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Em Morley

One in Four Landlords Do Not Provide Tenancy Agreements

Published On: September 29, 2015 at 9:51 am

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Around one in four landlords are not providing their tenants with written tenancy agreements, reveals a study by flat sharing website, EasyRoommate.

This revelation arrives just days before new legislation is enforced, which will make it difficult for landlords and letting agents to evict renters without first complying with specific regulations.

One in Four Landlords Do Not Provide Tenancy Agreements

One in Four Landlords Do Not Provide Tenancy Agreements

From Thursday 1st October, a valid section 21 notice can only be served if the tenant has been provided with an Energy Performance Certificate (EPC), a gas safety certificate and a copy of the most recent version of the How to Rent booklet.

However, according to the EasyRoommate survey, many landlords do not provide the very basic paperwork required, with 25% of tenants stating that their landlord did not offer them a written rental contract.

The study also found that 25% of renters said that their landlords did not always make urgent repairs on issues such as plumbing, central heating, electrics and roof leaks.

An EasyRoommate statement reads: “For landlords who do not uphold their responsibilities, the time for change is now.

“The Government is determined to crack down on rogue landlords and drive them out of business. Among the measures that have been introduced by the Government, such as protecting tenants against retaliation eviction serving under section 21, rogue landlords will be heavily fined for housing offences, such as:

  • “Providing a local authority with false or misleading information following a statutory enquiry.
  • “Permitting or causing overcrowding.
  • “Illegally evicting or harassing a residential occupier.
  • “Continuing to let to an illegal immigrant.
  • “Any offence under the Housing Act 2004.”1

Chief Executive of EasyRoommate, Karim Goudiaby, says: “We believe that flat sharing can be a wonderful experience, given the right conditions.

“Because we don’t want to leave to chance, we have a dedicated moderation team working around the clock to ensure the advertised flats are in decent living conditions.

“Rogue landlords are far from being the majority, but, once in a while we see landlords trying to fit 20 tenants in a four-bedroom flat, or advertising packed rooms looking more like a fire hazard than a home.

“That’s why no listing is published on the site before it has been reviewed by the moderating team. We look at the description, pictures, rent price… anything that can give us an indication of the living conditions.”1 

The research also revealed that around 20% of renters are still not offered deposit protection.

1 http://www.propertyindustryeye.com/one-in-four-landlords-not-providing-tenancy-agreements/

 

 

 

 

Three-bed homes see largest rent rises

Published On: September 29, 2015 at 9:15 am

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The new index from Landbay Rental suggests that UK rents are rising fastest for those residing in three-bedroom properties.

Data from the report shows that three-bedroom homes recorded a 4.6% annual growth in August, in comparison to the UK average of 3.3%.

Growth

Landbay Rental’s index is the first to track rental trends to the county and London borough level, in combination with the number of bedrooms. The areas where three-bed rental rises are highest are predominantly located within commutable distance of London, such as Windsor, Southend-on-Sea and Swindon. Growth in these regions was up annually by 22%, 20% and 13% respectively.[1]

Across Britain as a whole, rents climbed by 3.3% in the 12 months to August to stand at £1,281, well ahead of inflation. However, rents have slowed from a peak growth of 4.9% recorded in February.[1]

What’s more, data from the investigation shows that average UK rents fell between May and July 2015, with August seeing the first monthly growth since March.

Strong

For all property types, the largest rental rises outside of London were in Southend on Sea (12.6%), York (12.1%) and Wrexham (11.1%). At the other end of the scale, rents in Cheshire fell by 6.9% in August, followed by Aberdeen (5.7%) and Buckinghamshire (3.5%).[1]

Three-bed homes see largest rent rises

Three-bed homes see largest rent rises

‘At the national level, rents performed very strongly in 2014 after a dip in 2013,’ noted John Goodall, chief executive officer of Landbay. ‘This year has seen rents continue to grow, but at a slower rate. The macro trends at the national level aren’t uniform when you drill into the local level and look at different types of property, which is why we want to establish a rental index that gives landlords, tenants and others interested in the private rented sector access to a more granular level of insight,’ he continued.[1]

Concluding, Mr Goodall said, ‘for investors in the private rental sector, our data makes family homes in the south east look like an attractive proposition. As well as performing well now, rents for three bedroom homes saw the smallest falls when rents dipped in 2013. The challenge for investors looking to benefit is finding suitable properties for professionals at a cost that produces a good yield.’[1]

[1] http://www.propertywire.com/news/europe/uk-rental-market-index-2015092511024.html

 

 

Northern Ireland to see largest house price increase in UK

Published On: September 28, 2015 at 4:19 pm

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A new report suggests that Northern Ireland is to see the largest property price growth in the UK during 2015.

