LI Magazine 68th Edition by Landlord Investor Magazine

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LANDLORD | PROPERTY | INVESTMENT

68TH EDITION | 2022

LET THE SHOW BEGIN S E E

P A G E

1 2

A warm welcome to the 68 Edition of Landlord Investor Magazine. TH

Well, here we are again! Another edition of LI Magazine so packed with great content that there's barely enough room for a welcome note! A very warm welcome to issue 68 of LI Mag. What a year it has been, and before I go any further would just like to offer my most profound respect for her Majesty the Queen. Having reigned for 7 decades it's hard to imagine the UK without Elizabeth II at the helm. We've suffered close personal losses in the LIS team ourselves this year,

making her Majesty's passing feel all the more poignant. If there was one thing the Queen taught us though, it was the steely determination that the show must go on. It's going to be a busy Q3 & 4 for The National Landlord Investment Show, we have events in Cardiff, Manchester and London, and see a return of the LIS Awards to close the year - See pages 4 to 12. I hope you enjoy this issue of LI Mag, wishing you the very best in these sad times. TH

04 12 14 18 20

Show Update Summer in the city

48 50

System Spotlight The ‘REWD PRO’ System

Market Outlook 28% of landlords plan to serve Section 21 in next 12-18 months Legal Spotlight Woodstock Legal Services

22 26 36 38

Investment BTL or HMO: How risk averse are you?

54 56 58 60

Creative Spotlight Stephens + Stephens

Finance Control the controllables, forget about the rest.

Finance Overcoming impaired credit to get a buy-to-let mortgage

62 64 66 68 70

Show Update LIS Awards return Investment Reap what you sow Investment Property investing in an uncertain economy Investment BTL: the strength of the long-term investment

Taxation Property pontoon: do you stick or twist? Proptech All-in-one lettings Proptech Would property management software benefit every landlord?

LANDLORD INVESTOR MAGAZINE

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

Insurance Weathering the Storm: Building Insurance with Mashroom

Development On the water-front Interiors Styled. Legislation Landlord legalities and how to make sure you comply.

Community Engagement Keeping it in the community Management Services The devil's in the detail Developer Spotlight Rockstar Property Partners Education Five Predictions from Premier Property

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PLEASE NOTE: Statements and opinions expressed in articles, reviews and other materials herein are those of the authors and not the editors and publishers of LI Magazine. The content of this publication does not under any circumstances constitute investment or legal advice. While every care has been taken in the compilation of this publication 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 | PROPERTY | INVESTMENT

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

LUKE BRENNAN SALES EXECUTIVE

Team: Chelsea Song: Murder on the dance floor Film: Stepbrothers Food: Italian Likes: Chinese restaurants Dislikes: Dishonesty Fave thing about LIS: The Team

JACOB HANBURY SALES EXECUTIVE

THE

OLLIE HANBURY ENTERTAINMENT & SECURITY MANAGER 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

LANDLORD | PROPERTY | INVESTMENT

55TH EDITION | 2020

[ D I G I TA L] B R E A C H BUT ARE LIVE EVENTS NOW BACK ON THE HORIZON? SEE PAGE 6

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

LANDLORD INVESTOR

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

63 ND EDITION | 2021

ONCE MORE UNTO

ALICIA CELA HEAD OF ACCOUNTS

LANDLORD SURVIVAL GUIDE IV

LANDLORD INVESTOR

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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

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LANDLORD INVESTOR 68TH EDITION

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

Coronavirus & Taxation Landlords Voice

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T R AC E Y H A N B U R Y E D I TO R & S H O W F O U N D E R

SUMMER IN THE CIT Y [ A N D 3 M O R E S H O W S T O G O]

LANDLORD INVESTOR 68TH EDITION

S H O W U P D AT E

With 2 hugely successful prior events at Old Billingsgate, the pressure was on to make our July show a summer spectacular. With 100+ exhibitors, over 2000 guests and a party on the terrace, it was a slam-dunk.

iven the challenges of 2020 it was hard to foresee the live events space ever returning to the pre-covid ‘normal’. The LIS stable obviously has a fleet of media platforms, but the jewel in our crown has always been events, and always will be. Investing in and managing property is about people, pure and simple. You can find legions of amazing services and products to ease your journey at our shows, but all of them are created and owned by people who understand the inherent value in forming personal connections. Don’t get me wrong, we love tech at LIS towers, truly, but the further you ascend the product value ladder the need to physically meet the proprietor increases exponentially. People buy from people, plain and simple. The extraordinary popularity of the 2021 & 2022 shows are testament to this. I won’t lie, our return to live events was no small concern, especially with a brand new venue for our flagship London events. But with 3 stunning shows at Old Billingsgate now in the bag, not to mention our superb shows at Birmingham, Cardiff and Manchester I think it safe to say we’re well and truly back on course. As the leader paragraph suggests, we’re always trying to find new ways to keep things fresh and improve the experience for guests, exhibitors and speakers. Our July show in London was no exception. Andrew Neil, now a regular fixture at our shows returned to chair the morning panel debate Pain free property journey. As always this was a lively session which focused on the legacy issues of successive government failures to fill the housing gap, and how this has created an over-reliance on the private rented sector. Property Elevator returned for another hugely entertaining hour of appraising pitches from aspiring property moguls,

LANDLORD INVESTOR 68TH EDITION

watch this space for the next generation of industry entrepreneurs. The 2 additional panel sessions: HMO: Making it work and avoiding the pitfalls and Will landlords be reformed out of the sector were also hugely informative with some excellent points raised and examined. All 4 sessions are still available to view in full via the LIS website www. landlordinvestmentshow.co.uk/paneldebates. The day wrapped-up with our summer party on the terrace. Watching the sun-set over the Thames with a live saxophonist and a gin and tonic in hand I couldn't help but feel a swell of pride for our team and all the sponsors, speakers, exhibitors and guests who made it possible. Our photographer Aneesa Dawoojee caught the essence of the day in a great set of images, which you can see in the pages overleaf. Cardiff. Manchester. London. Our designer tells me this issue will be published around September 16, meaning we still have 3 shows to go this year. First on the agenda is Cardiff on September 29th. Marking our 6th return to Cardiff City Stadium, we've billed this as the Welsh Property Show to leverage the myriad opportunities in Wales and the surrounding area. Cardiff is obviously a buzzing capital city with a thriving property market and significant student population. We have 30+ exhibitors and 20+ speakers, with reams of local knowledge and exhibitors galore. This is our first show in Cardiff for a couple of years for obvious reasons, so if you have an interest in local property services or expanding your portfolio

West then I strongly advise you swing by to take a look. Registrations are flying in, which is likely a marker of the local property appetite. To find out more and register for your free show tickets visit www.landlordinvestmentshow.co.uk/ 29-september-cardiff. Moving North, we head to Manchester, Old Trafford on October 11. Marking our 8th return to the home of Manchester United FC, this feels like a second home to us now. Our 2021 Manchester show marked our first show post-lock down and was absolutely buzzing. Whether investing in family homes, student accommodation or cool spots for an Air B&B, Manchester remains a huge draw as a buy-to-let location. With 70+ exhibitors and 30+ speakers, this year's show is going to be just as busy. Join us to find all kinds of helpful services and source exciting investment opportunities in Manchester and the North West. Find out more and reserve your free show tickets at www.landlordinvestmentshow. co.uk/11-october-manchester. Closing the loop we return to London, Old Billingsgate on November 2nd. Our regular host Andrew Neil will be returning to chair the morning panel session – we'll announce the subjects of all 4 debates sessions shortly. The final show of the year is always a huge event, with 100+ exhibitors and 50+ speakers. Places are already being gobbled-up so we advise booking ASAP at www. landlordinvestmentshow.co.uk/2november-london. All of our shows offer a unique level of local insight, and the opportunity to meet like-minded property professionals. Whichever shows you attend, I wish you all the very best on your property investment journey. Tracey Hanbury Editor and Show Founder

S H O W U P D AT E

LANDLORD INVESTOR 68TH EDITION

S H O W U P D AT E

July London Show, Old Billingsgate.

Andrew Neil retuned to chair the morning panel debate and the Grand Hall was packed with exhibitors and eager guests – as were the 3 panel debates and Property Elevator LIVE!

All images by Aneesa Dawoojee

LANDLORD INVESTOR 68TH EDITION

S H O W U P D AT E

LANDLORD INVESTOR 68TH EDITION

July London Show, Old Billingsgate.

Standing room only during many of the panel debates / seminars, and a busy day for our exhibitors. The summer party on the terrace was the cherry on the cake.

