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    RIGHT TO RENT UPDATE!

    RIGHT TO RENT RULES – NEW RULES!

     

    On the 22nd January 2024 the new amended Right to Rent rules came into force.

    The Right to Rent rules were first introduced in 2018 (under the Immigration Act 2014), to stop landlords renting to tenants without legal immigration status.

    This also includes lodgers paying or non-paying!

    In my column last August, I explained this would be coming and how the new changes mean massive fines for those breaking the rules.

    Since 2018, the Home Office has issued 320 civil penalties worth £215,500.

    Landlords who self-manage their properties could find themselves at risk if their current tenants immigration visas run out and are not renewed.

    The new fines are up to £5,000 per lodge and £10,000 per occupier for a first breach and then up to £10,000 per lodge and £20,00 per occupier for subsequent breaches.

    Of course, if you are with Move On, we automatically check and have systems in place and when they are due to renew.

    Another reason why our landlords can sleep at night knowing we have their legal obligations covered!

     

    At Move On we confidently say ‘we take away the stress and strains from landlords to give them more time and peace of mind!’ This could not be truer with today’s ever changing government rules!

     

    If you would like a friendly informal chat on how we could help you, please email sharon@moveon.biz or ring me 01202 711169.

     

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

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    ARE YOU SELF MANAGING?

    Up until recently, one of my personal properties was being let as an Airbnb, but having been part of that venture for 4 or so years, I decided to go back to offering it as a long term rental. My main reason was because the rental side has seen such a dramatic increase in prices that it almost matches the same as the Airbnb income, without the hassle of cleaners not being clean enough (or not turning up,) gardening and other issues that can happen. Now, with my long-term tenant, I have all the bills covered and they are responsible for the gardening!

    In the last few months, we have noticed an increase with self- managing landlords coming to us to take over the management of normal rentals. These landlords have successfully looked after their property/ies for years, but they simply wanted to take a step back from the legislations and continuous red tape, where just innocently not being aware of one thing could land them in thousands of pounds worth of fines!

    One of those landlord’s told me he could drive without insurance and be fined £300, he could shoplift and be fined £200, but be late with any legislative paperwork could be between £6000 and £30,000. Let’s not forget any non-EU resident that has their permit not renewed could land you with £10,000 per tenant!

    At Move On we confidently say ‘we take away the stress and strains from landlords to give them more time and peace of mind!’ This could not be truer with today’s ever changing government rules!

    If you would like a friendly informal chat on how we could help you, please email sharon@moveon.biz or ring me 01202711169.

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

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    LANDLORDS -is it time to SELL?

     

    I have been asked this question multiple times over the last few months. Although the answer is not a simple yes or no, it is a great question! The question deserves a very thought-out answer, and I can help you with this.

     

    Not only have I owned property for 40 years, but I have also owned Move On for 17 years. My portfolio includes HMO’s, normal rentals and Airbnb, so when I say I walk the walk with my clients, I truly do and this helps in the amazing conversations I have had.

     

    I have an understanding of capital gains, stamp duty, transferring properties to a Company. How to ride the high variable rate some of our experiencing and when you simply are tired of the increasing legislations and how to get out with minimal disruption to your rental income.

     

    If you have thought of these questions and just want to have a conversation with a fellow landlord, then I am more than happy to have a coffee with you and a friendly chat.

     

    At Move On, we are helping landlords sell their tenanted properties to investors. If you would like an informal chat on your options, please Email sharon@moveon.biz or ring me 01202711169.

     

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

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    BAN ON SECTION 21 – DELAYED

     

    The long awaited second reading of The White Paper Reform was heard on Monday 23rd October, which was an unexpected surprise as it was rumoured to be unlikely before the King’s Speech.

    In order for the bill to pass and to be able to take effect before the end of the current parliament, there had to be some changes.

    One of these changes was to delay the ban of Section 21 notice. Housing secretary Michael Gove said it was “vital” to update the courts first before implementing the full abolition, which include;

    • digitising more of the court process to make it simpler and easier for landlords to use;
    • exploring the prioritisation of certain cases, including antisocial behaviour;
    • improving bailiff recruitment and retention and reducing administrative tasks so bailiffs can prioritise possession enforcement; and
    • providing early legal advice and better signposting for tenants, including to help them find a housing solution that meets their needs.

