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Em

Em Morley

Socialist Party Owns Property Worth Almost £1m

Published On: July 15, 2015 at 1:46 pm

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A small socialist party that believes in the abolition of money has around £1.3m in cash and property.

The Socialist Party of Great Britain has just 300 members, but cash reserves of £452,250 and property worth £900,000, its latest accounts reveal.

The Party was founded in 1904, making it one of the oldest in the UK, and is based on Clapham High Street.

It purchased the shop in South London in 1951 for around £3,000.

However, due to the London property price boom, the value of its asset increased by £400,000 in just one year.

Adam Buick, media spokesperson, who joined the Party in 1962, says there is no contradiction between its socialist beliefs and its capitalist finances.

He says: “We live in a capitalist society and you need money to survive in a capitalist society. We are not a charity, we are not giving it away to the poor, we are using it to propagate the case for socialism.”

The Party does not have leaders, but aims to use politics to create a mass socialist movement.

Buick says that the Party is regularly approached by estate agents and property developers, who urge them to sell the headquarters, which is surrounded by restaurants and fashionable shops.

Some members are in favour of selling the premises and moving to a cheaper, less high profile area, and others argue that the Party’s funds should be put into an investment account. However, they will not invest in the stock exchange.

Buick adds: “That would be going too far, although there would be some members who wouldn’t necessarily be against that.”1 

He says that the Party has only recently started having its accounts fully audited, including an estimate of its property worth, to comply with Electoral Commission regulations.

Additionally, the Party has benefitted from generous bequests from members.

1 http://www.bbc.co.uk/news/uk-politics-33478400

RLA Believes that Landlords Don’t Need More Regulation

Published On: July 15, 2015 at 12:45 pm

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RLA Believes that Landlords Don't Need More Regulation

RLA Believes that Landlords Don’t Need More Regulation

As the Welsh Government launches its Rent Smart Wales scheme, the Residential Landlords Association (RLA) has spoken out about its thoughts.

Yesterday, the Welsh Minister for Communities and Tackling Poverty, Lesley Griffiths AM, revealed the Rent Smart Wales initiative, which is a new landlord and agent registration and licensing scheme that will come into effect in the autumn.

The Welsh Government has not yet confirmed when a landlord will be able to register with the scheme, prepare for training, apply for a license or specified the cost of licensing. However, the RLA expects this to be from £200 per managing landlord.

The Vice Chairman for the RLA in Wales, Douglas Haig, says: “Whilst we encourage all landlords to comply with the new regulations and follow the Welsh Government’s guidance, the RLA believes that this will detract local authorities’ attention away from tackling the minority of landlords who are criminals and stretch resources further.

“We believe that existing regulations in the private rented sector are sufficient to tackle the criminal landlords, however, we do not see adequate enforcement of the powers that already exist.

“A better deal for tenants would be to put the resources used to create the scheme into enforcement instead.”1

1 http://news.rla.org.uk/enforcement-key-to-protecting-tenants-say-landlords-not-more-regulation/

 

 

 

 

 

 

 

 

 

 

 

 

Tenants urged to double check inventories

Published On: July 15, 2015 at 12:20 pm

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As a number of student tenancies are coming to an end, tenants, landlords and agents alike are being warned to take notice of inventories or risk losing substantial amounts of money.

The Association of Independent Clerks (AIIC) is urging tenants to check the items listed in the inventory before moving out of a property. Typically the summer months bring a busy turn-over of tenancies, particularly in the student population.

Troubles

A recent study by removal firm Kiwi Movers found that 52% of tenants had experienced difficulty with their landlord when it came to returning deposits at the conclusion of a tenancy agreement. The survey revealed that the most common reasons for some or all of deposits not being returned were:

  • items missing from the inventory
  • minor repair work required
  • cleaning costs
  • unpaid bills
  • substantial property damage[1]
Tenants urged to double check inventories

Tenants urged to double check inventories

‘Tenants should be issued with a copy of the inventory at the beginning of the tenancy and I urge them all to double check all the items listed at that time and to ensure that all items remain in the property, in good condition, when moving out,’ said Pat Barber, chair of the AIIC. ‘If there is something missing it can often be cheaper for the tenant to replace it rather than for the landlord or agent to do so.’[1]

Barber added that, ‘if both sides of the rental transaction hold up their side of the bargain, the amount of deposit disputes can be kept to a minimum this summer.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/tenants-urged-to-double-check-inventories-at-check-out

 

 

Bank of England Governor Says Rate Rise is Drawing Closer

Published On: July 15, 2015 at 11:42 am

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The Governor of the Bank of England (BoE), Mark Carney, said yesterday that an interest rate increase is drawing closer due to the UK’s economic performance.