All images by Aneesa Dawoojee

LANDLORD INVESTOR 68TH EDITION

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LIS AWARDS RETURN 1 7

N O V E M B E R

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LANDLORD INVESTOR 68TH EDITION

S H O W U P D AT E

Celebrating the shining stars of the landlord & property investment sector we are absolutely thrilled to announced the return of the National LIS Awards with a touch of the avant garde.

s the leader paragraph says, after a 3 year hiatus we are absolutely delighted to announce the National LIS Awards will return on Thursday 17th November 2022 at the stunning Grosvenor House Hotel in London. Conceived to celebrate the shining stars of the landlord & property investment sector, this year's awards aims to push the boundaries of the traditional ceremony format. Comedian & TV Personality Patrick Kielty is confirmed as host and our theme for this year’s entertainment will be circus and cabaret with a spectacular array of singers, magicians and performers to help us celebrate, along with a silent auction to raise money for our designated charities. With the stage set for a truly spectacular evening, and we’d love for you to be a part of it. To accommodate the rapidly expanding disciplines which comprise our sector we've now increased the categories with 21 to choose from. Encompassing everything from finance, legal & tax, through to letting agents, online agents, auction houses, local authorities, landlord insurance, proptech, innovation and landlord associations we're sure that anyone wishing to enter will find a home. At the time of writing nominations for awards are still open, the submission window closes on 23rd September at 5pm. The awards are completely free to enter and you can submit up to three categories per company, providing they are in by the closing date. The winners will be decided based upon a combination of votes achieved from your own marketing campaigns and points awarded by judges. You can see our past winners here. If you have any questions please drop us a line, and again you can submit your nominations here before 5pm on 23rd September 2022. Please remember if you are shortlisted you must commit to attending the awards ceremony.

LANDLORD INVESTOR 68TH EDITION

Award categories include... •

Best Accounting and Tax Services for Landlords

•

Best Landlord Insurance Provider

•

Best Online Product for Landlords

•

Best Landlord Legal Services Provider

•

Property Developer of the Year

•

Best Lettings Agency

•

Best Online Agency

•

Specialist Finance Provider of the Year

•

Best Property Education Provider

•

Proptech Company of the Year

•

Best product for Landlords

•

Best Short Term Letting Agent

•

Best Alternative Property Investment Provider

•

Best Property Investment Provider

•

Best Buy-to-Let Mortgage Broker

•

Best Seminars @ LIS Shows 2022 (as voted for by show attendees)

•

Outstanding contribution to the Private Rented Sector

•

Landlord of the Year

•

Best International Real Estate Provider

•

Best HMO Services Provider

•

Best Property Management Provider

To submit you entry and find our more about booking seats, tables and sponsorship please visit our dedicated LIS Awards website - www.national-lisawards.co.uk. Join us to connect with the very best in the industry and enjoy a stunning evening of awards and cabaret entertainment. See you on on November 17th. TH

Comedian & TV Personality Patrick Kielty is confirmed as host and our theme for this year’s entertainment is will be circus and cabaret with a spectacular array of singers, magicians and performers to help us celebrate. 13

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

REAP WHAT YOU SOW

LANDLORD INVESTOR 68TH EDITION

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

Property price growth follows infrastructure projects.

t’s great to see that the Birmingham Commonwealth games was a fantastic success. I personally have been talking about Birmingham as a place to invest in for many, many years now and the Commonwealth Games was one of a few infrastructure projects that’s been underway there for some years and has now come to fruition. It’s good to see that. It’s also great to see that as an Australian, Australia cleaned up in the medal tally for the fifteenth time with England only ever winning it seven times. But what does that have to do with property? So, there’s quite a lot of data around the impact that major events have on a city, and in fact, the average property price growth in a city following the Commonwealth Games is just shy of 15%. So, we’ve already seen quite strong growth in Birmingham partly due to the Commonwealth Games but also other major infrastructure projects. We can expect that to continue as that infrastructure comes to fruition

LANDLORD INVESTOR 68TH EDITION

and it starts to be utilised by the people in that city. You certainly saw a huge impact on London and more specifically East London from the London Olympics and the major regeneration on some fairly rundown areas which benefited hugely from the infrastructure that was put in place there. As someone who has been talking about Birmingham and specifically central Birmingham as a great area to be investing in property, it’s been great to see those property prices start to grow over the past few years but also to have the confidence that it is very likely to continue moving forward consistently over the next decade, as these infrastructure projects come to fruition and start to offer utility. For more information about the best property investment opportunities in Birmingham or other major infrastructure areas, please contact Nova Financial Group on 0203 8000 600 for info@Nova.Financial

You certainly saw a huge impact on London and more specifically East London from the London Olympics and the major regeneration on some fairly rundown areas. 15

Advice & Guidance

INVESTMENT | HJ COLLECTION

REECE MENNIE CEO, HJ COLLEC TION

PROPERT Y INVESTING IN AN UNCERTAIN ECONOMY 18

LANDLORD INVESTOR 68TH EDITION

INVESTMENT | HJ COLLECTION

Property in the UK has always been a popular choice for investors. From the tangibility of bricks and mortar to the growing population, the property market has stood the test of time and even flourished during the pandemic.

owever, with inflation rising and the economy feeling increasingly uncertain, are property investments still the right choice? The easy answer is yes. Rents have risen at their fastest pace for 16 years, according to Rightmove. The average cost of renting a home reached a record £1,126 outside London and £2,257 a month inside the capital. With increasing rental demand and insufficient quality accommodation, investors can feel assured that there will always be a market for rental properties in the UK. Even with the changes to mortgages and stamp duty on second homes, rental yields are growing in certain areas, and the demand is balancing with the rising property prices, therefore contributing to an increase in capital growth from your property's value. But what happens if your property value decreases? At HJ Collection, we get asked this question a lot. We understand that it is a risk for

LANDLORD INVESTOR 68TH EDITION

property prices to reduce. However, the demand is only growing, and our thorough process to vet locations, developments, and yields allows us to minimise the risk of devaluation. Building in locations that have some of the best capital growth in the UK and the highest levels of employment play a large part in a development's success and the onward success of in years to come. The economy may feel uncertain, but property investing has never felt stronger. For investors, it answers the age-old question of why you shouldn't leave your money in the banks. Property provides solid returns, income, and capital growth. However, picking a suitable property investment for your needs and budget has never been more critical. HJ Collection has a curated portfolio of opportunities to give investors the highest rental yields in locations mapped for growth. Get in touch with us today to find the right opportunity for you and your future. Reece Mennie CEO, HJ Collection

The economy may feel uncertain, but property investing has never felt stronger. For investors, it answers the ageold question of why you shouldn't leave your money in the banks. 19

I NVE STM E NT | M O RTGAG E S FO R B U S I N E S S

J EN I B ROWN E M O R TG AG E S F O R B U S I N E S S

BTL: THE STRENGTH OF THE L ONG -T E RM INVESTMENT 20

LANDLORD INVESTOR 68TH EDITION

I NVE STM E NT | M O RTGAG E S FO R B U S I N E S S

After five Base Rate increases since January, I think landlords have seen their fair share of interest rate rises for a long time. With the added pressure of record-high inflation levels and the cost-of-living crisis, many are questioning the future of buy to let.

t the time of writing, the average limited company buy to let rate is c4.90%. Compared to January, when the equivalent was c2.99%, it’s undeniably a significant jump.

Renter’s Reform Bill, I think it’s fair to say we don’t know enough yet to pass judgement. However, I understand the abolishment of Section 21 ‘no fault’ evictions has many investors on edge. My advice? Hold steady.

However, taking a step back, I would argue that we have been spoilt over the last three years or so. Having been a broker and landlord for over 20 years, I remember thinking anything below 5% was a steal not that long ago. Blimey, remember the horrors of 15% interest rates during the 90s, anyone?!

The Bill also proposes a ‘Rental Property Portal’; essentially a landlord register. Personally, I think this could be a positive change in the industry, helping to rid our sector of the minority of rogue landlords and give respectable, hardworking landlords the credit they deserve. But I recognise that we need more reassurance it will include a safety net for landlords and not just be a platform for resentful tenants.

I think rates are returning to a “normal” level and will start to plateau soon. I fully understand that the extra financial strain is not ideal in the current economic climate. However, let’s not forget that rents increased 3.2% in the year to July 2022; the largest annual growth since ONS records began in 2016. Of course, interest rates are just one concern for landlords. Legislation changes are an ongoing cause of contention; stricter regulations in the past caused many to leave the industry altogether. While the Government revealed a few more details of the

LANDLORD INVESTOR 68TH EDITION

Despite these challenges, I’d argue that the market remains strong. Knight Frank recently adjusted their fiveyear forecasts upwards, predicting an average 17% growth for both UK rents and property prices. Ultimately, property is a long-term investment, with which you benefit from both a capital gain and regular income. Despite the turbulence of the last few years, property continues to prove its durability, with no indication of crashing on the horizon that I can see.

Interest rates are just one concern for landlords. Legislation changes are an ongoing cause of contention; stricter regulations in the past caused many to leave the industry altogether. 21

I N V E S T M E N T | P L AT I N U M P R O P E R T Y

E M M A H AY E S M D , P L AT I N U M P R O P E R T Y PA R T N E R S

B T L OR HMO: HO W RI SK AV E R SE A RE Y OU?

