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Em Morley

Cleaning still top dispute at check-out

Published On: December 1, 2015 at 12:12 pm

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Categories: Landlord News

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Landlords and agents are being faced with more dirty properties at the check-out stage of tenancy agreements, according to a new report.

Research from Imfuna Let reveals that cleaning is still top of the list of dispute cases at the conclusion of a tenancy period, now accounting for 58% of all tenant disputes.

Dirt

In fact, cleaning disputes were up 5% year on year. Next came property damage, which amounted to 52% of all disputes, followed by redecoration (32%), gardening (17%) and rent arrears (10%).

Additionally, the average cleaning claim was found to be the second lowest in value, behind those for gardening issues. At the top of this list came rent arrears, amounting to an average value of £1,164, followed by property damage (£475), redecoration (£449), cleaning (£220) and gardening (£195).

Cleaning still top dispute at check-out

Cleaning still top dispute at check-out

Jax Kneppers, Founder and CEO of Imfuna Let, observed,’ many tenants claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear what was expected of them.’ She continued by saying, ‘if agents and landlords wish to make deductions for cleaning costs, they need to be careful to record the cleanliness of the property in sufficient detail, at the start and easy of the tenancy. They will also need to ensure any charges they claim are a fair reflection of the property’s condition at the start of the tenancy.’[1]

[1] http://www.propertyreporter.co.uk/landlords/cleaning-remains-the-number-one-dispute.html

 

 

Mortgage Lending Up 17% Over the Year

Published On: December 1, 2015 at 10:00 am

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Categories: Finance News

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The amount of mortgage approvals increased to 69,630 in October, up slightly from 69,012 in September, according to the Bank of England (BoE).

October’s number is also higher than the 68,099 average recorded over the past six months.

Mortgage Lending Up 17% Over the Year

Mortgage Lending Up 17% Over the Year

The value of new mortgage approvals reached £12.2 billion. Analysts had predicted 70,000 mortgage approvals for October, but the slightly lower figure was still 17.2% up on October 2014, from 59,423.

Chief Economist at IHS Global Insight, Howard Archer, says mortgage values are rising as house prices continue to increase.

He continues: “While housing market activity has clearly picked up appreciably overall during 2015, the slight easing back in mortgage approvals for house purchases from August’s peak levels could possibly reflect housing market activity being constrained by a shortage of properties on the market.

“It is also evident that mortgage activity has been lifted in recent months by people looking to tie in attractive mortgage interest rates before interest rates start to rise.”1

The amount of remortgaging approvals dropped to 39,629, from around 41,000 in September. However, October’s figure still sits ahead of the six-month average of 38,430.

Total lending to individuals grew by £4.8 billion in October, higher than the average monthly increase of £4.1 billion for the last six months.

CEO of Marsh & Parsons, Peter Rollings, comments on the BoE’s data: “Lending has rebounded after September’s downward blip and mortgage approvals have leaped an impressive 17% year-on-year.

“All the vitals are looking strong, and remortgaging and locking into long-term deals will still very much be the name of the game for many existing homeowners awaiting potential interest rate movement in 2016.

“These figures only look at October, and George Osborne’s package of housing announcements in the Autumn Statement last week will have keyed up a new wave of first time buyers eager to get their foot in the door.

“We may also see a winter flurry of buy-to-let borrowing before April’s Stamp Duty shake-up, as landlords seek to invest before the additional charge is levied on second homes.

“The big question as we enter the New Year is whether the supply of homes will match the increasing demand that’s clearly evident in the mortgage market.”2

In a separate study, the National Association of Estate Agents (NAEA) found that house sales to first time buyers accounted for 31% of sales in October, the highest proportion since August 2009.

It also reported that inventory increased by 16% month-on-month, up from 37 properties per branch to 43. However, it said that demand fell for the fourth consecutive month.

The NAEA revealed that there was an average of nine sales per estate agent branch in October.

