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Em Morley

700,000 Rental Homes Have Category 1 Hazards

Published On: December 16, 2015 at 4:08 pm

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Tenants living in private rental sector homes are living in unsafe properties that do not meet basic legal standards, according to a report from Citizens Advice.

700,000 Rental Homes Have Category 1 Hazards

700,000 Rental Homes Have Category 1 Hazards

The charity found that landlords are making billions of pounds from 700,000 private rental homes in England that have a category 1 hazard – the most dangerous issues – including rat infestations, unsafe electrics, cold and damp.

The Paying a High Price for a Faulty Product report suggests that 30% of households living in unsafe rental properties have an annual income of over £30,000, while 18% earn more than £40,000 per year.

Citizens Advice states that private tenants must be given protections that exist in other consumer areas. It has been campaigning for renters living in dangerous accommodation to have the right to refunds of rent.

It is pleased to see that this has been included in the Housing Bill that is currently going through Parliament, but it hopes that tenants will not have to pay court fees to pursue this.

Although private rental housing costs the most out of the tenures it studied, this sector is most likely to have a category 1 hazard, at 17%, compared to 12% of owner-occupied homes and 6% of social rental properties.

Citizens Advice’s report, compiled with the New Policy Institute, also found:

  • Over 100,000 households pay more than £900 a month to live in an unsafe rental property.
  • The average monthly rent for a dangerous private rental home is £650, not much less than the average rent price of £720 for a property that meets minimum standards.
  • Private tenants in England spend £4.2 billion per year to live in hazardous homes that do not meet legal standards.
  • Half a million children live in unsafe rental homes.

Chief Executive of Citizens Advice, Gillian Guy, states: “Rogue landlords are forcing private tenants into a living nightmare.

“The private rented sector is the most expensive housing tenure but is in the worst state – consumers are paying top dollar to stay in dire homes that can threaten their lives and risk their health.”

She continues: “For too long, the private rented sector has been seen as a side issue in the British housing crisis debate. This is utterly wrong, as the astronomical cost of buying property means increasing numbers of people and families are moving into private tenancies.

“It is good the Housing Bill includes plans to give tenants the rights to rent refunds when their homes are unsafe, but it’s imperative renters don’t have to stump up court fees to seek this justice.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/rogue-landlords-forcing-tenants-into-a-living-nightmare

 

 

Homes Near the Best Christmas Markets

Published On: December 16, 2015 at 3:55 pm

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One of the best ways to get into the festive spirit is a trip to one of the UK’s many Christmas markets. Even better, imagine having one of these merry delights on your doorstep!

Here, we take a look at some properties currently for sale near some of the country’s best Christmas fairs.

London 

The Southbank’s Winter Market runs from 20th November to 24th December this year. Set along the picturesque riverbank of the Thames, its wooden chalets are full of Christmas food, drinks and gifts.

Valentine Place in SE1 is just a short walk from the market. Choose from one, two and three-bedroom apartments or mews houses in this brand new development, set around a former bakery. Prices start at £735,000, with

Homes Near the Best Christmas Markets

Homes Near the Best Christmas Markets

more details at Crest Nicholson: https://www.crestnicholson.com/valentineplace/

Lincoln

Lincoln’s Christmas Market began in 1982, making it the oldest of this type of winter fair in the UK. It has grown from hosting just 11 stalls to 250 traders this year. The market can be found on the cobbled square between the cathedral and the castle.

The Quays on Burton Waters is a modern, three-bedroom family house close to the cathedral. Wrap up warm and head over to the market with your family and friends. The mews house is on the market for £435,000 through Mundys: http://mundys.net/properties/the-quays-burton-waters-lincoln-ln1/

Exeter

Last year, the Christmas market on Exeter’s cathedral green won the National Association of British Market Authorities’ best specialities award. It offers unique, handmade gifts and decorations, alongside wintery foods.