Bank of England Governor Says Rate Rise is Drawing Closer

Bank of England Governor Says Rate Rise is Drawing Closer

However, Carney also said that UK households are more wary of interest rate rises than in the United States, as many mortgage borrowers here are on standard variable rate (SVR) deals.

Despite inflation reported at 0% in the year to June, as claimed by the Office for National Statistics (ONS) yesterday, Carney believes that the UK is almost ready for the first rate increase since the financial crisis.

He explains: “The point at which interest rates may begin to rise is moving closer with the performance of the economy, consistent growth above trend, a firming in domestic costs, counter-balanced somewhat by disinflation imported from abroad.

“One of the reasons for that is the greater sensitivity of the average UK household to interest rates because mortgages are principally floating rate in the UK and principally fixed in the US.

“Once rates begin to adjust, we expect for those adjustments to be at a gradual pace and to a limited extent. We will learn about the sensitivity as rates begin to adjust, we will watch it very closely.”

Carney also detailed the “new normal” interest rate, which he suggests could be lower than the ordinary 5% seen in the decade before the financial crisis and definitely lower than the peak of around 15% in 1989.

He continues: “I do think there are a variety of factors that mean that the new normal, certainly over the policy horizon over the next three years, is substantially lower than it was previously.

“I see no scenario in which they would move towards historic levels.”1 

1 http://www.mortgageintroducer.com/mortgages/253103/5/Industry_in_depth/Mark_Carney:_Rate_rise_moving_closer.htm

RLA calls for enforcement, not introduction

Published On: July 15, 2015 at 11:23 am

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The Residential Landlords Association has called for increased enforcement of existing legislations in order to protect tenants, as opposed to the introduction of further rules and regulations.

Compliance

Yesterday, the Welsh Government announced its, ‘Rent Smart Wales’ scheme. Speaking at the launch, RLA vice chairman in Wales, Douglas Haig, said, ‘whilst we encourage all landlords to comply with the new regulations and follow the Welsh Government’s guidance the RLA believes that this will detract local authorities’ attention away from tackling the minority of landlords who are criminals and stretch resources further.’[1]

‘We believe that existing regulations in the private rented sector are sufficient to tackle the criminal landlords, however we do not see adequate enforcement of the powers that already exist. A better deal for tenants would be to put the resources used to create the scheme into enforcement instead,’ Haig continued.[1]

RLA calls for enforcement, not introduction

RLA calls for enforcement, not introduction

Costs

Confirmation is still be to given on when a landlord will be able to begin registering under the scheme or start preparing for training. What’s more, the cost of licensing or applying for a licence has also yet to be revealed. The RLA suggests that this may be around £200 per managing landlord.

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/rla-enforcement-not-regulation-needed-to-protect-tenants

 

 

Property equity release up by 17%

Published On: July 15, 2015 at 10:49 am

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The equity release market is continuing to expand, according to a new report.

Figures from research conducted by over 55’s finance specialist Key Retirement shows retired British homeowners decided to cash in in excess of £750m in property wealth during the opening six months of 2015.

Increases

Data from the report shows the average amount of equity released was £68,500, an increase of £3,500 on the same period last year. In total, £753m was released, which represented a rise of 17%. Key Retirement believes that this is an indication of pensioners’ confidence in utilising property wealth when planning their retirement.[1]

A further investigation in the data released shows that there is a large regional variance in equity release totals. For example, average releases in the North West were over £53,000, rising to over £142,000 in London.[1]

Eight of the twelve regions in England saw an increase in the value of property wealth released. The most considerable rise was in the North East with 50%. The South East came next with a 35% rise, followed by London with 30%.[1]

Improvements

Equity being released to retired homeowners is being used to improve standards of living during later life. 58% of customers used all or the majority of their cash to make improvements to their home or garden, with 28% using property wealth to pay for a holiday. 25% of retired homeowners’ property wealth was passed on to family and friends.[1]

Mortgage debt however is proving to be a concern, with 23% of customers paying off some or all of their home loans with their released equity, compared to 20% in the same period in 2014.29% of customers used the money to pay off credit cards.[1]

Property equity release up by 17%

Property equity release up by 17%

Older

In addition, Key Retirement’s research shows that equity release customers are getting older, with the average age rising from 69 to 71 in 2015.[1]

‘Property wealth is making a massive contribution to retirement planning and the equity release market is growing rapidly in response with double digit growth,’ commented Dean Mirfin, technical director at Key Retirement. ‘The average released at £68,5000 are more than 50% bigger than the average pension pot and are also tax-free highlighting the advantages of using property wealth in retirement.’[1]

Mirfin went on to say, ‘cuts in pension allowances and contribution levels plus the review of pension tax treatment underlines that property investments are major assets which should be considered as part of anyone’s retirement planning.’[1]

[1] http://www.propertywire.com/news/europe/uk-home-owners-equity-2015071510748.html