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Rents are Now 15% Higher than at Last General Election

Published On: April 24, 2015 at 9:41 am

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Latest Landbay Rental Index Reveals Best and Worst Areas for Growth in England
Rents are Now 15% Higher than at Last General Election

Rents are Now 15% Higher than at Last General Election

Rents in England and Wales are now 15.2% more expensive than at the last general election of May 2010, Your Move and Reeds Rains have found.

Rents have risen faster than inflation in this period. Since May 2010, consumer price inflation grew to 11.6%. After the effects of inflation, rents rose 3.6%. This is a 0.7% real terms rise over the past five years.1

In March, the average rent was £768 per month. Annual rent increases have soared to the fastest rate in two years, with rents in England and Wales now 3.7% higher in the last year.1

Currently, rents are just £2 away from the record high recorded in October 2014 of £770 per month.1

Director of Your Move and Reeds Rains, Adrian Gill, says: “Since 2010, the private rented sector has absorbed over a million extra households. With social housing in decline, alongside a parallel decay in the number of people owning their own home with a mortgage, private renting has stood in to fill the gap.

“However, this sector is carrying the weight of the housing crisis, and that will mean faster rent rises in future if supply doesn’t keep up.

“Over the next five years, politicians of all stripes can’t just hope that this problem will go away; Britain needs more homes.”1

1 http://www.propertyindustryeye.com/rents-over-15-higher-than-at-last-election-and-faster-than-inflation/

UK Housing Market Showing New Trends

Published On: April 24, 2015 at 9:29 am

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A new survey has revealed a number of differences in key trends in the UK housing market.

The Housing Futures Survey conducted by Strutt & Parker found that a growing number of people are living alone, while many more are renting homes for the long-term. 75% of people questioned that are currently single and wanting to move in the next five years expected to be living alone. 45% of people questioned aged between 18-29 said that they would consider living in purpose built managed rental units.[1]

Technological wishes

A sign of modern times was encapsulated with 36% of respondents saying that good broadband connectivity was high on their wish-list when choosing a new property. 20% listed a good mobile signal as either important or very important.[2]

There are however little signs of homeowners looking to raise capital to fund their offspring’s homes or for their own pensions. Just 9% of 40-59 year olds stated that financial support for children or relatives was either important or very important in their reasoning for moving house, with just 8% stating the same for pension support.[3]

Stephanie McMahon, head of research at Strutt & Parker, said that the trends, ‘identify that single occupied households and alternative family households are growing.’ She believes that the results show that, ‘the younger generation is more open to the idea of renting and those moving into retirement are seeking more interactive environments.’ As a result, McMahon said that it is imperative that, ‘the homes we plan, design, build and live in must also be different.’[4]

UK Housing Market Showing New Trends

UK Housing Market Showing New Trends

She also said that, ‘lifestyle change remained the dominant motivation for moving, but in light of pension challenges and parents seeking to help their children onto the housing ladder, we were surprised to see that so few respondents ranked release of equity, pension top up and financial support for relatives as their reasons for moving home.’[5]

[1-5] http://snip.ly/MMTN#http://www.propertywire.com/news/europe/uk-housing-trends-report-2015042310424.html

Property Market Stabilises with £16.5bn Mortgages in a Month

Published On: April 24, 2015 at 9:26 am

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Property Market Stabilises with £16.5bn Mortgages in a Month

Property Market Stabilises with £16.5bn Mortgages in a Month

After a slow start to the year, mortgage lending rose by a fifth in March 2015, providers have revealed.

Banks and building societies reported that around £16.5 billion worth of mortgages were approved last month. This is a 21% increase on February figures, according to the Council of Mortgage Lenders (CML).1

This is a 7% growth on the £15.4 billion handed out in March 2014, however the first quarter (Q1) total of £44.9 billion was 3% less than in Q1 2014.

