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Em Morley

Scotland to Introduce Rent Controls by Next Spring

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

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Categories: Landlord News

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Scotland’s First Minister, Nicola Sturgeon, is set to introduce rent controls.

This news arrives after the Scottish Government’s consultation revealed that seven in ten respondents are against controls.

In this week’s Scottish Parliament’s version of the Queen’s Speech, Sturgeon revealed plans to introduce local rent controls through a Private Tenancies Bill, part of the Scottish National Party’s (SNP) legislation programme for the next eight months.

Scotland to Introduce Rent Controls by Next Spring

Scotland to Introduce Rent Controls by Next Spring

These measures have been criticised by the Scottish Property Federation.

Its director, David Melhuish, comments: “The mere prospect of rent controls could be enough to spook potential investors.”1

Thomas Ashdown, of lettings portal Citylets, explains his viewpoint: “If the Scottish Government wants to increase housing supply, then the introduction of rent controls is not the way to do it.

“The latest Citylets quarterly report on the Scottish PRS [private rental sector] shows that for the vast majority of areas, rents are barely keeping up with inflation as it is.

“Increasingly, it would seem that this new legislation would only be relevant to parts of the City of Edinburgh and, as many commentators have noted, possibly exacerbate the lack of supply in those areas.”1

A new group of letting agents and landlords in Scotland also raised concerns and called for two new different types of tenancy agreement.

PRS 4 Scotland hopes for a new flexible short-term tenancy agreement and a longer term contract for tenants wishing to stay in the same property for between five and 15 years, or even longer.

PRS 4 Scotland’s spokesperson, Dr John Boyle, says: “Scotland’s private rented sector should be providing more long-term, stable, high-quality rental options for our growing tenant population, but that aim has been undermined by low levels of house building – a critical lack of supply.

“Yet the current debate around the future of the PRS in Scotland has been focused on calls for rent controls, without sufficient analysis of how these would work in practise to address Scotland’s housing crisis, or recognition of the harm they would do to tenants and landlords in practise.

“The Scottish Government’s own consultation on these issues highlighted that 70% of respondents were against the introduction of a system of rent controls.”1 

1 http://www.propertyindustryeye.com/scotland-poised-to-introduce-rent-controls-by-next-spring/

Generation Rent Misses Crowdfunding Target – What Now?

Published On: September 2, 2015 at 6:32 pm

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Categories: Landlord News

Tenant group Generation Rent insists that it has raised enough money through crowdfunding for its survival, despite hitting just a quarter of its target.

Its website previously stated that if the group did not meet it’s £60,000 target, staff must be laid off, meaning that the organisation could only have existed with the help of volunteers.

However, despite under £18,000 being raised in donations, Generation Rent claims it will operate as a team of two – it’s director Betsy Dillner and communications manager Dan Wilson Craw – until at least next spring, when it hopes to have found further funding.

Generation Rent Misses Crowdfunding Target - What Now?

Generation Rent Misses Crowdfunding Target – What Now?

Generation Rent was offered a grant of £45,500 from the Joseph Rowntree Foundation, which will be spent on fighting for rent controls in London.

After a year-and-a-half of its existence, Generation Rent has successfully pushed the Government to protect private tenants from revenge evictions, cut landlord tax breaks and regulate letting agents.

It began its crowdfunding mission after the Nationwide Foundation pulled its funding of the group.

The Generation Rent website said: “We have three things to do by next spring: push the Government into protecting tenants from criminal landlords, win a commitment from the next Mayor of London to bring down rents in the city, and secure longer term grant funding.

“We are already working on all three but this money is needed to keep the team in place and avoid losing any momentum.

“If we only hit our minimum we will have to lay off the team but the campaign can still exist as a volunteer-run organisation.”1

Furthermore, a spokesperson said in July that if Generation Rent did not raise enough money by the 31st August deadline, “there is a real danger that the campaign will simply vanish, and with it the national voice of private renters in the media and political debate.”

