LinK-UK

18/1/2018

The 12 month outlook for UK residential property prices and sales is more upbeat with Scotland, the North East of England and Northern Ireland seeing stronger activity, according to the latest industry survey.

While agreed transactions fell at a national level in December with sales flat or negative across the rest of the year, surveyors are more optimistic, the survey from the Royal Institution of Chartered Surveyors (RICS).

But there is unlikely to be a sudden improvement with sales expectations nationally remaining flat over the coming three months. However, signs of movement are there for a pick up during the year across all regions with London recording its first positive reading since last June.

Overall buyer interest edged lower in December with sales and new instructions falling. After new buyer enquiries came close to stabilising in November, 15% more respondents noted a decline in demand as opposed to an increase in the month of December.

The survey also found that there has not yet been much impact from the Government’s decision to abolish stamp duty for most first time buyers. Some 86% of respondents reported no response yet from first time buyers following the change.

The survey report points out that while this could be in part due to the time of year, respondents were also asked to consider the likely impact on the market over the coming months and 66% said it would have little impact whilst 12% felt it would result in higher overall activity.

In London, however, 48% envisaged not much response but a higher proportion of respondents compared to the national figure, 28%, did say the changes would increase overall market activity. The results for the wider South East are closer to the national picture.

Looking at supply, new instructions continued to decline nationally, extending a run of 23 months. Comments from respondents continue to emphasise the adverse impact this is having on the market. There is however a possible improvement on the horizon with 23% of contributors noting that appraisals were higher this December than last compared to 15% of respondents in November.

Looking at prices, the headline balance moved to +8% in December following a reading of zero in November. As such, this measure is now consistent with a marginal increase in prices nationally over the coming months. The three month price expectations series however remains negative at the national level, highlighting a lack of conviction surrounding the near term outlook.

In the lettings market, tenant demand continued to fall during December but the pace of decline eased somewhat from the previous report. Meanwhile new landlord instructions declined at a slightly faster rate. As a result, rental growth expectations were modestly positive for the three months ahead at a net balance moving to +9% from +4%.

‘The initial feedback from the market doesn’t suggest that the change in the stamp duty regime announced in the budget is going to have a material impact on activity. Indeed, the risk was always that a good portion of the benefit would be capitalised in the price, therefore limiting the benefit for the first time buyer,’ said Simon Rubinsohn, RICS chief economist.

‘Meanwhile, the latest RICS data continues to highlight the importance of disaggregating the headlines numbers when talking about the market. Challenges over affordability may have grown across the UK but they are clearly having a bigger impact in some parts of the country than others. This is clearly evident in the sales expectations figures which still remain in positive territory in more than half of the areas surveyed in the report,’ he added.

www.which.co.uk By Danielle Richardson

The coming year promises to bring some exciting developments for your personal finances – so make sure you don’t miss a single one by noting these key dates in your diary. From critical deadlines to exciting new products, it’s an ideal time to get yourself organised, and make sure you’re prepared for upcoming changes.

13 January – Open Banking launches The Open Banking platform will allow you to see all of your accounts (credit card, bank accounts and savings) in one place. The nine largest account providers will also open up their customers’ transaction data to third parties, if you’ve given them permission to do so. The aim is to encourage innovation and make it easier for you to compare and switch financial products. For more information, see our full guide on open banking This date also marks the end of HMRC accepting payment via personal credit cards. Individuals will no longer be able to pay their HMRC bills on credit, including for income tax, stamp duty, VAT and corporation tax – though corporate and business cards won’t be affected.

31 January – 2016/2017 self-assessment deadline This is the final deadline for online 2016-17 tax returns, so you’ll need to submit your self-assessment paperwork by midnight. The only exception is if HMRC issued the notice to make an online tax return after 31 October 2017, in which case you have three months from the date of issue. You also need to have made your first payment on account of tax 2017-18 by today.
If you file your tax return late, or fail to pay the tax you owe on time, you will probably face extra penalty fees and interest charges.

