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Em Morley

Cost of Moving House Totals £2,000 in London

Published On: August 2, 2016 at 9:21 am

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The cost of moving house in the private rental sector totals around £2,000 in London, according to flat and house share website SpareRoom.co.uk.

Cost of Moving House Totals £2,000 in London

Cost of Moving House Totals £2,000 in London

The site reports that the most expensive part of moving house is the large deposits required by many landlords at the start of a new tenancy. This initial expenditure, which usually includes a deposit and the first month’s rent, is usually required alongside letting agent fees and the cost of a removal company or van.

The cost of moving for tenants in London comes in above the national average, at £2,043, while the rest of the UK tends to spend £1,175 on moving house.

However, property inspection firm Imfuna Let notes that one way that landlords, tenants and homebuyers can increase the efficiency of moving house, as well as protecting their valuable assets, is to compile a professional inventory that details the condition of the property and all items within it.

Imfuna Let’s reports are generated on either smartphone or tablet, using photographs and voice notes to detail the state of the property.

Over in the USA, in-state moves are slightly less expensive than the UK, at $1,170. However, moving from one state to another will cost you around $5,630, according to the American Moving and Storage Association.

The Director of SpareRoom, Matt Hutchinson, comments: “With renters having to find a new deposit before they get their old one back, many simply can’t afford to move. That can mean missing out on employment opportunities or having to put up with rent increases.”

Having a thorough inventory at check-in and check-out will not only help landlords ensure that their property is looked after by tenants, but will help tenants get their deposit back faster when they move out.

Always put a report together before new tenants move in, and compare the state of the property when they move out to the initial inventory. Through highlighting any differences from check-in to check-out, you can easily deduct any necessary costs from your tenant’s deposit, meaning that they get their money back as soon as possible.

To help keep tenants’ costs of moving down and to ensure that your property remains in a good condition, remember to compile a detailed inventory.

Housing Crisis Not Confined to London, Warns New Report

Published On: August 2, 2016 at 8:41 am

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Plummeting homeownership levels across the north of England show that the housing crisis is not confined to London, warns a new report from the Resolution Foundation.

The study found that homeownership in England has dropped to levels last seen in 1986, with Greater Manchester, South and West Yorkshire and the West Midlands metropolitan area all experiencing double-digit falls since the early 2000s peak.

The analysis shows that after reaching a high of 71% in 2003, the proportion of people owning their own home in England has declined steadily over the past decade, by eight percentage points. The Resolution Foundation believes that the increase in homeownership recorded in 2014 was likely a blip to correct the sharp fall seen the year before, rather than a welcome reversal of a long-standing trend.

The new report also warns that while many reports on the housing crisis focus on London, Greater Manchester has actually recorded the greatest decrease in homeownership of any major city in the past decade.

Housing Crisis Not Confined to London, Warns New Report

Housing Crisis Not Confined to London, Warns New Report

In 2003, 72% of households in Greater Manchester owned their own home – slightly higher than the average in England as a whole. However, homeownership in the area has since plummeted by 14 percentage points – almost twice as fast as England as a whole – meaning that last year, just 58% of those living in Manchester were homeowners.

The Resolution Foundation notes that people living in Greater Manchester are no more likely to own a home than those living in outer London, and that homeownership levels have dropped below all other large northern city areas, except Tyne & Wear.

However, the report also warns that plunging homeownership is not confined to Greater Manchester either. It reports that outer London, South and West Yorkshire and the West Midlands have also seen double-digit declines in homeownership since the early 2000s.

This drop in homeownership has corresponded with a near doubling in the number of private tenants in England, which has risen from 11% of all households in 2003 to 19% in 2015.

The proportion of households renting privately in Greater Manchester has more than trebled over the same period – from 6% to 20% – while outer London and West Yorkshire have also reported double-digit growth.

The report insists that the shift from homeownership to private renting, which is occurring throughout England, particularly among young people, is concerning for many reasons.

It highlights that private tenants spend a far higher proportion of their income on housing than those who own a home with a mortgage – 30% compared to 23% – which explains why the share of income that households spend on housing in the UK has risen by around a quarter since 2003, and by around a third in the North West.

