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  • #24: Labour’s plans for replacing leasehold with commonhold

    #24: Labour’s plans for replacing leasehold with commonhold
    2024/09/02
    Almost 40% of the properties in the PRS in England are leasehold, so the chances are that if you're a private landlord listening to this podcast, you'll have at least one leasehold property in your portfolio. If you do own a flat in England or Wales, or are thinking of buying one, you need to listen to this episode of the Good Landlording podcast. This is because the government plans to "take steps to bring the feudal leasehold system to an end", by "reinvigorating commonhold through a comprehensive new legal framework", and replacing leasehold with commonhold. As part of this, the Government say they will ban the sale of new leasehold flats so that commonhold becomes the default tenure. This promises have significant implications for leaseholders, should it see the light of day, and it's something that property investors need to understand. However, abolishing "feudal" leasehold is also a lot easier said than done, and in this episode of Good Landlording, Richard and Suzanne discuss what it all means, and what's likely to happen in practice. They also talk about the implementation of the Leasehold and Freehold Reform Act 2024, and plans to abolish forfeiture and tackle ground rent for existing leases. >> Ask a question: Click here for question form What we cover in this episodeRecap of what's in the Leasehold and Freehold Reform Act 2024What are Labour's proposals for the draft Leasehold and Commonhold Reform Bill1. Labour promises to "tackle" ground rent2. The abolition of forfeiture for leasehold properties3. Labour's promise to replace leasehold with commonholdHow does commonhold differ from leasehold?Why does the Government wish to abolish freeholdThe transition from leasehold to commonhold Recap of what's in the Leasehold and Freehold Reform Act 2024 The Leasehold and Freehold Reform Bill managed to get onto the statute just before the election, becoming the Leasehold and Freehold Reform Act 2024. The Leasehold and Freehold Reform Act 2024 has the following key provisions: Considerably longer lease extensions, ie 990 years instead of 50 for houses or or 90 for flats. A new valuation process that is more favourable to the leaseholder. The banning the sale of new houses as leasehold, making sure that they are sold as freehold. Changes to the valuation methods for collective enfranchisement by leaseholders. Greater transparency over service charges and estate management charges. At the moment the Act has only received Royal Assent, but hasn't yet come into effect. However the Government's July 2024 King's Speech says "The Government will act quickly to provide homeowners with greater rights, powers and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024". They also say in the King's Speech that they will "will consult on the best way to bring [...] the injustice of ‘fleecehold’ private estates and unfair costs to an end [...] and implement new protections for homeowners on private estates in the Leasehold and Freehold Reform Act 2024. It's expected that leaseholders will need to wait until 2025 or 2026 before they can exercise their rights to extend leases for up to 990 years, but the Government will be under pressure to do it as soon as possible. What are Labour's proposals for the draft Leasehold and Commonhold Reform Bill The King's Speech refers to publishing a draft Leasehold and Commonhold Reform Bill that will "reinvigorat[e] commonhold by modernising the legal framework". They will also "restrict the sale of new leasehold flats. The Government will consult on the best way to achieve this, so that generations to come will benefit from absolute homeownership". The use of the word "draft" means the Bill itself is unlikely to be presented to parliament in the next year. Instead, they will publish it to enable people to comment on it as commonhold is very complex.