The latest residential market survey from the Royal Institution of Chartered Surveyors and Ulster Bank indicates that the region is likely to see continued house price rises for the remainder of the year.

Rises

Data from the report shows a net balance of 72% of Northern Ireland surveyors stated that property price increased during August. This represented a higher net balance than all other UK regions, apart from East Anglia.

Surveyors are also confident that these increases seen in August will continue, with 40% of respondents expecting sales levels to actually increase during the next three months.

‘A shortage of new instructions has characterised the Northern Ireland property market this year, with buyer enquiries outstripping the rate at which properties have been coming to the market,’ observed RICS Northern Ireland residential property spokesman, Samuel Dickey.[1]

Northern Ireland to see largest house price increase in UK

Northern Ireland to see largest house price increase in UK

Seasonal Stability

Dickey continued by suggesting, ‘as we move into the Autumn, we should see more instructions, helping address this imbalance and ease upward pressure on prices. On the whole, RICS forecasts that average prices in Northern Ireland will have risen by 11% between the fourth quarter of 2014 and the fourth quarter of 2015.’[1]

‘This represents robust growth, but we should remember that this is from a low base, with average prices still someway from their 2007 peak,’ he added.

[1] http://www.propertywire.com/news/europe/rics-northern-ireland-prices-2015092811027.html

 

 

 

New five-year fix at Hinckley and Rugby

Published On: September 28, 2015 at 3:26 pm

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Hinckley and Rugby Building Society has today announced changes to its high LTV products.

The organisation has launched a new 95% LTV mortgage, alongside cutting rates on two other high-end deals.

Changes

Coming with a £199 booking fee and £800 completion charge, the new 95% LTV mortgage is a five-year fix at 4.79%. In addition, there are free valuations up to £1m.

However, the mortgage does have ERC’s ranging from 5% in year one to 1% in year five. Overpayments of up to 10% per annum are permitted, without incurring ERC’s.

Included in the rate cuts are a two-year fix at up to 95% now at 3.95%, from 4.29% and a five-year fixed rate deal at 3.54% up to 90% LTV, from 3.79%.[1]

For the two-year discount buy-to-let mortgage at up to 75% LTV, the building society has moved the completion fee from £999 to 2.5% of the advance payment.[1]

New five-year fix at Hinckley and Rugby

New five-year fix at Hinckley and Rugby

Hinckley and Rugby chief executive Chris White commented, ‘available direct and through brokers, the new five-year fix is designed to be attractive to first time buyers and well as the wider market.’[1]

‘These are very attractive reduced rates that offer customers the certainty of a fix followed by the value of a discounted rate,’ he added.[2]

[1] http://www.propertyreporter.co.uk/finance/new-5-year-fix-launches-at-hinckley-and-rugby.html

[2] www.mortgagefinancegazette.com/latest-news/hinckley-rugby-cuts-rates-on-high-five-litv-fixes

Annual house price growth slows

Published On: September 28, 2015 at 2:46 pm

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New data from the Land Registry indicates that the average price of a UK property increased at its lowest annual rate since November 2013, with a recorded rise of 4.2%.

