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Em Morley

Crisis releases latest homelessness figures for households across Britain

Published On: December 23, 2021 at 9:10 am

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Categories: Tenant News

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227,000 families and individuals across Britain are experiencing the worst forms of homelessness, new research from homelessness charity Crisis reveals today.

This includes people sleeping on the streets, stuck in insecure accommodation like B&Bs, or forced to sleep in cars and sheds.

The research, led by Heriot Watt University, shows 227,000 households on any given night are without a home to call their own. Most of these households are in England, not just because of the larger population, but also because there are higher levels of homelessness than in Scotland and Wales.

0.86% of all households in England are experiencing homelessness on any given night, compared with 0.69% in Wales and 0.57% in Scotland. These different rates of core homelessness across the three nations are due to the different housing and homelessness policies in place. For example, Crisis points out that in Scotland rates are lower than in England due to factors such as a better supply of social housing and more inclusive access homelessness services.

Some of the more common forms of homelessness include those living in unsuitable temporary accommodation such as B&Bs for extended periods of time. Nearly 25,000 families and individuals are living this way, including 22,600 households across England alone. Levels are rapidly increasing, as the number of households experiencing this form of homelessness in England is three times what it was in 2012.

Although homelessness levels are already high, they are predicted to rise in the immediate future and even more over the next 20 years if the right action isn’t taken to address it. Around 350,000 households in Britain are predicted to experience homelessness by 2041, of which over 320,000 will be in England.

These new figures include the period the Westminster Government introduced the Everyone In scheme last year in response to the pandemic. This provided emergency accommodation for people sleeping rough and showed what can be achieved through direct action and support, to help people out of homelessness. Similar initiatives to provide emergency accommodation were also launched by the governments in Scotland and Wales where this support, such as providing self-contained accommodation in Wales, is ongoing. 

However, a cut to Universal Credit, a freeze to housing benefit and a lifting of the ban on evictions in 2021 have pushed more people into homelessness. Rising COVID-19 cases are putting more people at risk as the impact of the pandemic continues. Earlier this week, the Westminster Government announced £28 million to provide funding for emergency accommodation for people who are homeless and to encourage vaccination. But Crisis highlights how having a home to call your own is crucial to protect people’s health, and its research shows thousands of people are without this security. Other factors, like the insecurity of jobs in the hardest hit sectors, are putting further pressure on people.

This research comes today as Crisis opens their Christmas services for the 50th year, supporting people facing homelessness over the festive period and introducing them to the support Crisis can offer year-round to help them leave it behind for good. 

This Christmas, Crisis will be opening hubs across London to provide services for people experiencing homelessness and have also booked hotels to provide shelter and warmth for people who would otherwise be sleeping rough. Through their 11 Crisis Skylights across England, Scotland and Wales, volunteers will be providing services during the festive period including Christmas Day dinners, nature walks, information and guidance, health support and a telephone befriending service. 

When David, 57, became homeless, he spent time living in a hotel, before moving between hostels and shelters. He was told about Crisis at Christmas in 2019, and the ongoing support he received led him to securing a job and somewhere to live. 

Talking about his experience, David said: “It was stressful being in the shelter because you go there at night, you eat, you sleep, you wake up. You cannot take your bath – I maybe could have a bath once a week. You then have to go to the next shelter, it’s not just in one place. 

I first heard about Crisis when I was at a night shelter in December 2019. They took a group of us to Croydon for Christmas. We were lodged there, fed well. We had so many opportunities; we had computer access, recreational games. It was fantastic. We had the option to ask for clothes, so I got some new clothes. I could access a washing machine, showers. Crisis has made a fantastic difference to me. They have supported me immensely. Without Crisis, life would have been so difficult.” 

Jon Sparkes, Chief Executive of Crisis, said: “No-one should be without a place to call home now or at any time of year. It is utterly devastating that throughout Britain thousands of people are facing a Christmas on the streets, trying to shelter in places like a car or stuck living in one room in a B&B with no proper cooking or washing facilities. It shouldn’t have to be like this. 