The CML’s Chief Economist Bob Pannell believes that the market is stabilising. He says: “Sentiment and activity are showing early signs of improvement and should be further supported by the effects of Stamp Duty reform.”1 

1 Sculthorpe, T. (2015) ‘Housing market stirs with £16.5bn loans in a month’, Metro, 24 April, p.32

 

 

Hamptons Estate Agents Breach Fees Code of Conduct

Published On: April 24, 2015 at 9:00 am

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Estate agent Hamptons has been identified by the Advertising Standards Authority (ASA) as breaching the code of conduct on displaying fees in advertisements.

The ASA received a complaint regarding an online advert which stated: “£1,200 per calendar month + £216 incl. VAT admin fee per property + other fees may apply.”1

A hyperlink appeared in the text “+ £216 incl. VAT admin fee per property + other fees may apply” to additional details about the fees.

The complainant knew that there would be additional fees, but did not believe the information was clear.

Hamptons argued that the administration fee was the only fixed cost. It said that the hyperlinked text connected to a PDF entitled Charges and Information for Tenants.

Hamptons Estate Agents Breach Fees Code of Conduct

Hamptons Estate Agents Breach Fees Code of Conduct

This document detailed other mandatory charges that could apply, including the cost of references for tenants.

The document also said: “Other charges may be incurred as part of the application process”1, which allegedly referred to check-in fees. These fees vary from property to property depending on the charge imposed by the independent inventory clerk.

The Bristol branch of the firm uses a different fee system. They apply an all-inclusive fee, of the administration fee, referencing fee and check-in fee, which is either 35% of the first months’ rent or £420. Hamptons said it would amend the document with sufficient details of fees.

The ASA upheld the complaint, saying that Hamptons had breached CAP Code (Edition 12) rules 3.1 and 3.3 (Misleading advertising), 3.17, 3.18 and 3.19 (Prices). The ASA also said that Hamptons couldn’t use this advert again.

The ASA said: “The ASA considered consumers would interpret the claim ‘+ £216 incl. VAT admin fee per property + other fees may apply’ to mean that the administration fee was the only non-optional charge and there might be other fees depending on the situation.

“However, we understood that there were other non-optional fees that consumers would have to pay if they rented the property. These fees were a referencing charge and a check-in charge, which would be combined with the administrative charge into an all-inclusive fee for their Bristol branch.

“For other branches, the referencing charge was one of two fixed prices depending on whether the consumer was a tenant or a business, and the check-in charge varied depending on the size of the property.

“We noted CAP Code rule 3.19 stated: ‘If a tax, duty, fee or charge cannot be calculated in advance, for example, because it depends on the consumer’s circumstances, the marketing communication must make clear that it is excluded from the advertised price and state how it is calculated.’

“While we acknowledged details of the costs were included in a document which was hyperlinked to the claim, we considered non-optional fees were material information that was likely to have an impact on a consumer’s transactional decision. We considered, therefore, that the information about the non-optional fees was not sufficiently prominent. Because the ad misleadingly implied other fees might not apply, and the information about non-optional fees was not sufficiently prominent, we concluded the ad was misleading.”1

1 http://www.landlordtoday.co.uk/news_features/Hamptons-in-hot-water-over-fees

The Houses that are the Same Price as a One-Bed London Flat

Published On: April 23, 2015 at 4:54 pm

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London property prices are so expensive that £1m buys you just a one-bedroom flat. But if you do have £1m to spend on a home, these options could be more to your liking…

Ibiza, Spain – €1.39m

 

This luxury three-bedroom apartment has a private pool, sea views and is situated in the exclusive Infinity Residence, minutes from the beach and close to the airport.

Mallorca, Spain – €1.2m

 

This end of terrace house is in the fashionable resort of Puerto Andratx in southwest Mallorca, with beautiful views and access to the sea.

Algarve, Portugal – €1.55m

 

This modern villa was completed at the end of last year and has four bedrooms and five bathrooms over three floors. The terrace has views of the coast.

Puglia, Italy – €1.5m

Masseria Bianca is a property dating back to the 1800s, situated in the UNESCO Heritage village. The unique structure boasts star vaulted ceilings and has four bedrooms. In 1.2 hectares of land, the home comes with a swimming pool and olive trees.

