Posts with tag: landlords

DPS calls for more support over Right to Rent

Published On: October 6, 2016 at 1:08 pm

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The Deposit Protection Service has called for more support and information to be offered to buy-to-let landlords, in order for them to understand the Right to Rent Scheme.

The Government announced this week that from December, it will be a criminal offence for landlords to let their property to people who are in the UK illegally.

Illegal letting

During her first speech to the Conservative Party conference as Home Secretary, Amber Rudd informed activists that the Government plans to clamp down on illegal immigration. She plans to attack landlords providing people who are not legally permitted to live in the UK.

Rudd said: ‘From December, landlords that knowingly rent out property to people who have no right to be here will be committing a criminal offence. They could go to prison.’[1]

However, the Deposit Protection Service is concerned that there is insufficient information available to landlords to protect them from breaking the law.

DPS calls for more support over Right to Rent

DPS calls for more support over Right to Rent

Fouling foul

Julian Foster, managing director at the Deposit Protection Service, said: ‘Although landlords will always want to operate within the law, changes in the regulatory environment can mean that many fall foul of legislation without realising it.’[1]

‘Pressures on landlords can be significant, particularly those who are in fulltime work, so it’s vital that they receive sufficient information and support whenever the rules change. Anyone letting out property must fully understand regulations that affect them as well as their obligations as a landlord to both their tenants and the authorities,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/landlords-need-support-to-avoid-unwittingly-falling-foul-of-illegal-immigrants-legislation

 

BLT Ltd companies applications rise to 63%

Published On: October 6, 2016 at 10:19 am

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New data released by Mortgages for Business indicates that 63% of applications from buy-to-let landlords purchasing properties are being made through limited companies.

This figure is a substantial rise from the 21% recorded just before alterations to mortgage interest tax relief were announced by previous Chancellor George Osborne in 2015.

Changing trends

There has been a substantial change in landlords’ behaviour, with many investors choosing to incorporate their business.

In contrast, the number of remortgage applications made via limited companies remained at a fairly constant level.

For market share, buy-to-let market products available to limited companies make up 16% of overall products. This is a rise from 13% recorded in the first half of the year.

Further data from the report shows the average rate of a buy-to-let mortgage slipped to 3.3% at the end of September, down from 3.7% in June. Rates for products available to limited companies fell to an average of 4.3%. This means that rates available to limited companies are only roughly one percentage point greater than the average market value.

BLT Ltd companies applications rise to 63%

BLT Ltd companies applications rise to 63%

Rates

A Mortgages for Business spokesman said: ‘Many lenders with product for both personal borrowers and limited companies, offer the same rates to both. At the moment, some of these lenders accept only SPV limited companies, including Foundation Home Loans and Paragon. Some of the more specialist lender and I’m primarily of Aldermore Bank, InterBay Commercial, Shawbrook and our own lending band Keystone Property Finance, also offer the same rates to trading limited companies.’[1]

[1] http://www.propertyreporter.co.uk/landlords/btl-ltd-co-purchase-applications-rise-to-63.html

 

 

Landlords Could Take Council to Ombudsman over Maladministration

Published On: October 6, 2016 at 9:48 am

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A group of landlords in Bristol could take their council to the ombudsman over maladministration regarding a proposed selective licensing scheme.

Following the success of the Somerset Property Network this summer, a group of landlords met in Bristol to discuss the way forward on selective licensing issues last week.

On the eve of the Eastville and St George licensing application deadline, the buy-to-let landlords got together to discuss their collective belief that the process of the initial licensing consultation was careless and unnecessary.

Back in August, the Somerset Property Network was formed after a group of landlords teamed up to challenge North Somerset Council’s proposed selective licensing scheme for Weston-super-Mare.

The group threatened to take the council to judicial review if the plans went ahead. At the start of September, it was announced that the Somerset Property Network had overthrown the council’s proposals.

