Written By Em

Em Morley

Landlords are Taking Action on Fire Safety, Shows Survey

Published On: July 27, 2017 at 8:03 am

Tags: fire safety,gas safety,Grenfell Tower,landlord responsibilities

More than half of UK landlords have taken action on the fire safety of their rental properties following the terrible Grenfell Tower fire, shows a new survey.

A study of 500 private landlords found that a third (32%) had checked their fire alarms, while 15% had instructed a professional to carry out a fire risk assessment in the wake of the tragedy.

Landlords are Taking Action on Fire Safety, Shows Survey

Landlords of Houses in Multiple Occupation (HMOs) and flats were among the most proactive over the past four weeks, with fire alarm checks being conducted in 50% of HMOs and 35% of flats. These properties also saw a higher than average number of professional checks, with 39% of HMOs and 22% of flats being visited for assessments.

Other measures taken by landlords included checking construction materials of their properties and contacting the freeholder regarding fire safety checks. 17% of landlords also said that they had installed a carbon monoxide alarm.

The survey, carried out on behalf of Simple Landlords Insurance, was conducted a month after the Grenfell Tower fire in North Kensington.

Perhaps unsurprisingly, landlords in London were the most responsive of all the geographical regions polled. Some 72% reported having taken at least one action following the disaster, compared with just a third in Wales.

However, one area of concern uncovered by the research was gas safety. While every landlord questioned said that they had conducted a gas safety inspection on their property, just 83% said that it had occurred within the last 12 months.

Landlords are legally required to have a Gas Safe-registered engineer check all gas appliances in their properties at least once a year. The majority of the remaining landlords (11%) fell between the 12 and 18-month bracket, while an alarming 4% said that it had been more than three years since their last gas safety check.

A detailed guide to your gas safety obligations can be found here: /landlords-guide-gas-safety/

We have also compiled a thorough and comprehensive guide to fire safety, which can be accessed here: /guide-fire-safety-rental-property/

The Head of Operations at Simple Landlords Insurance, Alex Huntley, comments on the study: “Fire safety is clearly on the agenda for landlords in the UK, with a little over half taking positive action in the last month alone. Landlords have a legal obligation to protect tenants under fire safety regulations, particularly those with large or shared properties.

“Gas safety is also of paramount importance and, although on the whole the survey has shown a positive and responsible response from landlords, they must understand their obligations; fire and gas safety must never be left to chance.”

The findings arrive as the Residential Landlords Association (RLA) calls for change in fire safety guidance.

Asking prices across London are being cut in order to draw sales

Published On: July 26, 2017 at 11:46 am

Author: Em Morley

Categories: Property News

Tags: housing market,London,London property market,property in London

A number of vendors in London have moved to reduce the asking price of their properties by tens of thousands of pounds, with the housing market continuing to stall.

The most recent data from online estate agent HouseSimple.com indicates that 35.3% of properties on the market have seen a price reduction this month. This data is based upon Zoopla’s price reduction statistics for all 32 London boroughs.

Borough Cuts

45.8% of properties in the borough of Richmond upon Thames have seen price cuts –more than any other borough in the capital. On the other hand, Newham saw the lowest proportion of price reductions at 25.7%.

HouseSimple.com Chief Executive Alex Gosling, noted: ‘These figures only support the view that the London property market has run out of steam. Agents are dropping prices to persuade cautious buyers to purchase in an economic climate where it’s difficult to predict what’s going to happen next.’[1]

Asking prices across London are being cut in order to draw sales

Mr Gosling went on to observe: ‘What’s unusual about the level of discounted properties is that It would suggest there are too many sellers and not enough buyers. But strangely this market is still suffering from a lack of new supply.’

