Tag: tenancy

Posted on

Angela Rayner set to clampdown on Thatcher’s Right to Buy scheme

Angela-Rayner

Angela Rayner plans to reform Margaret Thatcher’s Right to Buy policy, which allows most council tenants to buy their council home at a discount, to ensure the stock of social housing is not depleted.

The deputy prime minister and housing secretary reportedly plans to slash Right to Buy discounts by two-thirds in an unprecedented attempt to stop council house tenants from buying their own homes.

Under plans to be unveiled in the Budget, the discount of 70% available to those seeking to buy their council house would be cut to about 25%.

At the same time, Rayner is to more than triple the amount of time people need to have lived in their home to qualify, from three years to 10.

Last year, 10,896 homes were sold through Right to Buy while only 3,447 were replaced, resulting in a net loss of 7,449. Since 1991, the scheme has resulted in the loss of 24,000 social homes, according to official figures.

Under Right to Buy, which was introduced in 1980 as one of Mrs Thatcher’s flagship reforms, the government sells off council housing at discounts of up to £102,400 to sitting tenants, rising to £136,400 in London.

Rayner acquired her council house using the Right to Buy scheme in 2007 with a 25% discount, making a reported £48,500 profit when selling it, albeit eight years later.

A Ministry of Housing, Communities and Local Government spokesperson recently said: “Right to Buy remains an important route for council housing tenants to be able to buy their own home but it’s scandalous that only a third of council homes sold under the scheme have been replaced since 2012.

“Increasing protections on newly-built social homes will be looked at as part of our wider review but there are no plans to abolish the Right to Buy scheme.”

Original Post: https://propertyindustryeye.com

Posted on

WARNING: Eviction reforms will make landlords ‘choosier’ about tenants

Paul Shamplina, Founder of Landlord Action

Landlord Action’s Paul Shamplina (main image) has predicted a rise in landlords using rent guarantee insurance as well as tougher referencing to protect themselves against the fall-out of eviction reforms.

A perfect storm of tighter grounds for possession and the end of Section 21, along with a lack of investment in the courts and a chronic shortage of bailiffs – as well as higher landlord costs and higher rents creating a greater risk of arrears – means landlords will want to be more stringent with referencing, he tells LandlordZONE.

Once the Renters’ Rights Bill is passed, landlords must instead use a Section 8 and the government’s new Guide to the Renters’ Rights Bill helpfully explains how the legislation will ensure landlords “enjoy robust grounds for possession”.

It will provide protections for tenants who temporarily fall into rent arrears, “supporting both parties by preventing tenancies which are otherwise viable from ending”. This means an increase in the mandatory threshold for eviction from two to three months’ arrears and an increase in the notice period from two weeks to four.

“This will allow tenants more time to repay arrears and remain in their homes, while ensuring landlords do not face unsustainable costs. Landlords can also continue to use the discretionary rent arrears grounds, for example if rent is repeatedly late,” says the guide.

Worry

Shamplina believes that for landlords, it means starting the process – if they have to go to court – with an extra months’ rent arrears added. “The worry for landlords unfortunately is court delays, getting court orders and having them enforced,” he says. “The process is taking longer which adds to the landlord’s costs.”

Landlord Action is getting more instructions from landlords to enforce money orders against tenants which can be very challenging to collect as many tenants have to be tracked down and don’t have much money.

“Post-Covid, rent arrears are getting bigger and landlords feel that some tenants try and get away with it so will pay to try and get it enforced – and this will show up as a county court order,” he adds.

The ultimate guide to handling the eviction process

READ

Original Post from landlordzone.co.uk

Posted on

How Much Can I Borrow for a Mortgage in the UK?

How Much Can I Borrow for a Mortgage in the UK?

When you’re looking to buy a home in the UK, one of the most important questions you will face is: How much can I borrow for a mortgage? Understanding how much you can afford is essential to make the right decision about your future home and to narrow down your property search. The amount you can borrow depends on several factors, including your income, outgoings, credit history, and the lender’s specific criteria.

In this guide, we’ll break down the key elements that determine your mortgage borrowing power, give you tips on how to improve your chances of getting the best mortgage deal, and explain how working with a trusted mortgage broker or homesearch professional can simplify the process.

