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Rent Control Argument Rages On

Rent Control Argument Rages On

Most Tenants Would Support Rent Controls

The majority of tenants renting property in the UK’s private rented sector (PRS) would support the introduction of rent controls if they were introduced according to data gathered by a Manchester based letting agent.

The research was conducted by Geo Property Lettings through a number of industry related websites and social media profiles over a 3 month period. The survey discovered that 77% of tenants in the UK private rented sector would support the introduction of rent controls should the Government decide to implement such a scheme. Only 5% of tenants were opposed to the introduction of rent control whilst 18% of tenants expressed no opinion either way.

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RLA find errors in wording of proposed deregulation act

RLA find errors in wording of proposed deregulation act

RLA Find Serious Drafting Error In Rented Housing Regulations Of Proposed Deregulation Bill

The Residential Landlords Association (RLA) have called on the Government to delay the implementation of the proposed Deregulation Act after they found errors in the wording of the document that would expose private rental sector landlords to a legal minefield.

The RLA published the following on their newshub

A major drafting error in Government regulations affecting the private rented sector risks undermining confidence in new legislation being applied to the sector.

The Deregulation Act, passed prior to the General Election, provides Ministers with the power to introduce a new standard form for landlords to complete and provide to a tenant when seeking to regain possession of a property on a no fault basis, known as a Section 21 notice.

With the form due to become legally binding from the 1st October, the Residential Landlords Association (RLA) has written to the Housing Minister, Brandon Lewis MP, to seek a delay following the revelation of a serious drafting error.

The standard form, as currently drafted, notes that where a fixed term tenancy ends and then turns into a rolling or periodic tenancy the Section 21 notice would only be valid for four months from the date that it is served on the tenant*.

This contradicts the Deregulation Act, which makes clear that the required period to regain possession of a property where a tenancy is a rolling or periodic tenancy, should instead be four months from the date the Section 21 notice expires**.

Despite having engaged thoroughly with the Government on its proposals, the final version of the standard form, published last week, had not been shown to the RLA.

The RLA is warning that the drafting exposes landlords to a legal minefield, and is calling for the implementation of the plans to be delayed to give more time to get them right.

RLA policy director, David Smith, said “The RLA continues to share the Government’s ambitions to ensure that all landlords understand and properly implement their legal responsibilities and obligations. In light of the major changes being introduced for the sector it is vital that all documents published by the Government are clearly understood. This drafting error will serve only to dent the confidence of landlords in the legislation. Whilst Ministers are understandably eager not to let these new measures drift, it would make more sense not to rush their implementation than face the potential legal difficulties that will now arise for landlords.”

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PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

Housing Minister, Brandon Lewis

Housing Minister, Brandon Lewis

Government Housing Minister, Brandon Lewis MP (pictured right), has announced that the selective licensing of private rental sector (PRS) landlords by Local Authorities will require Government approval from 1st April 2015, if they plan to license a large geographical area within borough or city boundaries.

Local authorities have had the power to licence landlords across an entire borough since 2010, in an attempt to combat community issues, such as anti social behaviour in troublesome areas. This blanket approach has seen a sharp increase in the number of selective licensing schemes being introduced by local authorities across the UK, much to the chagrin of landlords.

The changes to local authority selective licensing powers mean that councils will now need Government approval before they are allowed to implement a selective licensing scheme that covers a large geographical area of their council borough or covers an area that contains a proportion of private rented properties, expected to be around 20% of the local private rental market.

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Mortgage Market Review Hits UK Property Market

Mortgage Market Review Hits UK Property Market

Mortgage Market Review Affected Housing Market Before Launch

The new regime for the approval of mortgages came into force over the weekend (26th April 2014) but even before it was officially launched it was having a dramatic effect on applications, with loan offers being carefully scrutinised and the impending process had lenders asking even more questions before approving any mortgage offer.

I experienced the vagaries of the system myself, when taking a call from a lender the day before funds were due to be released, I was asked to provide even more details than ever before on a loan application, culminating in further delay to purchasing, and the details I had to provide and verify could have been done weeks before.

The lender said the additional information was in order to comply with MMR and this was before the official launch date. The property I was purchasing should have completed last week, before the MMR introduction date, but the delays caused by the lender requesting verification of the additional information required to process my loan meant that the loan process was delayed and resulted in dragging things out, until 9am today, when my solicitor called me to say that the purchased had finally completed.

The additional requirements of the MMR will result in the death of quick purchasing by property investors, however, I now know that in order for loans to be agreed that I have to provide extremely detailed accounts, financial projections, and provide verified proof of everything I have ever done in order to prove affordability.

The personal finance industry publication Mortgage Strategy says 7 out of 10 mortgage brokers reckon that it will be harder and slower for prospective purchasers to get a mortgage loan under the new MMR regulations.

For all new mortgage applicants it means not only providing evidence to the lender of all income and earnings including payslips or audited and verified accounts for the self-employed, but also requires providing details of all spending, too.

