Written By Em

Em

Em Morley

Where are the Best and Worst Places to Sell a Property in the UK?

Published On: November 21, 2018 at 10:55 am

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Categories: Property News

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It can be frustrating when you’re looking for a buyer, with an endless waiting game of viewings upon viewings, and either no offers, or no offers you really want to accept.

Developed with the Centre for Economics and Business Research (CEBR), Post Office Money looks at the average time it takes for a property to sell in 35 major UK cities.

Quickest rate of sale

The Northern cities of Edinburgh and Glasgow have the fastest selling homes in the UK. Properties here spend an average of 39 to 48 days on the market, respectively. Scotland’s property market is particularly competitive at the moment too, with house prices increasing by 5.8% up to September this year.

Both cities remain relatively affordable too, in comparison to the rest of the UK, and strong population growth in key areas has increased demand for housing.

Slowest rate of sale 

Properties in London and Blackpool take the longest period of time to achieve a sale, at 126 and 131 days respectively.

Despite London having one of the most competitive property markets, the cost of its properties, combined with double-digit price growth, mean properties can take a long time to find a buyer. In fact, properties with a value of £1m or more take 171 days on average to sell, whereas properties under £1m take around 99 days.

Whilst Blackpool sits at the other end of the spectrum in terms of its affordability, it has the oldest average population age in the country. This means its unlikely to be benefitting from as many younger people, including first time buyers, that are in the market for a property in the area.

Year-on-year changes for the average time it takes a property to sell

Belfast and Swansea, which are particularly affordable areas of the country, have seen the biggest fall in the time properties spend on the market, with 17 and 14 days less, respectively.

Meanwhile, Bristol and Luton have had the biggest increase, taking on average 10 to 14 days longer to sell than in previous years.

Ross Hunter, spokesperson for Post Office Money, said: “Properties are taking slightly longer to sell but this doesn’t mean that interest in moving up the housing ladder is waning. At Post Office, for instance, we have continued to see a rise in mortgage applications and approvals in the last year.

“First-time buyers have actually increased by 12% across the market in the last year alone, encouraged by the reduction made to stamp duty costs and mortgage innovation. We also know that housing supply has increased significantly – the number of homes completed in Q2 2018 was up 7% in England compared to the previous quarter, so there are more properties available to choose from for perspective buyers.”

Could Deposit-Free Tenancies Help with Rent Arrears Caused by Universal Credit?

Published On: November 21, 2018 at 9:56 am

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Ajay Jagota, anti-deposit campaigner and managing director and founder of zero deposit rent provider Dlighted, is urging buy-to-let landlords and letting agents to consider the benefits of deposit-free renting.

With recent issues of increasing rent arrears, thought largely to be caused by the new Universal Credit system, this could be a change that will help many looking for rented accommodation.

Recently, we reported on the BBC Panorama research into the problems that tenants claiming Universal Credit are facing. The figures show that such tenants have more than double the rent arrears of those who are still receiving benefits through the old system.

A survey looking at Universal Credit claimants shows that in every local authority area in which the switch has been made, these claimants owe their landlords an average of £662.56. This is in comparison to the £262.50 owed by those still receiving support through Housing Benefit.

On top of that, the results suggest that there has been a 55% increase in evictions, within the single year of Universal Credit being rolled out.

A report from the Citizen’s Advice Bureau has also revealed an increase in the number of tenants seeking advice about rent arrears. This has risen by 47% since Universal Credit was first introduced.

The Government is aiming to have almost seven million people on the new system by the end of 2023. However, many have seen delays to the payments, leading to the new Work and Pensions Secretary Amber Rudd admitting that it “can be better”.

Despite Rudd expressing an acknowledgment that the new system needs to be adjusted, Ajay Jagota is still concerned.

Jagota has said: “There’s a lot to be said for Universal Credit’s intention of making our benefits system simple and fairer, but there’s no getting away from the fact that its implementation is yet another thing that landlords and letting agents alike have to come to terms with.