Looking for personalised advice on how much you can borrow? Speak to the experts at Homesearch Properties and start your journey toward finding your perfect home today.

How Much Can I Borrow for a Mortgage in the UK?

1. Understanding Mortgage Affordability

Before diving into the mortgage market, it’s essential to understand how lenders determine how much you can borrow. The key element here is affordability—which is the amount you can comfortably repay each month based on your income and financial commitments.

Most UK lenders use a combination of income multiples and affordability checks when deciding how much they are willing to lend. Typically, lenders offer between 4 to 4.5 times your annual income. For example, if you earn £50,000 a year, you may be able to borrow between £200,000 and £225,000, depending on the lender’s policy and other factors like your outgoings and credit score.

Want to know exactly how much you can borrow for a mortgage? Use our mortgage calculator at Homesearch Properties to get a tailored estimate based on your financial situation.

2. Income and Salary Multiples

Income is a significant factor in determining how much you can borrow for a mortgage. Most lenders base their calculations on a multiple of your income. As mentioned earlier, most lenders will offer around 4 to 4.5 times your annual salary. However, some lenders may be more flexible and offer up to 5 or even 6 times your salary, but these offers typically come with stricter conditions or higher interest rates.

Single vs. Joint Applications

If you’re applying for a mortgage with a partner, the lender will assess both incomes together. In a joint application, you may be able to borrow a larger amount based on the combined salary of both applicants. However, both applicants will also undergo affordability checks to ensure they can meet the repayments.

For example:

  • Single applicant earning £40,000 a year could potentially borrow between £160,000 and £180,000.
  • Joint applicants earning £60,000 and £40,000 could borrow between £400,000 and £450,000.

3. Affordability Checks and Financial Commitments

In addition to using income multiples, lenders also carry out affordability checks. This ensures you can afford the mortgage repayments based on your current financial situation. These checks take into account:

  • Monthly outgoings: Lenders will review your regular monthly expenses, including utility bills, childcare costs, loan repayments, credit card debts, and more.
  • Other debts: If you have existing loans, car finance agreements, or significant credit card debt, it will reduce the amount you’re able to borrow, as it impacts how much disposable income you have.
  • Future interest rate changes: Lenders may stress-test your affordability by simulating potential interest rate increases. This is to ensure you can continue to make repayments even if your mortgage rate rises in the future.

Because of these comprehensive checks, it’s crucial to have a clear understanding of your financial situation before applying for a mortgage.

Need help with understanding your affordability? Contact Homesearch Properties for expert advice and personalised mortgage guidance.

4. Deposit Requirements

In the UK, the size of your deposit also plays a significant role in determining how much you can borrow. Most lenders require a deposit of at least 5% of the property’s value, although larger deposits are more favourable. The more you can put down upfront, the more competitive your mortgage deal will be. This is because a larger deposit reduces the lender’s risk, and they are more likely to offer you a lower interest rate.

For example:

  • If you’re purchasing a property worth £300,000, you’ll need at least £15,000 (5%) as a deposit.
  • If you can provide a 10% deposit (£30,000) or more, you may secure a better mortgage rate and increase the likelihood of being approved for the loan.

A larger deposit also means you’ll borrow less overall, making your monthly repayments more manageable and potentially allowing you to borrow more within your affordability limits.

5. Credit History and Its Impact

Your credit history is another crucial factor that determines how much you can borrow for a mortgage. Lenders will review your credit score to assess how well you’ve managed your finances in the past. If you have a strong credit history with no missed payments or defaults, you’re likely to be seen as a low-risk borrower, which could increase the amount you can borrow.

If your credit score is lower, lenders may offer you a mortgage, but the amount may be lower than if you had excellent credit. Additionally, you may be charged a higher interest rate, which increases the overall cost of the mortgage. It’s always a good idea to check your credit score before applying for a mortgage and take steps to improve it if necessary.

How to Improve Your Credit Score:

  • Make sure all bills and debts are paid on time.
  • Keep credit card balances low relative to their limits.
  • Avoid making multiple credit applications in a short period.
  • Ensure your name is on the electoral roll.

