Written By Em

Em

Em Morley

Are you ready for Right to Rent?

Published On: November 13, 2015 at 12:44 pm

Author:

Categories: Landlord News

Tags: ,,,

Last month, MP’s decided to back the controversial ‘Right to Rent’ legislation as part of the second reading of the Immigration Bill in Parliament. This means that the scheme is moving ever closer to being rolled out across the whole of England, following a prolonged trial period in the West Midlands.

Concerns

However, this trial has uncovered some serious issues for tenants and landlords alike. Research from the pilot scheme shows that some landlords were guilty of discriminating against some tenants purely on the basis of their background. Others were said to turn away some would-be tenants purely because they had a foreign accent.

An investigation conducted by The Joint Council for the Welfare of Immigrants of tenants and landlords in the trial area also found that some tenants were being charged an extra £100 in administration costs. What’s more, some landlords were found to be reluctant to offer viewings to potential tenants who would need more time to provide paperwork, suggesting many migrants could be turned down.

Tips

In light of these problems, buy-to-let landlords should follow these helpful tips in order to be confident and vigilant in conducting Right to Rent checks:

  • Establish who will be living in the property

Landlords should consider if the number of occupiers looking to rent is reasonable for the size, type and condition of the property. All enquiries and responses should be recorded

  • Source original versions of documentation

All agents and landlords should obtain original copies of documentation required that proves a potential tenants’ immigration status. These include passports, visas and national identity cards. Checks must be made up to 28 days before a tenancy agreement can be started.

  • Check in the presence of the holder

It is important that landlord conduct validity checks in the presence of the potential tenant(s). Landlords or agents must be sure that the documents belong to the person(s) in question and pay attention to information such as DOB’s, to ensure they are consistent throughout all documentation.

Are you ready for Right to Rent?

Are you ready for Right to Rent?

  • Make copies and date them

Documents should be copied and retain with the date that they were checked. Copies should be made in a manner in which they cannot be edited at a later date. These in turn should be securely retained, either electronically or by hard copy.

  • Conduct follow-up checks on time

These should be carried out in the same manner as initial checks. If someone is found to no longer have the Right to Rent, the owner does not need to evict. Instead, they should inform the Home Office by phone or email.

  • Get help with proof

If a potential tenant cannot prove their immigration status because of ongoing issues, agents or landlords can request a check from the Home Office. An answer will be sent within two working days.

  • Remember that some properties are excluded

Tied accommodation, local authority tenants and leases of seven years or more are excluded from the checks. In addition, students nominated by a higher educational institution are also exempt.

Hard  

Jane Morris, Managing Director of PropertyLetByUs.com, said, ‘the research shows that some legitimate tenants who cannot easily identify themselves using a British or EU passport are finding it harder to secure somewhere to live.’[1]

‘Under the pilot scheme, would-be tenants have to produce evidence from a checklist of documents that they have permission to be in the UK and landlords have to take a copy for their records. Before dismissing a prospective tenant, it is important that landlords make all the necessary checks.  The legislation requires landlords to carry out extensive checks to ensure a tenant has British, EEA or Swiss nationality.  If the prospective tenant is of a different nationality, their visa or passport will have to be checked to see if they have a right to rent. Landlords are also required to notify the home office if the tenant’s visa expires,’ she added.[2]

[1] http://www.propertyreporter.co.uk/landlords/top-tips-for-landlords-on-conducting-right-to-rent-checks.html

 

 

 

Landlord and Mortgage Lender Repossessions Drop

Published On: November 13, 2015 at 12:12 pm

Author:

Categories: Landlord News

Tags: ,,,

Landlord and Mortgage Lender Repossessions Drop

Landlord and Mortgage Lender Repossessions Drop

Repossessions by landlords and mortgage lenders have fallen in the third quarter (Q3) of this year, according to data from the Ministry of Justice.

There were 5,010 mortgage possession claims in the county courts around England and Wales between July and September. This is just under half the amount issued in the same period last year.

In Q3 this year, there were 3,447 orders for possession, 6,252 warrants of possession and 1,419 repossessions by county court bailiffs.

The figures are down 52%, 38% and 49% on Q3 2014 respectively.

Repossession claims by social and private landlords also fell, by 5% on the same quarter last year.

In total, there were 38,662 landlord possession claims, most of which (61%) were from social landlords.

There were 29,197 orders for possession and 19,963 warrants of possession, down 6% and 1% respectively.

However, repossessions by county court bailiffs rose slightly, by 1%, to 11,267.

The increase in the number of actual repossessions by bailiffs is believed to reflect the amount of previous claims working their way through the system.

The average number of weeks between the initial claim and repossession was 41 weeks in Q3 this year.