However, yesterday the group claimed it has raised enough money to “keep campaigning for private renters across the UK.”1

Dillner comments: “A month ago, our future looked very bleak, with no guarantee that we would be able to survive past September.

“The team here has thrown everything we had at fundraising and we have been humbled by the response. It is an incredible feeling to see the number of people and organisations with the confidence in us to donate to keep us in existence.

“We now have a big task to keep representing the growing private renter population and we will continue to rely on people power for our success.”1 

1 http://www.propertyindustryeye.com/generation-rent-defiant-despite-missing-crowdfunding-target/

Landlords Don’t Wish to Deal Directly with Tenants

Published On: September 2, 2015 at 5:21 pm

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Categories: Landlord News

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Landlords Don't Wish to Deal Directly with Tenants

Landlords Don’t Wish to Deal Directly with Tenants

A survey of 500 landlords reveals that most do not wish to deal directly with tenants and instead want their letting agents to handle property management and complaints.

The study, conducted last month on behalf of PropertyLetByUs, found that over 85% of landlords do not want to deal directly with their tenants and almost 90% are unhappy about tenants calling or emailing them with issues.

Manager of PropertyLetByUs – an online letting agent – Jane Morris says: “Many landlords work either full or part time and need the support of an agent to help them with managing the relationship with the tenant.

“We know from our research that 66% of landlords find managing their properties more stressful than their full or part time jobs and dealing with tenant complaints is a top cause of stress.

“Landlords are under a huge amount of pressure with mounting legislative and tax changes. Agents can be a big help for landlords, offering a range of service that help reduce their workload and ensure they are fully compliant with legislation.”1

1 https://www.lettingagenttoday.co.uk/breaking-news/2015/9/survey-confirms-landlords-recognise-vital-role-of-letting-agents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welsh landlord fined £20k

Published On: September 2, 2015 at 4:56 pm

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Categories: Landlord News

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A landlord in Wales has been prosecuted following failures in licensing and safety regulations surrounding her property.

Kaneeza Abid of Newport entered a guilty plea after failing to licence a HMO in Alma Street. Under the Housing Act, she was fined £10,000.

Offences

Additionally, Abid admitted a further 10 offences of failing to comply with the Management Regulations of 2006. She was also fined £1,000 for each offence committed.

What’s more, Abid was told to pay council costs of £1,229, plus a victim surcharge of £120.

After inspecting the property on January 22nd, environmental health officers from Newport City Council found that it required a licence and that fire escapes were obstructed with poor lighting.

Welsh landlord fined £20k

Welsh landlord fined £20k

Regulations

Councillor Bob Poole, Newport City Council’s cabinet member for regulatory functions, commented, ‘HMOs are licenced and regulated for a reason. This is about safety. Tenants are entitled to live in accommodation that is safe.’[1]

‘Landlords have that responsibility and the council will not hesitate to take action against those who put tenants at risk,’ Poole added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/20k-fine-for-newport-hmo-landlord

 

 

East of England’s House Price Growth Surpasses London

Published On: September 2, 2015 at 4:30 pm

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The East of England’s house price growth has surpassed London in becoming Britain’s fastest growing region, according to the latest Land Registry data.

House prices in the East of England, encompassing areas from Hertfordshire to Norfolk, were an average of £210,000 in July. They rose by 8.9% over the last year, compared to an 8.3% increase in the capital.

In the South East – including Berkshire, Buckinghamshire, East Sussex, West Sussex, Hampshire, Kent and Surrey – prices grew by 8.2%. This may be close to London’s growth, but its house prices are much lower, at an average of just over £250,000 compared to the capital’s £490,000.

These are the only three regions in the UK where average prices exceed £200,000. London’s house prices are around five times higher than those in the North East, where house price growth was the slowest annually, rising just 0.4% to an average of £100,670.