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    22 分
  • #23: What makes a successful HMO business, with Wendy Whittaker-Large

    #23: What makes a successful HMO business, with Wendy Whittaker-Large
    2024/08/28
    In this summer special episode of Good Landlording, Richard Jackson and Suzanne Smith pick the brain of Wendy Whittaker-Large about what makes a successful, systemised HMO business. The episode a fantastic source of information for anyone who has HMOs, is thinking of converting a property into an HMO or is just "HMO-curious". Wendy gives an insider's view of how to make HMOs a success, and build an efficient systemised HMO business. >> Ask a question: Click here for question form What we cover in this episodeAbout Wendy Whittaker-LargeWhy invest in HMOs?Why do renters like HMOs?Which locations are good for HMOs?How tenancy agreements differ for HMOsWhy 6 Bedroom HMOs are the sweet spotWhat Article 4 means for HMO landlordsTips for developing an successful HMOTips for managing HMO tenantsThe importance of having a systemised business for HMOs About Wendy Whittaker-Large Wendy Whittaker-Large is the multi award winning founder of BestNest, a property development and lettings business, and HMO Success, a specialist HMO training and mentoring company. She's also the chair of the HMO Council Tax Reform Group which successfully overturned the single banding of HMO rooms for council tax in 2023. Wendy is a landlord who's grown a large property portfolio since 2012, mostly focused on HMOs. She has also published two books about HMOs: 101 Essential Tips for Running a Professional HMO and Extraordinary Profits from Ordinary Properties (Amazon links). Wendy is a regular on the speaking circuit, and has a successful podcast called the HMO Success Podcast which is available on Apple, Spotify and Podbean). Why invest in HMOs? An HMO is a house in multiple occupation, in other words, a building in which three or more households live together It's a cross between a hotel and a house, with people living there, or a family home where you might have you know four or five adults living. Whatever happens in the market, there is always a need for good quality, dense housing. Wendy believes HMOs offer tremendous benefits both for the people who live there and also, of course, for landlords investing in this type of housing. Buying an HMO allows one property to generate more revenue than renting it out as one single family let. Wendy says that an average yardstick would be £1,200 - £1,400 pcm net profit across the country. On the other hand, there is more work, more investment and more management time. HMOs cost more to refurbish, as they need to have better fire doors and fire protection, and amenities. The HMO is likely to need a licence, and they are subject to more legislation, such as the HMO Management Regulations. >> Blog post: Property investor guide to the successful management of HMOs Why do renters like HMOs? Renters like HMOs as usually they only pay one amount which includes the rent and the bills. In an age of uncertainty over fuel bills and the cost of living, tenants like only paying one amount per month which covers everything. Living in an HMO is very flexible as there is usually no long term commitment. Tenancies are usually for 6 months and are suitable for those on contracts, who are maybe working across the country, who don't know where they're going to be in the future. Which locations are good for HMOs? Wendy recommends cities and large towns with more than 80,000 people, as they are likely to have the demand from HMO renters. How tenancy agreements differ for HMOs HMO landlords should use a specialist tenancy agreements for HMOs, as opposed to ones for where the property is let to one household or two sharers. This is because professional HMOs tend to be let by the room, and not as a joint tenancy. The renters have exclusive possession with quiet possession of their room (and perhaps an en suite), and share the common parts. The landlord is able to enter the common parts for inspections, and often include a cleaner in the rent.
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    33 分
  • #22: Making a Success of Supported Living, with guest Lisa Brown

    #22: Making a Success of Supported Living, with guest Lisa Brown
    2024/08/21
    In the third of four summer special episodes, Richard Jackson and Suzanne Smith speak to Lisa Brown, nurse turned property developer, who explains how landlords can make a success of leasing their properties to providers of supported living housing. In this episode, Lisa explains what supported living is, how it works, what type of properties are suitable, adaptations, choosing a provider and the advantages and risks for the landlord. You can also connect with Lisa on LinkedIn and find out more information on the Supported Living Property website, the Supported Living Property Podcast and the Supported Living Property YouTube Channel. >> Ask a question: Click here for question form What we cover in this episodeAbout Lisa BrownWhat is supported living?How does supported living work?What types of properties are suitable for supported living?Grants for adaptations for supported living propertiesWhat are the advantages of supported living for the landlord?What to look out for when choosing a supported living partnerCredits About Lisa Brown Lisa had nursing career of over twenty years working her way up to senior sister and emergency nurse