LANDLORD INVESTOR 68TH EDITION

I N V E S T M E N T | P L AT I N U M P R O P E R T Y

It’s a general perception that HMOs are a riskier investment than standard buy-to-lets (BTLs), but our experience has shown that, with the right support, the opposite is true.

fter 15 years in HMO property investment, here at Platinum Property Partners we like to think we know something about risk….and how to mitigate it. When we first opened our doors to our franchisees back in 2007, HMOs were widely viewed as the risky big brother to single tenancy buy-to-lets. And in a decade and a half that misconception is still there. So, is it true? Whilst it’s undeniable that HMOs are more complicated, require more knowledge and are more complex to set-up than standard BTLs, our experience has shown that they actually attract significantly less financial risk for these reasons: HMOs offer multiple income streams BTLs offer only one income stream per property. This means that if your tenant falls into arrears or the property is left empty, then that income stream is cut off, whilst your costs continue. Compare this to the six income streams per property offered by a typical HMO and you can see how robust the HMO model is. Our HMO landlords will typically still be in profit with up to two rooms empty and will break even with a further void on their third room. This robustness held up very well through the challenges of the recent pandemic, as we believe it will through the current cost-of-living crisis.

LANDLORD INVESTOR 68TH EDITION

HMOs benefit from higher margins BTL margins are getting ever tighter due to increased delivery costs and rising mortgage interest rates, so a big maintenance bill on your BTL property – a new boiler, fixing a damp problem - could be all it takes to wipe out a years’ profits. HMOs achieve better returns On average, our Franchise Partners earn £20,000 in gross profit per property, per year – a return four times higher than on a standard BTL. This gives HMO investors greater business protection, offering more opportunity for continued investment into existing properties and long-term business growth. HMOs require smaller portfolios Because the returns on HMOs are so good, HMO property investors need much smaller portfolios than BTL investors. This means less maintenance, fewer costs, and overall lower risk. We are the HMO experts. If you’d like to find out more about how our low-risk, robust business model and team of in-house specialists can help you build your successful HMO portfolio, then get in touch: info@platinumpropertypartners.net 01202 652 100 Platinumpropertypartners.co.uk

Whilst it’s undeniable that HMOs are more complicated, require more knowledge and are more complex to setup than standard BTLs, our experience has shown that they actually attract significantly less financial risk. 23

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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

PROPERT Y PONTOON: DO YOU STICK OR TWIST?

LANDLORD INVESTOR 68TH EDITION

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

By far my favourite card game growing up was Pontoon. On every hand there would come a point where you needed to stick or twist.

nd right now I think many landlords are looking at their hand and asking themselves the simple question – do I want to be a landlord? More and more, we’re seeing the answer to that is no. The landlord sector has dropped from 2.88 million landlords in 2017 to 2.66 million in 2019 and it seems likely that trend is continuing. And yet, rapid rental growth will see Great Britain’s tenants pay £63bn in rent this year according to Letting agency Hamptons. This represents a huge record high being “driven by a lack of homes on the market alongside investors passing on higher running costs to tenants.” i So on the one hand we have landlords leaving the market, and on the other we have rocketing rents, particularly in the capital where the average monthly rent in London has risen above £2,000 for the first time. This is simply a result of our old friends supply and demand, with less than half of sold buy-to-let properties returning to the PRS according to a recent Propertymark report. ii On the face of it, the many predictions of major market upheaval and increased tenant costs in the wake of the great finance tax-relief axe do seem to be coming true. However, it is too early, and far too complex to pin-point the market changes on one factor alone.

LANDLORD INVESTOR 68TH EDITION

Here then are just a few of the areas likely to be weighing on the astute Landlord’s mind: • • • • • •

Fear of property bubble Taxation Abolishment of Section 21 Rising Interest Rates EPC Policy The rise of Build to Rent

That last point deserves a quick mention, as I fear it could be the stealth factor that landlords don’t consider until too late. Whilst still a tiny percentage of the PRS, a record £1.6bn was invested into UK Build to Rent in Q1 2022. iii And contrary to where you might traditionally relate the BTR sector in recent years, family homes have become a key driver of growth in the sector. The proportion of people aged 35 to 44 choosing to live in BTR developments has also increased significantly, up to about 25 percent. iv With so much to stay on top of, how will the average portfolio landlord manage and compete moving forward? Certainly Landlords with smaller portfolios may find it hard to absorb the bureaucracy and concentration risk of this changing market. In comparison a larger portfolio brings with it the advantage of the laws of probability, and an ability to more readily absorb shock across the entire business.

On the face of it, the many predictions of major market upheaval and increased tenant costs in the wake of the great finance taxrelief axe do seem to be coming true. 27

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

Just as Government are seeing the opportunity to professionalise and regulate the industry through greater transparency and tighter regulation, corporations and portfolio landlords are looking to fill the void they know is and will be left by accidental landlords leaving the market. You may not have the same economy of scale as British Land or Grainger PLC, but that doesn’t mean you cannot enjoy the commercial benefits of building, running, and growing a professional property business. We set up Less Tax 4 Landlords and the One Consultancy Group to help landlords do just that, supporting your business model with a business structure and services that can help magnify your success. After all if you’re going to ‘stick’, you want the odds in your favour. Far too many private landlords are paying an effective rate of 50% tax or higher on their ‘real’ profits. As interest rates rise, those profits are decreasing but the tax is not. At some point, taxation will quite literally make a profitable business, un-profitable. Talk about having the deck stacked against you! Don’t let this happen to you. If you’re paying much more than 20% tax on your Property Profits then you are almost certainly paying more tax than necessary.

The question then just becomes whether a business restructure makes commercial sense for you. Now if pontoon was my favourite childhood card game, it was poker that got me through university – and in the end I think the best card game of all time is a more fitting analogy here. The government have raised BIG, and round the table we go, fold, fold, fold… and now the actions on you – you’re not sure what to do, but you can sense British Land behind you, and they’re ready to go all in. You’re sitting there with the faintest bead of sweat upon your brow, knowing there are plenty of good reasons to fold. And seeing how many before you have done just that, it is tempting… But so is that pile of chips on the table. The clock is running down, soon you have to decide. Do you want to be a landlord? ..... Well? If you do, don’t let tax be your undoing. Take our free initial assessment at lt4l.co.uk/im-in

https://www.hamptons.co.uk/research/articles/annual-rent-bill-projected-to-hit-pounds63bn#/

https://www.propertymark.co.uk/resource/a-shrinking-private-renter-sector.html

Far too many private landlords are paying an effective rate of 50% tax or higher on their ‘real’ profits. As interest rates rise, those profits are decreasing but the tax is not. At some point, taxation will quite literally make a profitable business, un-profitable. Talk about having the deck stacked against you!

iii https://www.telegraph.co.uk/property/buy-to-let/new-threat-landlords-profits/ iv https://www.ft.com/content/e46f3638-768a-3c95-b6cc-af692383a01a

LANDLORD INVESTOR 68TH EDITION

PROPTECH | GLIDE

A L L- I N - O N E LET TINGS

LANDLORD INVESTOR 68TH EDITION

PROPTECH | GLIDE

Helping agents and landlords streamline their processes.

he UK housing crisis currently feels as though it could go on forever. Consumer demand for property only continues to grow and homes are not being built fast enough to keep up. As a result, society has watched helplessly as property prices have soared. In fact, according to UK Government data, the average UK house price increased by a staggering 9.8% between March 2021 and March 2022. Affordability and limited availability of homes have forced many to turn to renting. At the end of 2021, Zoopla reported that UK rental growth had hit a 13 year high, and predicted that this growth will continue - with an estimated rise of 4.5% by the end of 2022. However, this doesn’t necessarily mean that landlords are automatically benefiting. The rental market is ferocious. In many areas across the nation, tenants have a wide range of properties to choose from. In the midst of the cost of living crisis, would-be renters are cautious and shrewd. Landlords must diversify their offerings, catering to tenant demands to make their property as desirable as possible. One effective way to accomplish this is through bills inclusive. In this situation, tenants only send one payment to the landlord each month, incorporating a range of predetermined bills such as utilities, broadband and council tax. Benefits for Tenants From a tenant’s perspective, the hassle of organising bills is removed completely. Bills can be confusing - especially for students or first-time tenants. There are a number of payments to consider: council tax, gas, electricity, water and Wi-Fi. That is before you factor in external subscriptions such as Netflix or gym memberships.

LANDLORD INVESTOR 68TH EDITION

It can be difficult to track, and the issue is made only more complicated for those in houses of multiple occupation (HMOs), common for students and young professionals. Figuring out who owes what can create arguments, frustration among housemates and stress - especially if one tenant is late on payment. More often than not, the responsibility falls on one person within the household. Bills inclusive removes that completely. Instead, tenants have one bill that comes out each month and everything is taken care of. It puts their mind at ease and makes it easier to plan wider monthly spending. Benefits for Landlords From a landlord’s perspective, this might sound as though all the complexity or arranging bills will now fall on them. However, by partnering with the right utilities provider - who will take care of all of this potentially stressful and time consuming admin all a landlord has to worry about is that the house is in good order. And even then, this responsibility is often passed onto an estate agent. Bills inclusive doesn’t just make life easier, though. It is actually preferable for students. According to a report published by Knight Frank and UCAS, 90% of students claimed to have chosen their rental property based on the fact that it came with bills included. In fact, it is such a desirable feature that bills inclusive properties become premium listings, where students will actually pay more for the convenience of not having to worry about their bills. Landlords can charge higher rates for tenants, optimising their income while providing an improved user experience.

