UK Mortgage & Property Related News
This is the message from mortgage lender Skipton Building Society which has reacted to the Labour announcement all landlords must meet an Energy Performance Certificate (EPC) rating of Band C by 2030.
The building society is offering and delivering free EPC Plus assessments to all of its members to help improve energy efficiency awareness.
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AHMRC crackdown on buy-to-let tax scheme is panicking landlords, according to reports. Property 118 claimed to offer a way round stamp duty and capital gains tax amid a HMRC crackdown and clampdown, according to the I.
But it was served with a “stop notice” by the taxman last month, meaning it must immediately stop promoting its schemes. This follows a decision in February to issue what’s known as “reference numbers” to its arrangements, a signal that HMRC believes the schemes equate to tax avoidance.
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What if you own a property but want to let it out so you can buy another place to live? David Jackson discusses the pros and cons of ‘let-to-buy’ in his latest Q&A
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A prominent rental market analyst is warning that elements of the reform legislation proposed by Labour “are casting dark shadows” over the lettings sector, with few landlords likely to sleep easy at possible threats to their investments.
Doug Shephard, director of the Home website – a listings platform that also conducts respected monthly market analyses for the lettings and sales sectors – says the new government’s upcoming Renters Rights Bill may prove to be final straw for many landlords.
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Average monthly rents in Great Britain have increased by £74 in the last year, as landlords continue to exit the market.
A new report shows that landlords are buying far fewer homes than before, resulting in tenants having less choice and facing higher costs.
Read on for more about what’s happening to rent prices, and how the new government plans to overhaul the rented sector.
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The market is witnessing a significant shift as a number of landlords exit due to increasing legislative pressures, tax liabilities and the removal of mortgage relief, says Antony Lark, joint CEO of estate agency and lettings group Spicerhaart.
Rents have begun to stabilise, despite the exodus of landlords from the sector and resistance over rent reductions, says Lark.
He explained: “We’re noticing that the level of landlords leaving is higher than anticipated – particularly among those who’ve retired, who need the money to meet rising living costs, or are helping children buy first homes, or who’ve concerns over inheritance tax.
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Falling property values and soaring rents make flats the most profitable option for landlords, according to new research.
The findings from Inventory Base show that flats currently offer the highest returns for BTL investors.
Despite a slight decrease in average flat prices, rental values for flats have surged by 9.3% annually, outpacing all other property types.
The property inventory specialist compared average yields across flats, terrace homes, semi-detached and detached properties.
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Thousands of landlords in England are facing increasing costs due to selective licensing schemes imposed by local councils, according to a Freedom of Information request.
The FOI request by insurer Direct Line revealed that landlords in areas which require a licence are being charged £700 on average to get one.
Councils in certain parts of England require landlords to get the selective licences in order to to rent out property, in the hope that this will improve standards and quality.
The schemes require landlords to meet certain standards of management and maintenance and are often accompanied with regular property checks.
A licence typically lasts for a maximum of five years once granted, but councils can opt to issue them for a shorter period.
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In a statement which appears to go against the trend of much of the lettings sector, Connells says it sees no sign of landlords quitting the buy to let sector.
This appears at odds with data from some organisations and agencies – including Hamptons, owned by Connells – which appear to show fewer landlords in the sector now than in recent years.
But the Connells Group – in its trading statement for the first half of 2024 – says rental supply ended June with 24% more properties available than at June 2023.
And it says that the company “saw no significant signs of landlords exiting the market” with some 77% of properties re-let at the end of their tenancies. That’s the same figure as last year.
The average tenancy length was 30.9 months, about 10% up on a year ago.
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Successive tax raids on buy-to-let investors have fuelled Britain’s rental crisis, the boss of Foxtons has said.
Guy Gittins, who heads up the London-focused estate agent, said private landlords have been driven away by a dearth of government incentives, which has reduced the number of available properties to rent.
The UK’s housing crisis has only worsened since the pandemic, he said, prompting the recent surge in rental costs.
According to Mr Gittins, the previous Conservative government “created an environment that was not attractive or profitable” for new landlords to enter the market.
He said: “It needs to be taken very seriously. We need anything that will encourage people back into the private rented sector.
“Ultimately, the UK needs tens of thousands, if not hundreds of thousands, of extra rental [homes] to manage the price growth and make sure it is tempered as much as possible in the medium term.”
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