Written By Em

Em Morley

A Fifth of Homeowners Receive Funding from the Bank of Mum and Dad for Home Improvements

Published On: May 9, 2017 at 9:12 am

Tags: bank of mum and dad,home improvements,homebuyers,homeowners

A fifth of homeowners (18%) say that they rely on funding from the bank of mum and dad to help finance their home improvements, while 19% admit that their parents physically help them carry out DIY, according to the latest research by online home service marketplace Plentific.com.

A Fifth of Homeowners Receive Funding from the Bank of Mum and Dad for Home Improvements

Although it’s well known that the bank of mum and dad is increasingly being relied upon to help buyers purchase their own homes, it now appears that once these buyers become homeowners, they still rely on their parents to fund home improvements.

In the past, owning your own home as a young adult wasn’t the struggle that it is today. Many older parents will remember a time when they could buy a family home for a realistic sum that was relative to local salaries – at least in comparison to today’s standards.

Plentific’s study found that 26% of homebuyers across the UK now receive financial aid from the bank of mum and dad when purchasing a home. This figure increases dramatically for younger homeowners, with 58% of respondents aged under 34 admitting to receiving financial help from their parents.

Unsurprisingly, London ranked top of the table (59%) for the number of homebuyers receiving financial support from the bank of mum and dad when buying a property. With house prices increasing in the capital, it may seem sensible to buy a more affordable home that needs fixing up.

However, 48% of London homeowners admit that they also receive financial help from their parents to pay for home improvements.

Belfast came in second highest for homebuyers receiving financial aid from parents when purchasing a property, at 30%, with Brighton and Glasgow taking the bottom spot, with just 12%.

Homebuyers in Birmingham (16%), Southampton (18%) and Nottingham (19%) were the next lowest in the rankings, while those in Manchester (22%), Leeds (23%) and Bristol (25%) sat at the higher end of the table.

When looking at parents who provide financial support for home improvements, London (48%), Liverpool (31%) and Brighton (17%) topped the table.

The top locations for homeowners who received physical help with DIY from their parents were London (29%), Bristol (26%) and Sheffield (22%).

A spokesperson for Plentific, Stephen Jury, comments: “Our statistics really highlight the struggles young people face when buying or renovating a property. Whilst buying a cheaper property that needs work may seem like a good option, the number of young people receiving financial and physical help from their parents with renovation projects is quite alarming.”

Have you had to help your child either buy or renovate a home?

Property Market Recorded Unseasonal Dip in April

Published On: May 9, 2017 at 8:12 am

Author: Em Morley

Categories: Property News

Tags: general election,properties for sale,property market,property sales

The UK property market recorded an unseasonal dip in April, according to the latest Property Activity Index from Agency Express.

Across the country, the number of properties sold dropped, by 15.1% over the month, as did new listings for sale, by 11.5%.

Property Market Recorded Unseasonal Dip in April

Over a three-month rolling period, the index’s data shows more stability across the property market, with new listings up by 5.4% and the number of properties sold up by 7%.

However, looking back at historical records, we can see that figures for April are down when compared to those recorded last year.

Regionally, all of the 12 regions recorded in the Property Activity Index reported decreases in the number of properties sold and those for sale.

The best performing regions for the month of April were:

New listings for sale

Wales: -4.6%
North East: -5.4%
South East: -7.5%
North West: -9.2%

Properties sold

Scotland: -7.4%
Central England: -10.5%
Wales: -11.4%
East Anglia: -12.7%

The greatest decrease recorded in April was in London. The number of properties sold dropped for the first time since December, by 22.4%. The North West followed suit, with a 21.4% decline in the amount of properties sold.

The Managing Director of Agency Express, Stephen Watson, comments: “This month, we have witnessed an unseasonal decline in figures, which may be as a result of the two bank holiday weekends and reduced number of working days. However, if we look at the Property Activity Index’s rolling three-monthly figures, we can see that all 12 regions reported increases in both for sale and sold properties, so essentially the market remains steady.

