Written By Em

Em

Em Morley

Phil Spencer Raises Money for Agents Giving

Published On: August 4, 2015 at 11:53 am

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TV presenter Phil Spencer, patron of the property industry’s charity, Agents Giving, has raised money by participating in a 350-mile paddle.

Spencer joined Embrace Mortgage Services’ Andy Trantum for the 17-mile Marlow to Windsor leg of the paddle on 1st July – the hottest day of the year so far.

Trantum’s paddle took him 20 days, averaging 17 miles per day.

The event raised £8,500 for Agents Giving.

Jon Cooke of Your Move, Rob Caldwell of Lenwell and Tracey Douglas-Jones of Davis Tate joined Trantum and outdoor pursuits expert, Danny Hodge, on other legs.

Another fundraiser for the charity in June, The Soapbox Challenge, organised by Agency Express, bought teams together at Penn House in Buckinghamshire, where they designed and raced their own karts.

Agents Giving Day on 19th June also saw industry experts come together to raise money.

The next big event is the Agents Giving ball on 25th September at the Marriott hotel in Grosvenor Square, London. The charity will announce its fundraising champions for 2015 and Phil Spencer will present the ball.

To enter and book tickets, go here: http://agentsgiving.org

Mixed reaction to Government proposals

Published On: August 4, 2015 at 11:10 am

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Following yesterday’s announcement that the Government is to clampdown on illegal migrants living in privately rented accommodation in the UK, there has been a mixed reaction from landlords and agents alike.

The proposals, to feature in next month’s Immigration Bill, will see landlords facing jail if they do not conduct thorough Right to Rent checks, or do not evict known illegal migrants from their property. This move is part of a broader operation to deal with the ongoing migrant crisis in Calais.

Welcome

One organisation that has welcomed the proposed changes is the Association of Letting Agents (ARLA). Discussing the initiative, managing director David Cox said the measures are, ‘a good first step.’ Continuing, Cox stated, ‘the plans will help to weed out the minority of rogue landlords who exploit vulnerable immigrants for their own financial gain and, with the introduction of a new five year imprisonment penalty, will help deter other such unscrupulous individuals from entering the private rented sector.’[1]

‘We will be organising training sessions for our members to ensure they are fully prepared and understand the new rules and we urge all letting agents to ensure they are ready for the impending roll out,’ he added.[1]

Critics

However, the planned move has not been received with open arms across the sector. Chief Executive of the National Landlords’ Association, Richard Lambert, told BBC Radio 4 that the proposals ‘came out of the blue,’ and were a flippant response to the problems in Calais.

A suggestion that landlords would be able to evict tenants without a court order was, ‘breaking the 40 year old principle that it has to be a court that ends a tenancy-take somebody out of their home,’ according to Mr Lambert.

‘The Home Office expect that the tenant will comply with that. As we know, tenants don’t always comply with a court order or any order to leave a property when the tenancy is ended. Normally under a court process you’d be bringing in a bailiff,’ he continued.[1]

Concern

Warning that the proposal could be detrimental for an agent or landlord looking to evict a tenant without a court or bailiff, Lambert said, ‘I do worry in the case of an illegal immigrant you possibly have then a despairing person in a desperate situation.’[1]

Mixed reaction to Government proposals

Mixed reaction to Government proposals

‘That often leads to people doing very desperate things,’ Lambert continued, ‘Who knows? Barricading themselves in? There is the risk of defending themselves with all the force they can muster. It could put people in potential danger. We need to think through the consequences of the kind of system we are putting in place.’[1]

Lambert also expressed his concern that the Government plan to inprison landlords or agents who skip Right to Rent check-ups on their tenants. He sai that, ‘this is the first we have heard of this very severe penalty. While I can see it is important to crack down on repeat offenders…it is quite surprising that it comes almost out of the blue. You do wonder how much it relates to the government wanting to be seen to be tough on migration given what is going on in Calais.’[1]

Confusion

Policy director of the Residential Landlords Association, David Smith, argues that there is already too much confusion over issues surrounding the checking of documents to prove eligibility to live and rent within Britain.

Smith feels, ‘there is the risk that people with unusual documents will be evicted by landlords who do not want to take the risk or who cannot understand their documents. Those landlords will then find themselves having acted in good faith at the time but then possibly facing an unlawful eviction claim if they are wrong.’[1]

‘Given the existing confusion over Right to Rent checks and documents the addition of a new criminal penalty procedure seems premature-especially as the consultation in the West Midlands (pilot project of Right To Rent) has not yet finished,’ he added.[1]

Concluding, Smith said, ‘the Government has not presented any evidence that landlords are directly involved in housing people they know to be illegal immigrants. There will now be concerns that landlords and agents will be prosecuted as much for not being able to operate the highly complex system as for willfully ignoring it.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/8/right-to-rent-immigration-checks-agents-happy-landlords-not

 

 

First Time Buyers Seeking Rural Properties

Published On: August 4, 2015 at 10:51 am

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Recent research from Experian indicates that aspiring homeowners are moving away from city centres and seeking properties in rural locations.