    This delay will be good news for landlords. Many landlords are exiting the market due to the massive changes that included the Section 21 ban. In my experience and in 99% of the cases where we have issued a Section 21 on behalf of our clients, are because the landlord either wanted to sell, move back in or the tenants were in rent arrears. It cannot proceed to court until there is a minimum of 2 months rent arrears and very often by the time it gets to court, the tenant is around 4-6 plus months in arrears.

    The knock-on affect to landlords exiting the market has been a significant rise in rents, with this slight delay, we may see the market prices start to calm.

    At Move On, we are helping landlords sell their tenanted properties to investors. If you would like an informal chat on your options, please Email sharon@moveon.biz or ring me 01202 711169.

     

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

     

     

     

     

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    LANDLORD UPDATE!

     

    Two major pieces of legislation that are due to affect all landlords update.

     

    EPC GRADING OF ‘C’ TO ALL RENTAL PROPERTIES

    For a change some good news!

    In August 2021, I reported in this column that the government was in consultation to bring all currently rated rental properties of E (F and G had already been banned in 2018) to be changed to a ‘C’ grading. The proposed date was 2025 for new tenancies and remaining tenancies by 2028.

    The works involved in upgrading a property to ‘C’, was going to cost thousands to most landlords. Due to the date not being fixed yet in parliament, landlords have been very concerned at looming 2025 date.

    In September 2023, Rushi Sunak, the prime minister announced that they are scrapping the proposed plans, which was received with a massive sigh of relief.

     

    LEVELLING UP PAPER – RENTERS REFORM BILL?

     

    The second reading should have taken place by now and in fact, not a lot has been written since the first reading in May 23. In fact, it is highly unlikely to be heard now until after the King’s speech in November.

    The proposed white paper published in 2019, has seen landlords very concerned of the major impact it could have on their business.

     

    With the EPC rating of ‘C’ and the Renters Reform Bill, increased mortgage rates and Airbnb offering more attractive returns, we have seen landlords exiting the market, which in turn has reduced the stock in the private sector. With not enough houses being built annually, this will only have a negative impact on renters with rising rents due to the lack of stock.

     

    At Move On, we are helping landlords sell their tenanted properties to investors. If you would like an informal chat on your options, please Email sharon@moveon.biz or ring me 01202711169.

     

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

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    FINES FOR HOUSING ILLEGAL MIGRANTS

    As the channel crossing of illegal migrants keeps going up, the government are looking to crackdown on those who go ‘missing’ and illegal working.

     

    New fines proposed to come in later this year, could leave landlords and employers in a bankruptcy position!

     

    Who is at risk?

     

    • Landlords who self-manage their properties could find themselves in the same position if their current tenants immigration visas run out and are not renewed. Presently the fine is £1,000 per occupier rising to £10,000 per occupier.

     

    • Landlords who have a lodger – presently the fine is £80 per lodge, the proposed fine is £5,000 per lodger.

     

    • Employers – presently £15,000 rising to £45,000 per worker and £60,000 per worker after first breach.

     

    A landlord housing a family of 4 whose ‘Right To Rent’ has expired could see themselves with a fine of £40,000 under the new rules. This fine would increase to up to £20,000 per tenant for subsequent fines.

     

    A landlord with 2 lodgers with no legal status to stay, will see a fine of £10,000. This fine would double to £10,000 per lodger for a repeatable offence.

     

    LANDLORDS/EMPLOYERS CHECK YOUR TENANTS STATUS TODAY!

     

    Of course, if you are with Move On, we automatically check and have systems in place at the beginning of any tenancy when their ‘right to stay’ is due to renew.

     

    Another reason why our landlords can sleep at night knowing we have their legal obligations covered!

     

    At Move On, we are helping landlords sell their tenanted properties to investors. If you would like an informal chat on your options, please Email sharon@moveon.biz or ring me 01202711169.

     

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

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    ARE YOU A LANDLORD WHO IS LOOKING FOR RELIABLE…

    At Move On, we understand that finding the right tenants can be a challenging task, which is why we’re here to help you.

    Our screening process includes conducting thorough background checks, verifying employment status and references, to ensure that you get the best tenants for your property. With responsible tenants, you can have peace of mind that your property is being well-cared for.

    Our fully-managed service allows you to sit back and relax while we take care of everything from finding tenants, collecting rent, handling maintenance issues, ensuring compliance with the latest regulations, and conducting property visits.

    So, if you’re looking for a stress-free way to manage your rental property, call our office on 01202 711169 or email me at sharon@moveon.biz with your phone number.