“Moving forwards into May, we generally see a slower pace across the market, then a pick up again in June, but, as we head towards another General Election, it will be interesting to see how the usual figures fair in comparison.”

Demand for property in Scotland stays strong

Published On: May 8, 2017 at 11:52 am

Author: Em Morley

Categories: Property News

Tags: landlords,property prices in Scotland,Scotland,Scottish landlords

New figures from a leading property consultancy in Scotland have further underlined the fact that demand for property in the country is strong.

The Registers of Scotland report for January-March 2017 shows that the volume of residential property sales north of the border rose by 3.4%. In addition, the total value of sales across Scotland increased by 5.5% in comparison to the same quarter in 2016.

Sales

Traditionally, the winter months are a less favourable period in which to sell property. However, the increase in sales reported by Registers of Scotland indicates that buyer demand stayed fairly constant in the opening quarter of the year.

Another report from CKD Galbraith underlines this trend, with residential property sales up by 7% over the last quarter, compared to 2016. This equates to £47m of property sales being handled by the firm during the period.

Over the same timeframe, the firm recorded a 57% increase in property viewings and a 49% rise in applicant registrations. Demand continues to outstrip the demand of properties coming onto the market.

Demand for property in Scotland stays strong

Benefits

Simon Brown, partner and head of residential sales at CKD Galbraith, noted: ‘Our figures mirror the last Registers of Scotland report and reflect the fact that sellers now reap the benefits of a twelve month market. Looking ahead over the next quarter we expect to see a number of changes to the Scottish property market.’[1]

‘As is typically the case in general election years, we anticipate that the uncertainty caused may well slow the property market down in the weeks leading up to 8th June. The market will, we believe, pick up again and continue growing once the dust has settled,’ Mr Brown added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/5/strong-demand-for-property-in-scotland

Almost 6,300 Rogue Landlord Complaints Filed in Three Years in the North East

Published On: May 8, 2017 at 10:07 am

Author: Em Morley

Categories: Landlord News

Tags: general election,private rental sector,rental properties,rogue landlords,tenants

Tenants in the North East of England filed almost 6,300 rogue landlord complaints between 2014-2016.

Almost 6,300 Rogue Landlord Complaints Filed in Three Years in the North East

A Freedom of Information request submitted to the Tyne and Wear authorities by local property campaigner Ajay Jagota shows that the five councils received a total of 6,297 complaints about the condition of their private rental properties or the behaviour of their landlord during the three-year period.

Some 2,075 complaints were received in 2016, which, although is up by 3.4% on the 2,007 recorded in 2014, is actually down on the 2,215 complaints received in 2015.

Jagota, the Founder of KIS sales and letting agent, says: “To put these figures into context, every day in every local authority in Tyne and Wear, at least one person complains about the condition of their rented home, yet only one rogue landlord has been convicted in three years.”

Separate research shows that just one council – Sunderland – has brought a successful prosecution against a rogue landlord in the corresponding period.

The highest number of rogue landlord complaints was received in Newcastle, where complaints rose steadily from 1,007 in 2014 to 1,127 in 2016 – an increase of 8%.

In contrast, Sunderland saw rogue landlord complaints drop from 509 in 2014 to 290 last year, while Gateshead and North Tyneside recorded declines from 2014 to 2015, but experienced growth again in 2016, leaving them 7% and 4% below 2014 levels respectively.

South Tyneside Council refused to supply the information, claiming that it would take an officer 18 hours to retrieve it, what the authority describes as “substantial effort and disproportionate exercise of trawling”. The decision has been appealed.

Jagota reacts: “As both a resident of and business owner in South Tyneside, I find their decision to refuse our request extraordinary. How can you admit that you hold some information, but at the same time claim you don’t know where it is?”

With the General Election campaign underway, all the main political parties are making a pitch to voters that rent, but Jagota fears that the proposed policies “are just tinkering around the edges when more profound reform is needed”.

He adds: “It’s critical for all good operators in the private rented sector that the rogues are brought to task, and the only way that can happen is that the local authority executes the powers invested in them and ensure they take action when complaints are made.”

