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Em Morley

Housing and Planning Bill Passes Report Stage

Published On: January 6, 2016 at 9:23 am

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Last night, the Housing and Planning Bill passed its report stage in the House of Commons.

After many official announcements beforehand, the debate started in the evening.

The bill is now set for its third reading. It is the first bill with an English legislative stage, with only English MPs allowed to vote on certain sections. The date for the English stage and third reading is yet to be confirmed.

Housing and Planning Bill Passes Report Stage

Housing and Planning Bill Passes Report Stage

The bill will introduce a blacklist of rogue landlords and letting agents, which will be made available to local authorities and central Government.

Additionally, for the first time, the bill will make it possible to ban landlords and agents from the industry. However, at present, the bill still allows banned letting agents to set up as estate agents.

Amendment 16, tabled by the Government, will raise the maximum fine for someone caught renting out substandard accommodation from £5,000 to £30,000.

The bill will also extend the Right to Buy scheme to housing association tenants and force local authorities to build starter homes for first time buyers; opponents have attacked the laws, believing they will bring an end to social housing.

A few hours before the debate yesterday, protestors gathered in Parliament Square to voice their opinions.

Green Party MP Caroline Lucas, representing Brighton Pavilion, voted against the bill.

She explains: “The housing crisis is biting hard. Renting is unaffordable, our social housing stock is dwindling and buying a home is still an impossible dream for many. And, as with so many of the challenges our society faces, it is the young who are suffering the worst.

“The Government had an opportunity to utterly rethink the housing model, but instead, Parliament is being presented with legislation that’s going to make the situation far worse and put another nail in the coffin for British social housing.”

However, she adds: “There are a few good measures in the bill. The provisions on rogue landlords, letting agents and the introduction of a brownfield register are welcome, but they simply don’t go far enough to protect renters or encourage the building of truly affordable homes.

“The overall effect of this legislation will be to inflict further harm on those already suffering and to drag more people into the housing crisis. It will decrease the amount of social housing, fail to bring down sky-high rental costs and do nothing to keep people warm in their homes.

“For example, the bill should have looked at ways to make rents fall, but it doesn’t even go as far as bringing in smart rent controls to keep them in line with inflation.”

She concludes: “The housing crisis we’re facing is the result of botched policies by successive Governments, and this latest bill is set to compound that failure.”1

What are your views on the new bill?

1 http://www.propertyindustryeye.com/housing-and-planning-bill-set-to-raise-fines-against-agents-and-landlords-to-30000/

Only a Huge House Building Scheme Will Keep Housing Under Control, says NAEA and ARLA

Published On: January 5, 2016 at 3:04 pm

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The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have responded to ministers over the housing crisis. They believe that the only way to control the property market is through “a massive house building programme”.

The call is included in the organisations’ response to a Government consultation on housing.

Only a Huge House Building Scheme Will Keep Housing Under Control, says NAEA and ARLA

Only a Huge House Building Scheme Will Keep Housing Under Control, says NAEA and ARLA

The document states that to increase the supply of reasonably priced homes, finance, land, time and skill are necessary.

“We need to stop thinking of housing policy in five-year election cycles and adopt a long-term approach to this critical issue,” it argues.

The response lists a number of measures that would help increase the amount of affordable homes.

It notes: “Bricks and other materials must be ordered a year before a home can be built and the UK needs skilled workers to ensure that properties are built to a high standard.”

It says that homes must be built on “suitable land that is located along existing transport corridors” and the “supply of reasonably priced housing coincides with infrastructure improvements”.

The groups also urge these homes to be built alongside “schools, hospitals, local shops and green spaces”, and believe better use of “unused public sector land” would benefit the market. This has been pledged in the latest Government starter homes scheme: /house-builders-respond-to-governments-latest-home-building-plans/

Once the homes are built, the NAEA and ARLA insist that “people need support in accessing finance to purchase property”, as house prices still exceed wages.

On private rental sector improvements, the document states: “ARLA believes that full mandatory Government regulation of sales and letting agents is the quickest and most effective method to eliminate unprofessional, unqualified and unethical agents from the rental market.”

“We think increasing supply of rental properties and raising standards across the industry must go hand-in-hand,” it adds.

The response – to the House of Lords Select Committee on Economic Affairs Inquiries into the Economics of the UK Housing Market – also warns against rent controls, claiming that if limitations on rent increases were introduced, landlords would start new tenancies with higher rents to prevent losses.

It says: “Higher rents would be essential to ensure mortgage payments and maintenance costs could be met.”1

1 http://www.naea.co.uk/media/1043996/naea-arla-response-to-house-of-lords-inquiry-into-economics-of-uk-housing-market.pdf

 

 

 

 

Property damage costs landlords £4.5bn per year

Published On: January 5, 2016 at 2:00 pm

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Latest figures have indicated that landlords in Britain shell out a huge £4.5bn per year to fix property damage caused by their tenants. In addition, rent arrears account for around £900m per annum in costs.