1 day late

£100 for one day after deadline

Up to 3 months late

£10 for each additional day (capped at 90 days), on top of £100 initial fine – maximum of £1,000

6 months late

Either £300 or 5% of the tax due (whichever is higher), on top of the penalties above

12 months late

An additional £300 fine, or 5% of the tax due, on top of above penalties. In the most serious cases, you may be fined 100% of the tax due – doubling your bill

1 February – removal of UC waiting period While the full roll-out of Universal Credit is set to continue until December, 1 February marks the removal of the seven-day waiting period. This means the time between applying and receiving your first payment will shorten to five weeks, rather than six.

1 March – annuities comparison rules come in In a new rule set out by the Financial Conduct Authority (FCA), today will see a more open process when it comes to shopping around for annuities. It was found that the majority of consumers fail to switch to existing providers when buying an annuity, despite better deals being available. To try and make people more aware of their options, the FCA has stated annuity providers must give customers prompts directing them to the Money Advice Service’s annuity comparison tool.

13 March – Spring Statement published Philip Hammond will publish the 2018 Spring statement today. Mr Hammond previously announced that the Autumn budget would be the only major fiscal event each year, so there are unlikely to be any major changes – but it’s still worth keeping abreast of what’s going on in the UK economy.

5 April – last day of 2017/2018 financial year It’s the last day of the 2017/18 financial year – a good time to tie up any loose ends. Today is the final deadline for claiming your PAYE tax refund for the 2013/14 tax year and for claiming tax overpaid for the 2013/14 tax year under self-assessment. What’s more, it’s also the final day to take advantage of your 2017/18 tax-free allowances if you have an Isa, Junior Isa, Lifetime Isa or a pension fund – although keep in mind that unused pension allowances may be able to be carried forward. You can save up to £20,000 before tax in stocks & shares Isas, cash Isas, innovative finance Isas, Help to Buy Isas and Lifetime Isas (split between them, if you have more than one Isa), up to £4,128 in a Junior Isa, and up to £40,000 with pension tax relief.

6 April – 2018/2019 financial year starts Happy new financial year! As the first day of 2018/19, you need to start gathering detailed documents for your 2017/18 tax return if you’re self-employed, or have income from property in the year ended 5 April 2017. It is also the deadline for transferring funds from a Help to Buy Isa to a Lifetime Isa if you don’t want that amount to count towards your £4,000 annual allowance. This could mean a healthier savings pot to use towards buying your first property, or retiring. Today will also see a number of tax changes take effect, as outlined in the November 2017 Autumn budget – from new income tax thresholds to reduced dividend tax allowance. For more details on what these changes are and how they might affect you, see the full list of every tax change due to take place this year.

17 April – March inflation figures released The inflation figures from March 2018 will be released today. This will be pertinent for anyone repaying a student loan, as it will form the basis of how the student loan interest rate is calculated from September 2018 – usually, it’s the March RPI figure plus 3%

31 May – P60s issued Employers must have distributed 2017/18 P60 documents issued to employees by today, having previously filed your payment information to HMRC in April. If your employers hasn’t provided you with this, follow it up. 6 July – Employees receive p11D Where applicable, copies of p11D documents should be issued to employees. These detail any taxable benefits – such as private health insurance – and reimbursed expenses, and are sent to HMRC to track benefits that are not included in your wages.

6 July – Employees receive p11D Where applicable, copies of p11D documents should be issued to employees. These detail any taxable benefits – such as private health insurance – and reimbursed expenses, and are sent to HMRC to track benefits that are not included in your wages.

31 July – Payment for 2017-2018 tax accounts due For those who filled in a self-assessment tax return, today is the deadline for the second payment on account for 2017-18 tax year. Don’t be late!

14 August – July inflation figures released Today will see the release of July’s inflation figures. These will dictate the cap on rail fare rises due to come in on 1 January 2019. Not all fares will rise in line with inflation – this year many rose below inflation. The cap also only counts for roughly 45% of fares in England, Scotland and Wales that are regulated – 55% will have no cap at all, and rises are decided by the train operating companies.

5 October – Self-assessment registration deadline If you become self-employed this year, or started receiving income from property, this is the deadline to register with the HMRC for self-assessment for the 2018/19 tax year. You should submit a form CWF1 for self-employment, or form SA1 for non-self-employed income.

16 October – September inflation figures released September’s inflation figures will be released today, which will affect state pensions from April 2019. The inflation rise in 2017 meant pensioners benefited from better rates – something that could be set to continue.

