Written By Em

Em Morley

Rise in challenges to Property Ombudsman

Published On: April 17, 2015 at 3:20 pm

Tags: legal requirement for agents,Property Ombudsman,tenancy agreement

The latest annual report from the Property Ombudsman has suggested that a growing number of people in the property sector are standing up for themselves.

Findings from the report indicate that more landlords and tenants that are not satisfied with their tenancy agreement are now prepared to challenge the source of the problem.

Changes in legislation have made it a legal requirement for agents and property managers within England to become a member of a government accredited scheme.

Challenges

The number of challenges to the Ombudsman were up 42% in 2014, in comparison to the previous twelve months. Ombudsman spokesman Christopher Hamer said that, ‘2014 saw continued and significant growth in the private rented sector.’ He went on to suggest that of the supposed 1.6 million private landlords, many do not have the relevant experience or qualities needed to perform their role properly. This, Hamer feels, is why, ‘the role of letting and managing agents in providing quality customer service based on a comprehensive knowledge of relevant legislation is more important now than ever before.’[1]

Mr Hamer continued by calling for a carefully constructed regulatory regime in the private lettings sector. After acknowledging the different legislation that has been passed in the previous 12 months which has dealt with differing parts of the sector, Hamer said it was now time to, ‘bring all such legal obligations into a coherent and sensible single law.’[2]

Increases

More findings from the report show that there was 19% rise in registered membership letting offices, with a 40% overall rise in letting cases received by the Property Ombudsman. 33% of these cases were resolved by mediation.[3]

Of the issues reported to the Ombudsman, 11% related to repair and maintenance. 54% of complainants were landlords, as opposed to 44% for tenants. 23% of complainants hailed from the South East, 21% from Greater London and 9% from the South West.[4]

[1-4] http://www.propertywire.com/news/europe/england-property-ombudsman-report-2015041710404.html

Tax Changes that the Next Government Could Bring

Published On: April 17, 2015 at 3:15 pm

Author: Em Morley

Categories: Landlord News

Tags: GE2015,general election,housing policies,housing tax,mansion tax

Approaching the general election, there are many proposals surrounding taxes and housing. It seems the political parties are trying to limit the amount people can earn from property, especially those with expensive assets.

If you own a house, here are the five main taxes you should know about:

Capital Gains Tax (CGT)

At present, if you own your home and decide to sell it, you do not have to pay CGT. If you own a second or more houses, you must pay 18% if you a low-rate tax payer, and 28% if you are a high-rate tax payer.

These are some of the suggestions for CGT:

To charge CGT on all homes.
The Liberal Democrats have proposed taxing at 35%.
For CGT to match income rates, for example, 20%, 40%, and 45%.
Tax Changes that the Next Government Could Bring
The Lib Dems are also suggesting that the CGT allowance decreases from £11,000 to £2,500 a year.

Mansion tax

The two mansion tax proposals are from Labour and the Lib Dems.

Labour would impose the tax on homes worth £2m or more and this will grow in line with the average increase in prices, so the amount of people charged should not rise. If you are charged the tax but earn less than £42,000 per year, you can deter paying until the property is sold. It is thought that the mansion tax will cost £250 per month and will be in a banded system.

The Lib Dems have just changed their mansion tax proposal. The cost would begin at £2,000 per year. Read more about their plans here: /lib-dem-mansion-tax-bands-revealed/.

Personal allowance

The plans around this area would be positive for all, including landlords. Especially benefitting people on low incomes, the Conservatives and Lib Dems would raise the limits on what you can earn without paying tax.

In 2010, the limit was only £6,475 and now it is £10,600, which is a significant leap. For property investors, £10,600 is a lot of rent to collect tax-free.

The Conservatives wish to increase this to £12,500 by the end of the next parliament.

VAT on repairs and renovations

It is hoped that VAT will drop to 5% on repairs and renovations on properties, either a home or rental accommodation. The current charge is 20%, which means the tradespeople obliging the law are more expensive, as they pay the correct amount.

This can lead to more people using rogue tradespeople, as their quotes are lower. If the VAT is dropped, it will be fairer for all.

Inheritance Tax

Many parties are proposing more tax for property and landlords, but the Conservatives will increase the Inheritance Tax threshold to £500,000, which would benefit lots of families. Many will not have to pay the tax at all.

The current threshold is £325,000 but has not been increased for many years. However, during this time, some parts of the country have experienced substantial property price rises which cause people to pay Inheritance Tax.

Buyers Will Need an Extra £12,000 to Move House

Published On: April 17, 2015 at 1:54 pm

Author: Em Morley

Categories: Finance News

Tags: move house costs,property prices

A lot of the focus surrounding the property market has been on house prices recently. However, the cost of moving home has risen significantly in the last ten years.

Buyers Will Need an Extra £12,000 to Move House

Research has found that moving house costs almost £12,000, a rise of 59% in the past decade.¹

Buyers have to pay a huge £11,894 in expenses covering Stamp Duty, estate agent and surveyors’ fees, and removals, the study revealed.