“For the last 50 years at Crisis at Christmas we’ve opened our doors to people at one of the most difficult times of the year, providing respite from the hardships of homelessness. More importantly, we’ve introduced thousands of people to our year-round support to help them leave homelessness behind for good. We don’t want to have to be here in another 50 years. 

“These predictions for rising homelessness levels are stark, but with the right government action to end homelessness for all, we can make sure they don’t become a reality. Last year, we saw the difference government action made, helping people off the streets and into emergency accommodation. We need to see all governments act to make sure everyone has a safe and secure home and to help people avoid homelessness before it happens. 

“Until homelessness is ended for good though, Crisis will continue to be here at Christmas and all year round providing vital support to the individuals who need us.” 

You can learn more about how to support Crisis this Christmas on its website: www.crisis.org.uk/support

Landlords respond to tax hikes affecting the rental market

Published On: December 21, 2021 at 9:32 am

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Categories: Landlord News

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Tax changes affecting the rental market are having a negative impact on the investment plans of private landlords, according to the results of a recent survey.

A new study has been undertaken by the London School of Economics (LSE) for the National Residential Landlords Association (NRLA). Over 1,400 private landlords across England took part in this study.

52% of respondents say tax changes have deterred them from making further investments and acquiring more properties.

Recent changes have included restricting mortgage interest relief to the basic rate of income tax, a 3% Stamp Duty levy on the purchase of additional homes, and a decision to cut Capital Gains Tax to 18% for everything other than on gains from the sale of residential property.

Overall, a third of respondents said the reform to mortgage interest relief was the tax change having the greatest effect on the operation of their rental business. Of this group, 39% said the change meant that they were not proceeding with planned future purchases whilst 31% said they had put plans on hold. 28% said they were taking steps to leave the sector altogether.

27% of landlords said that the Stamp Duty levy was significant; followed by changes in the tax treatment of furniture and fittings (26%), and in the capital expenditure allowance (24%).

Ben Beadle, Chief Executive of the NRLA, comments: “The NRLA will be studying this report carefully as it prepares detailed plans to support investment in the sector.

“That said, it is clear that recent tax increases have deterred investment in the sector. With the demand for homes to rent outstripping supply this will only hurt tenants as they face less choice, higher rents and find it more difficult to save for a home of their own as a result.”

Christine Whitehead, Emeritus Professor of Housing Economics at the London School of Economics and a co-author of the report, comments: “Our work on taxation of landlords across Europe (also in the report) suggests that as a result of the changes in taxation since 2015 individual landlords in Britain are being increasingly disadvantaged when compared to corporate landlords and other investment types.”

Average price for UK houses on roads with Christmas names

Published On: December 20, 2021 at 9:49 am

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Categories: Property News

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The cost of buying a property on roads with Christmas names has been found by GetAgent.co.uk.

It analysed price paid data from the Land Registry over the last 12 months for various roads with Christmas names. On average, it found that a property on one of these roads would cost £320,000, which is 19% more than the current national average.

Properties are most expensive on roads including ‘Rudolph’ in their name. With an average sold price of £527,500, properties on roads called Rudolph are 95% above the national average.

The second most expensive is ‘Lights’. At £363,000, this is 34% above the national average. ‘Mistletoe’ also commands a festive premium at 33%, with the average property costing £360,000.

Buying on roads called ‘Merry’ (£331,250), ‘Turkey’ (£330,000), ‘Tree’ (£328,750), ‘Christmas’ (£325,000), ‘Pudding’ (£325,000), ‘Chimney’ (321,495), ‘Chestnuts’ (£320,000), ‘Joy’ (£315,000), ‘Sleigh’ (£311,000) and ‘Stocking’ (£285,000) will also cost you a property price premium of between 6% and 23% versus the national average.

At £266,498, homes on roads called ‘Star’ come in around the national average, while ‘Snow’ (£250,000), ‘Holly’ (£247,000), ‘Bells’ (£230,000), ‘Reindeer’ (£205,000) and ‘Toy’ (£180,000) are also considerably more affordable.

