Immigration Bill factsheet

Government

Government

Since the Immigration Bill received Royal Assent on 14 May, and became the Immigration Act 2014, letting agents and landlords have been awaiting further details.

In simplified terms the Act will require landlords, or their agents, to carry out checks on the immigration status of any prospective tenant.

More detailed information pertaining to the ins and outs of the act have been thin on the ground – there isn’t even a confirmed date for when the Act will come into force – and this has left landlords and agents confused.

At the start of August, The Home Office released their ‘Factsheet: Tackling illegal immigration in privately rented accommodation‘. The “factsheet”, far from being the comprehensive list of answers that was expected, is in fact a vague collection of information that has created more questions than it has answered.

We continue to wait for the government to release further information and hope that any new releases will answer the many questions that have been left unanswered.

Private Rented Sector properties with low a EPC to be banned

Move to ban rental properties with low EPCs

Move to ban rental properties with low EPCs

In less than four years landlords will have to have made sure that all of their Private Rented Sector stock has been made energy efficient.

After April 1st 2018, as part of a requirement laid out in the Department of Energy and Climate Change’s two consultations on the Private Rented Sector Minimum Energy Efficiency Standard Regulations, a landlord will not be allowed to let out their property if it does not have a minimum EPC rating of an ‘E’.

The consultation also refers to April 1st 2016, from this date tenants will be able to request their landlord to carry out reasonable energy efficiency improvements to improve the properties EPC rating. The landlord can not refuse to carry out the necessary works if requested.

The consultation is currently seeking industry input on how to implement these regulations, which are part of the Government’s plans to reduce carbon emissions.

In Conversation With… John Grimes

John Grimes, Managing Director, Drummond House Developments Ltd

John Grimes, Managing Director, Drummond House Developments Ltd

We are regularly in conversation with a plethora of leading figures in the property, investment, finance and charity sectors, many of whom are guest authors for PRSupdate. The purpose of this feature is to get them to discuss the topics and issues that are currently affecting the Private Rented Sector.

If you would like to take part in an In Conversation piece then please do get in touch with us.

Today we are in conversation with John Grimes, Managing Director at Drummond House Developments Ltd.

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Changes to Capital Gains Tax target non-resident sellers

Peter Sarney, Director, Felton Pumphrey

Peter Sarney, Director, Felton Pumphrey

The imposition of Capital Gains Tax (CGT) on the disposal of UK residential property for non-residents came as a surprise to many people as the UK government seeks to level the playing field between those who are tax residents in the UK and those who are not.

Unlike many other countries, that tax gains on the disposal of residential property situated in their jurisdiction, the UK has not generally charged CGT on gains made by non-residents. The result of this is that a gain would either be fully taxable in the country of residence or escape taxation entirely.

The UK government considers this to be unfair and has proposed legislation to tax the gains on residential property of those who are non-resident in the same way as gains made by those who are resident.

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Spring/Summer 2014: Private Rented Sector Operations – Why Function When You Can Really Fly?

Neil Young

Neil Young, CEO Young Group & Young London

With its focus on operational aspects of the Private Rented Sector (PRS), the latest edition of our Biannual PRSupdate publication has gathered together a selection of articles that gives a flavour of the elements required in managing PRS assets on a day-to-day basis.

Undoubtedly clearly defined processes, supported by robust procedures are at the heart of successful PRS operations, as Kris Wadia explains. Kris was, until recently, a Managing Director with Accenture, a global consulting organisation.

He is now CEO of Humanized Leadership, which advises businesses on profit improvement. However, it is how those processes are brought to life within the business and delivered (both internally and externally), and the tools that are employed that have the potential to differentiate between a business that functions and a business that flies.

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Bank of England announce new mortgage affordability test

Mark Carney, Governor of the Bank of England

Mark Carney, Governor of the Bank of England

Mark Carney, Governor  of the Bank of England (BoE), has proposed a new mortgage affordability test to curb the proportion of home loans that can be lent  at more than 4.5 times their income. The measures are being touted as an attempt to prevent dangerous levels of household debt.

A consultation paper has been published today and will be open for comments until 31 August 2014 with the final rules will come into effect on 1 October 2014.

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Involving the Private Rented Sector in the development of official statistics

Gary Trent, PRS Stakeholder Lead, Valuation Office Agency

Gary Trent, PRS Stakeholder Lead, Valuation Office Agency

Wikipedia describes statistics as ‘the study of the collection, organization, analysis, interpretation and presentation of data’. Having worked closely with the Valuation Office Agency (VOA) statisticians for the past few years, I can appreciate the importance of each of these elements, no more so than in developing official statistics.

However, from my experience, there are two really important things missing from Wikipedia’s description; understanding what your audience want from your statistics, and then involving them in the ongoing development process.

As we aim for National Statistics accreditation they are the two aspects the VOA is now focussing on, starting with our Private Rental Market (PRM) official statistics.

