Written By Em

Em Morley

Inventory clerks can check smoke alarms

Published On: October 3, 2015 at 10:39 am

Tags: carbon monoxide,landlords,smoke alarm

A weight has been lifted off the shoulders of many landlords and letting agents, with the news that they can utilise the services of their inventory clerk to carry out mandatory checks on smoke detectors and carbon monoxide alarms.

From October 1^st 2015, landlords in England will be permitted to install smoke detectors on each floor of their property. In addition, carbon monoxide alarms must also be fitted in any room within rental accommodation with a fuel burning appliance, inclusive of open fires and wood burners.

Checks

The new regulations state that both of these alarms must be tested at the beginning of every tenancy on or before the 1^st October. Any landlord who does not comply with the new legislation could be faced with a fine of up to £5,000. The requirements do not apply to renewed or statutory period tenancies.

However, there has been some confusion over the new rules and just who is able to carry out the necessary checks. Some landlords have raised concerns that they would have to employ a tradesman to undertake these actions.

Patricia Barber, chair of the Association of Independent Inventory Clerks said that its own independent inventory clerks should be able to carry out the mandatory checks at the start of each tenancy if required.

Inventory clerks can check smoke alarms

Procedure

‘As part of an inventory compilation or check in procedure at the beginning of the tenancy, an AIIC independent inventory clerk will be able to check smoke detectors and carbon monoxide alarms for power where possible and report back any problems found,’ Barber explained.[1]

‘This then paves the way for landlords or their property managers to carry out subsequent checks during mid-term visits. While the majority of landlords and agents may already have some sort of procedure in place, hopefully this news will help to put some property professionals’ minds at ease, saving time and money,’ she continued.[1]

Concluding, Barber said, ‘as always we maintain the importance of making sure that any property inventory is carried out by an independent inventory clerk.’ She said that, ‘AIIC clerks are highly trained and can report the presence of each alarm a test for power at the start of the tenancy. A tenant will then be asked to sign a statement agreeing the clerk’s findings.’[1]

[1] http://www.propertywire.com/news/europe/uk-landlords-alarm-checks-2015092811026.html

Flatshare Rents in Expensive Towns Rise by 30% in Three Years

Published On: October 2, 2015 at 3:48 pm

Author: Em Morley

Categories: Property News

Tags: EasyRoommate London,flat and house shares,flatshares in London,flatshares Oxford

The cost of flatsharing in some of the priciest towns and cities in the UK has surged by around 30% in the last three years, with renters in five cities paying over £500 per month to rent a room in a shared house.

Flatshares are still cheaper for most tenants than living alone, but as the amount of people who cannot afford to buy a home rises, prices are continuing to grow.

Data from flatsharing website EasyRoommate shows that since 2012, the greatest increase in room rent prices was seen in Oxford. The city’s high demand from students and some of the most expensive properties in the country are fuelling price rises.

EasyRoommate reports that the average cost of a room in Oxford listed on its site has increased by 29% since 2012, to £571 per month.

Other parts of the South East have seen similar price growth. In Reading, rents have risen by 23% to an average of £514 a month and in Cambridge, prices have increased by 21% to £552.

Flatshare Rents in Expensive Towns Rise by 30% in Three Years

London is still the most expensive place to flatshare, with the average price of a room advertised on EasyRoommate heading towards £700 per month.

The average cost of renting a room in the capital has increased by almost 14% in the last three years, to £692 a month, or £8,300 per year.

The average room to rent in Brighton and Hove also costs over £500 a month.

EasyRoommate revealed that in just three areas – Milton Keynes, High Wycombe and Maidstone – the price of renting is less than the amount flatsharers can afford to pay.

In London, flatsharers must find an average of £94 more a month than they can afford.

Chief Executive of EasyRoommate, Karim Goudiaby, urges: “Our research reinforced the urgent need to replenish the housing supply in Britain with affordable accommodation.

“There is a pressing need to tackle the housing crisis to mitigate inflation with rented room prices and to ensure Britain’s renters can find a room that best suits them and their budget.”¹

Separate research from housing charity Shelter found that in the last year, one in five working adults aged 20-34 have moved back in with their parents and a further 15% have never moved out.

It says that more than half of these adults have moved back because of the high cost of housing. A third said they hoped to save for a deposit for their own home and a fifth simply said that renting is too expensive.

