Written By Em

Em

Em Morley

Importance of Smoke Alarms Stressed as Young Boys Die in Fire

Published On: February 23, 2016 at 3:13 pm

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Two young boys have died following a fire in their rented home, where there were no working smoke alarms, according to the Fire Service.

Logan Taylor, three, and Jake Casey, two, were rushed to hospital following the afternoon blaze at the rental property in Huddersfield. Sadly, neither of the boys could be saved.

Their mother, Emma Taylor, and older brother, Finlay, six, managed to escape the house as the fire took hold.

Deputy Chief Fire Officer Dave Walton has stressed the importance of smoke alarms, as he revealed that no working devices were found in the property.

He reports: “We can confirm that at the time of the fire, there were no working smoke alarms in the property.

“Further investigations are ongoing to determine the exact circumstances, but we urge people to always have a working smoke alarm and to test it regularly.”

He adds: “Whilst early indications are that the cause of the fire is not suspicious, investigations are ongoing and it may be some days before we have a conclusive cause of the fire.”1

It is believed that the blaze was started by an electrical fault in the front bedroom of the house.

Landlords have been legally obliged to install fire alarms on each floor of a rental property since 1st October 2015. They must ensure the devices are working at the start of each new tenancy. After this, tenants are responsible for making sure that the smoke alarms are working.

Over the next few days, fire crews will be in the area around the house offering fire safety advice and fitting smoke alarms where required.

West Yorkshire Police says that the fire appears to be a “tragic accident”, but the investigation is continuing1.

Under the Smoke and Carbon Monoxide Alarm (England) Regulations 2015, landlords or their letting agents must install not only smoke alarms, but carbon monoxide detectors in any room used as living accommodation where solid fuel is used.

For more information and advice on the requirement, read the Government’s guide here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/464717/150929_SC_Explan_book_Annex_A_LandlordsTenants_REVISED.pdf

Earlier today, we reported that Gas Safe Europe has created a new product, designed to help landlords and letting agents comply with the legislation. Here are the details: /new-product-to-assist-in-smoke-alarm-legislation-compliance/

Ensure that you protect your tenants by keeping up to date with the latest landlord law and regulations.

1 http://www.dailymail.co.uk/news/article-3459763/No-working-smoke-alarms-house-boys-aged-two-three-died-electrical-blaze.html

17% of tenants have sub-let their rental property

Published On: February 23, 2016 at 12:53 pm

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A concerning new survey shows that 17% of private rental sector tenants in Britain have sub-let part or all of their property to persons not named on lease agreements.

Additionally, 25% of tenants who said they sub-let did not check the terms of their lease to see if this activity was permitted. 34% said that they did not inform their landlord of the decision.

Of these renters who did not inform their landlord, one-fifth got found out. In 11% of cases, the tenants named on these leave were evicted, with 6% losing their deposit. Other punishments for these tenants included increased rental charges, fines and formal warnings.

Tempting

The survey, conducted by Direct Line for Business, also shows 15% of current tenants are thinking about sub-letting either some or all of their property.

A spokesperson for Direct Line for Business said, ‘the average monthly rent across the UK currently stands at £739. This means on average, approximately a third of people’s income goes towards accommodation. With the market having seen a five per cent increase in average rents in the last year, it seems that a larger number of renters are tempted to offset this expense by sub-letting their properties.’[1]

17% of tenants have sub-let their rental property

17% of tenants have sub-let their rental property

 

Sub-let Increases

In the last two years, Landlord Action has seen a rise of 18% in the number of landlords with sub-letting cases. This is making it a more substantial reason for eviction, alongside rent arrears and Section 21 for possession only.

Founder of Landlord Action Paul Shamplina said, ‘organised sub-letting scams are also becoming more prevalent, where tenants, or sometimes even fake tenants, advertise properties and rooms on holiday/accommodation websites in order to cream a profit without the landlords’ consent.’[1]

Further data from the report shows that sub-letting is most common in the North West and West Midlands. In these regions, more than 25% of tenants said that they have sub-let their accommodation. London came in third.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/one-in-six-tenants-has-already-sub-let–and-more-may-do-so-via-airbnb

 

Homebuyers Stretching Their Mortgages to Get on Property Ladder

Published On: February 23, 2016 at 12:42 pm

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A record number of first time buyers and home movers took out mortgages for over 25 years in 2015, as soaring house prices make it harder to get onto, or move up, the property ladder.

