Written By Em

Em

Em Morley

Government Launches Consultation on Housing Court Proposal

Published On: November 13, 2018 at 10:55 am

Author:

Categories: Law News

Tags: ,

Government is proposing a new housing court for property cases

Today, the Government will publish its proposals for a new specialist housing court in a consultation document.

The court would “provide a single path of redress in property cases”, according to a Government press statement.

It said that the fact that housing disputes can currently be heard in a number of different legal settings can “act as a deterrent to some of the most vulnerable seeking justice”.

The Secretary of State for Housing, Communities and Local Government, James Brokenshire MP, commented: “This is particularly important for families and vulnerable tenants who live with the fear of suddenly being forced to move, or fear eviction if they complain about problems with their home. It is also important for landlords who, in a minority of cases, struggle to get their property back when they have reason to do so.”

The statement added that it hoped the housing court proposal might encourage investors to offer longer-term tenancies, by “providing confidence for landlords”.

The Government also suggested other options that could be offered, including issuing guidance to landlords and tenants about how to navigate the legal system.

The consultation paper is expected to suggest alternative measures to reduce the need for multiple hearings, and transferring cases between courts and tribunals to ensure a quick resolution.

Sajid Javid, the former Housing Secretary, first introduced the housing court proposal in October last year at the Conservative Party Conference.

In his speech, he promised a consultation on the plan, which has taken more than a year to deliver.

The consultation, due to be released today, has been developed by the Ministry for Housing, Communities and Local Government, alongside officials from the Ministry of Justice, HM Courts and Tribunals Service, and members of the judiciary.

The consultation will run for ten weeks, until 22nd January 2019.

David Smith, the Policy Director for the Residential Landlords Association (RLA), says: “The RLA called for a new housing court at the time of the last election and in its Budget submission. It therefore welcomes this important consultation.

“Improving and speeding up access to justice in this way would be good news for landlords and tenants. It will help root out criminal landlords more quickly, give tenants better ability to enforce rights granted by new legislation on property fitness, and give greater confidence to landlords to offer longer tenancies.”

Demand Set to Rise for Rental Properties in Retirement Hotspots

Published On: November 13, 2018 at 10:40 am

Author:

Categories: Lettings News

Tags:

Demand is set to rise for private rental properties in retirement hotspots across the country, according to analysis of Office for National Statistics (ONS) figures by Girlings Retirement Rentals.

According to the ONS, a quarter of the UK population will be aged 65 or over in 20 years’ time, with West Somerset set to be the most elderly part of the country, at 44% of the total population by 2037.

Other areas, such as West Dorset, North Norfolk and Rother, East Sussex, are expected to have 40% of the population aged 65 or over by 2037. Meanwhile, parts of London and Manchester will only have between 10-13% at this age.

Gillian Girling, the Chief Executive of Girlings Retirement Rentals, comments: “We are an ageing nation and so it’s to be expected that many parts of the UK will have a greater number of over 65s, especially areas that are popular to retire to, such as Somerset and Dorset.

“However, 65 is no longer considered old and people on average will live a quarter of their lives retired. Moving somewhere new and vibrant with great facilities and amenities close by, and access to a good social life to enjoy this stage of their lives is increasingly important for many.”

She explains what this means for these retirement hotspots: “Growing numbers of this age group are now choosing to downsize and rent in these locations. Freeing up capital for the sale of a home, no longer having to worry about ongoing property maintenance and the assured (lifetime) tenancies we offer are the biggest benefits.

“There are also social benefits, as most retirement developments have communal areas, and have regular events and outings going on. With rising numbers of older people living alone, a trend that is set to continue, then the social factor of where people live will become increasingly important in the future.”

Landlords, have you considered investing specifically in properties in retirement hotspots?

Rent Prices have Fallen in Real Terms over the Past Decade

Published On: November 13, 2018 at 9:45 am

Author:

Categories: Lettings News

Tags: ,

The cost of renting for private tenants has improved over the past decade, albeit with substantial regional variations, thanks to the decline in rent prices in real terms, according to new figures.

Rents in real terms (adjusted for inflation) have dropped by an average of 2.2% in Great Britain since October 2008, which means that the average cost of living has risen more than typical rents, analysis by Hamptons International shows.

Over the last ten years, inflation, which measures the average cost of goods and services (or the cost of living), has increased by 24%, outpacing rent prices, which have risen by an average of 22% over the same period.

Inflation has surpassed rent price growth in all regions across Great Britain, resulting in negative growth in rents in real terms, with the exception of the East of England and London, where rental growth has outpaced inflation over the past decade, at an average of 7.5% and 0.5% respectively.

