Tuesday 6 December 2016

Landlord arrears half that of homeowners

UK homeowners are more than twice as likely as buy-to-let landlords to be in arrears, according to Computershare, a major servicer of mortgages.

Just one in every 166 buy-to-let mortgages (0.6%) is currently in arrears by at least a month compared to one in every 73 residential loans (1.37%), according to new data from the financial services company’s mortgage servicing arm, Computershare Loan Services, which manages over half of all outsourced mortgages in the country.

Computershare Loan Service’s figures also show a significant regional disparity, with Welsh buy-to-let mortgages (1.41% or one in every 71) almost 10 times more likely to be in arrears than those in the East Midlands (0.15% or one in every 667), and residential loans in London (1.96% or one in every 51) in arrears more than twice as often as the South West (0.89% or one in every 112).

Andrew Jones, CEO of Computershare Loan Services, said: “When mortgages fall into arrears, problems can arise for borrowers, lenders and tenants, so loans must be administered in a way that takes into consideration the individual circumstances of every customer.

“Computershare Loan Services continues to lead the way in preventing and reducing arrears by using advanced analytical systems to predict problems and facilitating support for those who need it.

“For over a quarter of a century we’ve done everything we can on behalf of clients to work with borrowers, particularly those significantly behind on their payments, to find a solution that takes into consideration their circumstances.”

Proportion of mortgages in arrearsBuy To LetResidential
East Midlands0.15%1.23%
East Anglia0.20%1.36%
South East0.25%1.10%
South West0.28%0.89%
Yorkshire and Humberside0.55%1.27%
West Midlands0.69%1.25%
North0.82%1.23%
North West0.91%1.60%
Greater London0.94%1.96%
Scotland0.95%1.31%
Wales1.41%1.81%
Average for Great Britain

 
0.6%


1.37%

 

Tuesday 29 November 2016

Rent Smart Wales - When a Landlord Licence is Required.

A landlord will need a licence in addition to registration if the landlord is to carry out any one or more lettings activities which are:

  • arranging or conducting viewings with prospective tenants;
  • gathering evidence for the purpose of establishing the suitability of prospective tenants (for example, by confirming character references, undertaking credit checks or interviewing a prospective tenant);
  • preparing, or arranging the preparation, of a tenancy agreement;
  • preparing, or arranging the preparation, of an inventory for the dwelling or schedule of condition for the dwelling.
Further, a landlord will need a licence if the landlord is to carry out any one or more property management activities. Those activities are:

  • collecting rent;
  • being the principal point of contact for the tenant in relation to matters arising under the tenancy;
  • making arrangements with a person to carry out repairs or maintenance;
  • making arrangements with a tenant or occupier of the dwelling to secure access to the dwelling for any purpose;
  • checking the contents or condition of the dwelling, or arranging for them to be checked;
  • serving notice to terminate a tenancy.
As a starting point, all named landlord’s on a tenancy agreement will require a licence because they will be a named contact for the tenancy and may need to serve a notice to terminate the tenancy in the future.

Lettings or property management activities does not include anything done by the landlord which is arranging for an authorised agent to do something on the landlord’s behalf.

Where a landlord never does any one or more of these activities and instead uses a licensed letting agent, the landlord will not require a licence. A licence is only therefore required by ‘self letting or managing landlords’.

It cannot be stressed enough that where a landlord uses a licensed agent, that landlord must not undertake any of those activities themselves without first obtaining a licence. For example, if a landlord wishes to make arrangements with a person to carry out repairs or maintenance at a time whilst the dwelling is subject to a domestic tenancy, a licence will first be required. Otherwise it will be an offence. It’s acceptable for the landlord to arrange with a licensed agent to get the repair or maintenance done though.

It seems the landlord should be able to carry out the physical repair or maintenance themselves (subject to any law governing the repair or maintenance) because the restriction defined in property management activities is for making arrangements with a person to carry out the repair or maintenance. In this case the agent must arrange access with the tenant though.

It’s okay for an unlicensed landlord to make arrangements for repairs and maintenance when the tenancy has come to an end without a licence because the dwelling will not at that time be subject to a domestic tenancy. However, despite the tenancy being at an end, the landlord must not check the contents or condition of the dwelling, or arrange for them to be checked, for any purpose connected with the previous tenancy without a licence. A similar provision applies for agents, the effect being that only a licensed landlord or agent will ever be able to determine the return of a deposit after the end of a tenancy.

