Written By Em

Em

Em Morley

Sharing Netflix password the new key to the door?

Published On: August 23, 2019 at 8:28 am

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Categories: Property News

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Sharing Netflix password the new key to the door?

A new relationship milestone for the 21st century has cropped up: Sharing the Netflix password with your significant other. And what’s more, couples are more reluctant to do this than to share keys to their respective homes!

As we all know, couples progress through a series of classic milestones, ranging from first kiss, to going on holiday together through to the really big ones like starting a family and buying a house. 

New research from Good Move, questioning 2,000 UK adults in relationships found that on average, couples wait 11 months and three days before giving their partner a key to their property. This is over four months quicker than the time people wait before allowing each other use of their Netflix account.

Ross Counsell, Director at Good Move, said: “Giving someone a key to your house is a huge point in a relationship as it shows a lot of trust and commitment, so it was interesting to see that Brits are happy to do so earlier than they are prepared to share streaming services!

“Our research also found that young Brits now consider buying a house as a couple to be a bigger commitment than marriage, which further shows how relationship milestones are changing.”

The research found that the 12 longest relationship milestones were as follows:

  1. Starting a family – 2 years, 2 months, 21 days
  2. Buying a property – 2 years, 1 month, 18 days
  3. Marriage/civil partnership – 2 years, 1 month, 12 days
  4. Owning a pet – 1 year, 9 months, 15 days
  5. Getting a joint bank account – 1 year, 7 months, 21 days
  6. Sharing a Netflix account – 1 year, 3 months, 9 days
  7. Booking a holiday together far in advance – 1 year, 3 months, 9 days
  8. Renting a property – 1 year, 2 months, 27 days
  9. Going on your first holiday together – 11 months, 3 days
  10. Giving each other keys to your respective homes – 11 months, 3 days
  11. Saying ‘I love you’ for the first time – 5 months, 6 days
  12. Showing public displays of affection – 3 months, 18 days

HMRC statistics for July 2019 show a drop in property transactions in the UK

Published On: August 22, 2019 at 9:08 am

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Categories: Property News

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The HMRC’s UK Property Transactions Statistics for July 2019 have been released, showing monthly estimates of the number of residential and non-residential property transactions in the UK.

The report lists the following highlights:

  • The provisional seasonally adjusted UK property transaction count for July 2019 was 86,630 residential and 9,760 non-residential transactions.
  • The provisional seasonally adjusted count of residential property transactions decreased by 8.5% between June 2019 and July 2019, and is 12.4% lower than July 2018.
  • The provisional seasonally adjusted count of non-residential property transactions increased by 2.8% between June 2019 and July 2019, and is 5.8% lower than July 2018.

Andy Sommerville, Director of Search Acumen, has commented on the data: “Much like this rainy August, there wasn’t much sunshine to be found in the property market this past month, as a muted July tells us that most potential home buyers are still concerned about the looming Brexit deadline.

“And the gloom is not set to abate any time soon. The closer we get to a decision on the UK’s departure from the EU, the more likely property owners will want to ‘wait and see’ before making any firm decisions to buy or sell.

“Our latest Conveyancing Market Tracker, which monitors business performance and competitive pressures in the legal property market, confirms this trend has been happening for a while. It found that total number of cases handled by property lawyers fell by over 10% between Q1 and Q2 2019, and 20% since Q2 2016. 

“While property professionals are faced with a tough market, now is the time to think differently and be ready to welcome new ways of doing business. Those who embrace technology to increase efficiencies, make their processes more transparent and speedier are well placed take advantage of better days to come.”

Joseph Daniels, founder of modular developer Project Etopia, has also commented: “Brexit has turned the property market into a game of musical statues. Transactions are still headed only one way — and that’s down. 

“This sickly trend has reared its head in recent months in a way not felt for some years and it is poison to the smooth functioning of the market.

“Brexit has cemented caution into the attitudes of buyers and sellers and the sales slump is all but nailed on now until the political uncertainty settles down.”

Latest Property Activity Index shows UK lettings market uplift in summer

Published On: August 22, 2019 at 8:29 am

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Categories: Lettings News

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Activity has increased across the UK lettings market during July this year, according to the latest data from the Agency Express Property Activity Index.

From the national month on month figures, we can see that new listings ‘To Let’ sat at 8.5% and properties ‘Let’ at 6%. Looking at previous records from the Property Activity Index, we can also see that, while lettings market activity was generally greater throughout 2018, this month’s figures have exceeded those recorded 12 months previous.