Data from research conducted by TDS suggests that thousands of landlords are faced with property damage at the conclusion of a tenancy agreement. The most-common issues are broken appliances, damage to carpets and unauthorised decoration.

Disputes

According to statistics from the report, damage to property amounts to 56% of all deposit disputes. What’s more, TDS reports that 19.2% of all disputes raised resulted in 100% pay-out to tenants. On the other hand, 19.8% of deposit disputes saw landlords and agents paid out in full. In the remaining 61% of cases, monies were split between the different parties.

Founder and CEO of Imfuna Let, Jax Kneppers noted, ‘many landlords feel tenants are not held to account when damage is caused and that there is little they can do to protect their property. Furthermore, landlords have a poor record in winning tenant dispute cases.’[1]

Kneppers believes however that, ‘this could be changed dramatically if they ensure a few simple procedures are put in place at the start of a new tenancy agreement. For example, ensuring there is a fair contract in place for a new tenant along with a thorough and detailed inventory, will enable both parties to be treated fairly and reasonably. Time and time again, landlords are losing disputes because they’re not providing the right evidence to show that a tenant has damaged the property.’[1]

Property damage costs landlords £4.5bn per year

Property damage costs landlords £4.5bn per year

Protection

Mr Kneppers went on to say that, ‘the best way for landlords to protect their property and avoid a dispute is by ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a through check-in and check-out report.

All UK landlords are permitted to provide a detailed inventory to their tenants at the beginning of a new tenancy agreement.

Kneppers concluded by saying that Imfuna Let, ‘work with many landlords and agents who have managed to reduce property damage by carrying out mid-term inspections, supported by a thorough and professional inventory.’[1]

[1] http://www.propertyreporter.co.uk/landlords/property-damage-costs-landlords-%C3%A3%C2%A245bn-a-year.html

 

House Builders Respond to Government’s Latest Home Building Plans

Published On: January 5, 2016 at 12:02 pm

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The Government has announced that it will directly commission thousands of new build homes on publicly owned land, allowing smaller house builders to create developments.

The first phase of the plan will include up to 13,000 homes, of which up to 40% will be discounted starter homes for first time buyers, offered at a 20% price reduction.

The initial five sites are in northwest London, Northstowe in Cambridgeshire, Dover, Chichester and Gosport in Hampshire.

Over the next five years, further brownfield sites will be pushed through the planning process, leading to the development of at least 30,000 new starter homes on 500 sites.

The Government described the scheme as a “radical new policy shift not used on this scale since Thatcher and Heseltine started the Docklands”1.

House Builders Respond to Government's Latest Home Building Plans

House Builders Respond to Government’s Latest Home Building Plans

It previously announced a commitment to providing 200,000 starter homes by 2020.

The Prime Minister, David Cameron, said: “This Government was elected to deliver security and opportunity – whatever stage of life you’re at. Nothing is more important to achieving that than ensuring hard-working people can buy affordable homes.

“Today’s package signals a huge shift in Government policy. Nothing like that has been done on this scale in three decades; Government rolling its sleeves up and directly getting homes built.”1

House builders believe it is positive that the Government is addressing the housing crisis, while an organisation for protecting rural England insists that the scheme will not even help wealthy youngsters get on the property ladder.

Executive Director of the Home Builders Federation, Stewart Baseley, comments: “House building rates have been increasing at the steepest rates for decades, with additional supply reaching 171,000 last year.

“But we welcome the fact that the Government is clearly prioritising housing supply rates, particularly with regard to streamlining the process of building homes on public sector land.

“If we are to address the chronic shortage of homes that has developed over decades, strong Government leadership is essential.”

He continues: “Allowing smaller builders to access publicly owned sites is a welcome move that must be part of a wider set of measures to assist SME builders [small and medium sized house builders] and get more players on the pitch.

“Clearly the devil will be in the detail and we await further information.”

Baseley adds: “Direct commissioning will only be successful if it speeds up the release of public sector land and results in more house building than would have happened using the more traditional methods of public-sector land disposal.

“A lower-risk model could allow larger builders to increase their output still further, while also enabling smaller house builders to increase output. Both have an essential role to play. It is not a question of either/or.”2

But the Campaign to Protect Rural England has another argument, stating that the Government’s plans to build the homes “at just 20% off ludicrous market values is a fatuous response to the biggest housing crisis since the Second World War”.

It claims: “At best, it will help those younger people on salaries far above the average, especially in London. Even a banker on £100,000 a year would struggle to raise a £400,000 mortgage, and that assumes a deposit of at least £50,000 – far above the average salary at £25,000 and utterly unreachable by anyone else.”3

1 https://www.gov.uk/government/news/pm-the-government-will-directly-build-affordable-homes

2 http://www.architectsjournal.co.uk/news/smaller-developers-handed-housebuilding-boost/10001059.fullarticle

3 http://www.theguardian.com/society/2016/jan/04/housing-masterplan-needs-a-rethink

Keep your home safe in 2016…and beyond!

