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Em Morley

Insured Guarantor Service for Students and Professionals Expands

Published On: July 20, 2017 at 8:21 am

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Insured Guarantor Service for Students and Professionals Expands

Insured Guarantor Service for Students and Professionals Expands

Housing Hand, the UK’s only secured and reliably insured guarantor service for students and working professionals from the UK or abroad, is expanding internationally to Europe, Asia and the Far East.

The firm has recently launched in India, with a base in New Delhi, and aims to expand exposure in the region. Housing Hand is hoping to increase the number of Indian students and professionals moving to the UK using its guarantor service.

The company has also formed a partnership with 51Offer in China – the largest firm working with Chinese students coming to UK universities. A formal partnership agreement was signed in Shanghai and Housing Hand is working closely with 51Offer to further expand the brand in China.

The Managing Director of Housing Hand, Jeremy Robinson, comments on the expansion: “We currently work with many international students who have begun their study in the UK. Our partnerships with UK and international accommodation providers will help to grow the volume of applicants that are looking to secure a UK guarantor, before reaching the UK.

“We have met with many universities and accommodation providers who are keen to reduce their financial risk and widen the pool of potential tenants. By expanding internationally, we can further add to the secure and risk-free tenants we hand over to accommodation providers.”

He continues: “We are looking to become the first international guarantor service, with plans to launch in Ireland later this year, followed by a rollout to France in early 2018 and America in 2018/2019.

“The rental markets overseas are very different from the UK, and there are obvious legal and operational challenges ahead of us. However, we see real demand for our service in France, as thousands of UK nationals, both students and professionals, are renting there.”

Are you a student landlord? If so, you may find that this insured guarantor service is suitable for your tenants, either UK nationals or overseas students. It is worth looking into ahead of the new academic year.

Case of letting agent fraud described as ‘shocking and alarming’

Published On: July 19, 2017 at 1:22 pm

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A case of a rogue letting agent convicted of £200,000 worth of fraud involving deposits has been described as ‘stunning and alarming.’

Mr Timothy Shinners of Bolton failed to put any of the deposits he received from tenants into a tenancy deposit scheme over a six-year period. Instead, he spent the money himself.

Shockingly, the case went to private prosecution after the police failed to investigate.

Deposits

A director at Platinum Properties in Bolton, Mr Shinner took at least £76,352 of company money. He was last week sentenced to three years behind bars and banned as acting as a director for the company for at least eight years.

The jury at Bolton Crown Court found Mr Shinner guilty of:

  • Failing to comply with statutory requirements surrounding the registering of tenancy deposits in a Government approved scheme
  • Fraudulently adapting tenancy protection documents to cover-up irregularities

The court heard that Shinners knowingly received deposits and did not transfer them into one the three Government approved schemes.

These deposits totalled at least £200,000 and were only registered and protected following a cash injection from another company director. This was described as an ‘act of decency’ by the Judge.

Reports

This matter was reported to the police, only for them to decline to investigate.

A police statement said: ‘There are fewer police officers investigating reports of fraud at a time when the volume of fraud is increasing significantly,’ citing difficult decision that, ‘may not be satisfactory to the victim.’[1]

It added: ‘Due to the changing face of crime, we are not in a position to investigate each report of fraud.’

Case of letting agent fraud described as 'shocking and alarming'

Case of letting agent fraud described as ‘shocking and alarming’

‘Alarming’

Deposit reform campaigner Ajay Jagota, founder of deposit-free renting platform Dlighted, offered his response to the case:

‘This case is stunning and alarming. £200,000 of fraud involving deposits taking place over six years – and not even the police could stop it. Some people are trying to convince us that nothing needs to change in the tenancy deposit system. Cases like this are proof things do. How many more times does this need to happen before something is done?

My real concern is that it appears there are countless agents who under current schemes are allowed to keep these deposits and appear to use this money for their person or day-to-day business use because they think it’s a handy pot of cash lying around. This money legally belongs to the tenants and should not be left unregulated – not least when we are talking about overall deposits which will soon be close to £6 Billion. No wonder the police don’t have the resources to police it all.

What happens when the money supposedly held in a segregated account runs out? They evidence suggests that these companies close shop and go under. And where does that leave their landlords and tenants?

