LI Magazine 67th Edition by Landlord Investor Magazine

LANDLORD INVESTOR

Find us on...

LANDLORD | PROPERTY | INVESTMENT

67TH EDITION | 2022

SUMMER IN THE CIT Y FORWARD MARCH TO LONDON JULY 5 S E E PAG E 4

Is there going to be a property crash? | Understanding creative finance | Weathering the storm How one married couple beat the tax changes | 2022: change Is coming | Making Tax Digital Why landlords and investors can’t ignore the levelling up agenda | Gazumped Britain III

A warm welcome to the 67 Edition of Landlord Investor Magazine. TH

Well, what can I say. This edition of LI Magazine is so jampacked with great content that our designer has told me there's barely enough room for a welcome note! So I'll be keeping it short and sweet. A very warm welcome to issue 67 of LI Mag, what a year it has been, so far. We've returned to the live show arena with quite a pop – see my Show Update from page 4 for a precis of our year so far. We nearly had to

make the contents section a double page spread, so I'm not even going to begin to list it here, but as you can see below there is a veritable bounty of great articles to pick your way through. I'll just sign off with a reminder that it's our summer spectacular in London at Old Billingsgate on July 5. If you've not yet booked your tickets then I advise you do so ASAP. Thanks as always for reading and see you in July! TH.

04 16 18 22 26

Show Update Forward march to London July 5

46 48 50

Landlord Advice Improve your property’s energy efficiency

30 32

Finance Weathering the storm

34 38

Finance Gazumped Britain III

52 54 60 62 64 66

Management Spotlight Acara™ Property Management

Market Outlook Capital gain: the rise and rise of London rental costs

68 70

Possession Spotlight Landlord Action

Investment Is there going to be a property crash? Investment Understanding creative finance Investment Investment case study: the bank tower II Taxation How one married couple beat the tax changes

Finance Buy-to-let mortgages for landlords with vulnerable tenants

Market Outlook Why landlords and investors can’t ignore the levelling up agenda

Market Outlook Rent arrears Up 24%: how to survive downturn and protect revenue

LANDLORD INVESTOR MAGAZINE

Editor Tracey Hanbury Design Marc Riley Photography Aneesa Dawoojee Printing IOP Marketing

Business Focus How to find your purpose in business Interiors Styled: increasing your property’s ROI through interior design

Education 2022: change Is coming International Realty An environment of excellence International Realty 10 reasons why to Invest in Dubai Proptech Making Tax Digital Legal How to evict a troublesome tenant: Serving of notices in a post covid world

Development Kensal Green regeneration and opportunity

@LandlordInShow

@LandlordInvestmentShow

Statements and opinions expressed in articles, reviews and other materials herein are those of the authors; the editors and publishers and do not under any circumstances constitute investment or legal advice. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. LIS Media, Tenants History Limited and our contributors will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through the promoted links. Published by LIS Media, 27 Stafford Road, Croydon CR0 4NG. www.landlordinvestmentshow.co.uk | info@landlordinvestmentshow.co.uk

Meet the team TRACEY HANBURY CO-FOUNDER / DIRECTOR

Team: Donegal GAA Song: Galway Girl, Steve Earle Film: Dirty Dancing Food: Indian Likes: A busy show - can’t beat it Dislikes: Rudeness Fave thing about LIS: Building client relationships

KIERAN MCCORMACK BUSINESS DEVELOPMENT MANAGER Team: Manchester United Song: Bonkers, Dizze Rascal Film: American Gangster Food: Indian Likes: Family time, Man Utd, golf (not necessarily in that order) Dislikes: Tinned sweetcorn Fave thing about LIS: No day is the same (hence the song choice)

CHARLOTTE DYE HEAD OF CLIENT RELATIONS & OPERATIONS Team: Spurs Song: The view from the afternoon, Arctic Monkeys Film: E.T Food: Chinese Likes: Anything four legged and furry Dislikes: Clowns and Spiders Fave thing about LIS: Office cuddles with Ollie

STEVE HANBURY CO-FOUNDER / DIRECTOR

Team: Crystal Palace Song: Plastic Dreams, Jaydee (Original) Film: Goodfellas Food: Indian Likes: Team meetings in the pub Dislikes: Bad manners Fave thing about LIS: Show day (as anything can happen)

SUBSCRIBE FREE TO LANDLORD INVESTOR MAGA Z I N E

MARC RILEY CREATIVE DIRECTOR

Team: Letterkenny Gaels Song: What’s going on, Marvin Gaye Film: Anything by the Coen Brothers Food: Sea Likes: Clean typography Dislikes: Paywalls and clickbait Fave thing about LIS: The website

BEN PAYNE SALES EXECUTIVE

Team: Manchester United Song: Brown eyed girl, Van Morrison Film: Meet the Parents Food: Italian Likes: Hitting a nice drive on the fairway (not!) Dislikes: Salad Fave thing about LIS: Meeting new clients and building rapport

LANDLORD SURVIVAL GUIDE IV

LANDLORD INVESTOR

Find us on...

LANDLORD | PROPERTY | INVESTMENT

LANDLORD INVESTOR

WRITTEN BY INDUSTRY EXPERTS COVERING ALL ASPECTS OF BUY-TO-LET

LANDLORD | PROPERTY | INVESTMENT

63 ND EDITION | 2021

ONCE MORE UNTO THE

55TH EDITION | 2020

[ D I G I TA L] B R E A C H BUT ARE LIVE EVENTS NOW

ALICIA CELA HEAD OF ACCOUNTS

Team: Barcelona FC Song: Hotel California, The Eagles Film: Shawshank Redemption Food: Anything Spanish (I'm very biased lol) Likes: Cooking great food Dislikes: Liars. Oh, and liver (can't stand it) Fave thing about LIS: Socialising with the whole team

OLLIE HANBURY ENTERTAINMENT & SECURITY MANAGER

BACK ON THE HORIZON?

JACOB HANBURY SALES EXECUTIVE

Team: Crystal Palace Song: Everything's gonna be alright - Bob Marley Film: The Shawshank Redemption Food: Italian Likes: Socialising with friends Dislikes: Traffic Jams Fave thing about LIS: Show day

Team: Crystal Palace Song: Who let the dogs out Film: 101 Dalmatians Food: Roast Dinners Likes: Walkies Dislikes: Poo in bags left on branches Fave thing about LIS: Getting all the attention

SEE PAGE 6

LANDLORD SURVIVAL GUIDE III

IN THIS ISSUE...

IN THIS ISSUE... Two sides of the same coin

Opportunity Knocks

Once more unto the (digital) breach

Why landlords should let to families on benefits

Buy-to-let vs Build-

Locked Down, But Not Quite Closed Down

Let technology take the strain

Covid-19 triggered opportunity

Advice for landlords during the pandemic

INTERESTED IN ADVERTISING? FIND OUT MORE

LANDLORD INVESTOR 67TH EDITION

What do I do if I'm a student landlord?

Coronavirus & Taxation Landlords Voice

F R E E A D M I S S I O N

LIVE SHOW

LINGS L I

LO N D O N 5

J U L Y

T H E &

U K ’ S

N U M B E R

P R O P E R T Y S P O N S O R E D

CO SPONSOR

2 0 2 2

O N E

L A N D L O R D

I N V E S T M E N T B Y

CO SPONSOR

S H O W

DUBAI SPONSOR

MEDIA PARTNER

OFFICIAL FURNITURE SUPPLIER

Learn more and reserve your FREE show tickets at www.landlordinvestmentshow.co.uk

S H O W U P D AT E

T R AC E Y H A N B U R Y E D I TO R L I M AG A Z I N E

FORWARD MARCH TO LONDON JULY 5 04

LANDLORD INVESTOR 66TH EDITION

S H O W U P D AT E

With 2 hugely successful shows already in the bag, our summer spectacular in London on July 5 is shaping up to be the must attend property & investment show of the year.

ow, what a year. I really can't believe it's already June and that we're looking at our third show of the year in a couple of weeks’ time (more of that in a minute). First, I just wanted to recap and reflect upon the year so far. We kicked off the 2022 show calendar with and absolute stormer of a show at Old Billingsgate in March - see overleaf for some superb pics of the day. It was fantastic to start the year on such a positive footing and it set us up perfectly for the following Birmingham event in May. This marked our 6th return to Aston VIlla Football Club, and like the prior London show was a sell-out success. The feedback for both shows, from attendees and exhibitors has been nothing short of glowing. With 2 resounding success stories in the bag, we are thrilled to be returning to Old Billingsgate on July 5 for our Summer Spectacular. We have over 100 exhibitors from all compass points of the property and investment sector, plus 50+ expert speakers offering excellent advice and 4 brilliant panel sessions. This marks our 74th live show to date and as always we'll have everything you could conceivably need as a buy-to-let landlord or potential property investor, offering Legal Advice, Finance Suppliers, Investment Opportunities, Tax Experts, Insurance, Property Management, Education & Mentoring, Latest Proptech, Furnishings / Decor and myriad other helpful services. For the benefit of those reading who've not yet visited, Old Billingsgate is a stunning venue which spans two floors. Spacious, impressive and easy to navigate, moving our London events here in 2021 took the exhibition experience to another level and cemented our position as the UK’s Number One landlord and property investment exhibition. Join us here to connect with thousands of landlords, investors & property professionals. As always, access to all of this is free, you just need to register via our website. Although I’d be quick as the tickets are going like hotcakes again.

LANDLORD INVESTOR 66TH EDITION

Andrew Neil returns to Chair Morning Panel Debate. Another huge draw at the National Landlord Investment Show are the panel sessions. Featuring a quorum of experts from property, investment, media and government the lively debates offer real insight into the UK property sector from those on the inside. The July 5 show is no exception, and the panel sessions kick-off at 10:15 with 'Pain free property journey - How to streamline and simplify the day-to-day running of your property portfolio' chaired by Journalist, Broadcaster and Landlord Investment Show regular Andrew Neil. The panel includes Chris Bailey, Co-Founder & Group Director, Less Tax 4 Landlords; Catherine Westerling, Head of UK Residential Lettings, Hamptons; Sarah Davidson, Business and Money Editor, The i Paper Paul Shamplina, Founder, Landlord Action and Chief Commercial Officer of Hamilton Fraser - who you'll know from Channel 5's, Nightmare Tenants, Slum Landlords The UK's largest HMO debate Hosted by Elizabeth Warburton, the late-morning session at 11:45 deals with 'HMO: Making it work and avoiding the pitfalls'. Standing to be the UK’s Largest discussion on the subject, panellists include: Mish Liyanage, CEO, The Mistoria Group; Peter Licourinos, HMO expert; Kam Dovedi, Founder, Premier Property Education and Environmental Health Expert, Mykia Angus, who you'll know from appearing on the BBC and Channel 5.