The Midlands has recorded the greatest fall in real rents, which are down by 7.8% since October 2008, while rents in real terms in the north have fallen by 6.9%, as inflation has outpaced rental growth.

The Head of Research at Hamptons International, Aneisha Beveridge, says: “Real rents in Great Britain have been falling for the last 21 consecutive months. This comes as a result of sluggish rental growth and a post-EU referendum backdrop of rising inflation.”

However, this trend could be set to change, as inflation begins to fade and rent price growth starts to pick up pace, according to Beveridge.

Rent price growth on new let properties accelerated to 2.0%, to hit an average of £977 per month across the country in October 2018 – the highest since February, as every region recorded a rise in rents.

The East of England recorded the greatest jump in rent prices, which rose by an average of 3.9% year-on-year, while Scotland saw the slowest rent price growth, of 1.1%.

Meanwhile, rents in London grew for the second consecutive month, up by 1.4% annually, driven by a 2.7% increase in inner London.

With so much talk of high costs for tenants, are you surprised to learn that rents have actually dropped in real terms over the past decade?

UK’s Top Rental Hotspots for Landlords Revealed by Shawbrook Bank

Published On: November 13, 2018 at 8:59 am

Author:

Categories: Landlord News

Tags: ,

Up to a third of young people today could be renting into their retirement

New analysis of the buy-to-let market presents an opportunity for landlords, revealing exactly where the top rental hotspots are for 2018/19.

Shawbrook Bank’s latest UK Buy-to-Let Report, compiled by the Centre for Economics and Business Research (Cebr), shows that, despite a barrage of tax changes making it harder to make money on buy-to-let, there are still pockets of the market where investors can achieve an average rental yield of 5.4%.

Looking at house prices, Shawbrook Bank predicts that annual growth will be more subdued in the five years to 2023 than over the last few years. The report forecasts average house price growth for the years 2017-23 to be 4.5%, compared to an average of 7.0% for the high-growth years of 2014-16.

Stretched affordability ratios, years of weak wage growth and the prospect of further interest rate rises all weigh in on the outlook for house prices in the UK for the next few years.

House price growth has slowed in London particularly, with Brexit and the resulting uncertainty regarding the future of the financial services sector in the City of London looming over activity in the prime end of the market, alongside higher Stamp Duty rates.

The report expects price growth in the capital to continue to trail behind the rest of the country for the next two years, with new figures from estate agent Aston Chase already showing that the percentage of high end purchases from overseas buyers in London’s most expensive postcodes have dropped from 44% in 2016 to 35% last year.

With investment in London slowing, the attractiveness of other regions has improved. Shawbrook Bank found that the North West and the city of Manchester, in particular, are the top new rental hotspots, due to higher yields.

Lower house prices mean that it is easier to achieve high rental yields, while Manchester is attracting students and employees from across the country. The average UK house price is currently £228,000, which is 43% higher than the typical property value in the North West, at £159,000.

The North West leads the ranking, with an average rental yield of 5.4%, followed by Scotland, at 5.3%, and Yorkshire and the Humber, at 4.9%.

Emma Cox, the Sales Director for Commercial Mortgages, says: “Landlords have had a rough ride over the past few years, with multiple tax changes, but our research shows that it’s not all doom and gloom for potential investors in 2018. Lower rental yields in London, and affordability constraints for investors, has driven interest north, where borrowers are chasing the yield and heading to locations with lower average house prices.

“There are still interesting times ahead for savvy investors and good investment opportunities remain. However, when landlords invest far away from their home turf, they can run the risk of falling foul to local knowledge. Smarter local investors may be seeing an opportunity to divest themselves of their less desirable housing stock, so it’s important for buyers to do their research to make sure they understand the local supply and demand before investing.”

Top Tips for Selling your Property this Winter

Published On: November 12, 2018 at 11:01 am

Author:

Categories: Property News

Tags: ,

If you’re looking to sell your property this winter, whether it’s your family home or buy-to-let, NAEA Propertymark (the National Association of Estate Agents) has some top tips.

The housing market may slow down in the run-up to Christmas, as sellers prioritise the fun and festivities over marketing their properties. However, the colder season brings committed buyers, less competition and an opportunity for homes to be viewed at their cosiest, so vendors should start thinking about getting their property ready now if they want to secure a deal before Christmas.

NAEA Propertymark has put together its top tips for sellers to show off their properties’ best features, whatever the weather:

Mark Hayward, the Chief Executive of the organisation, says: “Although it’s dark outside and the prospect of making your way through the Christmas TV listings sounds more appealing than selling your home, the period before Christmas is a great time to do so. In January, sellers flood the market and supply shoots up, meaning there’s less competition and you may find it more difficult to secure an offer.

