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Em Morley

Thousands of tenants in England suffer abuse

Published On: September 2, 2015 at 11:56 am

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An extremely concerning report from housing charity Shelter has revealed that thousands of tenants in the private rental sector have suffered abuse from their landlords.

The types of abuse ranged from harassment, assault and both physical and verbal abuse, all of which could have resulted in legal action.

Abuse

Shelter suggests that 17,000 renters have called its helpline in order to lodge complaints regarding abuse. Worryingly, the charity said the cases included people saying landlords had cut off their utilities, entered their property unannounced and even burned their possessions.

Other common disputes recorded included issues over deposits and terms of an agreement.

More cause for concern comes with the charity’s prediction that many more tenants may be suffering at the hands of rogue landlords. On the results of a survey of 3,800 respondents, Shelter feel that 125,000 within England had experienced abuse, with many more in receipt of abuse strong enough to result of legal proceedings.[1]

‘Hurled Stones’

The charity highlighted the case of one particular tenant who had moved into a rental property in London, only to discover problems.

‘There was damp in the bedroom-black walls basically,’ said the tenant. ‘There was a leaking roof that went on for months and we had no gas safety certificate,’ he added.[1]

Having drawn up a list of 18 issues with the property, the tenant approached the landlord again. However, the landlord not only refused to fix the problems but also started to enter the property without permission. ‘Then one day he became really aggressive and hurled some stones at me,’ the student claimed.[1]

Another tenant said that his landlord served him an eviction order just five days before Christmas, before sending him abusive text messages. When the tenant and his partner did move out, the landlord demanded a further month’s rent.

Thousands of tenants in England suffer abuse

Thousands of tenants in England suffer abuse

Renter rights

With many young professionals and families being priced out of the housing market, it is thought that one in five households in England is privately rented. Experts predict that this number will rise in the coming decade.

Shelter helpline advisor, Mark Cook said that the charity spoke to people daily who had experienced difficulty with rogue landlords. ‘Some of their experiences are truly awful-from renters who have been illegally evicted and had their belongings burned, to those who have had their utilities cut off because their landlord wants to intimidate them,’ Cook said.[1]

‘No one should have to put up with a landlord who breaks the law and it is so important to know your rights as a renter,’ he concluded.[1]

[1] http://www.theguardian.com/money/2015/sep/02/thousands-of-tenants-suffering-abuse-from-private-landlords

 

Property Professionals Race for Charity

Published On: September 2, 2015 at 11:27 am

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Over 1,000 property professionals from around the country took part in a charity run on Sunday to raise £20,000 for charity.

The annual JLL Property 5k run is held in Regent’s Park, London and raises money for Starlight, JLL’s charity, which grants wishes to children with serious and terminal illness in the UK.

Andrew Mercer, of Legal & General, was the fastest runner overall for the third consecutive year, completing the race in just 16 minutes, 30 seconds.

Chief Executive of JLL UK, Guy Grainger, says: “It’s fantastic to see so many colleagues taking part in this healthy initiative which has raised significant funds for our charity partner, Starlight.

“Our people and our communities are two areas that we’re really committed to supporting through our sustainability programme Building for Tomorrow, and it’s events like this which really bring that programme to life.”1

JLL’s Alan Silvester won the men’s under-40 race, finishing in 16 minutes, 54 seconds and Amy Bryant, of Gerald Eve, won the women’s under-40 category, completing the race in 20 minutes, 5 seconds.

The overall winner, Andrew Mercer, also won the men’s over-40 race and Emma Huepfl, from JCRA Laxfield, came first in the women’s over-40 category, finishing in 20 minutes, 3 seconds.

1 http://www.propertyindustryeye.com/property-industry-raises-20000-for-charity/

Landlord Will Take 25 Years to Pay Fines

Published On: September 2, 2015 at 10:35 am

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A landlord calling himself the “pied piper of Llandudno” has been issued a bill for around £7,000 for operating three unlicensed Houses in Multiple Occupation (HMOs).

Llandudno Magistrates’ Court fined Mark Thorogood, 50, of West End, Beaumaris, on Wednesday 26th August for failing to obtain HMO licenses for three properties. Two of the homes are located on Bodhyfryd Road, Llandudno and Conwy County Council took action against the landlord.

