Written By Em

Em

Em Morley

More Housing Benefit Tenants Subject to Universal Credit

Published On: February 8, 2016 at 9:52 am

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Categories: Landlord News

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Do you have tenants on housing benefit? If so, you must be aware of Universal Credit, the Government’s new welfare system.

More Housing Benefit Tenants Subject to Universal Credit

More Housing Benefit Tenants Subject to Universal Credit

Universal Credit sees six benefit payments, including housing benefit, rolled into one monthly payout. This means that housing benefit will be paid directly to tenants for the first time. Landlords, it is important that you communicate with your tenants about any financial changes.

It is believed that Universal Credit is leading to a rise in rent arrears. Protect your investment with rent guarantee insurance to minimise damage to your lettings business.

Since the New Year, Universal Credit has been rolling out across the country. See the areas it is already in operation here, here, here and here. Remember that we will keep you up-to-date with all of the new areas where benefit claimants will soon be receiving the new payments.

If you have rental properties in any of the following areas, your benefit tenants will now be on Universal Credit:

  • BR1 4, BR1 5 and BR3 1 in Bromley.
  • CR4 1 in Croydon.
  • DA1 3, DA1 4, DA1 5, DA5, DA6, DA7, DA8, DA14, DA15, DA16, DA17 and DA18 in Dartford.
  • DY3 1 in Dudley.
  • GU11, GU12 4, GU14, GU30, GU31, GU32, GU33, GU34 1, GU34 2, GU34 3, GU34 9, GU35, GU51 and GU52 in Guildford.
  • RG7 1 in Reading.
  • SE2, SE3, SE4, SE5, SE6, SE8 3, SE8 4, SE8 9, SE9 2, SE9 3, SE9 4, SE10 8, SE11, SE12 0, SE12 8, SE12 9, SE13, SE14, SE15, SE16 3, SE16 9, SE17, SE19, SE21, SE22, SE23, SE24, SE26, SE27 and SE28 in southeast London.
  • SO24 0 in Southampton.
  • SW2, SW3, SW4, SW8, SW9, SW11 1, SW11 3, SW11 4, SW11 5, SW11 6, SW12, SW16, SW17 8 and SW17 9 in southwest London and Battersea.
  • TS1, TS2, TS3, TS4, TS5, TS7 8, TS8, TS9 7, TS17 7 and TS17 9 in Cleveland/Teesside.
  • WS10 8 in Walsall.
  • WV1, WV2, WV3, WV4, WV5, WV6, WV7, WV8, WV9, WV10, WV11, WV12, WV13 and WV14 in Wolverhampton.

 

 

 

 

The Varying Costs of Using an Estate Agent

Published On: February 7, 2016 at 4:01 pm

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Categories: Finance News

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Selling a property can often be a difficult process, with a variety of estate agents to choose from and the issue of getting stuck in a chain. But then there’s the fees themselves to think about.

And estate agent costs are anything but consistent. Depending on location, fees range from 0.9% to 2% of the property’s purchase price, according to Urban.co.uk.

The Varying Costs of Using an Estate Agent

The Varying Costs of Using an Estate Agent

The firm contacted 450 estate agents across the country, requesting a quote for a standard package, including photography, floor plan creation, online marketing and shop window marketing.

However, estate agent fees do not always rise in line with purchase price.

Unsurprisingly, London dominates the top of the list, with the seven most expensive locations for estate agent fees situated within the capital.

Farrington and Euston come out on joint top, with an average estate agent fee of 2% of the sale price.

In Farrington, where the average property costs over £1m, estate agent fees equal a huge £21,000.

As is happening in most industries, the online estate agent sector has boomed in the last few years. There are now many online agents that offer their services at much lower costs than high street firms. They typically charge set fees rather than commission percentages.

These agencies claim to be able to offer lower fees due to not having the overhead costs of running a physical branch.

However, vendors should be aware that they will have to host viewings and take on more of the work themselves to make the most of the savings on offer.

Many sellers might prefer the face-to-face interaction of using a high street agent, but billions of pounds worth of property is now sold through online agents every year.

Online estate agents are still controversial, as many believe that physical agents are irreplaceable. But it is clear that the potential savings are definitely significant.

A comparable package from an online agent, including a floor plan, for sale board and photography, costs around £1,000 – who would blame a vendor in Farrington using this service?

What’s your opinion of online estate agents? And do you think traditional agents are too expensive?

Neighbours make good friends…don’t they?

Published On: February 7, 2016 at 10:37 am

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Categories: Property News

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Wouldn’t it be nice to get on with my neighbours?

Well, yes, according to a new survey by Ocean Finance, which suggests that millions of Brits have issues with people living in close proximity to them.

51% of those who encounter a nuisance neighbour feel stressed or depressed and 24% said they wanted to move to a new region. 20% said that they don’t sleep well as a result, with 18% saying that they do not feel safe in their property.

Neighbours make good friends...don't they?

Neighbours make good friends…don’t they?

Typical Troublesome Traits

Troublesome neighbours come in many forms but Ocean Finance has recorded a list of the top-ten most annoying traits. Can you label your neighbour as one of these?