Property Elevator LIVE! The only TV show that gives budding property developers the chance to partner with a seasoned professional returns to join our July 5th London show. Chaired by Elizabeth Warburton the Property Elevator Angels – John Howard, Ranjan Bhattacharya, Helen Chorley, Paul Mahoney and Nicholas Wallwork – will be considering pitches from aspiring property entrepreneurs live on the day between 13:30 and 14:45. Audience places are free, but limited, so if you’ve not already registered to attend we advise you do so via the Landlord Investment Show website ASAP. Will landlords be reformed out of the sector? The day's panel sessions conclude at 15:15 with Will landlords be reformed out of the sector hosted by Ben Beadle of the National Residential Landlord Association (NRLA) and featuring; Vanessa Warwick, Co-Founder, Property Tribes; Sue Coulson, Chief Executive, Capital Letters and Paul Shamplina (who again, I'm sure you'll all know). Reserve your free tickets now With a growing audience hungry for the advice and services our shows offer, there's no time like now to get involved. Whether you’re thinking of attending, becoming an exhibitor, sponsor or expert speaker the National Landlord Investment Show would love to meet you. Find out more and book your free show tickets at www. landlordinvestmentshow.co.uk. All the very best on your landlord investor journey. TH

Next stop, London, Old Billingsgate for our summer spectacular on July 5th. Book your free show tickets now. 05

S H O W U P D AT E

LANDLORD INVESTOR 67TH EDITION

S H O W U P D AT E

March 15 London Show, Old Billingsgate.

The Grand Hall was packed with exhibitors and eager guests, as were the 3 panel debates and Property Elevator LIVE! Andrew Neil even went walkabout to field audience questions in the field.

All images by Aneesa Dawoojee

LANDLORD INVESTOR 67TH EDITION

S H O W U P D AT E

LANDLORD INVESTOR 67TH EDITION

March 15 London Show, Old Billingsgate.

Standing room only at the three panel debates and Property Elevator LIVE, while Andrew Neil skilfully keeps the panel and audience on track. The Nova Financial Golf Simulator was in full swing all day.

All images by Aneesa Dawoojee

LANDLORD INVESTOR 67TH EDITION

MORNING PANEL DEBATE | 10:15 – 11:15 LO N D O N , O L D B I L LI N G S GAT E | J U LY 5

Pain Free Property Journey How to streamline and simplify the day-to-day running of your property portfolio | Chaired by Andrew Neil

ANDREW NEIL

CHRIS BAILEY

CATHERINE WESTERLING

SARAH DAVIDSON

PAUL SHAMPLINA

CHAIR

LESS TAX 4 LANDLORDS

HAMPTONS

THE I PAPER

LANDLORD ACTION

PA N E L S P O N S O R E D B Y : L E S S TA X 4 L A N D L O R D S & H A M P T O N S

Our July 5 Show panels sessions have experts from the full spectrum of the buy-to-let community, but places are limited.

PANEL DEBATE | 11:45 – 12 :45 L O N D O N , O L D B I L L I N G S G AT E | J U LY 5

HMO: Making it work and avoiding the pitfalls The UK’s Largest HMO Debate | Hosted by Elizabeth Warburton.

ELIZABETH WARBURTON

MISH LIYANAGE

PETER LICOURINOS

KAM DOVEDI

MYKIA ANGUS

PA N E L S P O N S O R E D B Y: T H E M I S TO R I A G R O U P & P R E M I E R P R O P E R T Y E D U C AT I O N

LANDLORD INVESTOR 67TH EDITION

LONDON

OLD BILLINGSGATE

JULY 5 13:30 - 14:45

PROPERTY ELEVATOR LIVE! C HAI R ED BY E LIZ AB E TH WAR B U RTO N

ELIZABETH WARBURTON

JOHN HOWARD

HELEN CHORLEY

PAUL MAHONEY

NICHOLAS WALLWORK

RANJAN BHATTACHARYA

AFTERNOON PANEL DEBATE | 15:15 – 16:15 LO N D O N , O L D B I L LI N G S GAT E | J U LY 5

Will landlords be reformed out of the sector? Hosted by Ben Beadle, Chief Executive of the NRLA

S P O N S O R E D BY

BEN BEADLE

PAUL SHAMPLINA

VANESSA WARWICK

SUE COULSON

NRLA

LANDLORD ACTION

PROPERTY TRIBES

CAPITAL LETTERS

LANDLORD INVESTOR 67TH EDITION

We'd like to thank our July 5th show sponsors, co-sponsors & partners...

S P O N S O R E D

CO SPONSOR

DUBAI SPONSOR

B Y

MEDIA PARTNER

Thank you.

OFFICIAL FURNITURE SUPPLIER

JOIN THE UK’S N U M B E R ON E L AN D LO R D & PRO PE RT Y I N V E S T M E N T S H OW I N 2 0 2 2

O L D B I L L I N G S G AT E

L O N D O N 15 MARCH

CARDIFF CIT Y FC

C A R D I F F 29 SEPT

A S TO N V I L L A F C

OLD TRAFFORD

BIRMINGHAM

MANCHESTER

1 8 M AY

11 OCTOBER

O L D B I L L I N G S G AT E

L O N D O N

5 J U LY

2 NOV

W W W. L A N D L O R D I N V E S T M E N T S H O W. C O . U K

Advice & Guidance

I N V E S T M E N T | N O VA

PA U L M A H O N E Y N OVA F I N A N C I A L G R O U P

IS THERE GOING TO BE A PROPERT Y CRASH? 16

LANDLORD INVESTOR 67TH EDITION

I N V E S T M E N T | N O VA

Firstly I think it’s important to define what a property crash actually means. If we look at previous financial crisis’ such as the credit crunch in 2008 and the dot-com bubble in 2000, a property crash can likely be defined as a reduction in value of between 10 and 30% over a period of 12 to 18 months. But is this such a bad thing?

onsidering the fact that aside from these one in 15 to 20 year events where property values decrease, property values are either stable or increasing on a consistent basis. So does it really matter if they reduce every couple of decades? My argument would be, no it doesn’t. If you are investing in good properties, in good areas, where they are being rented the majority of the time and you are generating a decent net rental yield, then so long as you are investing for the mid to long-term, even if the value of your property reduces by a third every 15 to 20 years, you are still going to be substantially ahead. Considering the fact that using a 75% loan to value buy to let mortgage, you can quite confidently generate strong double-digit returns on a yearly basis from the cash you are investing, which is a combination of both rental income and capital appreciation. Generally, the properties we invest in will generate a net rental of at least 5 to 10% per annum and appreciate in value by about 5% per annum as well. 5% capital appreciation per annum on the asset value gives you 20% returns on the cash you have invested as affectively you have quadrupled your investment funds by taking a 75% mortgage and therefore expected returns are around 25 to 30% per annum. Based upon that you double your money every 3 to 4 years and triple your money every 10 years. Therefore, even if the value decreases by 30% every 15 to 20 years you are still ahead many multiples on the funds you have invested both from a rental yield and capital appreciation perspective.

LANDLORD INVESTOR 67TH EDITION

Furthermore, we must consider the fact that property is a very stable investment. It is costly and slow to purchase and sell property which is actually good for the market because it means it moves slowly and does not react to good or bad news too quickly like the share market does. We also must consider the fact that we do not actually invest in “the UK property market”. Most people invest in individual properties in individual locations that are driven by individual driving factors. We refer to this as microclimates which is similar to the concept of microeconomics versus macroeconomics. When you invest in locations that have very strong micro factors such as major infrastructure projects, significant employment growth and therefore new reasons for people to want or need to live there, then you can almost guarantee that that location is going to be more attractive in five years from now than it is today and consequently you can do very well in property investment even in a negative market. To summarise, people should not be afraid of a property crash because if you are selecting the right properties in the right locations you can sometimes avoid a crash but even if it does happen, and you have a mindset over the mid to long term then it really doesn’t matter because you are going to be substantially ahead regardless. If you would like assistance with property investment strategy, selection, finance and/or portfolio building, please contact Nova Financial Group on 0203 8000 600, info@nova.financial or www.nova.financial

We must consider the fact that property is a very stable investment. It is costly and slow to purchase and sell property which is actually good for the market because it means it moves slowly and does not react to good or bad news too quickly like the share market does. 17

INVESTMENT | SIMON ZUTSHI

SIMON ZUTSHI P R O P E R T Y I N V E S TO R S N E T W O R K

UNDERSTANDING CREATIVE FINANCE

LANDLORD INVESTOR 67TH EDITION

INVESTMENT | SIMON ZUTSHI

In this month's article, I thought I would bust some of the myths around Creative Finance and explain some of the ways you could use Creative Finance with your investing.

he reality is that most investors run out of their own money at some point and understandably think they have to stop investing. However, when you know how, there are ways of funding all of your deals using other people's money. Right now you might be thinking “Why would someone else help me to fund my property deals”? That is a great question and the simple answer is that you can help them make money by helping you. Often they don’t have the time, knowledge or inclination to find their own property deals but by working with you, they can still make money from property without putting in all of time and the effort normally required. However, I think it’s really important to say here, that Creative Finance only really works when you have a great property deal. I mean, a profitable property deal, where there's enough profit for you and also enough to share some of that profit with the person who's going to provide the finance. It’s also important to understand that there are several different ways to fund a deal creatively and you need to be aware of all of these This is because if you only have one solution then that might not work in many circumstances. However, with every deal, if it is good enough, then at least one of the different creative finance strategies will work.

LANDLORD INVESTOR 67TH EDITION

Which creative strategy should you use? I have designed a Create Finance Flow Chart which answers this question based on the circumstances of the seller. To explain this, let’s talk about some of the key strategies and how you can use them. I believe most people who read this magazine regularly will be aware of the concept of Joint Ventures (JVs) because many of the case studies featured are about people who have successfully used JVs. A classic example is where you might find a profitable deal, but all of your personal funds are tied up, so you find someone else who brings in all the money and you share the cash flow and potential equity growth, usually (but not always) on a 50:50 basis. When working with JV partners, you need to be very careful who you work with. Select your partners well, get to know them and make sure that you can work well together being very clear on exactly who is doing what in the joint venture partnership. JVs can work very well but I have also seen them end in tears. So be careful here. For me the biggest challenge with JV partnerships is that you are giving away potentially 50% of the cash flow and the equity growth in the property. Whilst many investors believe that 50% of something, is better than 100% of nothing, JVs are actually a very expensive way of funding your projects because you are giving away 50% of the profit for as long as you own that property.

