Written By Em

Em

Em Morley

George Osborne Pledges Housing Fund

Published On: November 25, 2015 at 1:11 pm

Author:

Categories: Finance News

Tags: ,,,,,

During the Autumn Statement and Spending Review today, Chancellor George Osborne is pledging a huge new fund for housing.

George Osborne Pledges Housing Fund

George Osborne Pledges Housing Fund

The Autumn Statement details Government spending plans for up to 2020, including billions of pounds in cuts.

Alongside £20 billion in cuts to Whitehall budgets and £12 billion in welfare cuts, Osborne is promising around £7 billion for house building, in a bid to build over 400,000 affordable homes in England.

The combined Autumn Statement and Spending Review has been under way since 12:30pm today. It sets out departmental spending limits for the next five years and gives details of the Government’s taxation and deficit reduction plans.

Osborne is addresses the “crisis of homeownership in our country”, pledging a “bold plan to back families who aspire to buy their own home”1.

The Treasury announced that Osborne would reveal “the biggest affordable house building programme since the 1970s”1.

This will include:

  • £2.3 billion for developers to build starter homes for first time buyers, who will receive a 20% discount on properties worth up to £450,000 in London and £250,000 elsewhere.
  • £4 billion to build 135,000 Help to Buy: Shared Ownership homes for households earning under £80,000, or £90,000 in the capital.
  • £200m for 10,000 new homes for tenants to live in for five years at reduced rents while they save for a deposit. They will then be given the first right to buy the home.
  • £400m for 8,000 specialist homes for the elderly or those with disabilities.

The Executive Chairman of the Home Builders Federation (HBF), Stewart Baseley, reports that recent attempts to fuel housing supply are beginning to take effect and the latest house building statistics for England are “very encouraging”1.

However, Labour claims that the Conservatives’ house building record since 2010 has been a “failure on every front”1, with homeownership at the lowest level in a generation and a halving in the amount of affordable homes to buy.

The Shadow Housing Minister, John Healey, says: “If hot air built homes, then Conservative ministers would have our housing crisis sorted.

“A matter of weeks ago, the Housing Minister promised a million more homes, now George Osborne is saying they’ll build 400,000 more. Rather than rate them on what they say they will do, people will judge them on what they’ve actually done.”1

1 http://www.bbc.co.uk/news/uk-politics-34915218

 

 

Chancellor set to pledge cash for new homes

Published On: November 25, 2015 at 11:35 am

Author:

Categories: Finance News

Tags: ,,,,

The Chancellor is set to unveil the government’s spending plans up to 2020 later, which is likely to include billions of pounds worth of cuts. However, there is likely to be good news for housebuilding projects.

Mr Osborne is due to pledge nearly £7bn in order to make housebuilding a priority, with in excess of 400,000 affordable homes to be built in England.

Announcement

This afternoon’s combined Autumn Statement and Spending Review is sure to be of interest to all connected with the property market.

Osborne has promised to address what he calls, ‘a crisis of home ownership in our country,’ giving support to a, ‘bold plan to back families who aspire to buy their own home.’[1]

The Treasury has described the proposals as, ‘the biggest affordable housebuilding programme since the 1970’s.

This is set to include:

  • £2.3bn paid straight to developers to build starter homes, aimed at first-time buyers. These purchasers will get a 20% discount on prices up to £450,000 in London and £250,000 elsewhere in England
  • £4bn to assist in building 135,000 ‘Help to Buy: Shared Ownership homes for households earning up to £80,000, or £90,000 in London
  • £200m for 10,000 new properties that tenants can live in for up to five years while they save for a deposit. After this period, they will get first-right to buy the home
  • £400m to fund 8,000 specialist homes for elderly people or those with disabilities
Chancellor set to pledge cash for new homes

Chancellor set to pledge cash for new homes

Encouraging

Stewart Baseley, executive chairman of the Home Builders Federation, noted that attempts to improve supply in the market were beginning to come to fruition. He said that recent housebuilding statistics were, ‘very encouraging.’

Unsurprisingly, Labour do not agree, brandishing the Conservatives’ record as a,’ failure on every front, pointing to the fact that home ownership is at its lowest level for a generation.