Colby Short, Founder and CEO of GetAgent.co.uk, comments: “We all know that one Christmas nut, usually an aunty, that starts Christmas shopping in May and has Mariah Carey blaring out from the start of October. So, what better place for them to live than on Rudolph Road or Mistletoe Drive.

“Unfortunately, if you do want to go full Christmas 365 days a year, at least where your road name is concerned, it’s likely to cost you a fair bit more than the average property.

“Of course, the fragmented nature of the property market means there’s always a more affordable option and so you could opt for Reindeer Road over Rudolph Road and save yourself over £320,000 in the process.”

The median sold price across roads with Christmas names and how they compare to the England and Wales average

Christmas Road NameMedian Sold PriceVersus National Average
Rudolph£527,50095%
Lights£363,00034%
Mistletoe£360,00033%
Merry£331,25023%
Turkey£330,0022%
Tree£328,75022%
Christmas£325,00020%
Pudding£325,00020%
Chimney£321,49519%
Chestnuts£320,00019%
Joy£315,00017%
Sleigh£311,00015%
Stocking£285,0006%
Star£266,498-1%
Snow£250,000-7%
Holly£247,000-8%
Bells£230,000-15%
Reindeer£205,000-24%
Toy£180,000-33%
Average£320,00019%
England and Wales£269,945N/A

Government plans for energy improvements in rental housing need rethink

Published On: December 17, 2021 at 9:30 am

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Categories: Landlord News,Property News

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Proposals for landlords across the country to pay up to £10,000 to improve the energy efficiency of rental properties require a rethink, says the National Residential Landlords Association (NRLA).

In a consultation that closed in January the Government proposed that by 2025 all new tenancies in the private rented sector should be in houses with an Energy Performance Certificate rating of C or better. It is proposed that this standard should apply to all private rented properties by 2028.

As part of this, the Government has suggested that, in meeting these targets, landlords should be expected to pay up to £10,000 to make the necessary improvements.

Whilst the sector is still waiting for the Government’s response to this consultation, the NRLA is warning that the planned cap is based on a misguided assumption that all landlords are property tycoons with deep pockets.

NRLA research shows that private landlords make an average net income from property of less than £4,500 a year.

Recent figures have shown the scale of the problem the sector faces in meeting the Government’s ambitions. Across England over 58% of private rented households have an energy rating below a C. Around a third (32%) of private rented homes were built prior to 1919, some of the hardest to improve housing in the country.

The NRLA is calling on the amount that landlords should be expected to contribute to be linked to average market rents in any given area (known as broad rental market areas) as calculated by the Valuation Office Agency. Under the NRLA’s proposals this would mean the amount a landlord would need to contribute would gradually taper from £5,000 to £10,000, taking into account different rental values (and by implication, property values) across the country.

Alongside this, the NRLA is calling for a package of fiscal measures to support investment. This should include the development of a decarbonisation tax allowance, no longer applying VAT to energy efficiency and low carbon work and not charging council tax where energy improvements are being made to rental properties when they are empty.

Ben Beadle, Chief Executive of the NRLA, comments: “We all want to see as many energy efficient rental properties in the sector as possible. Besides being good for tenants, improvements made to rental properties ensure they become more attractive to prospective tenants when being marketed by landlords and agents. However, the Government’s proposals for the sector are not good enough.

“They rely on a misguided assumption that landlords have unlimited sums of money and fail to accept the realities of different property and rental values across the country.

“Ministers need a smarter approach with a proper financial package if they are to ensure their ambitious objectives are to be met.”

UK house prices see ‘marginal decline’ in October 2021

Published On: December 16, 2021 at 9:21 am

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Categories: Property News

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The latest Government House Price Index states that the average price of a property in the UK was £268,349 in October 2021.

The report states that this is an annual increase of 10.2%, down from 12.3% in September 2021. The monthly price change was -1.1%.

James Forrester, Managing Director of Barrows and Forrester, comments: “A marginal decline following the final curtain of the Stamp Duty holiday was always on the cards but a 1% monthly drop is far from the market collapse that many have been expecting.

“The real proof in the pudding is the annual rate of appreciation and this is the third consecutive month where house prices have climbed by more than 10% year-on-year.

