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Em Morley

Kensington and Chelsea to Move Families in Temporary Accommodation

Published On: August 3, 2015 at 4:57 pm

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The most expensive place to live in the UK, the Royal Borough of Kensington and Chelsea, is set to move some of its most vulnerable residents out of London due to the spiralling property market.

The Conservative constituency, where the average home costs £1.4m, will spend £10m on properties outside the borough for those that have become homeless. It is looking for 39 homes in outer London, around the M25 and in the Home Counties.

The properties will become temporary accommodation for people who often suffer physical or mental health problems and who do not have somewhere to live.

The plan has been criticised by housing activists, who believe the use of temporary accommodation to house vulnerable tenants will isolate them from vital community support.

The council leader, Nick Paget-Brown, says: “In an ideal world, we would like to buy properties in Kensington and Chelsea, but the numbers simply don’t stack up. We could only buy a handful of homes here. By looking further afield, we can purchase significantly more, making a huge difference to those on our waiting list.”1

Nearby Westminster City Council has spent £3.6m purchasing 25 homes in Thurrock, Essex, for temporary housing. The amount of Westminster-owned properties located outside London is now around 100.

Kensington and Chelsea to Move Families in Temporary Accommodation

Kensington and Chelsea to Move Families in Temporary Accommodation

The most recent group bought by the council are in Grays, 25 miles east of central London. They cost an average of £183,000 each, compared to the average house price of around £1m in Westminster.

This strategy arrives after plans were announced to demolish flats in Chelsea, which the council currently uses for temporary accommodation. It is thought that they will be replaced by private apartments costing up to £4m each. Comedian Eddie Izzard and the deputy Labour leadership candidate, Tom Watson, have opposed the scheme.

A council spokesperson states: “We do not rule out having to go further afield and will consider the M25 area and southern counties.”1

A single mother of two, Doaa Borie, 38, has one child who has special educational needs. She says: “It is unfair and it makes me angry.”

Her family is facing eviction from temporary housing on the Sutton Estate, a social housing area in Chelsea, which will be partly replaced by multi-million pound luxury apartments.

“It seems like only rich people can lead normal lives,” she continues. “Sending people out of London is a very bad idea. This will damage children by pushing us away from the community.”1

The Labour leader of Thurrock Council, John Kent, claims he was not told about Westminster’s plans and demands that the authority pays the social care costs of residents it moves out of the area.

In a letter sent in March to Westminster’s Conservative council leader, Philippa Roe, Kent writes: “Your current approach simply props up your failing housing system.

“It increases the burden on the public purse through ever-growing housing benefit payments by pushing up rents and demand for housing outside London.”1 

The former leader of the Labour group at Westminster, Paul Dimoldenberg, also opposes the proposal: “Westminster Conservatives are continuing to export the homeless to East London and Essex where they have no social connections or family support.

“They are using their financial wealth to take away homes from residents in Grays who want to buy or rent locally.”1

The Westminster Cabinet Member for Housing and Regeneration, Daniel Astaire, defends the scheme as “a practical step to help people in housing need” and says housing is a London-wide problem that will not be solved by sticking strictly to borough boundaries.1

The average house price in Kensington and Chelsea is the most expensive of anywhere in the country, according to Land Registry.

The council is hoping to save huge amounts of money by looking outside the borough. It is planning to spend no more than £450,000 per home.

The system could leave workers in temporary accommodation with long commutes if they want to keep their jobs. However, the council says that any two and three-bedroom homes would be within commuting distance of the borough and in areas where the ethnicity of the population is similar to the different types of households who live in temporary housing.

Policy Director at homelessness charity Shelter, Roger Harding, voices his concerns: “This is yet another symptom of the capital’s drastic shortage of genuinely affordable homes, which is seeing homeless families uprooted and torn away from their local area on an unprecedented scale.

“Imagine the pain of losing your home and just wanting a little help until you get back on your feet. And instead, finding yourself being forced to pack your bags for a new town and waving goodbye to schools, jobs and everyone you know.

“If we don’t want to see parts of London becoming no-go zones for all but the very rich, then the only solution is for the Mayor and the Government to invest in building the genuinely affordable homes that we so desperately need.”1

1 http://www.theguardian.com/uk-news/2015/aug/02/london-social-housing-kensington-chelsea-rising-prices

 

Moving home stressful for majority

Published On: August 3, 2015 at 4:21 pm

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New research has highlighted the stressful experience attributed to moving home in the UK, with the majority of respondents to the survey indicating that this was the case.

