Written By Em

Em Morley

One million tenants victims of rogue landlords in past year

Published On: September 23, 2016 at 10:20 am

Tags: Buy-to-Let,landlords,rogue landlords,Shelter,tenants

A shocking new report has revealed that more than one million tenants across England have been the victim of a rogue landlord during the past twelve months.

This means that roughly one in eight renters have encountered issues with landlords breaking the law, according to housing charity Shelter.

Issues

Shelter’s research came from a YouGov poll of 3,250 tenants and returned worrying results.

Issues highlighted included landlords entering homes without consent, deposits not being sufficiently protected, renters being abused or harassed and discrimination on grounds of race, nationality or gender.

Further details from the report suggest that 64,000 people have had their utilities cut off by rogue landlords. 50,000 are predicted to have had their belongings thrown out or the locks on their property changed.

One million tenants victims of rogue landlords in past year

Unacceptable

Richard Lambert, Chief Executive Officer at the National Landlords Association noted: ‘these figures highlight serious issues that are simply unacceptable but our research with tenants shows that 82% say they are happy with their current landlord. Furthermore, Shelter’s figures show the vast majority of landlords to be law abiding.’[1]

Danielle Goodwin, helpline advisor at Shelter, said: ‘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.’[1]

‘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.’[1]

More cause for concern came from the National Landlords Association’s quarterly poll of its members. Results of this poll show that three out of ten UK landlords has been verbally or physically abused by their tenants.

[1] http://www.itv.com/news/2016-09-23/one-million-renters-suffer-under-rogue-landlords/

Legal & General Invests Billions in East London Housing and Infrastructure

Published On: September 23, 2016 at 9:25 am

Author: Em Morley

Categories: Finance News

Tags: East London,infrastructure,investment,London,London landlords

Legal & General has backed investments of over £1 billion in east London housing and infrastructure in 2016 alone. The firm has already invested over £8 billion in UK infrastructure, housing and urban regeneration, and SME finance, and is on track to invest £15 billion.

Legal & General invests in infrastructure to secure long-term income for pensioners and returns for shareholders. Infrastructure investment boosts UK economic growth, which benefits businesses and wider society.

Legal & General Invests Billions in East London Housing and Infrastructure

In east London, Legal & General’s investments include:

Transport for London’s new £246m headquarters in Stratford
Build to rent flats in Walthamstow, in partnership with PGGM, creating over 400 homes
Forward funding of 445 rooms for Queen Mary University of London students in Stratford for £63m
DP World’s London Gateway port, with the Pension Protection Fund, for £400m
Amazon’s new fulfilment centre at Tilbury

The firm is committed to modernising Britain’s cities by investing in real assets, creating new jobs and, through collaborative partnerships, delivering local economic growth.

The Managing Director of Legal & General Retirement, Kerrigan Procter, says: “East London is a great place to invest. We have invested over £1 billion of long-term capital in new assets, and are looking at many more opportunities here and across the UK. Our direct investments are economically and socially useful, with every £1 invested in physical infrastructure generating around £3 of local economic activity.

“In a world where over $10 trillion of government bonds earn negative returns, our direct investments create local economic growth, income for pensioners and returns for shareholders. The UK needs new infrastructure if it’s going to grow and prosper in the 21^st century, and we are helping to fund and deliver it.”

The Transport for London building, at the International Quarter in Stratford, is part of the wider regeneration of the area, which is expected to create over 40,000 jobs and 11,000 new homes in the coming years.

The Walthamstow build to rent development is scheduled for completion in 2018, and is part of Legal & General’s partnership with PGGM, the Dutch pension fund manager, to invest £600m in build to rent homes and create a new institutional asset class.

The 26-storey student accommodation development is pre-let to Queen Mary University of London and is being built on the site of a former petrol station on Stratford High Street.

The DP World’s London Gateway port is the UK’s first new port in over two decades, and is situated on the Thames estuary at Stanford-le-Hope, Essex. Since the start of construction, London Gateway has already created thousands of jobs in London and the South East, and is helping London to regain its status as one of the world’s largest ports.

Amazon’s new fulfilment centre at Tilbury will create 1,500 jobs and be completed in 2017.

Landlords, take this great opportunity to invest in an up-and-coming area. East London is soon to be a hub of new homes, more jobs and improved infrastructure – all features that attract private renters to an area. Snap up an east London investment now!

