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Em Morley

Prime Minister to Promise 200,000 Starter Homes

Published On: October 7, 2015 at 11:30 am

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The Prime Minister is set to announce plans for 200,000 new affordable homes to buy in his speech at the Conservative conference today.

House builders in England will no longer be forced to provide low-cost rental homes in new developments. Instead, they will be able to offer starter homes for first time buyers aged under 40 at discounted prices as well.

David Cameron will tell Tory members that he hopes to transform generation rent into generation buy.

Prime Minister to Promise 200,000 Starter Homes

Prime Minister to Promise 200,000 Starter Homes

Those that buy these new starter homes will be unable to sell them for a quick profit under the new policy, which aides insist will provide 200,000 new homes by 2020.

Mr. Cameron’s speech began at 11:30.

The PM is already facing opposition to his Right to Buy plans, which will see housing association tenants given the option of buying their homes.

However, Mr. Cameron has focused on homeownership in his campaign, as levels have decreased significantly in recent years due to spiralling house prices and high deposit requirements. He will state that more needs to be done to make housing affordable for young people.

He will tell Tory members in Manchester: “When a generation of hard-working men and women in their 20s and 30s are waking up each morning in their childhood bedrooms, that should be a wake-up call for us.

“For years, politicians have talked about building affordable homes, but the phrase was deceptive. It basically means homes that were only available to rent. What people want are homes that they can actually own.”1 

He will claim that local authority planning rules demanding certain types of affordable housing prevent house building and he will vow to introduce more flexibility into the system.

Policy Manager at lobby group Generation Rent, Dan Wilson Craw, insists that starter homes will not help tenants that are “really struggling” and urges Mr. Cameron to prioritise social house building instead.

He adds: “Under the Prime Minister’s plans, only 200,000 relatively well-off households will get to buy a home. But there are five million households who will remain stuck in private rented housing, paying out half of their income to their landlord.”1

The starter homes scheme was first revealed in the general election campaign and will offer discounts on homes worth up to £250,000 outside of London and £450,000 in the capital.

Buyers will be unable to sell these homes for up to five years.

1 http://www.bbc.co.uk/news/uk-politics-34460822

 

Countrywide joins with learndirect for scheme

Published On: October 7, 2015 at 11:09 am

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Property services group Countrywide plc has announced that it is to join forces with learndirect on a fresh nationwide apprenticeship scheme.

The firm said that its main focus is on recruiting the best possible young people and subsequently retaining them in the business. With this in mind, it has put greater emphasis on helping youngsters begin their career in the sector by investing substantially in trainee programmes. There are plans in place to recruit in excess of 200 new apprentices during the next 12 months.

Talent

Offering young people the opportunity to develop their skills through both beginner and advanced customer service and residential sales apprenticeships, the programme will seek to root out the top talent. John Gray, Head of Management Development at Countrywide, said, ‘we’re delighted to be working with learndirect on the roll-out of our new apprenticeship programme. We see quality apprenticeships as a key part of our talent strategy-allowing us to invest in staff and promote from within. Initially, 40 apprentices will be joining this year in locations from Newcastle to Yeovil and Canterbury to Bolton.’[1]

‘The apprentices will be classed as in learning for the first six months of the programme, developing the skills and knowledge of a front line property advisor, they will then move into an operational role for the remainder of their apprenticeship and will be eligible to earn rewards in line with the rest of the business. I am confident learndirect has both the capability and reach to achieve a successful, national roll-out of this programme within our retail business and beyond,’ Gray added.[1]

Countrywide joins with learndirect for scheme

Countrywide joins with learndirect for scheme

Pleased

Steve Morris, Sales Director at learndirect, stated, ‘we’re really pleased to be working with Countrywide on developing and delivering its new quality apprenticeship programme. Over the coming months we’ll be helping them to source new people onto apprenticeships and training their staff so they are qualified and have the knowledge and skills needed so they can provide an excellent service to their customers.’[1]

Continuing, Morris said, ‘Countrywide’s approach of giving their apprentices the chance to gain an understanding of what’s expected of them, before they move into a front-line retail role, is really commendable.’ He also feels that this, ‘really demonstrates how Countrywide value the integration of apprenticeships.’[1]

‘At learndirect we’re working with more and more businesses who are seeing the benefits of apprenticeships creating a talent pipeline for the future; bringing new people into the business and providing consistent and high quality training, to name three,’ Morris concluded.[1]

[1] http://www.propertyreporter.co.uk/business/countrywide-announces-partnership-with-learndirect.html

 

 

Young Adult Living With Parents Feel They Don’t Have Independence

Published On: October 7, 2015 at 10:35 am

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Young Adult Living With Parents Feel They Don't Have Independence

Young Adult Living With Parents Feel They Don’t Have Independence

One fifth of working 20-34-year-olds have moved back in with their parents in the last 12 months, reveals recent research by Shelter.

The housing charity’s study also found that 15% have never even moved out of their family home.

YouGov commissioned the survey, which shows that 56% of young adults living with their parents said the reason they were living there is because of the high cost of housing.