practitioner in a busy East London A & E, and she also worked as a health visitor. She saw firsthand a direct impact that poor quality housing or lack of housing has on people's health and well-being. Lisa discovered supported living herself by chance and found it a natural fit with her experience as a nurse. However, she also discovered that property investors often struggled to let properties to supported living providers, and providers struggled to find properties to let. So she came up with the idea to set up her Supported Living Property Network to provides training and a place for providers and property investors to connect. Lisa also has a successful podcast (on Apple and on Spotify), plus a YouTube channel. What is supported living? Lisa Brown defines supported living as arrangement for accommodation for a tenant who has a support need. The support need may be long term. For instance, someone who has learning disabilities, autism, complex mental health, or maybe with physical disabilities, somebody for their for their whole lifetime is gonna require that level of support and input. It can also include people with support needs for a shorter term, for a few months or a few years. This may e people who are homeless, veterans with PTSD, people fleeing domestic abuse, or teenagers transitioning from the care service. There's a whole range of different people who need support in the short term. It's for people who need time to be able to support someone till they can move on and take their own tenancy. There are people with support needs in every community, from small rural communities to big cities, across the country. As there's a higher concentration of people in cities, demand is greater, but there are often requests for properties in a smaller towns and communities. y. How does supported living work? With supported living, the owner of a property enters into a lease with a supported living provider, which may be a housing association, community interest organisation, local authority, charity or care provider. That organisation either grants a tenancy or a licence to the people who will live in the property. The supported living provider provides accommodation to people with support needs ranging from a few hours support a week to members of staff on-site twenty four hours a day helping them access every part of their their life that they need the support for. Where the provider specialises in people with short term needs, they usually proved the support as well as the accommodation. For people with long term needs, the support can be provided separately. What types of properties are suitable for supported living? There is no specific type of property that is suitable for supported living, as such,
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    26 分
  • #21: How to buy and sell property at auction, with guest Bushra Mohammed

    #21: How to buy and sell property at auction, with guest Bushra Mohammed
    2024/08/14
    In the second of four summer special episodes, Richard Jackson and Suzanne Smith speak to Bushra Mohammed, who guides us through how to buy and sell properties successfully at auction. Not only is Bushra a property solicitor with particular expertise advising clients who buy and sell at auction, but she is also a property developer and landlord. This enables her to understand the perspective of property investors, and what the key issues are to look out for. Suzanne first met Bushra after following her Instagram account @bushra_propertyinterest. You can also connect with Bushra on LinkedIn and find out more information on her website. >> Ask a question: Click here for question form What we cover in this episodeWhy do people sell property at auction?Why do property investors buy at auction?Difference between buying property at auction and by private treatyWhy the auction legal pack is important for biddersPractical tips for buying property successfully at auctionPractical tips for selling property successfully at auctionBushra's Golden NuggetsCredits Why do people sell property at auction? People usually decide to sell a property at auction, instead of the usual "private treaty" are usually looking for speed and/or certainty, With speed, the seller knows they will have a legally binding exchange, which is highly likely to complete within two weeks or 28 days. The certainty comes from knowing that the winning bidder will exchange on the day of the auction and will pay a 10% deposit, which they will lose if they don't complete on the purchase. Typically the sellers are those who wish to sell quickly and efficiently, eg to raise money to pay debts, a probate sale when the owner has died or the property may have structural issues. Bushra advises that it is important for potential bidders to find out the reason for the sale, and then decide whether the circumstances pose a risk for them as bidders, and what they can do to mitigate the risk. Why do property investors buy at auction? Programmes such as Homes under the Hammer have taken some of the mystery out of buying property at auction, and increased its popularity. Property investors usually decide to buy at auction in the hope they will be able to buy a property below market value. If they the highest bid, they have the certainty that purchase will complete. There will be no gazumping and no stressful chains. Difference between buying property at auction and by private treaty Whereas with a normal sale by private treaty (buyer makes