‘There are actually plenty of buyers looking, but they’re a different buyer from 12 months ago. They are more cautious and viewing multiple properties before making a decision,’ he concluded.[1]

The table below indicates how all regions have performed in July, in comparison to February:

Borough	% listings reduced in price – Feb 2017	Total listings – July 17	No. of listings reduced in price – July 17	% of listings reduced in price – July 17
Barking & Dagenham	26.6	538	151	28.1
Barnet	29	4046	1280	31.6
Bexley	23	684	224	32.8
Brent	29.5	3434	1193	34.7
Bromley	31.4	1844	749	40.6
Camden	31.6	2545	884	34.7
City of Westminster	30.1	3451	1170	33.9
Croydon	28.2	1771	657	37.1
Ealing	33	2724	1031	37.9
Enfield	28.2	1656	559	33.8
Greenwich	22.7	1292	361	27.9
Hackney	26.5	1531	462	30.2
Hammersmith & Fulham	35.6	1705	592	34.7
Haringey	30.5	1367	528	38.6
Harrow	33.3	1753	710	40.5
Havering	24.3	1260	472	37.5
Hillingdon	33.9	1693	716	42.3
Hounslow	34.02	1696	717	42.3
Islington	29.2	1659	547	33
Kensington & Chelsea	35	2433	871	35.8
Kingston upon Thames	32.9	1359	616	45.3
Lambeth	31.5	3295	1191	36.2
Lewisham	29.7	1651	586	35.5
Merton	31.1	1614	615	38.1
Newham	22.6	2233	573	25.7
Redbridge	26.2	1181	394	33.4
Richmond	36.6	1576	721	45.8
Southwark	28.6	2804	826	29.5
Sutton	28.3	955	346	36.2
Tower Hamlets	23.9	3515	981	27.9
Waltham Forest	30.7	1211	397	32.8
Wandsworth	31.2	3869	1393	36

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/property-asking-prices-slashed-across-london-as-market-stalls

Industry reacts to Government plans to ban leaseholds on new builds

Published On: July 26, 2017 at 11:11 am

Author: Em Morley

Categories: Property News

Tags: leasehold property,leaseholders,new builds,rents,tenants

Yesterday saw the Government outline plans to ban housebuilders from selling new build properties as leasehold in England, following outrage over contracts permitting property owners to pay fees for ordinary works.

Unsurprisingly, the move has been welcomed by a number of property investors and industry peers.

Leasehold Bans

Martin Bikhit, Managing Director of Kay & Co, observed: ‘We welcome the ban for leasehold fees on new build houses. High ground rents substantially increase the cost of a lease extension or the purchase of the freehold of a property, so this proposal will make things much fairer for buyers in the long run.’[1]

Despite the proposals being met with optimism by many, there is still confusion on the future of many existing leasehold homeowners.

It is expected that the Department for Communities and Local Government (DCLG) will consult on what measures it can take in order to support leaseholder facing onerous charges. These include spiralling ground rents.

A DCLG spokesperson said: ‘Under Government plans, ground rents could be reduced so that they relate to real costs incurred and are fair and transparent to the consumer.’[1]

Positive Step

Mark Farmer, Government advisor on construction CEO of property and construction consultancy Cast, said: ‘The government’s plan to ban leaseholds on new build houses in England is a step in the right direction for fixing our broken housing market.’

Industry reacts to Government plans to ban leaseholds on new builds

‘Leasehold agreements for houses and the subsequent ground rents that are charged, artificially distort a housing market that is already struggling with issues surrounding affordability. Banning developers from selling new-build houses on leasehold agreements to drive additional revenue may help recover some of the confidence that the public has lost in the sector.’

Mr Farmer went on to note: ‘Without action on this and the parallel housing quality debate there is a real risk of buyers starting to move away from new build stock which would be a disaster for housing supply.’[1]

Certainty

Camilla Dell, Managing Partner at Black Brick, feels that the planned ban will give both protection and more certainty to buyers of new builds in the future.