31 October – Paper tax return deadline It’s a big day – Halloween and the deadline for filing your paper self-assessment returns for the 2018/19 tax year. If you’re doing your tax return online, you still have plenty of time.

23 November – Black Friday sales Ready your bank cards and sharpen your elbows – it’s Black Friday. If last year was anything to go by, the likelihood is that retailers will have been cutting prices and giving special deals all week, but Friday is the biggest day for grabbing a bargain.

30 December – Tax return deadline for PAYE collection As you prepare for celebrations to see in 2019, don’t forget to get your affairs in order. Today is deadline for submission of self-assessment tax returns for the 2017-18 tax year if you want HMRC to collect tax through your PAYE tax codes – but this is only applicable if you owe less than £3,000.

www.which.co.uk – By Stephen Maunder

Energy, taxation and lending reforms could hit profits

Whether you’re a first-time landlord or a seasoned investor, you may have struggled to keep up with the raft of reforms in the buy-to-let sector last year. But don’t worry, we’re here to help. Which? explains the 12 key things you’ll need to be aware of in 2018 as the government continues to shake up the property investment landscape.

1. Ombudsman scheme to be launched Landlords will soon need to register with a redress scheme to solve tenancy disputes. In October, communities secretary Sajid Javid announced plans to make all landlords join an ombudsman scheme that will offer legally binding resolutions to disputes between landlords and tenants. At this stage, it’s unclear whether the government will extend the scope of an existing body or launch a new one – so keep an eye out.

2. Energy efficiency changes Energy Performance Certificates measure how energy-efficient your home is. From April, rental properties will need to achieve a minimum rating of E. Initially, this will apply to new tenancies and renewals, before being extended to all existing tenancies by 2020. Landlords could face cumulative fines of up to £5,000 for breaches such as providing false information, failing to adhere to compliance notices or renting properties that don’t meet the new regulations.

3. Letting fees ban In November, the government introduced a draft bill to parliament to ban letting agents from charging fees in England. The proposed ban was originally announced in November 2016. At this stage, it looks likely to come into force at some point in 2018. The draft bill proposes banning letting agents from charging tenants a fee to rent a property, capping holding deposits at no more than one week’s rent and capping security deposits at six weeks’ rent.

4. Landlord licensing While a UK-wide licensing system has been debated, it’s currently up to councils whether landlords are obliged to sign a code of practice. Some permits only apply to landlords letting HMOs (larger buildings rented to five or more people), while others are compulsory for all landlords in an area. Around 300 councils either have some form of scheme or are consulting on the introduction of one, so check your local council’s website to see if you’ll be affected. Some of the largest fines in 2017 were brought against landlords in Wales (£4,000) and Dagenham (£2,000).

In a separate announcement last week, the government put forward proposals to inspect rental properties every three years and introduce accreditation and refresher courses for landlords.

5. Rogue landlord database A new database of rogue landlords and letting agents will be launched in England in the spring, provided it is approved by parliament early this year. From April, the database will name and shame landlords who have been banned from letting properties. It’s not yet clear if this database will be available to the public.

6. Right to Rent Right to Rent legislation came into force in February 2016, and requires that landlords check whether their tenants have the right to live in the UK. A total of 106 landlords were charged for breaching Right to Rent rules in 2016 – with fines totaling around £30,000. If you use a managing agent, they should conduct these checks on your behalf.

7. Affordability changes for portfolio landlords At the end of September, tougher lending restrictions for portfolio landlords came into force. Landlords with four or more properties now need to show full financial information for each property in their portfolio when applying for new finance, rather than simply providing their top-line profits. As well as increasing the amount of time it takes to borrow additional funds, these changes could see landlords with heavily mortgaged portfolios getting turned down for new loans.

8. Cuts in mortgage interest tax relief The gradual tapering of how much mortgage interest landlords can deduct when calculating their tax bill will continue in 2018. Currently, landlords can only offset 75% of their mortgage interest, and this will drop to 50% from April. This level will continue to reduce until it hits zero in 2020, when it will be replaced by a tax credit worth 20% of mortgage interest.
9. Mortgages could get more expensive In the last week or two, lenders have been cutting rates on buy-to-let mortgages – but this season of goodwill is set to be short-lived. This is because two major sources of funding for buy-to-let lending are set to close soon. The Funding for Lending Scheme (launched in 2012 to encourage banks to lend) ends this month, while the Term Funding Scheme (which lends to banks at the base rate) closes in February. The imminent closure of these schemes – coupled with a possible further base rate increase – could push up buy-to-let mortgage rates from long-term lows.