Looking for tailored mortgage advice? Let Homesearch Properties guide you through the mortgage process to help you secure the best deal based on your financial history.

6. Government Schemes and Help for First-Time Buyers

The UK government offers various schemes to help first-time buyers get on the property ladder. These can help increase the amount you can borrow or make homeownership more affordable by providing support with your deposit.

Help to Buy: Equity Loan

With the Help to Buy scheme, first-time buyers can borrow up to 20% (40% in London) of the cost of a new-build home. You only need a 5% deposit, and the equity loan is interest-free for the first five years. This allows you to secure a larger mortgage with a smaller deposit, though the scheme is limited to new-build properties up to a certain price.

Shared Ownership

The Shared Ownership scheme allows you to buy a portion of a property (between 25% and 75%) and pay rent on the remaining portion. This can be a more affordable way to get onto the property ladder, as you only need a mortgage for the share you’re buying, making it easier to meet affordability criteria.

Discover more about government schemes and how they can help you buy a home. Visit the Homesearch Properties London website for guidance and support.

7. Mortgage Types: Fixed vs Variable Rates

When considering how much you can borrow for a mortgage, you’ll also need to choose between different types of mortgage products. The type of mortgage you choose will affect your monthly payments and overall affordability.

Fixed-Rate Mortgages

With a fixed-rate mortgage, your interest rate and monthly repayments remain the same for a set period, usually between two and five years. This provides stability and makes it easier to budget, as you won’t have to worry about interest rates changing during the fixed period.

Variable-Rate Mortgages

A variable-rate mortgage has an interest rate that can change over time, depending on broader economic conditions. While initial rates may be lower, there’s a risk that your payments could increase if interest rates rise. This option offers less certainty than a fixed-rate mortgage but can be more flexible.

Looking for expert mortgage advice? Contact Homesearch Properties to compare mortgage types and find the best product for your needs.

8. Using a Mortgage Broker or Homesearch Professional

Navigating the mortgage market can be complex, with different lenders offering varying amounts based on their criteria. A mortgage broker or a homesearch professional can help simplify the process by providing access to a wide range of lenders, including some that you may not find on the high street. They can also provide personalised advice and guide you through every step of the mortgage application process.

A good mortgage broker will help you understand how much you can borrow, explain your options, and ensure you’re getting the best possible deal based on your financial circumstances.

Ready to take the next step in your home buying journey? Let Homesearch Properties connect you with trusted mortgage advisors to help you secure the best mortgage deal. For those conducting a rental home search in London, Redbridge offers a balance of affordability and convenience.

Plan Your Mortgage Wisely

When it comes to answering the question, “How much can I borrow for a mortgage?” it depends on several factors such as income, affordability, deposit size, credit history, and the type of mortgage you choose. By understanding these factors and seeking expert advice from a trusted homesearch professional or mortgage broker, you can maximise your borrowing power and secure the home of your dreams.

Remember to plan ahead, budget carefully, and make sure you fully understand your financial situation.

Posted on

How to Find Out Who the Landlord is for a Property in the UK

House Searching - How to Find Out Who the Landlord of a Property in UK

When renting a property in the UK, whether it’s a flat in London or a house in the countryside, it’s essential to know who your landlord is. Understanding the identity of your landlord helps protect your rights as a tenant and ensures you have a point of contact for any issues that might arise during your tenancy. This article provides a comprehensive guide on how to find out who the landlord is for a property in the UK, offering practical advice and resources for tenants and those involved in house searching.

1. Why Knowing Your Landlord is Important

Before diving into the methods of finding your landlord, it’s worth understanding why this information is crucial.

Legal Rights and Responsibilities

Knowing who your landlord is ensures that you understand your legal rights and responsibilities as a tenant. It allows you to verify that your landlord is complying with UK tenancy laws, such as ensuring the property is safe and habitable, registering your deposit with a tenancy deposit scheme, and providing an energy performance certificate.

Direct Communication

Having direct contact with your landlord can simplify communication about repairs, rent payments, or any issues that may arise during your tenancy. It also helps to avoid any potential scams or misunderstandings that could occur when dealing with intermediaries.