We keep a running total of the deposits crooked letting agents are convicted of stealing each year, and will be publishing figures for the second quarter of 2017 next week. But all the indications are that this year’s figure will exceed the £1m recorded last year. In a sector which many are desperate to raise standards these incidents which are far too frequent do little to demonstrate it is changing for the better.’[1]

[1] http://www.propertyreporter.co.uk/landlords/letting-agent-jailed-three-years-for-deposit-fraud.html

 

UK rents rose by 1.8% in year to June, says ONS

Published On: July 19, 2017 at 9:47 am

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Rental prices paid by private tenants in the UK increased by 1.8% in the year to June 2017, according to the most recent figures from the Office for National Statistics (ONS).

This was the third consecutive month that rents increased by this figure, led by growth in England, where rental prices increased by 1.9%. Wales saw growth of 1.1% and Scotland saw rises of 0.2% over the same period.

Increases

Between January 2011 and June 2017, private rental prices in the UK increased by 14.8%, driven by price increases in London. However, when the capital is excluded from the data, rental prices actually rose by 10.8% over the year.

Despite historical growth in prices within London, private rental prices here rose by 1.3% in the year to June 2017. This was 0.5% less than the national 12-month rate of growth.

UK rents rose by 1.8% in year to June, says ONS

UK rents rose by 1.8% in year to June, says ONS

Pressure

John Goodall, CEO and co-founder of buy-to-let specialist lender Landbay, stated: ‘While the pace of house price growth may have slowed, house prices still continue to rise, ultimately meaning that fewer people can afford to buy, which can only place greater pressure on the UK’s rental sector. For that reason it’s essential that new construction is planned across all tenures, so that rents don’t escalate to the point where they’re inhibiting aspiring homeowners’ ability to save for a deposit.’[1]

‘Quite simply, we need to build more purpose built rental homes to support those hoping to take their first steps onto the property ladder,’ Goodall went on to observe.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/uk-rents-increase-by-1-8-says-ons

Property Buyers in London Most Likely to be Gazumped

Published On: July 19, 2017 at 9:43 am

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Property buyers in London are the most likely to be gazumped out of their purchase, found the latest research by online estate agent eMoov.co.uk.

Property Buyers in London Most Likely to be Gazumped

Property Buyers in London Most Likely to be Gazumped

The agent asked 1,000 UK homeowners whether they were gazumped during their most recent property purchase. The results found that in the last two years, an over-inflating market has seen the practise of gazumping rise from 13% in 2015 to 36% in 2017.

Of the 36% of respondents who have been gazumped, the regional breakdown is as follows:

Although the capital’s property market has seen the largest wobble in buyer interest following the Brexit vote and more recent General Election, London buyers are still the most likely to be gazumped, with 35% of them saying that they have been pipped to the post on their most recent property sale.

Over the last two years, the average house price in the capital has surged by 17%, which could be an influential factor in the increasing number of homeowners being gazumped, which is up from 17% in 2015.

The South East has the second highest rate of gazumping, at 16%, with both this region and London also home to the highest average house prices of all UK areas.

However, the North West (9%), West Midlands (7%), and Yorkshire and the Humber (6%) have seen the next highest levels of gazumping, despite having much lower average house prices.

eMoov also asked those that have been gazumped which was the nearest major city to where they lived. Outside of London, the next highest level of gazumping was in Manchester, at 27%, Birmingham, at 26%, Leeds, at 23%, Cardiff, at 20%, Brighton, at 19%, and Southampton, at 19%.

The Founder and CEO of eMoov, Russell Quirk, responds to the findings: “Unfortunately, it would seem the practise of gazumping is once again becoming more prominent, as market values continue to climb higher. Traditionally, it becomes rife in over-inflated markets, where high demand and higher prices push buyers to resort to dirty tactics in their desperation to secure the property they want.

“In the last few months, the market across the UK and London has cooled, due to levels of uncertainty with the addition of a fall in stock levels, but, despite this, there are pockets of the capital, and elsewhere around the UK, that have remained hot where buyer demand is concerned.”

