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Em

Em Morley

Flat is Less Than 9 Foot Wide but Costs £46,000 a Year

Published On: September 11, 2015 at 2:58 pm

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It has just enough space for a single bed and the kitchen is concealed behind a mirror, but this flat does not come with a reasonable price tag.

The apartment on Brompton Road, in Knightsbridge, London, is believed to be Britain’s smallest. With just 72 sq. ft. of space, the flat is around a twelfth of the size of the average new home in England.

Behind a mirrored wall is the flat’s kitchen, featuring a microwave, sink, hob and fridge.

There is just about enough room for a single bed and there is one separate room, housing the shower and toilet. Renters are entertained with a mounted television on the wall.

The flat is in Princes Court, a mansion block considered one of central London’s most desirable places to live, and opposite Harrods. A three-bedroom flat in the complex costs £2.5m.

The studio apartment may be the smallest property on the rental market, but it is far from being the most affordable. At £895 per week, the tenant will pay £3,878 a month or £46,540 over the year.

This is two-and-a-half times the average rent in London and the same price as a seven-bed Grade I Listed country home in Somerset, once owned by Henry VIII.

The letting agent, Harrods Estate, says the “clever design” of the flat means it has everything a tenant could want.

Lettings Director at Harrods Estates, Ed Woolgar, says: “This delightful apartment is situated in the heart of London’s most desirable address, a short walk to Harrods and Hyde Park.

“It’s compact but clever design means that the tenant has everything they need including a hidden kitchen, complete with fridge, microwave, hob and sink, along with a bathroom with shower, basin and WC.

“There is enough space for a single bed and the TV is perfectly positioned for relaxing evenings in.”1

1 http://www.dailymail.co.uk/news/article-3230550/Is-Britain-s-worst-value-flat-Tiny-apartment-nine-feet-square-costs-whopping-46-000-year-Harrods-slippers.html

 

Government Releases Guidance on New Section 21 Law

Published On: September 11, 2015 at 1:35 pm

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The Government has released regulations and guidance on the new section 21 legislation, with around three weeks to go before enforcement.

Property lawyer Tessa Shepperson describes the matter as a “nightmare”1, criticising the short timeframe before implementation.

Another expert complained of there being no meaningful guidance.

The new Government publications highlight how new and renewed tenancies must be dealt with from 1st October onwards.

One expert believes that the new procedure could make it harder for landlords to gain possession of their properties, with enforcement “driven by tenants relying on the argument that the new processes have not been complied with.”1

Along with tenancy deposit details, landlords or their agents must prove that they have given Energy Performance Certificates (EPCs), gas safety certificates and the Government handbook, How to Rent, to their tenants.

The booklet, applicable only in England, will be made available to download from the Gov.uk website and it must be printed out for each tenancy.

If landlords or agents cannot prove that they have supplied this paperwork to tenants, they will not be able to use the no fault section 21 procedure.

Lawyers advise landlords and agents to have the tenant sign as proof that they have received the information.

Government Releases Guidance on New Section 21 Law

Government Releases Guidance on New Section 21 Law

Agent Ian Sanford says that another difficulty is that neither the regulations nor the guidance state when the booklet should be provided to tenants.

Sanford, the Managing Director of Pennington Properties in Huntingdon, says: “The legislation doesn’t specify when the booklet should be given, but it should be, presumably, just before the start of the tenancy.

“However, the booklet is laid out in such a way that it is meant to be given to prospective tenants before they even look at a property, so it seems a bit late to be giving it to them once they have committed to a tenancy.

“We will also have to get tenants to sign for the booklet as proof that they have been given it, otherwise they could deny it at a court hearing and invalidate the section 21 notice.

“In the guidance notes, it says that the notice will not be valid until the prescribed information, i.e. the How to Rent booklet, has been provided to the tenant, so presumably, it could be sent to the tenant just before the notice is issued.”

He continues: “We are going to get all our tenants to sign for the EPC, gas safety certificate (where appropriate) and How to Rent booklet at the start of each tenancy after October 1st, as, if we don’t have proof that they have been given these documents, they could claim they never received them, thereby invalidating the section 21 notice and preventing a landlord obtaining possession.

“After the fiasco with the smoke and carbon monoxide alarms legislation, this is another ill thought-out piece of legislation.”1

Additionally, there is some confusion regarding the new section 21 form of notice.

Although it must be applied on tenancies in England that start on or after 1st October, it can be used for tenancies that started before that date.

However, many of the new pre-conditions will not apply to existing tenancies.

Also, the new form of notice cannot be used if the property requires a license, but is unlicensed.

Fixflo’s Rajeev Nayyar, says: “While ostensibly this refers to HMO [House in Multiple Occupation] licensing, the non-specific wording may hint at a wider licensing regime to be introduced in the future.