Chief Executive of Shelter, Campbell Robb, comments: “When getting even a toe on the housing ladder is completely out of reach and private rents are sky-high, it’s no wonder so many working adults are having to move back into their childhood bedroom.”

He believes that Government schemes, such as Help to Buy and Starter Homes – which will see new houses built sold at 20% below market rates – do not help those on ordinary incomes.

Robb adds: “With plans to sell off many of the few genuinely affordable homes we have left, expensive and unstable private renting or living with mum and dad are the only options.”¹

Policy Manager at lobby group Generation Rent, Dan Wilson Craw, says the housing crisis is “much more than a London problem”.

He continues: “Rents are rising anywhere the economy is growing and that makes life harder for people who are already struggling or not enjoying a wage increase.

“For some, moving back in with parents while they accumulate a deposit rent-free is the only way they’ll get a home of their own, but not even that works if the only jobs are at the other end of the country.”¹

The most expensive listing on EasyRoommate is a double room in a two-bedroom flat in central London, close to Oxford Circus. The room costs £3,200 per month, or £38,400 a year, and that does not include bills.

The cheapest is in Belfast, at just £165 a month. The average room in the city costs £278.20 per month.

¹http://www.theguardian.com/money/2015/oct/02/cost-of-flatsharing-in-uks-priciest-towns-rises-by-30-in-three-years

Prime country house prices continuing to increase

Published On: October 2, 2015 at 3:11 pm

Author: Em Morley

Categories: Property News

Tags: country houses,prime property market,Stamp Duty

A new report has indicated that prime country house prices continue to rise, with tax policy beginning to make an impact at the top end of the market.

Data from an investigation by Knight Frank shows that prime country house prices increased by 0.7% between July and September. Prices for this type of property have now increased for the eleventh quarter in succession.

Increases

Yearly growth also increased to 2.7%, up from 2.3% during Q2 of this year but down from its recent high of 5.2% in 2014. As a whole, the market is continuing to feel the impact of the increased cost of stamp duty, following the changes in December 2014.[1]

Latest figures from the Land Registry indicate that between January and July of this year, there were 35% less sales of homes with a value of more than £1.5m outside of London from the same time last year.

The prime market below £1.5m has been less affected by the changes. In fact, prices for homes valued under this figure have grown by almost 4% in the year to September. In comparison, properties over £1.5m have seen a price rise of 2%.[1]

Imbalance

Homes under £1.5m, price growth has been driven by demand for homes in town and city centres. These include regions such as Bristol, Bath and Oxford, where buyers are attracted to features such as good schooling and transport links. There is however a significant differentiation between property prices in the prime country market and in London. Evidence from agents suggests that there is significant demand from purchasers in the Home Counties and in the South West.

Prime country house prices continuing to increase

Prime country house prices are still 14% below their 2007 peak, whereas in contrast, prime prices in London are currently 34% higher than their previous peak values. A surge in prices in the capital during the last few years means that buyers looking to swap city life for one in the country are getting more from their money.

‘With such an imbalance in market values between London and country prices together with the surprise Conservative victory in the general election, we all expected much more activity,’ said Rupert Sweeting, Head of Knight Frank Country. ‘The two stumbling blocks have been the introduction of higher rates of stamp duty which means that at £10m, a buyer may be paying a further £1.2m on top. This, combined with the new tax regime being introduced through the Finance Act has caused many to put on hold their buying plans until they have digested the minutiae of that Act,’ he continued.[1]

‘However, activity is picking up this autumn in the realisation that country property is looking good value and we have seen bidding wars for houses if and when the guide price is at the right level. Looking ahead, with another four and a half years of Conservative rule and the economy looking stronger, we expect activity levels to rise,’ Sweeting added.[1]

[1] http://www.propertyreporter.co.uk/property/prime-country-house-prices-continue-to-rise.html

Housing Crisis is Very Real, Insists Homelessness Charity

Published On: October 2, 2015 at 2:43 pm

Author: Em Morley

Categories: Landlord News

Tags: causes of homelessness,housing crisis,housing crisis solutions,private rental sector housing

Earlier this week, Simon Jenkins wrote on The Guardian website that the housing crisis is not real and “there is no solution” to it.

Housing Crisis is Very Real, Insists Homelessness Charity

He stated: “As in all political crises, there are tribal myths and economic realities. When the myths win, policy degenerates into chaos and counter-productivity.”

He then simply stated that one of the myths is, “That there is a housing ‘crisis’. There is none.”

