National Landlords Association NLA News & Update Richard - - PowerPoint PPT Presentation

www.landlords.org.uk

National Landlords Association

www.landlords.org.uk

NLA News & Update

Richard Blanco, NLA Representatives

www.landlords.org.uk

Recent Changes Now In Force

• PRA changes

– Jan 2017 changes 145% x 5.5% stress test – 30 Sep 2017 Portfolio Landlord requirements

• Section 24 tax changes

– Finance interest can be set against profits at basic tax rate only. Tax credit rather than deduction. – Phased over 4 years starting current tax year

• Scotland Residential Tenancies

– End of no fault eviction – All tenancies from 1 December 2017

www.landlords.org.uk

Impact Of Stress Testing

Yield Max LTV under old criteria Max LTV under new criteria 6% 96% LTV (theoretically) 75% LTV 5% 80% LTV 63% LTV 4% 64% LTV 50% LTV

www.landlords.org.uk

Stress Testing Whole Portfolio

• Example of 145% x 5.5% stress test
• Portfolio of £5m

– Loans of £2.75m which is 55% LTV

• Actual figures

– Monthly mortgage payments £5,620 – Monthly rental income £17,460

• Income required to meet stress test £18,250

www.landlords.org.uk

Autumn Budget 2017

• £15billion extra funding for housebuilding over the next 5

years, with target of 300,000 per year

• Consultation to launch on the barriers to landlords
• ffering longer tenancies to tenants
• Local authorities will be able to increase the council tax

premium on empty homes to 100%.

• Changes to Universal Credit:

– Removing 7 day waiting period at start of claim – Housing benefit recipients will continue to receive their award for first 2 weeks of Universal Credit claim

• Stamp Duty Reduction for First Time Buyers

www.landlords.org.uk

Other Budget Measures

• Rental Payment Data - £2m investment
• SDLT additional rate loophole closed
• Corporate indexation allowance frozen 1/1/18
• Mileage rate for landlords
• Evidence on rent a room relief longer terms
• 30 days CGT payment window deferred 2020
• Stricter taxation of non resident property owners

www.landlords.org.uk

Tory Conference Announcements

• Specialist housing court
• Redress scheme for landlords
• S21 notice period extended to 3 months??

www.landlords.org.uk

Draft Tenant Fees Bill

• Ban all fees to tenants from letting agents and landlords
• An exemption for in-tenancy management charges

arising because of the action of the tenant – Such as repairs, replacing keys, or late rent charges.

• Impose a cap on security deposits of 6 weeks’ rent and

a cap on holding deposits of 1 weeks’ rent

• Create a civil offence with a fine of £5,000 for an initial

breach of the ban on letting agent fees and create a criminal offence for repeat offenders.

www.landlords.org.uk

Regulation of Letting Agents

The Government is consulting on plans to regulate property agents, including:

• Requiring all letting agents and managing agents to be

members of relevant professional body (such as UKALA, ARLA or ARMA),

• Mandating Client Money Protection for all property

agents that handle client money

• Already in place:

– Must be member of Redress Scheme (or £5000 fine) – Transparency Regulations on Fees

www.landlords.org.uk

HMO Licensing Review

• Government had intended to

– Remove the storey rule so all houses with 5 or more people from 2 or more households are in scope – Extend mandatory licensing to flats above and below business premises (regardless of storeys) – Set a minimum room size of 6.52sq-m in line with existing overcrowding standard (Housing Act 1985)

• Supposed to come into force Oct 2017 but Government

not yet responded to consultation

• Likely to not come into force until April 2018

www.landlords.org.uk

Other Changes Coming Up

• 2016 Housing & Planning Act

– Banning orders from 6 April 2018 – Still awaiting….

• Abandonment procedure

– Electrical Safety Working Group Report Proposals

• 5 Yearly check and report to be issued to tenant phased in

with new tenancies initially

• Encourage good practice: visual checks between tenancies,

installation of RCDs

www.landlords.org.uk

Minimum EPC Ratings

Minimum Energy Efficiency Standards will soon be coming into force, requiring a minimum EPC rating of E, otherwise a maximum fine of £5,000:

• From 1 April 2018 – Ban on new tenancies (including

renewals and rolling over to periodic)*

• 1 April 2020 – Ban on all tenancies (e.g. existing

tenancies)

• Will be some applicable exemptions, such as lack of

tenant consent, and “no upfront cost”.

www.landlords.org.uk

The Mayor’s Draft Housing Strategy

• Consulting until 7 December 2017

– Support councils to introduce licensing schemes – Support calls for a “light-touch” registration scheme – Introduce a public London Rogue Landlord database – Support employers introducing Tenancy Deposit Loans – Lobby Government for more powers over PRS – Opposing “discriminatory” Right to Rent policy

www.landlords.org.uk

Licensing Update - Definitions

• Selective Licensing – all privately rented

properties

• Additional Licensing – HMOs with 3 or more

people living in 2 or more households

• Mandatory HMO Licensing – HMOs with 5 or

more people living in 2 or more households

• Article 4 planning directions remove permitted

development rights to and from:

– C3 Dwelling house (everyone is related) – C4 HMO (3 or more people in 2 or more households)

www.landlords.org.uk

Discretionary Licensing

• Borough wide

selective & additional

– Croydon – Barking & Dagenham – Newham

• Borough wide

selective

– Waltham Forest

• Borough wide

additional licensing

– Camden – Barnet – Southwark (plus SL) – Islington (plus SL) – Redbridge (plus SL) – Brent (plus SL)

www.landlords.org.uk

Boroughs with part borough schemes

• Additional Licensing

– Lewisham – Kingston – Haringey – Harrow – Ealing – Hammersmith & Fulham

• Selective Licensing

– Tower Hamlets

• Consulting/Consulted

– Bexley – Greenwich – Havering

• Total of 20 boroughs

with or consulting on licensing

www.landlords.org.uk

Boroughs with Article 4 Directions

• Borough Wide

– Newham – Barking & Dagenham – Havering – Waltham Forest – Enfield – Bexley

• Part Borough

– Haringey – Hillingdon

• Total of 8 boroughs

with Article 4 Directions

www.landlords.org.uk

Inside Property Podcast

• Monthly podcast

– Expand, Hold or Sell? – Brexit & Investing – Crime in the PRS – Property in the media – Maintenance – HMOs – Current Affairs editions

• insideproperty.org.uk

www.landlords.org.uk

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Contacts

Your NLA Representative richard.blanco@landlords.org.uk To do business with the NLA natasha.mukhi@landlords.org.uk