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Em Morley

Rogue Landlords to be Banned Under the Housing Bill

Published On: October 15, 2015 at 1:24 pm

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Rogue Landlords to be Banned Under the Housing Bill

Rogue Landlords to be Banned Under the Housing Bill

Rogue landlords and letting agents will be banned from renting out property under new rules to be enforced through the Housing and Planning Bill.

The law was introduced to Parliament on Tuesday (13th October 2015) by the Secretary of State for Communities and Local Government, Greg Clark.

The part of the bill concerning rogue landlords and agents permits a banning order to be served if a landlord or agent has been convicted of a banning order offence. It also demands a database of rogue landlords and agents to be formed.

The bill also allows a rent repayment order to be issued against a landlord that has breached a banning order.

Director of flat and house share website SpareRoom.co.uk, Matt Hutchinson, states: “The booming rental market has a small but worrying dark side – the rise of unscrupulous landlords and agents who seek to prey on tenants. Getting them out of the market should be a top priority.

“A database of rogue landlords and agents could be a vital tool as long as the information it contains is accurate and accessible to those who need it most.

“But we should be wary of piling lots of extra legislation on the sector. The need to clamp down on the unscrupulous shouldn’t hinder the vast majority of landlords who do play by the rules and provide the rental accommodation Britain desperately needs.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/housing-bill-rogue-landlords-to-be-banned

London rental market is stabilising

Published On: October 15, 2015 at 1:03 pm

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Call for rental housing strategy from Public Accounts Committee

Underlining the last quarter’s unexpected turnaround, the London rental market saw values increase by 4% across most of central and eastern parts of the capital.

According to a report by Benham & Reeves Residential Lettings, the substantial impact of stamp duty rates has led to a stronger rental market.

Gains

The Prime Central London market saw increases in the last quarter, on the heels of many months of stagnation. This growth has continued into the present quarter. Many of the tenants aiding the growth are overseas professionals, opting to rent long term. This is due to the cost of renting representing a survey in comparison to purchasing a home in high value region, as a result of the 12% top rate of stamp duty.

In the east of the capital, the rental market is strong, but for different reasons. Typically, renters in this area are likely to be British and of a younger age. Many of these tenants are choosing to rent as a lifestyle choice.

North London actually saw a fall in rental values during the last quarter. However, a number of proposed developments in the area have led to an increase in property supply.

London rental market is stabilising

London rental market is stabilising

Interesting

Marc von Grundherr, lettings director at Benham & Reeves Residential Lettings, commented, ‘from an investors’ perspective, it is very interesting to observe demographic changes.’ He feels, ‘one of the reasons the rental market tends to remain so strong in areas such as east London is because these areas attract Milennials who are continue to rent long term.’[1]

‘They’re simply not willing to scrimp and save for years to afford a deposit but prefer to ‘live for the moment’. This concept even extends to where they choose to rent: they’d much rather live somewhere central close to good bars and restaurants than commute in from more affordable areas.  For as long as East London remains hip and trendy, it will continue to attract good quality tenants,’ Grundherr concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/london-rental-market-bounces-back.html

 

 

 

Homeownership costs to hit £15,300 by end of 2015

Published On: October 15, 2015 at 12:02 pm

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Research from Legal and General suggests that the total annual cost of homeownership is set to soar.

By the end of 2015, the cost of owning a property is set to reach £15,300, with the firm predicting that this figure will hit £23,120 by 2030.

Increases

In addition, mortgage repayments are also set to rise from an average of £8,000 in 2015 to a projected total of £13,000 in the year 2030. This is in comparison to the average annual cost of renting, forecasted to jump from £7,500 this year to £12,000 in 2030.[1]

‘Streamlined stamp duty, low inflation and rock bottom interest rates have produced an exceedingly favourable market for homeowners; however, our research suggests that this trend is unlikely to last,’ observed Jeremy Duncombe, Director of the Legal & General Mortgage Club. [1]

‘The cost of homeownership is set to climb in the coming years in response to imminent interest rate rises and a projected increase in repair and maintenance costs. This increased expenditure is likely to have an effect on household budgets and it is therefore important that people factor this into their finances so that they are able to cope when costs increase,’ he continued.[1]

Homeownership costs to hit £15,300 by end of 2015

Homeownership costs to hit £15,300 by end of 2015

Preparation

Duncombe went on to sayt that, ‘the best way to prepare for the future is to speak to a mortgage broker, who can provide guidance on how to make the most of current rates and also advise on how increasing costs will impact borrowers in the future.’ He feels, ‘ensuring that individuals are on the most economical rate available to them can bring greater financial stability in the future.’[1]

‘Brokers are best placed to guide borrowers towards the best products for their specific circumstances and also advise them on ways in which they can protect themselves from the impact that increasing costs may have on them in the future.’[1]

[1] http://www.propertyreporter.co.uk/finance/homeownership-costs-set-to-hit-%C3%A3%C2%A215300.html

 

 

Mortgage access still barrier to home hunters

Published On: October 15, 2015 at 10:53 am

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Only 12% of UK adults believe that access to mortgages has improved during the past 5 years, despite recent measures to attempt to make the mortgage market more accessible.

