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Em Morley

Outdoor space valuable in top London boroughs

Published On: July 21, 2015 at 9:25 am

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An interesting new report from a leading, independent estate-agent suggests that outdoor space in some of the capital’s most sought after areas can substantially increase the value of a property.

Patterson Bowe specialises in property in the boroughs of Knightsbridge, Kensington and Chelsea and believes that outdoor space in the postcode areas of SW3 and SW7 can increase property values by anything up to 20%.[1]

Extensions

The agent has stated that gardens, roof terraces and simply being near to greenery such as a park can all largely contribute to the overall value of a property in these areas. Patterson Bowe also indicate that homes of a comparable size and location with limited or no outdoor space could command between £80-100,000 less in the market.

Research also shows that gardens command the greatest additional value, adding around 20% to the overall value of a property. In addition, the agent suggests that garden squares alone can add 15% of a final property value.[1]

Outdoor space valuable in top London boroughs

Outdoor space valuable in top London boroughs

‘While the warmer months are upon us, Londoners who are fortunate enough to have their own outside space count their blessings,’ said Stuart Patterson, Managing Director of Patterson Bowe. ‘The benefits of London living combined with the luxury of outdoor space are both highly sought after and highly expensive.’[1]

Patterson continued by saying, ‘property with private outdoor space is obviously the most desirable but even those with access to a communal garden square or proximity to a public green space can still add a surprising amount of value; especially in Summer.’[1]

[1] http://www.propertyreporter.co.uk/property/20-premium-for-outdoor-space-in-top-london-boroughs.html

 

 

Boris Johnson’s Landlord Scheme is Unsuccessful

Published On: July 21, 2015 at 8:57 am

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A landlord scheme introduced by the Mayor of London, Boris Johnson, aimed at improving the private rental sector in the capital has been generally unsuccessful.

It was revealed that just 0.2% of advertisements for rental properties mentioned that the landlord or letting agent had signed up to the scheme.

Johnson launched the London Rental Standard in May last year. It is the first citywide scheme to accredit good landlords and letting agents.

He said that he hoped to “improve the experience of everyone involved, from landlord to tenant, with a clear set of good practice rules.”1

The scheme aimed to accredit 100,000 landlords and agents by 2016.

The news release for the launch read: “In time, the London Rental Standard will become an instantly recognisable feature of London’s lettings industry, helping Londoners to pick between the huge array of landlords and agents on offer.”1 

Boris Johnson's Landlord Scheme is Unsuccessful

Boris Johnson’s Landlord Scheme is Unsuccessful

However, over a year later, the official website indicates that by mid-June, just 14,452 landlords and 339 letting and management agents had signed up, significantly below the 2016 target.

A study by the Green Party claimed that the Rental Standard has failed to appeal to letting agents or tenants, despite a marketing budget of £250,000.

On Zoopla, just 114 advertisements mentioned the scheme, 0.2% of the 62,521 total listings of rental homes in July. Most were listings posted by one agent, Prime Estate Agents in Whitechapel, which included the Rental Standard in a list of schemes it is accredited by.

Darren Johnson, Green London Assembly member, comments: “Voluntary accreditation schemes only work if tenants know how to look out for the badge, creating demand that landlords might respond to. Even the agents who are members of the scheme don’t publicise it and don’t let tenants search for accredited landlords.

“The scheme is a flop and is no substitute for adequate regulations.”1

He believes that the answer is compulsory licensing for all landlords, saying that more secure tenancies and rent controls are needed to protect tenants.

Generation Rent’s Dan Wilson Craw says there are numerous issues with the Rental Standard: “It is basic, basic stuff. If a landlord isn’t already doing most of these things, they’re probably breaking the law.

“The scheme is a long way off critical mass and having currency among tenants. Even if it achieved that, there’s nothing forcing landlords who don’t comply to get better and with demand so high, those landlords will always find tenants.”1

Higher profile agents, such as Foxtons and Winkworth, have blogged about joining the scheme in the past, but the Green Party has noted that it is not mentioned in their advertisements for rental properties.