Although the deadline for judicial review has passed for the Eastville and St George scheme – it must be put in within three months of the scheme being approved – there is still the option of taking Bristol City Council to the ombudsman over maladministration.

This came to light after Bristol landlord Anne Pargeter told her story at last week’s meeting:

“I believe that the whole thing was a shambles from the very beginning; the statistics they’ve come out with, how the consultation said the areas of Eastville and St George are in the lowest 10% for deprivation, and yet their own stats on the Bristol Council website on multiple deprivation figures state that Eastville and St George are in the top 13th and 15th, and not in the lowest 10% at all.

“I looked at this and kept thinking there is something really, really wrong here, so when I got the cabinet meeting papers of how they had come to the decision of how they were going to approve this scheme for Eastville and St George, they used three points of evidence. I discussed this with Dave Collis [Bristol City Council’s Private Housing Licensing Manager] last week.

Landlords Could Take Council to Ombudsman over Maladministration

Landlords Could Take Council to Ombudsman over Maladministration

“One, the housing condition survey of 2011. About 110 pages long, it talks about all the private housing in Bristol, but doesn’t distinguish between private housing and private rented accommodation, so really there were no statistics that they could use, because there weren’t any other than shaded maps for the whole of private housing in Eastville and St George. Besides, rented accommodation is only 21% of total private accommodation anyway.

“Two, the 427 complaints. I don’t know whether you’ve read the consultation, but for the year 2014/15, 427 complaints were received by the council for Eastville and St George, and, according to the council, this cabinet report was 24% of the total complaints in Bristol. When I mentioned this to Mr. Collis, he said: ‘That’s not true, that’s not true at all.’ I said: ‘I’m sorry, I’ve got your cabinet report in front of me, and that’s what is actually written down here.’ Collis replied: ‘Oh, I better go and have a look at that.’ I thought, yes, you better had.

“Three, the survey. Then we got onto this survey. According to the council, they were really pleased because 2,248 completed the online survey; e.g. 1,000 of those were tenants, 356 landlords or agents, etc. 1,287 said they were experiencing poor management by their landlord, 1,347 said they’d experienced poor housing conditions, etc. I mean, it was a sob story, it really was! And I looked on there and thought, this is a Survey Monkey you know, come on, I mean, anyone is on Survey Monkey!

“I looked up Survey Monkey and I found that somebody had actually gone on this site and said: ‘Come on guys, only 81 tenants have responded to this survey, we need to get others on it.’ And people from outside the Bristol area were responding with things like: ‘F-ing landlords, etc.’ Which is where these 2,248 people came from.”

Pargeter continued: “I took a photograph of this website, as the consultation finished on November 3rd and started in the beginning of August, and this was posted on October 6th. So by October 6th, only 81 tenants in the area had responded to this survey, which made me suspicious of these 427 complaints, because that was in the same year.

“So I asked Mr. Collis: ‘Only 81 tenants have bothered to fill in this survey, so where are these 427 complaints anyway?’ – which I’ve asked for under the Freedom of Information Act, but they keep stalling for various things, sending me wrong bits of paper, etc. – And I thought, surely these 427 complaints would be first in the queue to fill in this survey to say what they think of their local landlord? But no! His reply was: ‘Oh, they’ve probably all moved on by now.’ And I thought, what, in the same year, 2014/15?

“So anyway, I believe all this information within the consultation is fraudulent and untrue, and I said to Mr. Collis: ‘You’ve actually used this survey to fund your evidence to bring this in. And all these statistics that you’ve given to me here, that you’ve published to the council and given to the Lord Mayor – who agreed with this – they are completely false, and you can’t prove that they aren’t.’ He didn’t have anything to say and just continued to mumble in a very confused fashion and went away!

“I have now set up a meeting with Councillor Paul Smith, the Cabinet Member for Homes, on October 21st, so let’s see how that goes.”

Tenant Referencing’s Paul Routledge, responded to Pargeter: “What Anne has here is for infinity and beyond. Landlords in Eastville and St George can’t overturn the selective licensing decision, because it’s gone past its judicial review date, but the law is still on these landlords’ side, if they can prove that the case was perfunctory; that there were lies, deceit, inadequacies and corruption within the initial consultation to get it through.