He continues: “This is demonstrated by some of the more affordable regions of the UK also seeing some of the largest levels of gazumping, such as the North West and the Midlands. The London market remains the most cutthroat by a long shot, however, buyers are still being gazumped nationwide, from Manchester, Liverpool, Newcastle, Leeds, Brighton, Reading and Cardiff.”

The RLA Welcomes Reintroduction of Bill Concerning Housing Standards

Published On: July 19, 2017 at 9:14 am

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The Residential Landlords Association (RLA) has welcomed news that Labour MP Karen Buck is to reintroduce her Private Members’ Bill into Parliament today. If passed, it will hopefully improve housing standards in the private rental sector.

The RLA Welcomes Reintroduction of Bill Concerning Housing Standards

The RLA Welcomes Reintroduction of Bill Concerning Housing Standards

Buck, who represents Westminster North, is reintroducing the Bill, called the Homes (Fitness for Human Habitation) Bill, which would resurrect a law dating back to 1885 if passed.

Tenants already have the right to a home that is fit for human habitation, but only if the rent is less than £52 per year (or £80 in London) – figures that were set back in 1957.

Under more recent legislation – the Housing Act 2004 – landlords can be forced to make repairs to their properties by local councils, but the authorities tend to act only on tenants’ complaints and have few resources to proactively inspect housing standards in private rental accommodation.

Just 2,006 landlords have been convicted of offences under the Housing Act 2004 so far.

When Buck first introduced the Bill, almost two years ago, she explained that she wanted legislation to counter “a growth in the numbers of landlords who try to cut corners and get away with letting out substandard accommodation”.

The RLA is pleased that Buck plans to re-introduce the Bill today. The Policy Director of the organisation, David Smith, says: “Tenants have a right to expect that homes are fit for habitation, and the vast majority of good landlords already provide this. This Bill therefore reinforces what landlords should already be doing.

“By providing a route to direct tenant enforcement of basic housing standards, the Bill will give a further opportunity to deal with the minority of landlords who have no place in the market. Current legislation often lets these criminals off the hook due to underfunded councils being unable to properly enforce it.”

He adds: “We look forward to working with Ms. Buck as the Bill is developed and considered in Parliament.”

Do you support the Bill concerning housing standards in the private rental sector?

Rental market activity cooled in June

Published On: July 19, 2017 at 9:01 am

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The most recent Agency Express Property Activity Index reveals that there was a fall in the number of properties let during the last month.

This was due to a lack of supply restricting choice for would-be renters, according to the report.

Let Properties

In all, the percentage of properties ‘let’ slipped to stand at -1.9%, with historical records indicating that the figure for properties ‘let’ during June is currently at its lowest level for three years.

While these figures for properties ‘let’ fell during the month, new listings ‘to let’ did see a small rise of 0.9%. However, over a three-month rolling period, figures recorded across the country remain down. New listings are at -2.3% and properties ‘let’ at -4.9%.

This report seems consistent with the most recent one from the Council of Mortgage Lenders, which shows that less buy-to-let landlords are looking to add to their portfolios. Others are looking to exit the market altogether, due to the recent tax assault of buy-to-let investors.

Declines

Assessing performance across Britain, just 5 of the 12 regions covered by the Property Activity Index reported an increase in new listings ‘to let’, alongside those ‘let.’

The regions that recorded the smallest declines in properties ‘to let’ in this month’s index were:

  • West Midlands – 7.5%
  • Scotland – 4.5%
  • Yorkshire and the Humberside – 4.2%
  • Wales – 1.7%
Rental market activity cooled in June

Rental market activity cooled in June

In terms of properties ‘let by’ the smallest declines were seen in:

  • Wales – 9.8%
  • South West – 4.4%
  • Central England – 1.1%
  • North West – 1.1%

The largest declines in this month’s Property Activity Index were made in the North East. Here, new listings ‘to let’ fell to sit at -23.5% with new properties ‘ let’ standing at 26.1%.

Slow Moving

Stephen Watson, Managing Director of Agency Express, observed: ‘As we look back over historical data recorded by the Property Activity Index, we can see that June is usually a buoyant month for UK lettings. However, this year we have witnessed a slower moving market specifically in the number of properties ‘let’.’[1]

‘Moving in to July and August, if usual trends dictate we don’t anticipate any large increases in activity,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/uk-rental-market-slows-in-june