“The deposit protection industry tells us that old-fashioned tenancy deposits are the only way to keep yourself safe from rent arrears – but in reality they only cover you for a month of rent arrears. What happens if you’re owed two months rent? Or three months?

“All the evidence suggests that there is a strong link between Universal Credit and rent arrears, and if deposits won’t protect you if your income is hit when Universal Credit arrives in your area.

“Deposit free renting is something which could be a real benefit to landlords and letting agents who find themselves faced with rocketing arrears following the rollout of Universal Credit in their area, offering them hundreds of thousands of pounds of protection against unpaid rent, property damage and legal fees, while also making it easier and quicker to find new tenants if eviction becomes unavoidable.”

The Buy-to-Let Sector Remains a Solid Investment Option, Broker Insists

Published On: November 21, 2018 at 9:01 am

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Despite the headlines, the buy-to-let sector remains a solid investment option, according to a specialist broker in the industry.

While the buy-to-let sector has undergone radical change over the last couple of years – with several tax and regulatory changes affecting many landlords, prompting some investors to leave the market – the reality is that property remains a “solid investment”, insists Andrew Turner, the Chief Executive of Commercial Trust.

Turner believes that it was inevitable that the tax changes, which could potentially suppress profitability of landlords’ portfolios in the short-term, would impact the perceived desirability of buy-to-let investment, but firmly believes that there are still plenty of opportunities for investors in the sector, thanks to demand for rental housing rising.

He explains his opinion: “The expectation was that this would be most keenly felt by those with fewer properties, because adjusting to the changes would be a more painful process for new investors or those with less experience.

“However, the simple fact is that buy-to-let remains a solid investment option, with strong potential for an attractive and profitable return on capital invested.”

He argues: “Investors should not be deterred from buy-to-let. Demand for rental housing is stronger than ever, the cost of debt remains relatively cheap, and the housing shortage is likely to continue. Even so, any investment decision requires care and expertise.

“Many headlines have focused on one and two property investors, who have left the market because they have found it difficult to adjust. The real story has really not been about buy-to-let becoming unattractive as an investment option.”

Recent data from UK Finance also suggests an evolution in buy-to-let, rather than a mass exodus of investors.

The Director of Mortgages at the organisation, Jackie Bennett, revealed this month that forecasts for 2018 buy-to-let purchase activity were likely to fall around £3 billion short of expectations.

She says: “This is undoubtedly the impact of various tax, regulatory and legislative changes that have happened to landlords in the buy-to-let sector.”

However, Bennett went on to add that buy-to-let remortgaging exceeded predictions for 2018, with lending likely to hit £27 billion, representing a £3 billion surplus on what was expected.

Turner comments on the UK Finance statement: “The market continues to grow and, in Q2 [the second quarter of] 2018, increased by 6% over 2017 levels. UK Finance statistics revealed that much of this growth was in remortgages, which grew by 15%, while purchases dipped by about 12%.

“In early August 2018, the Bank of England decided to increase rates by 0.25%. Although there has been limited market reaction so far, I expect to see market rates increase, because margins are wafer thin.”

He continues: “The Bank of England has said as much itself, with repeated messages that rates are anticipated to rise gradually over the long-term.

“Landlords have responded to this and there has been significant interest in fixed rates, useful to guard against rate rises. Investors are likely to continue to do this as their renewal dates come up and, therefore, I’m sure the remortgage market for buy-to-let will remain buoyant over the coming months.”

Nevertheless, UK Finance’s latest Mortgage Trends Update, covering the year to September, shows that buy-to-let lending has plummeted by over 18%.

High Cost of Housing Causes Boom in Self-Storage Units

Published On: November 20, 2018 at 10:59 am

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The high cost of housing across the UK has caused a boom in self-storage units, with many households now renting self-storage units long-term because their homes are too small.

The BBC spoke to Angela Andrew, who rents a self-storage unit in east London for £120 a month.

“It’s a bit of a rip-off really,” she laughed.

In the unit, she keeps her collection of records, costumes from her work as a performing artist and other keepsakes. The items may not have monetary worth, but have “nostalgic value”.