Dell stated: ‘When purchasing any property, new build or not, with a long lease, the ground rent should always be peppercorn, but it does come down to the conveyancing process and for the buyers solicitor to carefully check the sales contract and ensure buyers interests are protected.’ [1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/plan-to-ban-leaseholds-on-new-build-houses-is-step-in-right-direction

RLA angry over ‘misleading’ evictions report

Published On: July 26, 2017 at 9:46 am

Author: Em Morley

Categories: Landlord News

Tags: evictions,evictions process,landlords,RLA

The Residential Landlords Association has reacted angrily to the Joseph Rowntree Foundation, after the publication of what it calls ‘misleading and distorted’ information into evictions in the private rental sector.

Alan Ward, Chairman of the RLA, sent the letter to the Foundation’s new chief executive Campbell Robb, formerly head of Shelter UK.

Concern

Mr Ward’s letter highlights concern about the, ‘potentially misleading and distorted presentation of official statistics on repossessions.’ This includes the claim that, ‘the number of tenants evicted by private landlords exceeded the number evicted by social landlords for the first time in 2014.’[1]

Citing detailed Ministry of Justice data, Ward said that these results clearly show that in every year since 2014, social sector landlords have made more repossession claims than private sector landlords.

In his letter, Ward said, ‘This would be the case even if every claim using the accelerated procedure was undertaken by private sector landlords. I would therefore be grateful if you could provide an explanation as to how JRF has arrived at the conclusion that ‘the number of tenants evicted by private landlords exceeded the number evicted by social landlords for the first time in 2014. ’[1]

RLA angry over ‘misleading’ evictions report

Disputes

Furthermore, the RLA disputes a claim from the Joseph Rowntree Foundation that, ‘over 40,000 tenants were evicted from their homes by landlords in 2015.’ It is also seeking clarification over the claim that, ‘of the 40,000 evictions, there were 19,019 repossessions in the social housing sector and 22,150 in the private rental sector.’[1]

Responding, Ward again cities Ministry of Justice figures: ‘This data very clearly shows that since 2014, more bailiffs have been sent to repossess properties in the social rented sector than in the private rented sector. The only way that it could be shown that there were more bailiffs involved in repossession cases in the private rented sector would be to assume that every accelerated procedure was for the private rented sector which as well as being undocumented is unlikely given the documented balance between private and social landlord evictions. I would be grateful therefore if the JRF could make clear where its figures have come from.’[1]

The response from the RLA comes a day after Paul Shamplina, head of Landlord Action, called for eviction firms to be regulated, in order to ensure professionalism within the sector.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/7/trade-body-angry-over-misleading-and-distorted-evictions-report

Mortgage Lending Remains Stable, While Complex Buy-to-Let is on the Up

Published On: July 26, 2017 at 9:41 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,finance,mortgages

Mortgage lending remained stable last month, while complex buy-to-let borrowing is on the up, according to the most recent banking figures.

Mortgage Lending Remains Stable, While Complex Buy-to-Let is on the Up

The latest high street banking data from UK Finance shows that consumer credit growth was 1.9% in June, compared with 2.1% in the previous month.

Gross mortgage borrowing totalled £13 billion last month, while net mortgage borrowing was 2.6% higher than in June last year.

Eric Leenders, the Head of Personal at UK Finance, comments: “June saw consumer borrowing from high street banks, which accounts for 45% of the overall credit market, maintain its slower pace, as rising inflation put pressure on household incomes. Housing activity remained relatively stable, with over 74,000 mortgages approved last month, while businesses continue to build their reserves, borrowing less and increasing their deposits at an annual rate of 6.1%.”

Meanwhile, the parent company of Paragon Mortgages – the Paragon Group of Companies – has today released its third quarter (Q3) trading update for the nine months to 30^th June 2017.

The Group reported total lending and investment for the first three quarters of the year of £1.4 billion, with buy-to-let mortgage lending comprising £1 billion of the total.

