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Em Morley

London councils to crackdown on basement extensions

Published On: July 30, 2015 at 12:50 pm

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Local councils in the capital have reportedly began to clamp down on wealthy home owners wishing to extend their properties underground to create more living space, alongside swimming pools, gyms and a space for their cars.

Popular

Extending basements a number of storeys below ground level are becoming more and more popular in some of London’s prime property locations. These developments are becoming more commonplace in regions such as Westminster, Kensington and Chelsea but are resulting in growing complaints from neighbours.

Most commonly concern is that alongside noise and disturbance, people are worried about how underground work may affect surrounding properties. ‘Iceberg’ homes, where the majority of living space is underground, have seen owners flaunting strict planning rules. However, a number of councils are altering rules in order to make harder for permissions to build underground to be granted.

The Royal Borough of Kensington and Chelsea is set to introduce restrictions on basement extensions, which will limit developers to a single story. In addition, extensions will be banned completely from listed buildings.

Westminster council has also confirmed that basement extensions in the borough will need full planning permission and will be restricted to one storey, with the exception of extraordinary circumstances.

London councils to crackdown on basement extensions

London councils to crackdown on basement extensions

Epidemic

‘Residents have been facing an underground epidemic on their quiet residential streets, and I want to help stop the horror stories of people living next to mega basement construction,’ said Robert Davis, Westminster Council’s deputy leader.[1]

‘All basements will now go before the council’s planning department, allowing neighbours and local communities to have their say and for developers to demonstrate they will not cause undue harm to neighbours or the characters of the area,’ Davis added.[1]

[1] http://www.propertywire.com/news/europe/london-property-basements-planning-2015073010805.html

 

 

Countrywide’s Profits Fall 61%

Published On: July 30, 2015 at 11:54 am

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Countrywide's Profits Fall 61%

Countrywide’s Profits Fall 61%

Countrywide has reported to the City of London Corporation that the first half of this year experienced “depressed” activity in a “difficult” housing market, causing a 12% drop in sales.

Countrywide’s total income for the first six months of 2015 was up, by just 1% to £338.6m. However, operating profits plummeted by 61% to £16.2m from £41.6m in the same period last year.

In the first half of this year, Countrywide offices exchanged on 27,579 residential properties, down from 31,480 in the same period of 2014. Its London and premier brands exchanged on 2,861, down from 3,110.

Consequently, its estate agency division earned £86.732m, down from £101.313m, and its London and premier brands took £56.816m, slightly less than the £57.840m they brought in previously.

Positive areas were the commercial division and residential lettings, where income and earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 7%.

Countrywide also said that in the first half of the year, it acquired 17 businesses for a total of £41.4m.

Its report mentions the reorganisation of the UK’s largest agent, named Building Our Future, which plans to double the size of Countrywide by 2020.

Foxtons and Connells have told shareholders that they expect the residential market to pick up, and Countrywide agrees. However, it’s chairman, Grenville Turner, says the group is “cautious.”

He adds: “We are beginning to see the green shoots of a post-election recovery and with a typical cycle of 13-14 weeks to convert pipeline to exchange, this is encouraging for building positive momentum into 2016.”1

1 http://www.propertyindustryeye.com/countrywide-set-to-announce-results-to-city/

Housing Zone scheme reaches landmark

Published On: July 30, 2015 at 11:27 am

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Encouraging news has come today with the announcement that the Mayor of London has reached the 50,000 landmark for new homes in London through his Housing Zone scheme.

In addition, three further zones have been announced, with the Mayor promising to fast-track development in the boroughs of Brent, Westminster and Sutton.

Efforts

The announcement of the new areas builds upon the existing efforts to provide new housing, including the creation of the London Land Commission and the London Housing Bank.

18 of the promised 20 areas outlined in the Housing Zone scheme have been announced, which brings the total number of houses to be built to 50,965. A third of these new homes will be affordable housing to buy or rent. [1]

Housing Zones are the result of a joint effort by the Greater London Authority, the government and local boroughs to quicken up the approval process and push through development. It is hoped that together, valuable brownfield land can be uncovered in order to meet London’s persistent housing demand.

Today’s announcement has seen the Mayor promise to invest £44m in three new Housing Zones in different areas of the capital. Together, the zones will provide 6,600 new homes, alongside new transport links, 13,000 construction jobs and retail precincts, making these areas in urban districts for Londoners.

