LETTINGSnews


HomeLet launches Rental Price Index


INDICES


TAXATION


Landlords fail to ensure tax efficiency


Buy-to-let mortgage specialist lender Paragon Mortgages is urging landlords to


Statistics from a new report on the private rented sector show that an increase in older


tenants in the UK is causing a major regional variation in rents. HomeLet has launched its own


Rental Price Index, the most detailed report on the sector to date and reveals information never seen before, including tenant age, demographics and actual rental prices in each UK region. The first report shows that the


average age of tenants has increased every year since 2008, mainly because potential first time buyers are unable to purchase their own home. Coupled with a decrease in the percentage of younger tenants, forced to stay at home for longer, means the average age of tenants


ACCREDITATION SAFEagent registration mark exceeds expectation


Launched only last month SAFEagent mark has already


generated nearly 500 registrations. The SAFEagent initiative has been launched ‘BY the industry FOR the industry’ and promotes a simple mark for the consumer to recognise denoting letting firms that protect both landlords’ and tenants’ money through Client Money Protection (CMP) schemes. Shelter is backing the scheme. “Shelter is supportive of the


SAFEagent scheme. Our research has found that one million private renters have been the victim of scams and we welcome any initiative that helps tenants to make safe choices when they are looking for private rented accommodation to avoid unscrupulous letting agents and landlords”, said a spokesman. Registered firms include Foxtons, Winkworth, Bushells and Young London. Nick Cooper, Chair of the SAFE


Steering Group said, “We are delighted that so many agents


have understood what we are trying to achieve and have already signed up to SAFE. It shows that there is clear demand for additional consumer protection and this new mark is already going a long way to satisfy it which is good news for our consumer launch later this year. SAFEagent marks a huge leap forward in the effort to eliminate the potential threat posed to consumers by ‘uninsured’ agents operating in the private rented sector without Government intervention.” www.safeagents.co.uk


has slowly gone up. This increase has also changed the dynamics of the type of properties being rented. More families renting have increased demand for larger properties. Where housing stock is readily available, for example the West Midlands, rental prices are increasing due to healthy competition between landlords. However, in those areas where there are fewer larger houses available, for example in the North West, people are forced to move out of the area – to those with larger properties to rent – therefore decreasing the amount of tenants, and also rental prices in the region. John Boyle, MD (pictured) said,


“HomeLet’s Rental Price Index offers a fascinating insight into the private rented sector, and this first release alone has highlighted a long-term


shift in the dynamics of the UK housing market. “The report,


which will now be released every month, is a first for


the lettings industry. It not only reveals the most in depth information on the sector, but also bases data on actual rental prices, rather than advertised costs – as used by other reports currently available. In addition, statistics are gathered from all our referenced applicants and letting agents. Combining these - around 37,000 referenced applicants (in May 2011) with over 3,000 letting agents – makes the HomeLet Rental Price Index by far the most robust and comprehensive lettings industry report in the UK.”


ensure they are fully tax efficient after research shows that many are failing to claim for the full range of tax allowances. Landlords can offset many of the costs incurred through letting property against their income, but many are unaware of the full range of costs they can claim. Paragon’s research shows that more than one in 10 landlords (13 per cent) are not claiming for mortgage interest, despite it being a major cost for landlords. Meanwhile, a third of landlords don’t claim management or letting agent fees, with 55 per cent of landlords not claiming for advertising costs incurred in letting their property. Paragon’s Tax Guide


(prepared in association with Perrys Chartered Accountants), which can be downloaded from www. paragon-mortgages.co.uk, helps landlords from purchase through to sale and provides comprehensive information on income tax, limited companies and Capital Gains Tax, in addition to the list of tax reliefs available to landlords and top tax tips. Nigel Terrington, Paragon


Group Chief Executive, says, “Good tax planning is key. How landlords implement, manage and run their tax affairs could have a major impact on landlords’ property investments and their overall performance. “Tax is a complex area and


we are confident that our Tax Guide will help landlords obtain a better grasp of tax matters. It’s vital that landlords take advantage of the allowances open to them to maximise their return on investment.”


PROPERTYdrum JULY 2011 43


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