Buy-to-let lending between March and June 2017 was particularly strong, at £458m, compared to £166m in Q3 2016, which followed the increase in Stamp Duty on additional properties.

Paragon’s healthy application flows reflect market share gains as a result of increasing demand from more complex and professional customers. The proportion of these customers in the pipeline rose to 70% during the quarter, up from 62% at the start of the year. At the end of the quarter, the pipeline of new buy-to-let business totaled £700m.

The Group also made good progress with its diversification strategy, growing new asset finance and other specialist lending by 66% to £330m in the nine months to the end of June.

The Managing Director of Paragon Mortgages, John Heron, says: “The buy-to-let market has been the subject of repeated fiscal and regulatory intervention in recent times. This is changing the nature of buy-to-let, and what we are seeing emerge is a more specialist market with a marked increase in more complex, professional landlord business. This is very well aligned with Paragon’s experience and capability, as underlined by today’s strong trading figures and by our early implementation of phase two of the PRA’s regulatory requirements for buy-to-let.”

Independent Shops Replace Waitrose-Effect in Terms of House Price Premiums

Published On: July 26, 2017 at 9:21 am

Author: Em Morley

Categories: Property News

Tags: amenities,homebuyers,house prices,London

High streets filled with independent shops have replaced the Waitrose-effect in terms of adding house price premiums, according to estate agent Marsh & Parsons.

Independent shops are magnets for homebuyers, who are prepared to pay a premium in London for the privilege of living nearby, the agent found.

A street filled with vibrant, independent shops is now a more desirable amenity than the presence of a Waitrose. In the past, the so-called Waitrose-effect of having the supermarket in close proximity attracted a house price premium. Today, homebuyers would rather have the culture and character of independent shops in their neighbourhoods.

Marsh & Parsons has identified nine London streets where independent shops dominate and properties nearby command an average price premium of 10% more than equivalent homes further from such amenities:

Independent Shops Replace Waitrose-Effect in Terms of House Price Premiums

Chiltern Street, W1

Bars and restaurants in the area include The Bok Bar and Blandford Comptoir, while the Atlas Gallery is also close by.

Brecknock Road, N19

Future & Found is a popular shop in the neighbourhood, while The Pineapple also draws in buyers.

Fortess Road, NW5

Independent boutiques in this district include SK Vintage and Jessica de Lotz Jewellery.

Salusbury Road, NW6

The Iris Fashion boutique and Queen’s Park Books are just a couple of the reasons that house prices here cost more than the average.

Shoreditch High Street, E1

The Arts Club, Bull in a China Shop and Andina London are all popular restaurants and bars in this location.

Caledonian Road, N7

Around this area, Shillibeer’s, Kokeb and Hemingford Arms are all attractive to buyers.

Marylebone Road, NW1

In Marylebone, Margaret Howell, Gallery 1930 and Daunt Books are all reasons to buy here.

Queens Gate, SW7

Boosting house prices on this street are Royal Spades and Chic Elegance.

Golborne Road, W10

Potential buyers in this neighbourhood will enjoy Snaps & Rye, Lisboa Patisserie and Phoenix on Golborne being close by.

The Sales Director of Marsh & Parsons, Alex Lyle, says: “The predominance of chains in the high street has often meant that one is indistinguishable from another. People crave character and a street brimming with independent food shops, fishmongers, pubs with their own micro-breweries, bike shops, clothes shops and bookshops are a major draw.

“This adds great character to an area and is a major plus point. We have identified the new Portobello Roads – which 25 years ago helped put Notting Hill on the map. In an increasingly homogenous world, people seek diversity in their surroundings – a specialist coffee shop, a bespoke hat shop or a great world food restaurant can prove a real attraction to buyers. And that has taken over from the Waitrose-effect.”

Landlords, use these findings when considering your next property investment – young tenants will also be attracted to an area boasting independent shops, so find a great hotspot to boost your chances on the lettings market.

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