Setting Yourself Apart The rental market is highly competitive. There are a huge number of properties available and consumers are more cautious than ever when it comes to committing to rental agreements. Landlords need to take tenant demands into consideration if they want to make their property as attractive as possible. As they continue to search for ways to achieve this and differentiate themselves from others, bills inclusive provides a reliable solution that is desirable for tenants, and creates better opportunities for landlords. The complexity and stress of organising bills is completely removed for those occupying the property, and landlords can rest assured knowing that they are getting the optimal monthly return on their agreement.

Landlords must diversify their offerings, catering to tenant demands to make their property as desirable as possible. 37

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

WOULD PROPERT Y MANAGEMENT S OF T WARE BENEFIT EVERY L ANDLORD? 38

LANDLORD INVESTOR 68TH EDITION

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

Chances are you still use hardcopies, track data through Excel spreadsheets and utilise third-party systems for accounting. You might even have tenants report maintenance issues over the phone or through emails which can become hard to keep track of efficiently.

ow many systems are you using to manage your properties? As your portfolio grows, you can become overwhelmed with multiple solutions to manage accounting, maintenance, communication and leases. Having to search through multiple tools and Excel spreadsheets to try and collate information can result in time-consuming manual work with inconsistent data. An end-to-end solution can provide you with all the tools you need within one platform, including accounting, reporting, lead nurturing and maintenance. Enhance Communication Keeping your teams on the same page can be difficult when using disparate systems. Property management software brings your teams together with a single solution to cover dayto-day operations, including note fields for tenant information, activity feeds to help track communication and maintenance, shared calendars, accounting, reporting and payment processing.

at any time. For example, access your tenant lease information and email them directly through the same platform. You can also take photos of your vacant units and upload them instantly. Solutions such as Yardi Breeze Premier put the power in your hands so you can work how you want to. All-in-One Property Management Software Staying competitive in your market requires you to invest in digital solutions that work together and make your life easier. With Yardi Breeze Premier, you can access real-time data and work collaboratively from the same platform, thanks to the cloud-based software.

Work on the go

Yardi Breeze Premier is a powerful property management and accounting solution. Our refreshingly simple platform puts you in charge of marketing and managing your entire portfolio with support for residential, commercial and mixed properties. You can track leases, rent reviews, lease expirations, manage reactive maintenance, update property marketing for available units through Rightmove and Zoopla or your marketing website. In addition, you can boost security by controlling data access for all users at the menu level, including blocking unauthorised rent changes.

Cloud-based property management software gives you the ability to work from any device, including all smartphones and tablets. This allows you to successfully work from anywhere

Furthermore, with Yardi’s trusted built-in accounting system to track your revenue and expenses, you can gain accurate reporting with a click of a button.

Software such as Yardi Breeze Premier helps simplify day-to-day tasks, saving you time and money.

LANDLORD INVESTOR 68TH EDITION

Staying competitive in your market requires you to invest in digital solutions that work together and make your life easier. With Yardi Breeze Premier, you can access real-time data and work collaboratively from the same platform, thanks to the cloudbased software. 39

S T R AT E G I C S P O T L I G H T | T I T L E S P L I T. C O M

S T R AT E G I C S P O T L I G H T

TITLESPLIT.COM

Rachel Knight Property Investor & Title Split Coach Harriet Dunn Property Lawyer, Consultant & Trainer

LANDLORD INVESTOR 68TH EDITION

S T R AT E G I C S P O T L I G H T | T I T L E S P L I T. C O M

Title Splitting (or splitting leasehold from freehold) is the most lucrative strategy being implemented by savvy property developers and landlords in the 2022’s.

ere are just a few reasons why portfolio developers are diversifying away from HMO’s and single lets. They are securing their long-term equity and cashflow by Title Splitting apartments, commercial properties, and land. Why is this Title Splitting so profitable? 1. High cash-flow just like an HMO from multiple tenants in the same building. 2. Individually saleable units (at any time you like once split). 3. Tenants pay their own bills saving you money. 4. Higher valuations for your individual units, than for your commercially valued HMOs and blocks. We call this the ‘Split Value’. This means you will get more of your money out of the deal every time (MIMO). 5. MIMO from Title Splits (this is so simple you will not believe it when we share how with you). 6. You can buy one unit and create many units in one go. This grows your cashflow and equity position faster. 7. Title Splitting gives you access to the highest capital growth for your properties year after year. 8. This strategy is perfect for holiday lets.

LANDLORD INVESTOR 68TH EDITION

Why this strategy has been under-utilised for decades? You may have thought about using this strategy before, but when you find a great property to work with, you suddenly find that the ‘experts’ are not available to help you. Finding experts for this strategy is nearly impossible. You may even be told that it cannot be done, it is too expensive, why don’t you leave it until you sell it. Noooo this is not right. It can be done and titlesplit.com help our clients to Title Split and make huge profits by doing so. We even introduce our clients to tried and tested power team members. Who is titlesplit.com? Harriet Dunn has over 30-years’ experience as a commercial property solicitor and over 10 years’ experience training property investors how to make money from commercial property. Rachel Knight is a property developer who has been proving that Title Splits make huge profit for portfolio landlords since 2017. Together they formed titlesplit.com so that other developers can learn this very valuable strategy from people experienced in exactly how to do this. Join us at The National Landlords investment show at stand 21 to find out how you can get started.

Harriet Dunn has over 30-years’ experience as a commercial property solicitor and over 10 years’ experience training property investors how to make money from commercial property. Rachel Knight is a property developer who has been proving that Title Splits make huge profit for portfolio landlords since 2017. 41

THE PROPERTY FINANCE COMPARISON SITE. search propp.io

BRIDGING COMMERCIAL DEVELOPMENT BUY-TO-LET.

FINANCE | PROPP

PA U L E L L I OT T PROPP

CONTROL THE CONTROLLABLES, FORGET ABOUT T HE R E S T.

LANDLORD INVESTOR 68TH EDITION

FINANCE | PROPP

Spiralling rent arrears, rates and energy costs could prove to be a dangerous cocktail for some landlords who were already on the brink after waves of punishing rental reforms.

owever, one thing I’m sure of after two decades working with the sector – landlords are astoundingly resilient and fantastic at adapting to change. A piece of advice I once received is particularly relevant now. ‘You can only control the controllables, so forget about the rest’. So, as the winter of discontent 2.0 rumbles towards us, heed this advice and reflect on what you can control. Will it help to make EPC Improvements? Well, yes. (But, not immediately) The UK’s housing stock is responsible for emitting 20% of the country’s emissions so improving energy efficiency is vitally important. The only problem is the changes needed are expensive and neither industry nor government are doing enough to subsidise these improvements. A wave of lenders in the specialist space are jumping on the EPC bandwagon, but in our experience most of these products offer very little real value. The various rate discounts and kitschy extras do little to compensate the cost of the work, especially with the current cost of materials. With that being said, EPC changes will add value to your property and bolster its saleability. What should I do about rent arrears? As much as we are feeling the pinch, it’s important we remember that our tenants are likely to be on the sharper end of the crisis with less savings and less stability.

LANDLORD INVESTOR 68TH EDITION

Check in with your tenants. If they are struggling, could you afford to offer a short-term rent reduction with a repayment plan? If you’re in the early days of a 5-year fixed, you’re able to forecast with much more certainty, so collaborate with your tenants to reduce the likelihood of them racking up irretrievable arrears. Things really are bad, should I just sell? Selling up and releasing equity is an option that may cross your mind as the rumour mill circulates whispers of a crash. But, demand is still outstripping supply, lockdowns left our savings accounts healthier than ever and the nations credit profile is worlds apart from the subprime crisis that brought on the credit crunch. There will probably be a correction, yes, but a 2008 level crash is very unlikely – so don’t be swayed by scaremongering. Property will continue to be a secure asset that appreciates in value for generations to come, and the demand for private rental stock is not going anywhere. Propp.io is the UK's first specialist property finance comparison site. You can freely compare rates for bridging, commercial, development and buyto-let finance and then work with an expert to achieve your funding goals when you're ready to go ahead. Paul Elliott, Managing Director @ Propp

Demand is still outstripping supply, lockdowns left our savings accounts healthier than ever and the nations credit profile is worlds apart from the subprime crisis that brought on the credit crunch. 45

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

OVERCOMING IMPAIRED CREDIT T O G E T A B U Y -T O LET MORTGAGE

LANDLORD INVESTOR 68TH EDITION

FINANCE | VINCENT BURCH

Many potential landlords believe that an impaired credit rating will put an end to their chances of securing a buy to let mortgage.

hile this may be true for mainstream lenders using a credit score led underwriting process, the availability of buy to let mortgages for landlords with an impaired credit rating could be the answer.

