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Drop the Mic - Islington Council Crackdown On BTL

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Astonishing news from Islington Council. They noticed that landlords of students are not declaring the correct category of tenant during non-term times, thus the landlord has possibly been evading council.

To combat this they have introduced a rule that sounds like every landlord in the borough MUST submit a WEEKLY notice of what type of tenant they have occupying their property!!!

 

Administrative nightmare the Landlords say, shouldn't be too long before the admin gets too much and not worth the hassle and they sell up! wowza!!!

 

https://residentiallandlord.com/islington-council-closes-loophole-led-landlords-avoiding-tax/

 

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Councils must lose so much council tax from student lets.  A bit unfair as all other taxpayers are paying to ensure the landlords (student) tenants get the services for free and that the landlords property is uplifted in value if council works (paid for by council tax payers) make the area nicer.

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Islington council should applauded for this measure, but why has  such a scheme taken so long to come about? Should this not have been in place years/decades ago? And across all the councils?

And why is only Islington(?) going on this route (so far)?  Shirley all councils are short on dough atm?

But yes, hopefully this "does" go nationwide, and either way another nail in the BTL coffin :lol:

muwahahahaha 

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HMRC is loosing so much from landlords not declaring income, it's crazy there isn't a somekind of nationwide system that every landlord has to register with. Billions a year are not being taxed and HMRC doesn't seem to chase up when I report someone.

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2 hours ago, fru-gal said:

This is Corbyn's borough. Perhaps showing us a vision of the future of BTL and how he would treat these entrepreneurs?

Ha! It's too early to tell. He's only been the MP since June 1983.

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2 hours ago, stuckin2up2down said:

HMRC is loosing so much from landlords not declaring income, it's crazy there isn't a somekind of nationwide system that every landlord has to register with. Billions a year are not being taxed and HMRC doesn't seem to chase up when I report someone.

Coming to a place near everyone :D

Quote

Half of landlords in one London borough fail to declare rental income

https://www.theguardian.com/business/2017/aug/13/half-of-landlords-in-one-london-borough-fail-to-declare-rental-income

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5 hours ago, fru-gal said:

Councils must lose so much council tax from student lets.  A bit unfair as all other taxpayers are paying to ensure the landlords (student) tenants get the services for free and that the landlords property is uplifted in value if council works (paid for by council tax payers) make the area nicer.

The students may get the services for free but it would be a bit harsh to force them to pay for those services given the income of a typical student is an interest bearing student loan, an income well below that from the average wage.

Edited by spacedin

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2 hours ago, spacedin said:

The students may get the services for free but it would be a bit harsh to force them to pay for those services given the income of a typical student is an interest bearing student loan, an income well below that from the average wage.

Landlords of student lets should pay council tax, not the students.

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Just now, ExiledMatty said:

Students should pay council tax or use their own street lighting and recycling.

students do pay it back and more once they graduate. It's landlords would shouldn't be let off the hook. 
there is probably a big scam on expensive council tax properties to claim students are living there, you only need a bit of paperwork from the Uni.
and im sure its very easy to forget they have moved out 6 months ago. 

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7 minutes ago, ExiledMatty said:

The landlords would just pass the cost to the students anyway. 

 

As someone who works in a university, I can assure you that this is very unlikely.

Not that I don't agree  with you that THEY WILL TRY to pass on any costs, but the parents of the students are all ready shelling out huge sums for their offspring and won't pay anymore. That source of rental rises is tapped out.

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3 hours ago, ExiledMatty said:

Students should pay council tax or use their own street lighting and recycling.

How much would houses rent for in a street with no street lighting and no recycling?

Landlords are the primary beneficiary of council services, they are essentially charging their tenants for services provided by someone else. 

That's how the landlording scam works, it's how you make a profit by doing nothing.

Of course rents would be higher in a street with no council tax, and so landlords essentially are paying the council tax regardless of who actually signs the cheque. But this also means that any council tax exemptions are essentially another handout to landlords. 

Edited by DrBuyToLeech

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2 hours ago, ExiledMatty said:

Students should pay council tax or use their own street lighting and recycling.

