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Em Morley

Technology to check tenants’ social media profiles

Published On: May 26, 2016 at 8:58 am

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Cutting-edge technology could be about to greatly assist letting agents and landlords throughout the buy-to-let process.

Tenant Assured utilises automated social profiling technology that assesses tenants’ social media accounts to surmise personality traits. This will allow landlords and agents to chose tenants and check up on their behaviour during tenancies.

Suitable tenants

Before the technology can be used, the tenant must give their consent on which social media profiles can be accessed. Tenant Assured hopes that this profiling can go hand-in-hand with traditional checks conducted before a tenancy agreement, such as referencing and credit checks.

Should a tenant agree to the profiling check, Tenant Assured aims to give an insight into five key personality traits that could affect the potential relationship:

  • extraversion
  • neuroticism
  • openness
  • agreeableness
  • conscientiousness
Technology to check tenants' social media profiles

Technology to check tenants’ social media profiles

Checking patterns

In addition, the profiling system gives information which could be of interest to agents and landlords throughout the tenancy.

Checking tenants’ social media accounts will pick up on their travel patterns and assess if they are spending substantial amounts of time away from the property. It will also pick up factors like a change of job or relationship status, which could affect their rental future.

Ben Stubbs, managing director of Score Assured, parent company of Tenant Assured, said, ‘we can help landlords determine the potential problem tenants and help the good ones secure the property they really want.’[1]

‘The insights we are able to collect with the consent of the tenant will protect landlords from costs involved in collecting rent arrears, evictions or repairing damage to their property. Currently, landlords rely on third parties to pull together traditional checks. Our product can add another layer of security to this by helping landlords get to know their prospective tenants so much better,’ Stubbs added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/digital-dna-to-help-agents-and-landlords-check-up-on-tenants

 

Less Than Half of Property in London is Priced at the Average Value or Below

Published On: May 26, 2016 at 8:39 am

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Less Than Half of Property in London is Priced at the Average Value or Below

Less Than Half of Property in London is Priced at the Average Value or Below

Less than half of all property in London is priced at the average value or below, according to the latest research into the capital’s housing market by online estate agent eMoov.co.uk.

The average house price in London now exceeds £500,000, making living in the capital as unaffordable as ever for a typical homebuyer.

eMoov has analysed the current total housing stock level for each London borough, comparing this to the amount of stock listed for £550,000 or less. The agent then calculated this as a percentage of total stock.

The study found that in total, less than half (46%) of housing stock in the capital is for sale at the average London property price or less.

The six worst areas where affordability is concerned are within prime central London. Just 6% of the properties for sale in Kensington and Chelsea are below £550,000, followed by 7% in Westminster, 14% in Hammersmith & Fulham, 14% in Camden, 22% in Wandsworth and 25% in Islington.

In a further 13 of the capital’s boroughs, just 50% or less of their housing stock is listed for the average price or lower.

Offering hope for the average buyer are the following boroughs: Barking and Dagenham, where 97% of its housing stock is £550,000 or less; Bexley at 91%; Havering at 84%; Sutton at 79%; Croydon at 79%; Newham at 78%; Greenwich at 72%; Redbridge at 72%; Lewisham at 66%; Hillingdon at 65%; Enfield at 65%; Waltham Forest at 64%; Bromley at 61%; and Hounslow at 57%.

Amount of stock currently listed for the average price or less

[table id=12 /]

The founder and CEO of eMoov, Russell Quirk, comments: “It’s no surprise to anyone that the majority of London is unobtainable to many from a property point of view. However, this research highlights just how out of reach the capital actually is for UK homebuyers, even for those with the sizeable budget of £550,000.

“When you talk about the average cost of buying in the capital being over half a million pounds, the mind really does boggle. Regardless, for many, the average house price is a benchmark, a milestone, on just what they need to have in the bank to live in a certain area. But this average price masks the true cost of living in the capital or even where in the capital you can live for that matter.”

He adds: “When you consider that even with that sort of healthy budget, you would have to restrict your property search by removing more than half of the properties currently for sale in the capital, it really highlights how little £550,000 can get you in the London market.”

London Property Market Still Going Strong as Homebuyers Continue to Borrow

Published On: May 25, 2016 at 10:59 am

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The London property market is still going strong, as homebuyers continue to borrow in order to fund their purchases, according to the latest mortgage lending data from the Council of Mortgage Lenders (CML).

In the first quarter (Q1) of 2016, homebuyers in the capital borrowed £7.1 billion for house purchase, up by 6% over the quarter and 41% annually. This equated to 21,400 loans, which was down by 2% on the previous quarter, but up by 20% compared to Q1 2015.

First time buyer borrowing was down over the quarter, by 7%, but up by 19% when compared to Q1 last year. This type of buyer borrowed £2.9 billion in the form of 10,700 loans – down by 10% quarter-on-quarter, but up by 3% on the year.

London Property Market Still Going Strong as Homebuyers Continue to Borrow

London Property Market Still Going Strong as Homebuyers Continue to Borrow

Those moving home borrowed £4.2 billion in Q1 2016, up by 18% on a quarterly basis and 63% compared to last year. Some 10,600 loans were approved for home movers, up by 8% on the previous quarter and 43% on last year.