And, there are other ways to ensure your credit score is as robust as possible, such as: • •

Understanding the big picture There’s a growing recognition that an adverse credit rating doesn’t always give a complete picture of an individual’s or limited company’s financial behaviour and credit worthiness. As a result, some lenders have changed the way they assess risk and now offer impaired credit mortgages that are usually only available through independent mortgage advisers and not from high street lenders. There are many reasons, both business and personal, that may contribute to an adverse credit rating. From county court judgements (CCJs), bankruptcy or missed payments on bills, credit cards and loans, to incorrect personal details and financial links with someone you’re no longer associated with. Review and improve your credit score So, perhaps your starting point should be to check and review your current credit rating. Credit reference agencies such as Experian, Equifax and TransUnion will calculate your score for free. This is a good opportunity to correct any errors that appear on your records.

LANDLORD INVESTOR 68TH EDITION

•

Registering to vote - used to confirm personal details Limiting new credit card applications – rejections impact your credit rating Allowing credit history to mature – create a financial pattern with the same card Setting up direct debits - avoid missing a bill payment by mistake

If you are still left with an impaired rating, don’t despair. You’ll still be able to apply for a buy to let mortgage. Looking beyond the credit score before deciding on an applicant’s financial wellbeing is where impaired credit mortgages differ. Find a buy to let impaired credit mortgage The best way to find the right impaired credit mortgage is to speak to an independent mortgage broker. It’s important that you are open and honest about your financial history and any financial concerns you have at outset and take advantage of the knowledge and advice they can offer. A broker won’t judge, they will only try to help you. They’ll take a flexible, tailored approach and have access to those lenders who offer specialist mortgages, whether it’s for a limited company, HMO or individual buy to let property. Contact Vincent Burch Mortgage Services on 01603 851534 or email advice@vincentburch.co.uk

There are many reasons, both business and personal, that may contribute to an adverse credit rating. From county court judgements (CCJs), bankruptcy or missed payments on bills, credit cards and loans, to incorrect personal details and financial links with someone you’re no longer associated with. 47

S YSTE M S P OTLIG HT | R E WD G RO U P

SYSTEM SPOTLIGHT

THE ‘REWD PRO’ SYSTEM

LANDLORD INVESTOR 68TH EDITION

S YSTE M S P OTLIG HT | R E WD G RO U P

REWD Training MD, Conar Tracey, discusses the journey from start-up to a 300+ property portfolio using the REWD PRO System.

hen we started our journey in property investment, we made a lot of mistakes in the beginning. Over time we realised the most effective ways to do things was to focus our time and energy on the only things we should be concerned with as professional property investors… finding deals and finding money.

Our strategy is focused on the Buy Rent Refurbish Refinance (BRRR) model and we do this on a massive scale.

We started Real Estate Wealth Development back in 2018 with a focus on residential buy-to let investment in Scotland. Since our inception, we’ve grown a portfolio of over 300 properties producing £150,000 per month in gross rental income by creating a formula that we call the ‘REWD PRO system’.

Understanding the kind of deals that you need to be buying to achieve rapid growth and replicate the REWD PRO system is essential. You need to know where to find them, how to analyse them and ultimately how to get your hands on them.

We’ve tried and tested several strategiessome failed and some succeeded beyond our expectations. Literally everything has been put to the test- including our own assumptions and mindset! And we’ve now compiled everything we know into a replicable system that lies at the core of everything we do at REWD Group. The REWD PRO system has been broken down into 4 core concepts: - Foundations - Systems - Deals - Finance At REWD Group, we talk about property investment with reference to 2 key phases: Phase 1: Transformation This is the phase in property investment that everyone must go through when getting started. This stage is your apprenticeship. We’ve done it and we’ve grown through it.

LANDLORD INVESTOR 68TH EDITION

We apply multiple create finance solutions to provide no limitations to the rate in which we could grow through this phase as quickly as possible.

Phase 2: Serious Growth A stage that most property investors don’t even know exists. This is where we identified the solution that allowed us to scale from 42 to 124 properties in a single deal - using none of our own money! Why would you save all of your hardearned cash to gather a deposit for a single Buy-To-Let property that might pay you an extra few hundred pounds before tax? Once you understand how to finance a multiunit portfolio producing thousands of pounds per month, there is no looking back. There are many, many ways to make money in property. BTL is simply the foundation that will allow you to expand into other areas of business whether property related or not. If you combine your BTL portfolio with other businesses that complement each other- you’re on the path to bigger and better challenges with massive rewards.

Why would you save all of your hard-earned cash to gather a deposit for a single Buy-ToLet property that might pay you an extra few hundred pounds before tax? Once you understand how to finance a multi-unit portfolio producing thousands of pounds per month, there is no looking back. 49

INSURANCE | MASHROOM

A DA M M A L E CRO, MASH ROOM

WE ATHERING THE STORM: BUILDING INSURANCE WITH MASHROOM 50

LANDLORD INVESTOR 68TH EDITION

INSURANCE | MASHROOM

Will climate change impact your property?

fter a record-breaking summer, have you considered the effect that climate change could have on your property?

In July, temperatures rocketed up to a shocking 40 degrees, reaching as high as 40.3 degrees in Lincolnshire. This is significant because we have never gone over 40 degrees in the UK before, previous heat waves over the last 20 years have peaked at around 38.7°C (in Cambridge in 2019). Climate change also means that the likelihood of super-hot summers will increase to 50% by the middle of the century. But it’s not just the heat you need to be prepared for, as climate change will impact all kinds of weather and the simple fact is that the UK has, historically, a fairly temperate climate, so our buildings are not fit for purpose when it comes to extreme weather conditions. A 2021 UK Insurance Consumer Survey found that weather incidents like floods or storms accounted for around 27% of all home insurance claims. And that’s where buildings insurance becomes a life-saver! You have to have buildings insurance in order to get a buyto-let mortgage, but let’s break down the importance of each area of cover. Burnt Out: Fire Damage Temperatures are predicted to increase by 3.8°C to 6.8°C (under a high emissions scenario) by the mid-2070s. This past summer has given us a glimpse of what increased temperatures could look like across the country, with little to no rainfall leaving the ground dangerously dry. At the height of the heatwave in July, London’s Fire Commissioner called for an urgent barbecue ban as firefighters struggled to cope with calls and dozens of homes in Wennington in Essex burnt to the ground. Fire is one of the most destructive things that your property could face, putting not only the residents and neighbours at

LANDLORD INVESTOR 68TH EDITION

risk, but tearing through and destroying your property completely. While fires can be caused by accidents or failures in the home, we saw just this year that extreme heat can cause fires, so ensuring that your buildings insurance covers you in the event of fire is incredibly important.

subsidence claims with GoCompare Home Insurance finding that home insurance quotes with a history of subsidence claims have risen by 637% in the last 10 years.

Washed Away: Flood and Storm Damage

Subsidence is caused by the ground underneath your property sinking, which destabilises your property, leading to cracks and damage to walls and shifting of the structure that makes your property weaker and less safe. After fire and total loss claims, subsidence is one of the most substantial payouts for insurers.

According to the most recent CCRA report, an estimated 1.8 million people are living in areas of the UK that are at significant risk of coastal, surface or river flooding. This is likely to rise to 2.6 million by the 2050s.

While you might not immediately link this to climate change, it could be due to the extreme heat drying out the ground underneath your property and causing shifting that your property wasn’t designed to cope with.

In the last 100 years, the sea level along the English Channel has risen around 12cm, but due to the increased heat thanks to climate change, we’re potentially going to see a rise of 1116cm by 2030. However, infrastructure also has to take some blame, as new housing can lead to more water in rivers and tarmacing prevents water draining into the ground, so flooding becomes more likely.

Spotting the first tell-tale signs of subsidence is key, but even then - fixing the issue can cost a huge amount of money.

You could also consider installing internal and external shutters, which is a trick used by hot European countries to keep internal temperatures down, which we’re sure your tenants will thank you for!

Hot, dry summers lead to much wetter autumn and winters, which could see flash flooding that causes extensive damage to your property. The severe flooding from November 2019 to March 2020, caused by Storms Ciara and Dennis caused several deaths, brought trains to a standstill and ultimately cost the UK economy an estimated £333 million. Many of those affected did not have adequate insurance, so it’s important to make sure that you are thoroughly covered. Sunk Cost: Subsidence And it’s not only the weather that you need to worry about because the change in our weather could lead to more

What should my landlord’s buildings insurance cover? You won’t be able to get your buyto-let mortgage without buildings insurance but not all buildings insurance is created equal! Mashroom is a whole of market broker, so come to us and make sure that you’ve got climate change covered: • • • •

Fire damage Flood damage Storm damage Subsidence

If you have your buildings insurance already sorted, be sure to re-familiarise yourself with your policy. Make sure you know the risks in your local area to ensure that you are covered in all the right ways.