If a property has been recently purchased with an intention to rent it out, a licence must be applied for within 28 days from when the property has been assigned to the landlord.

Exemption

If a property has been purchased with an existing tenant in place and the owner does not intend to continue renting to the tenant and intends to occupy the property as their home, the owner does not need a licence if they take steps to recover possession within 28 days from when it was assigned to them and as long as they “continue to diligently pursue the recovery of possession”. As with registration, advice should be sought in this situation because failure to have a licence could seriously affect possession. It might be a better solution to pass management of the property (including serving possession notices) to a licensed agent.

Don't fall foul of the law. Protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Wednesday 16 November 2016

Call to extend Rent Smart deadline for Wales' landlords Rejected.

Calls have been made for an extension to the registration deadline for all residential landlords in Wales.

The new Rent Smart scheme requires anyone who rents out property in Wales to register or become licensed by 23 November 2016.

But the Residential Landlords Association (RLA) said many were still unaware they need to do so.

Rent Smart Wales said landlords were given a year to register and it would not extend the deadline.

A Freedom of Information request by the RLA showed just 32,230 out of 130,000 landlords had registered by 18 October - those who do not comply will be prosecuted and fined.

The figures were released by Cardiff council, which is administering the scheme for the whole of Wales.

Douglas Haig, RLA director for Wales, said he was writing to Community Secretary Carl Sargeant to request a new deadline to allow time for landlords to be properly educated about what they need to do.

But Rent Smart Wales said there had been a large increase in numbers registering as the deadline approached and 46,300 out of 130,000 landlords had now registered and a further 11,400 had begun the registration process.

Mr Haig said communication had been "poor" with "very few" landlords aware of the scheme.

He said others were leaving it until the last minute because registration and licences run for five years from the date they are approved, not from 23 November.

The number of staff employed to carry out the scheme had also been "grossly underestimated", he added. "I don't think it's asking a lot for the Welsh Government or Cardiff council to come forth with an education plan to get this information out there. That would be a sensible approach," he said.

A Rent Smart Wales spokesman said: "We have no intention of extending the deadline. However, we do recognise that, due the very high numbers of landlords visiting the website to register and apply for licenses, some are experiencing difficulties.

"The Rent Smart Wales team consists of 79 posts and the team are working hard to reduce waiting times for customers.

"Once the November 23 deadline for complying has passed, enforcement powers will be used in a sensible and proportionate manner."

Don't fall foul of the law. Protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Landlords ONE WEEK left to register for Rent Smart




Landlords are reminded that the time to register with Rent Smart Wales is running out.

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 1 week away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Landlords and Agents who fail to meet the deadline will be commiting a criminal offense and will be prosecuted under the new legislation and subject to hefty fines and potentially banning orders.

Your Agent Comment.

In my experience Rent Smart's time scales are grossly under estimated. It took over five months to get my licence and I submitted the application back in November 2015. If you've not submitted your landlord/agent licence application then chances are that you won't get it before the November 23rd Deadline.

Don't fall foul of the law. Protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Monday 14 November 2016

Rent Smart Wales - Penalties for not complying

Enforcement, Penalties And Restrictions

Breaching any of the several requirements under the Act is in the main a criminal offence and a licensing authority or local housing authority have powers of prosecution. Further, there are severe penalties and restrictions that also apply for breaches.

A tenancy will remain valid and enforceable even if any one of the several requirements under the Act are not complied with (except for rent which has been ordered to be stopped or repaid or the inability to serve a section 21 notice).

Fixed Penalty Notices

For the majority (but not all) of the offences, Rent Smart Wales or a local authority may offer the person who has allegedly committed one of the offences the opportunity of discharging any liability to conviction by payment of a fixed penalty.

If the person pays the fixed penalty within the period of 21 days, the person will not be convicted of the offence.

The amount of the fixed penalty will be either £150.00 or £250.00 depending on the offence.

Rent Repayment Or Rent Stopping Orders

Where a landlord carries out property management activities or a landlord appoints an unlicensed agent, Rent Smart Wales (or local housing authority) may make an application to the Residential Property Tribunal for a rent stopping order.

The person who is alleged to have committed the offence does not have to have been charged or convicted of an offence for a rent stopping order to be made.

The effect of a rent stopping order is to stop, for a period, any rent payable by a tenant. Legally the tenant will be considered to have paid this rent and no rent arrears claim could be made.

