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Em Morley

Scotland Rejects Rent Controls Plan

Government plans for rent controls in Scotland have been rejected.

Scotland Rejects Rent Controls Plan

Scotland Rejects Rent Controls Plan

The Scottish Government has released an analysis of responses to a second consultation on the private rental sector.

The questions regarding rent controls had the highest amount of responses of all the questions in the consultation.

The majority of respondents (70%) disagreed with the principle of rent controls, with many believing the sector should be market led.

Of the 36 individual letting agents that responded, 35 rejected rent controls and one had a mixed opinion.

Those that do think that rent controls are a good idea, including supporters of the Living Rent Campaign, believe that local councils should be able to implement specific local measures if housing costs are more than one-third of a tenant’s income.

The second consultation on the private rental sector precedes a new housing bill that will be introduced into the Scottish Parliament this autumn.

Rent controls will not be included in the legislation, but the consultation suggested that further legislation would introduce them.

The Scottish Government had proposed a limit to rent rises for tenants in long-term tenancies in hotspot areas.

The document analyses the opinions of 7,689 respondents. Find it here: http://www.gov.scot/Resource/0048/00482754.pdf

The respondents gave their views on 26 questions, including grounds for possession. The Scottish Government has already decided to abolish the no fault ground.

Home-hunter preferences revealed

Published On: August 12, 2015 at 12:27 pm

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Categories: Landlord News

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An interesting new survey has looked into just how long it takes for the average house hunter to decide on their new home

The study, conducted by loan, mortgage and credit card provider Ocean Finance, indicates that one-third of would-be property buyers spend three months searching for their desired property. In addition, the research reveals that on average, homebuyers visit at least four properties before making a decision.

Browsing

In addition, a quarter of house hunters to just one week or less to secure a new home, with 17% of these people stating that they only had to visit a property once to know it was their preferred property.

When questioned on how many times prospective homeowners visit a property they believe they like, 60% said that they need to see a home two or three times before agreeing to a move. However, over two-thirds of homebuyers said that they know instantly by the end of a viewing that they would like to move in.[1]

Gareth Shilton, spokesman for Ocean Finance, stated, ‘buying a home is the biggest purchase of our lives and small mistakes can cost a lot. Make sure you do your research, there are many useful websites that can help you to find more information about the area you are moving to, but do a couple of visits to see the property and the neighbourhood.’[1]

Home-hunter preferences revealed

Home-hunter preferences revealed

‘Don’t make any snap decisions, because then you may find yourself regretting buying a property that you are not happy with,’ he added.[1]

Off-putting

Additional data from the report also shows the measures that are most likely to put people off buying a home. The greatest deal breaker was found to be traffic noise, while the majority of those questioned said that they would not purchase a property on a main road. A lack of natural light or an electricity pylon in close proximity was also found to make a house more unattractive.

No local supermarkets or shops was also found to be off-putting, alongside homes too far away from public transport or with a small garden.

Shilton added, ‘when you are house hunting you are on the lookout for deal breakers, like a bad neighbourhood or messy garden. Before you start looking make a list of what you consider to be an essential you can and can’t live with and what can be easily improved or upgraded such as wallpaper or carpets.’[1]

[1] http://www.propertyreporter.co.uk/property/how-long-does-it-take-to-pick-a-new-home.html

 

 

Connells Buys Another Lettings Firm

Connells is hoping to double the size of its lettings division by the end of the year, and it is going the right way about it by buying another lettings firm, Kingsford Letting in Leamington Spa.

Connells Buys Another Lettings Firm

Connells Buys Another Lettings Firm

Kingsford Letting covers Leamington Spa, Coventry, Warwick, Kenilworth and the surrounding areas. Alex Chard established the business in 2009.

The firm will be transformed into Connells Leamington Spa under the supervision of lettings partner Selina Egan, who will be responsible for maintaining the Kingsford Letting portfolio.

Mike Rowley, Connells Group’s Acquisition Director, says: “It’s exciting to maintain our acquisition momentum and this is another example of our successful lettings expansion strategy taking effect.

“Since re-joining the company at the start of June, I have been surprised by the level of interest received from agents looking to sell and who wish to see their business absorbed into a company such as Connells, offering depth of experience and expertise.

