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Em Morley

Property prices rise in Ireland during July

Published On: September 4, 2015 at 2:58 pm

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Property prices in Ireland rose by 0.9% during July in comparison to the previous month, according to new data from the Central Statistical Office.

However, the official statistics indicate that values in Dublin growth are cooling.

Ups and downs

Year-on-year to July, property prices in the country are 9.4% higher, but in Dublin, growth was 9%. This represented the first time since the middle of 2013 that property prices in the capital city rose by less than 10% during a year.[1]

By month, Dublin’s house prices rose by 0.6%, with apartment prices rising the most substantially at 2.7%. A Central Statistics Office spokesman said that it should be noted that the sub-indices for apartments are based upon small volumes of transactions and therefore have larger volatility than other series.

Outside of the capital, residential property prices rose by 1.2% during July, with prices 9.6% up over the year.[1]

Nationally, residential property prices were 36.9% lower than they were at their peak in 2007. In Dublin, prices were 36.3% lower than their peak level. For apartments alone, prices were 40.6% less and Dublin residential property values were 37.9% down.[1]

Property prices rise in Ireland during July

Property prices rise in Ireland during July

Mortgage impact

Dermot O’Leary, chief economist with Goodbody Stockbrokers, said it was widely expected that prices outside of Dublin would rise at a higher rate as new mortgage regulations take effect in the capital. ‘We expect further moderation over the coming months, with the slowdown in price inflation to be particularly felt in the capital,’ he stated.[1]

Experts are now tipping that residential property prices are more than likely to dip towards 5% by the end of 2015.

[1] http://www.propertywire.com/news/europe/ireland-property-price-index-2015090310939.html

 

Potential first time buyers not doing enough to save

Published On: September 4, 2015 at 12:43 pm

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An investigation into would-be first-time buyer spending habits has uncovered the luxuries that many refuse to give-up in order to save for their initial home.

A Principality Building Society survey of 1,000 people in England and Wales who are actively saving for their first property showed that coffee from a leading chain and having the latest smartphone were more important than putting many aside for a dwelling.

Luxuries

The average asking price of a home for first time buyers in the UK stands at £169,414, meaning just a 5% deposit would be £8,470.70. This could be reached in a year if a saving couple put away £353 per month over the period.[1]

Of course, saving is not easy but Principality suggest that with only a few changes could see many turning the dream of owning a home into a reality.

Data from the report indicates that people already save an average of £286.51 per month for a house deposit. However, a further £218.38 was spent on luxuries perceived a ‘necessities.’[1]

Smartphones, satellite television and beauty treatments were found to be the hardest luxuries to give up, followed by a regular coffee shop fix. Despite this, 59% of people said that they would give up takeaway food to get a foot on the property ladder.

56% of people said however that going on holiday was non-negotiable and they wouldn’t sacrifice this in order to get onto the property ladder.[1]

Potential first time buyers not doing enough to save

Potential first time buyers not doing enough to save

Changes

‘We know that savings for a deposit can seem like a huge burden, which many first time buyers feel they can’t afford but by making some minor changes to their spending habits, they could soon realise their dream of becoming a home owner,’ said Principality’s customer director, Julie-Ann Haines. She feels that, ‘by simply doing things like swapping a takeaway coffee for a flask of coffee from home each day or by cutting back on the city breaks for a year people could soon have that deposit that they have longed for. A saving of £218.38 a month can make a huge difference when you are trying to reach your deposit.’[1]

Haines went on to say that, ‘we want to give first time triers all the information they need to help them get on the property ladder and own their first home. It can be one of the most rewarding moments of your life, giving you a place where you can seek the independence you’ve always wanted or finally start a family.’[1]

‘By simply cutting back on the everyday luxuries for a short time it will enable you to save more in the long run, and ultimately be on the housing ladder much sooner than anticipated,’ she concluded.[1]

[1] http://www.propertyreporter.co.uk/property/smartphones-and-coffee-shops-more-important-than-the-housing-ladder.html

 

Letting Agent Has Windows Smashed in Demonstration

Published On: September 4, 2015 at 12:39 pm

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A letting agent that sent controversial letters to landlords earlier this year has had all its windows smashed.

CJ Hole, in Southville, Bristol, sent a forceful letter to landlords stating that they should increase rents, as higher prices are achievable.

The letter was sent to tenanted properties and a tenant posted it to Twitter, causing local outrage.

A demonstration was held outside the branch, owned by franchisee Paul Goverd, and around 12,000 people signed an online petition for the firm to sign an ethical lettings charter.

One supporter was another CJ Hole franchisee in Bristol, Chris Hill.

 

£500 a Month for Mattress Inside Hut in Living Room

Published On: September 4, 2015 at 11:41 am

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Flat and house share website SpareRoom.co.uk has admitted that its rules were breached when it advertised a £530 per month large double room, which was actually a mattress inside a wooden hut in the corner of a communal living room.

Joe Peduzzi, 22, was looking for somewhere to live after getting a job in London.

He saw the SpareRoom advertisement, but was taken aback when he discovered that the large double room was in fact just a mattress inside a wooden shack in the living room.

The room was advertised at £480 a month for rent and £50 towards the bills, which are split with three other housemates.

The advert, which has since been removed, read: “The room is the biggest in the house and comes with a sofa, which means sharing it with the rest of us sometimes.

“We are on the search for a laid back, happy-go-lucky type that’s sociable, open-minded and creative.”1

SpareRoom admitted that its guidelines have been breached by the advert, but it did not say why the ad made it through to the site.

