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Evictions Firm Investigating Rogue Letting Agents

Published On: September 29, 2015 at 1:51 pm

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Section 21

A tenant evictions firm is currently investigating several rogue letting agents.

Paul Shamplina, of Landlord Action, states that the number of current investigations is unusually high for the company, which is used to evicting tenants on behalf of landlords and agents.

Evictions Firm Investigating Rogue Letting Agents

Evictions Firm Investigating Rogue Letting Agents

In all cases, landlords have instructed the studies.

Shamplina explains the reasons for investigations: “The three most common complaints from landlords about agents are: The agent has nicked my rent money; the agent failed to protect the tenant’s deposit and I could be liable to a penalty of three times that amount; and I paid the agent for a full management service but didn’t get one.”

He adds: “I have literally just taken a phone call about an agent who was supposedly liquidated a few years ago but is apparently still trading.”

Shamplina also sits on the advisory council for the Property Redress Scheme. He continues: “My concern is that bad agents are giving the vast majority of good agents a bad name.

“A landlord who has had a bad experience with an agent is unlikely to trust even a good one and will go down the self-management route, even if they find themselves out of their depth.”

Last week, Shamplina spoke at the Guild of Letting and Management conference.

His message to agents was to focus on providing landlords with a good service, while allowing specialist firms to deal with problems caused by bad tenants and evictions.

He believes that there are currently many problems with the evictions process, including a lack of judges and admin staff at courts, and a growing shortage of bailiffs.

He said: “You hear a lot about bad landlords, but a lot less about bad tenants who landlords want to get rid of.

“Typically, you don’t hear from these tenants for four or five months, during which no rent is paid. Then the tenant pitches up at court, complaining of disrepair, which is the best defence to an eviction.

“Or the tenant will take free advice from the court’s duty solicitor. In principle, this is a good thing, but some tenants can abuse it by finding out how they can delay the eviction process.”1 

1 http://www.propertyindustryeye.com/tenant-evictions-firm-investigating-number-of-rogue-agents/

 

Sales Drop by 13% in a Year, Reports Land Registry

Published On: September 29, 2015 at 12:56 pm

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The amount of homes sold in England and Wales has dropped by 13% over the last year, reports the Land Registry.

The Land Registry’s market trend data report, containing its latest figures, reveals that there were just 70,404 completed house sales in June, compared with 80,823 in June last year.

The data also shows that the average house price has risen annually to August, by 4.2%, making the average property price in England and Wales £184,682. Prices grew by 0.5% between July and August.

Sales Drop by 13% in a Year, Reports Land Registry

Sales Drop by 13% in a Year, Reports Land Registry

Group Managing Director for Mortgages at Aldermore Bank, Charles Haresnape, comments on the findings: “While the annual price increase of 4.2% in the average house price will bring positive news for homeowners, the 13% decrease in completed house sales in England and Wales compared to June 2014 is worrying news.

“The fall may in some part reflect the impact of tighter lending criteria, but price rises are likely to prove a constraint on the number of first time buyers.”1

The highest price rise over the past year was experienced in the East of England, with homes now costing an average of 8.4% more than they did in August 2014. London witnessed the greatest monthly growth, of 1.7%.

The highest annual price increase in the capital was seen in Newham, East London, at 15.5%.

Chairman of national agents Jackson-Stops & Staff, Nicholas Leeming, explains: “Buyers are seeking areas offering the best value and proximity to work, which reflects not only the performance in the East of England, where the Cambridge effect and regional investment are bearing fruit, but also in boroughs such as Newham and Barking and Dagenham.

“On the wider front, we are seeing a continuing trend of higher property values for reported sales, but of more concern is the reducing numbers of properties coming to the market.

“However, this supply constraint in the middle markets is not being matched in the higher value sector, where many properties are struggling to find buyers at their current guide prices, mainly because of the effect that the Stamp Duty increase last year has had.”1 

Property prices in the North West rose by the lowest amount, 0.2%, while the region also experienced the greatest monthly decline, of 1.4%.

Prices also dropped in Yorkshire and the Humber at 0.3% and the East Midlands at 0.2%.

The South East saw annual house price growth of 7.6% and London’s average price is now 6.6% higher than last year.

The data also reveals that semi-detached house prices increased more than any other property type. Annual growth of 4.7% for these properties compares to a 4.5% rise for detached homes.

The price of flats and maisonettes is now 4% higher than in August 2014 and terraced houses cost 3.7% more.

Chief Executive of housing charity Shelter, Campbell Robb, says continuing price growth is “pushing the dream of a stable home out of reach for millions”.

He continues: “Piecemeal Government schemes like Help to Buy or Starter Homes just aren’t helping the ordinary families who are completely priced out of a home of their own and left to face the huge costs and instability of private renting.