“We press ahead with our plans to double our lettings footprint by the end of the year and continue to seek out those acquisition opportunities that are perfectly aligned with our business and where we strengthen our market position.”1 

Chard comments: “It was with sadness that I made the decision to sell Kingsford Letting, but the disposal of the business now allows me to concentrate on a new position in my main field of motorsports.

“Connells has given me the confidence that our landlords will be well looked after and given the best service possible. The entire sale has been handled quickly, efficiently and professionally.”1

1 http://www.propertyindustryeye.com/acquisition-trail-for-connells-hots-up-as-it-buys-yet-another-lettings-business/

 

 

Mortgage lending up by a fifth in June

Published On: August 12, 2015 at 11:16 am

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Categories: Finance News

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Further indications that the property market is well on the way to full recovery came with the news that mortgage lending increased by more than a fifth during June.

Rises

The Council of Mortgage Lenders said that 61,000 loans, totalling £10.6bn, were advanced to people buying a home in the month. This represented a rise of 22% in number and 25% in value, in comparison to May.[1]

A mixture of first-time buyers and homemovers drove activity rises, with lending to both groups increasing by around 25%. However, despite the significant monthly rises, 1% fewer mortgages were agreed in June than one year previously.[1]

Remortgaging activity in particular soared by around 31% year-on-year, with totals also 30% greater than what they were in May. The Council of Mortgage Lenders attributed the large increase to a growing demand amongst homeowners to take advantage of the current range of competitive mortgage rates on offer.[1]

Interest rates

Homeowners are looking to secure mortgage rates currently available before the Bank Rate begins to increase. Bank of England Governor Mark Carney recently indicated that the cost of borrowing could rise at the beginning of next year.

Paul Smee, director general of the Council of Mortgage Lenders, said that, ‘it is likely that people are now beginning to feel a rate rise is a realistic prospect and not just a distant theoretical possibility. After a slower than expected start to the year, lending now appears to be picking up as we expected and in line with our recently revised forecast.’[1]

A record number of competitive mortgage deals on offer meant that first-time purchasers spent just 18.2% of their income on capital repayments and interest in the last month-the lowest total since the Council of Mortgage Lenders began tracking in 2005.[1]

Mortgage lending up by a fifth in June

Mortgage lending up by a fifth in June

First-time finance

Additional data from financial information group Moneyfacts shows that first-time buyers are now £2,000 a year better off than they were just two years ago. Moneyfacts suggest the number of deals available to first-time buyers has risen from 42 in 2013 to 195 today. In addition, the lowest interest rate on a two-year fixed rate mortgage for someone with a 5% deposit has fallen from 5.59% to 3.49%.[1]

Charlotte Nelson, finance expert at Moneyfacts commented that, ‘the launch of the Help to Buy mortgage guarantee scheme acted as a starting gun for this sector, making it almost acceptable to lend at higher loan-to-value again. Once these deals hit the market, other providers outside of the scheme had no alternative but to compete to attract customers.’[1]

‘Not only are first-time buyers benefiting from more choice, but this fierce competition has caused rates to drop significantly to the lowest on Moneyfacts.co.uk records,’ Nelson added.[1]

[1] http://www.zoopla.co.uk/discover/property-news/lending-on-homes-jumps-by-more-than-a-fifth-in-june-11-08-15/?search_source=top_nav&utm_content=buffer04962&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer#toD3ri2QQI3vkAxK.97

 

Countrywide Buys Whole PRS Development

Countrywide Buys Whole PRS Development

Countrywide Buys Whole PRS Development

Countrywide’s residential property fund, Vista Fund, is buying a whole off-plan private rental sector development in Liverpool.

The Vista Fund, established alongside investment manager Hermes, is purchasing Baltic Village for over £50m.

All of the 324 apartments at the site will be reserved for private rental purposes.

The development will also include 6,100 sq. ft. of retail space, 358 car parking space and 11,000 sq. ft. of tenant amenity space, including a concierge service, meeting rooms, a café and social area.

Balfour Beatty has been contracted to build the project, which is due for completion in summer 2016.

It is one of the largest built-to-let deals outside London.