* All correct at the time of writing

MAR KE T O U TLO O K | L AN D LO R D AC TIO N

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

28% OF L ANDLORDS PLAN TO SERVE SECTION 21 IN NE X T 12-18 MONTHS 52

LANDLORD INVESTOR 68TH EDITION

MAR KE T O U TLO O K | L AN D LO R D AC TIO N

A survey carried out by Landlord Action, housing law specialist and part of the Hamilton Fraser Group, has found that 28 per cent of landlords plan to serve a Section 21 eviction notice to their tenants in the next 12-18 months, before the Renters Reform Bill comes into force preventing landlords from using it.

hen asked if they plan to serve a Section 21 in the next 12 – 18 months, a further 28 per cent of landlords said they were not yet sure, and 44 per cent said no, they did not intend to serve notice on their tenants. The vast majority (42 per cent) said the reason is because of concerns that they will not be able to gain possession easily in the future, and 24 per cent said there is too much legislation so they plan to sell up. Just 10 per cent of landlords said that it was because their tenants are already in rent arrears, 6 per cent are experiencing anti-social behaviour, and only 2 per cent of landlords said they wish to move back into the property. Commenting on these results, Paul Shamplina, founder of Landlord Action and Chief Commercial Officer for the Hamilton Fraser Group, said: “The response to our latest survey paints a very clear picture of the unintended consequences of abolishing Section

LANDLORD INVESTOR 68TH EDITION

21. More than a quarter of tenants will receive a Section 21 notice, not because they have done anything wrong, but because landlords fear they will be unable to gain possession of their properties as easily in the future if their circumstances change. Whilst I understand that tenants need greater security, pushing private landlords out of the sector at a time when competition for rental properties is at an all-time high is going to be disastrous for tenants. We continue to provide important feedback to the government which we hope will help shape the changes to Section 8 and give landlords the security they need to remain in the private rented Sector.” The survey also asked landlords if they had served a Section 21 notice in the last 12 months, to which 34 per cent responded yes. The most common reasons for this were rent arrears (31 per cent), landlords selling their property (26 per cent) and anti-social behaviour (22 per cent).

The response to our latest survey paints a very clear picture of the unintended consequences of abolishing Section 21. 53

LEGAL S P OTLI G HT | WO O DS TO C K

C A R LY J E R M Y N W O O D S TO C K

LEGAL SPOTLIGHT

WOODSTOCK LEGAL SERVICES

LANDLORD INVESTOR 68TH EDITION

LEGAL S P OTLI G HT | WO O DS TO C K

Who are Woodstock Legal Services?

egulated by the SRA we have a fantastic team of niche lawyers specialising in residential landlord and tenant law.

Our clients, across England and Wales, range from individual to portfolio landlords, small and large managing agents, those new to lettings and those who have been in the industry for years. Our team make our clients’ lives easier, helping them navigate the law whilst offering fixed fees to remove the concern over escalating solicitor’s costs. Our depth of knowledge and experience allows our team to cut the legal jargon and give landlords the practical solutions-based advice required in a stressful situation. What services do your residential landlord and tenant team offer? We advise on everything from standard possession proceedings and debt recovery to more complicated claims for disrepair, discrimination, and unlawful eviction. We work with agents and portfolio landlords providing legal helplines, bespoke and template documents, and in-house training. We also deal with the service of notices for many larger agents; a valuable service for our clients given 7 out of 10 notices we see drafted by non-legal professionals are invalid which causes cost and delay. What key hurdles do you see for landlords with the reforms looming? There are several hurdles I foresee, but successfully obtaining possession is

LANDLORD INVESTOR 68TH EDITION

one that stands out for me, becoming a more complex task with the abolition of section 21 “no fault” evictions. Whilst the new grounds deal with most motivators for obtaining possession, getting notices right and successfully litigating when required, will become more complex – less of the tick box exercise it has been in the past. It will be more important than ever that landlords get advice and obtain a well-considered and well drafted section 8 notice which can be supported by sufficient evidence if required at court. Possession claims will require hearings and therefore more court time, potentially clogging up an already overburdened system. This makes getting proper advice in a timely manner crucial. How can Landlords and agents navigate the rental reforms expected next spring? The reforms are a clear drive to improve professionalism across the industry and the standard and security of homes for tenants and whilst we have a good idea of what’s coming, the devil will be in the detail. Those looking for success in the private rental sector need to be armed with a great support team; lawyers and agents, who know the law inside out, have great processes, can make sure you are compliant and get the best possible advice in a timely manner. They should be reviewing their portfolios now so they can effectively adapt and respond. Don’t panic, review, learn, and prepare for change. Carly Jermyn, CEO

It will be more important than ever that landlords get advice and obtain a well-considered and well drafted section 8 notice which can be supported by sufficient evidence if required at court. Possession claims will require hearings and therefore more court time, potentially clogging up an already overburdened system. This makes getting proper advice in a timely manner crucial. 55

D E V E L O P 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

ON THE WATER-FRON T

LANDLORD INVESTOR 68TH EDITION

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

A new development will open up Liverpool's Northern Docks to the city waterfront for the first time in 50 years.

he launch of West Waterloo Place within Peel L&P’s Liverpool Waters masterplan brings with it a stunning waterfront residential development, which is focused around the suspended canal-fronted “Mauritania walkway”. Mauritania walkway hangs above the water, and forms a central part of the development, benefiting both residents and commercial tenants at the property. It connects Liverpool Waters to the city centre waterfront with a new link between Princes Dock and the new Isle of Man Ferry Terminal, which is currently under construction at Central Dock. West Waterloo Place is the third offering from the same development team and occupies arguably the best position within the whole of the Liverpool Waters master scheme. The first two phases were extremely well received by buyers, investors and tenants alike, and the area’s huge potential means the upcoming third phase is hotly anticipated. The scheme offers a rare chance to invest in a central Liverpool waterfront location at an early stage of the redevelopment process, in a spot that’s steeped in history and culture. Property consultancy BuyAssociation has worked with developer Romal Capital on its previous sites. With 330 new sustainable smart homes on offer, the team are excited to bring the project to market, and have already seen huge appetite from investors, local buyers and rental management companies.

LANDLORD INVESTOR 68TH EDITION

Caroline Marshall-Roberts, chief executive at BuyAssociation, says: “Park Central, the second phase of the Central Docks neighbourhood in Liverpool Waters, sparked massive interest from our investors, and sold out in record time. “Given how rarely a waterfront site of this nature comes to market, we’re confident that this upcoming phase will be just as successful. It’s incredibly exciting to be a part of the project and to see the area come to life.” As well as the new homes, the latest £100m development will offer retail space and amenities, with major investment in the surrounding infrastructure. Twenty electric vehicle charging stations are proposed, along with solar panels to increase sustainability. There’s a lot going on nearby, too, with Everton Football Club’s new stadium building well underway further along the banks of the River Mersey at BramleyMoore Docks, which will provide a major economic boost for the area. A brand new Isle of Man ferry terminal is set to open in 2023, while the new 4.7-acre Central Park was announced in August, which will sit at the heart of the whole master scheme and is adjacent to West Waterloo Place. If you’d like to find out more about how you can invest in property in the latest new phase of the Liverpool Waters development, you can contact BuyAssociation on +44 (0) 333 123 0320 or visit www.buyassociation.co.uk. liverpoolwaters.co.uk/ news-plus-updates

Given how rarely a waterfront site of this nature comes to market, we’re confident that this upcoming phase will be just as successful. It’s incredibly exciting to be a part of the project and to see the area come to life. 57

I N T E R I O R S | S T Y L E D®

K AT I E M O L N A R SENIOR INTERIOR DESIGNER STYLED

ST YLED.

LANDLORD INVESTOR 67TH EDITION

I N T E R I O R S | S T Y L E D®

Styled has had a busy year and it doesn't seem to be slowing down!

heir most recent project is St John's Mews in York, a holiday home just ten minutes from the bustling city centre. The lead designer on this project Katie Molnar, hit the brief perfectly meeting her client’s expectations and providing a contemporary accommodation for their customers. To stand out against the rest of the block, the apartment needed a contemporary design to attract a wide range of guests, suiting all ages. There was already a light monochrome base with large patio doors, so the apartment felt bright and airy. With this blank canvas, Katie injected bright colours, such as mustard yellows and walnut accents, that warmed up the pale grey kitchen. Together the mustard sofa and large monochrome art created an eye-catching feature in this room. Using dark anthracite walls and ceilings in the dormer window, Katie created a cosy reading corner. This helped to segregate the room whilst creating a stylish, modern feature, making the most of what could have been a wasted space. Moving into the bedrooms, you instantly feel at home; they were designed to be tranquil, relaxing spaces, using natural tones such as soft greens, warm mustards and

LANDLORD INVESTOR 67TH EDITION

walnut woods. In the master bedroom, a rich anthracite feature wall grounds the space; quite a contemporary feature, paired with soft Scandinavian influences which are fitting for a minimalist design. When asked about the project, Katie said: “The first thing I noticed when visiting the property was that an injection of colour was essential, therefore I went as bold as possible to create a real contrast. The wood also needed to be as warm as possible, making walnut the obvious choice. Seeing the anthracite windows immediately made me realise that it had to be a contemporary design, the anthracite paint was used to emphasise this. From here, a mood board was created as a ‘design influence’ followed by a technical drawing that ensured a considered spatial layout was created, to make the most of the apartment’s compact spaces. The client wanted a design that segregated the dining and living spaces within an open plan layout, an accent rug helped to achieve this.” Are you keen to find out more about Styled or want to freshen up your holiday let? Visit www. styledinteriordesign.co.uk and follow their social media @styleduk to keep up with what they do next!