I think it’s really important to say here, that Creative Finance only really works when you have a great property deal. I mean, a profitable property deal, where there's enough profit for you and also enough to share some of that profit with the person who's going to provide the finance. 19

INVESTMENT | SIMON ZUTSHI

Generally, a more cost effective way of funding your deals would be to use private investor loans. This is where someone lends you some money for a period of time, at a fixed interest rate. If you have a project where you are successfully recycling all of your deposit through momentum investing (otherwise known as BRRR), then a private loan makes much more sense instead of a JV. This is because once you've given the funds back to the lender, they have no further interest in the property. Whereas if you fund the project with a JV partner, even once they get their money back, they would still have 50% share of the profits. That is fantastic for them but not so good for you. An interesting twist on a property JV, is where you JV with the property owner. For example, maybe you find a property that could be developed to enhance the value. The current owner of that property may not have the money, time or knowledge to develop it themselves, even though they're aware of it as a possibility. You approach them and instead of buying it yourself, you suggest that you JV with them for mutual benefit. This could be where you develop it together, whereby they're putting in the property and you bring the expertise and the funds to develop the property. Now, it doesn't have to be your money, you could go to someone like CrowdProperty who could potentially fund all of the development costs. In this way, you could do a development deal with someone using none of your own money. Once the property is sold, CrowdProperty get their money back and the property owner and you split the profit. This is a great way of funding a deal using very little of your own money. Another creative finance strategy (one of my favourites) is a Purchase Lease Option (PLOs). This is where you effectively take on the management of a property, typically from a tired or retiring landlord. You earn cash flow from a property that you don't own and you

also have the right to buy that property at some time in the future, at a price that you've agreed today. This means you can also benefit from the potential capital growth over the option period. The property stays in the owner's name, as does any finance on the property. That means you don't need to put in a 25% deposit and you don't even need to get a mortgage. This is a very powerful strategy, because you can start making money quickly. However, most property investors are not aware of PLOs, or if they are, they don't really understand how they work.

Some property sellers don't want to entertain the idea of a PLO because they want to get the property out of their name. They want to sell, they want to get the best price they can, but they may not necessarily need all the money now.

In order for a PLO to be viable, the owner needs to be in a situation where they don't necessarily need the money from the sale of the property. Whilst the vast majority of people selling property are doing so to access the equity in the property, there is a smaller group of people who want to get rid of a property but they don't really need

the cash now. In fact they're probably going to put it in the bank, which as we all know, is not going to give them a great return on their money. For this reason, in the right circumstances a PLO can be a great solution particularly for those people who are selling properties because they don't want the hassle. Some property sellers don't want to entertain the idea of a PLO because they want to get the property out of their name. They want to sell, they want to get the best price they can, but they may not necessarily need all the money now. In this situation, Vendor Finance (VF) is a potential creative solution. This is where you buy the property from the owner usually at the full market price, as long as there is no mortgage, or a low LTV (Loan to Value) mortgage. The equity in the property can be used to act as your deposit. Most traditional lenders would not support this kind of creative transaction because: 1) they don't understand it and 2) because they want to see that you have some of your money in the property. More creative lenders, such as some bridging companies and CrowdProperty, understand these advanced strategies and are happy to help fund these deals, as long as the numbers work and the proper paperwork is in place. As long as you have a great deal there will be a way of funding it creatively. I do hope this article has stimulated your thinking about how you can do more deals this year using less of your own money Invest with Knowledge, Invest with Skill. Best Wishes Simon Zutshi Author Property Magic Founder of property investors network.

Simon Zutshi He really is an expert when it comes to creative finance strategies. He is running some live online training all about how you can use these strategies to fund all of your property deals. To register for there's no cost training, simply use your camera on this QR code or visit this link to register for this online training. https://bit.ly/CFTraining2022

LANDLORD INVESTOR 67TH EDITION

Build your property portfolio Our Real Estate Team put in the groundwork to cement a strong relationship, spending the time with their clients to understand their property portfolio and help them build it.

Talk to us today. Barclays.co.uk/real-estate

Make money work for you

Barclays Business is a trading name of Barclays Bank UK PLC. Barclays Bank UK PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 759676). Registered in England. Registered No. 9740322. Registered Office: 1 Churchill Place, London E14 5HP. Barclays Bank UK PLC adheres to The Standards of Lending Practice which is monitored and enforced by The Lending Standards Board. Further details can be found at www.lendingstandardsboard.org.uk. IBIM11066_March 2022

I N V E S T M E N T | B U YA S S O C I AT I O N

JAMES DEMPSE Y G R O U P S A L E S D I R E C TO R B U YA S S O C I AT I O N

INVESTMENT CA SE S TUDY: THE BANK TOWER II

LANDLORD INVESTOR 67TH EDITION

I N V E S T M E N T | B U YA S S O C I AT I O N

Birmingham city centre’s tallest residential tower

irmingham is one of the UK’s most exciting cities from a property investment point of view. It leads the regional city boom, with a further boost coming from this year’s Commonwealth Games, along with the future arrival of HS2, both of which will bring additional investment to an already performing city.

Upon launch of the development, one London-based investor bought a one-bedroom, south-facing apartment off-plan. They paid a 20% deposit (£40,500) at the launch price, and had already benefited from a 7.5% price rise by completion which equates to 37.5% ROI capital deployed.

One of Birmingham’s most successful projects is The Bank Tower II, situated in the Westside area of the city centre on Sheepcote Street. At the time of completion, it was the tallest residential tower in Birmingham’s growing landscape.

The buyer secured an interest-only buy-to-let mortgage with 75% loan to value (LTV), at an interest rate of 3.49%. The apartment was let out from day one for £1,050 per month to a manager at HSBC.

Brought to market by BuyAssociation in 2019, The Bank is an excellent example of a project delivered for today’s market, and is an interesting case study for any parties looking to invest into Birmingham or within the early stages of similar city centre developments.

James Dempsey, group sales director at BuyAssociation, said: “The Bank is a project we are very proud of. It proved popular with landlords and homeowners, it was delivered on time to a high specification and has since grown a loyal and vibrant community.

Standing at more than 100 metres tall, the building boasts some of the best views across the city’s skyline. It consists of 217 luxury apartments, with access to a range of on-site amenities including a concierge service, an on-site gym and shared communal space.

“It’s great to see investors make such strong returns, but perhaps what has been most pleasing is to see some of those tenants with the Bank then go on to purchase in the building and some of our other projects across Birmingham.”

The Bank is a project we are very proud of. It proved popular with landlords and homeowners, it was delivered on time to a high specification and has since grown a loyal and vibrant community.

•

Purchased on launch (2019) with a 20% deposit = £40,500 (At the BuyAssociation launch price)

•

7.5% price rise by completion = 37.5% ROI capital deployed.

•

Completed on interest-only BTL mortgage: 75% LTV at 3.49%

•

Let agreed on day 1 for £1,050PCM on a 12 month AST

JLL property market forecast 2022 to 2025...

LANDLORD INVESTOR 67TH EDITION

•

Prices are expected to rise a further 18.5%

•

Rents are expected to rise a further 11.5%

TA X AT I O N | L E S S TA X 4 L A N D L O R D S

BEN ROSE L E S S TA X 4 L A N D LO R D S

HOW ONE MARRIED COUPLE BEAT THE TA X CHANGES 26

LANDLORD INVESTOR 67TH EDITION

TA X AT I O N | L E S S TA X 4 L A N D L O R D S

Many landlords have restructured to protect against tax changes these last 6 years. However, not every restructure has involved a change of how property profits are accounted for.

he most profitable restructure is not always a tax restructure. Indeed many landlords are making more money now – having made no changes to how they account for their profits - despite the tax changes. At Less Tax 4 Landlords we have a saying “Don’t let the tax tail wag the planning dog” and an easy-tounderstand example I gave at the National Landlord Investment Show last year reflects just that. Since then of course the Bank of England has increased interest rates 4 times in a row – the fastest increase in borrowing costs in 25 years - and it’s likely that the window on refinancing to beat the tax changes is rapidly closing. But as with any business – keeping costs down is key, be that finance costs or the chancellor’s cheque. So let’s take a look at this example then. A married couple who back in 2015 had a £4 million portfolio, with £2 million in mortgages.

The portfolio is financed at a 4% interest rate (or £80,000 in annual interest payments). With a 6% gross rental yield and 20% tax-deductible expenses, their numbers looked like this:

2015 – Before Section 24 Annual Rental Income

£240,000

£2 million BTL mortgage at 4% interest

£80,000

Other TaxDeductible Expenses

£48,000

Taxable Profit

£112,000

It’s before Section 24, so the finance expenses are still fully tax-deductible. Meaning there are £112,000 of profits

to pay tax on. As the portfolio is shared equally by two people, they will pay tax on £56,000 each – and are higher rate taxpayers. Now fast forward to 2022, and Section 24 is fully in effect and interest is no longer tax-deductible, but we can claim 20% of our finance costs as a deduction against tax. Since 2015, our landlords have done very well, taking advantage of exceptionally low rates and refinanced their portfolio at 2%. By keeping their mortgages at £2 million, their interest payments have halved to £40,000. With loyal tenants, they have forgone any rent increases so still have £240,000 income. They have also managed to keep spending to the same £48,000 tax-deductible expenses, meaning that after their £40,000 of mortgage interest, they have £152,000 before tax. Or in other words, compared to 2015 they have an extra £40,000 in the bank before they pay their taxes.

Since 2015, our landlords have done very well, taking advantage of exceptionally low rates and refinanced their portfolio at 2%. By keeping their mortgages at £2 million, their interest payments have halved to £40,000. LANDLORD INVESTOR 67TH EDITION

TA X AT I O N | L E S S TA X 4 L A N D L O R D S

However...

Because of Section 24, they cannot deduct the £40,000 mortgage finance as a tax-deductible expense, and so are actually taxed on £192,000 – an increase of £80,000 since 2015. You can see this in the table below:

2021 After Section 24

Annual Rental Income

£2 million buy-to-let mortgage at 2% interest

£240,000

£40,000

Change vs 2015

Based on a 2-person unincorporated partnership, that extra £80,000 will be taxed at 40%. That’s an extra £32,000 in tax. However, they also get a 20% tax credit on our £40,000 of interest. So that’s a deduction of £8,000. Meaning their final tax bill has increased by £24,000.

The married couple in today’s example could save £19,670 a year. But what about rising rates? Going forward as interest rates rise, some landlords will look to pay down debt and perhaps reduce the size of their portfolio (restructuring can help reduce CGT as well). Meanwhile others will continue to buy, as long as the numbers stack up.

But remember they do have an extra £40,000 in the bank. So their after-tax income is actually up £16,000 or £8,000 each.

Of course, the couple could be paying less tax, and any Landlord paying more than 20% tax on their property profit, mortgaged or not – is probably paying more tax than necessary.

Down £40,000

If you’re in this position, then I recommend taking our initial assessment at https://lt4l.co.uk/savetax22 – it’s free, and could save you £000s to reinvest in your property business.