Despite the drop in repossessions by landlords, homelessness charity Shelter notes that the total number of repossessions in the private rental sector in the year to September increased by 14%, to 22,531 households. It calls for action on homelessness.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New electrical safety law for Scottish landlords

Published On: November 13, 2015 at 10:52 am

Author:

Categories: Landlord News

Tags: ,,,

Private landlords in Scotland are being warned to make sure they are up to speed on new upcoming legislations regarding electrical safety.

From December 1st 2015, private landlords north of the border are to be made legally responsible for ensuring that there is an electrical safety inspection of their property from a registered electrician every five years.

Changes

Under sections 13 (4A) and 19B (4) of the Housing (Scotland) Act 2006, landlords in Scotland will be legally permitted to make sure that their homes are electrically safe. The changes will cover:

  • Any installations in all properties for the supply of electricity
  • All electrical fixtures and fittings
  • Appliances provided by the landlord under the terms of tenancy

Landlords will be required to prove that all of the above are in proper working order and a reasonable state of repair.

New electrical safety law for Scottish landlords

New electrical safety law for Scottish landlords

Inspections

In addition, it will be the duty of the landlord to ensure that five-yearly checks are carried out by a competent person, with anything failing to pass the inspection being replaced or repaired immediately.

These inspections must be carried out before the start of all tenancies and also during long-term agreements, no more than five years from the date of the last inspection. Following the completion of the inspection, a copy of the most recent report must be provided to both new and old tenants.

The competent person responsible for carrying out the inspection must be employed by a firm that is a member of an accredited registration scheme operated by a body that is recognised by the Government. This means that they will usually be a member of the NICEIC or a member firm of the Electrical Contractor’s Association of Scotland (SELECT).

Agent Believes Central London Housing Bubble has Already Burst

Published On: November 13, 2015 at 9:44 am

Author:

Categories: Property News

Tags: ,,,

After warnings of a London housing bubble forming, an estate agent believes that the central market has already burst.

WA Ellis reports that transaction levels in the prime central London sector dropped by 14% in the third quarter (Q3) of this year, compared to the same period last year.

Agent Believes Central London Housing Bubble has Already Burst

Agent Believes Central London Housing Bubble has Already Burst

However, despite stating that the rate of change is an improvement on Q1, when transaction fell at an annual rate of 27%, the bubble may have already burst.

The agent says that more than one third of homes in prime central London have experienced price declines.

WA Ellis, which operates in upmarket Knightsbridge and is part of JLL, has addressed concerns raised by banks that a housing bubble may form in London and spread out to other parts of the country.

Director of the firm, Richard Barber, explains: “It would appear that the bubble may already have burst in prime central London, but the effect is not as decimating as reports from UBS and Deutsche Bank suggest.

“The Government’s intervention in December 2014 by raising SDLT [Stamp Duty Land Tax] has indeed cooled the very top of the prime central London [PCL] market and the continuous upward spiral has been halted – 36% of all properties currently on the market across PCL are now being marketed at a lower price than they were originally listed at, with the average reduction in price being 8.5% of the original asking price.

“Continuous capital growth in any market is an unrealistic expectation. However, we believe that the correction has already happened and the above statistics bear this out. This is supported by the minimal growth that JLL are predicting over the next two years, with much of this being accounted for by the new build sector.”1 

Another London estate agent, Douglas & Gordon, says that stock levels have dropped annually, while demand is at its highest level for 12 months.

The company does not expect a surge in stock, despite growth in valuations activity, and its Director, Ed Mead, describes its pipeline as “bad but not disastrous”.

Mead believes that the fall in sales is not likely to pick up until next spring, and while the under offer pipeline is good, it is also very lengthy.

He comments: “The issue is the absurd length of time to get from agreed to exchange; well over 12 weeks, and this will extend into the New Year.

“Rentals are at their highest revenues ever, but the slack on sales will not be taken up until the spring.”

He says that its pipeline is “about where we’d expect in this market, still bad but not disastrous”, given a lack of supply and heightened demand.

Mead insists that the agency is “lucky”1 to have offices in the capital that are outside the prime central sector.

Douglas & Gordon’s Sales Director, George Franks, reports: “The sales market is treading water, as it has done for some time.

“Valuations are up 20%, although buyer sentiment indicates that a new tranche of stock is unlikely to be released until spring 2016.

“Sales agreed are soaring when we would expect them to be falling, further signalling an upbeat prognosis for the market returning to health in both value and volume towards the end of Q1 next year.

“As we approach the next Autumn Statement, Stamp Duty receipts are forecast to be half of what they were in the last figures, which will not only damage the Treasury’s coffers, but might well trigger a rethink of the swingeing SDLT reforms, implemented almost a year ago.”1

Winkworth, also a London estate agent, has expressed concerns.

