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Em Morley

Rents in Prime Home Counties market down by 0.8%

Published On: October 28, 2015 at 10:01 am

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Prime market rents in the English Home Counties slipped by an average of 0.8% during the third quarter of 2015, despite boosted activity levels.

Annually however, rents are up 4.1% on the same period twelve months ago.

Seasonal

The prime rental market in the Home Counties tends to be seasonal, with the three months leading to September often the busiest of the year, with tenants looking to complete moves before the start of the next school year.

2015 saw no exception to the rule, according to new data released by Knight Frank, which shows the number of tenancies agreed in the three months to September was 54% higher than in the previous quarter.

While activity has remained robust, rising stock levels across the market have meant that some landlords have been willing to reduce rents in order to stay competitive.

Rents in Prime Home Counties market down by 0.8%

Rents in Prime Home Counties market down by 0.8%

Relocation, Relocation, Relocation

Research executive Oliver Knight noted that, ‘as ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period.’[1]

‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector,’ Knight continued. ‘The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries.’[1]

Mr Knight also pointed out that the prime market continues to be attractive to international tenants with 38% of new renters during July in September coming from overseas.

[1] http://www.propertywire.com/news/europe/uk-home-counties-property-2015102711136.html

 

 

 

New Website Uncovers Details of Deaths in Properties on the Market

Published On: October 28, 2015 at 9:25 am

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With Halloween just around the corner, one American website has joined in on the fun (or not) by launching a property portal with a morbid twist.

New Website Uncovers Details of Deaths in Properties on the Market

New Website Uncovers Details of Deaths in Properties on the Market

DiedInHouse.com provides details on whether anyone has died in a home that is on the market, either for sale or to rent.

The $11.99 (around £8) report gives the date of death, the cause and information about the deceased.

The site states: “In most states, a death in a home, no matter how it occurred, is not considered a material fact and it’s not required to be disclosed.

“A murder could have occurred days ago and the seller does not have to let you know.

“A death in a home, especially a violent death, can decrease the home’s value by 25% and increase its time to sell by up to 50% longer than comparable homes.”

It asks: “Would you want to know that a murder, suicide or even a bizarre death occurred at the property before you sign the contract?”

In the UK, we have Consumer Protection from Unfair Trading Regulations (CPRs) that mean agents must disclose certain details, for example a murder.

However, the American website believes that people “may not want to live in a house where someone has died, no matter how they have died”.

But it also points out another side: “If you do not mind either way, a stigmatised home can be a bargain and the information can be used as leverage to negotiate a reduced price.”

Could something similar launch for the UK market? And would you mind moving into a home where somebody had died?

Visit the site here: http://www.diedinhouse.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlord in Swindon Fined £16,000 for HMO Breaches

Published On: October 27, 2015 at 5:03 pm

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A landlord in Swindon has been fined more than £16,000 for breaching House in Multiple Occupation (HMO) regulations.

Javaid Lone, 59, pleaded guilty to 13 breaches at a hearing at Swindon Magistrates’ Court last week.

The court was told that Lone allowed at least 15 tenants to rent rooms in a converted guesthouse on County Road, Swindon. One tenant was living in a converted bathroom and Lone had erected an illegal structure in the living room to form another bedroom.

Landlord in Swindon Fined £16,000 for HMO Breaches

Landlord in Swindon Fined £16,000 for HMO Breaches

The landlord had converted numbers 31 and 33 County Road into a single property with multiple bedsits and shared kitchens and bathrooms.

In 2014, Swindon Borough Council discovered a series of hazards in the property, including a lack of fire exits, covered smoke alarms, dangerous electrical wiring and unhygienic communal areas.

After the inspection, Lone worked alongside the council to improve the property. However, in June 2015, new breaches were uncovered, such as tissue stuffed down toilets, rat droppings in the only usable kitchen and an outstanding £9,598 electricity bill, which led to the supply being cut from the home.

When the council tried to contact Lone regarding the bill, it found that he was in America. The council and Lone’s daughter were then left to pay half of the bill.

Kirsty Real, prosecuting for Swindon Borough Council, said that Lone took advantage of the tenants’ naivety.

She told the court: “These people were of multiple nationalities and in a visit, one woman could not understand the council officer’s questions, and as a result, were vulnerable due to this.

“The council inspector saw rat droppings in the kitchen, the kitchen was in a complete state of disrepair. He tried to cram in as many residents as possible and the effects of that were all around the property.