To stand out against the rest of the block, the apartment needed a contemporary design to attract a wide range of guests, suiting all ages. There was already a light monochrome base with large patio doors, so the apartment felt bright and airy. 59

L E G I S L AT I O N | F O R B E S

GEORGINA KENNY S E N I O R A S S O C I AT E FORBES

L ANDL ORD L E G AL I T IE S AND HOW T O MAK E SURE YOU COMPLY 60

LANDLORD INVESTOR 68TH EDITION

L E G I S L AT I O N | F O R B E S

The importance of landlords complying with legal requirements during the term of a tenancy.

he recent judgments handed down in Byrne v HarwoodDelgado [2022] as well as the notably reported case of Trecarrell House Ltd v Rouncefield [2020], dealt with the validity of Section 21 Notices and highlighted the importance of landlords complying with legal requirements during the term of a tenancy. A Section 21 Notice can be served when a Landlord wants to seek back possession of their property from shorthold tenants for non-default reasonings such as wanting to terminate a periodic tenancy or at the end of a fixed term tenancy. For a tenancy that commenced on a date after 6 April 2012, all deposits must be protected in an approved scheme within 30 days of the start of the tenancy. If the deposit is not protected within this time and no written information is provided to the tenant regarding the same, it would not be possible for a valid Notice to be served at any time during the tenancy. If you are in such a situation as a landlord, you should return the deposit to the tenant before requesting it back and protecting it properly to comply with this legal requirement. A tenancy that started or was renewed after 1 October 2015 requires landlords to provide tenants with

LANDLORD INVESTOR 68TH EDITION

copies of the gas safety certificate, energy performance certificate and a how to rent guide at the start of the tenancy. As a landlord, if any of these have not currently been provided to your tenant, it is imperative that you do this as soon as possible. Both cases detailed above were concerned with gas safety certificates and whether a Notice could be served if the certificates were either provided to the tenant late or not provided at all. In Byrne v Harwood-Delgado [2022], questions were raised as to whether there was a valid gas safety certificate in place at the start of the tenancy and so the possession was set aside. Cases such as this highlight the ongoing importance that a landlord must continue to comply with their legal requirements. Here are Forbes, we can review tenancies and related documents to identify whether a Section 21 Notice can be served. If there are issues with documentation and failure to comply, we can provide you with advice as to how this can be rectified. We can handle the entire eviction process on behalf of landlords including Court representation, arranging enforcement, debt recovery and advising on new tenancy agreements.

A Section 21 Notice can be served when a Landlord wants to seek back possession of their property from shorthold tenants for non-default reasonings such as wanting to terminate a periodic tenancy or at the end of a fixed term tenancy. 61

C R E AT I V E S P O T L I G H T | S T E P H E N S + S T E P H E N S

HELEN STEPHENS C R E AT I V E D I R E C TO R

C R E AT I V E S P O T L I G H T

STEPHENS + STEPHENS

LANDLORD INVESTOR 68TH EDITION

C R E AT I V E S P O T L I G H T | S T E P H E N S + S T E P H E N S

Stephens + Stephens: pioneering the ultimate Cornish life + style property investments

ornwall is in the top five of the UK’s earning regions for investment and vacation property owners so investing in a holiday let proposition in the country’s ‘hippest’ county is without a doubt a smart financial move. More than ever before, holidaymakers are seeking luxury-end self-catering properties as opposed to hotel room stays, given that (on average) they offer 30% more space, more privacy, more freedom and are more costeffective in terms of there being no extra hidden costs. In recent years, even pre-pandemic, Cornish letting homes have seen an uplift in yield and an extension of the season. Plus, the staycation trend is certainly not dissipating anytime soon, particularly with a stronger awareness of climate change, and the ongoing issues at global airports. Born and bred in Cornwall, with over 30 years' experience, Stephens + Stephens is a multi-award-winning luxury property developer, architectural and interior design practice. The founders of the company have design and built a number of stunning developments in some of the best holiday locations in Cornwall. All of the Stephens + Stephens teams members live, work and play in this special corner of the world. They know Cornwall inside out. That’s why they know inherently what luxury holidaymakers want, and therefore what high-end investment buyers need.

LANDLORD INVESTOR 68TH EDITION

All properties are designed with both luxury living, and vacationing, front of mind and the extensive portfolio contains apartments, Penthouses and sizeable homes, all readily available for motivated investors. As an investment, or as a full, or a part-time home, all Stephens + Stephens properties are a perfect coming together of three key elements: a fabulous location, a striking, high-quality build and properly thought-through interiors, executed by an award-winning design team. And when it comes to interiors, Stephens + Stephens can provide a full 100% turnkey solution for investors, sourcing, fitting out and styling the ultimate bespoke investment home. This all means there’s absolutely no hassle for buyers – you don’t even have to come to Cornwall at all if you don’t wish to. Stephens + Stephens have everything in hand, if required. This additional range of services ensures that your Cornish investment is as swift, as seamless and as effective as you could possibly need it to be. With many top luxury holiday home booking providers reporting that 2022 bookings, are currently up 35% compared to even pre-pandemic levels, isn’t it time you invested into the inspirational Cornish life + style. www.stephensandstephens developers.com

Born and bred in Cornwall, with over 30 years' experience, Stephens + Stephens is a multi-awardwinning luxury property developer, architectural and interior design practice. 63

C O M M U N I T Y E N G A G E M E N T | H O S T & S TAY

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

KEEPING IT IN THE COMMUNIT Y

LANDLORD INVESTOR 68TH EDITION

C O M M U N I T Y E N G A G E M E N T | H O S T & S TAY

It takes collaboration across a community to develop better skills for better lives, believes Dale Smith, CEO of holiday home management firm Host & Stay.

Article reproduced courtesy of Host & Stay. Image by Middlesbrough Football Club.

y joining forces with local organisations, Dale hopes to get to the heart of the areas Host & Stay operates in - and that outreach is beginning through a love of the beautiful game. Kicking off a new partnership Football is a unique sport. Its heavy focus on the fans often means it’s the heart of a community and, in many cases, it’s the longest relationship people have had.

matchday tickets to disadvantaged children and families who would otherwise not have the opportunity to watch a football match. The residents of these underprivileged areas may not be able to attend the matches as often as they’d like, but that doesn’t mean the love of the game isn’t there. As a lifelong Middlesbrough fan myself, I know the joy going to a match brings, so to be able to provide that for others means a lot.

Middlesbrough and Sheffield Wednesday are popular clubs, drawing around 50,000 supporters to their matches each week between them, and both are wellestablished, having been founded over a hundred years ago.

But how do these partnerships tie into the wider business strategy and development of Host & Stay? Well, it all comes down to our purpose.

This long-established history and fan relationship is one of many reasons why we’re delighted to have been named as partners to these two great clubs for the current football season, signing deals that will bring key opportunities for Host & Stay, our employees and the wider community through engagement, club association, tickets and player activations.

While profit is undoubtedly important after all, without it, we cannot create jobs - the ultimate aim of Host & Stay, and The SDDE Smith Group as a whole, is to have a positive impact on everything we do.

By joining forces, our aim is to not only increase customer awareness, but also give back to the areas in which we operate. We’re hoping that these partnerships will enable us to get closer to communities through charitable donations, giving our time to volunteer, providing new jobs for local people and developing careers as we grow. We have also pledged to support both clubs’ charity foundations, the MFC Foundation and the Sheffield Wednesday Foundation, by giving away our allocated

LANDLORD INVESTOR 68TH EDITION

Fulfilling our purpose

Businesses form the backbone of any community because they bring people together, and we want to do all we can to build the character of the local area and help regional economies thrive. Local identity There’s a sense of pride in being part of a L-R: MFC head of partnerships Liam McGuinness and CEO of Host & Stay Dale Smith. community, and for us, we are beyond proud to represent Teesside and the North as a whole. By bringing our products and services to the area, we are hoping to influence it for the betterment of its residents, making daily needs more accessible and increasing local revenue.