Whatever your preferred approach, we’ve added a new interactive calculator to our video-vault to show how your pre-tax income will be impacted as your interest rates rise, based on how much you expect to borrow. To access this and plenty of other resources, register for free at https://lt4l.co.uk/22rates

Annual Income Before Tax

120,000 100,000 80,000 60,000 40,000 20,000

7.50%

7.25%

6.75%

7.00%

6.25%

6.50%

5.75%

6.00%

5.25%

5.50%

5.00%

4.75%

4.25%

4.50%

3.75%

4.00%

3.25%

3.50%

3.00%

0 2.75%

Up £80,000

Annual income before tax

2.25%

£192,000

Up £40,000

160,000 140,000

2.50%

Taxable Profit

£152,000

2.00%

'Real' Profit

£48,000

Annual income before tax

TaxDeductible Expenses

Interest Rate

Going forward as interest rates rise, some landlords will look to pay down debt and perhaps reduce the size of their portfolio (restructuring can help reduce CGT as well). Meanwhile others will continue to buy, as long as the numbers stack up. 28

LANDLORD INVESTOR 67TH EDITION

FI NAN C E | M O RTGAG E S FO R B U S I N E S S

J EN I B ROWN E S A L E S D I R E C TO R M O R TG AG E S F O R B U S I N E S S

WE ATHERING THE STORM

LANDLORD INVESTOR 67TH EDITION

FI NAN C E | M O RTGAG E S FO R B U S I N E S S

It’s impossible to ignore: 9% inflation (a 40-year high), record-breaking fuel prices and rising energy bills. The cost-of-living crisis has everyone’s attention and shows no sign of departing before year-end. Understandably, it’s a significant concern for most of us.

ccording to recent data from The Office of National Statistics (ONS), 37% of renters are struggling to pay household bills, compared to 23% of property owners. Statistically, renters are more likely to be in the lowerincome quintiles than those with a mortgage, meaning they’re more at risk of financial difficulties anyway, let alone during the economic storm we find ourselves weathering. Tenant demand for private rented property is at an all-time high. Paragon’s latest research (Q1 2022) reveals that 62% of landlords reported increasing tenant demand, double the same time last year and almost quadruple 2020. Consequently, we landlords have enjoyed the highest annual rental price growth rate since 2016 at 2.4% in the year to March 2022 (ONS). Of course, landlords are not immune to the wider economic climate either. Rising maintenance and mortgage interest rate costs are likely absorbing some of this increased rental profit. We all know the private rental sector (PRS) is an essential part of the UK housing market, predominantly due to the continued lack of affordable housing. And the vast majority of us strive to provide our tenants with safe, good quality homes while maintaining profits. Therefore, I’d like to offer three tips for how you can keep and protect tenants and your profitability during this challenging time.

LANDLORD INVESTOR 67TH EDITION

Talk to your tenants: Get an idea of what’s going on and whether they’re struggling. If they are, can you find a short-term solution? If you need to increase rent, give them plenty of warning and point them in the direction of any support that may be available to them. They might be able to access housing benefits or other assistance schemes. Rent protection insurance: Although an additional expense to you, rent protection insurance means you can claim back for lost rental income. It’s not usually included with standard landlord insurance, but having it in place will help protect you if tenants fall on hard times. However, it’s more difficult to secure this if your tenants are already in financial difficulties, so better to be prepared. Remortgage: Check your property finance situation with an experienced broker. Although rates are going up, you may find a more competitive option is available to you; reducing monthly repayments and increasing your cash flow. Remember – you can secure today’s mortgage rates up to six months before your term ends. Interest rates will only increase for the foreseeable, so getting in early will save you money. Experts predict house prices will continue to rise despite the issues with inflation, and without more affordable housing, tenant demand will remain strong. While things are certainly challenging, it is just a moment in the grand scheme of property investment.

Although an additional expense to you, rent protection insurance means you can claim back for lost rental income. It’s not usually included with standard landlord insurance, but having it in place will help protect you if tenants fall on hard times. 31

FINANCE | VINCENT BURCH

VINCENT BURCH M O R TG AG E D I R E C TO R V I N C E N T B U R C H M O R TG AG E S E R V I C E S

BUY-TO-LE T MORTGAGES FOR L ANDLORDS WITH VULNERABLE TENANTS 32

LANDLORD INVESTOR 67TH EDITION

FINANCE | VINCENT BURCH

Many landlords haven’t considered renting their property to vulnerable tenants given the perceived risks in what can be a complex sector of the buy to let market.

owever, with the right information and advice, it could present landlords with a viable, long-term business opportunity offering mutual benefits for both landlord and tenant. Today, there’s an increasing recognition of the needs of vulnerable people in society. Incentives from Government, specialist services to manage tenants and tailored mortgages are making it easier for the socially-conscious landlord to take advantage of what is likely to be a long-term demand for rental properties in this sector. So why should a landlord consider this sector? There are a number of reasons that can be attractive. One is that there are organisations that will take full control of the management of the tenants in a property making it a fairly hassle-free arrangement. These arrangements tend to be longer term than standard tenancies which means a more stable level of tenant occupancy, and rental income, with fewer rental voids and lower tenancy turnover, reducing the amount of work you need to do finding replacement tenants. With a better understanding of this opportunity, landlords will be able to manage the risks effectively, optimise their investment and make a big difference to someone’s life. Homes for those in need People can be classed as vulnerable for many different reasons. They could have mental health issues or learning disabilities, be homeless, ex-offenders, victims of domestic violence, asylum seekers or, as the current war in Ukraine has illustrated, refugees. Private landlords have a vital role to play in housing those in need and there

LANDLORD INVESTOR 67TH EDITION

are a number of organisations that support this partnership: •

•

SERCO – the Home Office’s appointed asylum and refugee accommodation provider of recent years. They manage an extensive property portfolio, reducing the cost to Government by integrating hundreds of landlords into one property portfolio. Housing associations and charities – often they will rent properties through the private rental sector to vulnerable tenants, for a period of three years. This can be a convenient way for landlords to secure an income with the dayto-day concerns of the property managed on their behalf by the housing association.

The attraction of dealing with these organisations is that they will effectively take over the management of the tenants in your property for the duration of the tenancy, relieving a lot of the maintenance, time-management and rent collection from you. It’s best to get in touch with these organisations directly to express your interest in providing homes for refugees or vulnerable tenants, so that you can get to grips with the application process and any specific requirements they may have. At Vincent Burch Mortgage Services we have some contact information we can share with you. Getting it right first time There are likely to be a number of specific requirements that you’ll need to get in order when preparing to rent a property to a vulnerable tenant through one of the organisations mentioned previously.

They may be stricter on things like energy performance certificates (EPCs), hygiene standards, fire certificates, electrical appliance testing, décor and general facilities. Knowing this up front will enable you to budget effectively for any preparation or remedial work and make your application go through smoothly. Getting a buy to let mortgage for housing vulnerable tenants Buy to let mortgages for this niche market are not generally available from high street lenders. But, there are a number of specialist lenders who do operate successfully in this sector and our experienced team at Vincent Burch Mortgage Services can talk you through the mortgage options available for your business. It’s worth noting that those on housing benefit and housing association tenants are not typically classed as vulnerable people by buy to let mortgage providers. How can Vincent Burch Mortgage Services help? To maximise the potential for a successful outcome when applying for a vulnerable tenant buy to let mortgage, always speak to an independent broker. Our specialist team of experts can help you navigate the detail and find the best vulnerable tenant buy to let mortgage on the market. With an in-depth knowledge of lender policies and criteria, we’ll work closely with you to ensure the process is simple and stress-free. Call our friendly team on 01603 851534 or email advice@ vincentburch.co.uk and find out how you can make a difference in this specialist market sector.

FINANCE | MFS

S C OT T LO R D U N D E R W R I T I N G M A N AG E R MAR KE T FI NANCIAL SOLUTION S (M FS)

GA ZUMPED BRITAIN III

LANDLORD INVESTOR 67TH EDITION

FINANCE | MFS

At the start of Q2 2022, Market Financial Solutions (MFS) commissioned an independent research study of 521 UK adults, all of whom had purchased property in either England or Wales since 2012.

aving conducted two prior surveys on gazumping over several years, our latest survey uncovers how UK homebuyers are facing these ongoing tactics in the current market. Can I gazump you too? Whilst gazumping tactics have always played a part in the property market, the continuous imbalance between supply and demand of housing within the UK is witnessing an aggressive rise of these unfavourable purchase strategies. There are many reasons that could lead to a buyer being gazumped. With so many shoppers entering the field, many buyers have been at a higher risk of being gazumped due to mortgage delays and increased property chains; a rising challenge facing homebuyers in the current market. In fact, MFS research shows that 25% said that they were gazumped due to being stuck in long property chains that were taking too long to complete. MFS’ latest data, when compared to our previous study conducted in 2019, found that the number of people who would consider gazumping in order to secure the property they want

LANDLORD INVESTOR 67TH EDITION

increased to 47%; 4% higher than our previous study. What’s more, 79% of homeowners believe that gazumping tactics have become more common in the recent years due to high demand and limited supply - that’s an increase of 13% since 2019. It is therefore unsurprising that 68% of those we asked stated that they find the property market to be too competitive. This largely stems from the rising demand for housing no longer being met by supply, leading to limited availability within the UK property market. Find security with your finance Nevertheless, what MFS’ research demonstrates is that the demand for UK property remains strong and, whilst competition is fierce for buyers, the risk of gazumping is not waiving the desire to invest. The desire to own a property or develop an investment portfolio is a common theme amongst the majority of the population and is set to manifest itself over the coming months with another year of high activity. It is now down to lenders to support brokers and direct clients, to help them secure properties quickly, minimising their risk of being at the mercy of gazumpers.

Whilst gazumping tactics have always played a part in the property market, the continuous imbalance between supply and demand of housing within the UK is witnessing an aggressive rise of these unfavourable purchase strategies. 35

AASC Properties

Calling All Landlords Serco provides asylum accommodation and support services in the North West of England and Midlands and East of England. Our purpose is the provision of accommodation, transportation and subsistence payments for asylum seekers whilst their claims are being processed. Our operating model is based on leasing properties from a wide network of landlords, investors and agents with Serco acting as the Tenant.

We are looking for Landlords and Property Investors in the North West, Midlands and East of England

______________________________

A Competitive opportunity

Prospective Landlords—get in touch

We are confident that our lease provision, offers an attractive and competitive proposition within the industry:

• • •

Long term lease (7 years)

• • • • • •

No letting or management cost

•

No void Full repair and maintenance lease (excluding latent and structural defects) No rental arrears Full HMO management Monthly Property Inspections In house maintenance Rent paid in full by BAC’s, on time every month Council Tax and utilities paid by Serco

If you have property and would like more details of the scheme, please get in touch.

AASC.properties@serco.com

"A dominating developer with a rooted purpose to contribute to easing the housing shortage through greener purposes." HJ Collection are a specialist developer focusing on Permitted Development rights and have been revolutionising the development sector. With huge UK and Worldwide investor support including successful joint venture partnerships, HJ Collection are able to provide a managed portfolio comprising of multiple contractors and developers nationwide.

