Special mention to the amazing Debbie Gilbert for putting on such a wonderful Awards event. Thanks for the opportunity to Judge two amazing categories with such brilliant women.
Finally well done Lovelda Vincenzi for comparing the evening so well.
It is probably fair to say that no (wo)man is an island and often it’s our support/network that gets us to where we are.
Who can you lean on (My obvious one is in the pic)?
As a property developer, I absolutely love looking at different properties and I get to see some beautiful homes (and some NOT so beautiful) inside and out. It got me thinking about where I stay and why on holiday?
My first choice would always be the sun and warmer climates. However this year we’ve experienced a UK staycation in beautiful Cumbria. We are currently in the Lake District surrounded by natural beauty. What is it that ticks all the boxes for your holiday? Is there a treat you must have in your holiday home/apartment/room?
Guess what my guilty pleasure has been this trip?
Holiday Homes loophole leaves renting almost impossible in some cities
The HMRC views holiday lets as a trade rather than investments. This means mortgage interest costs can be offset against any income for tax purposes. If you have used a mortgage or loan to pay for a holiday let, you can claim the interest of repayments back against your tax.
Holiday lets count as a business which means the expenses from your rental income can be deducted before you are taxed. This includes the interest you pay on your mortgage. For buy-to-let properties, on the other hand, the law has changed, and this is no longer the case.
It means letting holiday homes has become a relatively cheaper expense and is therefore more profitable if you are occupied for most of the year.
This is leading to quite a few cases where long term tenants are being evicted from their homes, so the landlord can do it up – as one requirement is that it is adequately furnished – and rent to tourists looking for a home, away from home. Plymouth has become a city of holiday lets and in fact so much so, they have an ongoing petition to slow it down.
Cornwall has 62 homes to rent on Rightmove but 10,290 Airbnb listings. In one village in Wales, three quarters of the houses are holiday homes.
Anything that reduces cost will look attractive, particularly in this climate where the three-month temporary solace of mortgage holidays offered a preview to an advantage that could be experienced permanently (for now anyhow), as a landlord, if you just made the switch.
Ruthless Impact
Tenants become vulnerable to eviction, through no fault of their own, when regular landlords aspire to become holiday let landlords.
This becomes even more real during these uncertain times of Covid. As we are being asked to holiday at home the opportunity for these holiday lets arises with the threat of eviction rising too. The eviction ban lifted from protecting tenants in May 2021. Tenants could find themselves on the street with no roof over their head.
This generation, looking to buy a home in their childhood neighbourhood stand no chance with fewer residential properties to purchase and the ceiling prices unreachable. Renting too will be impossible with higher demand and higher rent. Young people will be unlikely to afford.
Ironically, local business owners who require a workforce to keep their businesses running to cater for tourists, will struggle finding the workforce who have nowhere to live locally.
Should the loophole be closed?
Removing the holiday let mortgage relief would return the incentive to prioritise people looking for a home, not a holiday.
It would open up a more competitive rental market for those wanting to live in these sought-after holiday towns where many grew up/want to return to.
It’s tricky because the nation has become more accustomed to Air BnB or Booking.com, as opposed to the traditional hotel establishments. We increasingly opt for a more ‘authentic’ travel, where you can experience the city, the way the locals do, including living like they live. A home away from home.
Maybe the answer is to incentivise regular landlords who simply rent to those that need a home to level out the playing field.
The Perfect credit score
So what does having the perfect credit score mean?
You’d think it meant you are going to get everything you apply for but No!
May be you’re going to have offers being thrown at you – possibly Yes!
All your mortgage and finance applications will be accepted – No!
The problem is the score is one factor, among many, that is looked at to judge your suitability as a loanee by potential loaners, and creditors, such as banks, credit card companies and car dealerships.
A credit score is the sum figure given after your financial situation has been evaluated. You are given a credit report which contains information about your payment history, debt and the length of your credit history.
What is a credit score?
Credit scores are calculated using information in your credit report, including your payment history; the amount of debt you have; and the length of your credit history.
It’s one factor among many to help them determine how likely you are to pay back money they lend.
Used by potential lenders and creditors, such as banks, credit card companies or car dealerships, as one factor when deciding whether to offer you credit, like a loan or credit card.
What does the score number mean?
Credit scores generally range from 300 to 850
580 to 669 is considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Higher credit scores mean you have demonstrated responsible credit behavior in the past, which may make potential lenders and creditors more confident when evaluating a request for credit.
Lenders generally see 670 and up as acceptable or lower-risk borrowers.
Scores from 580 to 669 are generally seen as “subprime borrowers,” meaning they may find it more difficult to qualify for better loan terms.
Lower scores – under 580 – generally fall into the “poor” credit range and may have difficulty getting credit or qualifying for better loan terms.
Who decides the credit score?
Different lenders have different criteria when it comes to granting credit
Credit scores may differ between the three major credit bureaus (Equifax, Experian and TransUnion) as not all creditors and lenders report to all three in addition, there are many different scoring models.
My Equifax score at 1000 differs greatly to my Experian score and that is where the problem sometimes lies. That said, in property the value of the property and the end value coupled with your experience, have a lot to do with an acceptance or a decline.
Landlords
The attitude of landlords is traditionally strict to meeting credit requirements however the landscape is changing, with the rise of socially conscious landlords who look at guarantees and a whole host of other factors to facilitate putting a #roofoveryourhead.
What affects your credit?
Pay your bills on time, every time.
Late or missed payments may be reported to the credit bureaus, which may impact your credit scores. If you’re having trouble paying a bill, contact the lender immediately. Don’t skip payments, even if you’re disputing a bill.
Pay off your debts as quickly as you can.
Keep your credit card balance well below the limit. A higher balance compared to your credit limit may impact your credit score.
Apply for credit sparingly. Applying for multiple credit accounts within a short time period may impact your credit score.
Check your credit reports regularly. Request a free copy of your credit report and check it to make sure your personal information is correct and there is no inaccurate or incomplete account information.
Resources available
You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting www.annualcreditreport.com.
By requesting a copy from one every four months, you can keep an eye on your reports year-round.
Checking your own credit report or credit score won’t affect your credit scores.
If you find information you believe is inaccurate or incomplete, contact the lender or creditor.
You can also file a dispute with the credit bureau that furnished the report.
