NEWS
Landlords fear a rise in Capital Gains Tax
Landlords are becoming increasingly concerned about a possible rise in Capital Gains Tax after a report from the OTS (Office of Tax Simplification) as well as discussions in government over the last few months.
Landlords are becoming increasingly concerned about a possible rise in Capital Gains Tax after a report from the OTS (Office of Tax Simplification) as well as discussions in government over the last few months.
The concern is that a tax rise could cause problems in the rental market with renters not having the current availability of different properties and would also serve to reduce the flexibility of the market to adapt to the changes we’ve seen with coronavirus.
There has been a shift out of city centres in some parts of the country, changing the demand in towns and villages and with further disincentives for landlords to invest and manage properties, the market could see a depression.
Many landlords’ principal motive in the buy to let market is to create a secure retirement, so any increase in Capital Gains Tax could negatively affect them.
The NRLA has said that there better ways to approach tax in rental market rather than just more tax increases.
Ben Beadle, NRLA chief executive, says: “Increasing Capital Gains Tax would reduce churn in the rental market undermining the flexibility it has always been good at providing.
“A tax hike would be a kick in the teeth for all those who have invested in property to provide security for the future for themselves and their families.
“The Chancellor needs to end the war on the rental market and recognise the importance of a healthy and vibrant rented housing sector. Tax should be used more smartly, not as a blunt attack on the market.”
This prospect has raised it’s head a number of times over the last few months and has perhaps only been delayed by the current events.
We’ll keep an eye on it.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market, you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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Councils continue with landlord licensing in the middle of a pandemic
Many councils have continued with their plans to roll out landlord licensing defying many calls for them to freeze their plans due to the pandemic.
Many councils have continued with their plans to roll out landlord licensing defying many calls for them to freeze their plans due to the pandemic.
The Ministry of Housing, Communities and Local Government has also urged councils to be cautious with licensing proposals.
However, some councils have continued with their plans including Havering Council in London.
It defended it’s decision saying; “The council will delay proactive enforcement operations until the end of March 2021. The timescale may be further reviewed if London is still in lockdown. When enforcement action resumes, the council will concentrate on properties where tenants have complained about poor housing conditions”.
“Licence applications submitted with missing paperwork will be accepted and processed. The council appreciate there are difficulties gaining access and are mindful of the public health concerns associated with visiting properties at this time.”
New additional and selective landlord licensing schemes came into force in Havering. That means that in addition to the mandatory HMO licensing scheme that applies across England, Havering has two additional licensing schemes and one selective licensing scheme.
In Manchester, where we are based, the areas currently covered by Selective Licensing are: Crumpsall, Moss Side and Rusholme, Old Moat & Moston.
Other areas can be added by the council at anytime but at the time of writing there are currently no concrete proposals to extend licensing to other areas.
You can find further information on the exact areas and streets covered by Selective Licensing in Manchester by visiting the council website here.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market and licensing, you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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Are house prices set to fall in the coming months?
Are House prices set to fall in the coming months as the stamp duty holiday and furlough schemes come to an end?
Are House prices set to fall in the coming months as the stamp duty holiday and furlough schemes come to an end?
According to the Royal Institution of Chartered Surveyors, with the ongoing lockdown restrictions as well as schemes like the stamp duty holiday due to end by March, these factors could see house prices falling significantly.
House prices have been incredibly resistant to the fallout from lockdowns and restrictions as the world deals with the coronavirus pandemic.
But in the last month these increases saw their smallest rise compared to previous months and most short term predictions on sales see a fall in demand and prices.
But is it all gloom?
Property Sales in the year ahead
The average outlook for the year ahead is still looking positive although HMO’s and large properties suitable for an HMO are suffering in some areas due to an extension of regulations and licensing.
First-time buyers could be impacted with average prices rising but lenders have been re-introducing some 90% Loan to Value products for first-time buyers which will help balance the market.