Mortgage applicants must itemise and cost spending on things they cannot do without, as set out in a list provided by the Financial Conduct Authority (FCA), including food, household cleaning and laundry, all heating costs, water bills, telephone, essential travel and existing property charges such as council tax, buildings insurance, ground rent and service charges for leasehold apartments.

Applicants must also disclose discretionary spending on clothes, household goods, personal goods such as toiletries or leisure activities.

The FCA says mortgage applicants must itemise other debts such as credit card bills, outstanding loans, child maintenance and alimony payments.

Mortgage lenders and finance providers must consider how interest rates are predicted to change over the next five years, to gauge the affect on borrower’s mortgage repayments. If payments are likely to go up then the lender will check that the borrower can afford it based on disclosed financial commitments.

And if mortgage terms extend into a borrower’s retirement, the lender has to check on pension income predictions too, in order to judge continued affordability.

Mortgage Market Review Regulations Will Slow Property Transactions

Mortgage Market Review Regulations Will Slow Property Transactions

New Mortgage Rules Will Slow Down
UK Property Transactions

65,500 property purchases were approved by mortgage lenders in March 2014, showing the second successive monthly drop in the number of property transactions as mainstream mortgage lenders implement stricter rules which will be rolled out fully at the end of April 2014.

The figures for March were 7% lower than the 70,309 mortgage approvals recorded in February 2014.

The recent falls in the number of mortgage approvals are a stark contrast to the 11 months of continuous improvements which saw average monthly lending levels increase from 52,537 to 76,753 between February 2013 and January 2014.

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Activate Your Wealth Powerswitch To Increase Your Property Income

Activate Your Wealth Powerswitch To Increase Your Property Income

Activate Your Wealth Powerswitch To Increase Your Property Income

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Compulsory Redress Schemes For Lettings And Property Managing Agents New Government Measures Intend

To Regulate Private Rented Sector

The Government has announced that there are to be new regulations introduced in 2014 to provide private rented sector landlords, tenants and leaseholders with additional protection when working with lettings agents or property managing agents.

The Department for Communities and Local Government (CLG) want the introduction of compulsory redress schemes for lettings and property managing agents will ensure that they can be fully investigated where information is not made clear on additional charges, administration fees or any other property or tenant related issue. The proposed measures are intended to provide a cheaper, easier way for landlords, tenants and leaseholders to pursue compensation from lettings and property managing agents if they have a complaint.

The conditions that have to be met by lettings and property managing agents to be a part of a redress scheme have now been published by the Government.

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Cracking The Property Code with Matthew Moody

Cracking The Property Code with Matthew Moody

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Time: 09.00am – 05:30pm

Cracking the Property Code Live!

Cracking the Property Code Live!

Government Set To Backtrack On Landlords Conducting Immigration Checks

Government Set To Backtrack On Landlords Conducting Immigration Checks

Bill forcing landlords to check Immigration status of tenants
will be watered down

As previously reported on Spotlight the Government proposals for landlords to check the immigration status of all tenants, has already caused a great deal of outrage from all sectors.

http://mypropertypowerteam.com/landlords-expected-to-do-uk-border-agencys-job-for-them/
http://mypropertypowerteam.com/even-mps-think-landlord-immigration-checks-are-unworkable/

Government ministers look likely to perform the expected U-turn and backtrack on the proposal that would require landlords to verify the immigration status of their tenants.

Prime Minister, David Cameron is reported to have been livid when he was told that the proposed new legislation would have to be watered down.

According to a report in the Daily Telegraph, the legislation that is set to become part of a the new Immigration Bill, will not be rolled out nationally, instead, only landlords in certain parts of the UK will be forced to carry out immigration checks and the newspaper named some boroughs in West London would where landlords would be at the forefront of policing the immigration requirements.

Communities and Local Government (CLG) secretary, Eric Pickles, is reported to think that a mandatory requirement for all UK landlords would involve a great deal of additional red tape, and the resulting extra costs would end up being paid for by tenants.

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Confusion Remains Over Displaying EPC's

Confusion Remains Over Displaying EPC’s

As of the 9th January 2013 the laws regarding Energy Performance Certificates (EPC’s) changed, however some landlords have stated that the regulation changes are still causing some confusion.

An EPC is a certificate stating how environmentally friendly a property is. By law an EPC must have been commissioned on all properties prior to marketing for sale or to let, and must be obtained within 7 days of the property first being marketed.

If an EPC is not obtained within 7 days, a further 21 days are allowed providing it can be proven that all reasonable efforts were taken to obtain the EPC beforehand. It is the responsibility of the seller or landlord of the property to obtain the EPC not the Estate Agents.

Although changes have been made there are certain similarities between the new laws surrounding EPC’s and the previous regulations.

For example, EPC’s are still required for all properties with the amendment that listed buildings are now exempt. An EPC must still be displayed on all documents however; the requirement to put the front page of the EPC into advertisements and property particulars has now been replaced with a requirement to insert the asset rating instead.

A summary of changes that have been made due to the new legislation are as follows:

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