Written By Em

Em Morley

Local Authorities Already have Enough Power to Tackle Substandard Property, Housing Minister Insists

Published On: August 7, 2017 at 8:13 am

Author: Em Morley

Categories: Property News

Tags: Health and safety,property conditions,rogue landlords,substandard property

Local Authorities Already have Enough Power to Tackle Substandard Property, Housing Minister Insists

Local authorities already have enough power to tackle substandard property conditions in the private rental sector, the Housing Minister has insisted.

Alok Sharma, the Minister of State for Communities and Local Government, made the claim in response to a question from Labour MP Grahame Morris on whether local authorities will be granted the power to enforce acceptable standards on private property.

Morris asked Sharma whether councils would be given the authority to insist that landlords or homeowners maintain their properties to a satisfactory standard if its current condition is having a negative impact upon the local community.

The Housing Minister responded: “Local authorities already have strong powers to tackle poor property conditions.

“We encourage local authorities to take action where properties are neglected and their condition affects the amenity of an area. There are already extensive powers available to authorities, which range from notices under Section 215 of the Town and Country Planning Act 1990, which can deal with derelict land and buildings, to Section 29 of the Local Government (Miscellaneous Provisions) Act 1982 for works on unoccupied buildings.”

He continued: “Council and housing association landlords are responsible for most repairs to their housing stock. Social landlords are obliged, by law, to maintain the structure and exterior of their properties.

“All properties in the social and private sectors must comply with the Housing Health and Safety Rating System. Where a property has serious hazards that present a risk to health and safety, local authorities can carry out an assessment under the Housing Health and Safety Rating System. If they are aware of a serious hazard, they are under a duty to take appropriate action to address it.”

Recently, a proposed bill to improve housing standards in the private rental sector was reintroduced into Parliament. The Residential Landlords Association spoke out in support of the plans.

Landlords, make sure that you provide safe, secure and comfortable housing for your tenants, and stick to the law on property standards.

Nearly 81,000 Build to Rent units planned or completed in England

Published On: August 4, 2017 at 12:02 pm

Author: Em Morley

Categories: Property News

Tags: build to rent,investment,private rental sector,tenants

Fresh Government figures show that there are 80,855 Build To Rent properties that have either been completed or are planned.

Data shows that investment in this region of the private rental sector could rise to £70bn, which could help to create 15,000 homes to rent each year until the year 2022.

In addition, it has the potential to reach a total of at least 240,000 homes built for the purpose of privately renting by 2030.

‘Unlocking’

These figures were revealed during the announcement of a £65m boost from the Government to ‘help unlock’ more than 7,600 homes in Wembley. At least 6,800 of these properties will be available to rent.

The Build to Rent sector has also received the backing of the Royal Institution of Chartered Surveyors and the British Property Federation.

A joint statement said proposals under consideration with the Government include altering planning rules so councils must initiate greater forward planning of rental needs.

There are also proposals to introduce tenancies of three years or more, with these seen as more family-friendly than the more traditional six months tenancy often seen in buy-to-let.

Nearly 81,000 Build to Rent units planned or completed in England

Longer Tenancies

The British Property Federation says that 35,000 tenants have been offered tenancies of three years or more in recent years, ever since a greater emphasis was put on longer tenancies.

Chief Executive of the BPF Melanie Leech, said: ‘We fully support the introduction of affordable private rent, and the inclusion of build to rent and affordable private rent within the National Planning and Policy Framework and Planning Practice Guidance – a multi-tenure approach where all housing sectors receive the right policy support is critical to fixing the UK’s broken housing market.’[1]

Head of UK external affairs Geoff White also said: ‘The government’s proposals to boost supply across all tenures is a welcome acknowledgement of the extent of the housing challenges and the scale of the response required.’[1]

Housing and Planning Minister Alok Sharma observed: ‘Whether renting or owning all families should have the security they need to be able to plan for the future. That’s why as part of our plan to fix the broken housing market we’ve been taking action to create a bigger and better private rental market, supporting new Build To Rent developments so that tenants can have greater choice.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/8/almost-81-000-build-to-rent-units-in-england-completed-or-planned

North East property prices continue to decline

Published On: August 4, 2017 at 9:58 am

Author: Em Morley

Categories: Property News

Tags: house prices,landlords,North East,North East property

The most recent data and analysis from KIS Housing has revealed that property prices in the North East have continued to decline.

During July, there was a 0.4% fall in prices, which has led to values slipping below those seen at the same period last year.

North-East Values

A typical property in the region is currently valued at £164,752, representing a month-on-month fall of £705 in cash terms. Prices are now 0.2% below the £165,039 seen in July 2016.

