Buy-to-let
in the spotlight
A major review of the private rented sector has been announced by Housing and Planning Minister Yvette Cooper.
With almost 2.6 million homes in England being rented from more than half a million private landlords, the Government has commissioned an independent review to look at what issues tenants and landlords face. The review will look at the impact of the increasing number of buy-to-let properties and student tenants, the quality of homes and who the users of the sector are.
The move follows other recent actions by the Government such as the introduction of Tenancy Deposit Protection and licensing for houses in multiple occupation.
Yvette Cooper said: “Most of us have rented a flat or house at some stage in our lives and the private rented sector is, at its best, a vital provider of good housing. But too few people are aware of their rights and responsibilities, either as tenants or landlords. We have seen a big increase in the private rented sector and particularly in buy-to-let. It is important we review the impact of this.”
The review will be headed by Julie Rugg and David Rhodes from the Centre for Housing Policy at York University. They plan to deliver the final report by the end of October. Julie Rugg said: “Many people experience renting privately at some point in their lives, but private renting as a sector isn’t well understood. This is a good time for a review.”
Growing team spirit
The Mortgage Express portfolio team has now grown to 13 people who are dedicated to supporting landlords who have six or more mortgages with us and whose needs have therefore become more complex.
Launched with just two people in 2005, the team has grown rapidly as demand from customers has increased with their portfolios. The nine advisers and three admin staff provide a one-stop shop for all queries from portfolio customers.
They work closely with both landlords and brokers to provide advice on such issues as further lending. And because they spend every day talking to landlords, they understand what’s happening in the market.
You can contact the team on 0800 591193.
Root out the rogues
The National Landlords Association (NLA) has condemned rogue landlords who they say are operating outside the regulatory framework by overcrowding their properties.
The NLA has echoed the concerns of fire services across the country who believe that there is still a minority of landlords filling their properties, often with migrant workers, to such a degree that escaping in the event of a fire would be close to impossible.
David Salusbury, Chairman of the NLA, said: “Licensing for homes in multiple occupation was introduced precisely to target cases where severe overcrowding is occurring in badly managed properties. These unscrupulous landlords are operating entirely outside of a system developed to protect the welfare of tenants. The NLA has no hesitation in supporting local authorities as they seek to root out such practices among rogue operators.”
The NLA is working with stakeholders across the sector to produce clear and practical guidance for landlords on the fire safety precautions required for certain types of properties.
Tackling the tax issue
Recent media reports have warned that HM Revenue & Customs (HMRC) is cracking down on buy-to-let landlords who have not been paying the right amount of tax. Hundreds of letters were sent out to landlords in February in the first phase of a process that could net millions for the Government.
Some reports says that officials have cross-referenced data from hundreds of letting agencies against stamp duty returns to create a database of landlords who have not paid any or enough tax. The letters demand details of property investment activity going back six years. It is believed that such landlords could be forced to repay taxes dating back that far and could also face fines and penalties.
However, an HMRC spokeswoman said: “Far from being a ‘crackdown’, HMRC has been working closely with professional bodies throughout this process and they have been supportive of the approach we are taking.
“This is a process of writing to people to remind them of their responsibilities in relation to tax on rental income and ensuring that everyone pays the right tax under the law. HMRC has a responsibility to reduce non-compliance right across the economy, in the interests of creating a level playing field for all taxpayers.”
Back in print
David Lawrenson, a regular writer for B2L magazine, has just published the new edition of his book Successful Property Letting – How to Make Money in Buy-to-Let.
David has been a property investor for 20 years and the book draws on his experiences to provide essential advice on property investment and letting. To read his advice on keeping an effective inventory click here.