Remortgaging activity totalled £4 billion over the same period, up by 4% on Q4 2015 and 36% on the previous year. This totalled 13,500 loans – up by 2% quarter-on-quarter and 21% compared with Q1 2015.

The Director General of the CML, Paul Smee, says: “The usual seasonal dip in lending in the first quarter of the year didn’t seem to impact London as strongly as the UK overall, mainly due to a strong uptick in home mover activity. Remortgage lending also performed well, resulting in the highest first quarter remortgage levels in the capital since 2009.

“The housing market in Greater London has some unique characteristics compared to the rest of the UK – more first time buyers, but lower overall levels of homeownership. Affordability and the supply of housing remain critical factors for the London market, and we will be pleased to work with the new mayor and his deputy on how to deliver appropriate strategy over his term of office.”

Estate agent Marsh & Parsons has also recorded growth in the London property market.

In Q1, the firm saw buyer demand increase by 9% annually in prime London, and by 19% in the outer prime belt.

The number of registered buyers for every available property for sale has risen to 14 in Q1, up from 13 buyers in the previous quarter and 12 in the same period last year.

The CEO of Marsh & Parsons, David Brown, comments: “Mortgage lending in London got off to a lively start this year, jumping leaps and bounds ahead of 2015 levels across all sectors. And it’s encouraging to see home movers at the forefront of the pack – at a time when the supply of new housing is dragging its heels, it’s vital that existing homeowners are taking opportunities to sell up and move up the property ladder, freeing up properties at the lower end of the market.

“It’s also a great vote of confidence in the capital. People sell their homes when they recognise strong house price growth and the favourable returns to be made, plus the belief that they’ll be able to find a buyer easily. In London, all these elements are firmly in place. We saw buyer demand increase 9% year-on-year in Q1, with an average of 14 buyers competing for every available property on the market. It’s important in the long-term that first time buyers in London remain similarly assured of the affordability and possibility of climbing onto the ladder.”

Landlords seeing more dirty properties at checkout

Published On: May 25, 2016 at 10:45 am

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A concerning new report has revealed that buy-to-let landlords are facing increasing problems with dirty properties at the conclusion of tenancy agreements.

The investigation, conducted by online letting agent PropertyLetByUs, has uncovered the items most frequently left in a poor condition by outgoing tenants.

Dirty properties

Mucky ovens were discovered to be extremely common, with 56% of agents reporting that they had faced this issue. Next came dirty carpets and flooring (25%), grimy showers (21%), smelly sinks (19%), full fridges and freezers (18%) and grubby baths (14%).

Shockingly, 70% of landlords said that their rental properties were returned to them in a poor condition after their tenants had moved out.

Over half of cases dealt with by the Tenancy Deposit Scheme are associated with cleaning. In fact, disputes over cleaning are now at their greatest level since the beginning of the scheme. This in turn means many investors are claiming more on their landlord insurance.

Lack of respect

PropertyLetByUs.com suggests that tenants have little or no respect for their rental home.

Jane Morris, the firm’s managing director, said: ‘unfortunately tenants fail to treat a rented property like they would if it was their own home. Many tenants fail to leave their property in the same condition as when they moved into the property and we have seen many properties left in a filthy state.’[1]

‘The main problems are dirty ovens and fridges; stains and marks on carpeting and flooring; bathrooms which have not been cleaned for months; and pet hair and excrement on floors, furniture and soft furnishings. At a recent check out, the property was left in a very poor condition. No cleaning had taken place during the tenancy and the ovens, carpets and the bathrooms were filthy. Unwanted furniture was the left in the house and strewn across the garden,’ she continued.[1]

Landlords seeing more dirty properties at checkout

Landlords seeing more dirty properties at checkout

Costly

Morris went on to claim that, ‘some tenants claim that cleaning issues are just normal wear and tear and are shocked when they find out that it will cost around £50-£70 to have the oven professionally cleaned and anything between £100-£150 to clean carpets and floorcoverings. The simple answer is that if an area or item was clean at check-in it should be left clean at check-out. If any dust or crumbs are present then this is clearly not clean.’[1]

‘It’s vital that landlords carry out mid-term inspections so they can flag up any cleaning issues, as well as a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement. At the check-out, the tenants should be made aware of the areas requiring cleaning and the potential costs involved,’ Morris concluded.[1]

Importance of inventories

The rise in landlords being left with dirty properties come check-out time underlines the importance of inventories. Landlords must produce a detailed inventory at the beginning of all new tenancy agreements, with photographs of all rooms in the house.

This will not only let landlords cross-examine during regular inspections, but will also be imperative should any dispute occur. Buy-to-let landlords should ensure that their tenants are given a copy of an inventory, which they have signed, before entering into an agreement.

[1] http://www.propertyreporter.co.uk/landlords/landlords-face-big-clean-up-at-check-out.html

Stamp Duty Surcharge Boosts Revenue for Government

Published On: May 25, 2016 at 9:20 am

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The 3% Stamp Duty surcharge for buy-to-let landlords and second homebuyers has boosted revenue for the Government, according to new data from HM Revenue & Customs (HMRC).