Private tenants are also more likely to face the greater insecurity associated with short-term contracts, while the struggle to purchase a home makes it harder for people to accumulate the wealth that they may rely on in later life.

In fact, almost half of over-45s consider their property wealth as key to their retirement income plans.

The Resolution Foundation analysis follows the English Housing Survey, released last week, which found that two-thirds of private and social tenants named affordability as a barrier to homeownership. It found that less than one in ten private renters did not expect to buy a home because they liked it where they were, while just 1% preferred the flexibility of renting.

The Policy Analyst at the Resolution Foundation, Stephen Clarke, comments on the report: “London has a well-known and fully blown housing crisis, but the struggle to buy a home is just as big a problem in cities across the north of England.

“The chances of owning a home have fallen fastest in Greater Manchester over the last decade, though the Leeds and Sheffield city areas have also experienced sharp drops.

“These drops are more than a simple source of frustration for the millions of people who aspire to own their home. The shift to renting privately can reduce current living standards and future wealth, with implications for individuals and the state.”

He insists: “We cannot allow other cities to edge towards the kind of housing crisis that London has been saddled with. It’s encouraging that the new Prime Minister has talked about tackling the housing deficit. She may find that making good on this promise could secure as important a legacy as negotiating a successful exit from the European Union.”

Landlords, remember that many households across the country are forced to live in the private rental sector. Wherever you own rental properties, remember to stick to the law and ensure that they are safe, suitable and secure for your tenants.

Landlords to Take North Somerset Council to Judicial Review

Published On: August 1, 2016 at 11:32 am

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Landlords in Weston-super-Mare have joined together to take North Somerset Council to judicial review over its proposed selective licensing scheme.

Just under two weeks ago, we reported that landlords in Somerset have joined together to create the Somerset Property Network in a bid to campaign against the new licensing scheme.

Last week, after just a month of campaigning, the Somerset Property Network held its first meeting for local landlords who will be affected by the Weston-super-Mare selective licensing scheme. The group concluded that the next step is to take North Somerset Council to judicial review.

Landlords to Take North Somerset Council to Judicial Review

Landlords to Take North Somerset Council to Judicial Review

Around 80 buy-to-let landlords attended the event to discuss their collective belief that the process of the council’s initial licensing consultation was careless and unnecessary.

Christian Louka and Robert Carter, of Mydeposits, also attended the event to help landlords with protecting tenancy deposits and dealing with deposit disputes.

The majority of landlords in attendance were from the Central and Hillside wards of Weston-super-Mare, which are directly affected by the proposed scheme. These 51 landlords represented 187 properties in the selective licensing area.

Additionally, 29 North Somerset landlords, who are not in the selective licensing area, came out to support those that will be affected and express their concern over how the council has handled the private rental sector over the last 39 years.

In total, the landlord attendees represented over 700 North Somerset private rental properties.

Independent North Somerset Councillor Derek Mead, also a landlord, pledged his support at the event to get the scheme overturned. One member even flied in from Germany to attend.

Worryingly, however, 25% of the landlords in the selective licensing area had no idea about this scheme being implemented, which is due in November, until the Somerset Property Network campaign was launched.

One of the event’s organisers, Paul Routledge, who owns 44 self-contained flats within the selective licensing area, has spent over £600,000 in refurbishments over the last five years and has even been used by North Somerset Council to show other councils how areas can be improved by good landlords. However, he will soon be forced to pay £14,080 in licensing fees.

He said: “It’s important to understand that our group’s objective is not to fight North Somerset Council, but to work with them to create a better private rented sector for all parties involved.

“For instance, all of my tenants have signed a petition to say they do not need to be selectively licensed and that they are comfortable with their homes. They do not want their rents raised, as suggested by Mr. Mark Hughes, and we do not believe that selective licensing will do the job and that it’ll simply drive a wedge between landlords and their tenants.”

He added: “It’s a shame that North Somerset Council refused our invitation to attend and answer important questions that landlords have about the selective licensing scheme. I think they could have learned a thing or two about constructive debate and the value of listening to the very people who are going to be affected by this scheme.”

New Housing Minister to Support Renters Looking for Longer Tenancies

Published On: August 1, 2016 at 10:56 am

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The new Housing Minister, Gavin Barwell, has spoken out in support of renters who require longer tenancies.