In 2004 the same costs came to £7,475, according to a survey by the Post Office and Centre for Economics and Business Research.¹

Head of Mortgages at Post Office Money, John Willcock, says that first time buyers often don’t consider the additional costs and focus more on saving a deposit.

He says: “Although house prices may continue to rise, there are steps buyers and movers can take to reduce the amount they pay on top of this. Planning ahead is essential and potential homebuyers should be setting aside savings specifically for these costs. These add-ons should be considered as part of the overall cost of buying or moving home.”¹

The study discovered that London is the most expensive place to move home, costing an average £27,946. Northern Ireland is the cheapest at £6,453.¹

It is predicted that moving costs will reach an average of £15,414 by 2020, but the research indicates that aspiring buyers are not saving enough.

¹Shaw, V. (2015) ‘Saved enough for a house? You’ll need an extra £12,000’, Metro, 17 April, p.28

Britain’s Most Dangerous Student Spots

Published On: April 17, 2015 at 1:52 pm

Author: Em Morley

Categories: Landlord News

Tags: dangerous area for students,level of crime,University towns and cities

New findings have highlighted Britain’s, ‘most dangerous,’ University towns and cities, with a number of surprising entries in the top ten.

Perhaps most surprising, was that Brighton, renowned for a laid back living environment and a London-commuter hotspot, came out as the most dangerous area for students to live.

Findings

The investigation, conducted by StuRents.com assessed over 535,000 crimes within student areas in 64 towns and cities across England and Wales in order to ascertain where undergraduates are most at risk. Brighton, Swansea and Stoke on Trent ranked first, second and third.

StuRents.com looked at all recorded crimes against all persons, whether student or non-student, in all prominent student housing areas. This data showed that students in Brighton lived in the area with most recorded crime in 2014, with an average number of 829 incidents per every thousand residents. Swansea recorded an average of 633 crimes per thousand residents, with Stoke on Trent recording 534.[1]

The top-ten most dangerous places were found to be:

Brighton
Swansea
Stoke-on-Trent
Newcastle
Stockton
Sunderland
Middlesborough
Bolton
York
Wolverhampton[2]

Crimes

StuRents.com stated that the types of crimes committed varied by each area. Brighton saw most sexual assaults, whereas Swansea saw the most drug offences in the last year. Wolverhampton saw the most robberies and Cambridge, not in the top ten, was highlighted as the place where bicycle theft was most prominent.

Co-founder of StuRents.com Michael Rainsford, stated that, ‘crime statistics serve as an important metric for students looking to make an informed choice about where to live.’ Rainsford believes that the survey from StuRents has uncovered, ‘alarming’ statistics that show, ‘students live in areas with crime rates 2.5 times higher than the national average.’[3]

Britain’s Most Dangerous Student Spots

Safety

Mr Rainsford also said that investment in the student accommodation market has been, ‘huge,’ this year. He added that StuRents, ‘hope that going forward, student safety will be high on the agenda.’[4]

On the flip side, the investigation showed that Egham in Surrey, home to the Royal Holloway University, had the lowest level of crime in all student areas. Egham averaged just 57 crimes per every thousand residents in student living placements. High Wycombe ranked as the second safest student area, with Bath at number three.

The top ten safest areas were found to be the following:

Egham
High Wycombe
Bath
Falmouth
Bedford
Loughborough
Medway
Norwich
Durham
Hull[5]

[1-5] http://snip.ly/hlq2#http://www.telegraph.co.uk/education/universityeducation/11542618/Revealed-the-safest-and-most-dangerous-places-to-be-a-student.html

Lack of Houses For Sale Could Push Prices Higher

Published On: April 17, 2015 at 1:22 pm

Author: Em Morley

Categories: Finance News

Tags: housing market,housing market predictions,lack of homes up for sale,property price rises

It is predicted that property prices in the UK could begin to increase again, after a second monthly drop in the amount of houses being put up for sale, according to surveyors and estate agents.

Lack of Houses For Sale Could Push Prices Higher

Despite the sales and inquiries from prospective buyers figure steadying in March, the Royal Institution of Chartered Surveyors (RICS) says that the amount of its members expecting prise rises in the next year is at the highest level since spring 2014.

This prediction is fuelled by a shortage of homes coming onto the market, it says, as March experienced the second consecutive drop in properties up for sale.

In most of the country, RICS says that the disproportion of supply and demand is forcing prices up. Around the UK, 21% more surveyors saw an increase in property prices in March, up from 15% in February. Additionally, 15% more surveyors predicted price rises in the next three months, compared with 10% in February.¹

70% of surveyors expect price increases in the next year with average predictions of 2.5%, which is a ten-month high.¹

Simon Rubinsohn, Chief Economist at RICS, says: “The boost that was given to the housing market by the Help to Buy scheme has begin to dissipate and activity levels have slipped back.

“Even more worrying are the tentative signs that price momentum could be set to pick up once again as the supply of stock to the market continues to fall.”

