Carryon Regardless

1 hour ago, Melboy said:

Probably not, but my circumstances are probably different to most landlords. Landlords who are working on tight budgets and are really affected by the increased mortgage rate, bad tenants, repairs and overheads etc. are most likely to be the first to take their money by selling up with a capital profit and getting out of BTL.

Some one is talking about me.

This might depend on restrictions within the AST, but to give the tenants chance to budget, and lessen the blow, you might increase each four months over the coming year.

Your situation re: deposit would seem muddy at best.

https://www.gov.uk/tenancy-deposit-protection

The question here is, did the tenancy evolve to become the sister? I expect the sister paid you, you accepted, you dealt with the sister only, and so she wasn't considered to be a sub tenant.

All that being the case it might be viewed that you kept the original deposit, for what ever reason.

Have you tried discussing the tenancy closure with them?

Are they likely to defend a repossession?

As said, if they surrender all the possible complications evaporate.

https://www.gov.uk/evicting-tenants/section-21-and-section-8-notices

Section 21 will fail if defended for much more than failure to protect a deposit that has been taken and failure to have a valid EPC.

An up to date EPC is easily sorted, and I don't see evidence of a previous EPC (or not) when one is created.

The deposit issue is more serious. You could end up repaying 4x the deposit.

You should consider your other tenancy obligations also.

It may be easier for you to consider negotiating a tenancy surrender, by offering a financial incentive. If your tenants are naive it could be cheaper also.

Asking for wording shows a naivety on your part, as a correct notice would be used. So I wonder where else you may be at risk.

Also, the section 21 is being abolished and replaced by a new system. While this is 'underway' i believe we can still use them. But if honest I'm not as up to date as I would be if I were planning a repossession, in England. In Wales it seems I may still serve a S21 till March on existing tenancies. Feel free to comment Grampa. 

Example, the M/cr suburb property. A 3 bed terraced, let to single lass with 2 kids, on benefits. I have charged £700 pcm this last year.

The cheapest I could see locally was £825, for a 2 bed.

So I rang said lass, better to talk it through with some, not so with others. She has been expecting my call for some time, and considering her budget in preparation. I should add that to date she is a good payer, and only calls me if she should. I said I had pencilled in a rise to £750, and that was easily agreed.

Another, very local, should see a rise of over 10% and still be cheap. I don't anticipate issues from that, working, tenant.

But Accrington. A 7.8% rise to £422 pcm isn't going to be well received. It is still cheap. But selling in this climate would be more hassle than it's worth. I would hate to lose these 2 brothers as I'm well aware of the low quality of local tenants. My expression is that I would nail their feet to the floor rather than lose 'em, so I tread carefully.

Each year, at this time, I look around at comparable rents. Various locations, so in theory various % increases.

For a few months I've been reading of drastic increases, generally. But as I look at statistics I'm seeing less than 4% quoted.

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/october2022#:~:text=1.-,Main points,12 months to October 2022.

Looking at Right Move and the like I think these statistics are not even a useful guide.

I look at the locality, local reference rents if you like, and pitch below the asked rents. A strategy that has become more widespread over the years is, more for the self managing LL I feel, to not squeeze too hard and lose tenants or reduce demand.

So this year the same, I'm looking, then pitching lower. In fact more often I am being perhaps overly generous as if I ask more than tenants can manage there is going to be more defaults. Most failing tenants pay nowt if the total is out of reach. That starts the downward spiral of a failed tenancy, and the attempt to close down the tenancy, a lose  / lose, as I / we don't know who the next tenant will be.

It is only the flats in Prestatyn that would see a 3.76% increase, that'll cause backlash I'm sure. 2 tenants are already failing, I perceive a 3rd is on the brink. A 4th needs daddy to pay his top up. This 'aint looking good.

Otherwise, in England, even being generous, I've planned between 7.5% and 10.5% increases. One area in particular, a Manchester suburb, has gone wild by the looks of it.

Are you guys and gals being gentle or otherwise, when it comes to the rent increase that is?

54 minutes ago, Richlist said:

One could argue that those people who complain because they find themselves disadvantaged do so as a result of being in the wrong place at the wrong time.

There are a lot of places in the UK that could be seen as the wrong places. For many there isn't the financial headroom to place themselves, it is more a matter of prioritising limited resources.

Maybe so RL.

But we aren't the only one's in the sights for carrying increased responsibility, while paying more for that privilege.

The long suffering effects of H&S might be seen as demonstration.

More recently we are all caused to pay toward the green initiatives. IC fuel seeing a 12p additional loading come march.

Is this a design of squeezing at all ends to cause greater personal worries, and so less unified rebellion?

We recognised a while back that the country is skint. We were all destined to pay more toward sustainability. This pain is, most likely not only, nationwide. If we were suffering more than most we might gain the sympathy needed for lesser penalty.

Wales and Scotland are doing some nasty things to the capitalist LL. But a worthy consideration is what England might do, additional to their ongoing attacks, over the next couple of years.