1 http://www.cityam.com/229859/mortgage-lending-rose-in-october-according-to-the-latest-bank-of-england-credit-report 

2 http://www.propertyindustryeye.com/mortgage-approvals-for-house-purchase-up-17-in-a-year-says-bank/

 

What Landlords Must Do to Prevent Legionella

Published On: November 30, 2015 at 5:22 pm

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Categories: Landlord News,Law News

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Over a year and a half ago, the Health & Safety Executive (HSE) made its guidelines for prevention of Legionella a legal requirement. But are all landlords aware of their responsibilities?

In April 2014, it became the law for all landlords to conduct regular risk assessments for each of their tenanted properties, whether they manage it themselves or use a letting agent.

Failure to comply with the law is a criminal offence, which could end in a fine or prison sentence.

The Technical Director at Compliance For Landlords Limited, James Homard, explains exactly what Legionella is: “Legionella, or Legionnaires’ disease, is a potentially fatal form of pneumonia caused by inhalation of minute droplets of contaminated water containing Legionella bacteria.”

So how does the bacteria get into the water? “All man-made hot and cold water systems are likely at some point to provide a favourable environment where Legionella can grow,” says Homard. “The organism can colonise large and small water systems so both must be managed effectively to prevent risk of contraction by humans.”

What Landlords Must Do to Prevent Legionella

What Landlords Must Do to Prevent Legionella

All landlords, including local authorities, housing associations and private rental sector landlords, have a duty of care to their tenants. This includes ensuring the health and safety of the renter.

The HSE L8 Approved Code of Practice (ACoP) was revised in November 2013 to include the control of Legionella bacteria. It applies to premises operated in connection with a trade, business or other undertaking where water is used or stored and there is “a reasonably foreseeable risk of exposure to Legionella bacteria”.

Landlords must organise an assessment by a competent person that is experienced in identifying the risk of Legionella.

Homard says: “It may show that there are no real risks and that water flow is being properly managed with no further action needed, however it is important to review the assessment in case anything changes in the water system. For most domestic hot and cold water systems, temperature is the most reliable way of ensuring the risk of exposure to Legionella bacteria is minimised, by keeping the hot water hot, cold water cold and keeping it moving.”

Landlords could also: flush the system before the property is let; prevent debris entering the system; set temperate controls for the hot water cylinder (calorifier) to make sure water is stored at a suitable temperature; and ensure that any redundant pipe work that could harbour stagnant water is removed.

The risk is also reduced by instantaneous water heaters, such as combi boilers and electric showers, as there is no water storage.

Landlords must be able to provide “documented evidence of a competent risk assessment having been undertaken on your property at least once every two years”.

Homard explains: “The document takes the form of a detailed written report on the conditions at the time of inspection together with a schematic drawing of the water system and any remedial actions that are needed to reduce the risk of Legionella presence.”

So what should you tell your tenant? “Tenants should be advised of any control measures put in place that should be maintained, for example, not to adjust the temperature setting of the calorifier and to clean showerheads regularly,” Homard responds. “They also need to inform the landlord if the hot water is not heating properly or if there are any other problems with the system so that appropriate action can be taken.”

And if your property is not tenanted? “It is important that water is not allowed to stagnate within the water system and, as a general principle, outlets on hot and cold water systems should be flushed for 15 minutes at least once a week to maintain a degree of water flow and minimise the changes of stagnation,” he continues.

But landlords do not need to test or sample water for Legionella; this is only required in “very specific circumstances where a risk assessment has indicated the need”.

Homard confirms: “Testing for Legionella should not be confused with temperature monitoring, which is a reliable method for confirming the water system is safe. Health and safety law does not require landlords to obtain or produce – nor does HSE recognise – a Legionella test certificate.”

And while landlords are not required to record the findings of an assessment, it is advised that they keep a record.

An assessment must be conducted at least once every two years, but Homard also suggests “reviewing the assessment if any relevant changes are made to the property which affect the water system”.

The HSE or local authority inspectors will not inspect properties or request evidence that landlords have undertaken an assessment, however, if a tenant did contract Legionella from the water system at the property, the landlord may be liable to prosecution under the Health & Safety at Work Act (HSWA) and must prove to the court that they have fulfilled their legal responsibility.