35%

£35m

372

AVERAGE UPLIFT

TOTAL GDV

TOTAL UNITS

To get involved with HJ Collection call:

INFO@HJCOLLECTION.CO.UK | HJCOLLECTION.CO.UK

MAR KE T O U TLO O K | HJ CO LLEC TIO N

REECE MENNIE CEO HJ COLLECTION

WHY LANDLORDS AND INVESTORS CAN’T IGNORE THE LEVELLING UP AGENDA 38

LANDLORD INVESTOR 67TH EDITION

MAR KE T O U TLO O K | HJ CO LLEC TIO N

It’s easy for investors to approach levelling up with a raised eyebrow – if not an attitude of outright dismissal.

ust a glance at recent coverage of the topic is enough to see how this attitude comes about. According to Bloomberg, 86 per cent of so-called “Red Wall” seats are worse off than they were in the pre-Johnson government, suggesting that the government’s proposed investment in the North of England isn’t taking hold. However, it’s important for property investors not to get bogged down in the political question of whether or not the levelling up scheme will achieve its goal of creating perfect equity between North and South – instead, it’s worth thinking about the more practical question of what kind of tangible investments are being made and how property values are likely to be impacted We might not be able to say whether the government’s aim to, for example, decrease the Healthy Life Expectancy gap will be successful – but it’s completely reasonable to suggest that the concrete funding and regeneration plans for the likes of Manchester, Wolverhampton, Sheffield, and so on might have a measurable bearing on property values in those regions. To an investor or a landlord, these plans represent valuable information.

LANDLORD INVESTOR 67TH EDITION

In fact, the value of that information was established back in 2019 via a CBRE report that analysed eleven London-based regeneration projects in order to establish what they described as “The Regeneration Effect.” According to the report, residential properties within proximity of a regeneration zone actually grow at an accelerated rate – to the tune of 3.6 per cent annually. This study referred to limited and specific regeneration projects – but with the levelling up plans set to invest heavily in citywide regeneration, including the £1.5bn brownfield funding allocated to the likes of Wolverhampton (which is set to receive £78m), investors should consider principles like the Regeneration Effect as it applies to entire cities that might not ordinarily cross their radars. Does this mean levelling up will completely succeed? Not necessarily. But it’s entirely likely that swathes of the North and Midlands will find their property values climbing in response to these sweeping and concrete investments into regeneration – and investors shouldn’t ignore the promising possibilities that such regeneration represents.

It’s completely reasonable to suggest that the concrete funding and regeneration plans for the likes of Manchester, Wolverhampton, Sheffield, and so on might have a measurable bearing on property values in those regions. To an investor or a landlord, these plans represent valuable information. 39

MAR KE T O U TLO O K | D O U G L A S & G O R D O N

AILSA ALEXANDER H E A D O F C O R P O R AT E PA R T N E R S H I P S DOUGLAS&GORDON

CAPITAL GAIN: THE RISE AND RISE OF LONDON RENTAL COSTS 40

LANDLORD INVESTOR 67TH EDITION

MAR KE T O U TLO O K | D O U G L A S & G O R D O N

In the most competitive lettings market ever, London rents are jumping to record highs.

massive shortage in supply and incredibly high numbers of tenant enquiries have led to a 14% increase in rents – great news for landlords, not such great news for tenants! At Douglas&Gordon we have 130 applicants to every available property and, as university students graduate and the natural cycle of tenancies turns over to add yet more people into the mix, everything points to a red-hot summer in lettings! One of the major factors contributing to this has been the high numbers of landlords exiting the market, a particularly large amount taking advantage of the strong sales market in 2021. Over the past few years, the government has made it harder and less attractive to be a landlord through various legislative and financial changes. The result? Limited stock and escalating rents for the growing number of tenants moving to London. To put this into context, I asked Chris DeLisle Jones at Zoopla to run reports on the levels of supply and demand for two bedroom properties in Fulham, Chelsea and Battersea, three of D&G’s core areas. The results show that between November 2021 and April 2022,

LANDLORD INVESTOR 67TH EDITION

there was close to double the amount of tenant enquiries for every new listing in each area. This data proves the shortage of stock and the reason why prices are only going in one direction. However, what this also shows is that there’s never been a better time to be a landlord! If you have the right agent behind you, they will negotiate on your behalf to get you the best price and the highest calibre tenants for your property. They will also take the admin of preparing your property for rent off your shoulders - dotting every i, crossing every t and ensuring that it is a safe, clean home for your tenants. For those landlords with tenants in situ, they are likely to want to renew their tenancy for at least another year. This is positive for both tenant and landlord, however it is crucial that your agent is negotiating a proper rental increase for you, in line with the current market. The summer of 2022 is set to be an exciting one for Londoners – the Elizabeth Line finally opened in May, the Platinum Jubilee will see street parties all over the capital and a season free of Covid restrictions will continue to bring more and more people back. The opportunity therefore has never been greater for London landlords.

For those landlords with tenants in situ, they are likely to want to renew their tenancy for at least another year. This is positive for both tenant and landlord, however it is crucial that your agent is negotiating a proper rental increase for you, in line with the current market. 41

MAR KE T O U TLO O K | MA S H RO O M

N I K K I P O U LTO N MASHROOM

RENT ARREARS UP 24%: HOW TO SURVIVE DOWNTURN AND PROTECT REVENUE 42

LANDLORD INVESTOR 67TH EDITION

MAR KE T O U TLO O K | MA S H RO O M

What is causing the cost of living crisis?*

The cost-of-living isn’t going down any time soon, we are currently living in a perfect storm of increases that is making money tight across the board*:

struggling with rent arrears or a high tenant turnover, as tenants begin to look for something more affordable. Neither of which is good news for landlords.

•

The Bank of England base rate has gone up four times in the last twelve months in December 2021; early February 2022; mid March 2022; then most recently in May 2022*

•

Some sources predict the base rate to hit 3% by 2023

•

Inflation hit a 40 year high of 9% in April

Overall, landlords will be feeling the pinch both personally and professionally, as they will have their own bills to cover and will be facing an increased strain in their personal budget. On top of that, landlords will be worried about tenants having the means to pay their rent each month, as tenants are already spending 42% of their income on rent.

•

‘Black Thursday’ saw Ofgem announce that the price cap on energy bills would be increased by 54% from 1st April 2022, adding an average £693 per year on bills

•

Energy bills are due to rise again later this year

•

Rent is on a rapid rise, as the rush back to the cities, coupled with low supply has seen fierce competition between renters looking for a home

•

Consumer goods prices are going up and not just on luxuries - the price of food and clothing is on the up as well

•

The minimum EPC rating is likely to rise, meaning that costly updates will have to be made to properties so they can make the grade

•

Inflation is outstripping wages, so all of these increases will eat up an even larger percentage of monthly income

How is this impacting the rental sector? While the rising rents look like good news for landlords, this is not a sustainable trend, especially coupled with increases elsewhere. Landlords who have seen their rents shoot up after the last couple of months, may eventually find themselves

LANDLORD INVESTOR 67TH EDITION

After the upheaval of the pandemic, which saw arrears shoot up to 24% by April 2021, the last thing landlords need is more worries about making ends meet. How can landlords cope?

•

Keep an eye on your finances. When times are good, it’s tempting to let your investments tick away happily in the background, but it’s important to keep an eye on your cashflow no matter what. Mashroom has a free Expense Tracker that visualises your income and outgoings and makes budgeting more easy

•

Stay compliant. Now is not the time to let your compliance slip! Use Mashroom’s free Document Storage Tool, which sends you an alert when an expiry date is coming up, so you won’t inadvertently let any of your legal certification expire

•

Check your mortgage. When are you due to remortgage? Make sure that you organise a new rate in plenty of time, so your repayments don’t skyrocket as the base rate increases! When rates are high, you need to make sure you have options and Mashroom has access to over 90 lenders and 12,000 products!

•

Spread the cost. While the EPC rating change hasn’t been locked in yet, it’s looking ever more likely, so don’t wait and see - start saving and planning now to spread the cost. Energy costs are spiralling, so the more you can improve your EPC rating and save tenants money, the more popular your property will be!

The rental sector relies heavily on private rented accommodation. Without private landlords, there simply wouldn’t be enough homes for everyone in the country. If landlords feel the pinch and decide to opt out of the industry, where does that leave tenants? And where does it leave landlords? For many, property is an investment in their future, so selling up is definitely a last resort. So how can you ride out the crisis and protect your investment? •

Protect yourself. Invest now in Rent Guarantee Insurance, so you know that even if your tenant is unable to pay, you can cover your expenses. Mashroom offers RGI for just £299 per year and pays out on the first missed or underpayment. This is nothing compared to what landlords stand to lose in missed rent and legal costs to evict. It’s also wise to protect yourself against emergencies with Home Emergency Insurance, as otherwise that expensive boiler breakdown will come out of your pocket (be sure to read the full details of the policy in your policy documentation)

Ultimately, there is no easy way to get through a cost crisis; we will all feel it. But landlords can protect their investments through a combination of wise budgeting and smart spending. If you’re a landlord looking to economise, head to Mashroom’s stall to find out about our free products and how we can help you save!

*All correct at the time of writing

shop.loft.co.uk

Official Furniture Supplier

FURNITURE WITHIN 48 HOURS REMOVED RECYCLED Available from our London & Manchester warehouses

LET YOUR INVESTMENT WORK FOR YOU REGISTER YOUR INTEREST TO ACHIEVE A 10 YEAR RETURN ENQUIRE NOW

PETER LEE

Director Operations International Forest Real Estate

Direct Dial UAE:

L AN D LO R D ADVIC E | HAM M E R S M ITH & FU LHAM CO U N C I L

C O U N C I L LO R F R A N C E S U M E H CABINET MEMBER FOR HOUSING AND HOMELESSNESS HAMMERSMITH & FULHAM COUNCIL

IMPROVE YOUR PROPERT Y’S ENERGY EFFICIENCY 46

LANDLORD INVESTOR 67TH EDITION

L AN D LO R D ADVIC E | HAM M E R S M ITH & FU LHAM CO U N C I L

Due to the current energy crisis, as many as a third of our residents could be struggling to pay their energy bills this winter. Making your property more energy efficient can help you and your tenant save money.

ere in Hammersmith & Fulham we’re working to ensure all our residents live in safe and warm homes.

To make this happen, we’re now enforcing the new Minimum Energy Efficiency Standards. This is not only the right thing to do for our private renters and to help level the playing field for landlords, it’s the right thing to do for the environment. Why should I improve my property? The wellbeing of tenants is a priority for many landlords. Damp and mould are a common issue within the rented sector and can be a sign of the quality of property. Installing insulation and ventilation can help to resolve this. The new rules require domestic landlords to ensure their properties have an Energy Performance Certificate (EPC) rating of E or above. F and G rated properties risk a financial penalty from your local authority. Be aware, this target is currently set to increase to EPC C by 2030. Non-domestic landlords will also need to improve their properties to EPC B by 2030.