Director of the firm, Matt Hutchinson, says: “This particular ad does breach our rules, as there is a clear invasion of privacy.

“While we do moderate for scams and spam, there’s not much we can do to protect against people being misleading in their advertisements. This is why we rely on our users’ vigilance as the final piece in the protection we provide.”

He insists that SpareRoom has a team of moderators, but also relies on the honesty of advertisers and on users to report “inappropriate” adverts.

Hutchinson continues: “All ads must be in line with our terms and conditions. We take steps to scan adverts that are posted to our site for spam and scams. This is done by both automatic systems and manually by our team of moderators.

“We also have a report ad function for users to flag ads they think are inappropriate with a click of a button, so our moderators can look into them.”1 

Fortunately, Peduzzi got a laugh out of it: “I was laughing to myself down the road back to the Tube.”1

1 http://www.propertyindustryeye.com/530-a-month-for-mattress-inside-shack-inside-communal-living-room/

Landlord fined in excess of £15k

Published On: September 4, 2015 at 11:38 am

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A landlord whose HMO was shut down by a local council has been hit with a court bill of almost £16,000.

Great Yarmouth Borough Council’s environmental services department prosecuted Stanley John Rodgers, following an inspection of his rental property.

Complaint

The council decided to inspect the property following a complaint from a tenant. Upon arrival, representatives found five people, including a pregnant woman, residing in the end of terrace house.

Further investigation proved the home to be an unlicensed HMO, which came up well short of the expected legal standards. As a result, the council utilised its legal powers to close down the property for occupation, before prosecuting Mr Rodgers.

Rodgers pleaded guilty at Great Yarmouth Magistrates’ Court to managing or controlling an unlicensed HMO. Additionally, he pleaded guilty to a further five charges, including failure to comply with fire safety regulations.

In total, Mr Rodgers was fined £13,333 and ordered to pay costs of £2,427.22, alongside a £120 victim surcharge.

Landlord fined in excess of £15k

Landlord fined in excess of £15k

Worst accommodation

Councillor Carl Smith, cabinet member for the environment, said, ‘HMOs are found in most areas-and licensable HMOs often represent the worst accommodation within the private rented sector in terms of their condition, their management and the vulnerability of their tenants.’[1]

‘The borough council works proactively with the police and fire service to identify potential HMOs and, where possible, to regulate them under the licensing process, which sees officers work directly with landlords and HMO managers to improve standards.Running a HMO can be a lucrative business and the borough council expects landlords to take responsibility and invest time, care and money to ensure their tenants are as safe as possible,’ Smith continued.[1]

Smith went on to say that when required, ‘as this case shows, the borough council will use legal powers to tackle those who do not meet their obligations and thereby risk the health and safety of their tenants.’[1]

‘In this case, the scale of the fine-the highest possible when a guilty plea has been entered-reflects the seriousness of the offence. The electrics, in particular, were dangerous and had to be disconnected straightaway.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/15k-bill-for-great-yarmouth-hmo-landlord

 

Current Stock will Solve the Housing Crisis, Says CML

Published On: September 4, 2015 at 10:40 am

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The Chief Economist at the Council of Mortgage Lenders (CML) says that better use of current housing stock is the key to solving the country’s supply crisis.

Bob Pannell states that it is clear that the country needs more new homes.

However, he also believes that for the crisis to come to an end, several issues affecting the use of existing stock must be addressed.

Current Stock will Solve the Housing Crisis, Says CML

Current Stock will Solve the Housing Crisis, Says CML

Pannell argues that even if Government policy helps to create 300,000 new homes in the UK over the next ten years, 90% or more of the housing stock that will exist in 2025 will already be built today and will be lived in.

He insists that it is obvious that demand is being boosted by migration, increasing life expectancy and the rise in the number of single-person households. But he also lists a number of factors that he thinks the Government should address to help solve the crisis:

  • An ageing population that owns a disproportionate amount of housing – which is under-occupied – and is reluctant or unable to move.
  • Rising demand for rental property, as house price growth continues to exceed earnings and first time buyers have no housing equity, unless it is from their parents.
  • Although landlords help to improve the level of rental homes, they often wish to expand their portfolios and thus do not release much property back onto the market.

Pannell says that promoting more activity within the current stock will help: “Helpfully, Government policy often focuses on encouraging new housing construction, and this is essential – although not sufficient – in helping deliver a long-term solution.

“But we should not forget that the vast majority of housing supply in any period comes from those selling existing stock. Promoting more activity across the market as a whole may help to encourage both more efficient use of existing housing and the marketability of new homes.”

He continues: “In particular, the Government should not forget that taxation plays an important role in influencing liquidity in the property market and the efficient use of housing.

“Recent reforms may have improved the structure of Stamp Duty by removing some of its price distorting effects, but it is difficult to disagree with the Institute for Fiscal Studies, that these reforms have transformed Stamp Duty from a very bad tax into merely a bad one.

“It’s tempting to say that we are still recovering from the effects of the credit crunch. And while that’s true, a range of deep-seated and inter-related problems in the housing market is holding back a recovery in transactions.

“They present fundamental and long-term challenges, and will not easily be solved.”

He concludes: “As a result of these factors, we now have a dysfunctional housing market, beset by long-term structural problems that are difficult to address.”1

1 http://www.propertyindustryeye.com/council-of-mortgage-lenders-current-stock-key-to-solving-housing-crisis/