Next year, it expects market conditions to be similar to this year’s, with central London continuing to be affected by high Stamp Duty costs and buyers deterred by this when considering what to buy.

However, it states: “We believe that this added burden will be progressively absorbed over the course of 2016 – albeit with fewer transactions – with the changes having little impact from 2017 onwards.”1 

1 http://www.propertyindustryeye.com/a-better-year-lies-ahead-says-london-agent-as-valuations-soar-20/

 

 

My Deposits Given Government Approval to Operate Custodial Scheme

My Deposits Given Government Approval to Operate Custodial Scheme

My Deposits Given Government Approval to Operate Custodial Scheme

Tenancy deposit protection service My Deposits has been given Government approval to operate a custodial-based scheme in England and Wales from April 2016.

Landlords or their letting agents have been legally obliged to protect tenants’ deposits in England and Wales since 2007. Landlords and agents can choose between an insurance-based scheme that involves a fee, or a free-to-use custodial scheme.

The new announcement means that landlords and agents who prefer to use a custodial-based scheme now have the choice.

CEO of My Deposits, Eddie Hooker, comments: “My Deposits has been through a detailed procurement process with the Government and we are delighted to have been given the green light.

“We’ve been hopeful of winning the contract for some time and have already begun an exciting and ambitious reboot of My Deposits. We’re taking a fresh look at deposit protection and are investing in our systems and processes to create a faster, smarter scheme designed to remove delays and problems associated with deposit protection.”

He explains: “We’ve held numerous focus groups with landlords, letting agents and tenants, along with our sponsor, the National Landlords Association (NLA), to form a detailed blueprint of how we can improve. We are delighted that landlords and letting agents will soon have a genuine choice of which custodial scheme they use and look forward to welcoming anyone who wants to change from their current provider.

“Our scheme continues to go from strength to strength, having also been chosen by the Jersey States as the sole supplier of a custodial tenancy deposit protection scheme on the island, which launched earlier this month.”1 

At present, My Deposits runs an insurance-based scheme, alongside the Tenancy Deposit Scheme, which will also begin offering a custodial service in April 2016. The Deposit Protection Service (DPS) offers both types of protection at present.

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/mydeposits-given-go-ahead-to-operate-custodial-deposit-scheme

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What technology is attractive to homeowners?

Published On: November 12, 2015 at 3:23 pm

Author:

Categories: Property News

Tags: ,,,

An interesting new ‘Digital Homes Report,’ released today by Barclays Mortgages has revealed that nearly one third of homeowners believe installing technology in the home will increase its value.

The report centres on the rise of the ‘digital home,’ that includes both connected technology and a digital infrastructure that is integrated into the home.

Equipped

Data from the report found that on average, UK homeowners who said that they would be willing to spend more would be willing to pay an additional £3,310 for a new property fully equipped with the latest technology. This includes smart heating systems and appliances.

Additionally, the investigation reveals that when it comes to choosing technology in which to invest, homeowners are seemingly putting practically first. When selecting where to spend their cash, the most common technologies homeowners are likely to buy in the future are those that support a home’s infrastructure. USB connections (36%), super-fast broadband connectivity (51%), smart meters (35%) and solar panels (27%) were all common features mentioned.

Although it seems something for the future, the survey revealed that nearly half of UK homeowners already have some kind of technology in their home. The most popular of these is fibre optic cabling, which allows for super-high speed interest. 26% of respondents said that they already had this in their property.

The top and bottom five most and least popular pieces of connected technology that homebuyers would be willing to pay extra for were found to be:

Connected technology that homebuyers would pay extra for (by popularity)
Top 5 Bottom 5
1 Solar panels (31%) 1 Smart fridge (4%)
2 Fibre optic cable (21%) 2 Smart Doorbell (5%)
3 Smart security alarm (19%) 2 Smart oven (5%)
4 Sensor technology (16%) 3 Mobile signal box (8%)
5 Smart thermostat (15%) 3 Induction cooktop (8%)

[1]

What technology is attractive to homeowners?

What technology is attractive to homeowners?

Fascinating

UK property expert and television personality Amanda Lamb, said, ‘it’s really fascinating to see from the Barclays Mortgages Digital Homes Report, how peoples’ attitudes to connected technology are changing and adapting in the modern world.’[1]

‘In my years of dealing with the UK property market, I’ve seen plenty of trends come and go however, digital homes are really here to stay and this space is something I see really growing over the next three to five years. Whilst it will take time for it to be widely adopted by the general public, I see technology integrated in the home being a real incentive for homebuyers, so would encourage homeowners to start thinking about what they can do to future-proof their home,’ Lamb added.[1]

[1] http://www.propertyreporter.co.uk/household/what-technology-attracts-homebuyers.html