“Based on the market trends seen following the initial Stamp Duty holiday deadline, we can expect house prices to bounce back on a monthly basis ahead of the Christmas break, as many push to complete before Santa comes to visit.”

Craig Tonkin, Head of Sales at Bective, comments: “While we’re now starting to see signs of the market cooling across some areas of the UK, London continues to build momentum with one of the strongest rates of monthly house price growth of all regions.

“This has been driven by an influx of foreign interest at the top end of the market and we’re seeing larger family homes, in particular, go under offer at pace due to a severe shortage of supply.

“With growing demand for London homes, the capital looks set to enjoy a sustained level of house price growth throughout the remainder of the year and well into 2022.”

Nicholas Christofi, Managing Director of Sirius Property Finance, comments: “Although the end of the Stamp Duty holiday and a potential increase in interest rates is expected to cause a market slowdown early next year, we’re unlikely to see any notable reduction in buyer demand and therefore house price growth should remain steady, at the very least.

“A potential interest rates increase will cause many buyers to pause for thought before transacting. However, we’re already seeing measures to reduce this impact with the Bank of England removing the mortgage rates rise stress tests and a number of mortgage providers already starting to offer some very favourable deals.”

Winter property maintenance checklist from GetAgent.co.uk

Published On: December 15, 2021 at 9:17 am

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Categories: Landlord News,Property News

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Estate agent comparison site GetAgent.co.uk is reminding homeowners about the importance of property maintenance during the winter months.

It has provided the following winter property maintenance tips:

1. Ensure the boiler is working correctly

This should be done on an annual basis and, if a replacement is not required, can cost as little as £50. If, however, a replacement boiler is required, the expected cost rises to between £1,750-£3,000.* 

2. Check the roof

Cracked or missing tiles, along with damaged or misaligned facias or soffits, can let rainwater into the home causing damp and even rot. Any check-ups must be carried out by a trained professional. An inspection should cost around £250, while a minor fix to a tile, for example, will add another £70-£100. If, however, damage to the roof is severe and all the tiles need replacing, it could cost more than £7,000, so regular checks are vital.*

3. Check for blocked guttering and damaged water pipes

If gutter repairs are required, it usually costs £30/metre, while properly insulating pipes costs around £50 and replacing them if they’re damaged can cost £500+. Water damage can also be caused by inadequate brickwork pointing. A simple pointing repair costs £35-55 per metre but can rise to more than £300 if left unchecked.* 

4. Consider insulation

Are the windows and doors properly sealed? To find out, an inspection will cost around £150, and if double glazing needs replacing or installing it costs an average of £300 per window. Meanwhile, roof insulation, vital to reducing heat loss, can cost £50-£80 to partially replace or repair, while a full replacement brings the cost up to as much as £500. Further insulation issues can arise from poorly installed window trickle vents, repairs for which can cost £60 per window.*

5. Look after the radiators

If radiators are leaking or aren’t properly and regularly bled, they don’t heat the home efficiently. A simple check-up and bleeding cost about £80, but if any radiators need replacing, they can cost £250 each.*

6. Inspect your chimney

If the home has a chimney, it must be regularly inspected before winter use to ensure it isn’t blocked. If homeowners fail to do this, the risk of a house fire is all too great, the resulting damage of which can be incalculable. A check-up and clean cost as little as £50.*

Colby Short, founder and CEO of GetAgent.co.uk, comments: “In the winter, the efficiency and integrity of the home are often taken for granted. But as the weather turns cold, it can highlight some serious flaws in construction and insulation, flaws that can be very pricey to fix. Addressing such issues at the earliest possible opportunity is the best way of minimising expenses and ensuring a warm and safe winter for everyone in the home. 

“But if major repairs are required, it’s essential that qualified professionals are hired for the job. Not only is it unsafe to try and handle repairs yourself, but the quality of the repair will also be inferior and therefore need repeating again much sooner than should be required.”

*Cost of winter-proofing jobs sourced from British Gas, Money Supermarket, HouseholdQuotes, Centralheating-Quotes, MyJobQuote, and Mybuilder