Property118 Ltd understands that your privacy is important to you and that you care about how your personal data is used and shared online. We respect and value the privacy of everyone who visits this website, www.property118.com
(“Our Site”) and will only collect and use personal data in ways that are described here, and in a manner that is consistent with Our obligations and your rights under the law.
- Definitions and Interpretation
In this Policy the following terms shall have the following meanings:
||means an account required to access and/or use certain areas and features of Our Site;
||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;
||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;
||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and
||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- Information About Us
- Our Site is owned and operated by Property118 Ltd, a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- Our VAT number is 990 0332 34.
- Our Data Protection Officer is Neil Patterson, and can be contacted by email at email@example.com, by telephone on 01603 489118, or by post at 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- What Does This Policy Cover?
- Your Rights
- As a data subject, you have the following rights under the GDPR, which this Policy and Our use of personal data have been designed to uphold:
- The right to be informed about Our collection and use of personal data;
- The right of access to the personal data We hold about you (see section 12);
- The right to rectification if any personal data We hold about you is inaccurate or incomplete (please contact Us using the details in section 14);
- The right to be forgotten – i.e. the right to ask Us to delete any personal data We hold about you (We only hold your personal data for a limited time, as explained in section 6 but if you would like Us to delete it sooner, please contact Us using the details in section 14);
- The right to restrict (i.e. prevent) the processing of your personal data;
- The right to data portability (obtaining a copy of your personal data to re-use with another service or organisation);
- The right to object to Us using your personal data for particular purposes; and
- If you have any cause for complaint about Our use of your personal data, please contact Us using the details provided in section 14 and We will do Our best to solve the problem for you. If We are unable to help, you also have the right to lodge a complaint with the UK’s supervisory authority, the Information Commissioner’s Office.
- For further information about your rights, please contact the Information Commissioner’s Office or your local Citizens Advice Bureau.
- What Data Do We Collect?
- Date of birth;
- Address and post code;
- Business/company name and trading status;
- Number of properties owned;
- Accountants details;
- Contact information such as email addresses and telephone numbers;
- Proof of residence and ID;
- Financial information such as income and tax status;
- Landlords insurance renewal dates;
- Property Portfolio details such as value and mortgage outstanding;
- How Do We Use Your Data?
- All personal data is processed and stored securely, for no longer than is necessary in light of the reason(s) for which it was first collected. We will comply with Our obligations and safeguard your rights under the GDPR at all times. For more details on security see section 7, below.
- Our use of your personal data will always have a lawful basis, either because it is necessary for our performance of a contract with you, because you have consented to our use of your personal data (e.g. by subscribing to emails), or because it is in our legitimate interests. Specifically, we may use your data for the following purposes:
- Providing and managing your access to Our Site;
- Supplying our products and or services to you (please note that We require your personal data in order to enter into a contract with you);
- Personalising and tailoring our products and or services for you;
- Replying to emails from you;
- Supplying you with emails that you have opted into (you may unsubscribe or opt-out at any time by the unsubscribe link at the bottom of all emails;
- Analysing your use of our site and gathering feedback to enable us to continually improve our site and your user experience;
- Provide information to our partner service and product suppliers at your request.
- With your permission and/or where permitted by law, We may also use your data for marketing purposes which may include contacting you by email and or telephone with information, news and offers on our products and or We will not, however, send you any unsolicited marketing or spam and will take all reasonable steps to ensure that We fully protect your rights and comply with Our obligations under the GDPR and the Privacy and Electronic Communications (EC Directive) Regulations 2003.
- You have the right to withdraw your consent to us using your personal data at any time, and to request that we delete it.
- We do not keep your personal data for any longer than is necessary in light of the reason(s) for which it was first collected. Data will therefore be retained for the following periods (or its retention will be determined on the following bases):
- Member profile information is collected with your consent and can be amended or deleted at any time by you;
- Anti-Money Laundering information and tax consultancy records are to be kept as required by law for up to seven years.
- How and Where Do We Store Your Data?
- We only keep your personal data for as long as We need to in order to use it as described above in section 6, and/or for as long as We have your permission to keep it.
- Some or all of your data may be stored outside of the European Economic Area (“the EEA”) (The EEA consists of all EU member states, plus Norway, Iceland, and Liechtenstein). You are deemed to accept and agree to this by using our site and submitting information to Us. If we do store data outside the EEA, we will take all reasonable steps to ensure that your data is treated as safely and securely as it would be within the UK and under the GDPR
- Data security is very important to Us, and to protect your data We have taken suitable measures to safeguard and secure data collected through Our Site.
- Do We Share Your Data?
- We may share your data with other partner companies in for the purpose of supplying products or services you have requested.
- We may sometimes contract with third parties to supply products and services to you on Our behalf. Where any of your data is required for such a purpose, We will take all reasonable steps to ensure that your data will be handled safely, securely, and in accordance with your rights, Our obligations, and the obligations of the third party under the law.