“There were tenants living in the rooms who also had another bed in the room, so there was subletting involved there. There was a significant fire and safety risk in this property and the tenants could have suffered serious harm in the event of a fire.”1

Lone’s defence claimed that the landlord had become “overwhelmed”1 with new tenants at a time when he was trying to fix the problems.

Paul Sample, the Bench Chairman, ordered Lone to pay £16,650 in fines and £1,500 court costs.

A council spokesperson comments: “We hope this case sends a strong message to rogue landlords, who fail to fulfil their legal obligations to tenants to make their properties fit, safe and healthy places to live.

“Tenants of larger HMOs like this are particularly vulnerable because they may be less able to seek alternative accommodation and therefore endure squalid conditions.

“Our enforcement work focuses on this area, as such properties can be riddled with hazards, ranging from rat infestations to inadequate fire exits and faulty electrical installations.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/16-000-fine-for-swindon-landlord

Spookiest street names investigated

Published On: October 27, 2015 at 3:29 pm

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Fake paint, bin-bags and witches hats selling quicker than ghoul-shaped cakes. Yes, Halloween is fast approaching.

To mark the annual ‘scarefest,’ Zoopla has uncovered the spookiest street names in Britain and has looked at whether their frightening connotations have affected the values of the homes located there.

Spooky streets

Those with a phobia of creepy crawlies would shiver at the thought of living on Spiders Lane in Exmouth. Goblins Green in Welwyn Garden City and Bat Alley in Sturminster Newton would also be frightening for some homeowners…never mind the postman!

However, the scary street names have done precious little to warn off buyers, with property prices on the top-ten spookiest locations still typically high.

The list, compiled by Zoopla, was;

Rank                Street                                                                   Current Average Value

1          Spook Hill, Dorking RH5                                                        £651,298

2          Cackle Street, Brede, Rye TN31                                             £359,264

3          Cauldron Crescent, Swanage BH19                                      £326,283

4          Bat Alley, Marnhull, Sturminster Newton DT10               £311,979

5          Goblins Green, Welwyn Garden City AL7                           £303,218

6          Spells Close, Southminster CM0                                          £283,059

7          Tricks Terrace, Winkleigh EX19                                           £273,214

8          Coven Road, Brewood, Stafford ST19                                 £262,757

9          Spiders Lane, Exmouth EX8                                                £257,646

10       Black Cat Drive, Northampton NN5                                    £192,587 [1]

Spookiest street names investigated

Spookiest street names investigated

On average, the spookiest property names were found to be just under £200,000. The average value in Spook Hill is £651,298, with Cackle Street also having a high typical value of £359,264.

Brave souls

Findings from the report are supported by another survey that shows the majority of people would not be deterred from purchasing a supposedly haunted house. 6% went as far as saying they would be more inclined to view a home if it were said to have, ‘supernatural occurences.’

This research, conducted by Clydesdale and Yorkshire Banks, indicated that two-thirds would not be put off buying a haunted property.

Steve Fletcher, director of retail banking, said that, ‘everyone is looking for something different in their dream home. However, we were surprised that the majority of people would be happy to share with a supernatural presence.’[1]

Our research also revealed that 3 per cent of those surveyed actually believe their current property may be haunted and that they are co-habiting with a ghostly resident,’ he added.[1]
[1] http://www.dailymail.co.uk/property/article-3290142/Halloween-house-prices-Britain-s-spookiest-street-names-affect-property-prices.html

 

 

Right to Rent Checks Must be Conducted Within 28 Days Before the Tenancy Starts

Published On: October 27, 2015 at 2:21 pm

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With the Right to Rent scheme rolling out nationwide on 1st February 2016, landlords and letting agents must know when they should conduct immigration checks on their prospective tenants.

However, the latest Home Office guidance does not detail exactly when the checks should be made.

The most recent advice can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/469471/landlords_right_to_rent_guidance.pdf

Right to Rent Checks Must be Conducted Within 28 Days of Tenancy Starting

Right to Rent Checks Must be Conducted Within 28 Days of Tenancy Starting

The lack of timescale for the checks has led to some law firms stating that there is no set period for when the checks must be conducted, only that they should be undertaken before the tenancy begins.