Affordability issues have also increased the amount of borrowers taking on mortgages worth more than 4.5 times their income, causing the Chief Economist at the Council of Mortgage Lenders (CML), Bob Pannell, to warn that a “potential problem is building under the noses” of the Bank of England’s Financial Policy Committee (FPC).

Statistics from the CML found that in the second half of last year, 58% of first time buyers took out mortgages for longer than the typical 25-year term. At the peak of the last housing boom in 2007, this was just 42%.

Homebuyers Stretching Their Mortgages to Get on Property Ladder

Homebuyers Stretching Their Mortgages to Get on Property Ladder

Meanwhile, 36% of home movers took out mortgages over the traditional 25 years – double the proportion before the housing crash.

Higher retirement ages and pension freedoms may have encouraged these buyers to borrow for longer, but the CML believes it is mainly a result of the need to stretch incomes to get onto the property ladder.

The CML’s data also shows a sharp rise in the proportion of borrowers taking out mortgages worth over 4.5 times their income.

Around two years ago, this type of lending was cracked down on, due to fears of a housing bubble. Banks and building societies are now only permitted to approve 15% of lending at that level.

After the clampdown from the FPC, the proportion of borrowers taking on such large loans fell, but in the fourth quarter (Q4) of 2015, the number of first time buyers and movers borrowing high amounts almost returned to 2014 levels. Over the quarter, 11% of first time buyers and 9.8% of movers borrowed more than 4.5 times their earnings to purchase a home.

Pannell explains how the mortgage market has changed: “After peaking at 10% just ahead of the FPC action in mid-2014, the proportion of high income multiple lending eased back considerably over the following year, to just below 7%.

“But the picture has changed a lot over the past six months or so. [It] has increased sharply, especially for movers, and retraced a good chunk of the previous year’s reduction.”

Pannell notes that there may have been “a precautionary ‘knee-jerk’ response from lenders” to the new rules when they were first announced, which is now unravelling as they get used to working within the guidelines.

However, he says that lending at all levels above 3.5 times earnings has risen and there are signs “that borrowers are now stretching their incomes more than in mid-2014”.

He adds that the 15% cap on 4.5 times lending means “we should expect to see a build-up of lending just below the 4.5 times threshold”.

At present, the FPC is monitoring the buy-to-let mortgage market, following a boom in borrowing by landlords.

However, Pannell believes: “A potential problem is building under the noses of FPC policymakers, and it has nothing to do with buy-to-let lending.”1

As buy-to-let investors seek to rush through rental property purchases ahead of the 1st April Stamp Duty deadline, it appears that the mortgage market across all sectors will see vast change in the coming months.

The latest information for landlords on property and finance can be found at LandlordNews.co.uk.

1 https://www.cml.org.uk/news/news-and-views/affordability-bites/

New product to assist in smoke alarm legislation compliance

Published On: February 23, 2016 at 11:43 am

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One of Britain’s biggest suppliers of carbon monoxide and smoke alarm testing products has produced a new product to assist agents and landlords comply with legislation.

GasSafe Europe has created a ‘Triplicate Record Pad,’ which can be used as evidence to prove to local authorities that smoke and carbon monoxide alarms have been tested and are in sufficient order.

Legislations

It is a legal requirement for landlords and letting agents to prove that a building’s alarms are compliant with Smoke and Carbon Monoxide Regulations 2015. Tests must be carried out at the beginning of all new tenancy agreements and during property inspections. Those who not adhere to these legislations face fines of up to £5,000.

This new regulation came into effect last October and it is hoped that up to 26 deaths and 670 injuries per year will be prevented as a result.

New product to assist in smoke alarm legislation compliance

New product to assist in smoke alarm legislation compliance

Equipment

The ‘Triplicate Record Pad’ can record the property address details, information on specific alarms tested and any faults or replacements made.

In order to assist landlords and agents meet legislation guidelines, Detectagas has been designed to check the battery and sensor in alarms in just one test. This is done by injecting a specific level of test gas into a transparent cover over the alarm itself.

Should an alarm be found to be faulty, GasSafe Europe has designed tamper-proof stickers to notify residents and ensure that they are not used. The labels use extra-strong glue alongside a fragile material, which means once it is used it becomes very difficult. This makes it ideal for inspectors, with this method helping to make sure alarms highlighted as faulty will be virtually impossible to be re-used.

Retirees still investing in buy-to-let

Published On: February 23, 2016 at 10:10 am

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A new assessment on buy-to-let investment has revealed that retirees are still looking to purchase in the sector.

