Category: Uncategorized

Council Praises Landlords for a Change!

Far too often I hear of local authorities criticising letting agents or landlords and even prosecuting them so it was a pleasant surprise to hear of a council actually praising them. Burnley Council has been quick to laud the professional approach of some agents and landlords in their district when organising the letting and management of residential properties.  The council prides itself on actively working with private landlords and encouraging them to raise their standards. They have been running an accreditation scheme since the 1990s and drew up a new code of practice this summer to reflect the changes in legislation and best practice in…

Landlords Confidence Returns!

I was pleased to learn recently that, despite the punitive tax changes imposed by the government, landlords confidence in the private rental sector is on the up. Savings specialists Kent Reliance have published their latest Buy to Let Britain report and it concludes that residential landlords are predicting a bright future. The report covers the third quarter of the year and was carried out via a survey of 900 investors.  No less than 54% of landlords are confident regarding the prospects of their property portfolios.  This compares favourably with the figures for the second quarter which reported a record low of just…

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

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!

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?

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

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!

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!

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!

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…