Over one third said they were trying to cut down on costs in order to save up for a deposit for their own home and over a fifth (21%) stated that renting is too expensive.

However, living in the family home is also having an emotional impact on young adults. Despite feeling lucky to have the option of living with their parents, 62% said they fear this prevents them from having independence.

Shelter warns that current Government schemes, such as Help to Buy, do not help those on ordinary incomes. It notes that young people are left with just two choices – costly and unstable private renting or living with their parents.

The survey of 4,069 adults was conducted between 21st-23rd September.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proportion of House Sales Falling Through at Lowest Level Since 2012

Published On: October 7, 2015 at 9:43 am

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Proportion of House Sales Falling Through at Lowest Level Since 2012

Proportion of House Sales Falling Through at Lowest Level Since 2012

The amount of house sales falling through is at its lowest level since 2012, according to statistics published by Quick Move Now.

The study reveals that in the third quarter (Q3), less than one in five sales, or 20%, fell through, down from 36% reported at the end of Q2.

The data shows that the six-month average fall through rate was slightly lower at the end of Q3 than it was at the end of Q2.

Business Manager at Quick Move Now, Danny Luke, comments: “As the property market becomes more competitive, buyers are coming to the market better prepared in order to make themselves more attractive to vendors when competing for property.

“Often, buyers will already have sought financial advice, have mortgage offers in place and taken time to really consider affordability.”

He explains: “They know what they can afford and they know what they’re looking for, so when they find a good property they want to snap it up as quickly as possible and not risk losing out to another buyer.

“Also, with continued market buoyancy and predicted interest rate rises, buyers are keen to secure properties quickly before they’re priced out of the market.”1

1 http://www.propertyindustryeye.com/number-of-house-sales-falling-through-at-lowest-level-since-2012/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlord Fined for Fire Safety Breach and Operating as HMO

Published On: October 7, 2015 at 8:38 am

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A landlord has been found guilty and fined for fire safety breaches and denying that his property was being let out as a House in Multiple Occupation (HMO).

Landlord Fined for Fire Safety Breach and Operating as HMO

Landlord Fined for Fire Safety Breach and Operating as HMO

Zakaria Rmiki, the owner of the home in Watford, was fined £2,500 and ordered to pay costs of £5,250 after appearing at Stevenage Magistrates’ Court last week.

Although he pleaded not guilty, Rmiki was found guilty of failing to make the property safe for his tenants.

Watford Borough Council officers that visited the home discovered that it did not have any fire safety measures in place.

Rmiki also denied to the authorities that it was being used as an HMO.

The officers then found eight pieces of post addressed to numerous people hidden in the chimney flute, despite Rmiki stating that just three brothers lived in the home.

Additionally, the inspectors found several mattresses in one bedroom and a number of female belongings throughout the property.

Rmiki had previously been served an improvement notice by the council, but failed to conduct the work in the specified timescales.

Although the property was being let to just one person at the time of re-inspection, the council decided to prosecute as it did not believe that the home would not go back into HMO use.

Mayor of Watford Borough Council, Dorothy Thornhill, comments: “This landlord was clearly out to deceive the council and make money at vulnerable people’s expense. We will not tolerate this.

“We tried to work with Zakaria Rmiki in order to help him make the improvements needed and avoid bringing this to court. Unfortunately, his continued avoidance of the council and failure to do the works left us with no option but to prosecute.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/landlord-fined-for-fire-safety-breach-and-denying-hmo-use

 

Investors Can Buy Shares in Three Mortgaged Properties Purchased Through Crowdfunding

Published On: October 6, 2015 at 4:53 pm

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For the first time, three properties have been purchased through crowdfunding and mortgaged at 50% before being offered to investors.

Investors Can Buy Shares in Three Mortgaged Properties Purchased Through Crowdfunding

Investors Can Buy Shares in Three Mortgaged Properties Purchased Through Crowdfunding

The scheme was launched by Property Partner, which was established this year.

The flats in West Drayton, near Heathrow Airport, are owned by a company, and therefore, investors will be buying shares in the firm rather than in the properties.

As a company owns the properties, investors will not be affected by the buy-to-let tax changes announced in the summer Budget. Instead, they will be able to deduct the full costs of the mortgage from their profits.

Until this latest scheme, all of Property Partner’s properties were bought outright with cash.

Shares in the company that owns the West Drayton flats can be purchased from £50.

Altogether, the flats were bought off-plan for £885,000. The first was purchased in April and the other two were acquired from investors that needed to sell on their contracts.

Consequently, Property Partner bought the three flats at a discount and the current valuation is £960,000 – the buy has already made a paper profit.

Property Partner launched in January and has so far brought in almost 4,000 investors, who have crowdfunded over £8.5m in purchasing properties.

Individual investments range from £50 to more than £100,000 and shares can be traded on the scheme’s secondary exchange.

The property owners pay 10.5% + VAT of rental income for management services.

The latest addition to the sector is a firm called Propology. It plans to source properties through developers and estate agents.

Investors must provide at least £500. They then receive 100% of the net rental income plus quarterly dividends.