Managing Director of Countrywide, Graham Bell, says: “We view Liverpool as a strong investment proposition and we very much see similar regional investments as the future of the private residential sector in the UK.”1

1 http://www.propertyindustryeye.com/countrywide-investment-fund-buys-complete-scheme-for-private-rent/

 

How This One-Bed Basement Flat Became a Stunning Family Home

Published On: August 12, 2015 at 9:50 am

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Categories: Property News

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Looking at a property that may not seem promising can dishearten the average buyer, who may not see the potential. This couple prove that having an architect or designer view a home with you can really transform its appeal.

Dan Rowland, a 38-year-old architect, bought a garden flat that he now lives in with his wife, designer Nina Constantin, 36, and their six-month-old daughter, Isla.

Back in 2011, the property was so different to how it is now that it looks like a different building altogether.

Constantin trained in furniture and product design in Leeds and currently owns two successful design businesses.

Four years ago, she lived in a shared flat in Notting Hill, but was searching for the love of her life who had a strong design background. Her first date with Rowland was at a wine bar where he brought along the plans for the flat.

“[He] asked me, ‘can you read plans?’” remembers Constantin.

Rowland had already renovated a couple of properties while training to become an architect. He lived in Dulwich and would search through auction catalogues. He found the one-bedroom, one-bathroom basement flat in Ladbroke Grove through Savills. It was being sold by a housing association.

When he viewed the property, he was unimpressed: “It was rancid.”

The back garden was full of earth and rubble and Rowland could not determine its size.

The living room at the front and an old coal chute and cellar were full of rubble.

A bedroom and small kitchen were at the back.

At the auction, Rowland heard his main competitor comment that they didn’t believe the flat could be converted into two bedrooms. Rowland disagreed: “But the minute I saw it, I knew I would take walls out and make a three-bedroom flat.”

By the time he showed the plans to Constantin, Rowland had planning permission to extend the back and drop the depth by around two foot, eight inches, allowing for a double bedroom at the front.

The master bedroom is also at the front, featuring a bay window that lets in lots of natural light. At the back is a big living room/kitchen area.

Rowland installed floor-to-ceiling sliding doors and a French door, so that the back wall is almost completely glass and looks out to the sophisticated garden. Lots of earth was removed and a corkscrew willow tree was moved to the centre.

Rowland and Constantin’s second date was on site. She looks back: “He’d taken all the walls out and you could see right through to the back garden.

“But that’s when I knew he was the one, because he talked with such vision and passion. We see things the same way.”

Rowland worked on the house everyday alongside the builders. He also designed and made things for the home, including cantilevered steps down to the third bedroom and a kitchen table and bench made from steel and oak.

The three en suite bathrooms all have matching ceramic tiles, sprayed MDF and poured resin floors and computer-generated Corian sinks, designed by Rowland.

The kitchen was built on site. “That way, it only cost £7,000,” says Constantin.

The builders did not think the ten-foot long glass splash back was possible.

All of the floors are polished concrete with exposed brick walls. The main feature is a triple pendant light that Rowland watched being blown.

Constantin believes: “Lighting is the most important thing. As this was Dan’s flat, I didn’t have input at the start, but we worked together on details and the interiors and colour schemes. I lightened it and added subtle tones – pistachio in the small bedroom, eau de nil in the master, and yellow and turquoise in the third bedroom.”

The project took longer than expected. “By then, we were desperate to move in, so we set a date for a party, regardless,” says Constantin. “Dan and I were literally laying the last bit of terrace as our first guests arrived.”

Looking at this stylish, bright and spacious home, it’s hard to believe that it was once just a basement flat.

Rowland offers his top buying tips:

  • “Take an architect with you. Look at the big picture, don’t be put off by superficial things that can be fixed, but do take advice.
  • Check down the street and see what neighbours have done. Ours had extended at the back, which set a precedent that helped convince the planners.
  • Look on Google Earth – you can see what people in the street have done.
  • The difference between a good architect and a builder is that an architect is trained to see opportunities that a builder won’t.”1

Constantin has a top design tip:

  • “Lighting is so important; it affects your mood and sense of wellbeing, as well as being transformative. I feel anxious in a badly lit space.”1

1 http://www.homesandproperty.co.uk/home-garden/homes/one-bedroom-basement-flat-three-bedroom-home-worth-double-value