Protection from Rogue Landlords

Unfortunately, not all landlords operate within the law. Identifying who your landlord is can protect you from rogue landlords who may neglect their responsibilities, charge unfair rents, or fail to protect your deposit.

2. Identifying the Landlord Through Tenancy Agreements

Reviewing the Tenancy Agreement

The tenancy agreement is the first place you should check to find out who the landlord is. This legal document should clearly state the landlord’s name and address. It is a legal requirement in the UK for landlords to provide their tenants with a written tenancy agreement, especially for assured shorthold tenancies (ASTs), which are the most common type of tenancy in England and Wales.

  • Landlord’s Details: Look for a section in the agreement that details the landlord’s name and contact information. The address provided might be the landlord’s residential address or the address of their letting agent if they are using one.
  • Letting Agent’s Role: If a letting agent manages the property, their details will also be listed in the agreement. However, even if an agent is involved, the landlord’s identity should still be disclosed.

Asking the Letting Agent

If you’re renting through a letting agent and the tenancy agreement doesn’t clearly state who the landlord is, you have the right to ask the agent directly. Letting agents are required by law to provide you with the landlord’s contact details within 21 days of your written request.

3. Using the Land Registry

What is the Land Registry?

The Land Registry is a government agency that maintains records of land and property ownership in England and Wales. By searching the Land Registry, you can find out who owns a particular property, including the landlord of a property for rent in London or elsewhere in the UK.

How to Conduct a Land Registry Search

Conducting a search through the Land Registry is a straightforward process:

  • Visit the Land Registry Website: Go to the official Land Registry website (www.gov.uk/search-property-information-land-registry).
  • Property Search: Enter the address of the property you’re interested in. The Land Registry will provide you with the option to download the Title Register for a small fee (currently £3).
  • Reviewing the Title Register: The Title Register will show the name of the property owner, which should be your landlord. It also provides details about the property, including any mortgages or legal charges.

What to Do If the Landlord Is Not Listed

In some cases, particularly if the property is owned by a company or trust, the listed owner may not be a person but an entity. If this is the case, further investigation may be required to determine the individual or individuals behind the entity.

4. Investigating Through Local Authorities

Contacting the Local Council

Another way to find out who the landlord is for a property is to contact the local council, especially if the property is rented out as a House in Multiple Occupation (HMO). HMOs require landlords to register with the local council, and this registration is public information.

  • HMO Register: If you believe the property is an HMO (for example, if you’re sharing the property with several other unrelated tenants), you can request to see the HMO register from the local council. This register will list the name and contact details of the landlord.
  • Council Tax Information: In some cases, you might also be able to gather information about the landlord through council tax records. While you may not get the landlord’s name directly, you could find out if the council has the owner’s details on file.

Using Freedom of Information Requests

If you’re having difficulty obtaining information through conventional means, you might consider submitting a Freedom of Information (FOI) request to the local council. While councils are not obliged to provide personal information under FOI laws, they may be able to confirm whether they hold certain information, such as the identity of a landlord.

5. Exploring Online Resources

Home Search Sites

Home search sites are invaluable tools for finding a property for rent in London, but they can also provide useful information about landlords. While these sites typically focus on listings and property details, some platforms may include landlord reviews or information if the landlord has a significant online presence.

  • Rightmove and Zoopla: While primarily used for searching properties, some listings might include details about the landlord, especially if the property is let directly by the owner rather than through an agent.
  • OpenRent: This platform allows landlords to list properties directly, often including their contact details. Renting directly through OpenRent can sometimes make it easier to identify and communicate with the landlord.

Landlord Review Websites

There are a few websites and forums where tenants can share their experiences and reviews of landlords. While these sites are not comprehensive, they can sometimes offer insights into who the landlord is, particularly in larger buildings or properties with multiple units.

  • AllAgents.co.uk: This site primarily reviews letting agents, but if the landlord is well-known or has multiple properties, you might find relevant information.
  • TrustPilot: Some landlords and property management companies have profiles on TrustPilot, where you can read reviews and gather more information.