House prices in the region are now 1.8% down over the course of the year to date. The largest falls were seen in Durham City (-2.5%), Houghton-le-Spring (-1.5%) and Whitburn (-1.2%).

On the other hand, properties in Blyth, Jarrow and Whitburn have seen the strongest performances during the last 12 months. Prices in these regions have risen by 6%, 4.3% and 4.1% respectively.

Rents

Rents in the North East increased slightly during July, to £589 per calendar month.

Typical rental yields remain unchanged, with investors currently seeing an average return of 4.3%. North East property investors are continuing to see higher returns than lose investing in the capital, with the average yield in London at 3.2%.

Strong regions for rental yields include Gateshead (5.6%), Sunderland and Newcastle (5.1%).

Blyth is still the cheapest place to rent in the North East at £417pcm. This was followed by Seaham at £422pcm. At the other end of the scale, Tynemouth commanded the largest monthly rent, of £1,095pcm.

North East property prices continue to decline

Growth Over?

Ajay Jagota, founder and Managing Director of Keep it Simple and Dlighted, observed: ‘These figures would suggest that the North East’s prolonged period of house price growth is over – for a month at least. It will be fascinating to see next month- with August a traditionally strong month for the housing market – whether this is a trend or a blip.’

‘The driving force for North East house prices reversing in slow motion like this. is the ‘wait and see’ outlook both buyers and sellers have adopted in light of ongoing economic and political uncertainty. Ironically, prices have become very stable as a result – if they are looking for certainty is exactly what they have created with yields unchanged over a month, rents unchanged over a year and house prices on a plateau – albeit one with a modest downward gradient. In the face of a good deal of upheaval, its extraordinarily impressive how strong house price growth has been in some areas over the past 12 months – noticeably Blyth and Jarrow.’[1]

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-continue-to-reverse.html

New Home Counties are Emerging as Commuter Belt Spreads

Published On: August 4, 2017 at 9:41 am

Author: Em Morley

Categories: Property News

Tags: commuter belt,Home Counties,London,property market

New Home Counties are emerging in the south and southeast of the country, as the commuter belt grows and outperforms London in terms of house price growth.

These are the findings of the latest study by leading hybrid estate agent eMoov.co.uk, which shows that the Home Counties continue to surpass the capital where house price growth is concerned, with the average property value up by 1.69% in 2017 so far and 5.71% annually.

A slowing London market continues to lose momentum against the more affordable commuter belt surrounding it, with prices only increasing by 0.84% since the start of this year in the capital and 2.96% since the same time last year.

The average house price in London now stands at £481,345, making it continually harder for first time buyers to get onto the property ladder and more feasible to look to the commuter belt to buy their first homes, which is fuelling house price growth across the Home Counties.

In fact, recent research found that one in four young Londoners plan to leave the capital to buy their first homes.

The improvement of transport and infrastructure is helping to fuel this, by bringing the surrounding areas closer to London, which is creating new commuter hubs and opportunities for them to support the regional economy.

New Home Counties are Emerging as Commuter Belt Spreads

As a result, the traditional definition of the Home Counties has shifted and now, many consider those slightly further afield, such as Bedfordshire, Oxfordshire and Hampshire, to be part of the Home Counties.

And it’s not just homebuyers that are causing this shift; high rental competition is also pushing the commuter belt further east.

So far this year

It is, in fact, one of these newer additions that has seen the highest house price growth so far this year. Since the beginning of 2017, Bedfordshire has recorded an impressive 3.69% increase, from an average value of £262,860 to £272,558, followed by Buckinghamshire (+2.87%), which rose from £394,551 to £405,865. Essex places third, with a 2.54% jump since January.

On an annual basis

The same three counties also take up the top three spaces for greatest house price growth over the past year. Essex experienced the best growth rate, of 9.89% year-on-year, seeing prices jump from an average of £275,625 to £302,881. Bedfordshire is close behind, with a 9.41% increase, followed by Buckinghamshire, where property values have risen by an average of 6.98% annually.

The most affordable

East Sussex boasts the lowest average house price across all the Home Counties, at £264,276. Although Bedfordshire and Buckinghamshire have enjoyed similar growth patterns over the past year, Bedfordshire has an average house prices more than £100,000 lower than Buckinghamshire’s, making it the second most affordable of the Home Counties. It is followed by Kent (£279,529), Essex (£302,881) and Hampshire (£307,014).

Even when you factor in the cost of an annual season ticket to commute into the capital by train, homebuyers are still savings hundreds of thousands of pounds by living outside of London.

The Founder and CEO of eMoov, Russell Quirk, comments on the new research: “With London’s prices still out of reach for the average person, a short jaunt to the Home Counties offers a compromise to continue making a London wage, but without paying the price of the capital’s property market.