First time buyers are more likely to buy a house in the Western Isles of Scotland rather than in an exclusive area, such as Kensington and Chelsea.

Furthermore, the average age of a first time buyer has slowly risen over the last decade. Experian found that first time buyers are more often young families between the ages of 26-35-years old, than younger professionals.

This is believed to be due to families seeking a permanent residence and young professionals enjoying the flexibility of renting.

First Time Buyers Seeking Rural Properties

First Time Buyers Seeking Rural Properties

Affordability is also a key factor in purchasing one’s first home.

The latest data, from 2012, shows the average age of first time buyers in each region of the UK:

Region

Average age of first time buyer
North West 35
North East 35
Yorkshire & the Humber 36
East Midlands 35
West Midlands 38
East of England 43
London 52
South East 45
South West 48

These shocking statistics reveal that the average first time buyer in the capital is 52-years-old. This is considerably higher than other parts of the country, despite the youngest first time buyer still being 35-years-old.

London’s first time buyers must therefore wait longer until they have saved enough for a deposit and can securely purchase a property.

But London is still out of reach for so many. A report in 2014 states: “On the best measure of affordability, a standard property in London is half as affordable as it was in 1997 and not a lot more affordable than at the worst point in 2007.”1

An example of affordability pressures in the capital is emphasised by this property comparison: A two-bedroom home in Kensington and Chelsea is on the market on Rightmove for £3.1m. A three-bedroom house on the Scottish border is on the market for £182,500.

In this instance, a first time buyer could save a massive £2,917,500 by looking further afield.

Richard Jenkins, a senior consultant at Experian, comments: “The population in British cities has clearly dramatically altered in recent times. With central areas now dominated by a combination of the very well off and a new generation of young renters.”1 

Londoners are quite aware of the dramatic house prices in the city. But it is still a desirable location of accessible amenities. Property developers take advantage of this fact and make a considerable profit out of those that struggle to live in the capital.

It is a known fact that more homes need to be built, but a levelling of prices across all UK regions would also make housing more affordable for all buyers. First time buyers should have the flexibility of living either in a city or in a rural spot.

The amount of private renters in the country will continue to rise if prices do not come down, meaning more aspiring homeowners pushed out of the market.

1 http://www.todaysconveyancer.co.uk/first-time-buyers-moving-further-afield-cms-15391

Rising Rents Push Creatives Out of Their Workspaces

Published On: August 4, 2015 at 9:55 am

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The studio space in Hackney that is used by London Fashion Week designers, such as Lou Dalton, Jonathan Saunders and James Long, is set to close.

The Trampery, located on Mare Street, has seen a 400% rent rise, from £125,000 per year to £500,000 from September. This date coincides with London Fashion Week, which is one of the busiest periods for a designer.

The Trampery London Fields was opened in 2013 as a workspace for over 30 fashion businesses, including app developers and photography agents, studios for designers and a 2,500 square foot show space.

The founder, Charles Armstrong, has worked alongside the British Fashion Council and London College of Fashion to develop a space in which different sectors of the industry could mix, reflecting the communal workspaces common in the tech business.

The Trampery also runs similar spaces for tech and travel industries in East London.

Rising Rents Push Creatives Out of Their Workspaces

Rising Rents Push Creatives Out of Their Workspaces

The studio offers 24-hour access, Wi-Fi and affordable rents. Attracted by the amenities, the businesses soon became “a community”, says Long. He believes that members benefit from working together.

“If a buyer came to visit, they would meet all of the designers,” he adds.

The CEO of the British Fashion Council, Caroline Rush, says the Trampery is an “ideal place to develop a designer business.”1 

There is now a campaign to find a new venue for this practice.

As rents have increased by over 3% in the past year in London, the Trampery’s dilemma is unsurprising.

Communications Manager at the Trampery, Jamie Craven, says demand from designers has been huge since it opened two years ago, “suggesting there is a severe lack of space and it’s only getting harder to find.”

He says the closure of the workspace is “tragic”, but Londoners are familiar with aggressive property development, now “at an insane rate that we can’t compete with.”1

It is unknown what the Trampery’s building will be used for, but it is believed that a tenant is ready to move in.