And what percentage of council tax goes on services people actually use vs pensions?

I've taken myself out of income tax but still the 30 quid a month council tax seems like pretty bad value.

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17 hours ago, deadlyavenger said:

Islington council should applauded for this measure, but why has  such a scheme taken so long to come about? Should this not have been in place years/decades ago? And across all the councils?

And why is only Islington(?) going on this route (so far)?  Shirley all councils are short on dough atm?

But yes, hopefully this "does" go nationwide, and either way another nail in the BTL coffin :lol:

muwahahahaha 

dont-call-me-shirley.jpg

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Could someone change the ttitle to Lets all rant about BTL?

Or we could take it back OT .....

The article quoted is about blocks of 100 or so student flats whose owners are probably corporate. [eg pure living at fins park although I don't know if they are one of those affected].

Guessing there is some scheme where the management arrange the student exemption for CT.

They have been refusing to tell the council how many weeks in the summer they are renting to non-students. The council are now trying to force them to submit all leases - details of students. The total is 121k / year so it's a blip in Islingtons budget. I would have thought it more appropriate to tax and regulate these guys as hotels [business rates] or prevent them operating as such due to planning laws. Of course money from business rates does not automatically go into the councils pot in the same way.

IOW it's all a mess.

For a BTL with student tenants, the landlord possibly arranges CT if it's a HMO? They could be affected I guess but don't think that's what the article is about.

 

There are also inadequacies in the law around short term rentals. 3 months per year are allowed. I supplied someone at Islington who deals with airbnb problems the user and links to listings for a Canadian with asian GF who has 5 or 6 flats listed in / around Islington many months ago. Airbnb is set up so there is no link to an owners other properties even if the same user has many flats so not straightforward to get that. His flats are all still there and I can imagine that them just being listed is not enough to provide level of evidence required by a court that he's breaking the rules. Pretty sure he and gf do not live in all of the 5 or 6 flats in the same area and rent them out under 90 days.

Common sense says they must be breaking law and I'm guessing it's rent to rent. They are certainly removing 5 or 6 or more rentals from the local rent market. But Islington would have to prove each/any is rented for more than 90 days, AFAIK they have no power to order airbnb to hand over the evidence. The law is inadequate [IMO :)]

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On 02/09/2017 at 3:31 PM, ebull said:

Could someone change the ttitle to Lets all rant about BTL?

Or we could take it back OT .....

The article quoted is about blocks of 100 or so student flats whose owners are probably corporate. [eg pure living at fins park although I don't know if they are one of those affected].

Guessing there is some scheme where the management arrange the student exemption for CT.

They have been refusing to tell the council how many weeks in the summer they are renting to non-students. The council are now trying to force them to submit all leases - details of students. The total is 121k / year so it's a blip in Islingtons budget. I would have thought it more appropriate to tax and regulate these guys as hotels [business rates] or prevent them operating as such due to planning laws. Of course money from business rates does not automatically go into the councils pot in the same way.

IOW it's all a mess.

For a BTL with student tenants, the landlord possibly arranges CT if it's a HMO? They could be affected I guess but don't think that's what the article is about.

 

There are also inadequacies in the law around short term rentals. 3 months per year are allowed. I supplied someone at Islington who deals with airbnb problems the user and links to listings for a Canadian with asian GF who has 5 or 6 flats listed in / around Islington many months ago. Airbnb is set up so there is no link to an owners other properties even if the same user has many flats so not straightforward to get that. His flats are all still there and I can imagine that them just being listed is not enough to provide level of evidence required by a court that he's breaking the rules. Pretty sure he and gf do not live in all of the 5 or 6 flats in the same area and rent them out under 90 days.

Common sense says they must be breaking law and I'm guessing it's rent to rent. They are certainly removing 5 or 6 or more rentals from the local rent market. But Islington would have to prove each/any is rented for more than 90 days, AFAIK they have no power to order airbnb to hand over the evidence. The law is inadequate [IMO :)]

AirBnB no longer let you go over the 90 days in London.

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