Rises

During August, house prices rose by 0.5% in comparison to July, bringing the average property value in England and Wales to £184,682.[1]

In addition, data from the report shows that the total number of transactions has decreased during the last twelve months. Between March 2014 to June 2014, there was an average of 73,985 sales per month, which dropped to 65,550 in the same three month period one year later.[1]

What’s more, the number of completed house sales in England and Wales dropped by 13% to 70,404, in comparison to 80,823 in June 2014.[1]

Regional rates

Regionally, data shows that the region with the greatest annual price increase is the East, where movement rose by 8.4%. London saw the top rise in property prices in August, with values increasing by 1.7%.[1]

The North West saw both the lowest monthly and annual property price growth, with prices falling 0.2% annually and by 1.4% in August. In total, the number of properties sold in England and Wales for over £1m fell by 17% to 1,031 from 1,237 twelve months previously.[1]

More positively, repossessions in England and Wales dropped by 43% to 498, in comparison to 868 in June 2014. Once again, the capital led the way, seeing the most prominent fall in the number of repossession sales.[1]

Annual house price growth slows

Annual house price growth slows

Encouraging

‘House prices are still rising, however it is encouraging to see some moderation in the rate of growth, with this being the slowest annual increase for two years, a statistic that will no doubt be well received by prospective buyers,’ said John Eastgate, Sales and Marketing Director of One Savings Bank. ‘With wage inflation now at a six year high, more moderate house price growth bodes well for the long-term health of the property market and it should help reduce some upwards pressure on affordability,’ he continued.[1]

Mr Eastgate believes however that we should, ‘avoid focusing too much on the short term,’ saying, ‘this month’s figures might show that price growth has slowed but the fundamentals are such that growth is inevitable over the long-term. Ultimately, the supply and demand imbalance will sustain property values. The UK is still desperately short of new housing, yet a combination of historically low mortgage rates and improving access to mortgage finance is sustaining demand.’[1]

Supply stagnation

Jeremy Duncombe, Director of Legal & General Mortgage Club, said, ‘the lack of supply is continuing to drive a wedge between house price inflation and earnings growth. He believes that, ‘as a result, homes are becoming increasingly unaffordable, putting them out of reach for many aspiring homeowners. The longer this continues, the larger the housebuilding deficit will become, making the housing crisis progressively more difficult to resolve.’[1]

‘It’s crucial that the Government and the industry work together to remove any barriers that may be limiting construction. Housebuilders are faced with a shortage of skilled workers, materials to build with, and land to build on. It’s great to see that the Government has announced a target of 1 million new homes by the end of this parliament, but this is unlikely to come to fruition until these housebuilding constraints are addressed. Construction has been insufficient for a number of years, and we need a long-term solution to this problem, rather than just a short-term pledge,’ Duncombe concluded.[11]

[1] http://www.propertyreporter.co.uk/property/annual-house-price-growth-stagnates.html

 

RICS calls for minimum money laundering competence

Published On: September 28, 2015 at 11:46 am

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The Royal Institution of Chartered Surveyors has called for, ‘minimum competency,’ requirements for sales and letting agents to deal with anti-money laundering issues.

Director of regulation for the UK and Ireland at RICS, Luay Al-Khatib, believes that competency standards should be brought in as soon as possible. In addition, he feels that these new measures should be regulated by the industry and possibly by RICS itself.

Issues

Al-Khatib told the Estates Gazette magazine that, ‘the biggest issues surrounding money laundering are perhaps ignorance and complacency.’ He added that by law, ‘agents have a responsibility to check the identity of customers.’[1]

Continuing, Mr Al-Khatib said he wants RICS to play a prominent role in any future regulation of letting and sales agents. He stated, ‘there’s a lot professional bodies can do to ensure compliance by members. RICS will be applying to become a Treasury-designated supervisory body for anti-money laundering.’[1]

In the same article, written in response to the Channel 4 documentary, ‘From Russia With Love,’the National Association of Estate Agents says the focus of agents should be on identifying and assessing buyers and sellers alike.

RICS calls for minimum money laundering competence

RICS calls for minimum money laundering competence

‘Anti-money laundering procedures in the UK have centered on the seller rather than buyer, with agents failing to appreciate the implications of the Proceeds of Crime Act,’ said NAEA managing director Mark Hayward.[1]

Overhaul

Trevor Mealham, founder of the Independent Network of Estate Agents, was more severe in his calls, stating that, ‘legislation should insist properties for sale would first be identified and registered.’ He also said, ‘geo-location, property type, usage, ownership and secondary titles could be established.’[1]

‘Using data analysis, there could be investigation triggers sent to HMRC, the Treasury, Serious Fraud and so on,’ he continued.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/9/money-laundering-rics-wants-higher-standards-and-self-regulation