Written By Em

Em Morley

Homeless Should Take Private Rental Homes

Published On: June 13, 2015 at 9:55 am

Tags: homeless housing options,homelessness in britain

A new set of regulations have come into force, meaning that local authorities must now do more to assist homeless people.

Homeless Should Take Private Rental Homes

Housing minister Mark Prisk recently announced changes to the process of housing homeless applicants. Previously, homeless people could turn down the offer of privately rented accommodation, in favour of waiting for a council house. This proved expensive for local authorities, as they had to house them in short-term accommodation, often for several months.

Under the new rules, if homeless tenants reject offers of privately rented accommodation, councils will need to do more to assist them.

Fairer

Mr Prisk said that the new rules would not only make waiting lists shorter and fairer but also make sure that councils were doing their duty to homeless people. In addition, Prisk vowed that all rental homes offered to homeless applicants would be of a high-quality standard. Homes would include new Gas Safety and Energy Performance Certificates. Furthermore, it is now the duty of the council to ensure that the landlord passes a fit and proper persons test.

Speaking about his announcement, Mr Prisk said: “For too long, councils have been restricted in the way they provided homeless assistance when good quality rented accommodation was available right on their doorstep. Today’s changes will lead to a fairer system.

“The safeguards we’ve put in place will give vulnerable families the reassurance they need whether they’re housed in the private or social rented sector, and with new freedoms and flexibilities, councils can now fulfil their duty and provide a safe and secure roof for the people who need it most.”[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Councils-tell-homeless-to-take-homeless-rental-homes-or-nothing

UK house building will benefit from barrier removals

Published On: June 12, 2015 at 4:20 pm

Author: Em Morley

Categories: Landlord News

Tags: Help to Buy Loan,house building,Savills

New research has indicated that private house builders in Britain could build 150,000 new homes by 2020, if certain barriers are relaxed.

Analysis from real estate firm Savills shows that private builders presently build the lions share of new homes in England, and have capacity to increase input through controlled expansion. Their analysis also shows the major house builders are only just returning to their operating targets, with stronger finance availability allowing medium sized house builders to branch out.

Increases

Data from the Savills report shows that private house building in the UK have increased in the six years since the economic downturn. Approximately 45% of all new affordable homes were built by private house builders in the last year.

The majority of new homes (54%) are in the process of being built by the eleven largest house builders in Britain, those being ones that can build over 2,000 homes per year. One third of all homes are being built by medium sized builders, those who can build between 100 and 2,000 homes per annum.[1]

UK house building will benefit from barrier removals

Encouragingly for the government, the report shows that the Help to Buy Equity Loan and NewBuy schemes subsidised 30,146 new home purchases in England last year. An average of 32% homes amongst the largest house builders are supported by the scheme.[2]

Future potential

The report from Savills reads, ‘we estimate Help to Buy will support 30,000 new home sales per year and our estimate of potential delivery of homes by the private sector up to 2020 relies on its continuation. If Help to Buy comes to an end after its current funding expires in 2020, we are likely to see start volumes tapering off up to two years before the end of the scheme in anticipation.’[3]

Additionally, the report shows that funding is easier for SME house builders as competition amongst lenders means that choices are expanding.

[1] http://www.propertywire.com/news/europe/uk-new-home-building-2015061210624.html

Hackney council targeted for buying mansion

Published On: June 12, 2015 at 2:52 pm

Author: Em Morley

Categories: Landlord News

Tags: families,Hackney Council,Mansion

Hackney Borough Council is spending an astonishing £1.2 million on a beautiful 19^th century country mansion, in order to send feuding families on extended breaks to help their relationship.

The council, which is facing a £36m reduction in Government funding, are planning to send troubled families to the two-acre resort for up to six-weeks. An offer on the site, known as the Silver Trees estate, came following a £2m government grant to the council to help these types of families spend, ‘structured’ periods away from their normal home.

Joke

Needless to say, the move has not gone down well with local residents, with one describing the move as a, ‘wind up.’ Others are very concerned about anti-social behavior. One resident, Helen Straw, said that, ‘the families sent there might be considered problematic or troubled. I personally walk my dog in the wood opposite most days alone and my enjoyment of our rural area would be affected if my personal feeling of safety was compromised.’[1]

Another resident Matthew Batstone, commented that the move was a, ‘profligate use of public money in what is supposed to be a time of austerity. This proposal is extravagant and it ignores the enormous and urgent need for family housing in Oxfordshire.’[1]

Hackney council targeted for buying mansion

Undeterred

The council however seem undeterred by the claims, saying that families likely to be sent to the retreat are parents who need to learn how to manage their children. A spokeswoman for Hackney council said that they had, ‘recently received funding from the DfE Innovation Fund to run a programme to help children and families who would benefit from some structured time away from home. It is a voluntary programme, with parents and where appropriate, foster carers joining the children and taking part in a programme of learning and support.’[1]

She continued by saying that Hackney Council, ‘think this location is ideal as it will give the families involved the opportunity to spend time together away from their homes in a tranquil location with plenty of space that is still a commutable distance from London.’[1]

Currently in its consultation period, the application will be decided upon on July 2^nd.