“All of these are the definition of maladministration. Maladministration is actually an easier route to go down than judicial review, because you can take it to the ombudsman. So all Anne needs to do is build a case as an individual, and then make the case to the ombudsman to get her £470 back. Once she’s successfully done that, the precedent will be set for the other 2,000-odd landlords in Eastville and St George to get their perfunctory licensing fee back.”

He explains the needlessness of the scheme: “Take Stapleton road as an example. The Government guidelines on selective licensing mean that they have to be able to prove that at the point of selectively licensing an area, it has to specifically have 20% of poor housing stock. Stapleton Road figures, as supplied by Bristol City Council, show us: Out of 1,100 private rental sector homes, 199 houses had serious health and safety issues – 199 versus 1,100 is 18.9% (Remember the Government target is 20%, so that is 1.1% under what they’re allowed to selectively license under Government guidelines. So, immediately, the figures they’ve quoted are perfunctory).

“Out of those 199 serious health and safety issues, eight landlords were prosecuted; not for poor housing conditions, but for not getting a license! Three landlords were prosecuted for not bringing private rental sector housing stock up to standard. There were 250 complaints to the benefit office for benefit fraud, anti-social behaviour and violence within the family. Sorry, but what do these have to do with private rental sector landlords?

“And this is why we need more landlords behind us to take this further with Bristol Council. So Bristol landlords haven’t lost anything yet.”

He continues: “Standing alone can become quite overwhelming, but the way forward is in numbers, proven by the North Somerset campaign this summer. Selective licensing is all about public control over private rented sector homes, and has been on the agenda for a long time. Due to the housing crisis and the selling off of council houses, local authorities have to house people, and the only way they can do it is through the private rental sector. Landlords, you are their stock, you are in their sights, your stock is their stock.

“Once they’ve finished selectively licensing this country as much as they possibly can, by stealth, they will then consider capping rents. Once that’s started, it’s the beginning of the end and they’ll have complete control over the private rental sector in this country.”

He insists: “Landlords in Eastville and St George areas need to join the Bristol Landlord Facebook group and start spreading the word about Anne’s findings. I will be attending the meeting with Councillor Smith in October, as I think we have a very strong case for maladministration – Watch this space, as they say!”

If you’re a Bristol landlord, join the fight on these issues.

New tool lets landlords compare rents online

Published On: October 5, 2016 at 2:27 pm

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A new tool allowing buy-to-let landlords to snoop on rents being charged by their peers online has been launched by Landbay.

The lenders’ Rent Check service permits landlords to make sure that they are receiving sufficient rent from their tenants, by comparing their own rental income with competitors.

Trends

Using UK wide figures, the postcode widgets take the data from Landbay’s monthly Rental Index. This Index maps both monthly and annual trends in rents, by geographic location and by number of bedrooms.

In addition, this new tool allows users to access data which shows how rental movements for a specific property type have altered over time. These figures give unique insights into both movement in the market and social mobility.

New tool lets landlords compare rents online

New tool lets landlords compare rents online

John Goodall, CEO and co-founder of Landbay, noted: ‘The UK is in the midst of a housing crisis and a severe supply/demand imbalance, meaning the rental property market is buoyant. Together, Landbay’s Rental Index and the Rent Check tool will give both tenants and landlords a simple way of accessing data from across the UK, not only providing an in depth view of the market, but helping inform their next move.’[1]

‘In times of low interest rates and a lack of home ownership and affordability, we’re pleased to be able to offer people a way of affirming the rent they are paying in their region,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/new-tool-enables-landlords-to-compare-rents-online

New property listings up by more than 10% in September

Published On: October 5, 2016 at 8:40 am

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New property listings in Britain rose by more than 10% month-on-month during September.