offer, does searches, exchanges and then completes), when a bid wins at auction, the bidder is legally obliged to pay the deposit, with contracts "exchanging" straight away. There is no cooling off period and the bidder will lose the deposit if they con't complete the purchase within the specified time period, ie 2 weeks or 28 days. This means that someone buying a property at auction needs to do all of their searches and due diligence before the auction. Unlike a purchase by private treaty, they cannot pull out once the bid is accepted. Why the auction legal pack is important for bidders As bidders need to do their due diligence up front, it's really important to study the auction legal pack carefully to make sure there is nothing noted that might affect your decision to buy the property. Bushra advises instructing a solicitor to review it so that they can flag any risks and ask for further information. If the seller provides more information in response to a question, that will potentially put a bidder in a better position as the seller won't automatically send information to all bidders, as is the case with public procurement. >> Blog post: 7 ways to screen your property investments Practical tips for buying property successfully at auction Bushra gives the following tips to help investors buy property successfully at auction:
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    34 分
  • #20: Why interior design is important for landlords, with guest Charlotte Richardson

    #20: Why interior design is important for landlords, with guest Charlotte Richardson
    2024/08/07
    For our first summer special episode of Good Landlording, Richard Jackson and Suzanne Smith pick the brain of landlord and interior designer, Charlotte Richardson, about how good interior design can benefit both landlords and renters alike. As always, it's a practical episode, with lots of actionable tips to help landlords use interior design to help them attract and keep good tenants. >> Ask a question: Click here for question form What we cover in this episodeIntroduction to our guest: Charlotte Richardson of roostInterior design tips for landlords1. See the vision at the start2. Meet the needs of your target market3. Choose quality items4. Maximise the layout5. Flooring recommendations7. Invest in good lighting8. Inexpensive upgrades9. Good choices for paint coloursHow to choose an interior designerGolden nuggetCredits Introduction to our guest: Charlotte Richardson of roost Our guest for this "summer special" episode on interior design for landlords is Charlotte Richardson, Co-founder and Creative Director of roost, the interior design company that specialises in helping landlords and property developers maximise returns and make tenants feel great in their homes. As well as being an interior designer, Charlotte is a landlord and a property investor, and a graphic designer by profession. She has a fantastic blog called the roost interior design blog on her website with lots of great tips. You can follower her account _roost_ on Instagram. Interior design tips for landlords 1. See the vision at the start Charlotte recommends that landlords ask at the start of the project for the interior designer to provide realistic CGI rendering of what the space will look like after the project is complete. CGI rendering is a computer generated 3D visualisation which can help the property investor and the contractor visualise what the space will look like, and avoid costly mistakes before any work is done. It sets the scene for how this project is going to develop. They can see it in a 3D model and 'walk' around the house of flat before anything is done. It's a lot easier to make changes to the layout and even the colour palette at this stage than later on. Realistic 3D visualisations can also help contractors avoid costly mistakes, as they can see what the vision is for the property, plan, and know what's expected. It can also help investors pre-sell the rooms and market the property before the work is finished. 2. Meet the needs of your target market It's important for landlords to understand their target market. This can help landlords make interior design decisions and take care about what the tenants need and value. It will reduce voids and help landlords obtain a good rent. For HMO landlords, the needs of NHS workers are different from administrative staff who like to work from home, manual workers or students. It affects how much communal space that they need, how much space people have in their rooms, what facilities they value. It's also really important to make sure the layout works. Families benefit from flexible living space as their children grow up, and lots of storage. >> Related episode: #1: What makes a good tenant? 3. Choose quality items Having the property in good condition is key. This means choosing quality items that will wear well and last longer. For instance, use large tiles in the shower, which don't need as much grouting as smaller tiles, and will wear better. 4. Maximise the layout An interior designer can help landlords use the space effectively with an excellent layout. 5. Flooring recommendations The choice of flooring is important as it's expensive to replace a bad decision. Charlotte recommends tiles in the bathroom and LVT (Luxury vinyl tiles) in the communal areas as it's hard wearing and is good in areas where there is water, like a kitchen, as it's waterproof. They can be scratch resistant too. 7.