With these football partnerships, we can help to form the identity of the local community and represent the important history of both Middlesbrough and Sheffield, both of which are crucial to the towns they serve. The clubs have helped to shape the character of the area, and our wish is to further encourage this, not only by connecting with individuals, but also by directly influencing tourism and creating a thriving community with our holiday homes. Local jobs for local people One of our key drivers is the ability to create jobs for the local community. Not only will this bring more money into the area, but it will also encourage more people to stay. This has a compounding effect, allowing people to work closer to home and improving the general quality of life for residents. For us, the answer to the question of whether, as a business, we can do this is undoubtedly yes. We are fortunate to be in a position to make a difference to the people and the places we operate, and communitycentred partnerships, such as the ones with Middlesbrough and Sheffield Wednesday, get us one step closer. The key for us is to come up with new ideas on how we can create positive changes in our communities. We’re on a mission to push boundaries, to create better places to live, to work, and to stay, and we look forward to seeing ‘Boro supporters and The Owls at their matches soon. www.hostandstay.co.uk 65

M A N A G E M E N T S E R V I C E S | P R I N S E G AT E

NICHOLAS PRINSE P R I N S E G AT E C H A R T E R E D S U R V E YO R S

THE D E V I L' S IN THE DETAIL

LANDLORD INVESTOR 68TH EDITION

M A N A G E M E N T S E R V I C E S | P R I N S E G AT E

Developers cutting corners with new builds, and why you should always instruct a building surveyor.

id you know approximately 94% of residents in new builds have reported and have been forced to deal with costly defects including electrical, plumbing, workmanship, and poor material issues? Prospective clients often ask why they should get a survey on a new build property, believing that a brand-new property will not have any defects or problems and should meet current construction standards. Most homebuyers and landlords would consider a new build to be a straightforward purchase – unfortunately, that is often not the case. Some of the issues a building surveyor might find on a new build: • • • • •

Quality and finish of the roof The sewer has been connected incorrectly The plumbing has not been fitted to the correct standards The windows and doors are incorrect sizes The electrics do not meet the necessary regulations

Additionally, during the first few months after the brickwork is laid in a new home, over one metric ton of water can be found in the mortar. It is therefore inevitable that the walls will move, settle and change quite substantially in the first few months, resulting in cracks, structural movements, and envelope instability.

LANDLORD INVESTOR 68TH EDITION

Over the past two decades, the UK has built more than three million new homes. Although government incentives have helped developers make record profits, owners can be left with a litany of issues. A good example would be Solomon’s Passage in Southwark, an apartment block built in 2010. After just six years of construction, the condemned blocks of flats were ordered to be demolished or refurbished due to building defects. Independent investigators found that the timber framework in all four buildings had water damage, a finding confirmed by the housing association. An expert chartered surveyor's full building survey is the only way to prevent problems from impacting your home's value in the future. Although the initial costs of a survey can be a few hundred pounds, it can save you Thousands. Contact us on 020 8001 7909 and our admin team will be happy to put you in touch with one of our RICS surveyors to organise a visit. We can also be contacted at info@prinsegate.com. Nicholas Prinse BSC (HONS) MRICS MCIOB FCMI MCABE MCIAT MSOE MMC MFPWS Director ‑ Chartered Surveyor CEO & Founder of Prinsegate Chartered Surveyors

D E V E L O P E R S P O T L I G H T | R O C K S TA R

KANE ANDREWS FOUNDER & CEO R O C K S TA R P R O P E R T Y PA R T N E R S

DEVELOPER SPOTLIGHT

ROCKSTAR PROPERTY PARTNERS

LANDLORD INVESTOR 68TH EDITION

D E V E L O P E R S P O T L I G H T | R O C K S TA R

From the age of 11, I was professionally playing gigs and performing across the UK and overseas. My main instrument of choice was the drums, followed by guitar, bass and piano - believe it or not, I used to sing too!

he ability to freely improvise on several instruments instilled creativity in me that I later implemented into property investment and business. The other benefit of improvising on an instrument is having the freedom to make mistakes whilst working it into a song. That’s exactly what I’ve done with HMOs - creating my own rules whilst ensuring the model still works. At the age of 22, I saved £9,000 from my gigs. I was adamant to buy my first property before my 23rd birthday, whatever it takes. So with £9,000 I bought my first ‘two-up, two-down’ property in Nottingham, achieving a 13.5% gross yield. After the refurbishment, I had £80 left in my bank account, but that didn’t matter. I still achieved the goal of buying the first property before my 23rd birthday - that’s all that mattered to me at the time. Rockstar Property Partners invest in the Home Counties and midlands. We now have HMOs in every Home County, which makes up 75% of the portfolio. The remaining 25% are in the midlands. You often hear people say, ‘you invest in the south for capital appreciation and in the north for yield’. Not for us. In fact, we often find the metrics on a percentage basis are incredibly similar for HMOs, whichever part of the UK we invest in.

LANDLORD INVESTOR 68TH EDITION

Our chosen areas are rife with trade, above-average employment rates and an under-supply of HMOs. We do not rent our properties to individuals, instead, we have companies rent the whole house for the equivalent of what individuals would collectively pay. Because of this niche, the areas we invest in suit better with high-employment rates and trade, specifically for company-lets rather than individuals looking to rent roomby-room. With the success of Rockstar Property Partners over the last 12 years, we have just franchised the business, having launched under the ‘Rockstar Property Network’ brand. We filled our first round of 10 Franchisees in just four weeks since launch, which is staggering to see. The Franchisees will learn how to invest in HMOs, the Rockstar way, creating a multimillion pound portfolio without using any of their own money. A new concept we are incredibly proud to share with others. The remainder of the year will consist of nurturing the first 10 Franchisees through their training week in October. We’ll then recruit the next 10 Franchisees before the year-end, ready for their February training. With regards to buying HMOs, our pipeline remains healthy and we’ll continue to invest with caution for the remainder of the year and into 2023.

With the success of Rockstar Property Partners over the last 12 years, we have just franchised the business, having launched under the ‘Rockstar Property Network’ brand. We filled our first round of 10 Franchisees in just four weeks since launch, which is staggering to see. 69

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

FIVE PREDICTIONS FROM PREMIER PROPERTY

LANDLORD INVESTOR 68TH 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 Bank of England recently increased their base rate to 1.75%. The highest rate it has been for the last 13 years (and I'm guessing you remember what happened 13 years ago). Many people in the Premier Property community have been asking what the implications are of this.

elow, I've written 5 important points on this increase, some would say they're predictions, but if you know us at Premier Property, you know these 'predictions' are very accurate. And, for those of you who have been following us for a long time, can you see how everything is unfolding just like we have been stating? Prediction No. 1 They are boiling people like frogs. This might sound strange, but follow me here. Are you aware how they boil a frog? Well... They put a frog in luke warm pan of water, and they increase the temperature just 1 degree at a time. This incremental increase, over a short period of time results in the frog being boiled. The same process is unfortunately happening to property investors in the UK. This small 0.25% increase doesn't seem like much straight away, but this is the 5th consecutive in around as many months. 0.25% from what it was recently to 1.25% is a 500% increase. Now up another 0.5% to 1.75%. This will have a knock on effect on the mortgage market, lenders will (and have already) started to increase their rates. Prediction No. 2 The Love-Hate relationship between inflation and interest rates. The current inflation rate is 'apparently' 11% according to the government, but we all know that's not true, I mean look at petrol, or assess building material prices. The fact is, we need a small level of inflation, (2% ideally) for there to be economic growth. Now, there is an

LANDLORD INVESTOR 68TH EDITION

explanation between how inflation and interest rates are linked, but that would make this email more in to a book, so to explain is simply, when interest rates are low, inflation if high, and if interest rates are high, then inflation is low. So currently, with inflation skyrocketing, one of the ways they will decrease inflation, is by raising rates. If inflation falls too quickly (which it will), then that will cause a slump in the economy, and you guessed it, the recession is here! Prediction No. 3 Have you checked your holiday money? Did you know, the pound is at its weakest it has been for just over the past year against the euro, and is also weakening against the US dollar? America increased their federal rate, which means the dollar is more attractive at the moment and the sky rocketing inflation in the UK has meant that the pound is weak. There's a term called 'aggregate demand' and the value of the pound does have a huge impact on this. When the pound is weak, it means foreign countries have a stronger buying power. That means, they will begin to invest in to UK asset classes. That's why, right now, while the competition is less, you need to get in, build relationships with estate agents, auctions, building teams, etc so that you are prepared for when this increase in competition arrives. The advantage for you is, when you get in now, the increase in demand for UK property will push prices up faster, so getting in now, buying well, hedging the market, means as we head in to this recession you are safe and secure, but as we head out, your profits will increase dramatically.

Prediction No. 4 Impending tax hikes. One of the ways the government can stimulate the economy is by actually spending more. But, if they have no money, and they are struggling to print more (because of rising inflation) how do they get more in? You guessed it! Raising taxes. Right now, you should be creating a tax plan for your portfolio, and if you are new, you should always start with the end in mind and know what kind of tax you will be paying and how to minimise this according to HMRC guidance. Prediction No. 5 The death of certain strategies. 'm pretty sure there will soon be a youtube video, or email out there about this, but property strategies that are both time-tested and proven don't just 'die', people fail to adapt. I strongly believe there are 8 strategies that are working very well, and will work even better as we head in to the recession. Be aware of 'marketing' that is just trying to sell you stuff, strategies like buy to let are not vanilla, buy to let is not dead, you can buy and sell in a recession, and you can successfully implement 6 other strategies (of course you choose the best 1 or 2 for you) as we head in to a recession. We are holding a FREE Online Masterclass about how you can finance your property deals in 2022. To register, email hello@ premierproperty.co.uk and we will get you registered.

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