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Em Morley

What can landlords learn from Grenfell?

Published On: December 9, 2019 at 9:54 am

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landlords learn from Grenfell

The Grenfell Tower fire now happened two and a half years ago. It was the UK’s worst residential blaze since the Second World War and is currently being investigated on a number of fronts.

Strong themes are beginning to emerge, showing that lessons must be learned from this terrible incident. Landlords and building managers have a responsibility to protect their tenants

Sir Martin Moore-Bick, leader of the public inquiry into Grenfell, has outlined the failure of multiple parties, over a period of years, to comply with, or ensure continued compliance with building regulations and related safeguarding legislation. He concludes that this played a key role in the tragedy of Grenfell.

Furthermore, he states that there was a failure to learn from similar incidents that happened before Grenfell, for example, the fire at Lakanal House in 2009. 

The current parliamentary green paper on social housing, calls for landlords to provide safer, better quality social accommodation and to listen to their tenants’ views and concerns.

The Hackitt Report, published in May 2018 describes the building/social housing sector as having a ‘race to the bottom’ mentality. Whether this is due to ignorance, laziness or because the system discourages good practice is unknown but the fact is that current behaviour often puts lives at risk.

What can be done to change this?

Primarily, the Hackitt report calls for change. It focuses mostly on HMOs and high rise buildings, but in combination with the parliamentary green paper it is clear that those creating, or not alleviating risk will be held accountable across the rental sector. Landlords and housing providers must pay attention and act now. 

The Hackitt report recommends a very clear model of risk ownership which will hold everyone involved in building management to account, overseen by a new Joint Competent Authority. In the post-Grenfell era, building regulations enforcement will be tougher than ever.

Rather than being based on complex rules and guidance, Hackitt calls for an outcomes-based model of accountability that will apply to responsible parties throughout the lifetime of a building, and this is a crucial point.

In an outcomes-based system, responsible authorities such as landlords and housing associations have the freedom to innovate and look beyond current systems and traditional approaches. What matters is that buildings are protected from fire and residents protected from its dangers, full stop. The approach is not prescribed. 

In other words common sense must be applied. If something looks dangerous, then it is the landlord or building manager’s responsibility to fix or remove the problem regardless of whether it is specifically mentioned in any previous guidelines. If a tenant raises an issue regarding safety then it is your responsibility to investigate and deal with it. 

Everyone involved in housing provision must act in response to Grenfell. And it must never, ever, be allowed to happen again.

Good Move’s tips to help sell your house this winter

Published On: December 9, 2019 at 9:12 am

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sell your house this winter

When it comes to selling your house, it’s known that winter isn’t the best season for success. Whether it’s the bad weather putting people off viewings or families wanting to stay settled for the holiday period, everyone has their reasons to wait for the new year.

Looking at the facts, Government data shows that the six colder months of 2018/19 (October to March) saw a decrease in transactions. There were around 10,000 fewer monthly house sales in the UK than the following six warmer months (April to September 2019).

To help those keen to fight the odds and achieve their goal of moving in winter, Good Move has put together its tips. These ideas will help to make sure demand for a property stays hot, even during the colder months, making it easier to sell your house this winter:

1. Get rid of discouraging DIY tasks

From shaky windows to drilled holes left in walls, spend time fixing the little DIY jobs in your house. They might just feel like tiny inconveniences while living there, but to potential buyers, these represent yet another job to do after the ordeal of moving house. Quickly touch up any paintwork, such as skirting boards or the front door, to make your home as attractive as possible.

 2. Be sparing with scents

It makes sense to fill your house with pleasant smells to entice buyers, but remember that not everyone likes the same fragrances. Try and avoid strong-smelling air fresheners and candles as they can put buyers off, and opt for neutral scents, like fresh cotton, instead.

Baking sweet treats like cookies, or perhaps mince pies if it’s around Christmas, leaves a homely smell that will give viewers positive thoughts towards your house, and leaving pastries out on the side for people to help themselves will help viewers feel welcome

3. Keep it cosy

There is perhaps nothing more inviting than a nice warm home, so make sure you are offering that welcoming experience to everyone viewing your house. They have likely had to navigate an unfamiliar neighbourhood to get there, so make sure your home is warm and cosy (but not too hot!). Even little details like warm lighting or knitted throws on the sofa can help people imagine themselves feeling cosy and at home in your house.

4. Let in some light

As the days get shorter, even an early afternoon viewing can feel gloomy in the winter months. Lighting up the house will help to combat this. Keep all the curtains and blinds open (unless the view outside is particularly unsightly) to let in as much natural light as possible, and turn on as many lights in the house as necessary. A well-lit room feels bigger and more inviting and makes people more likely to associate positive feelings with the house.

5. Keep the garden tidy

Many people tend to neglect the garden during winter as it’s colder and people spend less time outside. But for house viewers, the garden is often a big part of their decision process. Ensure your outdoor space is tidy and well-kept to help buyers see its potential for the warmer months. Additionally, during snowy weather, make sure your path and driveway are free from snow and ice. Slipping over on the way to the front door isn’t going to leave a favourable first impression with potential buyers!

