National Landlords Association NLA News Update Richard

National Landlords Association NLA News & Update Richard Blanco, NLA Representative www. landlords. org. uk

In Today’s Update • Tax Changes Timeline & Update • Brexit Implications • Regulation – Client Money Protection, Electrical safety, ‘Green Tax, ’ HPA Implementation – Update on licensing across London • Mayor of London’s Plans • House Prices, Repossesion & Rental Increase Stats www. landlords. org. uk

Tax Changes • Now In Force – Replacement Furniture Relief (replaced wear and tear allowance) affects 47% of us – 3% stamp duty surcharge on additional properties – 8% CGT levy • Still To Come – Withdrawal of 40% and 45% mortgage interest relief begins 1 April 2017 – 25% withdrawal per year over 4 years – By 1 April 2021 only 20% relief can be claimed www. landlords. org. uk

Tax Changes Update • Judicial Review permission hearing held and permission to proceed denied • Some landlords are proposing a campaign to raise rents www. landlords. org. uk

Implications Of Brexit • On Construction – Fall in share prices and gating of commercial funds – Larger construction projects have stalled according to Grafton Group (Selco, Buildbase & Plumbase) – Lobbying for removal of 3% SDLT surcharge • On House Prices – – – To July 12. 3%, Rents 3% (in London) Micro markets Bank of England predicts small fall Mortgage approvals at an 18 month low Supply is almost at a 30 year low www. landlords. org. uk

Implications Of Brexit • Reduction in Bank Base Rate to 0. 25% – Great time to remortgage • Pound down by 15% – Renewed interest from overseas investors – SDLT 6 x £ 250, 000 = £ 60, 000 – SDLT 1 x £ 1. 5 million = £ 138, 750 • Change In Government Policy? – Possible removal of 3% surcharge – Build to Rent vs Landlords vs Homeowners – Autumn Statement 23 November www. landlords. org. uk

Brexit Unknowns • • • Hard or Soft Brexit? Article 50 in March 2017…… so 2019? Recession? Inflation? Wages? Will PRS decline? www. landlords. org. uk

2016 Housing & Planning Act • Civil Penalties • Extension of Rent Repayment Orders • A revised fit & proper person test • Wider availability of tenancy deposit data • For Consultation… – Electrical Safety – Client Money Protection – Abandonment – Banning Offences & Orders – Rogue Landlord Database www. landlords. org. uk

Implementation • Sharing of deposit data with LAs begins end of 2016 • Banning offences and orders are set to come into force from Oct 2017 following consultation • Mandatory Client Money Protection – Government has established a working group – No Policy As Yet On Electrical Safety Tests – Likely mandatory fixed wiring test every 5 years, PAT tests still uncertain – Reassured there will be long lead in time www. landlords. org. uk

Other Regulatory News • ‘Green Tax’ – Landlords won’t be able to start or renew tenancy in property with EPC F or G rating from April 2018 – Landlord must spend up to £ 5, 000 to bring it up to an E rating, thereafter be exempt…. – Government is consulting, NLA is opposed • Don’t lose your right to serve a Section 21 – EPC, DPC, Gas Safety Cert, How To Rent Guide – Only 40% of landlords are doing this – Test smoke alarms too www. landlords. org. uk

Other Regulatory News • Bank of England Regulation of Buy To Let – – Compulsory stress test of 5. 5% (commercial exempt) Some lenders have increased rental cover to 145% New criteria for portfolio landlords Will affect maximum loan to value in London • Rent Smart Wales – – Deadline for registering/licensing is 23 November Compulsory accreditation Fees are £ 33. 50 and £ 144 Only 10% of landlords had registered by July www. landlords. org. uk

Licensing Update • Think Before You Buy – 7 Boroughs have Article 4 Directions in London – 19 Boroughs consulting on or have implemented licensing schemes – www. londonpropertylicensing. co. uk • Redbridge – – Two proposed schemes SL in 2 or 14 wards Unclear about AL – say they will borough wide Consulting until 16 October 2016 (fees £ 250/£ 500) Hinted they are looking at Article 4 www. landlords. org. uk

Licensing Update • Havering – expected to begin consultation on Selective Licensing in 3 wards then borough wide this Autumn. – Introduced Article 4 on 13 July 2016 • Newham considering options on licensing – Current scheme ends on 31 December 2017 – 20% restriction applies on selective licensing (or secretary of state permission required) www. landlords. org. uk

Mayor Of London’s Plans • More moderate than initial wishlist • Discretionary Licensing – Common framework, more consistency, incentives • London Rental Standard – Boris record was poor, but keen on accreditation • Support Build to Rent • Naming & shaming bad landlords • London wide lettings agency – Aimed at market renters www. landlords. org. uk

Latest Possession Stats • Q 2 2016 Possession claims down by 6% • Repossession orders down by 4% • Average time from claim to repossession by bailiff is 41 weeks www. landlords. org. uk

Inside Property Podcast • New monthly podcast • First episode on Brexit and investing • insideproperty. org. uk www. landlords. org. uk

Join Us • Today for £ 75 instead of £ 99 • Advice line & Library • UK Landlord • Discounts on mortgages, insurance and other services • Your voice • Be a professional • 87% satisfaction rate www. landlords. org. uk

What do you think? Time For Questions Richard Blanco, NLA London Representative richard. blanco@landlords. org. uk Blog at www. richardblanco. com www. landlords. org. uk