Many London fashion designers are based in the east of the city. With most located in Dalston and Hackney, it is clear that they are already being pushed out of more central areas by rising rents.

In the 1990s, Shoreditch was home to young fashion labels, but spaces there are no longer affordable.

Hackney is now the preferred location of start-up fashion designers, with around 2,000 in the area, says Armstrong.

However, the Trampery’s closure suggests that they may be moved out even further. Long has relocated to Hackney Wick, where there are several warehouse buildings offering space to designers and artists.

“I’ve been in London for 12 years and seem to moving further and further out,” he comments. “These areas are going to be very soulless when all the young creatives have gone.”1

1 http://www.theguardian.com/fashion/2015/jul/31/rent-hikes-force-major-london-fashion-studios-to-shut-up-shop

Three-quarters of landlords feel arrears will remain steady

Published On: August 4, 2015 at 9:17 am

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Research has discovered that the majority of landlords believe that rental arrears will stay relatively steady during the next year.

A study conducted by Paragon Mortgages has revealed that 75% of landlords feel rental deficits will hold firm in the next twelve months.

Increase

Paragon’s latest Private Rented Sector Trends Survey results for quarter two of this year show a 4% increase in landlords that believed rental arrears would remain stable. This represented the third successive increase. Landlords reporting an expected increase remained at a low number, unchanged from the first quarter at 8%, whilst landlords expecting a decline stood at 6%.[1]

Data from the report also shows that 17% of landlords are looking to buy more rental properties in the coming three months. Terraced and semi-detached houses were most desirable, with 38% of respondents saying that they were looking for these particular property types. 35% said they were looking for apartments.[1]

Three-quarters of landlords feel arrears will remain steady

Three-quarters of landlords feel arrears will remain steady

John Heron, Director of Paragon Mortgages, commented, ‘landlords continue to experience strong tenant demand and are keen to add to their portfolios. The positive signals being picked up elsewhere around the economy also seem to have flowed through to the PRS with landlords experiencing low arrears and low, stable voids.’[1]

[1] http://www.propertyreporter.co.uk/landlords/75-of-landlords-believe-arrears-will-remain-st4ble.html

 

Prime Central London Sales Up but Down 32% Annually

Published On: August 4, 2015 at 8:59 am

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House sales in the prime central London market rose by 21% in the second quarter (Q2) of 2015 compared to Q1, but are down 32% annually, according to the latest quarterly report.

Prices have fallen slightly, by 0.6% over Q2 compared with the previous quarter, found recent prime central London data from real estate firm JLL.

Prime Central London Sales Up but Down 32% Annually

Prime Central London Sales Up but Down 32% Annually

However, the report says that the sales market remains resilient and although cautious, buyer demand has recovered since the drop before the general election in May.

Stamp Duty reform is still impacting the market though, and buyers and vendors are assessing the effect of these changes, especially in the £5m-£10m price range.

Meanwhile, the sub-£2m market has been the least affected by the election, Stamp Duty and mansion tax threats, with prices up 2.2% annually.

Sales Director at W.A.Ellis estate agents, part of JLL, Richard Barber, says: “While transaction levels remain low, particularly in the £3m-£7m sector of the prime central London market, there is undoubtedly a noticeable flight to quality.

“Affordability issues, in the face of increased Stamp Duty costs, have affected purchaser confidence, but high prices per square foot are still being achieved for the most exclusive properties.”1

The prime central London lettings market has experienced an increase in demand from private renters and supply levels have remained high throughout Q2, claims the report.

It adds that London’s improved economic conditions are causing growth in rent prices, up 1% compared to Q1 and 1.5% on last year.

Lettings transactions have risen by 4% overall in Q2, as election uncertainty caused some buyers to rent instead. Year-on-year, transactions are down 8%.

Letting Director and Head of Agency at W.A.Ellis, Lucy Morton, explains: “There has been an increase in rental stock available, mainly as a result of landlords awaiting the outcome of the general election and deciding now to let instead of sell, and these higher stock levels have meant that competition between landlords has increased, with properties in optimal condition letting first.

“This has also meant that the market has become very price sensitive with more people turning to the rental sector after being unable to secure finance or find the right property to buy.”1

The report concludes that the future of the prime central sales market is looking stable due to the majority Government and low interest rates. Prices are expected to rise by 1.5% during the rest of the year.

The lettings market is due to see rental values increase by around 3%, with more people preferring the flexibility of renting.

1 http://www.propertywire.com/news/europe/central-london-prime-property-2015080310817.html