New Housing Minister to Support Renters Looking for Longer Tenancies

New Housing Minister to Support Renters Looking for Longer Tenancies

Responding to a question from the Conservative MP for Solihull, Julian Knight, in a Department for Communities and Local Government debate last week, Barwell said that he is taking steps to ensure that those looking for longer tenancies can get them.

“My department has developed a model tenancy agreement for use by landlords and tenants in the private rented sector, which encourages longer-term tenancies for those who want them,” he explained. “We are working with the sector to actively promote the use of this and to identify any barriers.”

He continued: “We have also established a working group, focussed on affordability and security in the private rented sector, which will look at what more we can do to help people who require longer tenancies to get them.”

During the session, Baroness Hayter of Kentish Town also addressed the issue of redress schemes for landlords of leasehold properties.

She asked the department whether it plans to extend the requirements of the Consumers, Estate Agents and Redress Act 2007 and the Enterprise and Regulatory Reform Act 2013 to require landlords of leasehold properties to belong to a redress scheme.

Lord Bourne of Aberystwyth responded: “The Government is not persuaded that more burdensome approaches to regulate landlords would be effective. Leaseholders in dispute with their landlord can apply to the First-tier Tribunal (Property Chamber) in England and the Leasehold Valuation Tribunal in Wales to seek redress.

“The Government is extending leaseholders’ access to redress by including provisions in the Housing and Planning Act 2016 that will address an irregularity concerning the inability of courts and tribunals to restrict recovery of a landlord’s legal costs from leaseholders as administrative charges, where they consider a restriction on recovery to be just and equitable. The Government plans to introduce related secondary legislation by summer 2017.”

Do you believe that the Government should be working towards longer tenancies for renters? In addition, should landlords of leasehold properties be required to join a redress scheme?

Tenancy Deposits: What to do if Your Tenant Abandons Your Property

Published On: August 1, 2016 at 9:53 am

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Recently, a landlord and member of Landlord News got in touch with us about an issue he is having regarding tenancy deposits. We helped him, and others, work out what to do if your tenant abandons your property.

Paul wrote to us about a tenancy deposit issue – His two tenants had rented his apartment between June 2015 and July this year. They both paid a deposit, which was held by the agent he used to manage his property.

Tenancy Deposits: What to do if Your Tenant Abandons Your Property

Tenancy Deposits: What to do if Your Tenant Abandons Your Property

Following the check-out procedure, the agent reported to Paul that the apartment had been abandoned and was not fit to be let out again until it was cleaned and repaired.

Paul arranged for the property to be professional cleaned, which he paid for. His property is now let out again. However, he has submitted the invoice for the cleaning and repair work to his agent, and has been advised that it could take three months for him to receive recompense from the tenancy deposits.

Is this correct?

We asked tenancy deposit expert and the Director of Customer Relations at the Tenancy Deposit Scheme (TDS), Ben Beadle, to explain a landlord’s rights in this circumstance.

“In the case where a tenant is non-contactable and the deposit is registered with an insurance-backed scheme (i.e. the agent or landlord does not have the means to contact the tenants), the scheme is unable to adjudicate.

“It is an option for TDS members to follow our absconded tenant procedure, which members can choose to adopt if they wish, and involves them making their own assessment of the claim and distributing it on their finding. Members will normally require the landlord to reimburse the funds if the tenant later returns to dispute it. Although Alternative Dispute Resolution (ADR) timelines in the insurance-backed scheme are three months from the tenancy ending, a tenant in theory could return at a later date and the landlord should bear this in mind. The landlord will need to discuss this protocol with the agent. The agent is perfectly within their rights to await confirmation from the tenant or a court order, but hopefully a pragmatic solution can be reached, particularly if it is generally accepted that the tenant is unlikely to return.”

He adds: “The same is true if the deposit is held in a custodial scheme. Where one of the parties is not responding to a repayment request, there is something called the single claims process. This allows the party that is engaging to provide a statutory declaration to the scheme administrator to release the funds.”

Landlords, if you require any advice on tenancy deposits or other issues, do not hesitate to get in touch at hello@34.207.192.121.

