Major landlord to scrap tenancy deposits

By Marc Da Silva

Rental operator Get Living has announced that it is to abolish tenancy deposits for new residents from July and return existing deposits collectively worth £3m to more than 3,000 existing tenants.

Get Living is behind the country’s largest single-site PRS scheme at the former London 2012 Athletes’ Village, now called East Village, E20, which features 1,439 homes, with a further 4,000 homes in the pipeline across the UK.

Deposits will be returned to all tenants on the condition that they meet various requirements, which include having passed referencing or possessing a guarantor and being up to date with their rental payments.

Neil Young, CEO of Get Living, said: “We know that the cost of living can be high so, as a responsible landlord with a long-term perspective, it is important for us to be able to identify and address areas where we can alleviate the burden on our residents.

“Scrapping security deposits as a pre-requirement and returning deposits to current residents is yet another step we are taking to show we are firmly on the side of renters.”

Young hopes that deposit-free renting “becomes the norm” to help make the PRS even more attractive for renters.


He added: “We have great relationships with our residents and, given they are taking such good care of our homes, why should we hold six weeks’ rent?”

https://www.landlordtoday.co.uk/breaking-news/2017/5/major-landlord-to-scrap-tenancy-deposits

Which? calls for next government to review role of estate agents

By Rosalind Renshaw

https://blog.moneydashboard.com/media/com_easyblog/shared/Estate_Agent_Social.jpg

Consumer organisation Which? is calling for the next government to review the role of estate agents in the ‘out-dated’ home buying and selling process.

Which? also said that all political parties should set out in their manifestos how they intend to improve the home-buying process for consumers.

In particular, said Which?, parties should commit to ensuring that estate agents deliver a better service for both home-buyers and sellers, and that the conveyancing process is simplified.

The call comes after new research by Which? found that home buying and selling ranks as one of the top three consumer concerns for half (49%) of 18- to 34-year-olds.

Younger people consider it more of a concern than social care for older people (46%) or energy prices (34%).

For adults of all ages, three in ten (28%) cite home buying and selling as a top three priority for the next government, rising to four in ten (42%) for those living in London.

Which? research last year showed that three in ten (28%) house purchases fall through, leading to an average loss to the potential buyer of £2,200, and that it typically takes four to five months to complete a property purchase.

Which? says the next government should conduct a thorough review of the home-buying process to make the system easier particularly for buyers. The review must examine the role played by estate agents and conveyancers.

Alex Neill, Which? managing director of Home Products and Services, said: “Buying a home is one of the most significant purchases consumers ever make and one of the most stressful life experiences.

“It takes people far too long to buy property and home-buyers are losing out on substantial amounts of money due to flaws in the system. The next government must fix the outdated home-buying process.”

Over a year ago, then Chancellor George Osborne said he would “shortly” be calling for views on how the home buying and selling process could be improved. That call never came.


Which? has been vociferous in calling for a ban on letting agent fees but this is an indication that it could be turning its fire on sales agents.

http://www.propertyindustryeye.com/which-calls-for-next-government-to-review-role-of-estate-agents/

Is it time to cash in your buy-to-let? We take a look at whether the figures still add up for landlords

If you're a buy-to-let investor, you'd be forgiven for feeling rather despondent following the Chancellor's recent crackdown.

A stamp duty hike for buy-to-let purchases has already arrived - with a corresponding spike in sales beforehand - and mortgage interest relief for tax on rental income will start to be hacked back next April.

Off the back of a tax squeeze on both purchases and income, you may even be thinking of quitting life as a landlord altogether. But is selling up and cashing in any profits a wise move?

We take a look at the questions investors need to be asking themselves before taking a decision about the future direction of their property portfolios.

The buy-to-let squeeze 

Amid the policy changes that are being introduced, the two that will have the biggest financial impact are the extra 3 per cent stamp duty due on buy-to-let property purchases and the reduction in tax relief available to landlords.

Stamp duty 

For those buying a new property, the extra stamp duty charge, which arrived on 1 April this year, could be largely absorbed by capital gains made by an increase in house prices or by raising rent, says accountants BlickRotherberg.

Nimesh Shah, a partner at BlickRotherberg, explained: 'We're concerned that this will lead to higher rents, which is exactly what the Government was hoping to avoid by introducing these changes.'

However, it is worth noting that while a rise in house prices of more than 3 per cent in the first year would offset the extra stamp duty, the tax must be paid at the point of purchase. 

Extra money that goes on stamp duty is cash that can't go towards a deposit - so the new surcharge does represent a significant barrier to entry.

http://www.dailymail.co.uk/property/article-3536146/Is-time-cash-buy-let-look-figures-add-up.html