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In Conversation With… John Coles

John Coles, Director, Evenbrook

John Coles, Director, Evenbrook

We are regularly in conversation with a plethora of leading figures in the property, investment, finance and charity sectors, many of whom are guest authors for PRSupdate. The purpose of this feature is to get them to discuss the topics and issues that are currently affecting the Private Rented Sector.

If you would like to take part in an In Conversation piece then please do get in touch with us.

Today we are in conversation with John Coles, Director at Evenbrook.

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Time to cool off

Compliance Corner

Compliance Corner

As of today, The Consumer Contract (Information, Cancellation and Additional Charges) Regulations 2013  has extended the contract ‘cooling off’ period from 7 days to 14 days. The regulation will only apply to contracts entered into on or after today (13/06/2014).

The introduction of this new regulation means that the following have been superseded and thus do not apply from today:

  • The Consumer Protection (Distance Selling) Regulation 2000
  • The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc Regulations 2008

Most importantly, for the Private Rented Sector, the regulation now states that the ‘cooling off’ period no longer applies to Tenancy Agreements or guarantor contracts.

The extended cooling off period is still relevant for Terms of Business for both sales and lettings, unless the contract is signed at the businesses office.

Government releases “How to Rent” guide

How to Rent: The Checklist for Renting in England

How to Rent: The Checklist for Renting in England

The Government has released its guide, How to Rent: The checklist for renting in England, in a drive to educate the public about renting best practices.

The guide, in an attempt to inform and educate tenants and landlords, has all the important ‘need to know’ rental information in one place.

The Government hopes that, by making the public more aware of their rights, they can help the industry as it strives to stamp out bad practices.

Kris Hopkins, the Housing Minister,  said that “encouraging a new generation of well-informed tenants with easy access to useful and understandable information would help root out the small minority of rogues and raise the game of any landlords who don’t know what is expected of them.”

Young Group believes that educating tenants and landlords is an important step in helping to improve the sector. This guide is a step in the right direction in the fight to help improve the growing Private Rented Sector market.

Young London has produced its own series of information guides to help renters navigate through the process of renting in London. Young London has produced its own series of information guides to help renters navigate through the process of renting. A market of informed renters will demand positive renting experiences which will in turn raise standards and root out bad practice.

Spring/Summer 2014: Delivering A New Way Of Renting At East Village

Stuart Corbyn, Chairman, Get Living London

Stuart Corbyn, Chairman, Get Living London

As the Sochi 2014 Winter Olympics came to a close it was hard to imagine that it had been nearly two years since the eyes of the world were on a corner of the East End during the London 2012 Games. And, while the spotlight on Stratford may have diminished since the summer of 2012, the level of work and regeneration in the area has only increased.

For us at East Village, the new neighbourhood at the former Athletes’ Village, the progress has been particularly significant. Over the past 18 months, what were beds for athletes have been transformed into new homes for Londoners and in November 2013 we welcomed our very first residents.

While the Olympic sports venues are making their own strides towards their post-Games use, having the first residents living in a brand new neighbourhood next to the Olympic Park is arguably the strongest legacy of the London Games so far.

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What does the future hold for the Private Rented Sector?

David Lawrenson, Director, LettingFocus.com

David Lawrenson, Director, LettingFocus.com

The Private Rented Sector (PRS) is in a constant state of flux and it is impossible to tell, with an absolute certainty, what is in store for our sector, especially with a general election looming on the horizon.

No doubt there will be many Think Tanks producing reports to pontificate on the sector! But, on a serious note, I am sure we will see a step towards more regulation and I do not believe all of it will be for the betterment of the sector!

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In Conversation With… Gary Trent

Gary Trent, PRS Stakeholder Lead, Valuation Office Agency

Gary Trent, PRS Stakeholder Lead, Valuation Office Agency

We are regularly in conversation with a plethora of leading figures in the property, investment, finance and charity sectors, many of whom are guest authors for PRSupdate. The purpose of this features is to get them to discuss the topics and issues that are currently affecting the Private Rented Sector.

If you would like to take part in an In Conversation piece then please do get in touch with us.

Today we are in conversation with Gary Trent, PRS Stakeholder Lead at the Valuation Office Agency.

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Immigration Act takes effect from October

Compliance Corner

Compliance Corner

The Immigration Bill, which has now received Royal Assent and become an Act of Parliament, will take effect from October this year and puts the onus on landlords, or their agents, to check the immigration status of any prospective tenant.

The aim of the Act is to prevent people with no right to be in the UK from renting property in the Private Rented Sector.

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National house building statistics

National house building statistics

National house building statistics

The latest national statistics on house building in England (March quarter 2014) have been released.

The data shows that house building starts are on the increase and are nearly a third higher than this time last year, although they are remain nearly a quarter below their 2007 peak.

While this can be seen as a positive it is still far short of the number of houses that need to be built in England to be to keep up with housing demands from population growth.

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