Author: Edward Carter

UK Lettings to Outstrip Sales for the First Time since 1930s!

UncategorizedEdward Carter
As house buyers struggle to find affordable properties to buy, rentals look set to outstrip the sales market for the first time since before the Second World War. I read recently that the UK’s largest estate agency chain, Countrywide, has acknowledged that the sales market cooled dramatically at the end of 2016.  There was a boom in March as landlords attempted to snap up properties before the changes in Stamp Duty. Since then, though, the uncertainty caused by the Brexit vote, lack of properties coming onto the market for sale and general rising prices has led to a boom in lettings. Countrywide Research Director Johnny Morris…

UK Rents to Rise Faster than House Prices!

UncategorizedEdward Carter
In the next five years rents are expected to rise faster than house prices in the UK. I read that the Royal Institute of Chartered Surveyors (RICS) are predicting rents will rise by 25% over that period compared with property price rises of 20%.  They also reported increased tenant demand for rental properties in the three months prior to January. The stamp duty changes and tougher mortgage rules may be deterring some landlords from purchasing new properties.  Indeed, RICS reported a drop in new properties being offered to let for the fourth quarter in a row.  Fewer properties coming onto the market will inevitably lead…

Should You Put Your Buy to Let Into a Company?

UncategorizedEdward Carter
I have heard a lot of talk recently about the benefits of transferring Buy to Let properties to a company.  While there are certain tax advantages there are other factors which may make such an option less attractive. New rules come into effect next month which will restrict the amount of mortgage interest that can be deducted when calculating profits from rented properties for tax purposes.  In addition companies also pay Corporation Tax of 20%, reducing to 17% by 2020, as opposed to personal taxation levels of 20%, 40% or 45%, depending on personal circumstances. Clearly there are tax advantages to transferring…

Building a Property Portfolio with Loans to Value

UncategorizedEdward Carter
I am often asked by landlords which type of mortgage they should go for.  My answer is that it depends what you want to achieve. In effect there are two ways of using mortgage, a traditional repayment mortgage where you pay down the amount of the loan over time or where you use the value of the property to raise money, known as leverage. With a traditional interest only mortgage you have the choice of what you do with the rental profits after deducting expenses.  One option is to save money in order to pay off a part of the…

Bristol Charity for Vulnerable Tenants tops list of UK’s Most Prosecuted Landlords!

UncategorizedEdward Carter
Bristol Charity for Vulnerable Tenants tops list of UK’s Most Prosecuted Landlords! I spotted a recent article in The Guardian that reported a Bristol-based charity has topped a list of the most prosecuted landlords in the country. Alternative Housing was set up to provide accommodation for homeless people in Bristol and has received thousands of pounds in housing benefits.  It has been convicted of housing offences on six separate occasions in the past two years. The prosecutions have included providing bedsits with broken cookers and drains and having no supply of hot water or heating.  In 2015 housing officers raided a string…

Pitfalls of Letting to Friends and Family!

UncategorizedEdward Carter
I realise it may seem like an ideal situation to let your property to someone you know, such as a friend or family member.  The key, however, is to always remember that this is a business arrangement, not a favour. Many agents will advise against it and some mortgage lenders absolutely forbid it.  Problems can arise when one party or the other forgets that this is a legally binding situation and even the best of intentions can go wrong. It may be that you feel you wish to let your friend or relative pay a discounted rent.  This is perfectly okay but…

Of Mice and Men!

UncategorizedEdward Carter
I read about an interesting case the other day concerning a landlord who was querying some requests made by the tenant of his terraced house. Over just a couple of months the tenant requested call outs to clear a blocked drain and to deal with two mice infestations.  The landlord was enquiring whether these calls were justified and if they were in fact his responsibility. In my view the tenant has to accept their share of responsibilities.  It turned out that the blocked drain was the result of an accumulation wet wipes which should not have been flushed in the toilet.  I would explain that this was the…

Not All Landlords are Rogues!

UncategorizedEdward Carter
I was shocked recently to read in the papers about a lady who decided to leave the buy-to-let market for a variety of reasons, including the new tax increases.  What was upsetting was the abuse she subsequently received online, including her Facebook page, primarily for her simply being a landlord. Of course all landlords are not perfect and there are a fair number of rogues out there.  There are plenty of rogue tenants about too, of course. Newham council in East London has introduced an innovative licensing scheme for landlords throughout the borough.  It has found some awful cases of inhuman and unsafe housing conditions…

What is Fair Wear & Tear?

UncategorizedEdward Carter
I know that this is a contentious issue for both tenants and landlords.  It is estimated that 90% of independently adjudicated cases are awarded to the tenants and it is often the case that a landlord has unrealistic expectations of what constitutes fair wear and tear. There are four main factors that affect wear and tear: 1.    The length of the tenancy.  Landlords should expect more wear and tear from long term tenancies. 2.    The type of tenants.  There is generally likely to be more wear and tear from a family with young children than a single professional occupier. 3.    The quality of the items involved.  The…
MENU