Average house prices around the UK

Region

 Average house price Annual change

Monthly change
North East £100,670 0.4% 0.7%
North West £114,064 1.4% 0.3%
Wales £120,091 1.5% -0.3%
Yorkshire and the Humber £123,663 3.1% 1.5%
West Midlands £139,525 3.2% 2%
South West £190,996 4.2% 0.9%
East Midlands £136,600 5.1% 1.9%
South East £252,528 8.2% 1.7%
London £488,782 8.3% 2.5%
East of England £209,989 8.9% 2.8%
East of England's House Price Growth Surpasses London

East of England’s House Price Growth Surpasses London

The North West and Wales, where some of the most affordable homes are found within the UK, experienced slow house price growth.

However, Yorkshire and the Humber and the West Midlands, which stretches from Wolverhampton to Coventry, recovered from negative monthly growth.

Director of Your Move and Reeds Rains, Adrian Gill, says: “The long-term trend of annual house price growth may still be sliding downhill but in the short term, monthly growth is heading skyward.

“More recently in July, we saw monthly first time buyer sales hit a post-recession record. Since the financial crash, a Bank of England [BoE] base rate of 0.5% is all first time buyers have ever known, and many were keen to agree mortgage deals and complete property purchases before this changed.

“While an interest rate rise has been relegated into next year by the Chinese stock market crash, play won’t stop for those looking to buy a home before borrowing inevitably becomes more expensive.”1

The South West, ranging from Gloucestershire to the Isles of Scilly, and the East Midlands, which includes the cities of Derby, Nottingham, Leicester and Lincoln, continue to show steady growth.

1 http://www.homesandproperty.co.uk/property-news/news/uk-house-prices-east-england-overtakes-london-fastest-growing-region

UK mortgage approvals at highest rate since 2014

Published On: September 2, 2015 at 4:13 pm

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Categories: Finance News

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Mortgage approvals in Britain during July hit their greatest level since February 2014, according to new figures released by the Bank of England.

Data from the report shows that there were 68,764 mortgage approvals during the month, a rise of 16,4% since November’s low of 59,100.[1]

Rising

Experts suggest that these figures show that the housing market is beginning to return to its pre-recession rates, with mortgage approvals rising in five of the last seven months. House prices are also rising.

In addition, net mortgage lending was up by £2,709bn during July, which represents the greatest increase since July 2008.[1]

Chairman of the Intermediary Mortgage Lenders Association, Charles Haresnape, also noted that this total is the largest since the introduction of the Mortgage Market Review. ‘With 7% more approvals compared with the six month average, it is a clear indication that health is returning to a market that has been under significant pressure to perform while adjusting to new working practices,’ Haresnape noted.[1]

UK mortgage approvals at highest rate since 2014

UK mortgage approvals at highest rate since 2014

 

Uncertainty

Mr Haresnape went on to warn that with European Mortgage Credit Directive rules starting to come in effect this month, there is likely to be extra uncertainty ahead for the market.

‘With more regulation on the way and a potential rise in the cost of borrowing on the cards, the six month window to implement the MCD rules will be a challenge for all concerned,’ he said.

‘On the positive side, rising approvals suggest consumer appetite is strong and lenders will also be striving to meet their end of year targets, which should support some competitive deals. We must hope that the impacts of change do not weigh down too heavily on what otherwise looks like a strengthening market recovery,’ Haresnape added.[1]

Howard Archer, chief economist at IHS Global Insight, said that it was possible that July’s performance was raised by house buyers looking to lock in low mortgage rates, before interest rates rise.

‘On the positive side, rising approvals suggest consumer appetite is strong and lenders will also be striving to meet their end of year targets, which should support some competitive deals. We must hope that the impacts of change do not weigh down too heavily on what otherwise looks like a strengthening market recovery,’ Archer explained.[1]

[1] http://www.propertywire.com/news/europe/uk-mortgage-approvals-rise-2015090110929.html