With this third lockdown, estate and letting agents have managed to keep operating which has been good news for buyers looking to complete before the Stamp Duty holiday ends on 31st March.
There have been calls for this to be extended for a further 6 months but no signs of movement from the government so far.
The Stamp Duty Holiday caused a resilient house market to grow even more. The ONS revealed that average house prices rose by 5.4%. But this has seen a delay in the mortgage market with the number of applications it has been handling and some could miss the March deadline for completion if demand continues.
The number of new buyer queries has dropped for the fifth month in a row causing the near- and long-term predictions of a drop in prices with a slowing of the market.
Queries and demand from potential landlords continued to fall in December.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
Keep up with the latest from Armistead Property on…
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Public support for students to be rent-free during lockdown
A recent YouGov poll has found that the public support students not to pay rent if they do not use their private or college accommodation due to the coronavirus lockdown.
A recent YouGov poll has found that the public support students not to pay rent if they do not use their private or college accommodation due to the coronavirus lockdown.
Many students have been told to stay at parental homes if possible, during the latest lockdown. Many were already staying at family homes over the Christmas break and have not returned to their student accommodation.
The YouGov poll found 54% support students not having to pay their rent if they are unable to use their properties, from private HMOs to purpose-built student accommodation.
Another 30% believe students should receive a discount and 5% said students should have to pay the rent in full.
In the UK there are an estimated 1.8m students who rent accommodation.
At the time of writing, there is no planned government support to make this a feasible policy for private landlords and college/university accommodation.
Landlords of large properties and HMO’s would be particularly affected, and it could have far-reaching consequences.
We’ll keep an eye on this story as it develops.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
Keep up with the latest from Armistead Property on…
Facebook ➡️ https://www.facebook.com/ArmisteadProperty
Twitter ➡️ https://twitter.com/ArmisteadMcr
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Government extends bailiff eviction ban
The government has extended eviction bans. Could this affect you?
The government has extended the bailiff-enforced eviction ban insisting that it protects the most vulnerable tenants during the pandemic and third lockdown.
The official announcement stated: “Renters will continue to be supported during the new national restrictions, with an extension to the ban on bailiff evictions for all but the most egregious cases for at least 6 weeks – until at least 21 February – with measures kept under review.
Robert Jenrick MP said: “We are also extending the ban on bailiff evictions – helping to protect the most vulnerable renters. Court rules and procedures introduced in September to support both tenants and landlords will remain in place and regularly reviewed. The courts will continue to prioritise cases, such as those involving anti-social behaviour, illegal occupation and perpetrators of domestic abuse in the social sector.”
“…Landlords continue to be required to give 6-month notice periods to tenants until at least 31 March except in the most serious circumstances.”
“…A new mediation pilot will further support landlords and renters who face court procedures and potential eviction from next month (February). It will offer mediation as part of the possession process to try and help landlords and tenants to reach a mutual agreement and keep people in their homes.
“Helping to resolve disputes through mediation will enable courts to prioritise urgent cases, supporting landlords and tenants to resolve issues quickly without the need for a formal hearing. The mediation pilot will work within the existing court arrangements in England and Wales.
“The protections for renters are on top of the comprehensive package of support the government has put in place to help households, including support for businesses to pay staff salaries and strengthening the welfare safety-net by billions of pounds.
“This has helped to protect renters from the economic fallout of the pandemic by supporting them meet their outgoings, including paying their rent.”
The eviction bans that were brought in last year due to the pandemic have seen a dramatic fall in the normal level of evictions.
Between April and September 2020 no repossessions were recorded compared to 15k from the same period in 2019.
There is further government guidance for landlords and renters here ↓
If you have a large property or HMO you currently let just planned to let, but with all the uncertainty in the market you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
Keep up with the latest from Armistead Property on…
Facebook ➡️ https://www.facebook.com/ArmisteadProperty
Twitter ➡️ https://twitter.com/ArmisteadMcr
YouTube ➡️ https://www.youtube.com/channel/UCElC71ezG9h2tofxtEM05DA