    Take advantage of our services and let us help you find reliable tenants for your property.Picking Up Keys for Rental Properties

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    EVER CHANGING MARKET CLIMATE!

    The property market has certainly been hit recently both on the sales side and the lettings side.

    SALES

    Property prices are being reduced. Properties have enjoyed great selling prices in the last 2 years, unfortunately, what purchasers could afford 12 months ago has been dramatically reduced by the soaring mortgage interest rates. For example, 12 months ago, a property costing £400,000 with 25% deposit could borrow £300,000 at a rate of 1.5% over 25 years, and the repayment mortgage would cost £1199.00 pcm. Now at 6% the same mortgage would be £1932.00 pcm. If a purchaser wants to keep to the equivalent monthly outgoing of £1199.00, then they would be looking at property prices of around £285,000 (£115,000 cheaper).

    LETTINGS

    We have the opposite happening on the rental side. Over the last few years, we have seen landlords being hit with the mortgage interest relief being taken away from them and moving to the Airbnb side of lettings, where it is a tax allowable expense. This has reduced the stock available for long term renters.  We now have a double whammy of the interest rates having increased for the 13th month in a row, which is resulting in landlords either exiting the market or increasing the rents. Either way, with less stock for the rental market, we are seeing rents climbing to unprecedented levels and will continue whilst stocks remain low.

    At Move On, we are helping landlords sell their tenanted properties to investors. If you would like an informal chat on your options, please Email sharon@moveon.biz or ring me 01202711169.

    JOIN OUR INVESTORS PROGRAMME AND BE NOTIFIED FIRST

     

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    MORE CHANGES AHEAD FOR LANDLORDS!

    I reported last month that Michael Gove, the secretary of state for levelling up, is looking to bring to parliament the Renters Reform Act after the Kings coronation, well, it happened!

     

    • The end of Section 21 will be abolished!
    • Tenancies could potentially be set at periodic from day one – ending fixed terms!
    • Rent increases limited to one per annum
    • All Landlords to sign up to an Ombudsman Portal (mandatory)
    • Landlords to register to a property portal and all properties they own.
    • Landlords must consider all permissions to pet requests.
    • Decent Homes Standard to be adhered to

     

    The detail is of course is all in the paper! Although this sounds as if it is gearing more towards the tenant, in my 30 plus years of experience, a section 21 is used for rent arrears, the landlord wanting to move back in or the landlord wanting to sell, all these will be provided in a new updated Section 8 notice.

     

    But, of course, this doesn’t help the landlords feeling more persecuted with the present mortgage rate rises and rental income being practically taxed on turnover and not net profit if the properties are not held in a limited company.

     

    Before deciding anything drastic, please ring me and have a chat and I am always happy to discuss the options out there for you.

     

    ‘you don’t know, what you don’t know’

     

    Rent your property the Move On way and be stress free! Email me for an informal chat on sharon@moveon.biz

     

    IF YOU WANT TO SELL YOUR RENTED PROPERTY, WE HAVE INVESTORS WAITING!

     

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    LANDLORD LATEST NEWS

    Michael Gove, the secretary of state for levelling up, is looking to bring to parliament the Renters Reform Act after the Kings coronation this month!

     

    This is intended to give another shake up within the industry, including the much talked about banning of the Section 21 notice. The Section 8 notice will be amended to include new ways of gaining access to your property if the landlord is looking to gain possession of a property to either move back in or sell the property, as well as the current form where the tenant is in breach of their tenancy.

     

    This will be an interesting legislation and could drive more landlords to exit the market, where rents are already at an all time high due to the lack of stock around.

     

    Other news, the EPC grading of bringing all new and renewing tenancies to a ‘C’ from it’s current ‘E’ was due to come into force in 2025, with all remaining properties being a ‘C’ by 2028. This is looking to be amended to all properties being a ‘C’ by 2028.

     

    And lastly, shockingly, Suella Braveman is planning a crackdown on odious landlords who ask for sexual favours in exchange for rent! Dan Wilson Craw, Deputy Director of Generation Rent, recently has said “…….. Research conducted by Generation Rent and Mumsnet estimates that over 200,000 women could be victims of ‘Sex for Rent’ in the United Kingdom.’  A new law is being looked at being created to stop predatory landlords exploiting tenants for discounted rent.

     

    Let me help you have a more stress free 2023 by managing your properties. Email me for an informal chat on sharon@moveon.biz

    Sharon