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Em

Em Morley

Managing Agents in Hatfield Fined £42,000

Published On: July 1, 2015 at 4:00 pm

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Two managing agents have been fined over £42,000 after Welwyn Hatfield Borough Council took them both to court in its first multiple prosecution.

Director of Odus Ltd on Bishops Square, Hatfield, Shaji Odushoti, pleaded guilty to breaking fire regulations among other failures at St Albans Magistrates’ Court.

The second company director, Shain Hutchings, of XS Property Management Maintenance Ltd of Hatfield Road, St Albans, admitted to another five offences regarding one property.

Managing Agents in Hatfield Fined £42,000

Managing Agents in Hatfield Fined £42,000

Odus Ltd was fined £17,600 and ordered to pay the Council’s costs of £17,424, relating Houses in Multiple Occupation (HMOs) in Richards Street, The Runway, Harpsfield Broadway and Fillingham Way.

XS Property Management was prosecuted over another home in The Runway, and was fined £4,300 and ordered to pay costs of £3,210 for issues such as a faulty fire door and missing smoke seal.

Odushoti claims that the Council had inspected the properties just two weeks after they took them over, issuing a summons while the firm was awaiting landlords’ approval for the necessary work.

Hutchings also says: “I feel aggrieved at the fine. These were very minor faults and we were not given time to correct them. If I could have afforded to, I would have fought it.”1

The two managing agents own and manage properties in Hatfield and were charged a total of £42,534 after pleading guilty to a total of 46 offences on Wednesday 17th June.

Odushoti admitted to 41 offences on four properties managed for private landlords and Hutchings pleaded guilty to five offences on one property.

Odus Ltd’s failures include: locked and faulty doors, missing smoke seals, an empty fire extinguisher, a missing fire blanket, and a broken alarm.

This is the first time Welwyn Hatfield Borough Council has prosecuted multiple managing agents, in a bid to crack down on poor management practise.

Councillor Mandy Perkins, Cabinet Member for Planning, Housing and Community, says: “We are very pleased with this outcome. It is proof that we will not tolerate managing agents in our borough who compromise the safety of their tenants, particularly relating to fire safety issues.

“We hugely value the contribution that good quality rented accommodation makes to the local housing market, but we hope this sends a clear signal to managing agents that they must comply with the law.”

She continues: “I would urge residents to protect themselves by checking their managing agent or landlord is Partnership Accreditation for Landlords-accredited (PAL).

“This is a council-run scheme, which strives to ensure that accredited managing agents meet their legal obligations.”1

1 http://www.landlordzone.co.uk/news/hatfield-managing-agents-fined-42000

 

Nationwide Reduces Rates for Existing Customers

Published On: July 1, 2015 at 3:00 pm

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Nationwide Reduces Rates for Existing Customers

Nationwide Reduces Rates for Existing Customers

From today, Nationwide is cutting rates on selected five-year fixed rate mortgages by up to 0.15% for existing mortgage customers who are looking for a new deal.

The reductions form part of the Nationwide Loyalty Rate Mortgages scheme, which compares the building society’s rates for existing customers with those of its top six high street competitors.

Its 85% loan-to-value (LTV) five-year fixed rate fee-free deal has been cut by 0.15% to 3.24%. The 90% LTV five-year fee-free fix has been reduced by 0.1% to 3.84%.

Existing mortgage customers are already entitled to a 0.1% discount on new customer rates.

Furthermore, the 85% five-year fixed rate deal with a £999 fee at 3.24% will be removed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inside the House Bought for a Pound

Published On: July 1, 2015 at 1:55 pm

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It now looks like a sophisticated, modern home that would appeal to many buyers. However, the property below was bought just a few months ago for £1.

The terrace house in Anfield, Liverpool was part of a major regeneration project. Call centre worker Liz Vaughan, 38, bought the property and has now cleared, renovated and painted the previously run-down home.