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    29 分
  • #19: Mid-year 2024 rental market update

    #19: Mid-year 2024 rental market update
    2024/07/31
    This episode of Good Landlording is the rental market update for mid-2024, and has the latest Q2 data for rent in England in the 12 months to June 2024. Richard and Suzanne also discuss inflation, the likely impact of population growth on demand, and prospects for future growth. As well as referring to data from ONS and Rightmove, they also talk about the findings in recent reports by Paragon Bank's Next Generation Landlord Report 2024 and Savills' UK Build to Rent Market Update – Q2 2024. For August, the Good Landlording podcast will have "summer specials" which will feature special guests on topics ranging from interior design to HMOs, supported living and buying at auction. It'll give us all a welcome break from politics, as well as introducing us to new ideas. >> Ask a question: Click here for question form What we cover in this episodeLatest inflation figures for Q2 2024Consumer price inflationWage inflationWhat's been happening to rent in 2024?What effect will the government building programme on the PRS?What do Savills say in their Q2 2024 report?Paragon Bank's research into motivations of new investors Latest inflation figures for Q2 2024 Consumer price inflation According to the ONS, the Consumer Prices Index increased by 2.0% in the 12 months to June 2024, the same as the 12 months to May 2024. However, when it comes to landlords, the Consumer Prices Index including owner occupiers' housing costs (CPIH) is more relevant. That rose by 2.8% in the 12 months to June 2024, unchanged from 12 months to May 2024. CPIH is more likely to reflect our costs as landlords, whereas CPI is what the tenant is feeling. Wage inflation ONS figures say that the annual growth in employees’ average regular earnings (excluding bonuses) was 5.7% in the 12 months to May 2024. This is an increase in real terms of 2.5%. However, this is just an average as wage inflation has been stronger in the public sector (6.4%) than the private sector (5.6%). Within the private sector, the finance and business services sector saw the largest annual regular growth rate at 6.7%; while the construction sector saw the smallest annual regular growth rate at 3.0%. Suzanne usually increase rents by the lower of CPIH and wage inflation, which she believes is a good compromise. >> Related episode: #6: What landlords need to know about rent What's been happening to rent in 2024? It can be difficult to figure out exactly what is happening to rent as the data is conflicting. However, rent is now no longer in double digit territory, and the rate of increase has been slowing down. Both Rightmove and the ONS agree that the average rent across is now around £1,300. Rightmove says it is £1,314 for new tenancies (an increase of 6.8%) across the UK, and the ONS has the figure as £1,310 in England, an increase of 8.6%. The ONS figure includes rents for exiting tenancies as well as new tenancies. Rightmove say the average rent in London was £2,661 at the end of Q2 2024, an increase in 4% from a year ago. ONS says that rents increased an average of 9.7% in London. In the North East, by contrast, the government data says that rent inflation in the 12 months to June 2024 was 5.9%, whereas Rightmove says it is 8.3%. According to SpareRoom, rents in London are flat (an increase of 1% in the 12 months to June 2024), with room rents in multiple postcodes decreasing. SW14 (Mortlake) saw the biggest drop of 9%, followed by W8 (Holland Park) and NW5 (Kentish Town) where rents decreased by 7%. What effect will the government building programme on the PRS? Government figures are predicting that the UK's population will grow from under 68 million now, to 70 million by mid-2026, and almost 74 million by 2036 (12 years away). The population is therefore projected to grow even more quickly than the government’s rather optimistic pledge to build 1.5 million homes by 2029,
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    15 分
  • #18: Renters’ Rights – Let’s talk about pets

    #18: Renters’ Rights – Let’s talk about pets
    2024/07/24
    This episode is on the hot and controversial topic of tenants' rights to have pets in rental properties, which is on the horizon again with Labour's new Renters' Rights Bill. Richard Jackson and Suzanne Smith discuss what this right to request a pet is likely to look like, specific examples of when it might be reasonable to refuse for both single lets and HMOs, flats and houses. They also coverthe steps that landlords can take to reduce the risk of damage and being left out of pocket when the tenants move out. >> Ask a question: Click here for question form What we cover in this episodeWhat does the new Renters Rights Bill say about pets?What are landlords' attitudes towards pets in rental properties?What was in the old Renters Reform Bill about pets?The benefits of allowing tenants to have petsWhen would it be reasonable to turn down a request for pets?1. Pets in flats / leasehold2. Allergies3. Pet not appropriate for the property4. Concerns about the welfare of the