Lunchtime news Friday 22 February 2024

Hundreds of buy-to-let investors are being questioned about undeclared income, in a probe launched by Revenue and Customs (HMRC) this week. Five hundred letters have been sent out in the first phase of the campaign to target property owners who may have failed to declare their investment over the past six years. If it finds any evidence of fraud, HMRC can demand tax, interest and penalties going back 20 years. Accountancy firm, Wilkins Kennedy, says that HMRC has been gathering lists of landlords from lettings agencies.

Nationalisation of Northern Rock was passed by parliament last night despite anger at the undue haste and the lack of information and transparency about the true state of its mortgage books. Although the Lords defeated the government three times to try to force amendments requiring Northern Rock to answer questions under the Freedom of Information Act, the government flatly opposed the amendments. The peers did, however, force a concession – an annual audit of Northern Rock’s accounts by the Office of Fair Trading, and a ministerial promise that the bank would behave ‘prudently’ in offering new mortgages.

Other mortgage lenders may find their credit ratings downgraded making borrowing on the money markets more expensive, warned Fitch credit ratings agency yesterday. Fitch expects the trend of lower housing prices in Britain to continue, though it is not expecting a collapse in UK house prices. A spokesperson said, ‘A weakening housing market may place pressure on some UK mortgage lenders, although a rebalancing of the market is likely to offer opportunities to those with the best access to funding’.

Fire fighters in London have been banned from pre-arranged ‘home fire safety visits’ unless residents stub out cigarettes an hour before the visit and open windows. London fire brigade chiefs have decided that private homes are a firefighter’s workplace for the duration of visits and so should comply with the workplace smoking ban. If they feel that the home in question is just too smoky to enter, they will provide the advice at the door of the home. Officials stress that the new rules would only apply to the safety visits and not to emergencies where homes were actually burning down.

A London borough has been granted permission to challenge a legal decision forcing councils to push estranged parents who have agreed to share a residence, up the waiting list for a family home. Richmond-upon-Thames council can contest the decision where a parent claimed priority need because he and his former partner agreed to a shared residence order for their three children. The council argued that although the gent was eligible for council housing, he should not be given priority as such cases created obligation on local authorities, putting pressure on tight resources and lead to split parents exploiting the system to get a large family home.

And finally, a dilapidated wooden shed in Abersoch, North Wales, is up for sale for £150,000. It measures 18 feet by 15 feet, has no scenic views and a damaged roof. Estate agent Beresford Adams claims it offers ‘tremendous re-development potential.’