A rent repayment order works in a similar way but applies to periodic payments of rent that have already been paid to a person during a period when some breach of the legislation had occurred. In addition to Rent Smart Wales or a local authority applying for a rent repayment order, a tenant may also apply.

Section 21 Notice

No section 21 notice may be given if:

  • the landlord is not registered, or
  • the landlord is not licensed and the landlord has not appointed a person who is licensed to carry out all property management work in respect of the dwelling on the landlord’s behalf.
Don't fall foul of the law. Protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Thursday 10 November 2016

Just Two weeks left to register with Rent Smart.




Landlords are reminded that the time to register with Rent Smart Wales is running out.

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 2 weeks away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Landlords and Agents who fail to meet the deadline will be prosecuted under the new legislation and subject to hefty fines and potentially banning orders.

Your Agent Comment.

In my experience Rent Smart's time scales are grossly under estimated. It took over five months to get my licence and I submitted the application back in November 2015. If you've not submitted your landlord/agent licence application then chances are that you won't get it before the November 23rd Deadline.

Don't fall foul of the law and protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Tuesday 8 November 2016

Two weeks to go - landlords and agents MUST register for Rent Smart Wales

Only just over two weeks remain for letting agents and landlords operating in Wales to register with the Rent Smart Wales initiative - and ARLA is reminding members that they have to be licensed or else face a hefty fine.

Rent Smart Wales is the scheme operated by the Welsh Government in its bid to improve the quality of the principality's private rental sector. 

However, even with the deadline of November 23 fast-approaching, and registration for agents being compulsory, only one-third of agents have yet acted.

The law means landlords in Wales – and those in the rest of the UK who own properties in Wales – need to register themselves and their properties with Rent Smart Wales, as well as being suitably trained and licensed to carry out letting or property management activities. If landlords do not wish to get trained, they need to arrange for a trained and licensed agent to manage their properties on their behalf.

In addition, all lettings agents in Wales need to be licensed. This means everyone involved in letting agency work needs to undertake Rent Smart Wales-approved training, and companies need to have Client Money Protection, Professional Indemnity Insurance, belong to a redress scheme and must provide all of their landlord and property details to Rent Smart Wales.

If landlords and agents find themselves unlicensed when the deadline arrives they will be unable to practise, so it’s important to act soon to ensure the necessary qualifications and other regulatory requirements have been undertaken before then, in order to comply with the legislation.

Don't fall foul of the law and protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Wednesday 2 November 2016

Only 3 weeks left to register for RENT SMART




Landlords are reminded that the time to register with Rent Smart Wales is running out.

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 3 weeks away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Landlords and Agents who fail to meet the deadline will be prosecuted under the new legislation and subject to hefty fines and potentially banning orders.

Your Agent Comment.

In my experience Rent Smart's time scales are grossly under estimated. It took over five months to get my licence and I submitted the application back in November 2015. If you've not submitted your landlord/agent licence application then chances are that you won't get it before the November 23rd Deadline.

Don't fall foul of the law and protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Tuesday 1 November 2016

Landlords want mandatory client money protection

New research has revealed over four out of five landlords believe that client money protection (CMP) should be made compulsory when using a letting agent to rent out property.

The investigation, conducted by Total Landlord Insurance, asked organisations to provide a response on whether they think CMP should be made mandatory in 2016. Of 85% of landlords who use a letting agent, 81% think it should be made compulsory.

Risk

Recent data released by YouGov revealed that hundreds of thousands of pounds of landlord and tenants’ cash are at risk, as they are not protected by CMP.

At present, letting agents in the UK currently hold more than £2.7bn of landlord and tenants’ money in the form of rent and tenancy deposits. However, it is believed that around one in five tenants will not be able to recover funds should their agent steal them, or uses it for fraudulent purposes.

YOUR AGENT director Rob Lock says we think ‘Client money protection, like redress scheme membership, should be compulsory for letting agents. This change would give the consumer added protection and ultimately raise standards throughout the industry.’

Group


The Government has moved to establish a working group with colleagues from the House of Lords to assess if CMP schemes should be made mandatory. This is being led by Liberal Democrat Peer Lord Palmer and Labour’s Baroness Hayter.

These schemes, which hold cash independently, are voluntary, with the Government estimating that only 60-80% of agents use them.

Sean Hooker, head of redress at the Property Redress Scheme, said: ‘With an increasingly growing rental sector and the money involved, the risk of serious economic damage that could easily occur without adequate safeguards, is something we cannot be complacent about.’