Homard suggests: “To ensure you are fully compliant with the law and your tenants are safe, book a professional Legionella Control Association (LCA) registered provider to carry out a water risk assessment.”1

1 Homard, J. (2015) ‘Landlords and Legionella – complying with the law’, Housing Management & Maintenance, November, p.56-57

What Does a Landlord Really Want for Christmas?

Published On: November 30, 2015 at 4:39 pm

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Categories: Landlord News

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What Does a Landlord Really Want for Christmas?

What Does a Landlord Really Want for Christmas?

You still have time to get some Christmas shopping done and wrapped before the last-minute shoppers flood the high street and make buying for your loved ones an exhausting and stressful experience. But what if you have a landlord to buy for?

Here at Landlord News, we’ve had a good think about what a landlord could possibly want for Christmas, and this gift guide should help you cross them off your list in no time.

Compact, light and easy to use, a tablet is a landlord’s best friend. If your partner or son/daughter is a landlord, why not help them stay organised and keep on track with their very own tablet? Landlords must always be able to respond to emails, check their calendar, make notes and of course, browse LandlordNews.co.uk for all of the latest landlord updates. With a range of products on the market, you’ll be sure to find a tablet that suits your loved one. Why not take a look at the new iPad Pro from Apple?

And while on the subject of tech, it is always a good idea for a landlord to have a good quality digital camera to hand. Whether they’re selling a property or compiling an inventory, taking high quality photographs is paramount. And of course, cameras make great personal presents to capture lovely family moments too. Techradar.com has a list of the top ten digital cameras you can buy this year.

If you haven’t got quite so much to spend, or you’re buying for a friend that’s a landlord, there are much less glamorous (but equally practical) items that you can find. For example, we all know that landlords have lots of keys – why not treat them to this secure key cabinet from IronMongeryDirect? With 36 hooks, coloured key tags and a safe combination lock, your landlord will stay organised and start the New Year with everything in check.

If you’ve got to buy for a landlord, don’t panic and make sure they have a smile on their face on Christmas morning with one of these handy gifts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buy-to-Let Stamp Duty Announcement Hides Immigration Issues

Published On: November 30, 2015 at 2:05 pm

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Letting agent Martin & Co has spoken out to instil confidence in the property industry after a shocking announcement during last week’s Autumn Statement.

On Wednesday, Chancellor George Osborne revealed that buy-to-let investors would soon pay an extra 3% Stamp Duty on property purchases. Read more here: /btl-homes-hit-with-increased-stamp-duty/

Buy-to-Let Stamp Duty Announcement Hides Immigration Issues

Buy-to-Let Stamp Duty Announcement Hides Immigration Issues

However, Osborne claimed that the extra charges would not hit larger rental firms, such as investors in the build-to-rent sector.

The Association of Residential Letting Agents (ARLA) described the move as a catastrophe.

But Ian Wilson, the Chief Executive of the Property Franchise Group – the trading name of Martin & Co – says this reaction is “overblown”.

He also claims that the changes have helped hide bad news on immigration.

He says: “While admittedly an unwelcome move for letting agents, we believe current thoughts as to the severity have been greatly exaggerated.”

He adds that the Chancellor’s intervention in the industry was unexpected: “It comes at a time when the buy-to-let market is working extremely efficiently and we believe this move has been announced for political rather than economic reasons.

“Lending in this market is at record post-credit crisis levels, with over 1,000 buy-to-let mortgage products available, and about 20% of the population is now housed in the private rental market.

“The day after the Chancellor’s announcement, it was revealed that the Government had once again missed its target to reduce net migration into the UK and the latest figures were at a new high, with 336,000 people added to the UK population over the year.”

Wilson has found that all the factors supporting buy-to-let growth remain strong, including high net migration and affordability.

He believes that total returns from buy-to-let will continue to exceed other investments, including pensions, “and have the psychological and emotional advantage of being an easily understood, tangible asset”.

However, he says that the increase in Stamp Duty will affect how much investors are willing to pay for a property; “this will have a dampening effect on appreciating house prices in some sections of the market”.

