Landlord Tax Breaks

Landlord Tax Breaks for Longer Tenancies

First of all, the Government may announce landlord tax breaks for longer tenancies.

The Conservative “think tank” known as Onward has shared this information.

Furthermore, the Government proposed idea, which is coming from Downing Street, derives from the following:

According to the Letting Agent Today website;

“Landlords would not have to pay capital gains tax when selling to tenants who have lived in a property for three years or more.”

As a result, the Government has proposed an incentive for Landlords offering this option and condiering other options too.

Landlord Tax Breaks
Government May Announce Landlord Tax Breaks

Tax Breaks May Be Considered

The UK Government must be seriously considering these tax breaks for Landlords.

Therefore, as talks continue, the Government have written a consultation document called;

“Overcoming the Barriers to Longer Tenancies in the Private Rented Sector”

The consultation document may be worth reading if you are a Landlord, as a law may apply in the future.

Reason for Landlord Tax Breaks

The Government proposed a number of options to promote the three year tenancy model.

The Reason;

The demand for longer tenancies from the growing number older people and families in the private rental property market.

One of the options the Government has proposed a financial incentive that could quicken the implementation process.

This could be an option rather than a mandatory 3 year tenancy agreement.

Nothing is yet conclusive, but the UK Government will continue to discuss this matter as they welcome suggestions.

Conclusion of Landlord Tax Breaks

In conclusion, the Government have considered Landlord tax breaks for those who considered longer tenancies (3 years).

Furthermore, there are financial incentive options that may also appeal to exisiting Landlords.

There is an article written back in March 2018 that discussed a Housing Crisis for first time buyers.

As a result, there could be a correlation between foreign property investors and any incentives or tax breaks considered by the UK Government.

As a Landlord, it is always important to stay informed and do your research.

We will continue to offer property related information to those interested in the property market.

Fastest Property Price Growth

The  Fastest Property Price Growth Areas in the UK 2018

First of all, we are going to discuss the fastest property price growth areas in the UK.

If you have been living in the UK for the last 10 years, you would have noticed a significant increase in property prices.

Some areas in the UK have not seen a significant increase, while the opposite has been true for other areas.

Fastest Property Price Growth UK 2018
Fastest Property Price Growth UK 2018

Variables Affecting Property Prices

There are many variables that can affect the property market price of properties.

Some of these variables are:

Planning Permissions

It’s worth checking your local authority for nearby planning permissions.

A school or major supermarket may boost your home’s value, while others could seriously decrease it.

The building of an industrial estate is an example where its development can detract the value of a property.

Above all, it is important to do your research, and contact the local autrhority of an area you are considering to purchase in.

Regeneration Plans

If a local authority is planning to regenerate a town or city centre, this is likely to boost the local economy.

For that reason, this may increase property prices in the future.

New Developments

New developments can go either way.

When new build homes are built, they can increase the value of the area and its properties.

However, take note that if too many properties come quickly onto the market in that area, it may cause the value to decrease.

 

Furthermore, there are other variables that can affect the value of properties. You can find out more on the Which website.

In contrast, a previous post on our blog was about falling house prices in 2017 named ‘House Prices Falling London‘.

Areas of Most Substantial Growth

In the UK, these are the top 5 areas which experienced the most substantial house price growth in 1 year, starting with the most affected growth:

(Data compiled in June 2018 by Your Move England & Wales House Price Index)

  1. Leicester (4.8%)
  2. Tyne and Wear (4.1%)
  3. West Midlands (3.9%)
  4. South Yorkshire (3.2%)
  5. Greater Manchester (2.9%)

Conclusion of Fastest House Price Growth

In conclusion, it is August 2018, and there are areas in the UK that are experiencing a significant increase in property value.

Most noteworthy, if you are looking to buy or invest in property in particular areas of the UK, you should carry out due diligence for variables that may influence a property’s value.

Property Refurbishment

Taking on New Properties to Let

To begin, a landlord may consider property refurbishment options before they rent their property.

Sometimes landlords may be provided a property by a landlord that needs a refurb before the property is let.

Consequently, a landlord may not have the money to carry out a refurb.

Fortunately, there are options out there that can assist landlords.

property refurbishment
Refurbishing A Property

Property Refurbishment Costs

As previously stated, it may become quite costly to refurbish a property to an acceptable standard.

