Nottingham proposes yet another tax via licensing on landlords!

Well the bloke in a 1 bed furnished flat I rent out in Nottingham, better brace himself for the following.
1. Wear and tear allowance – gone!
2. Mandatory licence of £600 – (£50pcm), payable from rents received!
3. Section 24 additional tax of about £50pcm
4. Any projected interest rises on a mortgage £59,000, (currently £172 pcm, (let’s be kind and assume there won’t be any anymore)

On a current rent that hasn’t risen since 26/02/2010 of £352 and he’s on a disability pension and is aged 60.
That’s a rent rise of 58% just to stand still and to maintain my current rental profit.

Well done you moronic idiots in power, you just haven’t got a bloody clue.
All they can do is smell a cash cows backside and intend to ram their fist up it.
I shall now have it valued and see if I can place my baubles elsewhere.
As for the tenant, they might be lucky and discover a Travelodge that can house him.

Nobody should be surprised at this announcement. Local authorities up and down the Country are cesspits of mis management. Liverpool are so out of touch, that they want to increase Council tax and expect residents to vote for this. The reality is that Councils need to be taken into special measures . The Housing act needs to be urgently revisited and re drafted to prevent further abuse by these Authorities. With Respect to Local authorities, it is not landlords who are to blame for ASB, rather feckless tenants on benefits who have time to engage in such behaviour, The rest of the Population are simply too busy working and paying taxes to fund the housing benefit tenants as Landlords fund the Council honchos by paying for these stupid licence schemes. I urge the landlords of Nottingham to boycott this tosh, .Enough is Enough.

Every word is true. As a landlord (and a very good one too) our rents will just no option but go ballistic, for want of another descriptive phrase, just for us to stand still. If I were a tenant I would be screaming at the government by now. In fact I’d be marching on Government because this whole landlord/tenant situation is going to totally and utterly explode.

Reply to the comment left by “Larry Sweeney” at “16/11/2016 – 22:44“:

i will not have hb tenants

We need to be better organised during the “consultation” stage of these schemes. I have property in Liverpool. The scheme opened on 1 April 2015. I have just been called forward to apply for my licence. Processing the applications is so slow that they will probably not have done all the initial applications after 5 years when those who were licensed first will have to start to apply to be re-licensed. I am sure that the key is to write to Councillors, and local MPs. A few suggested points: local authorities already have ample powers to deal with ASB, and “rogue” landlords; those evicted for ASB will move out to other areas of the town taking the problem with them into previously well-behaved God-fearing areas outside the areas where licensing applies: those who are “guilty” of ASB are often very vulnerable people, who need help not persecution from LAs.
Is this an area where the Landlords Union could help with advice and coordination?

Michael Bond.

Reply to the comment left by “Gary Dully” at “16/11/2016 – 17:13“:

>Gary Dully

If you don’t mind, what do you think the flat is worth?

The Nottingham LHA rate is £90.90 per week for a 1 bed, which is a touch higher than the current rent, but not sufficient to support a 58% increase

In the post PRA mortgage regime, £352 rent supports a mortgage of £53k or so if my fag packet musings are correct

Reply to the comment left by “Gary Dully” at “16/11/2016 – 17:13“:

You appear to be profiteering from point 2.
£600 is for a 5-year license, so £10pcm, not £50pcm.

Reply to the comment left by “Michael Barnes” at “18/11/2016 – 00:42“:

Hello Michael, keeping me on my toes again I see.

I can see the error, but perhaps I should also add the fact that Ashfield Homes, the freeholder, have charged me for asbestos removals this year, also block maintenance and plan a whole modernisation scheme over the next 10 years.

That will definitely see the end of an LHA or UC tenant.

Which is an interesting accountants question as to whether it will be a revenue or capital expenditure, when billed through a freeholder for future upgrades looming.

The tenant has also decided that cannabis should be available for personal use and took out roof supports in the loft.

So I’m not sure of where I will be exactly profiteering from, but hey £550 quid a year ‘profiteering’ is the least of this tenants looming problems.

Reply to the comment left by “Jon Pipllman” at “17/11/2016 – 14:52“:

Hello Jon,
I used the tool advertised on this site for values the other day and it said minimum of £68,000 to £102,000 average £85,000.

So i will be happy with the average if a rent increase isn’t an option.

I haven’t visited the property in years, but it looks okay on google street view at the moment.

Reply to the comment left by “Gary Dully” at “18/11/2016 – 22:52“:

🙂