Data from a report by Fidelity International indicates that retirees putting tax free cash from their pensions into buy-to-let has remained constant during the last year. This is despite the forthcoming tax changes.

Alterations

On April 6th 2016, a buy-to-let investor will be permitted to pay an extra 3% stamp duty in comparison to residential buyers. In addition, higher-rate tax relief on mortgage interest will be cut from April 2017, to the basic rate of 20%. As such, landlords will be able to claim less for wear and tear suffered in their properties.

However, these changes have done little to dispel retirees’ appetite for buy-to-let investment. Fidelity International said that 7% of their retirement customers used their tax-free money to invest in a rental property during January. This was the same proportion seen in the last six months of 2015.

In all, property purchases remain popular with retirees, making up 14% of all usages of tax-free pension money during 2015. This percentage has typically been split 50/50 between buy-to-let and owner-occupier purchases.

Retirees still investing in buy-to-let

Retirees still investing in buy-to-let

‘No Brainer’

‘The British love affair with all things property is well-documented and for many retirees, buy-to-let is seen as a no brainer investment given the spectacular rise in property markets, particularly in London, over recent years,’ noted Maike Currie, investment director for personal investing at Fidelity International. ‘Tax changes aside, the illiquidity of the housing market as well as costs in the way of maintenance, stamp duty, mortgage arrangement fees and a host of unpredictable outgoings can chip away at income. Not to mention the time and effort required to manage a property and the risk that it may lie empty between tenancies,’ she continued.[1]

‘Investing in property funds allows investors access to an income stream without the hard work and unexpected costs of a tangible property. Buy-to-let in retirement may work for some but with the added extras that come with it, it’s worth asking yourself whether you really want to be managing a property in your eighties?’ Currie concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/2/retirees-love-affair-with-buy-to-let-continues

 

Shortage of Conveyancers Putting Property Sales on Hold

Published On: February 23, 2016 at 9:32 am

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Categories: Property News

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A lack of conveyancers is holding up a large number of property sales, according to recent research.

The CEO of estate agent haart, Paul Smith, notes that as a result, the amount of exchanges dropped by 14.7% in January compared to the previous month and by 7.5% compared with January last year.

Based on his own company’s data, Smith estimates that there were 50,152 exchanges in January, with an average house price of £225,914.

He reports that demand has grown by over a third year-on-year, while housing supply has increased by 8%.

Shortage of Conveyancers Putting Property Sales on Hold

Shortage of Conveyancers Putting Property Sales on Hold

Part of the surge in demand may have come from a rush of buy-to-let landlords hoping to complete on a property investment ahead of the 1st April Stamp Duty deadline.

Smith comments: “The property market in the New Year has got off to a flying start with a surge in buyer registrations and new property instructions.

“The number of new homes coming on the market is up by a healthy 8% compared to a year ago, but demand has surged by 35% over the same time period, with buy-to-let investors responsible for a large proportion of this rise in anticipation of the Stamp Duty surcharge.”

He continues: “This high level of activity has resulted in a substantial backlog of homes in the pre-completion stages, and we’re now seeing a shortage of conveyancers and lawyers to progress these sales, leading to delays and a subsequent decline in the number of completions in January.

“Across the UK, we’re now seeing more than 15 buyers chasing every property to come onto the market, and house prices have subsequently risen by 10% annually.”

How does the whole UK property market compare to London?

“London is also seeing a high level of activity and finally the issues surrounding the supply of homes is starting to ease, with a 20% increase in instructions registered compared to last year,” Smith reveals.

“In fact, supply is now beginning to outpace demand, which is up by 14% over the same time period. While this increase is very welcome, we are still seeing nearly 21 buyers for every instruction, despite the slowdown at the top end of the market.”

And how are first time buyers faring?

Smith explains: “First time buyers have started the year enthusiastically, with demand for starter homes up 26% annually. This is just the start of an upward trajectory for first time buyers, as the 3% Stamp Duty surcharge for buy-to-let investors, due to be introduced in April, will mean less competition for homes.”1

From 1st April, buy-to-let landlords and second homebuyers will be charged an extra 3% Stamp Duty on properties costing £40,000 and over. Many investors have been rushing to purchase rental properties ahead of the additional tax charge.

Tax specialists have warned about the high cost of missing the deadline.

For the latest landlord information and advice, check back to LandlordNews.co.uk.

1 http://www.propertyindustryeye.com/lack-of-conveyancers-holding-up-huge-numbers-of-house-sales/