Social Media and Online Searches

In some cases, a simple online search might yield results. Many landlords, especially those who own multiple properties, may have an online presence through business websites, LinkedIn profiles, or social media. While this method is less formal, it can sometimes be effective in identifying the landlord.

6. Direct Contact and Legal Routes

Contacting the Neighbours

Sometimes, the simplest method can be the most effective. Neighbours, especially those who have lived in the area for a long time, might know the landlord or have useful information about the property’s ownership. While this approach requires some initiative, it can be a quick way to gather information.

Sending a Written Request

If you’re already living in the property and the landlord’s details are not clearly provided, you can make a formal request in writing. Under UK law, you have the right to know who your landlord is. The request should be addressed to the person or entity collecting your rent. They are legally required to provide you with the landlord’s contact details within 21 days.

Seeking Legal Advice

If you’ve exhausted all other methods and still cannot determine who your landlord is, it might be time to seek legal advice. A solicitor can assist you in obtaining this information, particularly if there are disputes or concerns about the tenancy. Legal professionals can also help if you suspect the property is being let illegally, such as if the landlord is not following proper regulations or failing to protect your deposit.

7. What to Do After Identifying the Landlord

Verifying the Landlord’s Identity

Once you have identified the landlord, it’s essential to verify their identity. This can be done through several means:

  • Cross-Reference with the Tenancy Agreement: Ensure that the landlord’s name matches the one provided in the tenancy agreement.
  • Check Against the Land Registry: If you’ve obtained the landlord’s name through the Land Registry, cross-check this with the details you have from other sources.
  • Request Identification: It’s within your rights to ask the landlord for identification, especially if you’re concerned about the legitimacy of the tenancy.

Communicating Directly with the Landlord

Establishing direct communication with your landlord is crucial for a smooth tenancy. Ensure you have up-to-date contact information, including a phone number and email address. Regular communication helps in promptly addressing any issues that arise during your tenancy.

Understanding Your Landlord’s Responsibilities

Once you know who your landlord is, it’s important to understand their responsibilities. Landlords are required by law to:

  • Ensure the property is safe: This includes having gas safety checks, electrical safety standards, and providing smoke and carbon monoxide alarms.
  • Register the deposit: Landlords must register your deposit in a government-approved tenancy deposit scheme within 30 days of receiving it.
  • Maintain the property: Landlords are responsible for repairs to the structure and exterior of the property, as well as ensuring the water, gas, and electricity supply is functioning properly.

If your landlord fails to meet these obligations, you have the right to take action, including withholding rent (under specific circumstances) or involving local authorities.

Conclusion

Finding out who the landlord is for a property in the UK is a critical step in ensuring a secure and legal tenancy. Whether you’re looking at a property for rent in London or anywhere else in the country, knowing who your landlord is gives you peace of mind and legal protection.

There are various methods to identify a landlord, from reviewing your tenancy agreement to conducting a Land Registry search or contacting local authorities. Home search sites and online resources can also be valuable tools in your quest to find out this essential information.

Once you’ve identified your landlord, ensure that all details are correct and maintain open communication. Understanding your rights and your landlord’s responsibilities will help you navigate your tenancy confidently, ensuring a positive renting experience in the UK.

Looking for homes? Check this b houses for sale.

Posted on

Deposit Alternatives – better for landlords than tenants, say TDS

Deposit Alternatives - better for landlords than tenants, say TDS

The chief executive of the Tenancy Deposit Service says the burgeoning number of deposit alternative services may represent good news for landlords, but possibly less so for tenants.

Steve Harriott says such schemes are effectively just an insurance premium, and he worries that some tenants may believe that this effectively lifts any responsibility from them for paying for damage or unfair levels of wear and tear on a property.

In a video interview with Landlord Today’s Lee Dahill, Harriott says that some deposit alternative schemes offer as much as 10 weeks’ rent for landlords in the event of a problem. “That’s great for landlords, but do the tenants know that?”

He says that if the damage at the end of a tenancy was equivalent to 10 weeks rent, the landlord will pursue that through the deposit alternative guarantee; however, if the tenant had paid a conventional upfront deposit of five weeks, the landlord probably wouldn’t have taken the tenant to court to pursue the rest.

