Written By Em

Em

Em Morley

Repair or Replace?

Published On: November 7, 2015 at 3:06 pm

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Categories: Landlord News

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It is common that once a household appliance breaks down and is subsequently repaired, other faults soon become apparent, resulting in a lot of costs in quick succession.

Example

Repair or Replace?

Repair or Replace?

Ask yourself what course of action you would take in the following situation:

A tenant’s fridge freezer stops working, so they report the problem to their letting agent. In turn, the agency speaks to the landlord, who wants a cheap resolution to the problem and therefore tries to fix the appliance.

The landlord speaks to a contractor and after assessing the problem, the contractor quotes a price for parts. After authorization, the parts are ordered and they return to finish the job.

On their return, the contractor swaps the part believed to be at fault but realizes that the appliance still does not work and calls for more parts. By this time, the tenant is understandably desperate for a new fridge freezer, so calls their agent again

This time, after being informed, the landlord decides to replace the entire appliance, fearing more inconvenience and ultimately, more expense.

Common

Director of Everything Lettings, Roy Fuller, says: “The above situation is more common than you think, as the first thought when looking for the cheapest option is to repair but it always ends up costing more in the long run.”[1]

Fuller believes: “Paying for a call out fee, parts and then having to replace the appliance anyway is not the way forward.” Instead, Fuller says that his company “recommend to replace appliances when they break down,” as “repairs to appliances rarely last more than  six to 12 months.”[1]

[1] http://www.estateagenttoday.co.uk/spotlight-news/1669-repair-or-replace-that-is-always-the-dilemma

 

 

 

Home Too Dangerous to View Sells for £21,000

Published On: November 7, 2015 at 9:32 am

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A property that was put up for sale at auction with a guide price of £1 and no reserve has sold for £21,000.

The fire-damaged house was too dangerous for viewings, but attracted competitive bidding at the auction in Cardiff.

The buyer is a carpenter from London who had hoped to pay around £15,000. When refurbished, they expect the home to be worth about £50,000.

Paul Fosh Auctions’ Sean Roper comments: “It was very competitive in that room and there were four or five people bidding for the house.

“It certainly exceeded expectations, but that was probably due to the impressive amount of interest raised by the nil reserve; that’s a very, very rare occurrence.”1

1 http://www.propertyindustryeye.com/1-house-too-dangerous-for-viewings-sells-at-auction-for-21000/

Affordable London Flats Sell Out in Three Hours

Published On: November 6, 2015 at 4:17 pm

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Categories: Property News

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Yesterday, we reported that a new build development in Hounslow, London, had attracted so much attention that prospective buyers had been queuing in the street since Wednesday morning.

Affordable London Flats Sell Out in Three Hours

Affordable London Flats Sell Out in Three Hours

All of the flats – 215 of them, with a combined value of £60m – sold out yesterday evening in a record three hours. This equates to sales worth £335,000 per minute.

Half of the buyers are owner-occupiers and the other half are investors.

Nine people camped overnight on Wednesday, with the queue growing to 30 hopefuls by 9am yesterday morning.

The queue had built up to around 150 people by the launch at 5pm yesterday, and by 6.30pm, 250 buyers had rushed through the doors at Trinity Square, the former London headquarters of American Airlines.

By 8pm, all of the flats had been sold.

The apartments will not be ready to move into for almost two years, with the development due for completion in autumn 2017.

More than 2,000 had registered for the launch. All of the flats are either studios or one-bedroom apartments, with prices starting at £199,000.

Over 40% of the development is priced below £250,000. The one-bed flats sold for between £310,000-£315,000, significantly lower than the London average of £350,000-£450,000, depending on the area.

The developer, Galliard, described the project as the capital’s largest new build development for first time buyers and first time investors.

The first person in the queue was Monika Morawska, who has been hoping to become a homeowner. She previously missed out on another recent Galliard launch in Hayes, Middlesex, where the homes sold out within four hours.

For more details, read yesterday’s piece: /buyers-camping-out-for-chance-to-buy-affordable-london-flats/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents to increase 16%-22% in 5 years

Published On: November 6, 2015 at 3:09 pm

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Savills has forecasted that UK rents will rise by an average of 16.5% by the end of 2020. What’s more, rents in London are expected to rise by 22.8% over the same period.