“These are a complex set of changes being introduced without any meaningful guidance for the industry.

“Unlike other changes that have recently affected lettings businesses, enforcement of the new rules will not come from a Government body and will instead be driven by tenants not wishing to leave their homes and relying on the argument that the new processes have not been complied with.”1 

The legislation can be read here: http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksi_20151646_en.pdf

And the guidance is here: http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksiem_20151646_en.pdf

1 http://www.propertyindustryeye.com/nightmare-for-agents-and-landlords-as-government-finally-spells-out-new-section-21/

Nationwide’s £1bn Lending to Benefit First Time Buyers

Published On: September 11, 2015 at 12:31 pm

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Nationwide is launching an additional £1 billion of lending over the next year for homebuyers with a 5% deposit.

The move is set to benefit first time buyers.

Nationwide's £1bn Lending to Benefit First Time Buyers

Nationwide’s £1bn Lending to Benefit First Time Buyers

The building society is now offering a selection of fixed rate 95% loan-to-value (LTV) mortgage deals, with rates starting at under 4%.

It says the mortgages will not be part of a scheme, such as Help to Buy, and are available to first time buyers and home movers.

Rates for the new mortgages start at 3.99% with a £999 fee for the two-year fixed rate deal. The three and five-year fixed rate deals start at 4.59% and 4.79% respectively.

Nationwide reports that first time buyers will continue to receive £500 cashback on all Nationwide mortgage deals.

Its Save to Buy scheme, where hopeful buyers commit to saving towards a deposit and in return receive cashback of up to £1,000 upon completion of the mortgage, will be available at a 0.2% discount.

Head of Mortgages at Nationwide, Henry Jordan, says: “Nationwide’s move significantly increases the society’s lending in the first time buyer market and widens consumer choice.

“It aims to build on Nationwide’s traditionally strong support for first time buyers by offering more mortgage options to those with smaller deposits and helping them to achieve their dream of purchasing a home of their own.

“Nationwide also offers tangible benefits to mortgage customers that go beyond the competitive headline rates. This includes Nationwide’s £500 cashback offer to all first time buyers, or more if they use our Save to Buy mortgage products.

“Our mortgage deals, combined with other support Nationwide provides, such as first time buyer events and independent guides, demonstrate how Nationwide continually aims to do more for its customers.”1 

1 http://www.propertyindustryeye.com/nationwide-launches-1b-of-lending-for-first-time-buyers/

Landlords and tenants concern at Oliver Frank closure

Published On: September 11, 2015 at 12:24 pm

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Categories: Landlord News

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Landlords and tenants have been made distraught with the news that London letting agent, Oliver Knights, has been closed down, leaving thousands out of pocket as a result.

Just weeks ago, Landlord Action was instructed to recover in excess of £10,000 for one landlord, and £8,000 for another. However, with the company apparently ceasing trading, the outlook is not good for these sums or thousands of other rents or holding deposits to ever be returned.

Concerns

In 2010, Mr Tan Chun Keung bought a property in Canary Wharf to generate a stream of retirement income. He appointed a letting agent to manage his property, which he insists was the correct decision. This said, when the tenant moved out of the property and it was advertised as vacant, Mr Tan Chun Keung received notification from Oliver Knights claiming that an international bank had chosen to rent the apartment for staff, at full market price for three years.

Mr Tan Chun Keung understandably thought that the opportunity to secure a three year tenancy with a corporate let was too good to turn down. However, after irregular rent payments were eventually received during the first five months, these eventually finished eventually. Despite many attempts to contact Oliver Knights, the firm has not responded, nor has the tenant.

‘It has since transpired that the tenant living in our property was not the person that signed the tenancy agreement,’ said Mr Tan Chun Keung. ‘Oliver Knights had signed a new agreement with another tenant without informing us. The tenant claims he has passed rent to Oliver Knight but has no proof of payment.’[1]

Claims

According to a new potential tenant who has contacted Mr Tan Chun Keung, Oliver Knights actually carried out a viewing of the property as recently as 19th August 2015. Agreeing a weekly rent of £360, the tenant was told that she and her partner could move into the home on the 27th August. As such, they paid a six-week deposit and one-month rent in advance, totalling £4,420.

Just one week later, the tenant was informed that the landlord had decided to retract the offer. Oliver Knights promised the tenants that they would receive a full refund, but the agent has once again been uncontactable.