New Home Approvals in London Recovered Pre-Brexit

Published On: August 1, 2016 at 9:00 am

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Ahead of June’s Brexit vote, new home approvals in London recovered from a former drop, reaching 6,310 in the second quarter (Q2) of the year. However, the latest London New Homes Monitor from Stirling Ackroyd claims that this progress could be short-lived.

Out of a possible 8,280 news homes that could have been approved in Q2, 6,310 – or 76% – were granted permission. This marks a 46% quarter-on-quarter improvement on Q1, which saw 4,300 new home approvals in the capital.

Westminster proved the most proactive London borough for new home approvals, with 1,720 given permission. Overall, the inner borough authorised 99% of all new home applications it received.

The Managing Director of Stirling Ackroyd, Andrew Bridges, says: “London has had a tough time lately, as Brexit injected a dose of uncertainty into the property market. In spite of this, the number of new home approvals improved in the run-up to the result. There may still be an impact to come, but for now, this pick-up is a sign that London’s property market is resilient. It’s a new game of unknowns – and London could emerge a winner.

“Westminster is soaring ahead in terms of approvals and applications, but these are unlikely to be affordable for the typical Londoner. Many in the capital are left feeling let down as affordability drives them further away from a home of their own.

“A new Housing Minister means new rules though, and London could be set for a shake up. The revival of a Minister for London could bring some reassurance to developers and buyers, who are hoping for a pro-building Government under Theresa May. Realistically, however, it’s more likely to be business as usual.”

New Home Approvals in London Recovered Pre-Brexit

New Home Approvals in London Recovered Pre-Brexit

Despite a pick up in approvals in Q2, the quarterly improvement trails behind the levels recorded in Q2 last year.

Q2 2015 saw 8,063 new home approvals, out of a possible 10,662. Annually, the rate has dropped by 22%.

Bridges continues: “We keep on hearing negativity when it comes to housing in London; not enough space, not enough money, too much Nimbyism. In fact, there’s plenty of room and sufficient progress isn’t being made on a yearly basis. Our research suggests space for up to 570,000 across the next ten years. Sadiq Khan may be keen to protect greenbelt sites, but good development is possible there too, and we need to think the politically unthinkable to solve the housing crisis.

“There’s a clear and difficult road ahead to solve London’s housing deficit. A big challenge is how to ensure the Government’s promise of one million new homes and Sadiq Khan’s promises of over 50,000 in London are delivered now Brexit is a reality. A more efficient planning system is the place to start. Crucially, planning reforms are still on the Government agenda for now – and they need to stay there.

“Overall, more resources and time need to be committed to achieve the number of new homes London needs. Having a new home can transform lives and London has always been an aspirational city.”

The London Borough of Newham rejected a huge 92% of possible new homes in Q2, recording the lowest Greater London approval rate, and meaning that just nine new homes were approved over a three-month period.

Comparatively, the London approval average was 76% in Q2, with just 13 out of 33 boroughs surpassing this level. However, this is an improvement on Q1, when the average approval rate stood at 61%.

Behind Newham, Bromley approved just 23% of all new home applications, while Islington approved a surprisingly low 36% of potential new homes.

However, Merton’s planning department approved 88% of new home applications, and the east of London saw a boost to its new build developments, with Tower Hamlets approving 87% of new home applications, alongside Havering.

Bridges concludes: “The east of London appears the most reliable area when it comes to tackling London’s housing crisis. Planning is more lenient, there’s less resistance to new developments, and the area keeps growing in vibrancy and significance to the London economy. East London’s impressive tech sector is just a starting point, and success will continue to ripple around the surrounding locales. More and more, people are wanting to live in Shoreditch, Dalston and Hackney Wick, and this enthusiasm is driving developers to the area.

“It’s great to see overall progress, but certain boroughs are slowing things down – Newham has seen a rigid approach to planning in Q2, which will need to be reversed if a consistent approach is to be enacted across London.

“Again, the ugly inner/outer divide has reared its head, with outer London remaining defiant against new homes and new developments. Unfortunately for London, consistency is key to solving the planning equation. If planning departments are to embrace a new strategy, some tough love from central Government might be needed. And Gavin Barwell may be the man to do it – only time will tell.”

Landlords, with new developments cropping up consistently, east London may just be the right spot for you to invest in. Here’s why you should buy further east: /why-landlords-should-buy-in-east-london/