However, Thorogood successfully obtained a consolidation on outstanding court fines, which allows him to pay them off over time, at just £40 per month, despite earning around £100,000 in housing benefit from his tenants last year.

He must pay the courts at least £12,000, which will take 25 years to clear.

The unlicensed properties and the home listed as his address on court documents are believed to be worth around £700,000.

The Financial Services Authority (FSA) banned Thorogood from being involved with regulated financial services and fined him over £104,000 in 2010.

Although he pleaded not guilty to the latest breaches, Thorogood was fined £5,000, ordered to pay legal costs of £1,500, investigative costs of £234 and a victim surcharge of £125.

Thorogood previously admitted to not paying the FSA fine, which he claims was “unjust”.

Landlords in Wales are required to register HMOs and pay for a landlord’s license under new rules from the Welsh Government.

Previously, Thorogood declared his innocence: “I’ve made mistakes, but my ambition is to be honest and true. I have been victimised. I am an entrepreneur and I will take a few calculated risks.

“I have housed more people than you can imagine. I am the pied piper of Llandudno and I had tenants chasing me asking for somewhere to live.

“I had a million pound turnover with five staff, but the regulations are so tight they are making it hard for landlords.”1

A Conwy County Council spokesperson states: “Licensing HMOs is important because it helps to raise standards, thereby protecting both the tenants and the local community.

“The council is committed to raising the standards of HMOs in the area and will prosecute landlords who disregard their responsibilities as this case clearly shows.”1

1 http://www.dailypost.co.uk/news/north-wales-news/mark-thorogood-court-llandudno-bodhyfryd-9943336

Many landlords do not wish to deal with tenants

Published On: September 2, 2015 at 10:21 am

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New research has indicated that many landlords prefer letting agents to manage their tenants and in general, do not want to be concerned with complaints raised by people living in their property.

Non-contact

A study carried out by PropertyLetByUs.com shows that in excess of 85% of landlords do not wish to deal with tenants directly. An even larger proportion of 90% said that they were unhappy with tenants telephoning or emailing them about problems.[1]

Despite the reluctance of some landlords to deal directly with tenants, the survey found that almost 60% pay for repairs to be fixed. 10% expect tenants to pay for minor repairs, with just 2% admitting that they ignored repair fees for as long as they could.[1]

Many landlords do not wish to deal with tenants

Many landlords do not wish to deal with tenants

Serious

‘Landlords often come in for bad press, but the majority of them are professional and take their responsibilities seriously,’ said Jane Morris, Managing Director of Property Let By Us. ‘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.’[1]

Morris went on to say that, ‘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 services that help reduce their workload and ensure they are fully compliant with legislation.’[1]

[1] http://www.propertyreporter.co.uk/landlords/most-landlords-dont-want-to-deal-directly-with-their-tenants.html

 

More Entrepreneurs in Unhappy Places

Published On: September 2, 2015 at 9:34 am

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People unhappy with where they live are more likely to set up their own businesses than those in happy areas.

New research analysed financial data from Company Check with the happiness ratings from Rightmove’s recent Happy at Home report.

More Entrepreneurs in Unhappy Places

More Entrepreneurs in Unhappy Places

The study found that the unhappiest parts of the country had higher levels of new business incorporation in 2014.

In the least happy place in the UK, Barking and Dagenham, 21,400 new firms were incorporated last year, the second highest of all the 130 towns and cities studied.

Eight of the top ten places for entrepreneurship were in the bottom half of the happiness index, while just one area out of the happiest 50, Bristol, was in the top ten for the amount of new businesses.

The happiest place, Harrogate, was rated at 76th for entrepreneurship.

Founder of Company Check, Alastair Campbell, says: “Entrepreneurship is an essential part of the UK’s economy, with well over 5m new businesses filing accounts with Companies House in 2014 alone.

“The correlation between happiness and entrepreneurship highlighted in this research cannot explain cause and effect, but it wouldn’t surprise me if entrepreneurship was, at least in part, a result of dissatisfaction.

