Prices softening according to Nationwide's HPI

Nationwide's House Price Index for August 2015 shows softening growth.

UK house prices increased by 0.3% in August, slowing the annual rate of growth to 3.2%.

Nationwide's Chief Economist,  Robert Gardner, commented:

“UK house prices increased by 0.3% in August, though the annual pace of house price growth edged down to 3.2% from 3.5% in July. The annual rate of price growth was the weakest since June 2013; this partly reflects the high base for comparison, since prices increased at a particularly strong rate in August 2014.

This month’s data provides further evidence that annual house price growth may be stabilising close to the pace of earnings growth, which has historically been around 4%.

“However, survey evidence cautions that this trend may not be maintained unless construction activity accelerates. Surveyors reported the lowest ever number of properties on their books in July new buyer enquiries picked up. "

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The importance of a pet clause

Why it's important to have a pet clause in rental contracts: http://t.co/vPRNzdybHm

— ES Homes & Property (@HomesProperty) August 31, 2015

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1 in 5 landlords might give up on BTL

According to a specialist landlord law firm, Access Legal, one in five landlords believe they will be “out of business due to government tax break cuts” announced by Chancellor George Osborne in his recent budget.

20 per cent of the 2,000 landlords who responded to a questionnaire said the changes to mortgage interest relief and wear and tear tax relief could force them to sell up.

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Gulf between salaries and house prices

Revealed: the widening gulf between UK salaries and house prices http://t.co/VS9z4iuH4l

— Guardian news (@guardiannews) September 2, 2015

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Newport HMO landlord fined £10,000

A HMO landlord from Newport, Wales has been fined £10,000. prosecuted for failing to licence her property and manage it safely, making it difficult to escape in case of a fire.

When inspected by environmental health officers, the unlicensed HMO was found insufficient lighting and blocked fire escapes.

Kaneeza Abid, admitted to 10 offences under the 2006 Management Regulations.

Abid was also handed the council costs of £1,229 plus a victim surcharge of £120.

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Gov. respond to petition against interest relief change

The Government have responded to the 24,000 strong petition against the removal of mortgage interest tax relief for higher tax payers.

The Government's response is -

The Government is committed to a fair tax system so is restricting relief on landlord property finance costs to the basic rate of tax, reducing the generosity for wealthier landlords.

The Government is committed to a fair tax system so is restricting tax relief landlords can claim on property finance costs to the basic rate of income tax.

Landlords are currently able to offset their mortgage interest and other finance costs against their property income, reducing their tax liability. This relief is not available for ordinary homebuyers and not available to those investing in other assets such as shares. Currently the landlords with the largest incomes benefit the most, receiving relief at their marginal tax rates of 40% or 45%.

By restricting finance cost relief available to the basic rate of income tax (20%) all finance costs incurred by individual landlords will be treated the same by the tax system. This recognises the benefits to the economy that investment in property can bring but ensures the landlords with the largest incomes will no longer benefit from higher rates of tax relief.

By unifying the treatment of finance costs for all individual landlords, the Government is reducing the distortion between property investment and investment in other assets, and reducing the advantage landlords may have in the property market over ordinary homebuyers.

Less than 1 in 5 (18%) of individual landlords are expected to pay more tax as a result of this measure. Taking account of the other measures from the Summer Budget, the Office of Budget Responsibility (OBR) have not adjusted their forecast for house prices. The OBR expect the impact on the housing market will be small. Furthermore, this change is being introduced gradually from April 2017 over 4 years. This will give landlords time to plan for and adjust to these changes.

Note - at 100,000 signatures, the petition will be considered for debate in Parliament

If you haven't already, sign the petition against the removal of mortgage interest tax relief for higher tax payers.

If you are unsure as to what the implications of the changes might be, read our latest article showing just what the loss of mortgage interest relief would mean for landlords.


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