If you need more encouragement, here’s why you should buy in east London: /why-landlords-should-buy-in-east-london/

Liverpool City Council proposes taxes for student landlords

Published On: September 23, 2016 at 9:04 am

Author: Em Morley

Categories: Landlord News

Tags: Liverpool,Liverpool City Council,student landlords,tax

Student landlords in Liverpool could soon be forced to pay business tax, under controversial new rules outlined by the City Council.

At present, student accommodation is currently exempt from business rates, with students not permitted to pay council tax.

Profits

However, Liverpool City Council feels that as student landlords are essentially ‘profit making businesses,’ they should be charged for the public services used by their tenants.

This motion was originally proposed by councilors Nick Small and Laura Robertson-Collins, with other local authority member unanimously backing the plan this week.

A Government grant that compensates the loss of council tax income from students is to be phased out, leaving the Council left to think of other ways to raise cash.

Concerns

Responding to the calls, the Residential Landlords Association has expressed its concerns over the plans. The firm fears that student landlords could be left with little alternative but to pass these higher costs onto their tenants, should they have to pay business rates.

Andrew Goodacre, Chief Executive of the Residential Landlords Association observed: ‘this sets a very dangerous precedent. Where one council goes others are sure to follow. Landlords will look to recoup this extra tax by increasing their rents and taxing them in this way will reduce the amount of money they have to spend on repairs and home improvements for their tenants.’[1]

‘This is yet another example of landlords being treated as little more than cash cows by those in power. I hope the Government will share our concerns and put a stop to this unfair tax on students who are already paying through the nose for their education,’ he continued.[1]

Liverpool City Council proposes taxes for student landlords

Opposition

Further opposition has come from the Liverpool Guild of Students, who have criticised the council for forwarding the proposals why students were still on their summer break.

A spokesperson told the Liverpool Echo: ‘The motion has been tabled at a time when there are no students in the city to dispute the proposals, suggesting there is an attempt to do this behind closed doors.’[1]

‘While the motion implies the extra charges will be picked up by landlords, we believe they will ultimately be passed onto the students in the form of a rent increase-and at a time when maintenance grants have been cut and fees and the cost of living is going up. It is the poorest students who will suffer as a result. This may also lead to landlords reducing their repairs budget to make up the shortfall, which could then lead to poorer student accommodation.’[1]

The council is now to establish a working group with university, student and landlord representatives in order to look at the plans.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/council-proposes-to-tax-student-landlords

The Most Expensive University Cities in the World by Property Price

Published On: September 23, 2016 at 8:36 am

Author: Em Morley

Categories: Property News

Tags: London,property price,students,university cities

Oxford may have knocked the California Institute of Technology off the top spot in the latest world university rankings, but where are the most expensive university cities in the world by property price?

The Most Expensive University Cities in the World by Property Price

Online estate agent eMoov.co.uk has reshuffled the top 100 list to find out which university cities are home to the most expensive property prices. It has taken the average property price per square metre across all 100 universities, finding that buying a home in a city boasting one of the world’s most prestigious universities will set you back around £5,245 per square metre. In the UK, the average price rises to £7,496.

Although it has traditionally fuelled the UK property market, London is not top of the list for property prices.

Hong Kong is home to the most expensive property price in the top 100 university rankings, at an average of £17,646 per square metre. Its top universities include the University of Hong Kong, Hong Kong University of Science and Technology and the Chinese University of Hong Kong.

At £16,331, London is the second most expensive city in the top 100, with Imperial College London, University College London, the London School of Economics and Political Science and King’s College London all making the list.

The University of Tokyo is the eighth most expensive, at £14,221 per square metre, with the National University of Singapore and Nanyang Technological University, also in Singapore, competing the top ten, at £13,664.

Of the other UK universities in the list, Oxford was 39^th (£4,410), Cambridge was 45^th (£4,061), Bristol was 56^th (£3,502), Warwick 62^nd (£3,000), Edinburgh 63^rd (£2,879), Manchester 71^st (£2,467), Durham 75^th (£2,300) and Glasgow 78^th (£1,995).

The ten cheapest university cities to buy a property included in the top 100 is dominated by the United States of America, with the University of Illinois at Urbana-Champaign coming in at just £783 per square metre.

The founder and CEO of eMoov, Russell Quirk, says: “The latest results are certainly testament to the quality of higher education available in the United Kingdom, with more than 10% of the entrants located here and for that, we should count ourselves very lucky. That said, the escalating cost of fees when attending university has seen it slip out of reach for many, and even the cheapest on the list, Durham, would cost well over £1,000 per square metre to purchase a property in the area.