pet5. HMOsWhat can landlords do to reduce the risks of allowing pets?1. Have a good pet policy2. Make sure you're comfortable that the tenant will look after the pet properly3. Carry out regular inspections4. If it's a dog, ask to meet it!Can a landlord insist on a professional clean at end of tenancy?Golden nugget What does the new Renters Rights Bill say about pets? The briefing notes to the King's Speech say that the Renters' Rights Bill will give "tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed". This is the same or very similar to the wording in the Renters Reform Bill. What are landlords' attitudes towards pets in rental properties? A poll of a few hundred landlords in The Independent Landlord Community Facebook private group shows there is no consensus in attitudes towards having pets in rental properties. Here are the results: 31% already pet friendly 12% would reluctantly accept pets 15% would rather not accept them 31% would not accept pets if at all possible to refuse 11% said it would depend on the circumstances Of those in the "it depends" camp, some would allow it for tenants who've been there for a while and have proven themselves, like a form of probation, showing they can look after the property. Others would charge more rent to reflect the increased risk as they can't ask for a bigger deposit. Bear in mind that the rent should not be above the market rent as that would mean the tenant could potentially successfully challenge a Section 13 rent increase notice in the First-tier Tribunal. What was in the old Renters Reform Bill about pets? Section 10 of the Renters Reform Bill, (which was abandoned before the election) included the right a tenant for to request permission to keep a pet. The landlord would not be able to refuse to give consent unless they had a good reason. The tenant had to make the request in writing and include a description of the pet for. The landlord needed to respond within a certain time period, and could ask the tenant to take out insurance that would cover the risk of pet damage, or require the tenant to pay the landlord's reasonable cost of maintaining insurance against pet damage. And if the renter is unhappy with the decision and thought that the landlord didn't have a good reason for turning down their request, they'd be able to complain to the private rented sector Landlord Ombudsman. The benefits of allowing tenants to have pets Tenants with pets will usually stay longer in the property, reducing voids. Pets also usually have a positive impact on the well-being and mental health of the tenants and their children. There is more demand for properties with pets, which makes the property easier to let. The landlord will usually be able to charge slightly more for the property.
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    26 分
  • #17: What the King’s Speech says about the Renters’ Rights Bill

    #17: What the King’s Speech says about the Renters’ Rights Bill
    2024/07/18
    In this episode of Good Landlording, Suzanne Smith and Richard Jackson discuss what the King's Speech said today about the contents of the new Renters' Rights Bill, which will apply to the private rented sector in England. The discussion includes the key provisions, the extent to which it differs from the Renters Reform Bill, what doesn't appear to be in the Renters' Rights Bill and the situation with EPCs. >> Ask a question: Click here for question form What are the key provisions of the new Renters' Rights Bill The King's Speech itself didn't say much about the new Renters' Rights Bill, other than: "Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions, and reforming grounds for possession". More detail was given in the briefing notes (see page 69-71) that accompanied the King's Speech and Richard discuss what the briefing notes to the King's Speech say about the new Renters' Rights Bill: Abolition of Section 21 ‘no fault evictions’ New Section 8 grounds for possession Ability for tenants to challenge rent increases Ending of rental bidding wars Right for tenants to request a pet Applying a Decent Homes Standard to the PRS Applying “Awaab’s Law” to the PRS Creation of digital private rented sector database Private Rented Sector Ombudsman Anti-discrimination New enforcement and investigatory powers >> Blog post: What the King’s Speech says about the new Renters’ Rights Bill >> Blog post: How to be a pet friendly landlord What did the King's Speech say about EPCs? It was a manifesto commitment of the Labour Party to "ensure homes in the private rented sector meet minimum energy efficiency standards by 2030, saving renters hundreds of pounds per year. Nobody will be forced to rip out their boiler as a result of our plans." Although energy was mentioned in the speech, there was no specific reference to requiring landlords to meet new minimum energy efficiency standards. This is something that would need primary legislation. >> Related episode: #16: What the Labour government has in store for landlords >> Related episode: #14: Manifesto pledges on leasehold reform Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
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    28 分