‘If hot air built homes, then Conservative ministers would have our housing crisis sorted, ‘quipped shadow housing minister John Healey. ‘A matter of weeks ago, the housing minister promised a million more homes, now George Osborne is saying they’ll build 400,000 more. Rather than rate them on what they say they will do, people will judge them on what they’ve actually done,’ he continued.[1]

[1] http://www.bbc.co.uk/news/uk-politics-34915218

 

 

 

Rents in UK just 3.5% up on 2008

Published On: November 25, 2015 at 10:16 am

Author:

Categories: Property News

Tags: ,,,

New figures from 211-office agency Belvoir indicates that average rents in the UK are better than before the pre-economic downturn in 2008, but only by a small amount.

The rental index from Belvoir is recorded and produced by property expert Kate Faulkner.

Trends

Belvoir’s index, ‘looks at national and regional trends,’ explains Dorian Gonsalves, director of commercial and franchising at the company. ‘The Q3 2015 index shows that almost six years post-recession, average rents in England, Scotland and Wales exceeded the Q3 2008-but only by 3.5%.[1]

‘A total of 14 Belvoir offices in counties that include Lancashire, Norfolk and Devon have yet to recover to levels reached in 2008. Clearly, the market is far from spiralling out of control in terms of rental increases, although this has repeatedly been suggested in media reports throughout the year. It is very clear that a shortage of good quality accommodation is strongly impacting on the market and the ability of agents to meet tenant demand,’ she continued.[1]

Rents in UK just 3.5% up on 2008

Rents in UK just 3.5% up on 2008

Shortage

A major factor determining the performance is the shortage of good quality rental accommodation to satisfy demand. Belvoir said that 14 of its offices in counties such as Lancashire, Norfolk and Devon have yet to reach levels seen in 2008.

These figures are backed up by another report from the Association of Residential Letting Agents (ARLA), which shows that just 25% of agents reported rent increases for tenants in October.

‘Fewer agents reporting rent increases should bring some relief to tenants before Christmas,’ noted David Cox, managing director of ARLA. ‘Although it’s trypical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we expect to pick up again in January.’[2]

‘Looking ahead to next year, we’d hope to see the number of tenants experiencing rent hikes remain low with supply and demand leveling out,’ he added.[2]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/average-rents-in-britain-only-3-5-higher-than-in-late-2008

[2] http://www.home.co.uk/guides/news/story.htm?low_rental_supply_pushes_up_prices

 

More Landlords Fined Over HMO Breaches

Published On: November 25, 2015 at 9:59 am

Author:

Categories: Landlord News

Tags: ,,,

A couple has been found guilty of 26 offences regarding a rental property. They have been ordered to pay £26,822.

More Landlords Fined Over HMO Breaches

More Landlords Fined Over HMO Breaches

Dr. Kola Akindele and his wife Vanessa were prosecuted by Boston Borough Council at Skegness Magistrates’ Court.

They had denied all charges, but presiding magistrate Kevin Moody stated that he did not believe the reasons Mrs Akindele gave for how the property came to be in such a poor condition.

Mrs Akindele blamed the flood of December 2013 for the rental property’s state.

Magistrates were told that the property was operated as a House in Multiple Occupation (HMO), but it was not licensed and did not have fire detection equipment fitted.

Additionally, there were problems with water penetration through a flat roof, damp and hazardous electrical systems.

Moody said that the fines reflect what could have happened at the property; serious injury or even death of tenants.

Dr. Akindele did not give any evidence.

In a separate case, a landlord was fined £7,300 over safety breaches.

Sheffield City Council brought the case against John Cashin for offences relating to four properties.

The landlord pleaded guilty to charges regarding safety breaches and for failure to license two of the properties as HMOs.

It is believed that he manages 28 properties and is described as a professional property manager.

Follow our advice for landlords to avoid being caught out by the law.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Majority of Letting Agents Could be Breaching Law on Fees

Published On: November 24, 2015 at 4:04 pm

Author:

Categories: Property News

Tags: ,,,

Last month, members of the Home Sweet Home group went undercover in Brighton and Hove to examine letting agents’ compliance of consumer rights law. Their findings are shocking.

Majority of Letting Agents Could be Breaching Law on Fees

Majority of Letting Agents Could be Breaching Law on Fees

The team of local campaigners found that 80% of letting agents are potentially in breach of consumer rights laws.