- We may compile statistics about the use of Our Site including data on traffic, usage patterns, user numbers, sales, and other information. All such data will be anonymised and will not include any personally identifying data, or any anonymised data that can be combined with other data and used to identify you. We may from time to time share such data with third parties such as prospective investors, affiliates, partners, and advertisers. Data will only be shared and used within the bounds of the law.
- In certain circumstances, We may be legally required to share certain data held by Us, which may include your personal data, for example, where We are involved in legal proceedings, where We are complying with legal requirements, a court order, or a governmental authority.
- What Happens If Our Business Changes Hands?
- How Can You Control Your Data?
- In addition to your rights under the GDPR, set out in section 4, we aim to give you strong controls on Our use of your data for direct marketing purposes including the ability to opt-out of receiving emails from Us which you may do by unsubscribing using the links provided in Our emails.
- Your Right to Withhold Information
- You may access certain areas of Our Site without providing any data at all. However, to use all features and functions available on Our Site you may be required to submit or allow for the collection of certain data.
- How Can You Access Your Data?
You have the right to ask for a copy of any of your personal data held by Us (where such data is held). Under the GDPR, no fee is payable and We will provide any and all information in response to your request free of charge. Please contact Us for more details at firstname.lastname@example.org, or using the contact details below in section 14.
- All Cookies used by and on Our Site are used in accordance with current Cookie Law.
- Before Cookies are placed on your computer or device, you will be shown a cookie prompt requesting your consent to set those Cookies. By giving your consent to the placing of Cookies you are enabling Us to provide the best possible experience and service to you. You may, if you wish, deny consent to the placing of Cookies; however certain features of Our Site may not function fully or as intended. You will be given the opportunity to allow only first party Cookies and block third party Cookies.
- Certain features of Our Site depend on Cookies to function. Cookie Law deems these Cookies to be “strictly necessary”. These Cookies are shown below in section 13.5. Your consent will not be sought to place these Cookies, but it is still important that you are aware of them. You may still block these Cookies by changing your internet browser’s settings as detailed below in section 13.9, but please be aware that Our Site may not work properly if you do so. We have taken great care to ensure that your privacy is not at risk by allowing them.
- The following first party Cookies may be placed on your computer or device:
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- Our Site uses analytics services provided by Google Analytics and Facebook. Website analytics refers to a set of tools used to collect and analyse anonymous usage information, enabling Us to better understand how Our Site is used. This, in turn, enables Us to improve Our Site and the products AND/OR services offered through it. You do not have to allow Us to use these Cookies, however whilst Our use of them does not pose any risk to your privacy or your safe use of Our Site, it does enable Us to continually improve Our Site, making it a better and more useful experience for you.
- The analytics service(s) used by Our Site use(s) Cookies to gather the required information.
- The analytics service(s) used by Our Site use(s) the following Cookies:
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- In addition to the controls that We provide, you can choose to enable or disable Cookies in your internet browser. Most internet browsers also enable you to choose whether you wish to disable all cookies or only third party cookies. By default, most internet browsers accept Cookies but this can be changed. For further details, please consult the help menu in your internet browser or the documentation that came with your device.
- You can choose to delete Cookies on your computer or device at any time, however you may lose any information that enables you to access Our Site more quickly and efficiently including, but not limited to, login and personalisation settings.
- It is recommended that you keep your internet browser and operating system up-to-date and that you consult the help and guidance provided by the developer of your internet browser and manufacturer of your computer or device if you are unsure about adjusting your privacy settings.
- Contacting Us
12:36 PM, 14th December 2022, About 6 months ago
It's not just the mortgage rates. Other surveys by other organisations e.g. Zoopla have shown that rising rents are driven by new tenancies. Typically landlords don't put rents up by much for existing tenancies.
This is going to be made worse by the proposed EPC changes if they apply to existing tenancies. There's a lot of risk for a landlord in doing significant works whilst a tenant is in a property. So what will happen if EPC changes apply to existing tenancies is that tenants will be evicted in order to get the work done. Then the properties will either be (1) rented out at a higher rent (2) sold to another investor who will rent out at a higher rent or (3) sold to an owner occupier.
If (3) happens then this will increase the problems with supply that are also driving rents up.
This is actually a problem with the tax system and the rent rises are a direct result of government policy.
13:26 PM, 14th December 2022, About 6 months ago
It's not just higher mortgage interest, but under s24 the higher the mortgage interest the more tax you pay. You couldn't make it up could you
13:32 PM, 14th December 2022, About 6 months ago
I really don't understand how they have worked out £250 extra mortgage interest.
It is simpler to understand per every £100K of borrowing.
My mortgage rate went up from 2% to 6.5%.
£6.5K interest per £100k borrowing
On my 300k borrowing means £19.5k instead of £6k interest = 13.5k extra.
Per month £1,125 extra per month!
13:34 PM, 14th December 2022, About 6 months ago
That's correct. So if you have a 60-80% BTL mortgage then you own 40-20% of the property and the bank owns the rest. The bank takes no risk and is often your biggest cost; as a landlord you take *all* the risk. So if that cost/risk goes up significantly then you've no option but to raise rents. And the fact that you are unable to deduct the finance costs from your taxes mean that you have to raise rents rapidly to protect your investment.
