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Third of homeless in capital moved out of boroughs

Published On: September 8, 2015 at 4:16 pm

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Nearly one third of homeless families in temporary accommodation in London have been switched outside of their boroughs, according to a new report.

A Freedom of Information request has indicated that 47,137 households were being homed temporarily by 32 local authorities from March to August 2015. Figures show that 15,795 of these households were actually placed outside of the boroughs responsible for housing them.

Crisis

London Councils have acknowledged that authorities are in the middle of a housing crisis. Kensington and Chelsea and Waltham Forest councils both said that they had housed in excess of two thirds of temporary households outside of their borders.

Hammersmith and Fulham housed homeless people across 28 other London boroughs, with Wandsworth doing the same in 26 regions.

Naomi Emmanuel and her two-year-old daughter Kira are amongst the 30,000 households with children currently living in temporary accommodation in the capital. Miss Emmanuel ended up homeless following the death of her mother.

Explaining her ordeal, she said that she has been moved five times over two years between three separate London boroughs, something that, understandably, proved unsettling for her child.

‘I had to take her out of nursery with a day’s warning. I had to quit a job with a day’s warning,’ said Emmanuel. ‘If I could afford private renting I would definitely have done that instead of being placed wherever the council feels like placing us.’[1]

‘I like being in control of my own life which is why I worked and studied to be in control of my future,’ she continued, before saying that it is, ‘unnerving, having to wait for a letter to find out where we’re going to be moved.’[1]

Moves

The Freedom of Information results show that 25 out of 31 councils moved homeless households to other parts of the South East. Eight councils moved people into temporary accommodation in the Midlands and even to the north of England.

Kate Webb, from housing charity Shelter, said that despite families being able to request a review of their case, they have no choice of where they could eventually end up. ‘If you are sent to Birmingham and you refuse to go, the council can say you have intentionally made yourself homeless,’ she explained.

Mr Melaku Ader was moved to Liverpool after finding himself without accommodation following the conclusion of his contract working on the development of the Olympic Stadium. He is now living in a homeless hostel in the capital. ‘I had many friends in London. When I went to Liverpool it was too hard for me to find friends and enjoy life. It was just me,’ he said.[1]

Third of homeless in capital moved out of boroughs

Third of homeless in capital moved out of boroughs

Waiting game

Newham and Brent had the highest number of households living in temporary accommodation. Brent was also the borough with the highest number of homeless households with children. Figures from the Freedom of Information Request showed that the longest time a household spent in temporary accommodation was 22 years in Tower Hamlets.

John Biggs, the council’s mayor, said that this period was, ‘shockingly unusual,’ with the wait for permanent accommodation normally around 7 years.

‘When we need to place homeless families we need to go somewhere that is affordable and very often these days that’s not in your own borough,’ Biggs commented. ‘It’s a continuing nightmare finding temporary accommodation for people. We need to work hard to get people into permanent housing.’[1]

Costly

Merton and Westminster council have yet to respond to the Freedom of Information Requests but of the 32 that responded, 29 councils said that they had spent more than £358m in total on the provision of temporary accommodation from 2012 to 2015.

Leading the way was Enfield, spending in excess of £81m from 2012 to 2015. The Department for Communities and Local Government said it was the council’s responsibility the, ‘house families in settled accommodation as quickly as possible.’ In addition, it said it had already given them fresh tools to supply quality accommodation for families in the private sector.

A spokesperson for London Councils commented that local authorities in the capital were doing their upmost to, ‘give people a roof over their heads in the midst of a housing crisis.’[1]

[1] http://www.bbc.co.uk/news/uk-england-london-34167296

 

 

Mayor of London Calls for Changes to Lettings Industry

Published On: September 8, 2015 at 3:46 pm

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The Mayor of London is calling on the Government to force property portals to display information regarding specific letting agent fees.

Responding to a Government consultation into tackling rogue landlords and agents, Richard Blakeway, the Deputy Mayor for Housing, Land and Property, suggested a number of new measures be introduced.

In a letter to the Housing Minister, Brandon Lewis, Blakeway agrees that “significant improvements” have been made in cleaning up the industry, but he believes more can be done.

Mayor of London Calls for Changes to Lettings Industry

Mayor of London Calls for Changes to Lettings Industry

Specifically, he called on the Government to consider:

  • A requirement for portal advertisements to display information regarding specific fees payable for the advertised property, to improve consumer understanding and choice.
  • A mandatory requirement for letting agents to use Client Money Protection.
  • An obligation for redress schemes to contribute to a publicly accessible database of all registered agents, to improve access for tenants and enforcement bodies.
  • Enforcement of the Advertising Standards Authority (ASA) ruling on letting agent fee transparency and subsequent clauses in the Consumer Rights Act.
  • Implementation by Government of the recently created PRS Code of Practice, to be made compulsory for all letting agents. This would become the standard against which professional bodies and ombudsman services would judge their members.

Blakeway also said that he would welcome the Government’s consideration of whether the Mayor of London should be given powers over letting agent redress schemes in the capital, in order to make London Rental Standard accreditation and training obligatory for agents in the capital.

