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Em Morley

Housing Supply Hits Six-Month High, Reports NAEA

Published On: September 26, 2016 at 10:09 am

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Housing supply has hit a six-month high, says the National Association of Estate Agents (NAEA) in its August Housing Market report.

Housing Supply Hits Six-Month High, Reports NAEA

Housing Supply Hits Six-Month High, Reports NAEA

Signalling that the property market is moving in the right direction, the NAEA found that the number of homes up for sale rose to an average of 41 per estate agent branch in August – the highest level recorded since March this year, when agents reported an average of 54 properties per branch.

The number of sales to first time buyers also rose in August, from 25% of all sales in July to 28%. Annually, this figure is up by eight percentage points, as just 20% of total sales went to first time buyers in August 2015.

The report also found that two in five (39%) estate agents expect demand to grow following last month’s interest rate cut by the Bank of England, while a quarter (25%) think that first time buyers will benefit from the reduction.

In August, the number of house hunters registered per NAEA member branch dropped slightly, to an average of 287, from 298 in the previous month.

Additionally, three quarters (76%) of properties sold per NAEA member branch were sold for less than the original asking price, down by three percentage points on July, when 79% of properties sold for less than the asking price.

The Managing Director of the NAEA, Mark Hayward, comments on the data: “Following a few months of uncertainty in the market, it’s more than encouraging to see things moving in the right direction. Although we have seen a slight drop in demand, the fact that supply has risen means more choice for those that are looking for a new home, and we can see the impact of that because the rise in sales to first time buyers was higher than we normally see in August.”

He adds: “News from the Treasury this month that Government deposits on the Lifetime ISA can be used towards the initial deposit to secure a property and the impact of interest rate cuts will also raise confidence in first time buyers that now is a good time to be looking to buy.”

The news regarding the Lifetime ISA arrived as an investigation revealed that Government bonuses given through the Help to Buy ISA scheme cannot be used as an initial deposit on a property purchase.

Buy-to-let lending remains sluggish

Published On: September 26, 2016 at 9:48 am

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Mortgage lending rose substantially during August, with gross lending reaching a nine-year high of £22.5bn. However, lending in the buy-to-let sector has remained subdued, according to the latest figures released by the Council of Mortgage Lenders.

This data suggests that, when seasonal factors have been taken into account, lending has been stable over the last few months. Despite this, the figures indicate that remortgaging activity is more prominent in the buy-to-let market.

Slowdown

Buy-to-let activity has seen something of a slowdown, following the introduction of the additional 3% stamp duty surcharge in April. In addition, some lenders are offering more stringent affordability criteria, with one eye on the tax relief changes scheduled for 2017.

Senior economist at the Council of Mortgage Lenders, Mohammed Jamei, said: ‘house purchase activity for buy-to-let continues to remain subdued, even as we move away from the stamp duty change and is firmly down compared to a year ago.’[1]

‘This looks set to continue going forward, given that lenders have been tightening affordability criteria in anticipation of the forthcoming interest tax relief changes in April 2017.’[1]

Buy-to-let lending remains sluggish

Buy-to-let lending remains sluggish

Cuts

A growing number of lenders are moving to cut buy-to-let mortgage rates in an attempt to generate more business from investors. Many lenders are demanding rental coverage of 145% from buy-to-let landlords, due to restrictions of mortgage interest tax relief landlords are able to claim from next year.

Mike Richards, director of London-based Mortgage Concepts Associates, noted: ‘lenders reducing rates is not going to help at all because the Government has crucified buy-to-let.’[1]

‘While an interest rate is one of the concerns, it is not the only concern. People have a finite amount of money for deposits and most people will have to pay 3% extra stamp duty while lenders are increasing their stress rates,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/buy-to-let-lending-remains-subdued

Tenant Campaigners Make False Allegations over Revenge Eviction Case

Published On: September 26, 2016 at 9:11 am

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Tenant campaigners have made false allegations over a revenge eviction case, according to a landlord in Bristol.