10. Yields dropping on investment properties According to data from Your Move, the average rental yield in England and Wales in October was 4.4%, down from 4.8% a year earlier. With capital growth also taking a hit in some parts of the country, landlords could face smaller profits in 2018.

11. Stamp duty surcharge remains More than 18 months on from the controversial introduction of a 3% stamp duty hike for landlords, the tax remains a hot topic in the buy-to-let sector. The 3% surcharge means that landlords buying a home for £200,000 need to pay £7,500 in stamp duty – compared to £1,500 before the changes. While this is nothing new, it’s vital to factor this into your calculations, especially when you consider how other regulations could put a squeeze on your profits.

12. Leasehold scandal set to continue If you’re investing in a new-build home, you’ll now need to pay greater attention to its tenure. The growing scandal of new-build houses being sold as leaseholds with punitive ground rent clauses developed throughout 2017, and the government is now taking action. In December, plans were announced to ban new-build leasehold houses and make it easier for current leaseholders to buy their freeholds. While this might seem to be an issue for owner-occupiers, landlords who have purchased leasehold properties to let out are also likely to have been affected.

The year is now drawing to a close, so now is the time for us to start to review what has happened and take a look at what we might expect to see in the New Year.

In a year when we started to see the real effects of Brexit rather than the theoretical and imagined consequences, we also saw the British government enact one of the worst gambles in contemporary British history, losing their majority in the summer.

In contrast, property had another successful year, even though the government had already enacted legislation increasing taxes on landlords and announced the abolishment of tenant fees.

House price growth

What can expect from house prices in 2018? House price growth in 2017 was modestly impressive, with increases of roughly 2% over the course of the year reported by Rightmove.

It is predicted that house prices will grow by up to 3% next year, with particular success in homes typically bought by first time buyers.

In addition to growth in the capital value of homes, rental growth is also expected to grow over the next 12 months as supply and demand largely remains the same.

Inflation/wage growth

Inflation this month, announced by the Office for National Statistics, has been reported at 3.1% which is the highest rate for some time. The cost of living appears to be raising quickly, thought to be mainly contributed to by Brexit, but are wages able to keep pace?

It doesn’t look good, with the Chancellor announcing in his budget that it will not be until 2021 that we see a return to the wage growth of the years before the 2008 financial crisis, marking a 13 year stagnation.

With this in mind, it is unlikely that the number of young buyers is going to increase significantly without extra support, and so landlords investing in either residential or off-plan can remain confident that the demand for rented properties will remain high and so too the pressure on rent rises.

Stamp Duty

With Philip Hammond announcing the abolition of stamp duty for first time buyers, it is likely that the government will plough significant resources into the first time buyer market. Politically, the Tories can ill-afford to take young voters for granted anymore and many expect to see this made a priority.

House building and government incentive schemes will be plentiful and this could well kick-start further building. Off-plan property is still booming, and the increase in activity will likely see high demand from renters.

Landlords investing in the UK should expect high demand this year with solid yields and good rental growth.

JENNY PRIESTLEYDEC 15, 2017

A new report from think tank ResPublica is calling on the government to encourage Channel 4 to move to Salford.

Escape Velocity: Growing Salford’s Digital and Creative Economy, says Salford needs to be made the new “default option” when it comes to investment in the digital and creative industries.

“The cluster on the Quays remains vulnerable to multiple forces that – if not actively checked by local, regional and central government – threaten its continued growth and success” said the report.

“This is partly due to London’s abiding ability to drain talent and capital from the rest of the country.”

ResPublica argues that relocating Channel 4’s operations to Salford would add to the existing ecosystem of firms and skills and build further growth.

According to the research, £1 billion has been invested into the immediate MediaCityUK site between 2007 and 2014 and the 30,000 jobs at Salford Quays, across all sectors, represent a quarter of all employment in Salford.