It’s an interesting five minute interview, and you can see it the video (YouTube) link below:

Letting Agent Today Steve Harriott Deposit Alternative Schemes

To view this Property Podcast Today in full, click here.

Original Post from landlordtoday.co.uk

Posted on

Tenant who threatened gas engineer sent to fix boiler faces jail

Tenant who threatened gas engineer sent to fix boiler faces jail

A tenant in Scotland who admitted threatening behaviour towards a gas engineer who his landlord had booked to fix the property’s gas boiler is to face jail.

57-year-old Steven Bracy, who had been arrested previously when police arrived at his flat to break up a cannabis operation, refused to give gas engineer Ian Higgins access to the property on Gibson Terrace, Dundee (main image) when he arrived to repair the property’s boiler, reports The Courier.

Higgins then returned to his vehicle after a short exchange but Bracy followed him with a hammer and made threats.

At a Dundee Sheriff Court hearing, it was revealed that Bracy, who was described as ‘not having particularly good mental health’ had been in dispute with his landlord and believed Higgins had been sent to sabotage his boiler rather than fix it.

“I think Mr Bracy acknowledges that the difficulty he had was not with Mr Higgins but with his landlord,” said Solicitor Ross Donnelly.

Sabotage

“Mr Bracy had formed the view that his landlord was attempting to sabotage his boiler.”

Bracy is due to sentenced on August 8th once a social work report about his past offences has been completed.

Access to properties presents a major and growing problem for private rental sector landlords, particularly when dealing with gas safety tests and/or maintenance for boilers, and a survey last year by Gas Safety Week revealed that half of landlords reported being denied access to a property for safety checks or inspections.

And at the moment there is very little a landlord can do if, like Bracy, a tenant refuses entry. If they continue to do so, a ‘gas access’ injunction must be secured from a court. If tenants do not comply with such injunctions, they may be held in contempt of court and face imprisonment or a fine.

Image credit: Google Streetview

Original Post from landlordzone.co.uk

Posted on

Landlords warned of huge rise in tenant fraud attempts

Landlords warned of huge rise in tenant fraud attempts
An analysis of over 600,000 tenancy applications has found that fraudulent applications rose by 140% last year.The analysis, carried out by PropTech supplier Goodlord, found that payslip fraud was the most common way tenants try to trick referencing systems.To carry out the analysis, a sample size of more than 300,000 tenancy applications from 2022 was compared with more than 300,000 applications from 2023.
The data shows that, in 2022, just over one case of fraud (1.2) was picked up for every 1,000 applications. In 2023, this rose to 2.9 cases in every 1,000 – a rise of 140% year on year.The most common form of fraud seen is payslip fraud – where tenants either boost the amount of income they’re receiving or edit its source, such as changing a company name. Methods used range from rudimentary editing through to the use of sophisticated photoshopping tools.Other forms of fraud picked up over the last year include providing false passport images, doctoring bank statements, offering fake references, and claiming to work for companies that don’t exist.In 2023 alone, pay slip fraud accounted for 58% of all fraud cases detected and caught by Goodlord. Even one of these slipping through could cost the agent a lifetime landlord value of £10,000.

Despite the overwhelming majority of applications being above board, the rise in fraud over the last year highlights the need for robust safeguards against rental market manipulation.

Nimesh Parekh, Head of Referencing at Goodlord, comments: “Fraud can come in many forms. In some instances, tenants who are desperate to secure a property  think bumping up their salary will help seal the deal.

“Given the current pressures on the housing market, it’s understandable as to why we’re seeing a rise in this type of fraud. However, this is inadvisable as you could end up on the National Fraud Database, impacting future job prospects and other life events such as securing loans.

“And, of course, there is also a much darker side to fraud, such as criminals using false IDs to secure properties, or people who are looking to sign tenancies using forged documents.

“As the tools used to commit fraud grow more sophisticated and personal information is increasingly digitised, it’s vital that landlords and agents can access the cutting-edge technology designed to fight back – ones that can protect them and ensure they can let their properties out in good faith.“

Goodlord says referencing teams are being trained to spot the inconsistencies which give away fraudulent applications in the face of increasingly inventive tricks.