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disenfranchised

Councils go after HMO

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Searched for a topic on this and couldn't find one.

I'm sure most of you are aware that there is a council funding crisis...

https://www.theguardian.com/commentisfree/2017/mar/06/councils-local-authorities-bankruptcy-public-service

But it appears the council tax valuation teams have had a brainwave. Anecdotal evidence from various BTLscumlordz stuff I lurk on suggests that they are increasingly going after HMO split into "pseudo flats" with ensuite facilities to break them up into multiple band A, which the LL is still liable to pay :lol:

One of the BTLscumlordz suggests telling tenants their rent will go up 20% if they let the council in when they come calling! The beauty of course is that they have to be licensed, so they already know where to look! :lol:

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Edited by disenfranchised
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Was watching an episode of Nightmare Tenants Slum Landlords the other day and one story featured a chap who was supposedly letting out rooms to lodgers in a house which he claimed to also live in as his main and only residence... however he had been abroad for a year and was now ''forced'' to live with his partner in her property because the relationship with his ''lodgers'' had become so bad that he didn't feel safe in his ''home''.... it was quite obvious to me that he was a landlord and this was a HMO and not a homeowner letting out rooms to lodgers, but his tenants had none of the security of being renters and were instead just regarded as lodgers.

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54 minutes ago, interestrateripoff said:

Sitting ducks and councils need revenue. I can see landlords getting squeezed more and more unless they are social landlords.

Build to Rent is the only game in town now.

What once was the plot of a 3-bedroom detached property + garden... can now accommodate eight families, 2 x 70 sq. m apartments per floor.

HMO on steroids.

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2 hours ago, interestrateripoff said:

Sitting ducks and councils need revenue. I can see landlords getting squeezed more and more unless they are social landlords.

This should really be applied retrospectively as well, not just the current year.

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1 hour ago, zugzwang said:

Build to Rent is the only game in town now.

What once was the plot of a 3-bedroom detached property + garden... can now accommodate eight families, 2 x 70 sq. m apartments per floor.

HMO on steroids.

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There is so much grass around that one they could easily put more than 3 times the current number of families in that space alone - and still have room for flags.  

Especially if they come up with some innovative idea like making the units even tinier than before.

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6 hours ago, disenfranchised said:

 Anecdotal evidence from various BTLscumlordz stuff I lurk on suggests that they are increasingly going after HMO split into "pseudo flats" with ensuite facilities to break them up into multiple band A, which the LL is still liable to pay :lol:

One of the BTLscumlordz suggests telling tenants their rent will go up 20% if they let the council in when they come calling! The beauty of course is that they have to be licensed, so they already know where to look! :lol:

 

Excellent news, thanks for posting.

Don't want you to blow your cover, but some of the gnashing and wailing of the BTLscumlordz always goes down well, if you could share any of it!

 

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I'm not quite sure I see why this is a positive for people renting (other than I guess everyone pays their share of tax).

If you are renting a cheap room in an HMO doesn't this mean your tax bill is about to shoot up?  Surely the only time it affects the landlord is when rooms are vacant?

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4 minutes ago, libspero said:

I'm not quite sure I see why this is a positive for people renting (other than I guess everyone pays their share of tax).

If you are renting a cheap room in an HMO doesn't this mean your tax bill is about to shoot up?  Surely the only time it affects the landlord is when rooms are vacant?

Easy. To afford it you now have to share the room. Whats not to like.....

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A lot of the hmo stuff is happening illegally. In East London it's anyones guess how much of this is legit or not.. 

But in reality the couple Carter Stones claimed were renting the property did not live there.

Instead up to eight other people do, none with a contract. Mr Soeyono has not received any rent for six months.

http://www.bbc.co.uk/news/uk-39156916

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8 minutes ago, AvoidDebt said:

A lot of the hmo stuff is happening illegally. In East London it's anyones guess how much of this is legit or not.. 

But in reality the couple Carter Stones claimed were renting the property did not live there.

Instead up to eight other people do, none with a contract. Mr Soeyono has not received any rent for six months.

http://www.bbc.co.uk/news/uk-39156916

Good god, that's just fraud after fraud after fraud and all they do is get fined and ignore it. There's no real punishment occurring, or stopping them.

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I've got a friend that moved out of the area after living there all his life. All his kids went on to top jobs, top unis including two medics. He told me a couple of years ago that every house in the area was being souped up to a HMO eventhough there were restrictions by the council. He also reckons a large proportion of the BTL in the area is from global drugs money. 

Madness won't stop until BTL as an investment class is wiped out and replaced by corps. 2 million landlords in the country FFS! 

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11 hours ago, mrtickle said:

Excellent news, thanks for posting.

Don't want you to blow your cover, but some of the gnashing and wailing of the BTLscumlordz always goes down well, if you could share any of it

The HMO crew have a public discussion group on Facebook with thousands of members. I lurk there occasionally, you don't need to join to see their posts.

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19 hours ago, nome said:

Was watching an episode of Nightmare Tenants Slum Landlords the other day and one story featured a chap who was supposedly letting out rooms to lodgers in a house which he claimed to also live in as his main and only residence... however he had been abroad for a year and was now ''forced'' to live with his partner in her property because the relationship with his ''lodgers'' had become so bad that he didn't feel safe in his ''home''.... it was quite obvious to me that he was a landlord and this was a HMO and not a homeowner letting out rooms to lodgers, but his tenants had none of the security of being renters and were instead just regarded as lodgers.

I thought you needed a HMO license if you had a certain number of lodgers anyway (3 or more?).

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20 hours ago, nome said:

Was watching an episode of Nightmare Tenants Slum Landlords the other day and one story featured a chap who was supposedly letting out rooms to lodgers in a house which he claimed to also live in as his main and only residence... however he had been abroad for a year and was now ''forced'' to live with his partner in her property because the relationship with his ''lodgers'' had become so bad that he didn't feel safe in his ''home''.... it was quite obvious to me that he was a landlord and this was a HMO and not a homeowner letting out rooms to lodgers, but his tenants had none of the security of being renters and were instead just regarded as lodgers.

Almost def a tax dodge as you have some relief for lodgers. Taxman needs to investigate

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10 minutes ago, Gribble said:

Almost def a tax dodge as you have some relief for lodgers. Taxman needs to investigate

Well it was right there on national television (well channel 5 at least!)

 

Shouldn't be too hard for them to track him down

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Just now, nome said:

Well it was right there on national television (well channel 5 at least!)

 

Shouldn't be too hard for them to track him down

Fill out a tax evade snitch form with HMRC like I did with our resident tax evader.

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