A spokesperson for Foxtons says: “As one of the initial agents to sign up to the London Rental Standard, Foxtons fully supports any initiative that helps to raise standards within the private rental sector and with the backing of the Mayor of London, it’s gained great momentum.”1

Deputy Mayor for Housing, Land and Property, Richard Blakeway, notes that London was one of the first cities to set professional standards for its rental sector.

“Over 130,000 properties are now managed under the London Rental Standard, with a rapid growth in the number of accredited agents who manage the bulk of rental homes,” he says.

“This ambitious project is one of a range of policies pioneered by the Mayor to support 2m Londoners renting, including the creation of a long-term, institutionally backed private rented market and rent to buy to help people convert rent into equity.”1

1 http://www.theguardian.com/money/2015/jul/20/boris-johnson-good-landlord-scheme-flop

Property Price Trends have Reversed

Published On: July 20, 2015 at 5:16 pm

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Property prices followed a clear trend over the last ten years, but this pattern has reversed, says Rightmove.

The property portal found that house prices are increasing sharply in the North East of England and dropping substantially in Kensington and Chelsea.

Property Price Trends have Reversed

Property Price Trends have Reversed

Within the London Borough of Kensington and Chelsea, the average asking price has decreased by over £178,000 to £2.29m during July, a 7.2% fall.

However, in the North East, prices are up 2.1% over the month to an average of £147,251. The region experienced the largest increase in asking prices of anywhere in the UK.

Meanwhile, the South East, the South West and the West Midlands all recorded price drops in July, found Rightmove. However, the portal’s monthly regional figures are regarded as unstable.

Annually, asking prices in London saw the highest gains, increasing by 7.8% over the year. Wales recorded the greatest decline, of 1.7%.

The overall data for London somewhat disguises the huge differences between boroughs. Typically unpopular areas, such as Redbridge, Waltham Forest, Hillingdon and Merton, witnessed rises of up to 15%. Prices stagnated in expensive areas such as Islington, Fulham and Richmond.

The average asking price in England and Wales rose slightly during July, by 0.1% to reach a record of £294,542.

Earlier this month, the Royal Institution of Chartered Surveyors (RICS) released figures that mirror Rightmove’s discovery that there was a sharp decline in the amount of homes up for sale.

Rightmove found: “The number of properties coming to market is running at a weekly run-rate 10.6% below the same period in 2014. The biggest drop-off in fresh supply is in the typical first time buyer sector with two bedrooms or fewer.

“The shortage of suitable property for sale highlights the need for an urgent and marked increase in the overall housing stock to help keep pace with the growth in household formation.”1

Rightmove has noted a growing battle between first time buyers and buy-to-let investors over the short supply of two-bedroom flats and houses.

In the beginning of July, RICS reported that the amount of homes for sale was at its lowest level since records began in 1978. It cautioned that the lack of stock is a vicious cycle as vendors are put off selling because there are no homes to move to.

1 http://www.theguardian.com/business/2015/jul/20/house-prices-reverse-trend-increase-north-east-fall-london

 

Homeowners add £6.5bn to value of homes

Published On: July 20, 2015 at 4:37 pm

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Property owners in Britain added a substantial amount to the value of the region’s homes in the twelve months to March 2015, according to new research.

A report from international real estate advisor Savills suggests that homeowners in the UK added around £6.5bn to the market value of Britain’s housing stock in this period.

Alterations

220,000 owner-occupiers in the United Kingdom altered or extended their property in the last year, which equates to one in seventy-four homeowners. On the assumption that the typical alteration to a property adds 10% in value, the report suggests that this would create an average uplift of £30,000 per property.[1]

However, separate research from the Council of Mortgage Lenders indicates that mortgaged home movers are only at half the level they were ten years ago, totalling 358,400 at the end of March 2015.