Last week, the Daily Mail reported on a case where a tenant had been served an eviction notice to move out of her home of 12 years for complaining to her landlord about damp and dirty carpets.

Tenant Campaigners Make False Allegations over Revenge Eviction Case

Tenant Campaigners Make False Allegations over Revenge Eviction Case

It highlighted an “amazing show of support” from the tenant’s neighbours, who linked arms to prevent bailiffs entering the property in Easton, Bristol.

However, the photographs show that the majority of these so-called neighbours were in fact tenant campaigners from the Acorn Community group, which is pushing for an ethical lettings charter.

The story in the Daily Mail claims: “Residents came out to express their disgust at the revenge eviction of Ms’ Abdullahi.”

One campaigner allegedly stated: “We don’t want people in our community treated like this. It’s a revenge eviction and people deserve decent rented accommodations.”

Another said: “This landlord, and all landlords, need to know there are people in this community who won’t ignore it.”

While another supposedly commented: “We live in this street and it’s a close community. It’s amazing how many people have turned out.”

Despite the tenant campaigners’ efforts, the tenant and her family were evicted. If this really was a revenge eviction, then why hasn’t the landlord been penalised?

The Bristol landlord that pointed out the case, explains: “The reason the eviction went ahead is that it wasn’t a retaliatory eviction at all; you can tell that by the pictures.

“The landlord even invited both parties to a meeting to resolve the situation, after trying to evict her for over two years. So it’s surprising he even tried to go above and beyond his duties by trying to explain the reasoning behind the eviction to Ms Abdullai and Acorn Bristol campaigners.”

The landlord insists: “He followed all the correct procedures; getting in a damp specialist and environmental health to inspect the property after he was notified of the issue. The reports stated that the issue was not damp, but condensation mould due to inadequate ventilation to the wall, something this tenant was given several reminders about over the last few years.

“Acorn and the tenant have also failed to mention that access to the property for the workmen to resolve the repairs/issues was denied for over eight weeks. Surely if the condition of the property was substandard, then why did she delay repairs being made for such a long period?”

They add: “Acorn is gathering momentum and the problem here is that their ethical lettings charter isn’t about ethics at all; it’s about lynching landlords at any cost. Clueless tenant groups like these shouldn’t be allowed to continue to make a mockery of existing private rental sector legislation.

“£3,000 worth of rent arrears and he still allowed her and her family to stay in the property for an extra six months. Honestly, it smacks of desperation from an anarchist campaign group who are obviously looking for any opportunity to gain publicity and awareness.”

Landlords, always remember to follow the correct eviction procedures and respond to any repair requests quickly.

Where is the best town for rental yields?

Published On: September 26, 2016 at 8:57 am

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The latest Buy-to-Let Index from LendInvest has revealed the top areas for rental yield growth over the year between August 2015 and July 2016.

Specifically, the Index focuses on postcode areas in England and Wales, looking where average yields have increased the most over the period.

Yearly yields

Blackburn came out on top spot, with average rental yields in the town rising from 4.13% to 5.69%- an increase of 37.8%. In addition, Blackburn is the cheapest area in the top ten regions for property buyers. Average house prices in the region currently stand at £95,000.

Carlisle came a close second, with rental yields spiralling by 36.5%. Gloucester came in third, with an increase of 19.4% in rental yields over the twelve months.

At the other end of the scale, Durham was found to be the worst region for rental yield growth. Here, returns have slipped by 34.2% in the year, from 7.09% to 4.67%. Durham was closely followed by Chester and Croydon.

Where is the best place for rental yields?

Where is the best place for rental yields?

Savvy

Christian Faes, Co-Founder and CEO of LendInvest, noted: ‘savvy property investors won’t only look out for which areas will offer the best returns right now, but are considering the best growth for the months and years to come. That means spotting areas which will become more popular in the future. That may be due to improved transport links, for example those towns which are due to be on the new HS2 line, or those which are due to benefit from new infrastructure projects, which will bring additional employment into the region.’[1]

[1] http://www.propertyreporter.co.uk/property/which-town-tops-the-list-of-buy-to-let-hotspots.html

 

 

Tenants Let Down by Local Authorities when Suffering with Rogue Landlords

Published On: September 26, 2016 at 8:31 am

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Tenants are being let down by local authorities when they suffer at the hands of rogue landlords, according to the Residential Landlords Association (RLA).