This represents a substantial drop from the 29% recorded in similar research conducted by Precise Mortgages at the same time last year.

Drops

Despite the negativity surrounding mortgage access, the report suggested improvements in other issues facing potential homeowners. In the last 12 months, UK renters said that saving for a deposit, locating an affordable property and getting a mortgage approved are less of a barrier to owning their home than in 2014.

This said, 49% of would-be homeowners questioned said that mortgage rates favour only those with large deposits. 36% said that they felt mortgages were too difficult to obtain for first-time property purchasers.[1]

76% of renters aged between 18 and 24 said that saving enough for a deposit was that main concern over buying a home. 67% said that finding an affordable home was the greatest barrier.[1]

Affordability

The average cost of a home in the UK is now well above £200,000 and with house price inflation to hit 6% this year, affordability is likely to be the largest barrier for first-time buyers looking to get onto the property ladder.

However, 41% of people renting between 18-24 age bracket still have hopes of buying their own property during the next 5 years. This demographic is different in the 45-54 bracket, with just 14% of renters believing they will own in the same period. The majority (67%) in this age bracket said they had no aspirations of becoming a homeowner.[1]

Alan Cleary, managing director of Precise Mortgages, said that, ‘prospective home buyers are feeling more positive about their ability to save and find an affordable property, but with consumer sentiment towards mortgage accessibility falling in the last year, the industry has a vital job to do in reassuring prospective home owners.’[1]

Mortgage access still barrier to home hunters

Mortgage access still barrier to home hunters

Equality

Cleary went on to say that, ‘the mortgage industry should serve prospective homebuyers and we must dispel the belief that lenders continue to favour large deposits and are unforgiving of those with blemishes on their credit record.’[1]

‘There are specialist lenders in the market ideally placed to help navigate the obstacles potential home buyers face, but there is still more to be done across the wider industry. Ensuring that all viable homeowners have access to mortgage products should be the aim of the industry as a whole,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/mortgage-lending-uk-homes-2015101511096.html

 

 

Landlord Licensing is Unnecessary, Says RLA

Published On: October 15, 2015 at 10:00 am

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The Residential Landlords Association (RLA) is calling on local councils to drop landlord licensing schemes, after new legislation reveals that they are unnecessary.

Landlord Licensing is Unnecessary, Says RLA

Landlord Licensing is Unnecessary, Says RLA

Presented to the House of Commons on Tuesday (13th October 2015), measures in the new Housing and Planning Bill indicate that local authorities can use Council Tax registration forms to request details of a property’s tenure and its landlord from the tenant. The RLA campaigned for this rule.

The bill also gives local authorities power to use information held by Government-approved tenancy deposit schemes to enforce regulations affecting private rental housing.

The RLA is now urging councils to stop any licensing schemes in place, as the bill gives them the freedom to collect information without charging high costs to landlords, which then get passed onto tenants in higher rents.

Policy Director at the RLA, David Smith, comments: “The Housing Bill makes clear that landlord licensing schemes are not needed and serve only as a money raising exercise by councils.

“Local authorities now have serious questions to answer. Why are they charging good landlords when they can collect the information they need to drive out criminal landlords using Council Tax registration forms for free?

“It’s time for councils to think again and bring an end to the tenants’ tax once and for all.”1

Do you have to pay for a license in your area? And has this meant you’ve had to increase rent prices?

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/rla-landlord-licensing-not-needed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labour Hopes to Wreck Immigration Bill

Published On: October 14, 2015 at 4:07 pm

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Labour Hopes to Wreck Immigration Bill

Labour Hopes to Wreck Immigration Bill

The Labour Party will attempt to wreck the Government’s Immigration Bill today, as it believes the law “panders to prejudice”.

Shadow Home Secretary, Andy Burnham, warns that parts of the legislation would “make Britain a hostile and unwelcoming country”1.

The bill will see landlords obliged to check the immigration status of all new tenants.

Labour MPs will vote for a wrecking amendment, but it is thought that the bill will definitely be passed.

1 Unknown (2015) ‘Labour: We’ll try to wreck Immigration Bill’, Metro, 14 October