Yalikavak, Turkey – £1.13m

This luxury property has five bedrooms and has been completely renovated inside to the highest standard.

Umbria, Italy – €1.39m

In the open countryside, this five-bedroom farmhouse is close to Lake Bolsena and just 15km from Orvieto.

Saint Laurent de Chamousset, France – €1.49m

This 1620 chateau has over eight and a half acres of woodland and parkland. Alongside luxurious features, the property has nine bedroom suites and a helipad.

Le Marche, Italy – €1.39m

This countryside mansion has 13 bedrooms and stunning views across the green hills. It is only 6km from Urbino, a city famous for its art and culture.

Marrakech, Morocco – £850,000

This five-bedroom property has great views of the Atlas Mountains. In its 2.2 acres of landscaped gardens sit olive groves, grasses, roses, lavenders, and sub tropical climbing plants.

Western Cape, South Africa

This three-bedroom home comes with 6,000m² of Cabernet Sauvignon vineyards, a large garden and 360° views of the valley and mountains.

Queyras National Park, French Alps – €1.49m

In a small mountain village, this 17-bedroom stone chalet dates back to 1860 and has 718m² of living space.

Barbados – £972,300

On the exclusive Royal Westmoreland estate, this four-bedroom villa is designed to take advantage of the views, with the bedrooms situated on the ground floor and the kitchen, dining area and living space on the first floor.

Gironde, France – €1.37m

Near Bordeaux, this 17th century country estate has eight bedrooms and has been refurbished to a high standard.

Barbados – $1.5m

In landscaped grounds, this three-bedroom villa looks out to the sea from almost every room. The property also benefits from having lots of space and privacy.

French Riviera – €1.69m

With its own guesthouse, this 18th century ancient forge combines classic features and modern comforts.

Les Alpilles, France – €1.47m

This four-bedroom house has original features such as terracotta floors. Hidden behind pine woods, the property has three hectares of land and a salt-water swimming pool.

Loir Valley, France – €1.3m

In an elegant architectural style, this 19th century chateau has seven bedrooms, oak parquet floors, marble fireplaces and cherry wood panelling. The park surrounding the property has around 25 acres.

Cote d’Azur, France – €1.49m

This Provencal five-bedroom villa is close to Nice airport and has been redesigned with a contemporary south-facing façade.

 

 

 

 

Lib Dem’s reveal Countryside Charter

Published On: April 23, 2015 at 3:39 pm

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As the General Election draws ever nearer, campaign trails are well underway as party leaders jostle for position and more importantly, votes from the undecided members of Britain’s electorate.

Nick Clegg has just introduced the Liberal Democrat’s Countryside Charter, under which homeowners with additional property in rural areas could face paying double rates of council tax.

Priced out

Unveiling his proposals, Mr Clegg said it was essential that local residents were no longer priced out of the property market. The Countryside Charter will see local authorities able to charge up to 200% council tax in certain areas.

On a visit to St Austell in Cornwall, Clegg highlighted that particular area as one that could benefit from the introduction of his new legislation. Clegg said that his levy could help, ‘particularly in such a wonderful part of the country as this is where there are so many people with second homes and where the prices, because of that, are way beyond the reach of many young people wanting to get their feet on the first rung of the property ladder.’[1]

A 2011 census found that Cornwall was the local authority where the largest number of UK residents registered a second address. The census showed that 22,997 people who used a different property as their main place of residence had an additional home in Cornwall, used for 30 days or more per annum. Other leading areas were Gwynedd and North Norfolk. [2]

Lib Dem's reveal Countryside Charter

Lib Dem’s reveal Countryside Charter

 

Potential 

On launching the Countryside Charter, Mr Clegg also said that bridging the gap between rural and urban areas by providing high-speed broadband was high on his agenda. Clegg said that, ‘the Liberal Democrats want to unlock this potential so rural areas and the rest of the UK can thrive.’ He said that this could be achieved by providing, ‘good local services, appropriate infrastructure and more housing.’[3]

[1-3] http://www.bbc.co.uk/news/election-2015-32388036