In fact, more than two thirds of UK towns and cities experienced a rise in supply, according to latest research conducted by online estate agent House Simple.

Increases

Total supply rose by 10.4%, with the largest increases reported in Basildon, Essex, where supply rose by a substantial 68.1%. London saw a rise of 16.5%.

Hereford also saw a massive increase, with supply up by 58.3% and in Lichfield, there was a rise of 53.5%. In Hemel Hempstead, property listings were up by 52.2% and in Truro 48.3%.

At the other end of the scale, supply in Falmouth, Cornwall slipped by 27.5%. Other notable falls were evident in Sutton Coldfield (-25.8%), Ely (-22.9%) and Stockton on Tees (-22.2%).

New property listings up by more than 10% in September

New property listings up by more than 10% in September

Post-Brexit high

The property market in the UK continues to defy predictions of post-Brexit chaos, returning to some kind of normality following the traditional summer drop.

Alex Gosling, chief executive officer of House Simple, noted: ‘The figures don’t show an uplift in new listings after a typically slow August. The more than 10% boost in new properties is evidence of a resilience in the housing market that many didn’t expect. Many clearly believe that the market is strong enough to sell in despite the ongoing political uncertainty.’[1]

‘What was a sellers’ market before the European Union membership referendum vote and buyers’ market in the initial months after it may now be somewhere in between. This is no bad thing,’ Mr Gosling added.[1]

[1] http://www.propertywire.com/news/europe/new-property-listings-10-uk-month-month/

Two mortgage lenders cut BTL rates

Published On: October 4, 2016 at 11:56 am

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A brace of buy-to-let mortgage lenders have today announced changes and additions to their existing products.

Both Virgin Money and Aldermore have made the alterations, as competition in the market remains fierce.

Cuts

Virgin Money has announced cuts to both its buy-to-let and residential products. A new £300 cashback incentive has also been launched for customers taking advantage of selected two, three and five-year fixed rate deals.

Key alterations to buy-to-let rates at Virgin include:

  • a two-year fixed rate deal with up to 70% LTV, reduced to 2.09%.
  • a five-year fixed rate deal up to 70% LTV, reduced to 3.24%
  • a two-year tracker rate deal up to 75% LTV, reduced to 2.29%

Peter Rogerson, Virgin Money’s Commercial Director for Mortgages, noted: ‘The reductions we have made to our range ensure that we continue to offer attractive options for purchase and remortgage customers looking for residential and buy-to-let loans at a range of different deposit levels. We think these products will be well-received by the market which remains upbeat, as reflected in our recent poll of intermediaries where nearly 80% said they expect the mortgage market to grow in 2017.’[1]

Two mortgage lenders cut BTL rates

Two mortgage lenders cut BTL rates

Limited edition

Aldermore has also launched a range of limited edition buy-to-let mortgage products for investors looking for loans of up to £1m.

Rates on the firm’s five-year fixed rate deals have been cut by up to 0.74%.

New rates begin from:

  • 79% at up to 70% LTV
  • 99% at up to 75% LTV
  • 25% at up to 80% LTV

In addition, a new term variable rate buy-to-let mortgage is available at 3.68%, up to 75% LTV.

Charles Haresnape, group managing director of mortgage at Aldermore, said: ‘The change in the base rate has led to the average five-year fixed rate for a 75% loan-to-value buy-to-let mortgage falling below 4% for the first time and now is a great time for landlords to remortgage some or all of their portfolios.’[2]

‘Buy-to-let as an investment continues to be underpinned by strong fundamentals, with tenants who signed up to a new tenancy during the month of August agreeing to an average rental increase of 3.1% year on year. Aldermore looks to support landlords wherever possible, and our recent product changes are a testament to our commitment to those in the buy-to-let market,’ he added.[2]

 

[1] http://www.propertyreporter.co.uk/finance/btl-rates-cut-060-at-virgin.html

[2] www.landlordtoday.co.uk/breaking-news/2016/9/new-five-year-fixed-b2l-range-launched-by-aldermore