Now, the Chief Executive of homelessness charity Crisis, Jon Sparkes, has responded to the piece.

He begins: “Simon Jenkins is mistaken on a number of points. The housing crisis is very real: we see the worst effects of it everyday, and not just in London.

“Since 2010, all forms of homelessness in England have risen. Rough sleeping has increased by 55%, while thousands are forced to live in precarious and dangerous conditions just to keep a roof over their heads. If this isn’t a crisis, what is?”

He then addresses the private rental sector: “Private renting in England is failing to provide people with homes that are decent, safe, secure and affordable. Too many people are living in appalling conditions – almost a third of privately rented homes fail to meet the Government’s decent homes standard.

“Compared to other parts of western Europe, tenants in England have very little security. Many can be evicted from their homes with little notice and with no duty on the landlord to prove they are at fault.”

He insists: “With rising rents and severe cuts to housing benefit, the loss of a private rented home is now the leading cause of homelessness. This is unacceptable. Our politicians can and must do something about it.

“We need decisive action to make the private rented sector more accessible and affordable, along with radical solutions to tackle the severe shortage of affordable homes. At the same time, we must have a real safety net for anyone finding themselves in difficulty.”¹

¹http://www.theguardian.com/society/2015/oct/01/the-housing-crisis-is-by-no-means-a-myth

Expert Says Official Guidance on Revenge Evictions Contradicts the Law

Published On: October 2, 2015 at 1:39 pm

Author: Em Morley

Categories: Landlord News

Tags: landlord evictions,revenge evictions,section 21 notice changes,tenant eviction law changes,tenant evictions

Yesterday, ministers published new guidance for the private rental sector, stating that tenants will be able to avoid eviction by complaining about repair issues to the local authority, without telling the landlord or letting agent.

The landlord or agent would not be aware of any issue and thus could not address the problem before the renter instead goes to the local authority.

If the local authority decides to address the issue, the tenant cannot be served with a section 21 notice for six months, at which point the landlord or agent would learn of the problem.

Expert Says Official Guidance on Revenge Evictions Contradicts the Law

The allegedly flawed guidance on revenge evictions was described by a lettings expert as “ludicrous”.

He believes the guidance contradicts the legislation.

The footnote to the new guidance reads: “Where the local authority has served an improvement notice or notice of emergency remedial action, the tenant is protected from eviction for six months from the date of service of that notice, regardless of whether they raise the issue with the landlord first.”

However, the law states that the tenants should raise repair issues first with the landlord or agent, who must then give a quick response.

Only if there is no response, or an inadequate one, the tenant can go to the local authority, which might then serve a notice.

The Director of Fixflo – which specialises in reporting repairs – Rajeev Nayyar, says he could not believe what he read in the guidance footnote.

He says: “If the tenant does not have to tell the landlord or agent of a repair issue, how are they expected to remedy a problem they know nothing about?”

He believes that the new guidance is incorrect, “with the potential to lead tenants, landlords and agents, with severe consequences.”

He adds that the guidance seems to have been rushed.

Nayyar continues: “The provisions are premised on the fact that a landlord should not serve a section 21 notice in retaliation for tenants requesting a repair.

“As such, the notification of a repair request by the tenant to their landlord is both conceptually and factually a necessary part of any section 21 process that could be considered retaliatory.

“The guidance states that if the local authority has served an enforcement notice or emergency remedial action notice then a tenant will be provided with protection from eviction for six months from the date of notice irrespective of whether they have first raised the issue with their landlord.

“This conflicts with the legislation, other sections of the guidance and common sense.

“If followed, it has the potential to mislead tenants as to their rights, and agents and landlords as to the necessary steps to better protect their position in light of the change in law.”¹

The footnote is footnote 9 on page 9: https://www.gov.uk/government/publications/retaliatory-eviction-and-the-deregulation-act-2015-guidance-note

¹http://www.propertyindustryeye.com/new-bombshell-as-official-new-guidance-on-revenge-evictions-contradicts-the-law/

Written By Em

Em Morley

Inventory clerks can check smoke alarms

New Rental Property Finding Website Inspired by Airbnb and Tinder

Flatshare Rents in Expensive Towns Rise by 30% in Three Years

Prime country house prices continuing to increase

Housing Crisis is Very Real, Insists Homelessness Charity

Expert Says Official Guidance on Revenge Evictions Contradicts the Law