I view Westminster monitor the devolved local councils actions and amend where considered appropriate, by them.

Extended repossession periods, and costs to attempt repossession.

Restricted charging for many things, so many restrictions there already.

Increased licencing of LL's, and costs for such including training course.

Lost control over tenant actions / activities, to include 'guests' animals, children, decoration.

We are already aware of the loss of possibility to repossess for our non compliance of many aspects.

Our risk of being required to repay rents (12 months worth is the oft penalty) for failings.

Shall we be required to provide EV charging points?

Shall we find ourselves increasingly liable for Council Tax sur charges / premium, or similar?

Unknown to many, but Wales choose to re classify standard houses as HMO if more than 4 persons lived there. The redesign to meet the standard was, in my limited experience, impossible. The application would have been expensive, the fines of course scary.

What should we expect in England going forward?

Cool way to go that man.

I've considered these sort of things, but there are some issues I see.

There needs be no outstanding finance.

It is a style of mortgage surely, but more complicated.

If a tenant / buyer defaults how complicated would it be to recover the property from them. I guess it isn't as simple (and it isn't simple any longer anyway) to hoof 'em. Would this become a complex repossession from a part owner?

Could there be claims that as tenant the deposit amount is illegal.

Who carries the individual responsibilities for the actual property, repairs etc.

The seller would need to act as leaseholder for the whole to protect his interests, until the whole has been disposed of.

My feel is that any court actions would be thwarted by Shelter by claiming a tenancy is in place, and then that any recovery would need to follow a repossession from an owner when that alternative suits. I can imagine who would suffer the legal costs.

Good luck to the guy, but there are too many sticking their oar in to what could be an attractive and mutually advantageous proposition.

Even if the guy 'aint English, he is a capitalist in the socialist arena.

Happy New Year.

With a lot of luck things will be an improvement on previous.

Mine wasn't so bad, although that's just the diagnosis.

I have loads of drawings on a Keycad programme, but since the demise of Win XP I can't read them. I would have seen that I had run pipework in anticipation of a conservatory to the far corner of the lounge. What I had done was to pick up that pipework for the addition a smaller lounge radiator. That's ok, but the motorized valve that is designated for the larger rad is now u/s.

I can manually cheat the valve and that allows hot water to the rad. So a new motorized valve and all should be good again.

I think it's time I picked up an old laptop that can run XP.

Rent yes, but it is often better to negotiate a settlement rather than pursue the whole. We can't (legally) take rents from 2 sources for the same period. So an agreed settlement to release a tenant from the contract would avoid such a claim.

By community charge do you mean council tax? If so the council will revert the charge to you from the date of departure by the tenant. While you might claim the tenant has the responsibility you would then need to pursue them for it.

When I installed the system i zoned the house to 6 areas. So room stats operate various motorized valves (via a control centre). The radiators are simple valves / lockshields that haven't been touched for years.

The lounge has 2 radiators off the same motorized valve, 1 heats, t'other (the larger) doesn't.

I might try shutting all other rads down to give that rad max pressure, and see what happens. My thinking is that the micro bore is sludged up some, but if honest I would rather tackle it when we warm up next week.

For a while I've viewed that Westminster will be watching the experiments of both Wales and Scotland. I don't include N.I. as aside from having no knowledge there doesn't seem to be anyone at home in Stormont.

Anyways where these local devolved gov't's enjoy some unexpected success Westminster, or parts of England, can tweak and adopt. Apparently Manchester are to charge a tourist tax like Wales will for example. Even thought the effect is still unknown.

Where the little nations of the UK blow it Westminster can gloat in the backlash that they won't enjoy.

On the plus side. The socialist council of Hydburn (that's Accrington+ for the less aware) are dropping their selective licencing, after some 10 years of it, and they, doing nowt beneficial with it. I can't see my getting a £1.5k refund for the one property I have there.

On the MT (agreed sale) property I attended Tuesday, a bit late really as the cold had already hit.

Anyway stop tap off, all taps open, central heating drained down.

I can't trust the ex tenant installed pay as you go gas supply to rely on frost stat protection.

At home I've a large radiator that won't heat, I can't see it being a freeze issue as the house stats are set at 17 C. So it looks like a drain down and flush. Why do these things never show up in warmer weather?

Then there is the windscreen washers, on both cars. I filled with 10% isopropanol alcohol a couple of days ago, and there is still a problem, with both.

From what i see they all earn more than I anyway.

Personally I don't blame those with what I perceive as an already healthy income wanting more. It's what we are taught.

We watch our money being abused by those at the very top, if Baroness Mone is guilty of pilfering the occasional £29 million during Covid I perceive she is the 1st of many. 

Our Gov't are supposedly protecting us from abuses but large (and small) companies strategise complaints procedures that cause us to give up on our complaints.

It feels like our world and the wider world is in meltdown, and while we might ask what we can do for our country we might find that if we are slow at getting what we can, as those setting an example seem to do, there will be little assistance come a time when we need it.

Personally I feel my social contribution is already too great.