‘These figures clearly show that landlords see this protection as essential to ensure they deal with safe and professional agents that they and their tenants can trust,’ he added.

YOUR AGENT support mandatory Money Protection for letting agents in the wake of the launch of a government consultation on the subject.

"CMP is an entirely sensible measure that protects both the landlord and tenant in the unlikely event that an agent goes into administration or misappropriates a client’s funds" says YOUR AGENT director Rob Lock.

"Calls have been made for the launch of this review for some time so we are very pleased that it has now been announced. It provides an extra, but essential, degree of security for professionals in the industry as letting agents currently hold approximately £2.7 billion in client funds. It’s really important for members, and the wider industry, to come together as one clear, loud voice to call for full, mandatory CMP through this consultation."

The government launched a six week consultation period with an open letter from housing minister Gavin Barwell saying letting agents currently hold approximately £2.7 billion in client funds “but if a letting agent is not covered by client money protection, both the landlord and tenant could stand to lose their money.”

It goes on to say that currently between 60 and 80 per cent of letting agents voluntarily pay a membership fee of £300 to £500 to join a client money protection scheme and this forms part of a central pot of money that can then be used to pay successful claims by landlords and tenants.

YOUR AGENT are member of Client Money Protect (CMP) make sure your agent is protecting your money the way that we protect our clients money.



CMP Logo

Friday 28 October 2016

Why Property Has Been the Best Investment of the Last Ten Years

Property has been named the best investment in the UK over the last ten years, delivering a significantly higher return than alternative options, such as the stock market and savings accounts.

A new study compared the return an investor would have received in each of the four markets, had they invested an initial £50,000 in 2006.

The research revealed that the buy-to-let market has generated a 175% return over the past decade, equating to a profit of £138,936. In comparison, gold has delivered a profit of £50,673, interest on savings accounts is worth £14,447, and a £50,000 investment in the FTSE 100 has yielded just £2,969 over the same period.

Buy-to-let performs significantly better than other investments in terms of an overall return. Research shows a buy-to-let investor in 2006 would be almost £90,000 better off today than somebody who invested in gold, and more than £135,000 up on somebody who bought stocks and shares.

Although property investment can be more time-consuming and hands-on, with such incredible results at the end, it’s certainly worth it.

Although gold, stocks and shares, and savings offer greater liquidity than property, which can take several weeks to buy or sell, this isn’t deterring astute investors, who value the dual benefits of a monthly rental income and capital appreciation over time.

Despite many changes over the last ten years to the housing market and wider economy, buy-to-let is still the clear winner. As well as the most rewarding, it is also the safest of all the investment options over the long-term. We have seen historically that, although cyclical, house prices always rise in the long run. With the acute shortage of housing across the UK, this is only likely to continue.



Wednesday 26 October 2016

RENT SMART - Only 4 weeks left to register before the 23rd Nov deadline




Landlords are reminded that the time to register with Rent Smart Wales is running out.

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 4 weeks away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Landlords and Agents who fail to meet the deadline will be prosecuted under the new legislation and subject to hefty fines and potentially banning orders.

Your Agent Comment.

In my experience Rent Smart's time scales are grossly under estimated. It took over five months to get my licence and I submitted the application back in November 2015. If you've not submitted your landlord/agent licence application then chances are that you won't get it before the November 23rd Deadline.

Don't fall foul of the law and protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Friday 21 October 2016

RENT SMART - Only 5 weeks to go until the 23 Nov deadline



Landlords are reminded that the time to register with Rent Smart Wales is running out.

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 5 weeks away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Landlords and Agents who fail to meet the deadline will be prosecuted under the new legislation and subject to hefty fines and potentially banning orders.

Your Agent Comment.

In my experience Rent Smart's time scales are grossly under estimated. It took over five months to get my licence and I submitted the application back in November 2015. If you've not submitted your landlord/agent licence application then chances are that you won't get it before the November 23rd Deadline.

Don't fall foul of the law and protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Friday 14 October 2016

Rhentu Doeth Cymru / Rent Smart Wales

Are you a tenant in the private rental sector? All private sector landlords must be registered with Rent Smart Wales by the 23 November deadline. You can contact the Rent Smart team to find out if your landlord has registered yet. Click Here


YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk

Wednesday 12 October 2016

Your Agent Property Blog: Rent Smart Wales deadline just six week away.