The letter reads: “Poor practice amongst letting agents is as detrimental to the rental sector as criminal landlords. Having consulted with senior representatives of the lettings industry, it is clear to the Greater London Authority [GLA] that there is strong support for further measures to clamp down on those who are failing to meet legal and industry standards.

“These would be built on the significant improvements in letting agent regulation that took place in the last Parliament, including the introduction of compulsory redress.

“The GLA believes the proposals would be relatively straightforward to implement and would dramatically improve the consumer experience of renters.”

The letter concludes: “I would welcome a discussion with you at some stage about the proposals.”1 

1 http://www.propertyindustryeye.com/mayor-pushes-for-portal-ads-to-include-letting-agent-fees/

New Service for Landlords Removes the Need for Agents

Published On: September 8, 2015 at 2:46 pm

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Rising Rents are Making Young People Less Mobile, Reports the Resolution Foundation

A new online property management tool has been launched for landlords, indicating that investors do not need to use letting agents.

Letdesk is described as removing “the need for landlords to pay expensive property management fees to letting agencies by allowing tenants to request repairs at any time through an online account.”1

New Service for Landlords Removes the Need for Agents

New Service for Landlords Removes the Need for Agents

The free service alerts landlords via text message or email when a tenant reports a problem.

It then sources quotes from local tradespeople and allows landlords to review and approve the work to be conducted.

Once the job is approved, Letdesk notifies the tradesperson.

Landlords can create a free Letdesk account and invite their tenants to join.

All online interactions between the landlord, tenant and tradesperson are recorded in the Letdesk system, which integrates with text or email services.

Additionally, the system allows for payments to be made and key documents to be stored online, as well as prompting landlords with safety inspection reminders, such as when gas safety checks are due.

Letdesk founder Alex Dixon says: “For landlords, Letdesk offers peace of mind without the fixed fees that can come with traditional management services provided by high street letting agencies.”1

The firm is based in Walsall and was formerly HomeServe for Landlords.

A spokesperson revealed that although the service is currently free, this could change at some point in the future.

Find out more here: https://www.letdesk.com/#/

1 http://www.propertyindustryeye.com/new-service-launches-for-landlords-stressing-it-removes-need-for-agents/

YMCA Launches Accommodation Project for Homeless People

Published On: September 8, 2015 at 1:42 pm

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“While working out how to support homeless people back into employment, education and accommodation isn’t easy, one thing is certain,” says Denise Hatton. “We need to build more affordable homes.”

Hatton is the CEO and National Secretary of YMCA England, which is launching a new accommodation project for homeless people this week.

For decades, our governments have failed to build enough homes to meet demand. As a result, the cost of homeownership is now out of reach of many young people, including those leaving supported or temporary housing.

The current Government is determined to build 200,000 starter homes by 2020, but housing charity Shelter has found that families on an average income will be unable to afford these homes in 58% of local authorities and families on the new national living wage will be priced out in 98% of the country.

“Building more homes will help solve the housing and rental crises, only if they are affordable to those who need them most,” states Hatton.

Y:Cube is the new scheme from YMCA, launching in Mitcham, South London. The development includes 36 self-contained, one-bedroom flats, each with its own bathroom, living room and kitchen inside a 26 square metre unit.

“They are factory built off-site and installed for just £55,000 each,” explains Hatton.

The YMCA has created the scheme to provide “move-on homes” for young people who are ready to leave its accommodation, but cannot move into private rental sector housing due to high costs or lack of availability.

This is a situation that “we found that more than half of our residents in supported accommodation were facing earlier this year,” says Hatton.

Meanwhile, nine out of ten YMCAs have turned away a young person due to “capacity issues”.

Hatton argues the need for the new project: “For the charity to help as many young people as possible, it was essential we came up with an affordable model of housing for tenants to move into, freeing up YMCA places for other vulnerable young people.”

The weekly rent at the Y:Cube development is set at around £145. This is 65% of market rent in the area and soon, a single room in London will cost the same as renting a Y:Cube flat.

“Building high-quality accommodation at a lower cost and in a short timeframe was key for the development,” Hatton continues. “We are expecting the process from finished construction in the factory to the scheme being fully habitable to be completed in under five months.”

She adds: “These cheap, quick and high-quality homes are being seen as a smart investment and we are working on future projects with several local authorities and housing providers.

“They can be quickly assembled and easily relocated, offering flexibility to local authorities that may have land available for five to ten years or even longer.”

Hatton concludes: “We know Y:Cube alone will not be able to solve the housing crisis, but it will go some way to offering an alternative model of housing and, more importantly, an alternative model of thinking to politicians.

“Traditional approaches to resolving financial problems in the housing sector as well as ending the homelessness crisis have not worked.

“If we want to get serious about this issue, politicians need to start thinking and building outside the box.”1 

1 http://www.theguardian.com/housing-network/2015/sep/08/london-homeless-people-private-rent-ymca-ycube

Remortgaging activity up in August

Published On: September 8, 2015 at 12:57 pm

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Remortgaging activity in August was higher than all other areas of the housing market, according to a new investigation.

