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Em Morley

Landlord claims over £70,000 for damages done by popstar star Tulisa Contostavlos

Published On: October 18, 2019 at 9:57 am

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Thanks to an inventory check-in and check-out report, a landlord in North London was able to provide sufficient evidence for their claim against former N-Dubz star and X Factor judge Tulisa Contostavlos.

Landlord Andrew Charalambous was paid over £70,000 for damages after it was heard that the luxury home had been ‘trashed’ during her tenancy.

The landlord claimed the three-bedroom property, located in Enfield and costing £3,466 per month to rent, was let in ‘tip-top condition’ but returned to him in an ‘appalling’ and ‘unlettable’ state.

The reported damage carried out between September 2014 and July 2016 included:

  • A smashed sink
  • Cigarette burns
  • Stains
  • Doors ripped from hinges

Contostavlos’ lawyer argued that the damage was not caused by her and that it was not above ‘normal wear and tear’. However, judge David Saunders ruled against her and she was ordered to pay compensation, interest and legal costs in excess of £70,000 to Charalambous.

The inventory report that provided this evidence was undertaken by Mitchel Walters, the owner of No Letting Go’s Barnet and Enfield franchise. It deals with many high-end properties in the capital.

The landlord has described the inventory work carried out at the property as ‘excellent’.

Mitchell Walters comments: “We were pleased to be able to contribute towards helping the landlord win compensation in his case against the former tenant as the property was treated very poorly and would have cost him thousands to renovate and repair. Our inventory reporting helped to demonstrate its pristine condition at the start of the tenancy.

“Hopefully the high-profile nature of this case will help to remind landlords and letting agents about the potential financial implications of property damage if they don’t have professional and comprehensive measures in place.”

Nick Lyons, CEO and Founder of No Letting Go, adds: “We can see from this case the importance of an independently and professionally compiled inventory.

“It’s clear that the type of damage being reported was certainly not wear and tear, but when serious disputes between landlords and tenants like this occur, being able to prove it through evidence becomes crucial if landlords want to recover costs for repairs and replacements.

“This case also shows that it doesn’t matter whether a rental property is at the very top or bottom end of the market, landlords and letting agents need to follow the same procedures when it comes to documenting its condition before, during and after a tenancy if they won’t ensure they are protected against damage.”

NLA & Portico present the London Landlord Seminar

Published On: October 18, 2019 at 9:06 am

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The annual London Landlord Seminar is just over a month away and this year the key theme will be ‘Your Money’.

Portico has highlighted that landlords are the only business to be taxed on their turnover. With this in mind, this year’s seminar will focus on how landlords can make their money work harder and investments go further.

The event, hosted by Portico and the National Landlords Association (NLA), will be held on 20th November 2019 at the Institute of Directors in London.

Portico, London’s leading estate agents, and Richard Blanco, NLA London Representative, will be providing an update on the rental and sales market in the capital. There will also be an opportunity to network with other landlords.

We will be exhibiting at the event with our sister company Just Landlords, and we’re also very keen to attend the detailed panel discussions, led by property experts. The topics include:

  • London Hotspots & The Housing Market Review | Portico
  • Getting the Best Mortgage | Jane Simpson, Director, NLA Mortgages
  • Flourish in the New Tax Regime | Mark Stemp, Partner, Crowe UK
  • Policy & Regulatory Briefing | Meera Chindooroy, NLA Head of Policy
  • Panel Discussion – After Section 21

We’re particularly eager to hear the discussion about what the future may hold once Section 21 has been abolished, as the Government doesn’t seem to have its intentions completely organised, as of yet…

By the end of the evening, landlords will have a clear picture of the London market and some reassurance and guidance on how to plan ahead into 2020!

Tickets are £25 or £10 if you’re an NLA Member with your promo code. Click the link to buy tickets: www.portico.com/seminar/

Arrive 6.30pm for 7pm start until 9.30pm on 20th November 2019

Institute of Directors, 116 Pall Mall, London, SW1Y 5ED

Nearest Tubes: Charing Cross, Piccadilly Circus

If you have any questions about the event, please give Portico a ring on 0207 099 4000.

Landlords should look north for strongest buy-to-let profits

Published On: October 17, 2019 at 9:32 am

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Scotland and the North West have been highlighted as the most profitable areas for property investment in 2019/2020, according to TotallyMoney.

The results of the credit expert’s latest research reveal:

  • The UK buy-to-let market is currently doing well. Many of the best performing postcodes in the UK turn a 7% to 8% yield
  • The highest returns in the UK can be found in Liverpool’s L1 postcode (10% yield)
  • Two Scotland postcodes have made the top three and a total of nine Scottish areas feature in the top 25 of the best yields
  • All postcodes in the top 25 have property asking prices under the current UK national average of £232,710
  • St Albans’ AL5 postcode has the lowest yield in the UK, a poor 1.95%. This is closely followed by Ipswich’s IP13 at 1.96%

Despite the ongoing changes in landlord tax relief and an increase in landlord responsibilities, TotallyMoney’s research shows plenty of UK postcodes return healthy profits for property investors.