However, the guidance does reference a code of practice that was published in December 2014. Within this, the Home Office explains: “Right rent checks on prospective tenants may only be undertaken and recorded up to 28 days before the tenancy agreement comes into effect.”

Read the code of practice: https://www.gov.uk/government/publications/right-to-rent-landlords-code-of-practice/code-of-practice-on-illegal-immigrants-and-private-rented-accommodation

With the 28-day period specified, some agents have voiced concerns over any lets that are arranged months in advance, particularly student properties.

A Home Office spokesperson clarifies: “The earlier code of practice is still current. Our more recent document is really just a supplement. It does not go into the level of detail that the code does, but both documents are correct.”1 

Landlords and agents should be aware that the code of practice, and therefore the 28-day timeframe, is a legal requirement.

However, the 28-day period is not as straightforward as it seems, as the timeframe expires the day before the tenancy starts.

The law states: “The prescribed period within which the prescribed requirements must be complied with for the purposes of sections 24(4) and 26(4) of the Act is 28 days ending on the day before the day on which the residential tenancy agreement which authorises occupation is entered into.”

The full legislation can be read here: http://www.legislation.gov.uk/uksi/2014/2874/pdfs/uksi_20142874_en.pdf

In practice, the 28-day requirement could mean that tenancies are terminated if they have been set up months in advance. Checks conducted 28 before the eve of the start of the tenancy could reveal that the tenant has no right to rent. This would then leave a void period.

The Association of Letting Agents (ARLA) has insisted that the 28-day rule must be strictly observed.

Rachel Hartley, ARLA’s expert on Right to Rent, explains whether this could pose problems to agents that agree lets in advance: “In a situation like this, we are advising agents to do any reasonable preliminary checks that are possible in advance – sometimes this may be via a video call, noting details of the call – and then set up the tenancy subject to Right to Rent check requirements prior to occupation (within the 28-day period).

“This will help to ensure that the letting can go through trouble-free and the agent can still establish the statutory excuse against civil penalty.”1

If you’re a landlord or letting agent, remember to stick to the law when conducting Right to Rent checks on your tenants.

Insurance Premium Tax effective this weekend

Published On: October 27, 2015 at 12:05 pm

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Homeowners, landlords and letting agents alike are being warned to budget around a new tax hike, which comes into effect from this Sunday, November 1st.

Millions of people face seeing their insurance costs rise as a result of the tax changes. As announced in the summer Budget, the standard rate of Insurance Premium Tax-a tax paid every time an insurance policy is purchased in Britain-will rise from 6% to 9.5%.

Increases

The Association of British Insurers is warning that the change will see 4.7 million household policies affected. Any insurance policy taken out after October 31st will be subject to IPT charged at the new rate.

James Dalton, director of general insurance Policy at the Association of British Insurers, said, ‘whether you are a home owner, driver, own a pet or buy medical insurance, millions of people across the country face being hit in the pocket by this rise in Insurance Premium Tax.’[1]

‘Whether it’s a legal requirement or you want to buy extra cover, insurance is a financial safety net, not a luxury,’ he added.[1]

An increase in Insurance Premium Tax is expected to generate an extra £8.1billion for the Treasury by 2021.

Insurance Premium Tax effective this weekend

Insurance Premium Tax effective this weekend

 

Switches

Website uSwitch has suggested that people with insurance policies that are set to expire in early November should consider moving to a fresh deal before the conclusion of their existing one. This could potentially lead to a cheaper outcome in the long run.

Someone looking to move policies should weigh up if there will be any exit fees and the prospect of not getting money back on the remaining days of cover left to run on the policy. In addition, there could be the potential loss of an entire year’s no claims bonus.

However, Kevin Pratt, insurance expert at MoneySuperMarket, said, ‘there’s really nothing people can do to avoid paying the increased Insurance Premium Tax in the future. Even quotations run now for policies that renew next month will show a premium that includes IPT at the higher rate applicable at the point of renewal.’[2]

Dalton added that, ‘while insurance remains one of the most competitive industries in the UK, its affordability can’t be taken for granted.’[2]

‘Further tax increases must be avoided if insurance is to remain accessible for all,’ he concluded.[2]

[1] http://www.thisismoney.co.uk/money/bills/article-3288548/Millions-face-insurance-costs-rise-IPT-hike-effective-Nov-1.html

[2] http://www.express.co.uk/finance/personalfinance/614784/Act-now-to-beat-next-week-s-insurance-price-hikes