  • The chatters-You know the types. You just want to make the short journey to your car or the dustbin and they are there. Waiting. To talk. About nothing.
  • Bin thieves-Everyone knows one of these-neighbours who, despite the fact that it has your house number emblazoned on the front, steal your dustbin. Which leads nicely onto…
  • Wrong bin dumpers-Do you remember ordering pizza last night? No? Because you didn’t, but there is still a pizza box in your bin. And the bloke next door put it there.
  • Parking police-The family who have 4 cars but 3 residents and who still moan about not being able to park their surplus vehicles outside their house..
  • WIFI grabbers-A teenager at number 26 is having a great time online, using your WIFI.
  • Noisey Nigel-The man living in the attached property who has no concept on TV remote volume control or a regular bedtime
  • Litter louts-Mmm lovely, takeaway boxes, containing part of a kebab, just outside your front gate
  • The curtain twitchers-There’s always one person on the street who sees everything, before seeking sanctuary behind their curtains. This is before gossiping to anyone who will listen about what so-and-so was up to last night
  • Scrapheap challengers- Those neighbours who could hold a car-port sale with the amount of rubbish in their back garden
  • The ‘Eastenders’- More at home on the Jeremy Kyle show, these people argue with themselves on an hourly basis. And you have a front row seat.

‘Good neighbours really can be good friends are a vital part of a vibrant community,’ said Ian Williams. ‘But most Brits will recognise at least one of these less welcome neighbours too-and sadly for some people a problem neighbour can make their lives a misery.’[1]

 

Buying a Property Depends on Whether You Fall in Love With It

Published On: February 6, 2016 at 12:11 pm

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Buying a Home Depends on Whether You Fall in Love With It

Buying a Property Depends on Whether You Fall in Love With It

Love is in the air… At least it is for property buyers.

We’re often told that when choosing a property, it’s all about location, location, location, but recent research indicates that it’s a little more emotional than that.

More than half of homebuyers purchase a property because they’ve fallen in love with it, and the top three reasons for such amorous feelings are location, price and the garden.

Property expert Kirstie Allsopp suggests that it could be about even more: “It is a given that it is about location. Location is everything. But once you have got the location, what often makes people choose one property over another is perhaps something people don’t even acknowledge themselves, and that’s aspiration.”

She explains: “Potential buyers look around a house and it could be a holiday picture or a book, something they want to do or be, and that often seals the deal, especially when choosing between two houses.”1 

The study by conveyancing firm My Home Move found that 56% of buyers purchased their home or a previous property simply because they fell in love with it.

Respondents were asked to choose up to three reasons why they fell in love with the property. The most common reason is the location, followed by the home’s price and thirdly by its garden.

What made buyers fall in love with their home?

Position

 Reason

Number of respondents
1 Location 58%
2 Price 37%
3 Garden 29%
4 Interior 15%
5 Living area 13%
6 Kitchen 8%
7 Master bedroom 7%
8 Exterior 7%
9 Natural light 7%
10 Architecturally interesting 5%
11 Beautifully decorated 3%
12 Fireplace 2%
13 Flooring 1%
14 Walls 1%
15 Street name 1%

The Chief Executive of My Home Move, Doug Crawford, comments on the findings: “Britain’s love affair with property is built on location. For most people, location is the secret ingredient that makes them fall in or out of love with their home. Brits also love a bargain, which explains why cost was the second most important factor in making someone fall in love with their home.

“As house prices continue to climb and many first time buyers struggle to take their first step onto the property ladder, younger buyers are more willing to scout out up-and-coming areas to try and find a bargain to fall in love with.

“Unfortunately, not all of those buying a home have the flexibility to pick and choose their ideal location or perfect interiors, especially as demand continues to outstrip supply. Compromise may have to become the buzz word of 2016, as there is little to suggest the situation is likely to ease any time soon, as more and more homeowners chase after one property.”1 

Location was also a key reason for buyers not choosing a property, along with its appearance inside and out.

What put buyers off purchasing other properties?

Position

 Reason

Number of respondents
1 Location 43%
2 Price (too expensive) 40%
3 Appearance (interior) 34%
4 Too small 30%
5 Appearance (exterior) 26%
6 None/don’t know 20%
7 Price (under budget and felt they could get more) 9%
8 Too big 7%
9 Worried about the neighbours 7%
10 Didn’t feel safe 5%

Andrew Montlake, of mortgage brokers Coreco, says: “The vast majority of our clients are fixated on having a home in their perfect location, whether this be for transport links, schools or even a romantic notion about the area itself, and are willing to compromise on other aspects, often paying a bit more to get it.

“However, an increasing number are now more constrained by price and have shown more willing to investigate other areas, where the features of the property itself become more important once more. While different buyers all have very different opinions on what will make their perfect home, the phrase I hear more often than not is, ‘I have found a property I have fallen in love with’.”