Top 25 UK buy-to-let postcodes

  • Liverpool’s L1 boasts a strong 10% profit margin, smashing the 3% yield many of the UK’s postcodes offer. Properties can be bought for an average pf £90,000 and can bring in a median rental value of £750
  • The North is also doing well, particularly in Falkirk and Glasgow. FK3 and G52 are seeing yields of 9.51% and 8.75% respectively
  • The 16 top postcodes are in the North West (predominantly Liverpool) and Scotland
RankPostcodePostcode TownProperties for RentMedian Rental ValueProperties for SaleMedian Asking PriceYield
1L1Liverpool187£750368£90,00010.00%
2FK3Falkirk30£49539£62,4509.51%
3G52Glasgow46£59566£82,0008.71%
4L11Liverpool55£65031£90,0008.67%
5TS1Cleveland65£42534£60,0008.50%
6KA1Kilmarnock68£45075£64,9958.31%
7L6Liverpool153£57559£85,0008.12%
8LE1Leicester176£667116£100,0008.00%
9LS2Leeds111£82532£125,0007.92%
10S1Sheffield219£75068£115,0007.83%
11CF43Cardiff36£42535£67,0007.61%
12TS3Cleveland60£47563£74,9757.60%
13L2Liverpool115£850106£135,0007.56%
14PA3Paisley42£42543£68,5007.45%
15L3Liverpool282£740360£119,9507.40%
16SR8Sunderland85£450143£73,7257.32%
17G51Glasgow74£59531£97,5007.32%
18NE8Gateshead148£57575£94,9507.27%
19AB11Aberdeen173£60045£99,9957.20%
20G67Glasgow57£45065£75,0007.20%
21G32Glasgow46£47576£79,9957.13%
22L4Liverpool136£47594£80,0007.13%
23G21Glasgow30£55031£92,9957.10%
24LA14Lancaster50£500128£85,0007.06%
25SR5Sunderland46£49540£84,9506.99%

Weak performing postcodes for investment property

  • AL5 in St Albans is at the very bottom for yields, at 1.95%. The average buying price for a property is £800,000, and asking rent is £1,300 per month
  • London’s W8 postcode (Kensington), provides a 2.05% return for landlords, even though average property prices are a hefty £1,962,500.
  • Other commuter spots in the bottom 10 include RG10 in Reading (2.26%), GU10 in Guilford (2.22%) and KT7 in Kingston upon Thames (2.20%).

TotallyMoney spokesperson James McCaffrey, comments on the findings: “Many existing and would-be landlords wonder if buy-to-let is still worth it. Our findings are another source to help property investors answer that question.

“The maps and data clearly show there are pockets of profit for landlord investment this year. And it seems that Scotland and the North are good places to start a buy-to-let property search.

“Landlords should always do their research before committing to a property purchase. Understanding current market trends is part of that. Making sure they’re financially prepared is another.

Most bizarre items left by students? How about a pet python and glow-in-the-dark swear words…

Published On: October 17, 2019 at 8:50 am

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What’s the most bizarre thing you’ve ever found in your property after a tenant has moved out? Giant glow-in-the-dark swear words, a sex toy, and a pet python are a few reported by The Deposit Protection Service (The DPS).

Part of The DPS’ role is processing landlords’ requests for deductions from their tenants’ deposits, and among the claims it received this year was one to cover the costs of removing a snake found in a student’s bedroom.

The swear words were discovered after a landlord believed their living room to have been left in an acceptable condition, only to find four-foot-high swear words appear on the walls at night.

most bizarre items left by students

One landlord had to inform an ex-tenant that they had disposed of a sex toy left behind after the owner had phoned to ask for it back. Another landlord has reported finding an air rifle in a student’s room.

Matt Trevett, Managing Director at The DPS, said: “Like all tenants, students must take care of the place they live in, avoiding or properly repairing any damage and leaving the property as clean as when they arrived.

“Because students are more likely to share their house with others, there can be confusion over who is responsible for checking the condition of their accommodation and reclaiming the deposit when everyone moves out.

“Keeping to the terms of a tenancy agreement and demonstrating that they’ve left the place in good standing is crucial to students receiving their full deposit back.”

Below are 12 tips from The DPS to help students increase their chances of retaining their deposits at the end of a tenancy. 

1.    Check your landlord protects your deposit with a proper deposit scheme, i.e. one backed by the Government.

2.    When you move in, note down any stains, marks or damage and make sure you agree and sign a formal detailed check-in or inventory report that includes date-stamped photographs and accurate descriptions of fixtures, carpets, and appliances. Arguing that the massive iron burn on your bedroom carpet was already there when you moved in, but you didn’t notice it, just won’t fly. MAKE SURE EVERY HOUSEMATE SEES THE REPORT AND HAS A COPY.

3.    If the landlord is unknown to you, make sure you check their name against your university or student union’s list of approved landlords.

4.    Don’t throw your tenancy agreement into a dark corner and retrieve it, mouldy and dog-eared, just before you jet off to Ibiza/Magaluf/Scarborough to celebrate getting through uni. Read it and understand your rights and obligations, then file it safely. 

