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Em

Em Morley

November Property Activity Index shows Seasonal Slowdown

Published On: December 6, 2018 at 9:00 am

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Agency Express has released its November Property Activity Index, revealing a slowdown in the market – an unsurprising development, as we find ourselves entering the festive season.

Month on month, the national figures for properties ‘Sold’ have fallen at -11.4%. The same result has been found for new listings, with figures ‘For Sale’ at -13.6%. However, there is positive news, as the index’s historical data shows an overall increase in year on year activity.

This seasonal trend has continued across the UK, as all but one region has recorded a decline in both properties ‘For Sale’ and ‘Sold’.

The only exception to these results is London, showing itself to be this month’s top performer. Month on month, the region has seen good results for new listings ‘For Sale’, which sat at a buoyant 41.7%. Although, the same cannot be said for properties ‘Sold’, the figures for which were down at -13.4%. Year on year, both of these figures have dropped in comparison to the same period in 2017.

The following regions have seen the smallest declines recorded in this month’s index:

New listings ‘For Sale’

  • South East -7.1%
  • North West -11.8%
  • East Anglia -12.2%

Properties ‘Sold’

  • North West -3.1%
  • East Anglia -4.6%
  • North East -6.6%
  • South East -8.5%
  • South West -8.6%

In November’s index, the largest decline that has been reported was recorded in Wales. It saw new listings ‘For Sale’ at -31.4% and properties ‘Sold’ at -15%. Looking nearby at the West Midlands, new listings sat at -26.4% and ‘Sold’ figures at -19.2%. However, year on year, both regions have seen an increase in activity.

Stephen Watson, Managing Director of Agency Express has commented on the latest index: “Throughout November and as we approach the run up to Christmas, we inherently expect for the market to slow in pace. While we have witnessed the usual downturn in activity, year on year figures remain robust.”

Online Estate Agent Emoov has gone into Administration

Published On: December 5, 2018 at 10:57 am

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Within a matter of months after its merger with Tepilo and Urban.co.uk, online estate and lettings agent Emoov has gone into administration. This has occurred after the business failed to find a buyer.

Russell Quirk, chief executive of Emoov, sent out an email to staff yesterday, stating: “They say that entrepreneurs should never give up, but at the same time one needs to know when efforts have been truly exhausted and when you simply have to call it a day.”

“Regretfully and despite my significant endeavours over this weekend to achieve such, the prospective purchasers that have been in the wings have not come through with viable offers to acquire the Emoov business.”

The online estate agent provided sellers with fixed fees, charging £895 to market a property, or £995 for those in London and the inner M25 area.

Quirk’s email continued: “At 1pm today (Monday 3rdDecember) I held a call with Emoov board members where it was agreed to appoint James Cowper Kreston as administrators.

“Once this intention is filed with the court later today they will take charge of the affairs of the company and its staff, customers and creditors and will work to secure an ultimate buyer.”

The Emoov website is still up and running at the time of posting this article. We are interested to see if another buyer does step forward. If not, those owed money by the business will have to wait for the administrator to hopefully arrange repayments.

The administrator has commented on the recent unsuccessful attempts to find a buyer for Emoov: “As a number of prospective buyers have indicated an interest in purchasing the client property listings, therefore, the administrators will be exploring the transfer of these to other providers as a priority.”

The administrator has stated that Urban.co.uk, also known as Urban Sales and Lettings Limited, has been unaffected by this development.

Landlords Let Down by Government Tenancy Deposit Cap U-Turn

Published On: December 5, 2018 at 10:32 am

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Despite claims from the Government that it wishes to provide more support to landlords and the private rental sector (PRS), the decision to cap tenancy deposits at six weeks has now been changed to five.

The Residential Landlords Association (RLA) and the National Landlords Association (NLA) have both voiced their concerns over this news.

In response to the reports of the Government’s decision to do a U-turn on the tenancy deposit cap, David Smith, Policy Director for the Residential Landlords Association commented: “The Government had accepted that a cap of six weeks was the minimum many landlords required. This is needed to address the problem of tenants who fail to pay the last month’s rent and leave a property damaged.

“Ministers claim that they want to cut the cost of renting yet this is another measure the Government is taking that will further cut the number of landlords and properties available as demand continues to rise, so actually driving up rents up.”

David Smith has also commented: “In doing a complete about turn on this, it is unfortunately vulnerable and elderly tenants who will suffer, just as Ministers stated when they initially approved a six week cap. Those who will now find it more difficult to secure a home to rent will include those on benefits and those who have a pet as a companion.

“In May, Ministers argued that a cap of six weeks offered a balance between affordability benefits and financial risk to landlords and providing confidence for them to rent to higher risk tenants. They considered that a five week cap did not offer that protection. Nothing appears to have changed since.”

Richard Lambert, Chief Executive Officer of the National Landlords Association has said: “A six-week cap is the lowest landlords find acceptable. Does the Government really not realise that if landlords don’t think the deposit covers the risk of damage or unpaid rent, they will be even more cautious about who they let to?

“All this will do is make it harder for tenants with poor credit ratings or who want to have a pet to find a suitable home. This is clearly a political move aimed at the renters’ vote. It is not a policy for business.”

The RLA has previously proposed that the cap should even be extended to eight weeks, to provide landlords with a way to cover extra costs, in case a tenant fails to pay their final month’s rent.