When she took out the space, Angela expected to keep it for just a year, but has now had her unit for two years, using it to supplement her small living space.

High Cost of Housing Causes Boom in Self-Storage Units

High Cost of Housing Causes Boom in Self-Storage Units

“The amount of money I pay to sub-let plus this works out at a normal monthly rent,” she explains.

For Angela, self-storage units are about more than not being able to part with items; hers has also given her some security. When she started using the unit, she had no permanent living space, so it was a way for her to keep all of her things in one place.

“This little box is also my home,” she says.

But she’s not the only person willing to shell out for extra space to store their things.

There are now around 1,500 self-storage sites in the UK, with use of them up by around 9% last year on 2016, according to the Self-Storage Association UK (SSA).

The contents of these giant warehouses, which can often be found on busy road junctions or industrial parks, are typically the mundane realities of day-to-day life, such as cooking equipment, books or mattresses.

Most people turn to them at a significant crossroads in their lives – they’ve had a baby, got married, or divorced – or because they’re moving home or redecorating and need somewhere to store their things temporarily.

But, for an increasing number of people, like Angela, self-storage units have become a longer-term option. Almost a third of customers have had their unit for more than three years, while over a quarter (27%) say that they use their storage because there is no room for the items where they live.

The average household in the UK is 2.4 persons, which is larger than both Germany and France, yet we have the smallest average property size, making the UK population “one of the most squeezed in Europe”, according to the SSA.

So, it’s not surprising that people are turning to self-storage units, with it cheaper to rent extra space than it is to buy or rent a larger home, explains the SSA’s Chief Executive, Rennie Schafer.

He describes it as a “room away from home”.

“People know their stuff is safe and, with most self-storage units offering 24-hour access, they can get to their goods whenever they want to,” he adds.

However, it’s not cheaper. Schafer estimates “as a very general guide” that a 90-square foot unit, which would accommodate the contents of a three-bedroom house, would be around £150-£200 per month in London, and £100-£150 a month in the north of England.

Nevertheless, as with Angela, it may be cheaper to rent a smaller property and add the cost of a self-storage unit on, than it is to rent a larger home.

Would a self-storage unit be an option for you?

Judith Wilson Found Guilty of Failing to Comply with Enforcement Notice

Published On: November 20, 2018 at 10:27 am

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Ashford Borough Council has successfully prosecuted controversial landlord Judith Wilson, after she failed to comply with an enforcement notice ordering her to supply hot water to a disabled tenant.

Wilson, who, in court, confirmed that she is the landlord of around 300 properties, had denied the charge, but was found guilty by District Judge Justin Barron, following a two-day hearing at Folkestone Magistrates’ Court.

The case centred on an allegation that Wilson was the owner of a tenanted property at 17 Emperor Way, Ashford, which had ongoing problems with its hot water and heating system. This led to Ashford Borough Council serving an enforcement notice, requiring that the defects be remedied.

The Council told the court that Wilson failed to ensure that the defects were remedied within the period permitted by the notice, which led to the local authority carrying out the work itself.

Judith Wilson Found Guilty of Failing to Comply with Enforcement Notice

Judith Wilson Found Guilty of Failing to Comply with Enforcement Notice

In her defence, Wilson claimed that she had “a reasonable excuse” for failing to comply with the notice, namely that: the damage to the boiler and heating system was caused by the tenants or their agents; she was not permitted access to the premises; she had insufficient time to complete the work; and she reasonably relied on the Council to conduct the repair itself.

During the trial, Judge Barron heard prosecution evidence from two gas heating contractors, the tenants, Mr. and Mrs Manser, and a Council office. Mr. Manser is a wheelchair user. For the defence, a maintenance worker, Mrs Wilson and her husband, Mr. Wilson, gave evidence.

In delivering his verdict, Judge Barron said that the defendant had “every opportunity to resolve the issues, but Mr. Wilson was consistently difficult and stubbornly refused to make any genuine commitment to the Council to get the work carried out”.