LANDLORD INVESTOR 67TH EDITION

What benefits will I get? Improving your property with energy efficiency measures may even increase its value. Additionally, if you’re a landlord that pays the energy bills, adding energy efficiency measures will help you save money. Can I get any financial support? There are grants to help you improve your property. These include the Green Homes Grant: Local Authority Delivery scheme and upcoming Home Upgrade Grant. Grant funding can go to measures such as insulation or even renewable heat sources. There are other national schemes such as the Energy Company Obligation and the new Boiler Upgrade Scheme, which is also available to small businesses. To see what help Hammersmith & Fulham is offering, visit: www.lbhf. gov.uk/housing/energy-initiatives To find out if there are any grants or schemes in your area, please visit: www.simpleenergyadvice.org.uk/ grants or contact your local authority.

The wellbeing of tenants is a priority for many landlords. Damp and mould are a common issue within the rented sector and can be a sign of the quality of property. Installing insulation and ventilation can help to resolve this. 47

B U S I N E S S F O C U S | H O S T & S TAY

DA L E S M I T H H O S T & S TAY

HOW TO FIND YOUR PURPOSE IN BUSINESS

LANDLORD INVESTOR 67TH EDITION

B U S I N E S S F O C U S | H O S T & S TAY

Most businesses are launched with the aim of providing a service or a product. But, argues Dale Smith, Chief Executive of holiday lettings firm Host & Stay, should we be aiming higher?

e set up Host & Stay in December 2018, when it had nine properties on the books. Now, it has over 550 holiday homes under management, and it’s this success that has made us rethink our wider purpose. The holiday home letting service was our first business, and, in 2020, we formed the SDDE Smith Group, which is now a portfolio of complementary companies. Alongside Host & Stay, the group comprises a number of property-related businesses, including legal practice Grey-Smith Legal and construction firm WOODSmith Construction Group. However, as we continue to grow and develop the group, we have realised that our purpose is no longer just to provide the best possible service to our clients and to create a profitable business that can provide jobs. It now runs much, much deeper than that and we have come to recognise we have a much larger purpose to fulfil. At the turn of the year, we set a group objective for 2022, which was to embark upon establishing and defining our ESG (Environmental, Social Governance) strategy. This is a big piece of work to undertake but something that is becoming an essential part of business and one that has the potential to have a huge impact on people, communities and the planet. We identified a consultancy firm to work with us on our ESG journey, and we’re now several months into what is a nine-to-12-month programme aimed at establishing our strategy, direction and

LANDLORD INVESTOR 67TH EDITION

objectives for the short, medium and long term. Prior to embarking on this ESG journey, we had already been thinking about our wider purpose as a group. This was when we realised that we, as a business, can and do have a huge impact on our colleagues and their families, not to mention the communities in which we operate and the economies of those communities.

Ultimately, our continued growth means we can create better communities for people to live in, through the economic benefits that Host & Stay can bring; better places, environments and businesses for people to work in and improved places to stay, through our high-quality accommodation offering. hostandstay.co.uk

We are now on the path to delivering our true purpose as a business, which is to make the North East one of the best places to live, to work and to stay. Host & Stay is a prime example of how we’re doing this. Its incredible growth has led to constant reinvestment into the business, driving local North East-based jobs and employment, and developing and training our colleagues so that they can support our continued growth in the months and years ahead. Wherever possible, we take on people from the region. Local employment and the up-skilling and development of local people is always high on our agenda as a North East business. And while we’re doing this, we’re also driving tourism in the region, bringing in visitors from across the UK and beyond to stay in our villages, visit our attractions and spend in our shops. In fact, in a recent survey we found that on average, our guests spend £140 per guest per stay, which will equate to a £49m total spend in the local economy in 2022.

In fact, in a recent survey we found that on average, our guests spend £140 per guest per stay, which will equate to a £49m total spend in the local economy in 2022. 49

I N T E R I O R S | S T Y L E D®

B E T H A N Y WA L K E R HEAD OF INTERIOR DESIGN & P R O J E C T M A N AG E M E N T STYLED

ST YLED.

LANDLORD INVESTOR 67TH EDITION

I N T E R I O R S | S T Y L E D®

Increasing your property’s ROI through interior design.

eal estate is usually the most expensive investment that people will make in their lives. When it comes to buy to let properties, you’re not only investing your money, but also your time and energy – so ensuring you can get it back on the market looking its best, as soon as possible, is key. Whilst many are happy to take on the role of re-designing or even fully renovating themselves, often there are many unforeseen bumps in the road that can impact your timeline, budget and most importantly, your well-being. Onboarding an interior design team at the start of your project can help put a plan in place to prepare for these circumstances, to ensure a stress-free and more streamlined process for everyone involved, as well as leaving you with a stunning property at the end. The initial price of hiring an interior designer may seem counterintuitive, especially if you have a strict budget in place, however in most cases, they really end up paying for themselves. A good interior designer will be able to advise on where to prioritise your money in order to maximise your budget. For example, allocating more money to hard-wearing and durable furniture pieces, such as a living room sofa, is a wise investment to save you making costly repairs in the long run

LANDLORD INVESTOR 67TH EDITION

due to wear and tear. Equally, they can offer expertise on how to achieve your desired look on your given budget. When it comes to any form of construction, a designer can provide detailed technical plans to avoid any costly mistakes with electrical or plumbing works. The job of an interior designers is to make the process as smooth as possible for the client by project managing and coordinating these works, meaning the margin of error is drastically reduced by using a designer. Another key benefit of hiring an interior designer is to ensure you are left with an attractive yet timeless design. Finding a balance between creating something eye-catching whilst also ensuring it won’t be out of style after a few months can be tricky, however this is exactly what interior designers are trained to do. By having a visually pleasing environment, the value of your property will instantly increase, as will the number of potential buyers or tenants, providing you with a much larger yield than without. To find out more about how an interior designer can help you get the best out of your investment, or to find out more about our services, get in touch via our website www. styledinteriordesign.co.uk

A good interior designer will be able to advise on where to prioritise your money in order to maximise your budget. For example, allocating more money to hardwearing and durable furniture pieces, such as a living room sofa, is a wise investment to save you making costly repairs in the long run due to wear and tear. 51

M A N A G E M E N T S P O T L I G H T | A C A R A™

MANAGEMENT SPOTLIGHT ACAR A™ PROPERT Y MANAGEMENT

LANDLORD INVESTOR 67TH EDITION

M A N A G E M E N T S P O T L I G H T | A C A R A™

Acara™ Management was formed in 2012 to offer landlords an independent hands-on tenancy management service because of a general disenfranchisement by landlords with the traditional admin only model of management offered by estate agents. We started with three aims – to not be an estate agent, be mobile and hands on, and avoid expensive solutions to simple problems.

ithin the wider Acara™ Property Group, we offer a lettings service and an architect that sit nicely alongside our management and maintenance services, to offer as many related services as possible. We started with our founder Paul, an electric car and a bag of tools. Fast forward 10 years and we are the leading tenancy management service in the UK! We are a team of 30, including hands-on tenancy portfolio managers, blocks managers, operations & finance, cleaners, administrators, estimators and a full team of multi-skilled builders. We have a unique hybrid model combining maintenance and management with a fleet of 17 branded electric vans and cars, scooters and motorbikes. We offer Tenancy Management, Block Management and Building & Maintenance to thousands of clients. We are based in Richmond, but travel across London daily for our sites. We manage tenancy portfolios of 1 to 100+ along with HMO’s. Our managed blocks and estates range from 5 to 100+. Our tenancy management service includes odd jobs as part of the service. This means all the small DIY

LANDLORD INVESTOR 67TH EDITION

tasks, that a proactive landlord would do themselves – we do at no extra cost! We also work hard to reduce the carbon footprint of the properties within our portfolio. Each block under our management is serviced by two staff members, one takes the lead administratively and the other practically. We attend to decorating, carpentry, plumbing, electrics, boiler servicing, gas engineering, brick laying, roofing, drainage, gardening, cleaning, waste clearance, furniture delivery, appliance installation, kitchens, bathrooms, extensions, loft conversions and new builds – all in house! We have a huge inventory of tools to assist us, including our own dehumidifiers, pumps, air movers, scaffold towers, drainage, CCTV, 3D & thermal cameras, gutter clearing vacuums, carpet cleaners, jet washers, ladders, drones to manage property in the most modern, efficient and cost effective way possible. We are proud to say no other company offers this combination and depth of service. We have ambitions to expand over the next few years into further related property services, innovative construction methods and more property development work.

We have a huge inventory of tools to assist us, including our own dehumidifiers, pumps, air movers, scaffold towers, drainage, CCTV, 3D & thermal cameras, gutter clearing vacuums, carpet cleaners, jet washers, ladders, drones to manage property in the most modern, efficient and cost effective way possible. 53

E D U C AT I O N | P R E M I E R P R O P E R T Y

K A M D OV E D I FOUNDER PREMIER PROPERTY GROUP

2022: CHANGE IS COMING

LANDLORD INVESTOR 67TH EDITION

E D U C AT I O N | P R E M I E R P R O P E R T Y

The Property Market in 2022 is about to change drastically. With sky rocketing inflation, interest rates creeping up, tax hikes around the corner and a looming recession, many people think that it’s over for property investors.

ut trust me, there truly will NOT be an opportunity like this again for at least another 20 years, and by following the 4 principles below, you can start and scale your property investing profitably in 2022. 1. Fix your interest rates. I’ve been sharing with the property community how interest rates are about to change, the levels they are about to go to and how quickly they are about to get there is not to be underestimated. At Premier Property, we have around 7-12 projects on the go each month, ranging from buy to lets, to £Multimillion pound developments which involve full demolitions and rebuilding from foundations upwards. All and any of the borrowing on these projects is on a fixed rate basis.

3. Buy well - In property, you make money when you buy. There are people out there buying at ridiculous prices, and the numbers simply do not add up. One important point is to buy well, BUT also to know if you could have bought even better. For example, I recently met someone who achieved a 20% discount on a purchase. That sounds great, but they could have actually achieved a 30% (31.2% to be exact) discount, which was an extra saving of around £20,000. As the saying goes, you don’t know what you don’t know, so always keep learning. 4. Property is a people business.

2. Learn how to minimise your tax.

It surprises me how people forget this. Property is indeed a peoples business, it may at times feel like it isn’t, but there is always someone on the other side. So, remember, build your relationships during this period of uncertainty, because you will be able to help a lot of people soon with what’s about to happen.

There is a big tax grab around the corner, so learn how to minimise your property tax according to HMRC’s guidance. We hold an online masterclass about this, and you can join for free as a landlord investment show subscriber. Email hello@premierproperty.co.uk and let us know you’d like to join us on this (limited spaces).