He adds: “Once buyers picture themselves in an area and a particular property where they can build a home, love does the rest.”1 

1 http://www.dailymail.co.uk/property/article-3420607/The-three-real-reasons-people-buy-property.html

The Redfern Review into UK housing launched

Published On: February 6, 2016 at 9:00 am

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With home-ownership totals at their lowest for nearly three decades, the largest review into the housing market in recent times has been launched. The Redfern Review will investigate the key areas causing the crisis, such as housing supply, affordability for first-time buyers and planning and construction problems.

Assessment

Led by Pete Redfern, chief executive of house builder Taylor Wimpey, the review is being back by shadow housing minister John Healey MP.

Mr Redfern said that the review would be independent but still critical of policies and would take a long-term view of how to solve the situation.

Redfern said, ‘it’s not to knock party policy but to question and challenge and to say this is working really well or this isn’t working well but may do in the future. It’s pointless having the review if you’re not willing to challenge policy.’[1]

‘This is not about party politics, it affects us all,’ he continued.[1]

The Redfern Review into UK housing launched

The Redfern Review into UK housing launched

Homeownership 

Moving on, Redfern observed that while the review will look into homeownership, it would also be mindful of other tenures.

‘We are not trying to set a number for homeownership that we say is right and it’s not a one-way street, but it’s failing consistently and that’s not a healthy thing. One thing we’re clear on is we’re not promoting homeownership at the expense of other tenures,’ he stated.

Included alongside Redfern on the panel are Dame Kate Barker, Terrie Alafat CBE, Chief Executive of the Chartered Institute of Housing, Andy Gray, deputy chair of the CML and Ian Mulheim, director of consulting at Oxford Economics.

John Healey MP said that, ‘The Redfern Review will take a hard look at the causes of the recent decline in home-ownership, to help bring fresh ideas to the wider public debate on how we can get to grips with this problem.’[1]

[1] http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/12138852/Government-launches-biggest-housing-review-in-more-than-a-decade.html?utm_source=dlvr.it&utm_medium=twitter

 

One Help to Buy ISA Opened Every 30 Seconds, Says Osborne

Published On: February 5, 2016 at 3:34 pm

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Categories: Finance News

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The Government’s Help to Buy ISAs have been opened at a rate of one every 30 seconds since the scheme launched on 1st December 2015, according to Chancellor George Osborne.

The scheme, announced in the Budget last March, gives prospective first time buyers £50 for every £200 they put in the tax-free account. Hopeful homebuyers can save up to £12,000 in the ISA, entitling them to £3,000 of Government money towards their deposit.

The Treasury reports that 250,000 people have opened a Help to Buy ISA since the launch, equivalent to 3,000 a day or one every 30 seconds.

Data from a series of banks that offer the accounts suggests that 75% of the new savers are aged 30 and under.

Opponents to the scheme say it could fuel demand for homes, without increasing supply, and the £2 billion cost to the taxpayer over the next five years could have been better used to pay for thousands of affordable homes.

One Help to Buy ISA Opened Every 30 Seconds, Says Osborne

One Help to Buy ISA Opened Every 30 Seconds, Says Osborne

On a visit to a Help to Buy housing development in Sandbach, Cheshire yesterday, Osborne denied that the scheme is treating a symptom rather than a cause of declining homeownership.

“The best thing the Government can do is to make sure that homes are being built for families in the right places and we have the right infrastructure,” he added. “The fact that so many people are making use of the Help to Buy ISA says to me that there’s a lot of pent-up aspiration there – there are a lot of families who want to get on the housing ladder.”1

The Policy Manager at lobby group Generation Rent, Dan Wilson Craw, gives his opinion on the scheme: “It’s not a big surprise that free money from the Government is proving so popular. The danger for first time buyers is that their extra purchasing power will simply result in estate agents putting their asking prices up.”1 

And Campbell Robb, the Chief Executive of housing charity Shelter, adds: “The fact is, with house prices soaring by almost £20,000 in the last year alone, this is nothing more than a drop in the ocean. In many parts of the country, even the maximum amount you could save with Government help won’t be enough for a deposit, and, with half of renters’ incomes swallowed up by housing costs, for millions, saving anything at all is impossible.”

He believes: “This money would be far better spent on building homes that people on ordinary incomes can actually afford to rent or buy in the first place.”1 

The new Treasury statistics arrive as Labour announces a new independent review into the fall of homeownership – a report led by Peter Redfern, the Chief Executive of Taylor Wimpey.

The Shadow Minister for Housing and Planning, John Healey, insists that increasing homeownership is Labour’s housing priority.

He explains why: “A million more households became homeowners under Labour, but homeownership is now in free-fall.

“Young people aspiring to own a home have been the hardest hit. What used to be a natural part of growing up is becoming a luxury for those on the highest salaries, or whose parents have the deepest pockets.”1

Research by the House of Commons Library, commissioned by Labour, found that 280,000 fewer households headed by under-25s owned their own home in 2015 compared to 2010.

The greatest decline has been among young people in professional jobs – 150,000 fewer of these households own a property, down 16% on five years ago.

The amount of young people in working class jobs that own their home is down 20%, or by 68,000 households. Only one in five young working class households own a home.

1 http://www.theguardian.com/money/2016/feb/04/savers-open-250000-help-to-buy-isas-two-months