If you’d like to bring some Victoriana Christmas spirit home, why not look at this old-meets-new, two-bedroom cottage? The quirky property would make any festive season truly special. It is up for sale at £210,000 by Your Move: https://www.your-move.co.uk/property/house-for-sale-st-andrews-road-exeter-ex4-id-528445169/search

Birmingham

Birmingham is home to the UK’s largest Christmas market and has been transforming the city at this time of year for a decade. The fair celebrates all things local, with musicians and schools participating to create a community feel.

No.10 Clement Street is a unique development of six large, contemporary apartments within an original Victorian redbrick building. Spread the festive spirit by inviting friends and family to your new pad. A two-bedroom apartment is £395,000 through Wolf’s: http://www.wolfs.co.uk/property/details/1225/10-clement-street

Krakow, Poland 

Do you fancy a visit to an overseas Christmas market? Or maybe you’d like to move there! The ancient market square of Krakow becomes a winter wonderland at this time of year – enjoy some traditional Polish treats by heading out before the fair ends (sometimes it can last until January 6th, the Epiphany).

This two-bedroom apartment is within the Old Town, where the market is held. With exposed beams and plenty of light, this home makes the perfect Polish property purchase for anyone venturing abroad. It is on the market for £92,786 through Hamilton May: http://www.property-krakow.com/Sale-Apartment-Dluga-Stare-Miasto-62m2,5910.html

How have property prices changed throughout Star Wars franchise?

Published On: December 16, 2015 at 3:51 pm

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Unless you have been living in a galaxy far, far away, you will know that this week marks the release date of the new Star Wars film.

To celebrate the occasion, the Halifax has looked at how property prices have performed since the first film made the big screen in 1977.

Revenue

Since A New Hope was released, Star Wars has generated gross box office revenues of $4.4bn. However, this is dwarfed by when compared to the increase in value of privately owned British housing stock.

The first movie of the franchise was released in May of 1977, where housing stock stood at £194.4bn. In the present day, this value has increased at the speed of the Millennium Falcon to £5.1 trillion, representing a change of 2519%.

Home purchasers in the UK in 1977 faced average property prices of £13,650-which is less than the average price of a car in today’s market! The latest Halifax House Price Index puts average prices at £204,552, equating to an increase of 1,399%.

Those buying homes in Britain in 1980, the year of the next Star Wars release, would have seen values up by 767%. In 1983, homebuyers would have seen prices rise by another 566%.

How have property prices changed throughout Star Wars franchise?

How have property prices changed throughout Star Wars franchise?

Attack of the Homes!

It took 16 long years from then for The Phantom Menace to hit our screens in 1999, where prices had risen to 75,844, an increase of 170%. Attack of the Clones came shortly after in 2002, where a further 93% in value had been recorded. Finally, between the Attack of the Sith in 2005 and the present day, prices have risen by a more mediated 26%.

The table below highlights how much property prices have changed by year of Star Wars film release:

House Price £ % Changes to Nov 2015***
1977 May (Annual)** 13,650 1399%
1980 May (Annual)** 23,596 767%
1983 May (+Q2) 30,725 566%
1999 May (+Q2) 75,844 170%
2002 May (+Q2) 106,195 93%
2005 May (+Q2) 162,783 26%

[1]

‘For Star Wars fans the promise of new trilogy means the circle is now complete,’ noted Craig McKinlay, Mortgages Director at the Halifax. ‘Box office receipts are likely to cement the franchise’s place as one of the most successful series of all time. However, it’s no Jedi mind trick to say even the returns here have been dwarfed by increases in the value of UK housing stock.’[1]

[1] http://www.propertyreporter.co.uk/hero/the-force-has-been-strong-for-uk-house-prices.html

 

 

Property Developer Given Record Fine After Building Flats Without Planning Permission

Published On: December 16, 2015 at 1:26 pm

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A property developer has been handed a record-breaking fine after building a six-storey block of flats without planning permission.

Yusuf Sarodia has been battling Hackney Council over the multi-million pound matter since 2011.

Sarodia, 62, has continually refused the authority’s request to demolish the tower. He has now been hit with a £735,000 fee to pay and has still not knocked the building down.

The entrepreneur is the director of Garland Development and managed the construction of the 34-flat premises in Hoxton, east London.