“MediaCityUK exemplifies the kind of industrial strategy – rooted in both sector specialisation and place – that the Government is committed to pursuing. It demonstrates how to enable a focused approach to the formation of innovative clusters at the local level. Furthermore, it shows how hubs can gather momentum and achieve ‘escape velocity’ – breaking away from London’s gravitational pull,” the report said.

By Holly O’Rourke / 12:04, 3 NOV 2017

Airbnb has seen tremendous demand in the North West. Airbnb hosts in the region welcomed 325,000 guests into their homes last year, that is a 116% growth from last year.

Airbnb guests are generating £146m income to the region and hosts are struggling to keep up with the high demand.

To give you an idea of what you could earn, a two bedroom property in central Manchester can generate £2,300 a month. While this is very attractive income, it also takes time to manage guest communication, check-ins, cleaning and changing linens. Particularly challenging is to turn around your property between guests in a short time span can be a lot to take on.

Now, there is a solution for this! Many hosts are now choosing to let somebody else take care of the hard work. We came across an innovative new company called Pass the Keys that is making it easy to be an Airbnb host. The company works in 10 cities in the UK, among them Manchester.

Advisors can help you to get your property online, take good photograph, list and advertise your property on the relevant portals including Airbnb, handle the bookings and check-ins of guests, and make sure your property is cleaned professionally. Plus, the team at Pass the Keys offers 24/7 support for in-stay guests, so you don’t have to worry about a thing!

Many hosts are taking advantage of the service. IT consultant, James, is a two bedroom property owner in M4 postcode. He sees short letting as an awesome opportunity to maximise the value of his Manchester property, and started using Pass the Keys since March 2017.
“I often travel for work and leave my home vacant for approximately 3 months a year. This year I tried short letting it with Pass the Keys and it has been great. They advertise my flat on Airbnb, manage guest check-ins and do the cleaning afterwards. It’s very hands off and I get a nice additional income, allowing me to pay back my mortgage a little faster.”

The service is a also popular among buy-to-let investors who have invested heavily in Manchester the past couple of years. With many living outside of Manchester, hands-off Airbnb rentals are a popular way to bridge the time between tenants.

Talking to Pass the Keys, they gave us the top 5 suggestions to maximise your earnings in Manchester;

Make your apartment or house available during popular times – may it be football or concerts in the city know when they are on and rent our pad out.
Tidy up and remove personal belongings so guests feel welcome in your space!
Fresh linen, towels and toiletries – make travelling easy and ensure everything is there!
Ensure you have the essentials – hair dryer and iron may not be high on your list, but key to attract business travellers
Add a personal touch – a map with your favourite places in the neighborhood goes a long way.
If you are keen to learn how much you can earn on your rental, visit Pass the Keys website and enter your postcode, number of bedrooms into their earnings calculator and find out!

By Isabelle Fraser

15 OCTOBER 2017

In the crucible of the 2008 financial crisis, a burgeoning – and unlikely – property company was taking shape. Zoopla occupied a warehouse in Acton and, in keeping with the stereotype of upstart tech companies, had a ping-pong table for its 15 employees.

As the company grew and it moved offices, a ping-pong table was always installed in pride of place. In its current office, the table is emblazoned in purple Zoopla livery, embellished with the ubiquitous “Z” logo.

Alex Chesterman, the company’s founder, has overseen one of the fastest-growing British tech businesses of the past decade. Few could have predicted what the listings website might become at the time of its founding, when house prices had tumbled and the property market ground to a halt. But not so the confident Chesterman. “I put the business plan together and raised the first funds in 2007, just before the crisis,” he recalls. “In 2008 when I was looking to raise more funds, I would say: ‘It’s for a property business in the UK.’ People did look at me like I was a little bit crazy.”

Fast-forward almost 10 years and Zoopla, a property marketing website, has become ZPG (Zoopla Property Group), a one-stop shop behemoth for consumers looking to buy a home, get a mortgage or change energy suppliers, among many other services. Chesterman has done this by building businesses in-house and making acquisitions of proptech and fintech start-ups, snapping up 15 companies, such as uSwitch and Money.co.uk, and bringing them under ZPG’s wing.