But I do totally agree that the significant wage rises being demanded will only make things worse,long term, if they are satisfied.

Mel reasonable points but,

some of the strategy might depend on age and pension desires.

Going in to the last financial crash of 2007 / 08 I stated that we (wife and self) might be working for nowt for 6 years if the prices crashed and took time to recover. Back then the equity gain was my main consideration, largely in recognition that tenants (ours mainly) being amongst the least reliable things on the planet.

I didn't factor in the v low interest rates that really did boost profits. I learned to manage the tenants better some, but as readers here know that has been a continual challenge.

Anyways, the prices remained low for much longer than 6 years. Had we sold the flippin' lot and redirected our efforts I believe we would have come out far better. And that ignores the stress of facing off abusive wuckfits.

So now the prices are set to drop again, I believe we may be on the edge of a precipice, perfect storm sort of thing. What does contradict that thinking is that housing is set to be in higher demand. But there is only so much can be afforded by those needing a roof and walls, and legislators may also increase controls on our charges.

So now I am much closer to a desire of retirement, and I see that if I wait for market recovery, my perception is that, there isn't going to be many years left to enjoy the 'possible' benefits of waiting. Ski and sailing abilities will be less.

I am now looking to secure a basic retirement situation. 1 sold, 1 agreed sale (but only count the chickens in the bank), I've dropped another from offers over £150k to offers around £139.5k yesterday. More keen to exit Wales than England BTL, but don't think over time there will be much difference. BUT the WRA are set to make use of other methods to destroy their own economy (making N Wales a lesser safe and pleasant place to be).

I am more than happy to discuss, debate, and bounce all thoughts, as to the future. I tried that in 2007. Most responded that my thinking was too dire, in fact it wasn't dire enough.

Is the property market looking bleak?

For how long?

How far will legislators go in attacking BTL's?

Will they realise they have already gone too far? I don't think so, although some MP's are showing some apprehension. Will there be 'any' reversal of the Landlord attack policies?

https://www.cse.org.uk/downloads/advice-leaflets/energy-advice/insulation-and-heating/advice_leaflet_condensation_damp_mould.pdf

I haven't read this through 'yet', but maybe suitable.

I'm a bit busy converting seats in our very multi purpose Viano. So later. But time for a cuppa at least.

Good tip RL, I'll look out for that and include it in my tenancy pack, or at least a link to it. I'm not sure if I would get credit for destroying less trees though.

If we only let to those that have citizenship, rather than a limited visa, they will have passed an English written exam, and be passed as competent in our language (even if only to a better level than many of my other British tenants).

I think the media have yet to exploit this as an anti landlord, click bait, type campaign. I feel our exposure to the accusations will increase with the "I can't afford to open windows" situations incoming.

So they have ditched the Rochdale Housing Exec, if this is truly attributable to the lack of maintenance then corporate manslaughter would be applicable, wouldn't it? The defence of that may well cite ignorance and neglect of the tenants, if the pc brigade would allow it.

For us I guess we may need to improve our inspection regime, and record of it and findings. Follow up with yet more admin and such as a 'How to prevent mould and deal with it' brochure, signed for. The "my bad health is because of my neglectful landlord" claims will likely increase.

54 minutes ago, Richlist said:

I will be able to recognise a few opportunities

Please divulge when you have.

I saw Russia in the early days of Putin. The males suffered so much apathy from the Soviet collapse and financial 'what's the point' era, alcohol being cheap became widely used. I wonder, if to compound the depression were said to be in, we will see much of that apathy also.

Keeping an affordable car on the road is becoming more difficult.

Using it is much more expensive.

Food and heat are, well you know.

If we have income (from gainful efforts) there is to be less left for us.

AS you say RL being in business is much more expensive, legislation continues to add to the overheads.

And the rights of the consumer mean the risks are massively higher then was.

Still it'll be summer again soon, ish.

5 hours ago, Richlist said:

One question that doesn't seem to be answered is WHY when the UK borrowing is lower than most other industrialised countries have they decided to raise interest rates heading into a recession. None of the other major economies have decided to do that. It doesn't make sense to me.

They're hoping to fend off inflation.

That's the inflation that is in no small part due to the borrowing to save us from covid, by pushing money into the economy 1930's Germany style.

It's possible that the Gov't are also attempting to restore some faith lost by the money markets during the Kwarteng / Truss short era.

I want to sell more and really dislike losing more in CGT. From what I understand this reduced threshold will affect more than just property exinvestors, but our incentives to invest have been hit hard already. Do investors consider the tax burden when investing, I'm not sure.

The main question from that is will it deter future investment in the UK? Maybe that will depend on what else, or where else, looks good. But I do recall a previous Davos policy was for advanced nations to have unified tax strategies, so reducing the tax haven possibilities. Not sure if that would include Panama and the like though.

The one that will, I feel, cripple the economy is a 12p pl tax addition to ICE fuel. Methinks the knock on from that would stall the economy and accelerate the depression significantly.

I would hope Debbie has made some progress during these last 3 years.

She hasn't been back on so I assume so.