Each flat is estimated to be worth £300,000, meaning that the whole building could be valued at over £10m – it is therefore no surprise that Sarodia does not want to tear it down.

In August, Hackney Council ordered Sarodia and his firm to pay a confiscation order of £700,000, plus over £25,000 in costs. However, he did not act and now, the block of flats is still there. It is currently empty.

Sarodia and his company were then taken to Snaresbrook Crown Court and fined a further £10,000.

Hackney Council’s Andrew Woollard comments: “The planning service has never seen this amount of confiscation before. We think it is a record figure.”

He states that Sarodia did not gain approval from the relevant authority to build the flats.

He adds: “We told him to demolish it, which he did not do, hence why the action was taken. The confiscation order of £700,000 is a reflection of all the rent he’s got since he built it. He would have been fined a lot more if it wasn’t for the order already in place.”1

Sarodia claims to have been victimised by the council, but has agreed to pay the fine “next month”.

He says: “I am a simple person, I don’t use outside builders, I do it myself. Everybody makes mistakes. But we have not done any drugs here or had prostitutes in here.

“I have not done anything wrong, I have given the residents a good sized bathroom and good sized bedroom. Nobody’s saying it’s a bad building, I don’t know what the problem is here. When I built the site, in the beginning I did as what was on the plan, but I put in a few extra windows.”1 

However, the council insists that it will take further enforcement action if the building isn’t demolished.

Councillor Guy Nicholson, Cabinet Member for Regeneration at Hackney Council, states: “Anyone who thinks they have a right to build in Hackney without first obtaining planning permission must realise that the council will take action against those who flout the rules.

“Putting up a building without planning permission is not only breaching planning law but to be quite frank, puts at risk the safety of residents and neighbouring properties.”1

It is reported that money received from Sarodia’s fine will be used by the council to reinvest in local services.

The council will receive one third of the sum, with the remaining two-thirds split between the court and the Treasury.

1 http://www.independent.co.uk/news/uk/home-news/property-developer-handed-record-breaking-fine-for-hoxton-flats-built-without-planning-permission-a6773456.html

 

Bank of England wants action on BTL sector

Published On: December 16, 2015 at 12:29 pm

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In the wake of the Autumn Statement and the strongly opposed 3% stamp duty hike on buy-to-let homes announced for April 2016, the Bank of England has moved to express concern about the sector.

The Bank’s Governor, Mark Carney, said he was worried about high levels of lending to landlords and that the Bank was looking to intervene.

Watching

‘There are a number of things happening…we are watching it closely and we will take action,’ Carney told the Financial Times. He went on to say that he was worried that investors could sell their properties at the same time if house prices were to fall.

This is not the first time the Bank has expressed concern over the buy-to-let market. In September, the Bank’s Financial Policy Committee made a warning over the sector. The committee is headed by Mr Carney and said that the expanding market posed a real threat to the UK’s financial stability. The Bank warned, ‘the stock of buy-to-let lending might be disproportionately vulnerable to very large falls in house prices.’[1]

Surge

Higher rates of stamp duty tax come into force at the beginning of the next financial year in April. As a result, there are concerns a buy-to-let rush could materialise with landlords seeking to invest before the changes. This could in turn push property prices up even further.

At present, there are 1.7m buy-to-let mortgages, accounting for around 16% of the value of all outstanding mortgages in total. Every year, in excess of two million individual landlords declare their rental income to HMRC.

Earlier in 2015, Mr Carney said that the Bank was in discussions with Mr Osborne regarding the chance of gaining more powers to regulate the buy-to-let mortgage market.

In addition, the Governor used the Financial Times interview to defend himself over interest rates. On a number of occasions over the last two years, Carney has suggested that the base rate of 0.5% would rise. However, with inflation remaining below the target of 2%, the Monetary Committee has been forced to delay.