“The autumn spending review is the Government’s last chance to show they’re serious about giving millions of people a fair shot at a stable future by investing in the genuinely affordable homes they desperately need.”1

1 http://www.propertyindustryeye.com/land-registry-says-sales-fall-by-13-in-year/

 

Over half of borrowers to struggle if rates rise

Published On: September 29, 2015 at 12:21 pm

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A concerning new report indicates that over half of the total number of borrowers in the UK believe that they will struggle or fall into arrears with mortgage repayments, should interest rates rise.

Research published by the Building Societies Association suggests that 52% feel they would be in trouble, should the rates increase.

Issues

Further data from the survey shows that 10% of respondents would face severe financial hardship. 14% said they would be able to keep up with repayments, albeit at a constant struggle. 23% expressed concern that they would experience difficulty from time to time.[1]

After being questioned on the impact that rate rises would have on their lifestyle, 18% of borrowers said they would have to cut down on essentials, such as food or clothing. 15% said that they would have to work more hours to keep on top of their mortgage commitments.[1]

‘Concern from borrowers is natural when it comes to interest rate rates,’ noted Paul Broadhead, head of mortgage policy at the BSA. ‘There are at least 1.85 million home owners that have never experienced a rate rise, we have had a record low Bank Base Rate for so long, it is unsurprising that some people are concerned that a rise in rates will affect their lifestyles and ability to make mortgage payments.’[1]

Broadhead feels that, ‘clearly, some of the actions borrowers say they would take may not be within their control, for example working additional hours. Our advice to those concerned about interest rate rises is to start thinking about how they will manage the increased costs.’ He suggests that this could include, ‘creating a household budget to taking a look at mortgage calculators and rescheduling unsecured loans such as credit cards. Free money advice is available for those that are concerned.’[1]

Over half of borrowers to struggle if rates rise

Over half of borrowers to struggle if rates rise

Optimism

‘The good news is that the results of our survey show nearly a quarter of borrowers will not have to make any changes to their lifestyle when interest rates rise,’ Broadhead continued. ‘With the economy more stable than it has been for years, this is a positive result.’[1]

‘That said, with inflation near zero and the Monetary Policy Committee voting by a majority of eight to one to maintain the Bank Rate at 0.5%, it is looking unlikely that things will change before well into 2016,’ he added.[1]

Joanna Elson, chief executive of the Money Advice Trust, believes that after years of rates being at such a low level, borrowers are beginning to plan for the inevitable rise. She said however, ‘nevertheless, many mortgage payers are still in for a big financial shock when rates do start to climb and we remain concerned that many will fall into problem debt as a result. We must not forget that renters too, are likely to be affected as extra mortgage costs are passed on by landlords.’[1]

‘Households now have a window of opportunity to re-assess their budgets, look again at their borrowing and think about how they will cope with higher interest rates. It is crucial they take advantage of this and prepare themselves now,’ Elson concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-home-lending-poll-2015092911031.html

 

 

Website That Provides Details of Homes and Their Owners Criticised by Police

Published On: September 29, 2015 at 11:53 am

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A website that provides details of homes and their owners has been criticised by police and Neighbourhood Watch groups.

The site, 192.com, features photographs, maps, addresses and property prices, which could make secluded and isolated homes vulnerable. A police source adds: “There are fears criminals or even terrorists could use it to find out who lives where.”1

Earlier this year, the site launched a section called Property Report, which allows users to view interior photographs of the home from the last time it was marketed on Zoopla.

Website That Provides Details of Homes and Their Owners Criticised by Police

Website That Provides Details of Homes and Their Owners Criticised by Police

The firm states that homeowners can opt out and request that images be removed.

A 192.com spokesperson states that the service is only supplying information already available online: “We were aware security concerns would be a bone of contention but the vast majority of people are happy with the service.”1

Photographs are available for homes that have been marketed with the last ten years.

Each property report includes details such as the price paid, current mortgage provider, neighbouring house prices and local crime levels.

When Property Report launched, 192.com called it “the most comprehensive property information tool available to the general public”2.

The feature targets homebuyers and costs £14.99 + VAT to use.

North Wales Police has sent an internal memo, warning officers about the site, according to a story in the Mirror.

The Chairman of Britain’s Neighbourhood and Home Watch Network, Jim Maddan, comments: “I can’t think of any other site which gives out so much personal information all in one go.

“It concerns me this could make it easier for thieves, cold callers and fraudsters to target individuals and the elderly.”2

However, 192.com’s Product Director, Dominic Blackburn, says: “I was surprised by the story in the Mirror, as 192.com has been around since 1997 supplying data that is available in the public domain.