Stress

An investigation by finance comparison website MoneySuperMarket found that 86% of people questioned indicated that moving home got them stressed. 46% said they did not feel in control, with 39% revealing the cost of a new home was more than they had anticipated. Two-fifths of respondents were found to have paid £5,000 more than they had expected.[1]

In addition, data from the report shows that 19% of people said moving home led them to change or compromise their career, with 20% admitting a house move caused an argument with a partner.[1]

Where people were found to have overpaid, 63% said that they utilised their savings, 16% used credit cards and 11% were forced to rely on financial assistance from their parents.[1]

Moving misery

71% of people questioned indicated that packing up their belongings was the most stressful part of moving home. 62% said that finding a property in the right price bracket was most concerning, with 57% outlining choosing the correct location.[1]

57% stated that setting up new utility contracts was the most stressful part of the process, with 56% saying unpacking and dealing with estate agents riled them the most. What’s more, 20% said that they were unable to concentrate on their work, with 19% taking annual leave to make sure things were sorted.[1]

‘Whether for the first time, or stepping up the ladder, moving home is a momentous life choice for people to make,’ noted Dan Plant, consumer expert at MoneySuperMarket. ‘There is so much to consider, both before and after keys are handed over, and as it takes an average of six months just to find a property, it’s understandably stressful and has a knock on effect in all aspects of all people’s lives.’[1]

Moving home stressful for majority

Moving home stressful for majority

Tiring

Plant said that despite moving housing normally being an exciting time, ‘the most common words people associate with moving are tiring, draining and frustrating. However, he said that, ‘moving house doesn’t have to be a completely arduous process. Being as prepared as possible will help ease the angst.’[1]

He went on to say that, ‘it’s important to consider all costs involved so you aren’t hit with an unexpected bill at any point from the mortgage, surveys and stamp duty, to removal hire and any other necessary additions to the new house. Simple steps such as creating a checklist and timeline will also alleviate the extra pressure on your relationships, jobs and health.’[1]

[1] http://www.propertywire.com/news/europe/uk-moving-home-stress-2015080310815.html

 

 

Landlord Eviction Plans Could Cause Violence

Published On: August 3, 2015 at 3:52 pm

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A Government proposal to require landlords to evict tenants living in Britain illegally from their properties, without a court order, could cause violence, warns the National Landlords Association (NLA).

The NLA believes that the plans could lead to tenants acting irrationally.

The NLA’s Chief Executive, Richard Lambert, accuses the Government of introducing the proposal suddenly, after the Calais migrant crisis worsened. Ministers have announced a change in the law that will allow landlords to evict illegal immigrants without a court order.

Under the upcoming Immigration Bill 2015, landlords must evict illegal immigrants when they receive a Home Office notice that their tenant does not have the right to rent in the UK. In some cases, landlords will be able to evict their tenants without a court order.

Landlords that do not check the immigration status of tenants could be fined or imprisoned for up to five years, under a new criminal offence that will be included in the bill.

The right to rent scheme is being piloted in the West Midlands and will be rolled out nationwide. The system requires landlords to check evidence of a person’s right to live in the UK by inspecting their passport or biometric residence permit.

Landlord Eviction Plans Could Cause Violence

Landlord Eviction Plans Could Cause Violence

Lambert warns: “I am slightly concerned that we are breaking the 40-year-old principle that it has to be a court that ends a tenancy – take somebody out of their home – rather than giving that power to the executive. But we do need something that will work in progress… It is a welcome step forward.

“The Home Office expects 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.

“I do worry in the case of an illegal immigrant you possibly have then a despairing person in a desperate situation. That often leads to people doing very desperate things. 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.”

The Government’s plan is designed to discourage migrants from moving to the UK, according to Home Office minister James Brokenshire.

The Home Secretary, Theresa May, joined her French equal, Bernard Cazeneuve, to warn would-be migrants against moving from their country of origin.

The two ministers wrote in an article for the Sunday Telegraph: “Ultimately, the long-term answer to this problem lies in reducing the number of migrants who are crossing into Europe from Africa.

“Many see Europe, and particularly Britain, as somewhere that offers the prospect of financial gain. This is not the case – our streets are not paved with gold.”1 

Part of the plans to make it harder for illegal migrants to live in Britain is a list of persistent rogue landlords and letting agents, allowing councils to know where to concentrate their enforcement action. The Communities Secretary, Greg Clark, states: “We are determined to crack down on rogue landlords.”

The Government is due to announce a stricter fit and proper person test for landlords of licensed properties. Rent repayment orders will also be extended to allow local authorities to claim back rent payments from landlords who do not maintain their properties to a high standard.

Lambert has thanked the Government for consulting landlords on some of the changes. However, he is not pleased about the plan to imprison landlords who repeatedly fail to check the immigration status of tenants and who do not evict those living in Britain illegally.

He says: “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

Clark says the proposals will help landlords by saving them the cost of going to court, if the Home Office serves a legal notice that the tenant does not have the right to live in Britain.

He claims: “What we are doing is cracking down on those rogue landlords who make money out of illegal immigrants, exploiting vulnerable people and undermining the immigration system.

“To save them the cost and bureaucracy of having to go to court when the question to be resolved is very clear – whether or not that person is entitled legally to be in this country – the Home Office can serve a legal notice that makes it clear one way or another.”

However, Clark admits the landlord would have to go to court if a tenant refuses to leave after being served a notice based on the Home Office documentation.