Bank of England wants action on BTL sector

Bank of England wants action on BTL sector

No warning

Moving to defend himself, Carney said, ‘did I know that oil was going to fall 12% in the last 10 days? No, I didn’t know that.’ He added that there was no, ’12 months heads-up’ from the Chinese over the devaluation of the yaun. However, Carney insisted that he will, ‘continue to try to frame as accurately as possible what’s guiding my deciding process.’[1]

The UK’s inflation rate turned positive in November for the first time in four months. Despite the US Federal Reserve being expected to raise rates for the first time in ten years, Carney says that Bank of England is in no hurry to follow.

Interest rates have remained constant for the past six and a half years in Britain. An annual survey of finances found that nearly a third of households would have to cut spending, work more or make alterations to their mortgage payments, should rates rise by 2% with no increase in wages.

In conclusion, the Bank’s research found that the Government’s austerity programme, ‘has weighed on household spending and is likely to continue to do so.’[1]

[1] http://www.bbc.co.uk/news/business-35108952

 

 

Landlord concern over short-term prospects grows

Published On: December 16, 2015 at 11:07 am

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The buy-to-let sector continues to grow, with tenant demand remaining consistently strong.

However, a new survey has indicated that some landlords are concerned about their short-term prospects.

High demand, low confidence

BM Solutions’ buy to let quarterly index indicates that 41% of landlords reported an increase in tenant demand during the last quarter, but that confidence has fallen dramatically.

Tenant demand was highest in the East of England, with 52% of landlords reporting a rise in tenant demand over the last three months. The largest quarterly increase was recorded in the East Midlands, where demand was up by 12%.

At the lower end of the scale, the South West and North East saw the greatest drop in landlords noting increased demand over the last quarter.

By region, tenant demand altered in the last three months as followed:

Property location Tenant demand in Q2 2015 (Net increase) Tenant demand in Q3 2015 (Net increase) Quarterly change (% point change)
East of England 48% 52% 4%
London (Outer) 40% 48% 8%
South East 41% 47% 6%
East Midlands 35% 47% 12%
London Central*** 35% 45% 10%
Yorks & Humber 35% 39% 4%
West Midlands 37% 38% 1%
Wales 36% 38% 2%
South West 45% 37% -8%
North West 27% 34% 7%
Scotland 30% 33% 3%
North East 39% 31% -8%

[1]

Outlook

The report revealed that confidence in the UK’s financial market has dipped, with 25% confident about the outlook for the next quarter, as opposed to 37% in quarter two of this year. Landlords also reported a fall in confidence in the private rental sector as a whole, with 34% saying they were positive about the sector, as opposed to 59% in Q2 of 2015.

61% of landlords said that they intend to live off the rental income generated by their portfolio when they eventually retire. A further 36% said they would make a decision based on market trends at the time.

Landlord concern over short-term prospects grows

Landlord concern over short-term prospects grows

Void periods recorded also increased during the last quarter, with 35% of landlords experiencing this in Q3, as opposed to 29% in the previous two quarters. In addition, the average rental yield achieved dropped to its lowest level for five years, falling to 5.6%.

By region, landlords in Yorkshire and the Humber and Wales saw the highest rental yield of 6.1%. Those letting in Scotland and Outer London saw the lowest, with 5.1% and 4.8% respectively.

Average rental yields per region were over the last quarter were:

Property location %
Yorkshire & the Humber 6.1
Wales 6.1
North West 5.9
East Midlands 5.8
West Midlands 5.7
North East 5.6
East of England 5.6
South West 5.5
South East (excl. London) 5.4
London (central) 5.2
Scotland 5.1
London (outer) 4.8

[1]

Spotlight

Phil Rickards, Head of BM Solutions noted, ‘there has clearly been a spotlight shining on the Buy-to-Let market and Private Rental Sector for most of 2015. Landlord confidence in the outlooks for the private rental sector as a whole and landlord’s own lettings businesses have seen statistically significant declines when benchmarked against Q3 2014.’[1]

‘However, the market is still holding up and at the same time four in 10 landlords report demand has increased in the areas where they hold properties during the last quarter and yields remain strong. There’s no doubting 2016 looks like a challenging year ahead however I take comfort in the fact there’s still a need for a strong private rental sector along with good quality housing to support demand,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/landlord-confidence-dr0ps.html