5.    Record all communication with your landlord in writing, especially anything you agree with them after you move in. Take screenshots of text message exchanges with your landlord because they record dates and even times and will help you if there is a dispute.

6.    File copies of all documents, receipts and emails relating to your tenancy. You will be grateful for your awesome levels of organisation when you prepare to leave your accommodation.

7.    If any defects or issues arise, whip out your phone and report them immediately to the landlord (backed by an email). Don’t put it off. Your landlord won’t mind hearing that ‘a pipe is leaking’ nearly as much as ‘the kitchen has been flooded for a couple of days now’.

8.    If you take photos of damage or problems that occur in the property while you are there make sure they are date stamped.

9.    Remember the legal phrase ‘joint and several’. If one housemate does not ‘fess up’ when something goes wrong, such as a breakage, it becomes the joint responsibility of all tenants. Encourage all housemates to report their (property-related) mishaps. 

10. Even if you keep your own room in a state of pristine perfection, most tenancy agreements stipulate that tenants are also liable for damage to communal areas (n.b. this is a subject to raise at the start of the year and not in a heated discussion on the appalling state of the kitchen during exams).

11. Try not to fall out spectacularly with your housemates and move elsewhere.  You could still remain jointly responsible for the property, because liability generally extends right to the end of the tenancy. 

12. Make sure you attend the checkout inspection at the end of the tenancy and sign the agreed documentation. (You can take your own photographs, by the way).

Accidental landlords in UK decline for first time in five years

Published On: October 16, 2019 at 8:58 am

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The number of ‘accidental’ landlords joining the industry has begun to drop, according to a new analysis from Hamptons International.

The agent has estimated that one in 14 (7.1%) properties entering the rental market across Britain so far this year were listed for sale within the last six months.

It is considered that a slowing sales market has triggered some property owners to opt for letting their property instead of selling them on. This means that they have become ‘accidental’ landlords.

However, the overall proportion of homes let by ‘accidental’ landlords appears to be on the decline. Since 2018, this number has fallen by 8.6%. This is likely to be due to recent tax and regulatory changes in the private rental sector (PRS), with some facing increasing bills.

London apparently has the highest number of ‘accidental’ landlords, according to Hamptons International.

10.1% of homes listed to rent in the capital have been up for sales during the previous six months of 2019. This has actually decreased from 12.6% in 2018.

Aneisha Beveridge, head of research at Hamptons International, has commented: “Despite a weaker sales market, which tends to encourage accidental landlords, the proportion of homes to let having previously been listed for sale has fallen for the first time in five years.”

“Lower stock levels mean that the South continues to drive rental growth.”

Scotland and Wales have both seen the smallest changes in properties let by ‘accidental’ landlords, at -0.4% and -0.3% respectively. 

Scotland is at the bottom of Hamptons International’s table for percentage of properties let by ‘accidental’ landlords, whereas Wales is second:

– London, 10.1%

– Wales, 8.0%

– North East, 7.8%

– North West, 7.6%

– East of England, 6.2%

– South East, 6.0%

– South West, 5.8%

– West Midlands, 5.6%

– Scotland, 5.4%

– East Midlands, 5.3%

– Yorkshire and the Humber, 5.1%

August mortgage trends show drop in buy-to-let homes purchases

Published On: October 16, 2019 at 8:27 am

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The latest mortgage lending trends data from UK Finance has been released, highlighting that fewer buy-to-let home purchase mortgages were completed in August 2019 than in the same month in 2018. 5,900 were completed, down by 3.3% on the previous year.

The highlights for august mortgage trends also include:

  • There were 13,800 remortgages in the buy-to-let sector, 0.7% fewer than in the same month in 2018.
  • There were 18,640 new remortgages with additional borrowing in August 2019, 2.9% fewer than in the same month in 2018.
  • For these remortgages, the average additional amount borrowed in August was £55,000. 
  • There were 18,100 new pound-for-pound remortgages (with no additional borrowing) in August 2019, 2.3% fewer than in the same month a year earlier.
  • There were 35,010 new first-time buyer mortgages completed in August 2019, 0.7% more than in the same month in 2018. 
  • This is the highest monthly total since August 2007 when there were 35,070 new first-time buyer mortgages. 
  • There were 35,380 homemover mortgages completed in August 2019, 5.5% fewer than in the same month a year earlier.

Shaun Church, Director at Private Finance comments: “The number of first-time buyers has reached a 12 year high in the UK. While home-movers have been paralysed by Brexit uncertainty, first-time buyers have capitalised on favourable market conditions, taking advantage of easing house price growth, record-low mortgage rates and new product innovations to make their first step onto the property ladder.

“Government and industry must not, however, think that their job is done when it comes to first-time buyers. The average age of a first-time buyer in the UK remains high at 32, and many of today’s new homeowners are taking out mortgages with terms lasting as long as 40 years in order to afford repayments.

“This new generation of homeowners may therefore not achieve mortgage free status until their early 70s. Continued efforts need to be made to ensure that homeownership remains attainable early in adulthood, to avoid jeopardising this generation’s financial security later in life.”