Rubinsohn also mentioned that election uncertainty could be having an affect on the housing market.

However, he concludes: “Underlying the trends visible in the latest survey is a very real housing crisis that will urgently need to be addressed by the next government.”¹

¹http://www.theguardian.com/society/2015/apr/16/fall-in-homes-for-sale-could-force-prices-up

The Homes that £1m Will Buy You Around the UK

Published On: April 17, 2015 at 11:59 am

Author: Em Morley

Categories: Property News

Tags: London property,mansions britain

Depending on where you live in Britain, you will have a very different idea of what £1m can buy you. House prices around the country vary so much that £1m could buy you a mansion or a one-bedroom flat.

Take a look at some of the properties with a £1m price tag¹:

Stracathro Mansion House, Stracathro, Brechin, Angus, Scotland: £1m, Strutt & Parker

Stracathro Mansion, Scotland

This picturesque mansion has nine bedrooms and four reception rooms. It is a listed building in the Palladian style.

The Knapp, Hilton, Blandford Forum, Dorset: £1m, Savills

The Knapp, Dorset

This eco house has gorgeous views and four bedrooms.

Trinity Barn, Filby Broad, Norfolk: £1m, Fine & Country

Trinity Barn, Norfolk

This contemporary barn with huge modern windows is found on the banks of Filby Broad.

Tralee House, Worcestershire: £1m, Knight Frank

Tralee House, Worcestershire

This home dates back to 1914, but has large extensions by the current owners. The red brick house has six bedrooms.

The Adam Suite, Colesdane, Harrietsham, Kent: £1m, Jackson-Stops and Staff

The Adam Suite, Kent

This apartment is contained within a Palladian-style building that has a roof terrace and 360° views of Colesdane. The apartment has three bedrooms and is close to Leeds Castle.

Bridge Farm, Melbury Osmond, Dorchester, Dorset: £1m, Knight Frank

Bridge Farm, Dorset

This Grade II listed home has five bedrooms, a swimming pool and 2.5 acres.

74-76 Holgate Road, York: £1m, Savills

74-76 Holgate Road, York

At present, this property is a 13-bedroom guesthouse, but could become a large home or two single houses. There is parking and a walled garden around the property, which is 0.5 miles away from York railway station.

The Old Vicarage, Chilcompton, Somerset: £1m, Fine & Country

The Old Vicarage, Somerset

This regency vicarage is Grade II listed and has five reception rooms, seven bedrooms and stunning gardens.

The Old Court, Burford, Oxfordshire: £1m, Jackson-Stops and Staff

The Old Court, Oxfordshire

This Grade II listed courthouse has a walled garden and is situated on Burford’s historic hill.

Greenfields Farm, Hunsterson, Nantwich, Cheshire: £1m, Strutt & Parker

Greenfields Farm, Cheshire

A Grade II listed farmhouse, Greenfields has six bedrooms, outbuildings and a paddock.

Oak Cottage, Luscombe Hill, Dawlish, Devon: £1m, Knight Frank

Oak Cottage, Devon

The current owners of this arts and crafts house have renovated it throughout. It has beautiful views from the hill.

Oakley Street, Chelsea, London: £995,000, Foxtons

Oakley Street, Chelsea

You can buy a one-bedroom apartment on this street in Chelsea, which has an office and roof terrace.

The Porch House, Dingley Hall, Market Harborough, Leicestershire: £995,000, Strutt & Parker

The Porch House, Leicestershire

This home is part of a Grade I listed hall and has four bedrooms, a lake and 142 acres. Aristocrats, royal advisers, attorney generals and admirals previously owned Dingley Hall. It was built in the reign of Mary Tudor and a classical wing was added in 1680.

Porchester Place, Central London: £995,000, Kay & Co

Porchester Place, Central London

On the 20^th floor, this two-bedroom flat has views across the City and Hyde Park.

Hill Barton House, Bondleigh, North Tawton, Devon: £995,000, Strutt & Parker

Hill Barton House, Devon

This four-bedroom farmhouse has a cottage and equestrian facilities with views of the Dartmoor National Park.

The Old Rectory & The Old Coach House, Geldeston, Beccles, Suffolk: £995,000, Durrants

The Old Rectory, Suffolk

This Victorian five-bedroom former rectory has a converted four-bedroom coach house, which is all found within 8.92 acres of formal gardens and paddocks. Stabling and a hay store are found in Geldeston.

Old Court House, Central London: £995,000, Mountgrange Heritage

Old Court House, Central London

An apartment on the third floor has views across Kensington Square. This home has one bedroom and the mansion building has cornicing and high ceilings.

Ivy Waterside Development, Regent’s Canal, East London: £975,000, www.fyfemcdade.com

Ivy Waterside Development, East London

This project is based on the Regent’s Canal between Kingsland Road and Whiston Road, north of Hoxton. A two-bedroom penthouse has 1,100 sq. ft. with views of the City.

Sykes Grange, Lofthouse, Harrogate, North Yorkshire: £950,000, Strutt & Parker