But it's worse than that because many of the costs that are imposed on you to improve your EPC rating are classed as capital expenditure, not operating expenditure. And there's even more risk if you do the work whilst a tenant is in your property.
So your best option is to evict your tenant do the work and put the property back on the market at a much higher rent. And that's not a situation you created as a landlord; it's tax policy. If you look at the rental increase figures you can see that they are disproportionately affected by new tenancies.
Mark Alexander - Founder of Property118
13:40 PM, 14th December 2022, About 6 months ago
I don’t know where the Government got it’s figures from but the numbers we are seeing from Property118 readers are that their costs have risen by 10’s of £1,000’s a year.
Interest on a £100,000 tracker mortgage has increased by circa £3,740 in the last 12 months and looks set to increase again following the December 15th MPC meeting of the Bank of England.
A portfolio landlord with £2,000,000 of BTL tracker mortgages has already seen mortgage interest costs by £74,800 this year and it’s set to get worse.
If those landlords are not incorporated they can’t even offset these cost increases against their rental income for tax purposes, so they could be losing money in real terms but still have a huge tax bill.
14:02 PM, 14th December 2022, About 6 months ago
Reply to the comment left by Mark Alexander - Founder of Property118 at 14/12/2022 - 13:40
As Mark Alexander points out, this disproportionately affects the majority of smaller investors who have a small portfolio and are not incorporated.
There are lots of those smaller investors including pensioners and public sector workers trying to invest to supplement their public sector pensions. The majority of landlords are small landlords. But in the end the people who pay for those tax policies are tenants.
Hardly a vote-winner is it?
Rent-rises are an effect of government tax policy.
12:29 PM, 17th December 2022, About 6 months ago
Having watched Mark's video clip this morning, are my maths below correct,
assuming 2023/24 allowances & tax rates/bands:-
An individual owns a £4m Property portfolio value with £1.5m of outstanding mortgages at 5.5% interest, producing £180,000 gross rental Income less £82,500 mortgage interest & £54,000 allowable expenses assuming no major repair or replacement works = £43,500 net rental earnings yet £126,000 is the Declared Taxable Income. The consequences of which are; loss of the £12,570 personal allowance & £860 is taxed at 45% additional rate giving an overall tax liability of £23,889 Income Tax after crediting back 20% relief for finance costs which is equivalent to 54.9% tax paid = £19,611 post tax net rental income. Worse still, if mortgage rates increase to 6.5% = £28,500 Net rental earnings versus £126,000 taxable income = £20,889 Income Tax after crediting back 20% relief for finance costs / equivalent to 73.3% tax paid = £7,611 post tax net rental income. Moving on...if a 5.5% mortgage rate & 60% of the portfolio is an EPC rating of D & E & assuming an average anticipated spend to improve to a C rating is £10,000 per property, most of which will be classed as Capital Expenditure & not Tax Deductible, then the picture is £19,611 post tax profit, less £90,000 EPC improvements (£10,000 per property EPC improvements D/E to a C) = (£70,389) extra finance required if savings not available.
And if fed up of being a landlord, if the portfolio was sold at £4m versus purchase costs of £2m, the chargeable gain is £2m (ignoring sale costs) & even if CGT was charged at the highest income tax rate of 45% = £900,000 CGT (ignoring the annual allowance) = £3.1m net proceeds less £1.5m mortgage debt redeemed = £1.6m net (£1.94m after 28% CGT) invested for example in investment bonds from which 5% pa can be withdrawn tax-free (deemed the return of capital over 20years) = a tax free income of £80,000 pa for 20years & most importantly, no headache. Or to put another way, the yield need only be 1.23%pa to produce the same net income of £19,611pa as per the above example. Even if the net £1.6m proceeds were invested at a 5% yield that was taxable, the tax would only be £19,432 = £60,568pa net of tax versus £19,611 in the above example. Or put another way, £1.6m would only require a gross yield of 1.34% to produce a taxable income of £21,121pa gross = £19,611pa net of tax assuming £1,000 savings allowance.....AND NO HEADACHE.
I must be calculating something wrong surely?
Mark Alexander - Founder of Property118
12:48 PM, 17th December 2022, About 6 months ago
Reply to the comment left by Laura Delow at 17/12/2022 - 12:29
That's a LOT of number crunching for a Saturday morning.
I have not tried to replicate your number crunching myself yet but the basic principles you have used seem to be broadly correct.
What you also have to bear in mind is that the work required to bring properties up to a band C rating for EPC would be treated improvements, not repairs and renewals, so those costs cannot be offset against rental income. They can, however, be treated as capital costs when the properties are sold. Likewise for the costs of selling, which you have yet to factor in. Furthermore, the landlord would probably have to discount the properties by at least 10% to sell them as tenanted. On the other hand, to sell them with vacant possession would result in the cost of evicting tenants, possible rental void periods and the need to redecorate to achieve the best possible price.
As explained in my videos, incorporating the whole business does improve the scenario for the landlord quite significantly in many circumstances, but not all. That's why quality professional advice from Property118 and Cotswold Barristers is so vital to people in this sort of position.