Home Sweet Home visited 67 letting agents, finding that 55 offices may not be complying with the Consumer Rights Act 2015, which was enforced on 1st October.

Agents that do not comply with the new rules could face council action and a fine of £5,000.

The group assessed the agents on their membership of Government-approved deposit protection and dispute resolution schemes, and checked the offices for a prominent display of the fees they charge.

Of the 67 offices inspected, just 12 appeared to be compliant with all three. The biggest failure regarded fees, with only 15 displaying a full list of fees in a place that it is likely to be seen.

With so many agents apparently in breach of the regulations, Home Sweet Home plans to contact the branches by letter, stating the changes to the law and recommending best practice regarding the display of fees.

The letters will be hand-delivered alongside Home Sweet Home certificates for the 12 agents that passed all three criteria.

Campaign Leader of Home Sweet Home, Summer Dean, says: “Our aim is to uphold the letting agents’ legal obligation to provide transparency to tenants regarding the often hidden fees they have to pay. Our longer term goal is to create a more open and accountable renting culture in Brighton and Hove, so that people can start to see rising standards here.”1

The group is made up of local councillors, Labour Party members and renters hoping to raise the profile of private tenants in Brighton and Hove. It is supported by the broader organisation Movement for Change, which gives local leaders the power to campaign on issues important to their communities.

Representatives from student unions have also been part of the campaign and are working to create a comparison table of the fees charged by the agents in question.

Lead Councillor for Private Rented Sector Housing at Brighton & Hove City Council, Tracey Hill, comments: “The Citizens Advice Bureau reports that housing is the second biggest issue they deal with, especially regarding the private rented sector, which is growing as fewer people can afford to get onto the housing ladder.

“Poor living standards, rising rents and housing scarcity leave private tenants extremely vulnerable to the housing market.”1

Home Sweet Home hopes to make a difference to the nine million private tenants in England, many living in the one-third of private rental homes that do not meet the Decent Homes Standard. Part of this involves the fair treatment of tenants and landlords by letting agents.

1 http://brightonandhoveindependent.co.uk/undercover-survey-of-letting-agent-fees-in-brighton-and-hove/

‘Harry Potter’ room to rent in Manchester

Published On: November 24, 2015 at 2:00 pm

Author:

Categories: Property News

Tags: ,,,

Tenants are being invited to live like Harry Potter by applying to live in a tiny room in Gorton, Manchester.

The room, advertised on house share website SpareRoom.com, is tucked away underneath the stairs and is available to rent for £380 per calendar month.

Home ‘comforts’

Would-be tenants will find a bed in the cramped space, with a shelf area to store personal belongings. Hardly magic by any standards!

Alongside a wardrobe (of sorts), the potential lodger gets access to a shared living room, bathroom and broadband, as well as a kitchen and garden.

Should anyone be interested in renting the ‘room,’ they will be sharing with two women, aged 40 and 41, with interests in music and gaming.

On the plus side, the £380 does include bills…

'Harry Potter' room to rent in Manchesterhttp://www.manchestereveningnews.co.uk/news/greater-manchester-news/gorton-harry-potter-spare-room-10490905

‘Harry Potter’ room to rent in Manchester.http://www.manchestereveningnews.co.uk/news/greater-manchester-news/gorton-harry-potter-spare-room-10490905

Descriptions

A description of the property on the SpareRoom website reads, ‘we have a spare room in our home in Gorton. Very close to Ryder Brown train station and a five minute walk, through Sunny Brow Park, to Hyde Road, buses into Manchester and Tescos. Ten minute walk to Debdale Park and a short drive to M60.’[1]

To put the room into perspective, a room with a double bed to rent in the same area would cost tenants just £320 per month. In addition, homehunters could rent out a studio flat overlooking Debdale Park for £385 a month.

A spokesman for SpareRoom said,’ we have taken down ads in the past from people trying to advertise Harry Potter style spaces under the stairs, but it looks like this one’s a whole room, just that the bed is built into an alcove to make best use of the space. We are contacting the advertiser though to check and will remove the ad if necessary.’[1]

Tenants might want to use their magic wand to create a bit more room!

[1] http://www.manchestereveningnews.co.uk/news/greater-manchester-news/gorton-harry-potter-spare-room-10490905