Eight of the twelve regions recorded by the Property Activity Index reported increases in new listings ‘To Let’. Ten of these regions reported increases to properties ‘Let’.

The East Midlands achieved the top spot on this month’s leader board with new listings at a healthy 46.7% and properties ‘Let’ at 23.3%. East Anglia also had a fruitful month, with new listings at 27.4% and properties ‘Let’ at 29.6%. Both regions reported record best figures for July.

Other prominent performing regions included:

Properties ‘To Let’

  • South East 16.4% 
  • Yorkshire & Humberside 16.1% 
  • South West 10.8% 
  • Wales 10.8% 

Properties ‘Let’

  • North East 17.2% 
  • Yorkshire & Humberside 7% 
  • South West 6.7% 
  • London 5.8% 
  • Wales 4.3% 
  • South East 4% 

The Property Activity Index shows that Central England saw the largest declines across the market this month. New listings fell for a second consecutive month at -0.50%. Properties ‘Let’ fell to -11%. However, over a three-month rolling period, figures were greater at 3.9% and 0.1%, with year on year activity remaining on trend.

Stephen Watson, Managing Director of Agency Express, says: “July has been an unexpected month for the UK lettings market. Usually we would see slower movement throughout the summer holidays but this month’s activity, which is somewhat reflective of an increase in our customer base has been buoyant. 

“Looking forwards, while we expect to see further increases in August, we don’t envisage a real pickup in activity until September. It will be interesting to see if the current rate of activity continues.

Landlords urged to fight for property repossession rights

Published On: August 21, 2019 at 9:09 am

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Categories: Law News

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Landlords are being urged to back a legal case to protect their rights to repossess properties. 

This follows a recent court case in which a landlord’s attempt to regain their property was deemed invalid due to a dispute over a gas safety certificate.

The landlord was initially granted an order to repossess their property using a Section 21 notice. However, the tenant then successfully appealed on the grounds that they had not been provided with a gas safety certificate before they moved in.

Despite the landlord making the certificate available once the tenancy had begun, it was ruled by the Court that their Section 21 powers were invalid. It referred to a previous similar case in which the certificate was made available less than two weeks after the tenant moved in.

The judge in the appeal stated that if the gas safety certificate was not provided to the tenant before they took up occupation then a Section 21 notice could not be relied on to regain possession. The situation could not be resolved by serving one after the moving in date.

The Residential Landlord Association (RLA) is supporting the landlord, Trecarrell House Limited, at the Court of Appeal, on the basis that so long as the gas safety certificate is provided before the Section 21 notice is served, then it is valid.

The RLA argues that the case could breach a landlord’s rights under the European Convention on Human Rights on the basis that it deprives them of their possession.

It is calling on its members to back the case by making a financial contribution to support the case through a Crowd Justice website that has been launched today.

David Smith, Policy Director for the RLA, said: “Protecting the rights of landlords to repossess properties in legitimate circumstances is key to providing the confidence the sector needs to offer longer tenancies.

“The landlord in this case was not seeking to shirk their responsibilities and provided the certificates that were needed.

“We will fight to ensure that if nothing else, logic prevails. We urge those who agree to support the campaign by making a contribution to the costs.”

Agents urged to prepare as Lloyds Bank announces closure of undesignated client accounts

Published On: August 21, 2019 at 8:11 am

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Categories: Lettings News

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With Lloyds Bank notifying clients that it will be closing undesignated client accounts, PayProp is advising letting agents to have a back-up ready. 

The well-known and widely used bank recently contacted numerous agents, asking them to open separate client accounts for all of their individual landlords.

PayProp believes that this move to close undesignated client accounts could be the bank’s response to existing anti-money laundering legislation, set to be tightened in 2020.

It also acts as an extension of the legal requirement for agents to operate separate client money and business accounts, which has been in force since April this year.

Lloyds contacting agents over undesignated client accounts

It was discovered earlier this month that Lloyds Bank has been contacting letting agencies to notify them that undesignated client accounts will be closed, giving them 60 days’ notice.

Two options have been provided to its letting agent clients:

  1. Close undesignated client accounts and replace them with multiple designated client accounts, or
  2. Close their undesignated account and make ‘alternative banking arrangements’.

Neil Cobbold, Chief Operating Officer of PayProp UK, says: “This appears not to be an isolated incident as several agents claim to have been contacted by Lloyds. Therefore, all letting agencies need to be thinking about the way they will handle their client payments from now on.