6. Keep pets away

As much loved as they may be, pets can put off prospective buyers. Some people viewing the house may have allergies, while the lingering smell of pets, especially a wet dog smell, can be a turn-off for buyers who aren’t animal lovers. Where possible, keep your pets elsewhere during viewings and make sure to vacuum well to get rid of stray hairs that can trigger viewers’ allergies.

Ross Counsel, Director at Good Move, comments: “Winter can be a really difficult time to make a sale, with the gloomy weather, people’s reluctance to move house during the colder, shorter days, and even buyers and estate agents taking time off for Christmas. Often, things can pick up in the new year as more people are looking for a new start, but if you’re still struggling, hopefully these tips will go a long way. 

“Alternatively, you can try using a quick house sale company like Good Move, which will complete your sale within three weeks with no chains involved.”

How will the election affect the property market?

Published On: December 6, 2019 at 9:58 am

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How will the election affect the property market?

Real estate and development company Seven Capital has revealed research today comparing property prices immediately following previous elections and longer-term prices.

With the next election now less than a week away, it’s interesting to see which way property prices have swung after each election since 1970.

How much do elections affect house prices?

Generally speaking, the months either side of an election show, at best, modest price growth, but in the months following the election, a number of factors come into play. These include the length of the PM’s term, their stance on the housing market and any other major political events. 

Following Cameron’s successful second election in May 2015, house prices grew 4.56% over the following six months, from £195,313 to £204,223. Whilst May’s election in June 2017 saw slightly more modest growth than this, the UK still saw a 3.62% increase in house prices in the six months following, from £221,833 in election month, to £229,865. This is in comparison to the 1.07% growth over six months following the coalition government forming in May 2010 and the 1.52% and 2.45% growth over Blair’s second and third elections in 2001 and 2005 respectively.

What will happen to house prices after the 2019 election?

Generally speaking, the level of certainty that a political event (election, referendum, Brexit debates) brings determines the amount of growth in house prices. Resignations have led to stagnation of growth;  just 0.01% following May’s takeover from Cameron and 0% when John Major took over from Thatcher in April 1990.

Officially elected PMs on the other hand, tend to see a boost in house prices, as can be seen in the table below:

Andy Foote, director at SevenCapital commented: “What the figures over the past two elections have shown us is that, despite much speculation around whether the UK’s house prices are stagnating, the reality has been far more positive.

“Should investors and homebuyers be worried about the outcome of the election? If history is to be repeated, they should expect modest growth initially, but once the new PM is in place and their plans for the UK, the economy and, importantly Brexit are laid out, there’s no reason at the moment to not expect a positive rise over the following six to 12 months.”

New anti-money laundering rules for letting agencies from January 2020

Published On: December 6, 2019 at 9:33 am

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Changes to Anti-Money Laundering (AML) rules should not be overlooked, despite everyone’s main focus currently being the upcoming General Election.

On 10th January 2020, new AML rules will be put in place. Lettings payment automation provider PayProp says that while the political future remains unsettled, with a raft of new rented sector policies put forward, agencies should instead focus on remaining compliant with existing and confirmed incoming regulation.

This will be the first time that letting agents will explicitly fall under the scope of AML rules. PayProp warns that with just a few weeks to go before the Fifth Directive comes into force, letting agents must act now to avoid falling foul of the law.

The only certainty is continued uncertainty

We expect the outcome of the election to provide some clarity over the country’s future direction. However, questions will remain about housing policy, as well as other issues (such as Brexit) that affect housing.

Neil Cobbold, Chief Operating Officer of PayProp UK, comments: “The three major parties have a range of different plans for the rental sector.

“The Conservatives have proposed to introduce Lifetime Rental Deposits and committed to scrapping Section 21.

“Meanwhile, Labour have put forward proposals for rent controls and annual property MOTs, while the Liberal Democrats have pledged to introduce mandatory landlord licensing and a Help to Rent scheme.

“After December 12, there will undoubtedly be new rules for agents to think about. However, they may need to be consulted on and will take time to implement.”

“Agencies should, therefore, focus on more certain compliance issues, particularly the Fifth Money Laundering Directive which comes into force in January no matter who wins the election.”

Agents must focus on AML procedure

These new rules for EU AML will require letting agencies to carry out checks on landlords and tenants involved in rental transactions of €10,000 or more per month. This is currently equivalent to approximately £8,500.

We are still waiting on the Treasury to publish the legislation that would transpose the Fifth Directive into UK law. However, the consultation highlighted that it should be considered whether this threshold should be lowered. Whether or not self-managing landlords should also be covered by the new rules is also in question.

Cobbold says: “While the Fifth Directive may not affect all letting agencies, those which are impacted will be required to take on significant additional work.