Your Agent Property Blog: Rent Smart Wales deadline just six week away.:  RENT SMART WALES ONLY Landlords are reminded that the time to register with Rent Smart Wales is running out. The law in Wale...

Rent Smart Wales deadline just six week away.

 RENT SMART WALES
ONLY

Landlords are reminded that the time to register with Rent Smart Wales is running out.

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 6 weeks away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Landlords and Agents who fail to meet the deadline will be prosecuted under the new legislation and subject to hefty fines and potentially banning orders.

Avoid the hassle and protect your income. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? Call us on 03452 606 440 or email us at info@your-agent.co.uk



Friday 7 October 2016

"We need another 1.8m homes to rent by 2025" claims RICS

The government must urgently deliver 1.8m new rental homes as new figures from the Royal Institution of Chartered Surveyors reveal a sharp drop in supply. 

RICS says the sale of buy to let properties dropped sharply when the additional homes stamp duty surcharge was imposed on April 1, on top of which 86 per cent of landlords say they have no plans to increase rental portfolio this year – and possibly for the next five years. 

RICS claims that by 2025 there will be 1.8m more households will be looking to rent. This follows more than a doubling in the number of UK households renting property from 2.3m in 2001 to 5.4m in 2014. 

“We urge the Prime Minister to abandon David Cameron’s previous home ownership focus and reverse April’s stamp duty measures in order to address short term rental supply issues” says a statement from RICS. 

The association says that in addition to those measures to help individual buy to let landlords, the government should encourage institutional build to rent too, with pension funds incentivised with tax breaks to build large scale rental properties with affordable elements. 

Additionally, local authorities holding brownfields sites should be encouraged to release land for such properties, RICS says.

“Our latest figures show that there has been a 15 per cent decline in house sales to first time buyers over recent months. That tells us that for all the rhetoric, David Cameron and George Osbourne’s Starter Homes Strategy failed to get off the ground” says Jeremy Blackburn, RICS’ UK head of policy.

“The private rented sector became a scapegoat under the previous Prime Minister, and because of that it suffered. Yet with increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future. We must ensure that it is fit for purpose, and the government must put in place the measures that will allow the rental sector to thrive. Any restrictions on supply will push up rents, marginalising those members of society who are already struggling” he claims.

Tuesday 4 October 2016

YOUR AGENT support mandatory Money Protection for letting agents

YOUR AGENT support mandatory Money Protection for letting agents in the wake of the launch of a government consultation on the subject.

"CMP is an entirely sensible measure that protects both the landlord and tenant in the unlikely event that an agent goes into administration or misappropriates a client’s funds" says YOUR AGENT director Rob Lock.

"Calls have been made for the launch of this review for some time so we are very pleased that it has now been announced. It provides an extra, but essential, degree of security for professionals in the industry as letting agents currently hold approximately £2.7 billion in client funds. It’s really important for members, and the wider industry, to come together as one clear, loud voice to call for full, mandatory CMP through this consultation."

The government launched a six week consultation period - closing on October 3 - with an open letter from housing minister Gavin Barwell saying letting agents currently hold approximately £2.7 billion in client funds “but if a letting agent is not covered by client money protection, both the landlord and tenant could stand to lose their money.”

It goes on to say that currently between 60 and 80 per cent of letting agents voluntarily pay a membership fee of £300 to £500 to join a client money protection scheme and this forms part of a central pot of money that can then be used to pay successful claims by landlords and tenants.

YOUR AGENT are member of Client Money Protect (CMP) make sure your agent is protecting your money the way that we protect our clients money.



CMP Logo

Average tenant expects to rent for ten more years

The average UK tenant expects to remain part of the Private Rented Sector for a further decade, according to a new study.

Research carried out by AXA says that fewer tenants say they are renting because they can't afford to buy a property. 

In 2013, 67% of tenants surveyed said they rent because they can't buy. This year, the figure has fallen to 44%.

This could partly be due to a shift in attitudes towards renting. 

A third of those surveyed said their primary reason for renting is 'the freedom and lifestyle benefits' it brings.

AXA says that Britain's tenants are also experiencing a surge in financial confidence. 
In 2013, just 13% of those surveyed said they were saving for a deposit. This figure has almost doubled to 25% in 2016.

Tenants are also becoming increasingly prone to frequent relocation – stating they expect to stay in each rental property for an average of two years. 

Some 61% of 1,000 tenants surveyed said they favour short-term contracts of six months to a year, while only 18% said they would benefit from five or ten year leases.