“Those that bank with Lloyds must consider whether they want to open individual client accounts for each of their landlords or consider alternative options. Those who use other banks may have to prepare for similar action.”

An extension of Client Money Protection (CMP) rules?

It became a requirement earlier this year for agents to operate separate client money and business accounts, as well as joining a CMP scheme.

The rules require agencies to hold money in a client money account with a bank or building society authorised by the Financial Conduct Authority (FCA). They must also comply with written procedures for handling client money as well as keeping records and accounts that show all dealings with client money.

Cobbold says: “Agents may have thought that the introduction of mandatory CMP and the requirement for separate business and client bank accounts would be enough to ensure transparency and satisfy the banks.

“However, after review, Lloyds Bank appears to have decided that the best way to comply with anti-money laundering regulation is to mandate that any client money must be held in one account per landlord. This approach is likely to have been influenced by current and proposed legislation and could be followed by other banks soon.

“Whatever happens in the future, agencies must have the necessary procedures in place, with a clear audit trail and professional approach to record keeping.”

How can agents manage payments effectively?

With this news from Lloyds on plans to close undesignated client accounts, many agents may be wondering whether they should now consider opening accounts for each of their landlords. They may also be worrying about the prospect of additional banking fees and administration work.

Cobbold explains: “If the thought of opening and managing hundreds of separate client bank accounts is concerning agents, there is a range of things they can do to put their mind at ease.

“They could switch banks or explore PropTech options which could help them to manage their payments using automation.”

“The news from Lloyds should act as a warning for agencies, encouraging them to spring into action and get a plan in place, as this is an issue which is unlikely to go away and could escalate further in the coming months.”

The Guild of Property Professionals discusses Government’s Section 21 changes

Published On: August 20, 2019 at 9:22 am

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Categories: Landlord News

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As part of the suggested changes for Section 21, the Government has proposed to remove Assured Shorthand Tenancies (ASTs) from the Housing Act 1988. This will mean that assured tenancies will be the only tenancy available to landlords.

The Guild of Property Professionals has explained that tenants will be given the option of agreeing to a fixed-term assured tenancy. This will result in both parties committing to a predetermined time or a periodic assured tenancy.

If a tenant does not terminate their fixed-term tenancy or the landlord uses a Section 8 notice, it is possible that the tenancy will be renewed to a new fixed term. Otherwise, it will automatically become an assured periodic tenancy.

If these changes are indeed put through by the Government, there will be a six month transitional period before they become law.

How this might affect current tenancies?

Iain McKenzie, CEO of The Guild of Property Professionals, has highlighted that there has been confirmation from the Government that this plan for changes will not be retrospective.

“What this means is that should the law come into place, it will not impact tenancies that are already in place at the time it is passed. So, landlords in these agreements will still be able to use Section 21 until the tenancy comes to an end. Any new agreement thereafter will then become an assured tenancy,” he adds.

What about landlords and tenants looking to end the tenancy agreement?

A landlord looking to terminate an assured tenancy will have to give a Section 8 eviction notice to the tenant, based on our of the grounds specified in Schedule 2 of the Housing Act 1988.

McKenzie explains: “In the instance where the tenant decides to end the tenancy, they would have to give one month’s notice, but only at the end of a fixed-term tenancy or during a periodic tenancy unless their agreement includes a break clause.”

Will we see changes to Section 8 eviction notices?

With Section 21 gone, it has been speculated that Section 8 will not be enough to fill the gap and protect both landlords and tenants sufficiently, as it currently stands.

McKenzie says: “There are several other changes that the Government will be looking to make to Section 8 to mitigate the loss of Section 21, such as adding a new ground into Section 8 for when a landlord wishes to sell the property or widening the current grounds to cover a landlord, their spouse, partner, or family member, should they wish to move into the property.”

How will changes affect who landlords will let to?

“If landlords feel they have less protection the likelihood is that they will become far more risk-averse and less likely to want to rent out their property. This could mean the supply of rental properties would decrease, which in the long term could push up rental prices. 

“Landlords will also be far more stringent in their tenant selection process, meaning some tenants may find it far more difficult to find a place to live,” says McKenzie.

What should landlords do to prepare?

The Guild’s inhouse Compliance Officer, Paul Offley, says: “It is important that landlords have a workable process for obtaining possession where there is a justified need for them to do so. Any process which helps execute this process, whilst being fair to the tenant, has got to be seen as a positive move.

“Any change brings concern but providing MHCLG is working with organisations like The Guild and that they listen to the feedback they receive, then hopefully this will benefit all parties concerned.”