Right to Buy Could be Extended to Private Tenants

Right to Buy Could be Extended to Private Tenants

Mark Field, the MP for the Cities of London and Westminster, says the policy that allows tenants to buy their homes at a discount could soon be extended to those living in properties provided by private landlords.

Speaking in the House of Commons yesterday, where the Housing and Planning Bill was being debated, Field stated: “It has already been mooted, I think, by the opposition benches that buy-to-let landlords should be forced to sell their homes to tenants.

“I think that would be entirely wrong, but I think it would probably be an extension of what we are proposing.”

A key measure of the Housing and Planning Bill is to extend Right to Buy to housing association tenants.

Field believes the policy would reduce housing stock and result in properties being rented out to high earners.

He observed: “That’s what has happened to many of the housing estates in my own constituency, where essentially, the second or third buyer after a Right to Buy has been, dare I say it, a well-paid yuppie.”1

Field added that extending Right to Buy to social housing tenants would be unfair on private renters, whose voices are not heard so loudly.

Yesterday, the Housing and Planning Bill made it through its third reading in the House of Common and is now due to go to the House of Lords.

Alongside the extension to the Right to Buy scheme, it will introduce banning orders on landlords and letting agents, and implement fines of up to £30,000 for rogue landlords or agents.

For the latest changes to landlord law and daily updates, remember to check LandlordNews.co.uk.

1 http://markfieldmp.com/news-a-articles/housing-and-planning-bill/

 

 

Angry Landlords Hope to Tackle George Osborne

Published On: January 4, 2016 at 12:26 pm

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Two private landlords have launched a campaign to challenge Chancellor George Osborne’s plans to cut the amount of mortgage interest that buy-to-let landlords can claim against tax.

Chris Cooper and Steve Bolton are seeking a judicial review of Clause 24 of the Finance Act 2015.

Angry Landlords Hope to Tackle George Osborne

Angry Landlords Hope to Tackle George Osborne

The changes were announced in the summer Budget, meaning that landlords will be taxed on turnover, not profits.

Some landlords could find themselves in a higher tax bracket and could even pay tax when they are making a loss.

Opponents believe that the changes target smaller landlords, with wealthier investors without mortgages and companies not affected.

Cooper and Bolton claim that Clause 24 breaches human rights and/or EU law.

Landlords have warned that as a result, rents will be pushed up, harming private tenants.

The pair had hoped to raise an immediate £15,000 and a further £35,000 on the website Crowd Justice.

The total £50,000 target has now been met.

Cooper and Bolton hope to tackle the changes, as they believe the new law breaches “a long-established principle of taxation that expenses incurred wholly and exclusively for the purpose of the business are deductive when calculating the taxable profits”.

Cooper is a part-time landlord and Bolton is the founder of Platinum Property Partners, a buy-to-let training franchise firm.

Bolton comments: “It’s not clear why the Government has chosen to just launch an attack on buy-to-let owner-operators with mortgages. It’s a tax from Alice in Wonderland – truly absurd and divorced from real life. Not only is this tax grab unfair, undemocratic and underhanded, but we believe that it could also be unlawful.”1 

The pair plans to hire Omnia Strategy to challenge the Chancellor.

A pre-action protocol letter will be sent to the Government this month, with an application for judicial review to be issued by 17th February.

A petition against the changes has also been launched. It is currently almost halfway to forcing a Parliamentary debate on the issue and will close on 27th January.

The crowdfunding page can be found here: https://www.crowdjustice.co.uk/case/clause24/

And the petition is here: https://petition.parliament.uk/petitions/104880

1 http://www.platinumpropertypartners.co.uk/articles/ppp-to-be-part-of-a-legal-campaign-to-challenge-government-on-proposed-changes-to-mortgage-tax-relief/

Government Confirms Change to Wear and Tear Allowance

Published On: December 10, 2015 at 12:56 pm

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Government Confirms Change to Wear and Tear Allowance

Government Confirms Change to Wear and Tear Allowance

The Government has announced that it will replace the current Wear and Tear Allowance system for buy-to-let landlords, after the responses to a consultation were published.

HM Revenue & Customs (HMRC) released the 170 responses to the 12-week consultation on changing the Wear and Tear Allowance – 137 of these were from individuals.

The Government confirmed that under the new system, landlords will only be reimbursed for actual expenditure.

The HMRC summary of the responses admits: “Many respondents expressed support for maintaining a Wear and Tear Allowance, principally because they saw it as simple.”

However, “a significant number of stakeholders agreed with the Government that the Wear and Tear Allowance was not fair, both as it only applies to landlords of fully furnished properties and because it provides relief where no expenses have been incurred”.

Considering the consultation, HMRC says the Government is keen on “minimising complexity” in the way the Allowance is paid in the future.

It adds that the Government has ruled out extending the scope of the Allowance and has decided against any transitional arrangements. However, in the future, the Allowance will “include the cost of disposing of old assets”.

The Government has now published draft legislation for technical discussion on how the Allowance will be administered in future. There are now eight weeks of consultation.