Now as many people in property know, Premier Property provides property education you can trust. As a thank you for reading this editorial, If you would like us to answer any questions or would like to join us on a free workshop, email hello@premierproperty.co.uk and we will send you something that is beneficial to you.

LANDLORD INVESTOR 67TH EDITION

Innovative Way to Invest in Buy-to-Let Residential Properties What is CrowdToLive’s magic sauce? CrowdToLive® (CTL), an FCA regulated property FinTech company established in 2016, connects home buyers and investors by offering property financing opportunities and equity investment through shared ownership. •

homebuyers can finance their home without incurring debt, and

•

investors can build a diversified property portfolio without the hassle of tenant and property management while avoiding a large part of the buy-to-let related costs.

At maturity of the 5-year lease, if the home buyer has not acquired the entire property, investors have the right to either renew the tenancy or liquidate the property. Maturity Stage:

nationality and gender mix of professionals dedicated to serving our clients.

How does CrowdToLive® work? The home buyer (co-owner and tenant at the same time) and the investors enter into a co-ownership structure, whereby the home buyer (minimum 5% property ownership) rents the share of the property he/she does not own. Initial stage:

Throughout the life of the product, the home buyer has the option to staircase at a premium. On each staircasing the investors monetise the capital gain. Life of the product Stage:

•

Environment: We are currently working on developing an environmental program, alongside our current home buyers (co-owners and tenants at the same time), to upgrade their properties by reducing carbon emissions generated from electricity and water consumption.

•

Social: CTL is developing a charity initiative allowing investors to help less fortunate individuals, by gifting, part or all, of the monthly rental income yield generated from their property investments.

What are the appealing factors to investors? •

Above market annual net rental yield: 5-7% (Inflation hedged)

•

No property management and maintenance costs

•

Guaranteed capital gain on home buyer staircasing, and potential capital gain at completion

•

5 years assured shorthold tenancy contract

•

Affordable minimum investment amount offering greater diversification

•

Availability of exit options through selling board on a best effort basis

•

Reduced returns volatility (no vacancy)

How does CrowdToLive® support its community? CTL is committed to supporting the surrounding communities in which it operates. The firm has developed a corporate social responsibility (CSR) programme that includes a variety of activities ranging from governance to environmental and social initiatives. •

Governance: We believe in offering equal opportunities to our collaborators. CTL has a

An opportunity for Landlord Investor Magazine beyond their wildest dreams! 50% discount on platform fee using the promo code BEATINFLATION2022 starting 1st June 2022 until 31st August 2022. Enquire on www.crowdtolive.com | +44 203 542 1453 | info@crowdtolive.com

I N T E R N AT I O N A L R E A LT Y | S O T H E B Y ' S

AN ENVIRONMENT OF EXCELLENCE

LANDLORD INVESTOR 67TH EDITION

I N T E R N AT I O N A L R E A LT Y | S O T H E B Y ' S

At UK Sotheby's International Realty we provide you with an environment of excellence in which to sell, buy, let, invest and manage your property. We have over 1000 offices across 75 countries helping you take your property to a global market. With £89 billion in annual value from 1,410 closed referrals, we make our international network work for you.

hile most of our homes are sold in the £1£2 million range, our unparalleled access means that we can also bring you the most exquisite properties. Our team has unrivalled local area specialists and our promise is that you will have one point of contact, alongside a dedicated Asia desk, Russia desk and a Middle East desk; we are your gateway to the global market. The collective experience of our team paired with thorough knowledge of the area means our advice will guide your next step to solid ground.

options, rent management or fully managed. UK Sotheby's International Realty is a member of the ARLA Client Money Protection Scheme and our redress scheme for consumers is The Property Ombudsman. No service fees; subject to contract. Exceptional service is naturally included.

In terms of sales, UK Sotheby's International Realty operates throughout London and the home counties, with listings ranging from Chelsea townhouses to Camden apartments right through to Cobham family homes. When your home is represented by the Sotheby's International Realty brand it benefits from the worldwide recognition and prestige of the Sotheby's name and gains exclusive access to highly qualified global clientele.

We understand the needs of individual and corporate landlords and when you instruct us, you can relax knowing your property is in experienced hands. Managing a property can be a full time job, especially with work, family

For rentals, we cater to all types of tenants; for short, medium or long term lets and rentals can range anywhere from £500 per week to +£20,000 per week. UK Sotheby's International Realty's involvement with your tenancy is dependent on the basis of our instruction. There are two service

Property management services bespoke to your needs. Offering experienced advice for all types of residential properties. We trust the right people to get the job done, and we can manage the task so you don't have to.

commitments or particularly if you live overseas. Our complete management services includes: day-to-day running of the property, vetted contractors and rates, inventories and end of tenancy deposit negotiations, tenancy alteration administration, regulation advice and updates, legal action (in the rare event that this is necessary), health & safety administration, optional refurbishment and interior design service, out-of-hours emergency service, service charge and ground rent payment and proactive rental collection. So whether you are a first-time buyer, a landlord looking for an investment property, the perfect London pied-aTerre, family home or trophy asset, UK Sotheby's International Realty sells and rents homes across all areas of the market.

We are your gateway to the global market. The collective experience of our team paired with thorough knowledge of the area means our advice will guide your next step to solid ground.

Guy Bradshaw Managing Director

James Somers MARLA Lettings Director

guy.bradshaw@sothebysrealty.co.uk +44 (0)7849 398 941

james.somers@sothebysrealty.co.uk +44 (0)7849 399 086

LANDLORD INVESTOR 67TH EDITION

I N T E R N AT I O N A L R E A LT Y | F O R E S T

PETER LEE D I R E C TO R O P E R AT I O N S ( I N T E R N AT I O N A L ) F O R E S T R E A L E S TAT E

10 REASONS WHY TO INVEST IN DUBAI

LANDLORD INVESTOR 67TH EDITION

I N T E R N AT I O N A L R E A LT Y | F O R E S T

As a UK property investor, you have a natural inclination to want to know what any potential opportunity could offer your portfolio. With property, one of the biggest focuses is on the location, location, location, since the figure that can be achieved will be influenced of the country and city you are investing in having a indirect impact on your return on investment, especially considering the tremulous world we live in today. Here are my views as a property client director @ Forest Real Estate consultancy of the top 10 reasons of why Dubai is a compelling place to invest and why it has developed into a preferred lifestyle and real estate destination by investors all over the world.

3. World-class Infrastructure

9. Property Investor Visa

Dubai is a modern, world-class city with record-breaking skyscrapers, bustling megamalls and high-tech transport infrastructures. Dubai metro is the world's longest driverless metro network and the City rapidly expanded in its run-up to Expo 2020.

Investors who purchase a Dubai property above AED 1 million ($272,294) are eligible to apply for the Property Investor Visa. This renewable Property Investor Visa enables the investor to obtain an Emirates ID, UAE Driving License and sponsor the family as well.

4. Tax-Free and Freehold As per the UAE's VAT Law, anything designed for living in, such as your own home, is considered residential and is of 0% VAT in addition the first supply of residential real estate within three years from completion is also of 0% VAT. 5. Safe & Stable

Before I share with my own 10 reasons let me start with a reason from what many consider the Google of the travel world where people go for honest, unbiased reviews of hotels, restaurants, sights and activities by fellow travellers. TripAdvisor, it’s no secret that most travelers will eventually end up on TripAdvisor when planning their travels.

UAE is one of the safest countries in the world. The World Economic forum ranked UAE as the 3rd safest country in the world. Proactive government initiatives and a stable law and order system, attract expats from all over the globe to Dubai.

Dubai has been ranked as the most popular destination in the world for 2022 according to the Tripadvisor 2022 Travellers’ Choice Awards.

Dubai has a strong Real Estate and Regulatory Agency (RERA) that enforces a stringent framework of rules and regulations. The transparent policies investor's rights and boost long term growth of the sector. RERA is one of the regulatory divisions of DLD, which sets the rules and provisions for the Dubai real estate market. These rules include many things: from the laws on buying and renting real estate in Dubai, to the legalization and registration of various real estate-related contracts with the help of RERA all in place to protect the investor.

The emirate beat London, Cancun, Bali and Paris to be recognised as the world’s best-rated destination in the Tripadvisor’s 2022 Travellers’ Choice Awards… Not only that but the travel booking and reviews platform also unveiled its Best of the Best Destinations, which saw Dubai beat the likes of London, Cancun, Bali and Paris to snag the coveted top spot 1. High rental Yield Dubai offers one of the highest rental yields in the world. Compared to global property destinations, the cost of purchase is lower in Dubai compared to the majority if not rest of world when generating higher rental yield. 2. Growing Population Dubai is one of the fastest growing cities in the world with a population growth of 1000% in just 40 years. As of 2017, Dubai has around 3 million residents (5.2 million forecast by 2030) which the majority of which are expats from over 190 countries. This is projected to double in the next decade. *(source — www.dsc.gov.ae)

LANDLORD INVESTOR 67TH EDITION

6. Strong Regulations

7. Aviation Hub Dubai is strategically located with almost 70% of the world's population within an 8-hour flight. This makes Dubai International Airport the world's busiest international passenger hub with close to 85 million people passing through in 2017. 8. Booming Tourist With adrenalin-pumping desert safaris, luxurious spa breaks, mega shopping malls, fascinating wildlife encounters, high-octane skydives, and exhilarating water park rides, Dubai has something for everyone.

10. World- Class Sporting Events Dubai is home of the most prestigious sporting events in the world, putting the City in the global spotlight throughout the year. these include the premier golfing championship — Omega Dubai Desert Classic, Dubai Tennis Championships, Dubai Rugby Sevens, and Dubai World Cup — one of the richest horse races in the world. In summary, Dubai is one of the most happening locations in the world and not only in the United Arab Emirates (UAE) where it is located. There are also two other cities in the UAE that are well known around the world for the amenities that they offer – Abu Dhabi and Sharjah – but they do not really compare with Dubai in any way whatsoever. It is like as if Dubai is on a separate plane when you compare it to rest of the so-called top cities of the Worlds, let alone the Middle East, let alone the UAE. There are so many reasons as to why you should invest and own a property over in Dubai. Forest Real Estate LLc is a long established and independent unbiased property investment consultancy with offices in the very hub of what is arguably the best location, location, location for property investment, Dubai. If you’re interested in investing in the Dubai property market, you’re in the right place and Forest Real Estate would welcome potential investors to take a look at our current Properties – Forest Real Estate LLc. If you’d like any further advice on anything we’ve mentioned above, or if you are considering investing in one of our opportunities, drop us a message or call us on +971 (0) 561383464 or myself directly, Peter Lee, Director Operations International, on WhatsApp +44 (0) 7900887766.