Research from Connells Survey and Valuation shows that remortgaging activity rose by 25% during the last month, in comparison to July. What’s more, the number of remortgage valuations is up by 102% compared to August 2014.[1]

Increases

Total valuation activity was actually more muted in the last month, with the number of valuations across all sectors rising by 7% from July.

‘Concern and media attention about an interest rate rise in the near future is the key driver of this surge,’ said John Bagshaw, corporate services director of Connells Survey and Valuation. ‘Due to the very low Bank of England base rate, there are currently some very appealing remortgaging deals on offer from lenders. But homeowners have been influenced by a powerful perception that these deals will not last.’[1]

‘Underneath the short-term surge, remortgaging is also driven by a longer term shift,’ Bagshaw continued. ‘People are increasingly looking to upgrade their home rather than trade-and so, for a slightly different purpose, are also keen to take advantage of cheaper mortgage deals.’[1]

Bagshaw believes that, ‘the wider picture looks encouraging stable,’ and that, first-time buyers and home-owners are far more optimistic about the housing market now than they were at this point in 2014.’ He feels that this is evident, ‘from the strong, steady growth we’ve been seeing throughout 2015.’[1]

Existing owners

The number of valuations for already existing owner-occupiers who are searching for a new home has risen by 3% since July. Home mover activity is up by 30% in comparison to August 2014. Similarly, the number of first-time buyer valuations in August rose by 1% month-on-month and by 30% year-on-year.[1]

‘Home mover and first-time buyer activity has been sizeable and speedy growth over the last six month, so a period of more stable growth is a sign of consolidation,’ observes Bagshaw. ‘It shows that these sectors command long-term momentum and demonstrates a more stable optimism from households about the future.’[1]

Remortgaging activity up in August

Remortgaging activity up in August

‘For those moving up the ladder, low mortgage rates are combining with property price growth as a basis for their next purchase. Meanwhile, first time buyers don’t have the benefit of this natural deposit, but are showing remarkable fortitude in the face of price rises-buoyed by a jobs market that is increasingly showing real wage growth.’[1]

The only part of the market to see a fall in activity during August was valuations for buy-to-let purposes, which fell by 5% month-on-month. However, the total number of valuations carried out for buy-to-let investors increased by 29% year-on-year.[1]

Popular

Mr Bagshaw believes that, ‘buy-to-let has retained its winning popularity with investors. The slight slowdown the sector experienced this month is likely due to some investors taking a step back to calculate the cost of the Chancellor scrapping certain tax exemptions for buy-to-let landlords in the Summer Budget.

‘However, the fundamentals of the rental market remain very strong, driven by tenant demand. Even buy-to-let-once a rollercoaster sector in terms of growth-is showing signs of settling into a positive pattern of strong and steady growth, a pattern replicated across many other sectors of the mort

[1] http://www.propertyreporter.co.uk/property/remortgaging-activity-soars-in-august.html

 

FCA to Conduct Three Mortgage Market Reviews

Published On: September 8, 2015 at 12:46 pm

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The Financial Conduct Authority (FCA) has announced that it will conduct a study on the mortgage market early next year, something that it first mentioned in June.

The City regulator, which started a review into responsible lending in April, will specifically look at strict new rules introduced under the Mortgage Market Review (MMR) in spring 2014.

This will be one of three reviews over the next year.

FCA to Conduct Three Mortgage Market Reviews

FCA to Conduct Three Mortgage Market Reviews

Alongside the post-MMR responsible lending review, the FCA will provide a more general review of the mortgage market and a review into financial advice, including mortgage advice.

Under the MMR, mortgage applicants must now undergo affordability checks, including an examination of their spending habits and an assessment of their ability to keep up repayments if interest rates rise.

In a speech at the FCA conference in central London yesterday, Christopher Woolard, Director of Strategy and Competition at the FCA, says there have been questions over whether “those interventions might lead to a drying up of the market… The MMR alone was predicted to affect mortgage approvals by anything up to 20%.”

Instead, he revealed, mortgage approvals have grown.

He continued: “There is clearly a question here as to what the ideal level of activity is and how you achieve it.

“No one, frankly, wants to return to the unaffordable lending practises of the past, where almost every application was approved.

“We do, however, have to remain sensitive to the impact of these reforms over the long run.”

He said: “Even if we believe our rules are proportionate, we need to remain alert to how firms are interpreting them and the effect on consumers.

“That is why we will be undertaking a mortgage market study soon, which will include a review on key aspects of the implementation of the MMR.”

In the speech, Woolard also stated: “Few issues in the UK matter more to the general public than homeownership.

“As a nation, we consume huge amounts of information about property. We are borrowing more. And we’re spending increasing amounts of disposable income on homes.”1

He said that on one hand, homeowners are hoping house prices will rise, but on the other, first time buyers hope they will go down.

1 http://www.propertyindustryeye.com/city-regulator-to-conduct-three-reviews-into-mortgage-market/