“There are lots of things you can do to entice potential buyers looking to make a winter purchase, so we’ve compiled a list of top tips. Don’t forget to go to your estate agent for advice as well, as they should be well equipped to adapt to selling homes in these quieter periods.”

Cosy appeal

Top Tips for Selling your Property this Winter

Top Tips for Selling your Property this Winter

Ensure that your property is warm and well lit, as this can encourage potential buyers to stay longer during viewings and help them see themselves living in the home – especially during the winter.

Set the heating to come on during the day when you have viewings and use throws in the living room. If you have a gas fireplace, light a fire to welcome visitors, and create a warm and cosy atmosphere. But, if your fireplace tends to leave a smoky smell in the room, hold off.

Simple festive décor

If you’re selling a home in the run-up to Christmas, try and take advantage of the holiday season, but don’t go overboard on the festive decorations. A property that feels cluttered with Christmas décor can deter buyers – inflatable snowmen don’t appeal to everyone!

Buyers should be able to envisage themselves living in your property, so it pays to make it as inviting as possible. A tastefully decorated Christmas tree and a cinnamon scented diffuser are probably all you need.

Make the most of your entrance 

First impressions really do count, so make sure that the first thing your guest sees is a tidy exterior. If your front door is looking a bit shabby, buy a new doorknob, a brass letterbox or a stainless-steel house number; these small touches can instantly make a home feel more welcoming. Add a wreath on the door or hang some fairy lights outside – and keep paths clear of snow or ice.

Let in light

Home hunters regularly tell estate agents that they want a light and airy property. As daylight hours are limited during winter months, maximise the light whenever possible. Install higher wattage bulbs and turn on the sidelights, to create a warm glow from the street. If it’s dark, make sure the curtains are drawn, so that buyers don’t feel like they’d be too exposed living in your home.

Make everything sparkle 

Washing the windows will help you maximise the precious daylight hours. Get rid of cobwebs and dust all of your furniture, ceiling fan blades and light fixtures. Bleach any grout, and polish chrome taps and mirrors.

Tackle any winter damage 

Make sure that any problems with the property that are more prominent in the winter, such as damp or a faulty boiler, are fixed prior to putting the home on the market.

Increased rainfall over the winter can take its toll on guttering, so check the gutters and drain covers are properly cleared of dead leaves and other debris, as leaky gutters and down pipes cause issues and are unsightly.

Elmhurst Energy Welcomes Planned Changes to MEES in the Private Rental Sector

Published On: November 12, 2018 at 10:27 am

Author:

Categories: Law News

Tags: ,

Elmhurst Energy, the specialist energy assessment training provider, has welcomed the Department for Business, Energy and Industrial Strategy (BEIS) announcement that it plans to amend the regulations requiring landlords to install energy efficiency measures in their properties.

Since April this year, landlords who own some of the most inefficient properties in the private rental sector have been required to improve these issues with energy efficiency measures, with support available to cover the costs.

The new measures, announced following a public consultation, will go further than the Minimum Energy Efficiency Standards (MEES), requiring landlords to contribute to the costs of the upgrades. The Government has revealed that the cap will be set at £3,500 (inclusive of VAT).

The key changes include:

  • The introduction of a capped landlord contribution of £3,500
  • Removal of the consent exemption currently available, where a sitting tenant does not consent to a Green Deal charge
  • Inclusion of an evidential requirement for the registration of a high cost exemption
  • Curtailment of the period of validity of previously registered no cost exemptions

Other policy decisions relate to the operational efficacy of the regulations.

The Technical and Operations Director of Elmhurst Energy, Stuart Fairlie, says: “We welcome the news that the removal of the no upfront cost to the landlord clause is to be removed for the regulations. This certainly makes the regulations easier to understand and implement.

“As the Clean Growth Strategy document has a mission to improve all homes in the private rental sector to band C by 2030, we believe that this will certainly help make some of our most inefficient homes warmer and cheaper to run. As per usual, we will keep our members posted as soon as we find out more details.”

When the amended regulations come into force, to register a high cost exemption, where the property cannot be improved to an Energy Performance Certificate (EPC) rating of E for £3,500 or less, the landlord would be required to submit three installer quotes.

The current MEES require landlords of private rental domestic and non-domestic properties in England and Wales to ensure that their EPC rating is E or above, before granting a new tenancy to a new or existing tenant. This latest announced applies to domestic properties only.

If private rental homes are in breach of the regulations, local authorities can use enforcement measures or issue a fine, which is capped at £5,000. Local authorities also have powers to issue a publication penalty, which would see the details of a landlord breach published on the PRS Exemptions Register.