Within the next five years, two thirds of those surveyed said they plan to relocate to another part of the UK, while 10% said they plan to emigrate.

London, Bristol and Edinburgh top the list of ‘stepping stone towns’, where tenants tend to stay the shortest length of time. 

A third of the tenants taking part in the study said they feel 'stigmatised' for not owning a property and 64% said they worry about being forced out of their rental property at short notice.

Tuesday 13 September 2016

Landlords are reminded of the need to register with Rent Smart Wales. Only 70 Days until Deadline.

Landlords are reminded of the need to register with Rent Smart Wales

The law in Wales now requires private landlords to register themselves and their properties with Rent Smart Wales. The Housing Act (Wales) 2014 requires landlords to register and self-managing landlords who let and manage properties and agents to also undertake training and apply for a licence. Rent Smart Wales aims to drive up standards in the private rented sector. A specialist team deals with queries and helps landlords and agents register and apply for a licence.

The next campaign phase will lead to the 23rd November deadline and will inform landlords of their legal requirement to comply and tenants of their right to have a properly registered and licensed landlord or agent.

Rent Smart Wales is a landmark scheme that will drive up standards in the private rented sector by requiring managing landlords and agents to undertake training to ensure they understand their responsibilities.

It will help prevent the involvement of rogue, and even criminal, landlords and agents in the management and letting of properties. The scheme will help to protect tenants and will support good landlords and agents by helping them keep abreast of their responsibilities and legal obligations, raising the reputation of the sector.

The deadline for registration is now less than 70 days away and those who have not yet complied with the law are encouraged to discharge their legal responsibilities to register as soon as possible because registration when completed online, is a simple 15 minute process, but a licensing application can take up to 8 weeks to process. 


Avoid the hassle. YOUR AGENT lettings were amongst the first ten agents to be awarded an Agents Licence across the whole of Wales. So why not let YOUR AGENT be your agent? 


Monday 5 September 2016

BoE’s chief economist says property investment better than pension

The Bank of England’s chief economist has moved to suggest that investing in property is a better option for retirement than paying into a pension.

Speaking about preparation for retirement in the Sunday Times, Andy Haldane noted that, ‘it ought to be pension but it’s almost certainly property.’

Shortage

Mr Haldane owns two properties but pointed to the fact that there is a severe housing shortage across the country. In turn this is driving up prices and placing upward pressure on properties.

Haldane said, ‘as long as we continue not to build anything like as many houses in this country as we need to…we will see what we’ve had for the better part of a generation, which is house prices relentlessly heading north.’

Residential property investment returns-rental income and capital growth-are continually outperforming other mainstream investment types. These include commercial property, UK Government bonds and a more secure alternative to the volatile stock market.

Agreement

A number of property experts have moved to agree with Mr Haldane’s comments, including Graham Davidson, managing director of Sequre Property Investment.

Davidson observed, ‘poor returns, hefty fees and inconsistent annuity rates have caused the number of Britons taking out pensions to fall considerably. As Mr Haldane has pointed out, bricks and mortar continues to out-perform many other more volatile investments, providing stable returns with the added benefit of owning a tangible asset, unlike stocks and shares. This is particularly important for the older generation, many of whom will look to hand down their investment to family members.’

‘Our figures support Mr Haldane’s claim, with 46% of our investors citing investing for their pension pot as their primary motivation for choosing buy-to-let property and 95% of investors purchasing with their pension in mind.’

Friday 2 September 2016

Court date set for potential judicial review of landlord tax relief

Landlords fighting to prevent punitive tax relief changes for buy-to-let landlords being introduced next year will get their day in court, after it was announced that they will have their hearing in early October.

The campaign group Axe the Tenant Tax, led by landlords Chris Cooper and Steve Bolton, have been seeking a judicial review over the government’s changes to tax relief ever since the government announced its contentious decision to remove finance costs for individual landlords.

The existing rules that permit landlords to offset all of their mortgage interest against tax will, from next year, be phased out, and by April 2020, once they have been withdrawn altogether, it is likely that higher-rate tax payers will only receive 50% of the relief that they currently get.

The curb on the amount of tax that landlords can claim back on their property investments, which was announced by now former chancellor George Osborne in the Budget last summer, could mean buying and renting out property is no longer viable for many buy-to-let landlords.