P R O P T E C H | YA R D I

VA N E S S A E D E T YA R D I

MAKING TA X DIGITAL

P R O P T E C H | YA R D I

A Seamless Transition for Landlords.

n case you hadn’t yet heard, Making Tax Digital (MTD) will be extending its operations to reach taxpayers with business and/or property income over £10,000 as of April 2024. It’s part of the government’s strategy to support the digitalisation of businesses and modernise the tax system. Initially, with MTD in place, property owners will face additional processes when submitting their tax returns. I spoke with Fred Jordaan, team leader and consultant at Yardi Breeze to explain why MTD will have a positive impact on landlord operations. “The continued growth of Making Tax Digital is extremely opportune for UK landlords. Despite the additional, shortterm processes of getting systems set up, landlords will experience greater efficiency when submitting their tax returns,” said Jordaan. “By streamlining day-to-day operations, landlords will find themselves with more time to focus on their tenants and enhance their customer service long-term.” Streamlined with One Solution Yardi’s purposely designed property management solution, Yardi Breeze Premier, provides landlords with a platform centric to all operational data. It’s designed to automate your processes and streamline activities – sounds like a dream, right?

This comes with the seamless transition into the digital tax process, as explained by Jordaan. “Setting up landlords on Yardi Breeze Premier takes a few minutes. Once registered with HMRC for MTD, a simple portfolio upload is all that’s required to get set up. From there, landlords can log their transactions throughout the year in the Breeze accounting function. When it’s time to submit, it’s just a simple click of a button and the tax return is submitted for the year,” said Jordaan. The new MTD legislation comes with the requirement that landlords must keep their account records for 5 years, but don’t worry – “Yardi Breeze Premier’s cloud-based functionality makes this extremely simple,” Jordaan explains. “Files are stored digitally in the cloud with restricted access, so no one on your team can accidentally delete them.” Yardi’s software is here to help you combat any digitalisation change there may be so property managers can be at ease. If you’d like to see how Yardi Breeze Premier can help you, book a free demo with Vanessa Edet (Vanessa. Edet@yardi.com) or visit their website and speak to a consultant through their online chat at www.yardibreeze.co.uk!

The new MTD legislation comes with the requirement that landlords must keep their account records for 5 years, but don’t worry – Yardi Breeze Premier’s cloud-based functionality makes this extremely simple. 65

LEGAL | HANNE & CO

V I C TO R I A C O P E M A N & J AC K G LOV E R HANNE & CO

HOW TO EVICT A TROUBLESOME TENANT: SERVING OF NOTICES IN A POST COVID WORLD 66

LANDLORD INVESTOR 67TH EDITION

LEGAL | HANNE & CO

Not all tenancies go to plan, and there may be occasions where you are forced to manage troublesome tenants. If you find yourself in this position and are looking for advice on how to navigate notice periods in the post covid world, then look no further. We have outlined below the current notice periods in the case of section 8 notices, section 21 notices to quit, along with the rules of deemed service.

here are of course, other points to consider when serving notice, and legal advice should be sought before serving any type of notice. Notice periods Since 1 October 2021, notice periods for section 8 notices, section 21 notices and notices to quit have reverted to those set prior to the Covid-19 pandemic. For Section 21 notices, the minimum notice period is 2 months. For Section 8 notices, this can range from 0 days – 2 months, depending on the ground for possession relied on. In the case of notices to quit for non-excluded occupiers, the usual minimum notice period is 4 weeks. Rules of service In addition to notice periods, care must be taken to ensure compliance with the rules of service. In the first instance, the tenancy or licence agreement should be reviewed. This may include a clause which sets out the prescribed method for serving notices, which may or may not vary the usual rules of service. In lieu of this, the rules of service as set out in the Civil Procedure Rules Part 6 are likely to apply. These set out the various methods of service and when they are deemed served (received by) the receiving party. In the case of notices served by first class post, these are deemed served the second working day after sending.

LANDLORD INVESTOR 67TH EDITION

For example, a notice sent by first class post on a Tuesday will be deemed served on the Thursday. Provided of course, neither the Tuesday, Wednesday or Thursday are Public or bank holidays. As to how this affects notices, care must be taken to ensure the notice period in a section 8 notice, section 21 notice, or general notice to quit takes account of both the minimum notice period, plus the time it takes for a notice to be deemed served. In the case of a section 21 notice, if you wanted to serve notice on a tenant to terminate their tenancy on 25 July 2022, the latest date for service by first class post would be 23 May 2022. That way, you would allow 2 months clear notice, plus 2 working days for the notice to be deemed served. If the notice were served by first class post just 1 day later, it would likely be held invalid, as the notice would be deemed served on 26 May 2022 and provide 2 months less 1 days notice. Final thoughts and how Hanne & Co can help. In summary, if you are a landlord who needs to terminate an assured shorthold tenancy, or common law tenancy or licence, care must be taken to ensure any notice provides the minimum notice required by statute and also accounts for the rules of service.

Since 1 October 2021, notice periods for section 8 notices, section 21 notices and notices to quit have reverted to those set prior to the Covid-19 pandemic. Hanne & Co’s Property team have extensive experience in landlords. Should you require advice on any of the matters raised above, or for any other enquiries please do get in touch on + 44 20 7326 9443 and we will be happy to assist. Alternatively, contact the authors Victoria Copeman & Jack Glover Victoria Copeman, Head of Property Litigation & Dispute Resolution: victoria.copeman@ hanne.co.uk Jack Glover, Solicitor jack.glover@hanne.co.uk Come and join us for our seminar at the Landlord Investment Show on 5th July 2022 Old Billingsgate, or find us on our stand.

P OS S E S S IO N S P OTLIG HT | L AN D LO R D AC TIO N

PA U L S H A M P L I N A FOUNDER L A N D LO R D AC T I O N

POSSESSION SPOTLIGHT

LANDLORD INVESTOR 67TH EDITION

P OS S E S S IO N S P OTLIG HT | L AN D LO R D AC TIO N

Why choose Landlord Action?

set up Landlord Action in 1999 with my former business partner because we were frustrated with solicitors over-charging for landlord and tenant possession cases. We were the originators in introducing a 3-step fixed fee eviction process. More than 20 years on, we’ve gone from strength to strength, not only providing a professional, cost-effective service to landlords, but extending this to letting agents, recommended by landlords who trust in the service we provide. My mission is to improve industry standards and help landlords and letting agents in distressing times. As the lettings market has grown, so too has the eviction industry, and now there are numerous firms offering similar fixed-fee services. As pioneers, I naturally wanted to keep Landlord Action’s competitive edge. So, eight years ago, I took the bold decision to bring solicitors in-house and obtained Solicitors Regulation Authority status. Fusing our legal expertise and industry reputation put us in a powerful position to both educate and effect change. Landlord Action has acted on thousands of instructions in its history, and at any point in time is working on over 1000 live cases. But I believe that our success as an award-winning landlord legal services provider does not sit in volume of business. It lies in the difference we make and the help we provide. For over 20 years now, I

LANDLORD INVESTOR 67TH EDITION

have been proactive in the media, on TV, radio and in print as well delivering educational workshops, hosting webinars and podcasts and public speaking to highlight the pitfalls of buy to let. I feel my job is to expose the wrongdoing in our industry, so that landlords and agents do not make costly mistakes. Supporting landlords in stressful times is what we do. And never has this been more crucial as we emerge from a pandemic into an economic crisis. We recently upscaled the business to deal with market changes, expanding our team and our range of legal services to meet our clients’ demands. We now have 20 employees - solicitors, case workers and administrators. We will continue to manage the rise in possessions, whilst also broadening our focus to encompass the complex legal issues facing landlords today, given the shift of power towards the tenant. Our formula works. We’re resolving cases at a quicker rate than ever before and supporting our clients in new ways, so there is less chance of them having to use our services in the first place. Whether you need help drafting documents, removing trespassers and squatters, or resolving HMO disputes, or would like advice on debt recovery or general litigation, my team of experts will be able to help.

Our formula works. We’re resolving cases at a quicker rate than ever before and supporting our clients in new ways, so there is less chance of them having to use our services in the first place. 69

D E V E L O P M E N T | Y E L L O W B R I C K S E S TAT E S

TO B I A S C H A N G P I C O CEO Y E L LO W B R I C K S E S TAT E S

K ENSAL GREEN REGENERATION AND OPPOR TUNIT Y Kensal Green is proving to be London’s newest regeneration zones, as one of the most Significant Opportunity Areas within the London Plan, the area is set, set to deliver 65,000 jobs and 25,500 new homes. Developments and housing within the Kensal Green regeneration area presents an excellent investment opportunity due to its location and design. London is currently in need of properties/ developments of this ilk. Investors are seeking product which will achieve high rental yields to cater towards a bubbling demand. Although the London rental market suffered in the early stages of the COVID 19 pandemic, the trend has now reversed. London now has the fastest growing rental market in the UK, at over 10% annually and, rental yields are now comfortably above pre-Covid levels. This is coupled alongside a demand for new homes to be delivered, as new home targets continue to lag with the Capital. The London Plan 2021 called for c.52,000 homes a year over 10 years to be built across the city. However, research from One Global Labs shows

that there was a shortfall of around 15,000 homes over the 2020 / 2021 financial year alone. With these factors combined, there is a growing demand for high quality, new-build development in hot areas of London. To cater to this, Yellow Brick Estates are about to launch their Kensal View development which is located on Goodhall Street in the heart of the Kensal Green regeneration zone. Kensal View will provide 38 two-and three-bedroom apartments, with all the homes set to be available to purchase through the Government's Help to Buy scheme. The development is also situated close to the amenities of Kensal Green, with numerous public transport links including the HS2. The development is set to complete in Q4 2022. Kensal View will provide an excellent opportunity for purchasers looking to invest in the new Kensal Green regeneration zone before property prices in the area inevitably rise. Furthermore, the price point at Kensal View means that both first time buyers and young investors will be able to purchase apartments.

Yellow Brick Estates are about to launch their Kensal View development which is located on Goodhall Street in the heart of the Kensal Green regeneration zone. LANDLORD INVESTOR 67TH EDITION

Get a simple solution to bills-inclusive rent through a bundled energy and utilities package.

Glide provides everything needed in a household including Gas, Electricity, Broadband, Water and TV Licence. We’ll consolidate all services into one simple bill across your entire portfolio.

Better for tenants, better for you.

Glide.co.uk 0333 666 5555

OPER R P H T S Y L

THE

Free Admission

OW SH

Returning for a 5th occasion.

C A R D I F F 29 SEPTEMBER 2022 C A R D I F F C IT Y FC S TA D I U M | L E C K W IT H R OA D | C F 1 1 8A Z

MEET

AT TEND

CONNEC T

with 50+ exhibitors from the buy-to-let market

20+ Seminars delivered by leading industry experts

with 100’s of Landlords, Investors and Property Professionals

Find out more and register for FREE show tickets @ landlordinvestmentshow.co.uk SHOW SPONSOR

M E D I A PA R T N E R