“One silver lining that this research does highlight, however, is that at least London isn’t the most expensive where the average property price is concerned.”

Landlords, do you invest in student property? Perhaps you can use this list to find your next UK or overseas investment – it’s probably best to avoid Hong Kong!

Mortgage product availability up by 86% in two years

Published On: September 22, 2016 at 1:35 pm

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,Buy-to-Let,mortgage,mortgage advisors

An new report has shown that during the last two years, there has been a 86% increase in the number of products available to British mortgage advisers.

The survey from Mortgage Brain indicates that a total of 7,481 mainstream lender products are listed on their sourcing systems. This is a rise of 4,031 in September 2014 and up by 49% on the 5,019 recorded at the same time in 2015.

Rises

Buy-to-let mortgage products have seen the greatest rises in availability, with 637 new products emerging in the last year. This total is now 1,853, showing a 52% rise since September 2015.

High loan-to-value products also saw a substantial rise during the last year. Data from the report indicates that there has been a 47% increase in the last twelve months for mortgages up to 90%.

A total of 296 90% LTV products are now on the market for advisors, up from 201 recorded in September 2015.

Mortgages with an LTV of up to 80% also saw a significant increase, with 510 new products coming onto the market in the last year. In all, there are 1,641 products available, showing a 45% increase from the 1,131 available last September.

Mortgage product availability up by 86% in two years

Competition

Mark Lofthouse, CEO of Mortgage Brain, noted: ‘the increase in competition, more buy-to-let lenders returning to the market and an influx of higher LTV products, has clearly had a big impact on the growth of product numbers and availability.’[1]

‘There are over 3,400 more products available now compared to two years ago and this growth in product numbers means that matching a client’s needs to the best products available is more important than ever. The latest Mortgage Brain sourcing systems have over 200 product criteria, which is invaluable to brokers in helping them to best match the needs of their clients to the products available,’ he added.[2]

[1] http://www.propertyreporter.co.uk/finance/number-of-mortgage-products-leaps-86-in-two-years.html

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

Published On: September 22, 2016 at 10:31 am

Author: Em Morley

Categories: Property News

Tags: house price growth,house prices,Port Talbot,Wales

House prices in the Welsh town of Port Talbot have bounced back, despite uncertainty surrounding the fate of the Tata steel works, which employs around 10% of the population.

Online estate agent eMoov.co.uk has found that the average house price in Wales is now £146,272, and is on the up.

House Prices in Port Talbot Bounce Back Despite Steel Works Uncertainty

Nationally, prices are up by 2% over the past month and 5% annually.

Merthydr Tydfil has experienced the greatest annual increase, of 12%, while Gwynedd saw prices drop by 6% over the same period.

In the past month, the Isle of Anglesey saw the largest decrease in prices, of 2%, on the previous month. But it is Port Talbot that has experienced a shocking turnaround, with prices rising by 9% over the last year – the same growth rate as England as a whole and 5% higher than Wales.

On a monthly basis, house prices in Wales have experienced a marginal decline, while England saw a slight increase of 2% over the same timeframe. Port Talbot, however, has enjoyed a 7% rise on the month.

Tata’s Port Talbot site is one of the largest steel works in the world. It has been at the centre of controversy surrounding its sale and closure, which could result in the loss of thousands of jobs in the community.

Although the future of the steel works still remains unclear, Port Talbot’s increase in house prices over the last year is an encouraging sign for the local community. Discussions are also continuing about a pan-European merger with Tata’s closest competitor, ThyssenKrupp, although no concrete details have been released.

The outcome for Port Talbot might still be in limbo, but if the controversy with the steel works is resolved, the community will experience a newfound stability in the area’s property market. However, if the stalemate continues, homeowners will at least be able to find comfort in experiencing the greatest house price growth of the whole of Wales.

Russell Quirk, the founder and CEO of eMoov, says: “Port Talbot enjoying the biggest monthly increase in property values across Wales is great news for homeowners in the area, after the uncertainty that has plagued the market due to Tata closing the steel works in the area.

“When the local economy relies so heavily on one particular trade or output to survive, it can be disastrous for the local property market when this trade declines drastically or, in this case, disappears altogether. Although the future of Tata steel works is not yet decided for certain, homeowners in Port Talbot have a small silver lining around the dark cloud that has been hanging above them for quite some time.”