‘The cost of taking the next step up the housing ladder and the difficulties in acquiring the mortgage finance to do so appear to have encouraged a significant proportion of owner occupiers to extend or alter their existing home,’ noted Lucian Cook, head of Savills UK residential research.’[1]

‘Changes made by the mortgage market review and increased stamp duty for properties over £1million are both likely catalysts to home improvements, impeding the rate and volume of transactions in the market,’ Cook added.[1]

Homeowners add £6.5bn to value of homes

Homeowners add £6.5bn to value of homes

High-value work

More data from the report shows there is a greater will to develop properties at the higher-end of the market. Savills estimates that £3.6bn of the £6.5bn total value added to housing stock was in London and the South East.

The boroughs of Kensington and Chelsea and Hammersmith and Fulham top the chart for local authorities with the greatest propensity to extend. These areas created an uplift of more than £100m in total property values.

‘High value markets have generally been the strongest performers post credit crunch,’ observed Cook. ‘Extending has therefore been more financially viable, with owners recouping the money spent on home improvements through house price growth and more attractive given the relative costs of upsizing,’ he added.[1]

[1]http://www.propertywire.com/news/europe/uk-home-values-extensions-2015072010766.html

 

 

 

Landlord Ordered to Pay £25,000 for Breaching Safety and Licensing Rules

Published On: July 20, 2015 at 4:18 pm

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A landlord has been ordered to pay £25,151.92 after being found guilty of breaching safety and licensing rules.

Landlord Ordered to Pay £25,000 for Breaching Safety and Licensing Rules

Landlord Ordered to Pay £25,000 for Breaching Safety and Licensing Rules

Emmil Seeson Watson (also known as Emil Wayne Watson) of Reading, Berkshire pleaded guilty at Hammersmith Magistrates’ Court to five charges under the Housing Act 2004.

Watson did not have the required license for the amount of tenants living in his rental property and did not conduct gas safety checks.

On 8th October 2014, environmental health officers from the Royal Borough of Kensington and Chelsea visited Watson’s rental property in London W10, after tenants complained about a leaking roof. The renters could not have the roof repaired, as they were unable to contact Watson.

Up to seven tenants were living in the house, despite Watson not having a House in Multiple Occupation (HMO) license, which is required under the Housing Act 2004.

The Court was told that Watson had avoided cooperation with the council and had made it very difficult for it to contact him. Despite two previous warnings, Watson did not obtain the required license.

Since 2012, three emergencies had occurred at the property, including a leak that caused a ceiling to collapse and a window that needed repair after a burglary. Tenants were forced to complain to the emergency services and the council, as Watson could not be contacted.

Watson told the Court that if he licensed the property, he would have to increase the rents. However, some rents had stayed the same for many years. He also claimed to have paid several bills for the property out of the rents he collected.

He said that he would not replace the tenants that have left, therefore reducing the amount of people living at the property and removing the need for a license.

However, the Bench Chairman said that Watson had put his tenants in danger and failed to follow clear warnings regarding the licensing of the property.

 

New homeowners, ‘need breathing space’

Published On: July 20, 2015 at 3:16 pm

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Homeowners require ‘breathing space,’ during the first year after purchasing a property, according to a new report.

Research from TSB suggests that 56% of new homeowners would appreciate assistance with their mortgage payments in the twelve months after buying their property. Buyers say that this assistance would help turn their property into a home.

Breathing space

TSB offer a, ‘breathing space’ mortgage, which gives new homeowners lower monthly payments during their first year of ownership. 95% of respondents to the survey said that they wish to put their own mark on their new property. 36% said they would want to change wallpaper of paint colour, 27% of people wanted new carpets, whereas 7% wanted a new kitchen.[1]

‘We know the first year after moving into a new home can be expensive as people look to add their individual touch in creating a home,’ commented TSB mortgages director, Ian Ramsden. ‘People have told us they’d welcome some breathing space in the first year after moving into their new home which is why we’ve launched these mortgages.’[1]

New homeowners, 'need breathing space'

New homeowners, ‘need breathing space’

‘By reducing their mortgage payments during the first year, we’re helping people get a foot onto the property ladder whilst freeing up some of their monthly outgoings, which is a fundamental part of creating thriving local economies and people thriving across the country is a good thing for all of us,’ Ramsden added.[1]

[1] http://www.propertyreporter.co.uk/finance/over-50-of-new-homeowners-need-breathing-space-in-the-first-year.html