Landlords, remember that, if you are worried about tenant rent arrears, you can take out Just Landlords’ Rent Guarantee Insurance, to give you peace of mind. You can get a quote on their website at www.justlandlords.co.uk/rentguaranteeinsurance. 

Private Renting System Seen as Giving Landlords Too Much Power, New Poll Finds

Published On: December 5, 2018 at 10:04 am

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As the amount of families in privately rented homes soar, a new report presents information to suggest a rethink of the current system, and how it can more fairly benefit all involved.

According to the results of a new poll, commissioned by IPR and Sky Data, released yesterday, a majority think that landlords have too much power, and that tenants should have greater protection from those who may behave badly.

Results of the poll:

The poll found widespread scepticism and unhappiness about the private renting system:

  • 54% say that landlords have “far too” or “slightly too” much power over tenants, while just 10% think tenants have “far too” or “slightly too” much power over landlords.
  • 53% say the way it works is “very” or “fairly” unfair for tenants, while just 19% regard it as fair.
  • Pensioners, single parents and couples with children are seen as groups for whom it works very or fairly badly by most people – 61%, 58% and 49% respectively.
  • 61% said it does not provide tenants with a long-term, stable home.
  • 59% say it does not provide affordable homes, and only 29% say it provides good quality accommodation – outnumbered by the 45% who say it does not.

Darren Baxter, IPPR Research Fellow, said: “The private rental market is broken, leaving too many households in insecure, unaffordable and poor-quality accommodation. Much more needs to be done to give tenants greater protection, rights and control over their homes.

“Our report shows that there is significant public support for much greater reform of the sector. Government should act now to improve the lives of renters across the country.”

Luke Murphy, IPPR Associate Director for Energy, Climate, Housing and Infrastructure, said: “Our report shows that tenants, landlords and the public all recognise that there are serious problems with the current system of private renting.

“Private renting fails to provide the stable and affordable homes that tenants, particularly families with children, require. The need for reform is clear and increasingly urgent.”

Hannah Slater, Policy and Public Affairs Manager at Generation Rent, said: “This research rightly points out that private renting is insecure, unaffordable, too often poor quality, and that tenants lack agency and representation in the current system.

“The Government should radically overhaul private renting through mandatory registration of private landlords and properties, and by ending Section 21 ‘no fault’ evictions to give renters security in their homes and the confidence to ask for repairs. It should also reinstate legal aid for housing cases, and explore how rent controls can work to make housing costs affordable for the fifth of the population now privately renting.”

Research finds Nottingham as City with Best Buy-to-Let Yield

Published On: December 5, 2018 at 9:06 am

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It’s no surprise that, with such large populations of students, university cities offer some of the highest buy-to-let yields.

New research by TotallyMoney reveals university cities are “potentially the most lucrative hotspots for landlords.”

Locations with high student populations – such as Nottingham, Liverpool, Manchester, Leeds and the North East – boast some of the UK’s highest rental yields.

Nottingham has come out on top, with two postcodes featuring in the top five. NG1 takes first place with an average rental yield of 11.99%, and NG7 takes fifth place with an average yield of 8.89%. It has a student population of around 37,000.

Property prices are also affordable, averaging £152,631 and £160,269 respectively – far below the UK average of £226,906.

Liverpool comes in at second place, with two postcodes in the top five. It has a student population of approximately 70,000 across its three universities. Postcode L7 has an average rental yield of 9.79%, and L1 performs well too, averaging 9.33%.

TotallyMoney’s Head of Brand & Marketing Communications, Mark Moloney, said: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords.

“Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.

“But, due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns, landlords need to be savvier.”

Read more about why first year students are shunning university halls in favour of more luxurious or convenient options in the private rental sector, as well as what students want in their uni accommodation.

New Changes for Conveyancers Introduced this Week

Published On: December 4, 2018 at 10:43 am

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Starting this week, licensed conveyancers will need to ensure that they are complying with the latest regulatory changes, in regards to displaying price and the services they provide.

Any practice that is part of the Council for Licensed Conveyancers (CLC) will have to make information on the fees they charge readily accessible on their website, as well as by ‘other reasonable means on request’. This change will occur from Thursday 6th December.

On top of this, conveyancers will need to disclose information on the services that they provide, making this accessible in the same way. This includes a description of the services, key stages of the services, and indicative timescales.

Conveyancers will also need to state who their staff are, detailing their experience and qualifications. The CLC points out that many of their own practices already have a ‘meet the team’ page on their websites.

Regulatory information must be included on all communications and practice websites, stating that the practice is regulated by the CLC, along with a practice licence number. The CLC secure badge must be displayed in a prominent place on the website.

Details for the practice’s complaints process should also be provided on their website.

The CLC has commented: “The cost generator must be capable of producing a quote without the need for the consumer to provide any contact details.

“You may consider providing costs in two stages. For example, you could provide examples of fixed fees based on specific values on your website and for those consumers that would then like a quote more tailored to their circumstances, you could also provide a cost generator.

“In this example, requiring contact details for the consumer to provide a more detailed estimate via telephone or email would be acceptable, provided there is some other indication of how much your costs are likely to be on your website.”

Stephen Ward, director of strategy and external relations for the CLC, has said: “All CLC practices are different and we have given them the flexibility to comply with these new rules in the way that best suits their business and their clients.

“We want to remind practices that we are here to support them so they are ready to comply from 6th December and that if they have any questions they should contact their regulatory supervision manager.”