The landlord must then seek a ground of possession order from the courts. Clark adds: “What you have done is save a prior court process.”1

1 http://www.theguardian.com/uk-news/2015/aug/03/plan-landlords-evict-illegal-immigrants-violence-calais-migrant-crisis

Estate Agent Sentenced After Attacking Another Agent

Published On: August 3, 2015 at 2:51 pm

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Estate Agent Sentenced After Attacking Another Agent

Estate Agent Sentenced After Attacking Another Agent

An estate agent was sentenced to two months in prison after pleading guilty to criminal damage in the home of another agent, his ex-girlfriend.

Timothy Neal, from Plymouth, Devon, entered the home of his former partner and covered her bed in diesel before pouring bleach into her underwear drawer.

Exeter Crown Court was told that Neal was distraught after breaking up with Nicola Davey after 16 years.

When he learned that she was seeing someone else, Neal used a key to access her property.

Neal was ordered to pay £2,000 in compensation and was served with a restraining order, prohibiting him from going to the house in Paignton or to the estate agents where Davey works and where Neal used to work.

Davey made a victim impact statement, saying that she felt vulnerable in her own home.

As Neal had already served 98 days on remand, he was released immediately.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents rise by 2.5% during past twelve months

Published On: August 3, 2015 at 2:45 pm

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The latest Office for National Statistics Index of Private Housing Rental Prices shows that private rental prices rose by 2.5% in the year to June.

Regional rises

Data from the report shows that rental costs increased by 2.5% in England, 2.1% in Scotland and 0.8% in Wales in the 12 months period. In England specifically, rents rose across all regions, with the most significant rise recorded in London with 3.8%.[1]

Additionally, consumer price index (CPI) inflation stood at 0% during the same timeframe.

Steve Bolton, founder of Platinum Property Partners stated, ‘last month saw the biggest annual increase in average rents seen since January 2013. A shortage of suitable properties, coupled with strong consumer demand-both from people priced out of the housing market and those who find renting better suits their lifestyle-has set rental prices on an upwards trajectory.’[1]

Increase

‘This rise in rents isn’t likely to slow down any time soon, particularly as landlords now face a number of increasing costs,’ Bolton continued. ‘The prospect of an interest rate rise, together with the cap on mortgage interest tax relief introduced in the Budget, could pressure some landlords to increase their rents as they look to regain some of their profits.’[1]

Bolton also said, ‘while growing wage packets mean some tenants will be able to cope with higher rents, landlords should be focusing on revisiting their strategy rather than passing their costs directly on to tenants. The Houses in Multiple Occupation (HMO) model provides up to three times more rental income than a standard buy-to-let investment, providing a sufficient buffer against rising costs.’[1]

Rents rise by 2.5% during past twelve months

Rents rise by 2.5% during past twelve months

Concluding, Mr Bolton said, ‘our recent report showed HMO’s achieved a 40% higher return on equity from 2010-14 compared to the wider buy-to-let market. HMOs are also beneficial for tenants: PPP analysis shows that tenants living in high quality shared accommodation pay £419 less each month in rent and bills than someone who is renting alone.’[1]

Stuck

Betsy Dillner, director of Generation Rent, added, ‘the Government might cheer zero inflation but it means very little to those of us who see any pay rises end up in our landlords’ pockets. As more people find themselves stuck renting, runaway rents will drag the economy down. Ministers urgently need to ramp up their investment in new homes, and bring in rent controls to lower the cost of living for all.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/rents-up-2-5-in-the-past-year

 

 

Are Tenants Allowed to Work from Home?

Published On: August 3, 2015 at 1:55 pm

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It has often been debated whether a tenant can work from home.

If a landlord permits the operation of a business, they could unintentionally create a tenancy under the Landlord and Tenant Act 1954, meaning that the tenant will have the automatic right of renewal under Part II of this Act.

Are Tenants Allowed to Work from Home?

Are Tenants Allowed to Work from Home?

The Government has reacted by passing section 35 of the Small Business, Enterprise and Employment Act 2015, see here: http://www.legislation.gov.uk/ukpga/2015/26/section/35/enacted

This gives a new definition to a Home Business Tenancy.

A Home Business Tenancy is any tenancy under which the tenant occupies the rental property as a home and is also permitted to operate a home business from the premises.

A home business is defined as any business that can reasonably be run from homes, but excludes any business involving the sale or supply of alcohol.

An agreement that is a Home Business Tenancy will automatically be excluded from the Landlord and Tenant Act 1954 and will be a tenancy of a single dwelling under the Housing Act 1988.

The Housing Act 1988 already allowed some home working, if the tenancy was mainly used to provide a home for the tenant. Now, all forms of home working will be permitted and these tenancies will fall under the Housing Act 1988.

However, although the landlord can now be confident in whether their tenant can work from home, there are other parties to consider.

Mortgages, superior leases and insurance policies often include clauses requiring home use only and prohibiting any business use of the property.

Depending on the wording of these clauses, landlords may not be able to permit business use by their tenant, even if it is a home business.

The Government’s changes will not apply to any tenancy that exists before the new rules are implemented or renewals of tenancies that exist before.

Although letting agents and landlords may welcome these changes, it is not clear how many will benefit.