“If you go back and pull out our original business plan from nine years ago, the business today very much reflects exactly what our vision was,” Chesterman claims. “It was always our idea that what we wanted to do was help people around that property journey and life cycle and not just help them find their next home but effectively manage it.”

In 2014, the company floated, earning Chesterman around £32m, while Daily Mail and General Trust, which now owns around 30pc of shares in the company, pocketed £130m from the IPO. Last year, ZPG made a pre-tax profit of £46.2m, up from £33.6m in 2015.

But the expansion has not been without its hiccups: ZPG overcame a threat from the Competition Commission when it merged in 2012 with FindaProperty.com. More recently it lost property listings as another upstart portal, OnTheMarket, said that its estate agent customers had to choose between listing on Zoopla and the other main property portal, Rightmove. It is often compared to its rival, but ZPG represents a completely different proposition.

“If you go back five years, 100pc of our business was in digital property marketing,” says Chesterman. “Today that’s about 25pc. We’re an incredibly well-diversified business.”

This means that it brings eyeballs to the site and its services: when someone might nosily click on to Zoopla to check out a neighbour’s house price, they may also decide to change energy or broadband supplier. But it also means there is less risk; it can better weather any potential storms.

The property portals are also far removed from the volatile markets that they serve, because they rely on revenue from listings, not sales. Zoopla has existed during a period of relatively modest levels of property transactions, and this side of the business has continued to grow despite there currently being the lowest number of homes for sale on record. “No one area of our business accounts for more than 20pc, for example, and no one customer accounts for 1pc,” he says. “There’s less that can go wrong.”

There is one thing that might give him some sleepless nights, however: Jeremy Corbyn. The Labour leader’s plan to renationalise the energy industry, says Chesterman, is “not great for a business like ours that is championing competition and the lowest prices for consumers … a lot of talk like that makes a good political sound bite,” he says, “but the outcome is not good for consumers.”

Chesterman charts ZPG’s expansionism with the ability to locate and solve “pain points”. “If you go back 20 years, looking for a property meant visiting 12 high street branches or looking at newspapers. That pain point has been completely solved by putting them all under one roof with all the associated data.” That even includes the favoured newspaper of a potential new neighbourhood, as well as nearby schools and broadband speeds.

Earlier this year the company acquired Trussle, an online mortgage broker, which attempts to cut out the leg work and paper-heavy application process by using an algorithm; it also snapped up Hometrack, a property data analytics firm, and it’s in this data that Chesterman sees much of the future of proptech.

“We take a long view of how the world might change,” he says. “We don’t necessarily have to know the answer or know where the market is going, but what’s interesting is asking will we still be doing things in that same way as we’re doing them now in 10 years, or is that a space that is likely to be innovated around and disrupted?”

ZPG, despite being worth a little under £2bn and employing 1,000 people, still acts and thinks of itself as a start-up, nimble on its feet. The office is a testament to that: every area is based around a room in the house, with meeting rooms set up as a mock sauna and a bathroom, the tabletop resting on a rolltop bath. Chesterman is cagey about what he is targeting for the next acquisitions, but warns that “we’re not done”, while also hinting he could be tempted into other countries.

http://www.businesstimes.com.sg/ CHAI HUNG YIN

FRAGRANCE Group Limited has set up a wholly owned subsidiary in the United Kingdom as a property investment holding company, and acquired The Townhouse Hotel in Manchester, UK, for £12.5 million (S$21.9 million).

The new unit, called Fragrance UK-Manchester Limited, has a paid-up capital of £1 million, the group said in a Singapore Exchange filing on Monday.

The property, located at 101 Portland Street, was constructed in 1870 and has a grand facade which remained largely unchanged when it was converted into a hotel in 1982. The Townhouse underwent an extensive refurbishment programme in 2010 to transform it into a four-star boutique hotel.

The 85-bedroom property is located in the heart of Manchester City Centre. The Manchester Art Gallery and the Palace Theatre can be reached in less than five minutes’ walk, while the Manchester Piccadilly Railway train station is just a 10-minute walk away. In addition, the property is a 15-minute drive from the Manchester airport.

When one Bristol tenant complained about a mould problem, her landlord told her she was “breathing out too much”

With over 80,000 households renting in Bristol, a lot of people have experienced the testy relationship between a tenant and landlord.