“We take privacy very seriously and only publish data that is freely available, such as the open electoral roll and directory enquiries phone numbers. The data given to us already excludes those people who have opted out, and we enable people to remove themselves from our site by contacting us.

“The Property Report is a new product that compiled data from many different sources that are all publicly available. It is designed to be a one-stop report on any home in England and Wales for use by homebuyers or house hunters to quickly get all the relevant information and costs £14.99 + VAT.”2 

1 http://www.mirror.co.uk/news/uk-news/property-website-192com-condemned-cops-6521579

2 http://www.propertyindustryeye.com/website-which-gives-details-of-homes-and-their-owners-criticised/

First-time buyer prices rise again

Published On: September 29, 2015 at 11:24 am

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New research conducted by estate agents haart suggests that UK property prices rose again during the last month, to continue the upward spiral consistently seen over the rest of the year.

Growth

According to the report, British property prices were up 7.3% annually and by 0.9% on the previous month. This took the average home to a price of £219,315.

Moreover, the number of new buyers registering has risen by 1.7% in the last month and by 10% annually. However, supply of new homes continues to be the Achilles heel of the market, with numbers down by 3.6% monthly and by 14.7% on the same period last year. As a result, twelve buyers are competing for every property that comes onto the market, the highest ratio for 17 months.[1]

First-time buyer house prices are accelerating at a quicker pace than the rest of the market, up 9.9% annually and by 0.9% over the month. The average price of a starter home is now £169,259.[1]

The number of first-time buyers is up by 8.5% on last August and there has been a monthly rise of 1.2%. Of all mortgages written in August, 41.6% were written for first-time buyers. This was a drop from 45.9% at the same time last year, but a rise of 0.3% from July. Significantly, the average first-time buyer deposit rose by 7% n the last month to reach £34,472.[1]

Concern

Paul Smith, CEO of haart, said that, ‘it is concerning to see the growth in the price of starter homes outstripping the rest of the market as it means it is becoming increasingly difficult for first-time buyers to get on to the property ladder.’ Smith feels that the, ‘10% annual increase in first-time buyer house prices comes as a result of a shortage of homes, due to lack of building but also the absence of fluidity in the upper echelons of the market, as people who might otherwise be moving to their second or third hold on to their current property for its value to increase further.’[1]

First-time buyer prices rise again

First-time buyer prices rise again

‘However if the seller is upsizing, any increase in the value of their current home will be negated by the increase in the price they pay for their next, more expensive property. With good availability of fixed-term mortgages and a number of known unknowns in the near future such as interest rate rises our advice for on-the-fence sellers is to do so now while the conditions are favourable,’ Smith continued.[1]

Concluding, Mr Smith said that haart’s research, ‘shows first-time buyers must now find a 20% deposit of around £34, 000-30% greater than the average salary. These are likely funded by the Bank of mum and dad so their offspring can take advantage of current interest rates and mortgage availability. We need all levels of the market to take advantage of current positive market conditions to ensure there is movement and appropriate homes are available to the various demographics looking to buy or move up the property ladder.’[1]

[1]http://www.propertyreporter.co.uk/property/ftb-house-prices-outpace-rest-of-market.html

 

 

House Building Set to Rise This Year

Published On: September 29, 2015 at 10:52 am

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House Building Set to Rise This Year

House Building Set to Rise This Year

House building levels are set to rise this year in the UK, according to data from the National House Building Council (NHBC).

Between June and August this year, 40,101 new homes were registered, an 11% increase on the same three months in 2014, when 36,149 new homes were registered.

Of these registrations, 8,310 were built in Greater London, while fewer homes were built in Wales, the South East, South West, Yorkshire and the Humber and the West Midlands.

The amount of new home registrations in the private sector during the June-August period hit 30,210, compared with 27,072 last year. In the public sector, 9,891 new homes were registered, up from 9,077 in the same three months in 2014.

However, the figures reveal that registrations for August alone were down by 6%, from 11,037 last August to 10,362 this year.

Last month, the private sector saw a slight drop of 1%, from 8,476 in August 2014 to 8,401 this year, and public sector registrations declined by 23%, at 1,961 compared to 2,561 last year. This decrease follows six consecutive months of growth when compared to last year.

Chief Executive of the NHBC, Mike Quinton, comments: “Despite a slight decrease for August, overall registration levels for the rolling quarter show the same steady growth we’ve seen throughout 2015.

“However, we are now seeing registration volumes fall in the public and affordable sector after a good start to the year.

“This may be due to many housing associations holding back on developments in light of welfare reforms and the cap on rental increases.

“We will closely monitor this over the coming months, along with the private sector, as the house building industry strives to build more new, quality homes that the UK needs.”1

1 http://www.propertyindustryeye.com/house-building-on-course-to-increase-this-year/