Due to the 1st April deadline, the highest ever Stamp Duty revenue for a single month was recorded last month.

Stamp Duty Surcharge Boosts Revenue for Government

Stamp Duty Surcharge Boosts Revenue for Government

The figures show that the Government generated almost £1.2 billion of Stamp Duty in April from a total of 173,430 property transactions in March, largely fuelled by high activity in the buy-to-let sector.

Nimesh Shah, a partner at London-based chartered accountants Blick Rothenberg, says it was “inevitable” that April would be an exceptional month for Stamp Duty revenue, as buy-to-let landlords rushed to beat the surcharge.

“Changes in the tax system lead to behavioural change, and the advance warning by the Government that Stamp Duty would increase for second purchases from 1st April 2016 is certainly evidence of opportunistic buyers wanting to beat the tax rise,” claims Shah.

This guide will help you understand how the tax change will affect you: https://www.justlandlords.co.uk/news/landlords-guide-stamp-duty-surcharge/

Although property transactions surged in March – ahead of the deadline – significantly fewer homes changed hands in April.

Between March and April, the number of property transactions dropped by a huge 45%, as landlords avoided paying the higher tax rate.

Assistant Manager at Blick Rothenberg, Paul Haywood-Schiefer, comments: “With the rush to get these transactions completed in April, it is inevitable there will be a slowdown in the market in the months ahead. Following this major upheaval in the tax, it will be interesting to see how property transactions and Stamp Duty receipts fare over the next few months, as the housing market relaxes itself. Those looking to purchase an additional property will be contemplating the increased Stamp Duty costs, while those with two properties may not want to sell, knowing they will have additional Stamp Duty to fund on replacing the second property.

“For now, the overall effect on the Treasury is positive, as Stamp Duty receipts for the previous 12 months, which hit £11 billion, have totalled almost as much as capital gains tax and inheritance tax put together, at £11.7 billion, and further demonstrates how the tax on property has boosted the Treasury revenues. It has also addressed an area in which the Government had expected to lose out.”

Annual Scottish rent rises in 3-year low

Published On: May 25, 2016 at 9:03 am

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Latest figures suggest that annual Scottish rent rises are currently at a three-year low.

The most recent Scotland Buy-to-Let Index from Your Move shows that rental increases over the course of the last year were at just 0.6%.

Scottish rent rises

This rise was the slowest seen since April 2016 and shows a substantial downturn from the 1.1% recorded in March and the 2.1% seen in February.

In absolute terms, an annual increase of just 3% means that the average rent north of the border stands at £542 per month. This is the lowest since the £539 recorded in April 2015.

Month-on-month, typical Scottish rents have slipped by 0.4% since March. Average rents in England and Wales however has risen by 0.3% over the same period.

Bargains

Brian Moran, lettings director at Your Move Scotland, notes, ‘tenants looking to rent a property now may find themselves able to bag a bargain, after a slight spring slump in rent growth. Rents haven’t risen at such a leisurely place for three years. However, this year-on-year snapshot hides the many price fluctuations we’ve seen in between this April and last and also isn’t uniform across the country.’[1]

‘The lettings market is always at the mercy of local supply and demand and in Edinburgh and the surrounding areas we’re seeing extraordinarily fast rent rises as tenant competition shines brightest around the glow of the jobs market,’ he continued.[1]

Moran also feels that, ‘supply and demand need to strike a lasting equilibrium to prevent rent growth taking off and leaving tenants by the wayside-and that’s a tall order in today’s regulatory environment. Landlords are up against a considerable cocktail of hurdles, including a higher rate of stamp duty on property purchases, reductions in tax relief and the Private Tenancies Bill. While levied at landlords, these measures could soon hurt thousands of tenants too, if buy-to-let investment retreats as a result and there are less houses and flats to rent.’[1]

Annual Scottish rent rises in 3-year low

Annual Scottish rent rises in 3-year low

Arrears rising

A slower rise in annual rents, coupled with a fall in monthly charges, would, one would think, ease the pressure of Scottish renters.

Not so, as the number of tenants in arrears has risen for the second successive month. The proportion of late paid rent has risen to 11.6% of all rent due during April, in comparison to just 11.3% in March.

Annually, tenant arrears have also got worse. At the same time in 2015, late rents stood at 9.2%.

Moran commented: ‘it appears that paying the rent on time is becoming slightly harder for Scotland’s tenants. When coupled with the fact of slowing rent growth recently, this certainly rings alarm bells for the state of tenant finances across the country. A few months ago it felt like there was some real headway being made and levels of late rent were dropping-but there’s been an unfortunate rebound.’[1]

‘With unemployment in Scotland on the rise, tenants can’t afford for the current housing shortage to continue. More homes to let are needed in the places where the jobs market has something to offer, and a better balance of supply and demand is vital to iron out these lasting obstacles in rental arrears. Ironically, Scotland needs landlords to keep investing and expanding the supply of rental homes on the market – at the very time when the Government is targeting them with regulatory weapons,’ Moran concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/scotland-sees-eent-rises-fall-to-three-year-low.html