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First Private Landlord in Scotland Granted Disqualification Order

Published On: May 8, 2017 at 9:24 am

Author: Em Morley

Categories: Landlord News

Tags: landlord law,lettings law,rogue landlords,Scotland

A court in Fife has granted the first disqualification order against a private landlord in Scotland.

First Private Landlord in Scotland Granted Disqualification Order

The man, understood to be Mohammed Murtaza, 47, from Kirkcaldy, was found guilty of breaching both the Antisocial Behaviour (Scotland) Act 2004 and the Housing (Scotland) Act 2006. Sheriff Gilchrist described the case as “a flagrant breach of legislation”.

The landlord was convicted at Kirkcaldy Sheriff Court for continuing as a landlord, even though his registration had been rejected by Fife Council in 2015, because he had six previous convictions for failing to comply with his private landlord duties under the Antisocial Behaviour (Scotland) Act 2004 and for being in breach of Gas Safety (Installation & Use) Regulations 1998.

John Mills, the Head of Housing at Fife Council, comments on the case: “A significant proportion of private landlords are of good character and comply with the law. However, there are some who act unlawfully.

“We work closely with our partner services, including Private Housing Standards, Safer Communities, Scottish Fire and Rescue Service and Police Scotland, to assist and support landlords to comply with the legislative requirements of being fit and proper landlords.”

He adds: “The outcome of this particular case sends a clear message to private landlords in Fife that the council will continue to take all appropriate action to protect tenants and improve property standards in the private sector.”

Landlords, we have put together some helpful guides to detail your legal obligations and explain how to comply with lettings law.

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We encourage all landlords to stick to the law and provide safe, secure homes for their tenants.

Property price growth remains stagnant

Published On: May 8, 2017 at 9:23 am

Author: Em Morley

Categories: Property News

Tags: Halifax,house prices,landlords,property prices

The most recent analysis released by the Halifax has indicated that property prices in the UK rose by 3.8% in the three months to April. This is unchanged from March, remaining the lowest annual rate since May 2013.

In addition, the report shows that house prices during the period were 0.2% down on the previous three months-the first quarterly fall since November 2012.

Stagnant

Martin Ellis, Housing Economist at the Halifax, observed: ‘House prices have stagnated over the past three months. Overall, prices in the three months to April were marginally lower than in the preceding three months; the first quarterly decline since November 2012. The annual rate of growth remained at 3.8% in April, the lowest rate since May 2013.’[1]

‘Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16. Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes. A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months,’ he continued.[1]

Adjustment

Russell Quirk, founder and CEO of eMoov.co.uk, noted: ‘Another slight decline in the rate of house price growth on a monthly basis would suggest that the UK market has begun to naturally adjust after a long period of sustained inflation.’[1]

‘We’ve seen an abundance of buyer demand and a lack of sufficient stock heat the market and it would seem that it is finally beginning to level out. This slow may also be due to a number of other influential factors such as the uncertain political landscape and, it will be interesting to see if the market bounces back over the coming months. That said, sellers are still seeing the price of their property increase annually and this slow in price growth will no doubt be welcomed by those on the other side of the fence, who are struggling to get on the ladder.’[1]

Property price growth remains stagnant

Encouragement

Jeremy Leaf, former residential chairman at RICS, acknowledged: ‘Low mortgage rates and a shortage of property haven’t been enough to support prices.’ However, he went on to say he is, ‘encouraged that the annual level is still above where it was this time last year, bearing in mind the huge increase in demand ahead of the introduction of the 3% stamp duty surcharge last April.’[1]

Concluding, Mr Leaf said: ‘Looking forward, we are finding the market to be relatively balanced between supply and demand and still expect those people who recognise current market conditions to take advantage. The market does seem to be finding a new, slightly lower, level and we are certainly seeing no signs of a more substantial fall.’[1]

[1] http://www.propertyreporter.co.uk/property/house-price-growth-stagnates-at-four-year-low.html