He added: “The Wilsons have shrewdly built up what can best be described as a property empire. They know very well that there is no duty on the Council to carry out repairs on their behalf and then bill them for the work. As owners of around 300 properties, it is entirely reasonable to expect them to have arrangements in place to enable this type of issue to be dealt with promptly.

“Taking into account the evidence… I find that Mr. and Mrs Wilson could have had the work carried out within the period allowed by the abatement notice, but chose not to. In this case, those were not the actions of responsible landlords.”

Mrs Wilson will return to court on 11th December 2018, to hear Judge Barron pass sentence. He has made a financial circumstances order under Section 162 of the Criminal Justice Act, which requires Wilson to disclose in court documents that evidence all bank accounts, both individual and joint, plus all assets.

Ashford Borough Council says that the case is a powerful reminder to private landlords that there will be serious consequences if they fail to deal fairly with their tenants.

Councillor Gerald White, the Portfolio Holder for Housing at the Council, responds to the verdict: “This successful prosecution against a high-profile landlord shows that we have teeth and we are not afraid to fight for the rights of tenants who live in our borough.

“What a lot of private sector tenants don’t realise is that, if they have trouble with their landlord, they can come to us for help. Mr. and Mrs Manser didn’t know that until they were recommended to speak to us.”

He continues: “The Council champions the rights of tenants, and we make sure that landlords in the private sector remain accountable and live up to their responsibilities under the law. If they don’t, then there are consequences.

“In this case, we did everything we could to resolve the situation. We gave Mrs Wilson every opportunity to find a solution to the problem, but we were ignored. In the end, we realised that the only way to get justice for the tenants involved was to prosecute.”

Councillor White insists that Ashford Borough Council always aims to work in partnership with landlords, and he is pleased to hear that Judge Barron acknowledged that in his judgement, when he said: “I accept the evidence of Mr. Watts (Senior Environmental Health Officer) that he wanted to resolve the matter amicably and without resorting to enforcement action. He had better things to do with his time than get involved in this dispute – I understand his frustration.”

Judith Wilson and her husband, Fergus, have long been in the press, following controversies surrounding their large property portfolio.

UK Lettings Market Records Autumn Spike, Reports Agency Express

Published On: November 20, 2018 at 8:59 am

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The UK lettings market recorded an autumn spike in October, according to the latest Property Activity Index from Agency Express.

Following a three-month slump, the number of properties to let across the country rose by 24.2% between September and October, while the amount of properties let was up by 8.1%.

Across the 12 individual regions included in the index, all areas recorded growth in new listings to let, while 11 saw increases in the number of properties let.

The greatest rise in October’s index was recorded in the North East. Again, following slumber activity during August and September, figures bounced back, with new listings up by a staggering 66.8% month-on-month, and the amount of properties let up by 12.3%. Annual data for the region also shows increases.

A particularly robust lettings market was also seen in the West Midlands, with new listings up by 38.0% on September, marking a record best October for the region.

Other hotspots across the country included:

Properties to let 

  • Yorkshire and the Humber: +45.1%
  • Wales: +36.4%
  • Scotland: +36.2%
  • South East: +23.6%
  • North East: +21.0%
  • Central England: +21.0%
  • London: +15.4%

Properties let 

  • London: +27.9%
  • East Anglia: +16.4%
  • South West: +13.6%
  • North East: +12.3%
  • West Midlands: +11.1%
  • Wales: +10.2%

The only region to record a decrease in this month’s Property Activity Index was the East Midlands. For a second consecutive month, the number of properties let dropped, by 8.0% in October. However, looking back at the index’s historical data, annual figures remain up.

Stephen Watson, the Managing Director of Agency Express, comments: “If we look back at historical data recorded by the Property Activity Index, we can see that a slowdown is usually anticipated in October. This month, we have seen a spike in activity. However, looking at the figures more closely, we can see that the increased number of working days (23 in October over 20 in September) has had some impact on the monthly data and, overall, the year-on-year figures remain relatively true to trend.”