Housing Zone scheme reaches landmark

Housing Zone scheme reaches landmark

Hard work

Mayor of London Boris Johnson, commented, ‘we have worked very hard to reach our goal of 50,000 homes, and we’ve done it with two more Housing Zones to go. This scheme has proven extremely popular with boroughs, who have clearly been looking for just that extra bit of assistance in revving up their housebuilding to answer clear demand for Londoners.’[1]

‘I could not be more pleased at the progress of this innovative scheme and the real outcomes it has delivered for our city,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/mayors-housing-zone-scheme-reaches-50000-new-homes-target.html

 

Removal of Wear and Tear Allowance Not Good for Tenants

Published On: July 30, 2015 at 10:51 am

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The Association of Residential Letting Agents (ARLA) believes that removing the 10% wear and tear allowance for landlords and instead applying tax relief on replacement furnishings will not help tenants.

Removal of Wear and Tear Allowance Not Good for Tenants

Removal of Wear and Tear Allowance Not Good for Tenants

It argues that landlords could be less inclined to buy good furniture and furnishings initially, and that rents could rise as a consequence.

In its formal response to the Government consultation, ARLA states: “It is important to remember that most landlords are not cash rich.

“Most are heavily leveraged through buy-to-let mortgage products. As such, with house prices continuing to rise, net rental yields are only around 4% for most landlords.

“As the current wear and tear allowance is dependent on the amount of rental income received, we expect to see a rise in rents as landlords try to balance their books and recoup the lost revenue brought about by these changes.”

ARLA argues that the Government has not considered the impact of its plans on tenants, who would have to spend more of their wages on rent if prices increase, thus reducing the amount they can put towards a deposit, “and therefore putting the dream of homeownership further out of reach.”

ARLA also comments on the administrative burden that landlords will face when the new system is introduced in April 2016.

It says that “significant amounts of evidence” will be needed to claim the relief and guidance must be published to explain to landlords what they can and cannot claim for.

The group also reminds the Government that the current wear and tear allowance is applied to the initial cost of furnishing a property: “By withdrawing this relief, landlords will be faced with a larger financial burden… and may buy cheaper and less durable furniture and furnishings, knowing they will be able to use the allowance to replace poor quality furniture.”1 

1 http://www.propertyindustryeye.com/scrapping-of-wear-and-tear-allowance-bad-for-tenants/

Increase in Mortgage Approvals

Published On: July 30, 2015 at 9:49 am

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Increase in Mortgage Approvals

Increase in Mortgage Approvals

The Bank of England (BoE) has revealed that there were 66,582 mortgage approvals in June.

This is higher than the average of 62,971 for the previous six months, but less than April’s total of 68,051.

There was also a significant rise in remortgage approvals in June, at 36,620 from the average of 33,759 for the six months beforehand.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlords left to clean up tenants’ mess

Published On: July 30, 2015 at 9:38 am

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Concerning new research has indicated that a growing number of landlords are facing dirty property damage come the end of some tenancy agreements.

Filthy

A study conducted by PropertyLetByUs shows that nearly a third of landlords were faced by dirty ovens at check-out time. This was followed by unclean baths and sinks (23%), stained carpets and floorcoverings (22%), grubby showers (10%) and dirty kitchen cupboards (9%).[1]

The research also shows that over 60% of landlords are left with rubbish left by their previous tenants in lofts, sheds, garages and gardens. This said, muck and grime are not the only problems faced by landlords.[1]

In excess of 40% of landlords said that tenant redecorated their homes without permission, with one in six saying they had experienced pet damage. 7% said damage from children, such as scrawling on walls, was present, with 4% recording broken curtain poles and blinds.[1]

Landlords left to clean up tenants' mess

Landlords left to clean up tenants’ mess

Problem

Jane Morris, Managing Director of Property Let By Us, said, ‘according to recent figures from the NLA, around 400,000 landlords in the UK have had their property damaged by tenants in the last 12 months. Our research shows that the problem is much bigger than this. So many landlords face expensive cleaning and repair bills at check-out, which are often contested by the tenant.’[1]

‘It’s so important for landlords to carry out thorough reference checks before taking on a new tenant.  They should also ensure there is an inventory and make regular visits to their property to check its condition – ideally every 3-4 months.  This will give landlords the opportunity to engage with the tenant and discuss any issues, so they can be resolved, well before check-out,’ Morris concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-facing-increasingly-dirty-properties-at-end-of-tenancies.html