Landlords and tenants concern at Oliver Frank closure

Landlords and tenants concern at Oliver Frank closure

Paul Shamplina, Founder of Landlord Action, has already begun several rent recovery cases against the firm. He said that, ‘it is a bitterly frustrating experience, especially fan an overseas landlord who had previously been using a very reputable agent. We are doing all we can to regain possession of Mr Tan Chun Keung property. Landlords living overseas have to rely heavily on local letting agencies to manage their rental property and scenarios like this are occurring too frequently.’[1]

Regulation

Shamplina believes that, ‘until the industry is properly regulated and every letting agent is required by law to have Client Money Protection Insurance as well as belong to an association (ARLA, NALS, SAFEagent, The Guild of Letting & Management) and a redress scheme such as The Property Redress Scheme or The Property Ombudsman then unfortunately these nightmare cases will continue.’[1]

‘Unfortunately these rogue agents are tarnishing the vast majority of good agents who are offering an excellent lettings and management service. I believe the Government’s latest plans to tackle this should go as far as combining each trade body’s list of rogue agents to create one ‘black list’.  This data should then be made accessible to the public to protect the consumer i.e. landlords and tenants,’ Shamplina concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-owed-thousands-as-oliver-knights-shuts-shop.html

 

 

New Buy-to-Let Mortgage Deals Announced

Published On: September 11, 2015 at 11:30 am

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Categories: Landlord News

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This week, mortgage lenders have announced a number of new buy-to-let mortgage deals, which they hope will widen the appeal to potential investors.

In the past, NatWest’s buy-to-let mortgages targeted non-professional landlords – those that earn less than 30% of their income from their properties.

However, from today, these restrictions have been lifted, meaning professional landlords can also apply.

Additionally, the bank has removed its maximum loan limit of £500,000.

It says that the new criteria will only apply to new applications, submitted from today onwards.

New Buy-to-Let Mortgage Deals Announced

New Buy-to-Let Mortgage Deals Announced

Acting Head of Sales at NatWest Intermediary Solutions, Paul Kane, explains the decision: “Over the last 18 months we have made improvements to our buy-to-let offering, to grow out presence in this sector.

“Having enjoyed great success and increased our lending, we are now confident that we can significantly grow our buy-to-let business into areas of the market that previously we have not operated in.

“The introduction of our new criteria means that we can now welcome applications from professional landlords, which is something that many brokers have been crying out for.

“The buy-to-let mortgage market has grown significantly over the last six years from accounting for 5% of all UK gross lending in 2009 to 15% in 2015.

“It is the fastest growing segment of the mortgage market in the UK. The changes we are introducing, combined with the recent rate cuts we made across our portfolio, mean we have a really strong proposition for mortgage intermediaries who are serious about this market.”1

The HSBC has announced that it is making its buy-to-let mortgages available to non-HSBC customers for the first time, with applications being assessed on a rental income basis only.

Also, the bank will offer new 60% and 70% loan-to-value (LTV) deals.

Tracie Pearce, Head of Mortgages at HSBC, says the availability of buy-to-let products is now at its highest peak since 2008.

She adds: “High rents and low interest rates mean customers are increasingly seeing buy-to-let as an attractive investment opportunity. The policy and pricing changes we have made will make our range available to even more people.”1

Aldermore Bank now allows borrowers to buy a new home for themselves, while keeping their existing home as a but-to-let property.

Furthermore, the bank has made changes to its residential mortgage and standard buy-to-let mortgage range, including extending family gifted deposits to cover additional family members, foster parents and legal guardians.

Group Managing Director for Mortgages at Aldermore, Charles Haresnape, says: “These changes provide greater flexibility for borrowers and are part of our commitment to continually improve our products and services for all mortgage customers.

“Extending our let-to-buy mortgage offering is a key milestone in Aldermore’s development. It allows homeowners that wish to move, but who do not wish to sell their house or are unable to, to purchase another property.”1

1 http://www.propertyindustryeye.com/new-buy-to-let-mortgage-deals-launched/

 

 

House price growth up in August

Published On: September 11, 2015 at 10:52 am

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Categories: Landlord News

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House prices in the United Kingdom rose during the three months to August, according to the latest house price index from the Halifax.

Data from the report shows that average property prices in Britain grew by 9% annually, lower than the 9.6% reported in June, but better than July’s 7.8%.[1]

Rises

During the last three months, prices were up by 3% on the preceding three-month period. The quarterly rate of change rose from the 2.5% in July, but was below the 3.3% in June.[1]

Month-on-month, house prices increased by 2.7% between July and August, representing the largest monthly rise since May 2014. According to the Index, monthly movements can be volatile and quarterly figures are the most reliable indicator of underlying trends.

Home sales were down by 4% between June and July, but remained above the 100,000 mark for the second consecutive month. More encouragingly, sales in the three months to July were 3% greater than they were in the previous three months.[1]

House price growth up in August

House price growth up in August

Strong

‘The underlying pace of house price growth is strong,’ believes Martin Ellis, housing economist at the Halifax. ‘The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices. At he same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand. Strengthening demand and highly constrained supply are likely to mean that house price growth continues to be robust in the short-term.’[1]

[1] http://www.propertyreporter.co.uk/hero/house-price-growth-rises-to-9-in-august.html