He continues: “One may argue as a consequence, that buy-to-let purchasers could be outbid purchasers for owner-occupation, e.g. first time buyers.

“However, we believe buy-to-let purchasers will continue to be better placed to bid/complete on these properties, given that they typically have more cash to inject and less restrictive buy-to-let mortgage conditions, meaning that there is greater certainty of the sale completing.”

Wilson also states that a Stamp Duty rise is the “lesser of evils”.

He says: “Given the Government’s new-found desire to promote homeownership, we believe that higher transaction costs are significantly less severe than other potential regulatory levers, such as restrictions on buy-to-let lending or rent controls.

“In the short term, we would actually expect some benefit to the buy-to-let market, as we would expect prospective investors to bring forward purchases to before the April 2016 deadline for these changes.

“There is also the interesting possibility of tax engineering by creating corporate vehicles, such as Real Estate Investment Trusts, to own larger numbers of properties and escape both the extra Stamp Duty and the taper reductions in mortgage interest relief.”1

Will you be buying any more properties before the Stamp Duty changes are enforced?

1 http://www.propertyindustryeye.com/stamp-duty-shock-was-attempt-to-bury-bad-news-on-immigration-claim/

Stamp duty changes to cause ‘mayhem’

Published On: November 30, 2015 at 12:54 pm

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A leading broker-focused conveyancing distributor has issued a warning that the upcoming increases in stamp duty for Buy-to-Let homes and second properties could cause, ‘mayhem’ earlier in the new year.

Broker Conveyancing believes that rent hikes effective from April 1st will place enormous pressure on conveyancing firms to meet the deadline over the coming months.

Changes

Those looking to purchase second homes and buy-to-let investment properties will be hit with a 3% extra stamp duty land tax at the beginning of the new tax year. This will represent a considerable increase on the amount presently paid by those in the market.

The conveyancing distributor believes that the sector’s current resources may not stretch to the demands potentially about to be placed upon them. March next year coincides with the Easter break, which is usually a very busy time for the market.

In addition, Broker Conveyancing suggests that other conveyancing firms may start to charge additional premiums on buy-to-let purchases to deal with the added pressure and to discourage too much exposure to buy-to-let business.

Slowdown

What’s more, the firm anticipates a slowdown after 1st April, which would lead to more resource issues for firms to deal with.

Harpal Singh, Managing Director of Broker Conveyancing, said, ‘while I can partly understand why the Chancellor might wish to put the brakes on buy-to-let investment, the method of increasing stamp duty land tax for these purchasers will have a huge impact on the housing market as a whole and could result in a less than smooth process and quite frankly, mayhem.’[1]

Stamp duty changes to cause, 'mayhem'

Stamp duty changes to cause, ‘mayhem’

Singh believes that, ‘the four-month notice period is incredibly short and it is likely to mean a very busy time for all stakeholders, particularly the conveyancing profession who are going to be pushed by all concerned to try and complete purchases before the 31st March next year.’ He thinks, ‘this will mean serious resource issues for these firms, especially when we factor in the double whammy brought about by the timing of the Easter break next year and the fact we’re not just talking about individual investment property completions but also the entire chains that they will sit within.’[1]

Completion Issues

Mr Singh went on to say, ‘another conveyancing issue will be the ‘no completion, no fee’ deals currently on offer – if these buy-to-let and second home purchases do not complete then there is a greater likelihood of them falling through. It seems almost certain that buy-to-let conveyancing fees will rise in order to cope with this, the extra workload, and I wouldn’t be surprised to see some firms pulling back on their ‘no completion, no fee’ offers.’[1]

‘It will be apparent to all advisers that ensuring their buy-to-let clients deal with specialist conveyancing firms is an absolute necessity in order to have that chance of securing a pre-1st April completion. Finally, we have to consider the impact on the market after this deadline is passed – we are likely to see a considerable slowdown and conveyancing firms, along with many other stakeholders, could move from feast to famine. Resource and business issues will need to be managed carefully in such an environment,’ he concluded.[1)

[1] http://www.propertyreporter.co.uk/finance/stamp-duty-changes-to-cause-conveyancing-mayhem.html