“The data suggests that the less happy someone is, the more likely they are to set up their own business.

“I started my first company because I didn’t agree with how other people ran their businesses and wanted to do it my way. As business people, we shouldn’t be afraid to say that we’re unhappy with how things are and look to improve them.”1 

1 http://www.propertyindustryeye.com/rightmoves-happy-places-are-the-worst-for-entrepreneurs/

UK first-time buyer sales at post-recession high

Published On: September 2, 2015 at 9:15 am

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First-time buyer levels in Britain hit their highest number since the recession in July, according to a new report.

Data from research conducted by Your Move and Reeds Rains shows that the average first-time buyer paid £161,985 for their home last month, 8.9% more than one year ago.[1]

Buyer boost

During July, there were 29,700 purchases of property by first-time buyers, 4.9% more than in June. The average deposit required by a first-time buyer looking to secure a home was £27,975.[1]

In addition, the sales figures in July represented a 28% rise from April 2015, meaning there has been an increase of £6,5000 rise during the last three months alone. Average deposits have risen by 10% in comparison to June 2014, where a figure of £25,429 was recorded, meaning there has been a rise of £2,546.[1]

The cost of a deposit as a proportion of a first-time buyer’s typical income hit 71.6%, up by 3.1% in one month and by 5.4% annually. Moreover, the average first-time buyer’s LTV is slowly dropping, meaning initial buyers are having to stump up more cash up front with larger deposits.[1]

July’s rate of 82.7% showed a 0.5% decrease in LTV from June and a 0.2% year-on-year decrease.[1]

Optimism

Adrian Gill, director of estate agents Your Move and Reeds Rains, believes that the post-election surge in activity has receded, giving way to more consistent optimism. He feels that first-time buyers are beginning to realise that there is no immediate risk to the property market from the Government.

‘Incentives attractive to first time buyers such as the Help to Buy schemes are running along steadily, while further low cost housing development is being encouraged to entice more people onto the ladder,’ Gill noted. ‘This month’s particularly high transaction rate is also partially due to expectations that the Bank of England may announce a rate rise sooner rather than later. The thought of months of rock-bottom mortgage rates being brought to an end is encouraging many wavering first time buyers to jump on the property ladder before repayment costs shoot up,’ he added.[1]

UK first-time buyer sales at post-recession high

UK first-time buyer sales at post-recession high

Mr Gill went on to say that some first-time purchasers, ‘may have held back briefly when considering the rising deposit costs.’ He notes however that, ‘real wages have been growing too and first-time buyers are able to shoulder the short term burden of a slightly higher deposit to spare the risk of losing out on a good mortgage deal.’[1]

Mortgage rate falls

In spite of some lenders beginning to take away their cheapest deals, the average first-time buyer mortgage rates continue to fall, albeit at a slow pace. The typical rate fell by 0.75% in the year to July 2015. Moreover, the rate fell by 0.12% during the last three months and by just 0.02% between June and July.

‘So long as the economy continues on its upward trajectory and the aspiration for home ownership remains strong, property prices can only increase,’ observed Gill. ‘While the higher deposit and mortgage costs this brings may be a bother for some, taking a longer view, it’s a sign of a vibrant and dynamic property market,’ he continued.[1]

Gill also said that, ‘What may be more concerning for first time buyers is that average mortgage rates may be on the verge of climbing back up. But first time buyers shouldn’t worry. When a rate rise does come it is likely to be slight and gradual so home ownership will by no means suddenly become a costly dream. Instead, it will remain an affordable reality for those first time buyers with the drive and determination to make it so.’[1]

Regional divides

Unsurprisingly, London was the most expensive place for first-time buyers, with the average property for initial purchasers here costing £274,868 in the three months to July. Second on the list was the South East, where prices cost £201,652 on average. Nationally, the average cost of a first-time buyer property was £149,713 during the same three-month period.[1]

The least expensive places in which first-time buyers can purchase a property were found to be the North East and Northern Ireland, where prices stand at £109,240 and £106,176 respectively.[1]

[1] http://www.propertywire.com/news/europe/uk-first-time-buyers-2015083110923.html