Important Tax Information for Landlords

Important Tax Information for Landlords

Landlords are being warned to ensure that their tax affairs are in order as HMRC is ramping up its ongoing campaign to catch investors believed to be avoiding paying what is due on their rental properties.

The latest figures available (for 2013-14) state that HMRC inspectors collected more than £130m as a result of investigations into capital gains tax underpayments alone.

HMRC estimates that the number of landlords in the UK is around 1.5m, yet fewer than 500,000 are registered with HMRC as owning rental properties. Continue reading “Important Tax Information for Landlords”

The importance of using a Gas Safe registered engineer

The importance of using a Gas Safe registered engineer

A £10,000 fine and a suspended jail sentence was the punishment for a landlord who put the lives of his tenants’ at risk by carrying out his own illegal boiler maintenance at the flats he let out.

Vispasp Sarkari of North London was charged with a serious breach of safety regulations after a recent investigation by the Health and Safety Executive. Continue reading “The importance of using a Gas Safe registered engineer”

High number of new landlords unaware of letting regulations

High number of new landlords unaware of letting regulations

About one in 18 British adults now lets out a property to supplement their main income – but many are unaware of basic legal, health and safety regulations according to new research.

That means almost 500,000 landlords have not had their property checked by a gas safety engineer in the last twelve months, risking prosecutions and fines of up to £20,000.

Almost a third have had their property damaged at some point, which has cost them £1,200 on average to repair. Of those who have had property damaged, the main cause has been damage by tenants (44 per cent) followed by flooding (17 per cent) and storm damage (eight per cent).

The research, by LV= landlord insurance, claims that landlords receive £678 in rent each month on average, equating to nearly £28 billion a year across the private rental sector.

Approximately 60 per cent of this landlord income is spent on borrowing costs, management fees and maintenance costs, leaving landlords a healthy pre-tax profit of 40 per cent on average.

The trend is mainly being driven by people moving to a new home and then renting out their old one.

Around 55 per cent of these landlords are letting properties that they never intended to. Around one landlord in 19 says they ended up letting because they moved in with a partner and did not want to sell or couldn’t sell their own home.

Call us on 0114 2413430 for free advice on any lettings related issue or to book a free valuation.


Rightmove or Zoopla?

Rightmove or Zoopla? will soon be open for business offering a new property portal for buyers and tenants to search for property nationwide.

There is a catch however. Those agents who choose to use are contractually obliged to drop either Rightmove or Zoopla. Continue reading “Rightmove or Zoopla?”