So, it may come as no surprise that a recent study has revealed just how many unhappy renters there are out there with almost half of UK tenants admitting to having fallen out or argued with their landlord in the past.

It also seems there are common complaints or issues that have people dialling their landlord.

The top five reasons for calling landlords include damaged windows (66 per cent), permission to decorate (49 per cent), broken appliances (46 per cent), blocked plug/toilet (44 per cent) or a dirty property (33 per cent).

Figures show, when it comes to problems within the home, people in the UK are not afraid to pick up the phone even for the most unusual of requests.

The research by LightbuilbsDirect also revealed some of the more unusual requests landlords had to put up with, including being asked to unblock toilets and even clean their home.

Some have even reported asking for help hanging photos on the wall, tightening screws on a door frame or moving furniture around the property.

But reports of landlords refusing to help tenants with problems are not rare either. One renter Lauren was told by her landlord that she was “breathing out too much” when she told them about damp issues in the house.

Part of her deposit was then taken to paint over the mould when she decided to move out.

A huge 89 per cent of people said they would consider moving out of their home if they did not have a good relationship with their landlord, shockingly 18 per cent of tenants described their landlords as unapproachable.

When it comes to disagreements, it may come as no surprise that the younger you are the more likely you are to fall out with your landlord.

Between 65-66 per cent of 18 to 34 year olds are had arguments with their landlords in the past compared with only 34 per cent of people aged 65 and over.

By Marc Da Silva

A number of buy-to-let landlords are turning their attention to student housing, which is regarded by many property investors as a serious and lucrative asset class.

Successful landlords increasingly own student properties as part of their portfolio, as do big institutions, including insurers Aviva and Legal & General.

With Universities lacking the funds required to build or maintain their own housing, there is a severe shortage of student accommodation across many parts of the UK, and this has helped to push up rents in the sector.

“There’s a real buzz about student accommodation right now,” said property solicitor Lisa Evans from Kirwans law firm. “With 2.28 million students studying at UK higher education institutions between 2015-2016, there’s clearly a huge market for this type of property.

She added: “Students needs have changed over the years, and landlords need to be aware of this. For example, while I had a typewriter at university and shared a bathroom with 13 others, many students now expect free wi-fi and en-suite bathrooms.

“As with any financial venture, it’s vital to do your homework first in order to ensure that your investment doesn’t leave you worse off.”

Here are nine things about investing in student property that Evans believes every landlord should consider:

1) There are increasing ways to invest

In times gone by, investing in student accommodation typically meant buying a property, gaining a house in multiple occupation (HMO) licence, and renting out each individual room, usually with decent yields.

But as the UK’s student population has increased, so have the range of investment options on offer. While HMOs are still a big draw, purpose built student accommodation (PBSA) is also attracting a lot of interest.

Investors reportedly ploughed a total of £3.1bn into the PBSA market last year, with industry giants Knight Frank revealing an increase in terms of the number of foreign investors purchasing purpose built student property.

A 2016 report by specialist energy provider Glide Utilities revealed that, when it came to this type of property, more than half of UK students wanted accommodation that included all utility bills, and expected broadband internet and energy prices to be included in the rental rate.

Over half of students wanted to be as close as possible to their university campus, and around 30% expected good transport links. One third of those questioned saw en-suite bathroom facilities as an absolute must – a fact worth knowing when you’re about to invest thousands.

2) Do your sums

The introduction of various pieces of legislation over the past 18 months has made it harder to get a good return from rental property. Investors now have to pay a 3% stamp duty surcharge on any property, or part of a property, which could be classed as a second home.

In addition, landlords can no longer claim tax relief on 100% of their mortgage interest. Prior to April of this year, a landlord whose rental income was £10,000 but who paid £9000 in interest on their mortgage were taxed at their usual rate on only their profit of £1000.

However, interest tax relief is now being cut back, with landlords currently able to offset only 75% of their mortgage – a figure that will fall to 50% next year, 25% in 2019, then in 2020, none of their mortgage interest will be tax deductible. Instead, they will have to pay tax on their total income, before claiming a 20% tax reduction.

In addition, the general ‘wear and tear’ tax relief of 10% that landlords were previously entitled to automatically deduct from their tax bill has also changed, with landlords now only allowed to claim tax relief on repairs and replacements they have actually paid for.