The following refurbishment issues may need attention:

  • painting
  • new carpet/flooring
  • kitchen refurb
  • bathroom refurb
  • plumbing maintenance
  • electrical maintenance
  • gas maintenance

Maybe it is one of these issues or a combination of them, but there is always a property maintenance issue on the horizon.

Refurbishment Options

So, there are property refurb options that are available to landlords. Some are obvious.

A landlord can choose the option to take on the full cost of the works and contact the contractors.

A good place to find contractors to refurb your property is a site called MyBuilder.

Anyone can find local tradesmen in your area and find out who will provide reasonable quotes.

Alternatively, a landlord can do the work themselves if they can do so.

The works can be done this way quickly or slowly depending on the landlord’s lifestyle.

Another option is to split the cost with a reputable property management company.

If so, carry out your due diligence and request quotes from them for the works.

A final option would be to allow the property management company to take on the full cost of the works.

Again, carry out your due diligence and request quotes from them for the works.

There may be an option to deduct the cost of the works to be paid off over time.

Conclusion

To conclude, know your property refurbishment options and do your research.

Call us Metropolitan and Crown Estate Agent Ltd on 0207 538 8887 to find out more.

 

Joint Sole Agency

Comparing Sales Agreements

To begin, we have discussed the difference between Sole Agency vs Multi Agency, but what about a joint sole agency?

Let’s briefly recap about sole agency vs multi agency.

A sole agency agreement is when a vendor chooses only one agent to market and sell their property.

A multi agency agreement is when a vendor chooses more than one agent to market and sell their property.

Simple. Now let’s understand the basic meaning behind the third agreement option.

joint sole agency
Splitting the commission

Joint Sole Agency Explained

This sale agreement is when 2 separate property sales agents split the commission to market a property.

Two agents for the price of one.

Therefore, if there are 2 agents willing to split the commission, then there are 2 agents actively looking to sell your property.

Simple.

Things to Consider

It may be beneficial to choose this sale agreement to have 2 separate agents helping you to sell your property.

However, it is important to note the following;

If an agreement states “sole selling rights”, it means that you owe the agent commision.

This is within the set period of the contract, regardless if the agent introduced the buyer or not.

Make sure you read any contract before you sign it.

Although this can be a bit time consuming, you will be happy if you do your due diligence.

It always pays in the long run to ensure you are not getting stung with unnecessary fees.

Doing Joint Sales

Metropolitan and Crown Estate Agent Ltd have been involved in all 3 of these property sales scenarios.

Sole agency, multi agency and joint sole agency agreements.

We can always help to sell your property, so feel free to give us a call on 02075388887.

In a future post, we will discuss the benefits and disadvantages of this option.

 

HMO Licensing

Understanding HMO Licensing

To begin, HMO licensing is required for Landlords with properties that offer multiple tenants in the same dwelling.

It used to vary across the UK in both England and Wales.

Now, a HMO License is the typically the same throughout the UK.

HMO stands for “House in Multiple Occupation”.

So, a Landlord needs a HMO License for each property that requires one.

Also, if a Landlord has more than one property requiring an HMO, each property must have a license.

A HMO license is valid for a maximum of 5 years.

Check with your Council for details.

A Landlord can be fined an unlimited amount if they do not have the correct license in place before they rent a property with multiple occupation.

hmo licensing
HMO Licensing

HMO Overview

According to the Government website, your property is defined as a large HMO if;

  • it’s rented to 5 or more people who form more than 1 household
  • it’s at least 3 storeys high
  • tenants share toilet, bathroom or kitchen facilities

Even if your property is smaller and rented to fewer people, you may still need a licence depending on the area.

HMO Conditions

A Landlord must make sure that;

  • the house is suitable for the number of occupants (eg size and facilities)
  • the manager of the house – you or an agent – is considered to be ‘fit and proper’, eg no criminal record, or breach of landlord laws or code of practice

The Landlord must also;

  • send the council an updated gas safety certificate every year
  • install and maintain smoke alarms
  • provide safety certificates for all electrical appliances when requested

Each council may add their own conditions to the HMO License.

They will let the Landlord know when they are applying for the license.

Help with Your HMO

Metropolitan and Crown Estate Agent Ltd can help you with your HMO Licensing.

Obviously, if you choose our company to manage your property, we can assist you should you need it.

Find out more about how we can help you by calling us on 0207 538 8887.