“Often, living outside of the city also translates to getting more bang for your buck, such as a garden, a car parking spot and more living space in the home.”

He continues: “The rise in popularity of Bedfordshire demonstrates the continual overspill effect of the UK housing market as a whole. In London, when one borough becomes too expensive, the next best but less desirable borough is the next port of call, until that too becomes regenerated and over inflated.

“We’re seeing a similar process in the Home Counties generally, whereby all are proving popular by London standards, but those that have seen stronger price growth already are now taking a back seat, whilst newer more affordable options, like Bedfordshire and Hampshire, emerge as the front runners.”

He adds: “With the approaching launch of Crossrail and the proposed HS2 route, who knows how far the London commuter zone will soon stretch?”

Landlords, it may be wise to start investing in these new hotspots before prices become over inflated in those areas too.

It’s been a Slow Summer for the Property Market, Reports Agency Express

Published On: August 4, 2017 at 9:03 am

Author: Em Morley

Categories: Property News

Tags: properties for sale,property market,property sales,summer

It’s been a typically slow summer for the UK property market, according to July’s Property Activity Index from Agency Express.

It’s been a Slow Summer for the Property Market, Reports Agency Express

The figures show that the property market has sprung no surprises this summer, as the index reveals a slowdown in activity during July.

On a monthly basis, the number of new property listings for sale dropped by 16.6%, while the amount of properties sold fell for the second consecutive month, by 5.9%.

However, looking back over the index’s historical records, a drop in July was anticipated. Annual comparisons show that the declines seen this year are lower than those recorded 12 months ago.

Figures seen over a three-month rolling period are also performing favourably, again exceeding those recorded in 2016.

Across the country, just three of the 12 regions included in the Agency Express index bucked the seasonal trend. This month’s top performing region was the North East. Following three months of decreases, new property listings rose by 3.1%, while the number of properties sold was up by a record best 10.7%.

Other prominent performers included:

New property listings

East Midlands: +4.4%
North East: +3.1%
Scotland: +2.5%

Properties sold

North East: +10.7%
South West: +4.4%
Wales: +0.4%

The greatest declines recorded in July’s index were in London. New property listings dropped by a huge 46.1%, while the amount of properties sold was down by 8.7%. Again, looking back at Agency Express’ historical data, this year’s figures are better than those recorded in previous years.

Stephen Watson, the Managing Director of Agency Express, comments on the latest data: “Throughout the summer holiday months, seasonal adjustments are anticipated, so we are not surprised by July’s figures and expect similar trends in August.

“This aside, the UK property market seems to have plateaued along with lending, so the usual September bounce-back may not be as robust.”

For the latest Agency Express index for the lettings market, click here: /rental-market-activity-cooled-june/

Estate agent claims that UK property demand is at five-year high

Published On: August 4, 2017 at 9:02 am

Author: Em Morley

Categories: Property News

Tags: London property market,prime central london,property,property demand

One of Britain’s largest independent estate agents said it has seen demand for property in the UK rise substantially in recent months.

However, Strutt & Parker also reports that the housing market in prime central London market is remaining static.

Contrasts

The firm’s quarterly residential report for the second quarter of 2017 highlights the contrasting property markets in London and rest of the country. There has certainly been a shift in buyer sentiment in the last three months.

Guy Robinson, Partner and Head of Regional Residential Agency at Strutt & Parker noted: ‘We have some excellent stock on our books and new applicants are up nearly 5% year on year. When we look at the average number of applicants we have per property across the UK, it’s higher than it has been at any point since 2012.’

‘More properties buyers lead to higher viewing numbers, which should generate an increase in sales, which is very encouraging,’[1]

Decreases

On the other hand, the quarterly sales figures show that London in general saw a significant price fall of 2% in the second quarter of the year.

Though the number of homes changing hands in the prime central locations of London rose by 24.3% in comparison to the same period last year, transactions actually slipped by 3.5% compared to Q1. In addition, they were still 22.7% under the five-year average for Q2.

Estate agent claims that UK property demand is at five-year high

Charlie Willis of Strutt & Parker, noted: ‘Transaction levels in prime central London, across all price bands, are up on this time last year and this uptick in volumes is very welcome. However, the values being achieved are lower than they have been – savvy buyers are choosing now to take advantage of current pricing.’

‘Whilst one might have expected more transactions from overseas buyers due to the currency benefits currently at play, domestic buyers are the most prolific. We expect prices to remain flat for the rest of 2017 and into 2018 which we hope could spur further activity.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/8/demand-for-uk-property-at-a-five-year-high-says-strutt–and–parker