3) Understand your obligations

There are a number of crucial health and safety obligations that all landlords must adhere to.These include;

Having the correct insurance policies in place such as public liability, contents and buildings insurance;

Carrying out a fire risk assessment and insuring that the property has the requisite number of fire doors, fire exits and fire extinguishers. The Residential Landlords Association (RLA) has published a helpful guide on fire safety legislation that makes for important reading, while Merseyside Fire Brigade’s checklist for student landlords is also extremely helpful. It is also now strongly advised to install sprinkler systems in properties.

Making sure that there are no inherent risks on the property that can cause injuries;

Mounting handrails along the full length of the stairwells with the correct lighting fitted, and installing emergency lighting at the property; while there is no absolute obligation under the Occupiers’ Liability Act 1957 to do this, it would be best practice and advisable to do so;

Ensuring that the windows and doors meet the correct safety standards;

Making sure that the property is fit for human habitation (Landlord and Tenant Act 1985, Section 10).

Also, don’t forget to factor in the cost of fitting smoke and carbon monoxide alarms – or you could face a £5,000 fine.

While extensive, this list is by no means exhaustive. Specialist legal advice should be taken before renting out your property to ensure you have met all your legal obligations.

4) Location is everything

If you’re buying a student property purely for investment purposes rather than because you’re tied to a particular city or town, then it’s important to do your research on which areas offer the best yields.

Industry reports are regularly published on the top performing towns for student rental yields – the most recent of from Simple Landlords Insurance placing St Andrews in Scotland, Lancaster and Loughborough in the first three places on the league table.

Choose a town or city in which student accommodation is highly sought after, then look into which properties, in which streets, tend to get snapped up first. Local specialist student letting agents should be able to help you with this.

Naturally, the university needs to be nearby, but equally important is the property’s proximity to student nightlife, whether that’s located on campus or in the town.

5) Check which licence you’ll need from your local council

Various areas are subject to the Selective Licensing Scheme, which requires that all private landlords must hold a licence for each of their rented properties.

Prospective landlords will be asked to declare any convictions for dishonesty, violence, or drug-related offences, or breaches of housing or landlord and tenant laws.

The licence can cost several hundred pounds, although some councils do offer discounts for additional lets, and punishments for failing to sign up to the scheme can be harsh; last October a Liverpool landlord was fined £1000 for failing to sign up to Liverpool Council’s Landlord Licensing Scheme, and ordered to pay the council’s legal costs.

However, if your property is let to at least three tenants who form more than one household and who share a toilet, bathroom, or kitchen facilities, then you may need an HMO licence instead. It’s best to contact your local council to make sure you apply for the correct licence.

6) Make it easy on yourself

Look for easily maintainable property – the newer the better – which will require less spend on updating and repairs, and search for three-or-four bedroomed options which tend to be highly popular among student groups.

Student properties can be heavily exposed to wear and tear, so go for durable surfaces and furnishings over aesthetics to avoid eating into your profits by shelling out on replacements.

7) Seek specialist advice on contracts

You might want to think about using a joint tenancy agreement for the whole group, rather than an individual agreement with each tenant. Then, if someone leaves the house, you won’t need to worry about how you’ll make up the shortfall.

Many student landlords also stipulate that each student tenant should have a guarantor to ensure that payments are met. Speak to a solicitor for specialist advice.

8) Market your property

You could have the best property in town, but if it’s not being marketed, potential students won’t even know it’s there. Find out if local universities compile directories of accredited private student accommodation in the area and, if so, make sure you’re in them. You might even want to invest in advertising on social media which can prove extremely effective in reaching students.

9) Have a long-term plan in mind

Do you plan to build a property portfolio and pass it on to your children when you retire? Or maybe you hope to eventually sell your property and use the equity as your pension. Whatever your plan, you’ll need to think strategically, so check out the financial health of the university you wish to provide for and look for any red flags over its own future as, if the institution goes bust, there’s a good chance your investment will too.

Decide at what point you wish to sell the property, and the sort of return you hope to see. Having these ideas mapped out at the start will help you to stay focused on your reasons for becoming a landlord in the first place, and will stop you from spending on the property unnecessarily.