Published On: January 5, 2016 at 11:52 am

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Dark mornings. Post Christmas blues. Struggling to fit into your favourite jeans following two weeks of chocolate, booze and cheese. Yes, the new year is upon us. However, the turning of a new calendar is the perfect time for landlords and homeowners alike to make security improvements to their home, in order to keep it secure for 2016 and beyond!

Safety

The 2015 Crime Survey for England and Wales by the Office for National Statistics indicated that 750,000 cases of domestic burglary in the past year.

Mark Jones, NHBC’s head of house buildings standards noted that, ‘there are a number of simple steps people can take to improve the security of their homes. From burglar alarms to security light, these measures can add value to properties and offer homeowners peace of mind in helping to make sure their homes and belongings are well protected.’[1]

‘People who live in newer properties, may already have security locks, burglar alarms and security lighting included as standard, ‘he continued. ‘But there are also a number of simple measures people can take to keep their homes and property safe from burglars.’[1]

Keep your home safe in 2016...and beyond!

Keep your home safe in 2016…and beyond!

Keep your home secure

Here then are some top-tips to keep your property secure for many new years to come:

Lock all the doors

It is vitally important to have robust locks on all doors of the property. Landlords should make sure are doors of their homes are fitted with secure fixed locks or a multi-point locking system. Latches and deadlocking should also be considered.

Don’t give burglars a window of opportunity

Make sure that any windows, particularly those on the ground floor or that can be easily reached, are fitted with lockable devices or handles that cannot be released without a key.

Enjoy the view  

By making sure that you have a wide angled view of the area outside the main entrance door to check on visitors, you can keep yourself aware of just who is calling. Some newer properties have conveniently placed windows that allow a clear view of the entrance area.

Let there be light

Installing an external detection security lighting system that switches on after dark when someone is near can be highly effective in deterring crime. Landlords and homeowners alike should seriously consider this to put off potential intruders.

Sound the alarm

Similarly, a house alarm system is a great way of decreasing the chance of crime. Some systems even link to a mobile phone or other device to let the property owner know that the alarm has been set off.

Don’t say that you’re away

Leave lights on a timer when you know that you are going to be away from a property. If you know that you are going to be away for a prolonged period, get a trusted neighbour or family member to make regular checks on the hom

[1] http://www.whathouse.com/news/tuesdaytips-keep-your-home-safe-this-year/12346/?utm_source=twitter&utm_medium=social&utm_campaign=tuesday%20tips

 

 

 

Number of homes for sale in UK falls again

Published On: January 5, 2016 at 9:29 am

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The latest monthly report from the National Association of Estate Agents makes bleak reading for potential homebuyers.

According to the research, there are 10 buyers for every property listed for sale in Britain, as the supply of homes available has dipped once again.

Decline

There was also bad news for first-time buyers. Following a positive period between July and October, where the number of sales to this group increased, purchases made in November fell by 10%.

As a whole, sales were down by 1%. This is typical at this time of year, but the sharp decline in sales to first-time buyers has given estate agents reason to fear the worst.

In the Autumn Statement, Chancellor George Osborne outlined his plans to assist first-time buyers in making it onto the property ladder. However, 53% of NAEA members believe that first-time purchasers will become more and more squeezed out of the market due to the continued lack of affordable housing.

The growing demand for property shows no sign of abating, with 336 house-hunters registered per NAEA branch in October, rising to 403 in November.

What’s more, the report shows that available housing dipped marginally in November, from 43 to 41 properties per branch.

Number of homes for sale in UK falls again

Number of homes for sale in UK falls again

Problems

‘It’s very normal at this time of year that demand is high and supply is low,’ noted Mark Hayward, MD of the NAEA. ‘House hunters hoping to find their dream property in the New Year have registered interest with agents, whilst those hoping to sell are holding off putting their properties on the market before January. However, supply is outweighing demand so heavily now that it can’t solely be attributed to seasonality,’ he continued.[1]

He went on to say that, ‘it’s clear that we’re faced with a crisis here and the housing market needs addressing as matter of urgency. Our recent Housing 2025 report compiled with Association of Residential Letting Agents and Centre for Economics and Business Research found that by 2025, house prices are set to rise by 50%-and if we don’t act now, this will impact first time buyers, second steppers and last steppers, forcing many out of home ownership.’[1]

Concluding, Mr Hayward said, ‘the Government has made efforts to address the issue of supply and demand, with Osborne outlining plans to build 200,000 new starter homes in his Autumn Statement, but four fifths of our agents think it simply isn’t enough.’ He believes that, ‘it’s all very well planning to build houses, but we need to move to action and get the bricks and mortar on the ground if we’re to solve the crisis we’re faced with.’[1]

[1] http://www.propertywire.com/news/europe/uk-homes-supply-crisis-2016010411388.html