[1] http://www.dailymail.co.uk/news/article-3119949/Cash-strapped-London-council-buys-1-2million-country-mansion-send-troubled-families-free-six-week-holidays.html

Top-ten rental spots outside of London revealed

Published On: June 12, 2015 at 12:36 pm

Author: Em Morley

Categories: Property News

Tags: Essex,rental locations,rental yields

Research from Rightmove has indicated the location of the top-ten rental hotspots outside of Greater London, with Essex the clear front-runner.

Six of the top ten rental locations outside of the capital are in Essex: Southend, Wickford, Basildon, Grays, Chelmsford and Braintree. However, the top place to rent outside of Greater London was found to be Stevenage in Hertfordshire. Dartford, Bristol and Wellingborough also made it into the top-ten.

The full list is as follows:

Rank	Area	Q2 2015 Average Asking Rent per month	Q2 2014 Average Asking Rent per month	% Difference
1	Stevenage	£833	£748	11.3%
2	Southend	£783	£705	11.1%
3	Dartford	£915	£815	12.3%
4	Wickford	£932	£820	13.6%
5	Basildon	£895	£807	11.0%
6	Grays	£887	£825	7.6%
7	Chelmsford	£903	£866	4.3%
8	Bristol	£875	£808	8.3%
9	Wellingborough	£582	£544	7.1%
10	Braintree	£768	£708	8.4%

[1]

The top five areas have all experienced year-on-year rent increases of over 10%, in comparison to the national average of 4.4%.[1]

Record high

Sam Mitchell, Head of Lettings at Rightmove, commented that, ‘demand for quality rental properties is at a record high and the most sought after areas such as Stevenage and places in Essex are all within easy commuting distance of the capital.’ Mitchell noted that, ‘all of these hotspots benefit from an average asking rent of under £1,000 per month compared to the Greater London average of over double that.’[1]

Top-ten rental spots outside of London revealed

Continuing, Mitchell said that, ‘in these areas of high demand it’s more important than ever for tenants to know how to make themselves desirable to landlords, so having their finances in order and good references is key to getting the property they want in such a fast paced market.’[1]

Sarah Roberts, Residential Property Manager at Strutt and Parker in Chelmsford, said that it was, ‘no surprise that both Chelmsford and Braintree make the top ten list.’ Roberts noted that both have, ‘good commuting links into London by train and road and are very good value in comparison to the capital for renting.’[1]

According to Roberts, savvy developers, ‘have already identified the buy-to-let investment potential in these areas and both Essex towns are seeing a boost in new build developments.’ She also suggests that, ‘a lot of the flats that come on to the rental market in these areas are snapped up in record time, often after just one viewing, due to their affordability and convenient location.’[1]

[1] http://www.propertyreporter.co.uk/landlords/where-are-the-most-in-demand-rental-hotspots-outside-london.html

Report Letting Agents over Fees

Published On: June 12, 2015 at 12:07 pm

Author: Em Morley

Categories: Landlord News

Tags: displaying letting agent fees,landlord fees,letting agent fees,tenant fees

Report Letting Agents over Fees

Letting agents are now required to display any fees charged to tenants or landlords in their office and on their website.

If you have spotted an agent that isn’t advertising their fees correctly, you can report them through Citizens Advice. The simple form will help identify the agents not complying with regulations.

The report form can be found here: https://citizensadvice1.wufoo.eu/forms/bad-letting-agent-ad-report-it/

Find out how agents should display fees here: /letting-agents-must-display-fees-within-a-week/

UK mortgage industry needs to do more for older people

Published On: June 12, 2015 at 11:30 am

Author: Em Morley

Categories: Landlord News

Tags: mortgage industry,pension freedoms,retirees

The director of the International Longevity Centre-UK has called on Britain’s mortgage industry to do more for retirees who wish to take out loans for homes.

Talking at the conference organised by the Council of Mortgage Lenders, David Sinclair suggested that the industry should be wary of discriminating on the basis of age. In addition, Mr Sinclair appealed to older people to ensure that they are certain that buy-to-let is their preferred investment method.

Extension

Since the year 2010, the number and percentage of mortgages extending into retirement has risen. Research from the International Longevity Centre in 2014 showed that the average property wealth of retirees is £122,000, leading to an overall total of £1.4 trillion.[1]

Mr Sinclair feels that larger demographic trends, financial insecurity and a number of policy changes is meaning that a lot of people are needing to take their mortgage into retirement. He warns that property investment is a risk and does not guarantee a return.

‘The industry and the regulatory environment have been seemingly struggling to respond to ageing and demographic change. We are, however, very pleased to see that the industry have begun to respond to these challenges through the important work being led by the CML,’ Sinclair said in his conference address. [1]

Sinclair feels that, ‘we are living longer, our family structures are changing, we are marrying later and we are working longer. At the same time, financial insecurity will result in more people needing to borrow more and later in life.’ He also stated that, ‘we should be particularly worried about those retirees with interest only mortgages but no linked investment.’[1]

UK mortgage industry needs to do more for older people

Freedoms

Continuing, Sinclair noted that the introduction of pension freedoms could give the buy to let sector a further boost. However, he believes that all older people should seek advice before signing any contract. He concedes that the release of equity is an attractive proposition for many looking to supplement their pension.

‘The industry needs to ensure that the income poor asset rich pensioners are well served by this market,’ Sinclair commented. ‘That said, the recent growth in the number of people aged 55 to 64 taking equity release is potentially very worrying,’ he added. [1]

[1] http://www.propertywire.com/news/europe/uk-property-older-buyers-2015061210622.html