The complete responses and details of the further consultation can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/483726/Replacing_wear_and_tear_allowance_with_tax_relief_for_replacing_furnishings_in_let_dwelling_houses_-_summary_of_responses__M8067_.pdf

Remember to check LandlordNews.co.uk for the latest landlord law and advice.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Advice on Serving Section 21 Notices

Published On: December 2, 2015 at 12:27 pm

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The Association of Residential Letting Agents (ARLA) has teamed up with Fixflo, a repairs software specialist, to create a series of timelines that help letting agents understand the changes to section 21 notices.

The new rules apply to every new tenancy in England that started on or after 1st October.

The timelines highlight the importance of providing an adequate response to each repair request from a tenant, if an agent or landlord wishes to be sure that a section 21 notice cannot be invalidated.

Managing Director of ARLA, David Cox, states: “It has become apparent through speaking to our members that the full scope of the changes has not been fully understood across the industry.

“Put simply, if you provide what the legislation considers to be an adequate response to every repair request, then any section 21 notice that you serve cannot be invalidated for being retaliatory.

“While each agency will need to make its own assessment of the legislation, as the law remains subject to interpretation by the courts, in the absence of further Government guidance, we consider that the Fixflo method for handling the need to provide an adequate response constitutes best practice for the lettings industry.”1

Legal lettings expert Tessa Shepperson adds: “I’m a trained lawyer who specialises in this area of law and it took me several hours to fully get to grips with these changes, which should, if properly drafted, have been readily understood by non-lawyers.

“While it’s still open for the courts to interpret the legislation as they see fit, providing an adequate response to every repair request and being able to evidence that response is the best way for anyone managing a property, whether landlord or agent, to protect their business.”1

Any cases under the new rules will not reach the courts until April 2016, due to timing restrictions.

Check back to Landlord News for the latest landlord law updates.

1 http://www.fixflo.com/blog/2015/12/Section-21-Changes-New-Guide-For-Letting-Agents

More Landlords Fined Over HMO Breaches

Published On: November 25, 2015 at 9:59 am

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A couple has been found guilty of 26 offences regarding a rental property. They have been ordered to pay £26,822.

More Landlords Fined Over HMO Breaches

More Landlords Fined Over HMO Breaches

Dr. Kola Akindele and his wife Vanessa were prosecuted by Boston Borough Council at Skegness Magistrates’ Court.

They had denied all charges, but presiding magistrate Kevin Moody stated that he did not believe the reasons Mrs Akindele gave for how the property came to be in such a poor condition.

Mrs Akindele blamed the flood of December 2013 for the rental property’s state.

Magistrates were told that the property was operated as a House in Multiple Occupation (HMO), but it was not licensed and did not have fire detection equipment fitted.

Additionally, there were problems with water penetration through a flat roof, damp and hazardous electrical systems.

Moody said that the fines reflect what could have happened at the property; serious injury or even death of tenants.

Dr. Akindele did not give any evidence.

In a separate case, a landlord was fined £7,300 over safety breaches.

Sheffield City Council brought the case against John Cashin for offences relating to four properties.

The landlord pleaded guilty to charges regarding safety breaches and for failure to license two of the properties as HMOs.

It is believed that he manages 28 properties and is described as a professional property manager.

Follow our advice for landlords to avoid being caught out by the law.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buy-to-Let Mortgage Market is Thriving

Published On: November 17, 2015 at 12:51 pm

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Categories: Finance News

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Demand for buy-to-let mortgages is booming, as confidence in the sector as an investment continues to grow and rents rise, according to data analyst Moneyfacts.co.uk.

Buy-to-Let Mortgage Market is Thriving

Buy-to-Let Mortgage Market is Thriving

Mortgage lenders are therefore taking advantage of soaring demand and are competing in an attempt to attract new investors.

Figures from Moneyfacts reveal that lenders are doing all they can to entice new borrowers. The average rate has dropped significantly, while the amount of deals with no arrangement fee has more than doubled in just 12 months.

Finance Expert at Moneyfacts, Charlotte Nelson, comments on the findings: “The BTL [buy-to-let] market is clearly booming, with rents at a high and BTL mortgage rates dropping to historic lows, there is great potential for prospective landlords.

“The finding that the average two-year fixed rate has fallen by 0.37% in just one year is particularly good news for older borrowers who are looking to access their pension pots to invest in bricks and mortar.

“However, the Bank of England has recently gained new powers to regulate the buy-to-let market, which may mean that the end is nigh for these low-cost deals. Potential landlords looking for a fixed rate should therefore act fast to ensure they are not disappointed.”

She continues: “Future legislative changes to the BTL market could also mean potential profits will fall, so investors need to keep an eye on any announcements to ensure BTL will still be profitable for them.

“The increase in deals with no fee is a sign that BTL lenders are trying to diversify and offer borrowers more choice than ever before. However, borrowers still need to weigh up the true cost of a mortgage to ensure the best deal is secured. Anyone thinking about entering this sector would be wise to seek the advice of an independent financial adviser to see if BTL really is the best place for their investment.”1

If you are considering becoming a buy-to-let landlord, or have rental properties already, keep up to date with the latest landlord law, finance news and goings on in the property market on LandlordNews.co.uk.

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/moneyfacts-buy-to-let-mortgage-market-is-booming