Tenants Let Down by Local Authorities when Suffering with Rogue Landlords

Tenants Let Down by Local Authorities when Suffering with Rogue Landlords

The landlord body spoke out after shocking new figures from housing charity Shelter revealed that around one million tenants have been the victims of rogue landlords in the past year.

The charity claimed that one in eight tenants have suffered issues with landlords that break the law. Some of the problems highlighted by the research include landlords entering properties without consent, deposits not being protected, tenants being abused or harassed, and discrimination on the grounds of race, nationality and gender.

The report also suggests that 64,000 tenants have had their utilities cut off by rogue landlords, while 50,000 have had their belongings thrown out or the locks changed on their properties.

Now, the RLA claims that local authorities are not using the powers available to them to tackle rogue landlords and protect tenants.

The Chief Executive of the RLA, Andrew Goodacre, says: “Figures from the English Housing Survey show that 82% of tenants are happy with their rented accommodation, but we recognise that there are landlords who do not abide by the law.

“The RLA is fully supportive of regulations that protect tenants, but the reality is that we can regulate all we like, but without proper enforcement, it becomes meaningless. Tenants are being let down by local authorities, who are failing to properly enforce the powers available to them to tackle the criminal minority of landlords.”

A helpline advisor at Shelter, Danielle Goodwin, speaks of her experiences: “Every day at Shelter, we speak to people at the end of their tether after a law-breaking landlord has caused chaos in their lives.

“These range from instances where the renter has been unaware of their rights, to cases where renters are exploited and subjected to terrible experiences by a minority of law-breaking landlords.”

We remind all landlords that they must stick to the law and protect their tenants at all times. Keep up to date with your responsibilities and any changes to the law at LandlordNews.co.uk.

UK housing market is stable following Brexit

Published On: September 23, 2016 at 2:36 pm

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Three months have passed since the historic result of the EU referendum. Despite this, economists are still trying to come to terms with the impact of Brexit.

However, for the housing market, it seems that the future is bright, according to Jackson-Stops & Staff.

Volumes

Analysis of the UK housing market by the national estate agency, based upon a sample of more than 500,000 properties for sale in Britain, reveals that the volume of homes has actually risen since the vote. On the other hand, the proportion subjected a contract has slipped by only 2.5%.

This slight decline in residential property sales has led to a 2% fall in the average asking prices across the UK. Prices have fallen from 297,508 in mid-June to £291,547 at present.

Nick Leeming, chairman at Jackson-Stops & Staff, commented: ‘three months after the UK’s historic vote to leave the EU, the property market remains alive and active.’[1]

‘There are more properties on the market today than one the day of the Brexit vote and there has only been a marginal decline in the number of properties under offer. House prices have also declined only moderately. The normal events-families growing, the desire to downsize, a new job, a change of lifestyle-the fundamental drivers for people buying and selling property, have remain unchanged.’[1]

UK housing market is stable following Brexit

UK housing market is stable following Brexit

Stamp Duty impact

However, while the overall housing market remains stable, further data from the report indicates that high stamp duty rates are having in impact. This is being felt particularly at the top end of the market, in particular for properties over £2m.

Mr Leeming continued by saying, ‘London has always been an island when it comes to the housing market and is governed by a range of forces that are not as strongly at play across the rest of the UK, such as significant international investment and high net worth buyers.’[1]

‘The fact that there is a freeze around the higher value properties in the capital is due to a number of factors, not just confidence levels following the Brexit vote, but also the impact of stamp duty at the very highest levels. We anticipate that the market will correct itself as we head into the final quarter of this year,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/9/uk-housing-market-remains-alive-and-active-three-months-after-eu-poll