Attempts to reclassify mortgage interest as anything other than a normal business expense could have a disastrous impact on the buy-to-let sector, with higher expenses passed on to tenants.

According to Treasury forecasts, the tax relief changes will net it close to £1bn a year by 2021.

A hearing will take place at the Royal Courts of Justice on Thursday 6 October, later than expected.

In a statement the campaign group Axe the Tenant Tax said HM Revenue and Customs had requested more time so their lawyers would be available.

It said: “We have been told not to read anything negative into the delay to our court date - it is quite a normal occurrence and, if anything, the extra time allocated we hope will work in our favour.”

Campaigners against tax changes to have case heard next month

A legal campaign to overturn the UK Government’s decision to alter mortgage interest tax relief that residential landlords can claim will be heard next month.

At the end of September, there will be a hearing to determine whether of not there will be a judicial review of the move to reduce tax relief from 2017 to 2020.

Challenge

Both landlords and organisations have warned that the move could put off existing buy-to-let landlords coming into the sector. In addition, it could hit existing landlords, who could be left with little choice but to pass on this additional costs to their tenants, in the shape of higher rents.

Campaigners Steve Bolton and Chris Cooper said that they will meet with new housing minister Gavin Barwell on the 9th September, when the issue will be discussed further.
In a statement, the two campaigners said, ‘we will obviously be raising our serious concerns about the impact, making him aware of our legal challenge and doing the best job we can to help him become a supporter of our cause within Government.


Costly

The Scottish Association of Landlords and the Residential Landlords Association have both warned that these tax changes will make it easier for rogue landlords to provide sub-standard houses to tenants, due to increased costs.

Recently, a recent YouGov survey for the Council of Mortgage lenders suggested that 34% of landlords plan to reduce their investment in the sector as a direct result of the changes.
John Blackwood, of the Scottish Association of Landlords, said, ‘we know from our regular branch meetings around Scotland that landlords are already seeing increased costs as a result of tax changes. As well as impacting on individual landlords, we are concerned this could make it harder to tackle the current housing crisis by making it more difficult to attract much needed investment.


‘With the uncertain investment environment that has been created by the Brexit vote, at least in the short term, the last thing anyone in the housing sector needs is tax rises which will only make things worse,’ he continued. ‘Furthermore, we are concerned that if costs increase, this could open the door for rogue landlords who don’t follow the rules on either tax or safety and quality standards at a time when real progress is being made at driving these unscrupulous players out of the market.

Restrictions

Lettings groups have also said that the changes are likely to deter landlords from making further investment, which in turn will restrict the supply of available properties.

One pundit said 'Gavin Barwell, the new Housing Minister, takes swift action to unpick the disastrous tax policies that were introduced by the previous Chancellor George Osborne. We believe that the government should be taking steps to incentivise private landlords to invest in Buy to Let properties, as this is what will bring rents down.


‘If the government wants to make housing more affordable the only way to do this is to increase the supply of properties on the market. It is completely counter intuitive to restrict supply with tax changes and then not expect rents to rise. Gavin Barwell has an opportunity reverse the situation and create an environment where there is an oversupply of rental properties. This can only be achieved by incentivising landlords and making the rental market more affordable for tenants,’ he concluded.

Friday 19 August 2016

HMRC debating new tax regime for smaller BTL investors

HM Revenue & Customs has moved to launch a 12-week consultation on a scheme which it claims will improve the simplicity of tax demands levied on lesser-scale buy-to-let investors.

The new proposal, if agreed, will see buy-to-let landlords with an annual rental income of below £10,000 not required to keep their business records digitally. In addition, landlords falling into this category will not have to provide quarterly updates to HMRC.

However, they will still be obliged to utilise the so-called ‘optional cash basis.’

Alterations 

If the proposal receives approval, it is likely to be introduced in the Finance Bill 2017, for full implementation in 2018 or later.

Through its wide-ranging digitisation programme Making Tax Digital, HMRC had been banking on landlords to utilise specialist software in order to keep detailed business records. These would then be submitted quarterly.

The cash basis option will only be made available to simple property businesses. These include individual landlords and partnerships where partners are individuals.

This said, a statement from HMRC noted, ‘the option to use the cash basis will make budgeting for tax easier for landlords allowing them to better manage cashflows.’


Under the cash basis, buy-to-let landlords would only be permitted to declare their rental income for cash actually received. As part of the digital quarterly accounting scheme, they would be required to include the income that their tenants should have paid as income for the year-even if this rent had not been paid.