“Given that we do not yet know how high the threshold will be set, estate and letting agents of all sizes should stay informed about their potential obligations under AML rules.

“As well as carrying out the necessary checks on landlords and tenants, letting agents will need to consider Politically Exposed Persons.

“Letting agents are also likely to have to register with HMRC for supervision, although the government is considering allowing industry bodies to supervise.

“This regulation will most likely affect both high-end letting firms and agencies with landlords that rent out multiple properties. It’s important that all firms are clear on whether their current transactions come under the scope of the new rules – and on what is required should they need to make checks on high-value transactions in the future.

“We know that HMRC enforces anti-money laundering rules very strictly, so agencies need to make sure they have all the necessary procedures and contingencies in place.”

Expect further AML obligations

Even if some letting agencies do not fall under the new AML regulations, Cobbold believes that they should still prepare for further directives that could affect them in the future.

Cobbold suggests: “The evidence shows that AML regulation is only getting tighter and could eventually cover all lettings and sales agents.

“After a gap of almost 10 years between the Third and Fourth Directives, there has only been a period of just over two years before the implementation of the Fifth Directive. Therefore, agents should be aware that further legislation could appear sooner rather than later.

“To prepare for AML compliance, agencies should review their due diligence processes and ensure staff are aware of the checks they’ll need to make.

“It could also be beneficial to look at payment systems and consider ways in which automation can make compliance processes more efficient and less prone to human error.”

London: First rogue landlord banned under new laws

Published On: December 5, 2019 at 9:08 am

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London: First rogue landlord banned under new laws

London’s first rogue landlord has been banned from letting property by Camden Council. Cesar De Sousa Melo, 45 is the first landlord to be banned under new laws that came into effect last April.

The order, secured by Camden Council at a tribunal in November prohibits Melo from letting any housing for the next four years. Should he breach this ban, he faces up to 51 weeks in prison and/or a Civil Financial Penalty of up to £30,000. 

The tribunal heard that the rogue landlord had sublet three flats, one in King’s Cross, a second Bloomsbury and the final in Euston. In June last year, the King’s Cross flat was raided and found to be overcrowded and not to have working fire alarms, putting tenants at serious risk. 

The three bedrooms had beds crammed in, including four bunks in one room. The kitchen was also too small for all the people living in the property and a door was hanging off its hinges.

In August of last year, the other two flats were raided and found to also be in a bad state of disrepair and to be breaking many safety and habitation laws under the Housing Act.

It was claimed in the tribunal that the tenants lives were put at risk by living in the flats. A combination of non-working smoke alarms and poor fire escape routes were presented as evidence of this. In addition, most of the rooms did not have working central heating. 

The tenants in all three homes were described as vulnerable to exploitation owing to their age and nationalities. 

Melo given some of the tenants tenancy agreements in which he claimed he was the landlord, although he was in fact subletting. He has been fined £29,000 for offences involving the three flats.

Homes England chipping away at housing deficit at ever-growing rate

Published On: December 4, 2019 at 10:24 am

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Homes England

The Homes England housing statistics for the period 1st April 2019 to 30th September 2019 have been released. The report for which includes the following highlights:

  • During this six-month period, there were 16,955 housing starts on site and 14,792 housing completions.
  • Levels of starts were the highest for 10 years and the second highest they have been since 2011.
  • 12,310 (73%) of housing starts on site in this period were for affordable homes. This is a 24% increase on the same period last year.
  • 5,157 affordable homes started were for Affordable Rent, a reduction of 9% on last year.
  • 10,295 (70%) of housing completions were for affordable homes.
  • 6,405 affordable homes completed were for Affordable Rent.

Joseph Daniels, founder of modular developer Project Etopia, comments: “There is a long way to go to plug the hole in England’s housing deficit, but Homes England is chipping away at it at an ever-growing rate, reaching a 10-year high for starts on new homes. 

“In particular it is making much-needed inroads in affordable housing levels, which represents more than 70% of its work. 

“The 24% growth in affordable home starts, compared to the same time period last year, indicates that Homes England is succeeding in driving delivery forward in that area of the market. Its efforts bode well for the coming year with a bumper rise in completions expected to follow.”

Andrew Southern, chairman of property developer Southern Grove says: “The industry is providing affordable homes at an increasingly rapid rate and this is one of the most important trends in house building right now.

“Affordable housing is a growing focus for both private companies and those responsible for spending government support wisely because of the disconnect between property prices and the scale of housebuilding being achieved nationwide.

“The longer the housing crisis persists, the harder it becomes for developers of all kinds to build enough homes to begin to tame rampant house price growth.

“This is a problem that has kept policymakers awake at night for as long as the housing crisis has been a live issue. 

“It has now become received wisdom that affordable housing is the only way to deliver realistically prices homes for first-time buyers, young families and young professional on anything approaching a sensible time scale. It’s an incredibly important card to hold now, and in some areas such as London, where house prices are least affordable, this socially conscious initiative has already become an essential strategy.”