Property News: Amateur landlords; neighbourly goodwill; inheritance tax

Landlords warned to have gas appliances inspected yearly, or face imprisonment

Amateur landlords who invest in buy-to-let properties without taking note of stringent gas regulations could endanger the lives of their tenants, warns British Gas. Latest figures show that the risk of carbon monoxide poisoning in privately rented accommodation is much greater than in a privately owned home. British Gas says: "We urge all landlords not to cut corners with safety. Anyone living in rented accommodation must demand that all gas appliances are covered by a valid inspection record." Carbon monoxide poisoning can occur when gas appliances are not inspected regularly. It kills around 50 people each year, with the young and old being particularly vulnerable. Students moving to rented accommodation this autumn are also warned to be vigilant. By law, properties owned by a landlord must have their gas appliances inspected every year by a qualified engineer. The record of the inspection must be made available to their tenants within 28 days of the inspection taking place, which must be every 12 months. Landlords are also required to provide a copy of the last inspection record to new tenants before they move in, and it must be carried out before the property is let for the first time. Failure to comply with regulations could lead to imprisonment and an unlimited fine.

Neighbourly goodwill throughout the nation

We are on good terms, not at war, with our neighbours, according to a new survey from Bradford & Bingley estate agents. In fact, 85 per cent of those questioned said they were on good terms with their immediate neighbours, 77 per cent claiming they were friendly with people living on the same street. Only 5 per cent claimed they were not on friendly terms. The research also showed that most people were prepared to make a new neighbour feel at home with 71 per cent revealing they would make the effort to introduce themselves to someone moving in. Surprisingly, southerners proved marginally friendlier than northerners with 71 per cent welcoming new neighbours in the south compared to 67 per cent in the north. But we can still learn from the older generation. A massive 94 per cent of those aged over 65 said they were friendly with their immediate neighbours and 81 per cent with those living a few doors down on the same street.

Inheritance tax stings more families

Rising house prices have contributed to the huge increase in the number of families facing inheritance tax bills. New statistics show a steady creep upwards in the number of estates caught by the tax, from 19,000 in 1998 to 29,500 in 2003 - a 55 per cent rise. Jonquil Lowe, author of the latest Which? Guide to Giving and Inheriting, says: "Inheritance tax can bite deeply into even relatively modest estates. Yet in many cases a tax bill can be reduced or avoided altogether." In 1998, the average UK house price was just over £72,000, around a third of the estate value at which inheritance tax kicked in. In 2003, the average price has risen to £127,000 almost half the inheritance tax threshold. Currently, the first £255,000 of everything left is tax-free, the remainder is taxed at 40 per cent. There are wide regional variations, with those living in London and the South-east most likely to use up most or all of the tax-free slice on the value of their home. The Government will raise £2.4 billion from inheritance tax this year, up from £1.8 billion in 1998.