In its annual five-year forecast, the agent says that rental availability is already so stretched for many households, rental growth will in effect be held back by affordability.

Private-rented costs

The agency says that households in the private rented market already pay more of their income than those living in other sectors. Many are reliant on housing benefit to make the tenure more affordable, thus reducing the growth of rents if they are to remain affordable for tenants.

‘Rental markets that are heavily dependent on housing benefit tenants such as some of the seaside towns along the south cost and parts of the northern urban belt will come under renewed pressure due to government policy (our rental forecasts are for non-housing benefit dependent tenancies,’ said a Savills spokesperson.[1]

Savills predicts that the traditional rental demographic of sharers and young professionals looks set to continue to grow, as the cost of buying restricts the total number able to make the move into homeownership. However, these groups are likely to benefit from the predicted wage recovery, which will drive the majority of rental growth in the coming years.

Rents to increase 16%-22% in 5 years

Rents to increase 16%-22% in 5 years

Warning

This said, Savills warns that in some high demand/low supply markets, more people may live in larger household groups. As a result, larger properties could be in higher demand and produce more rental growth.

Like many other industry members, Savills is warning that a cap on mortgage interest payments will greatly reduce the profitability of buy-to-let investment a considerable number of landlords.

‘Over five years we expect the cash surplus [profit] on the average buy to let investment to fall from over £2,500 to under £950. This will cause some highly geared buy to let investors to rationalise their portfolios and limit the ability of a larger number of others to expand,’ says the agency.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/rents-to-rise-16-to-22-over-next-five-years–forecast

 

 

 

Landlord that Failed to License HMO Fined £20,000

Published On: November 6, 2015 at 2:11 pm

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Landlord that Failed to License HMO Fined £20,000

Landlord that Failed to License HMO Fined £20,000

A landlord in Plymouth has been fined over £20,000 for renting out substandard properties to 30 tenants, without obtaining a House in Multiple Occupation (HMO) license.

John Mayer pleaded guilty to four cases of failing to apply for a license to operate an HMO, as required by the Housing Act 2004. He also failed to comply with improvement notices that were served under the Housing Act, meaning that around 12 renters did not have adequate heating in their homes.

Mayer was fined a total of £23,000 and ordered to pay court costs of £1,554.38, to be paid at a rate of £2,000 per calendar month. Mayer pleaded guilty on 16th October 2015, but was sentenced on 30th October.

He was prosecuted by Plymouth City Council, as part of its ongoing campaign to combat rogue landlords in the city.

Councillor Chris Penberthy, Cabinet Member for Co-operatives and Housing at Plymouth City Council, comments: “We welcome this large fine, which sends a clear message that we will not tolerate rogue landlords here in Plymouth.

“We have some excellent landlords in Plymouth, but cases like this bring landlords into disrepute.”

He concludes: “Our plan for private rented housing aims to drive up standards in rented housing in the city, and this type of court case is just one of the tools we intend to use.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/plymouth-hmo-landlord-fined-20-000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Scottish landlords warned on electrical check deadline

Published On: November 6, 2015 at 12:45 pm

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The Trade Body for Scotland’s electrical sector has moved to remind landlords and agents about upcoming legislation changes.

Select has issued a warning that from December 1st, landlords and agents must conduct five-yearly electrical checks of all fixed wiring and appliances in all properties to let.

Safety

Electrical safety has been thrown back into the limelight in Scotland with Government statistics showing 69% of all accidental fires in Scottish homes are caused be electrical faults.

Scottish landlords warned on electrical check deadline

Scottish landlords warned on electrical check deadline

The recently amended Housing (Scotland) Act 2006 includes statutory guidelines on electrical installations and appliances in privately rented property. This is to ensure that all rented properties meet the, ‘Repairing Standard,’ throughout the duration of all tenancies.

This includes a specific requirement for landlords or letting agents to make sure that the installations in the property for the supply of electricity, electrical fixtures and fittings and all other electrical equipment are in a fit and proper working order.