This house is one of 23 that were available to local residents to purchase for £1 in a scheme aimed at transforming a deprived part of the city.

Introduced two years ago, the project has also demolished 163 sub-standard properties and improved 197 others. A further 11 terrace homes have been converted into larger family homes.

As well as housing initiatives, efforts have been made to create more jobs, develop the local high street and expand Anfield stadium, which hosts Liverpool Football Club.

Liz, who grew up around the corner from her now house, says that the £1 scheme has given her the chance to buy her own property.

She explains what the scheme has done: “Giving people the opportunity to get on the property ladder who would not have been able to, because you need such a large deposit… and it’s keeping local people in the community and people will take care of their houses. I can’t wait to move in – I’m planning where to put the couch.”1 

Ann O-Byrne, Deputy Mayor of Liverpool, observes: “For the first time ever”, people are hoping to move back to Anfield.

She continues: “I’ve met some of the residents who have moved into the properties and they’re absolutely overjoyed at what they consider to be their first family home.

“We’re creating homes and they’re really good quality, so families are going to thrive. We have really good schools in the area and Stanley Park is just on the doorstep. These houses are on the edge of the city but far enough away.”1

The City Council, Your Housing Group and Liverpool Football Club ran the project. Alongside, a citywide scheme, Homes for a Pound, has recently entered its second phase.

The pilot scheme gave 20 run-down terrace houses to local residents for £1, giving them the opportunity to get onto the property ladder.

Now, 150 properties are being offered for sale for £1 by the Council in other areas of Liverpool to help rejuvenate neglected neighbourhoods.

Joe Anderson, Mayor of Liverpool, comments: “Our pilot Homes for a Pound scheme has been hugely popular and is transforming run-down properties into beautiful family homes.

“We are now in a position where we are expanding the scheme, and are inviting applications from people who meet the criteria and interested in talking part.

“People moving into the area will be an integral part of it becoming a thriving community again.”1

1 http://www.dailymail.co.uk/news/article-3144199/Not-bad-quid-Inside-house-bought-call-centre-worker-just-one-pound-just-work-sofa.html

 

 

Renting in UK is More Expensive than Anywhere Else in Europe

Published On: July 1, 2015 at 12:51 pm

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Renting in UK is More Expensive than Anywhere Else in Europe

Renting in UK is More Expensive than Anywhere Else in Europe

Private tenants in the UK are paying higher rents than anywhere else in Europe, spending a larger proportion of the average wage on accommodation, revealed research by the National Housing Federation (NHF).

The average UK rent is £750 (€902) per month. The European average is just £400 (€481) a month, found the NHF, which represents housing associations.

Renting privately in the UK costs around 40% of a tenant’s income, comparing to the average of 28% in Europe.

Renters in Spain are the only ones that are close to the UK average, with their typical rent of €622 a month accounting for 39% of their income. In Germany, the average monthly rent of €600 is just 25% of the average wage.

Chief Executive of the NHF, David Orr, comments: “Not only do British renters face crippling rents, but they have almost no certainty about whether they will be able to stay in their home from one year to the next.”1

The average UK rent vs. European averages

Country

 % of income spent on rent

Average monthly rent
UK 39.1 €902
Switzerland 31.9 €922
Spain 39 €622
The Netherlands 28.5 €625
Germany 24.8 €600
France 29.5 €598
Sweden 34.8 €500
Malta 29 €461
Romania 34.7 €333
Slovakia 13.2 €239

Chief Executive of the NHF, David Orr, comments: “Not only do British renters face crippling rents, but they have almost no certainty about whether they will be able to stay in their home from one year to the next.”1

Short-term tenancies in the UK mean that 77% of renters in Great Britain and Northern Ireland moved house in the last five years, compared to 43% across Europe.

This data arrives after the Halifax revealed growing numbers of aspiring first time buyers are moving back in with their parents, despite record low mortgage rates and a rising availability of mortgages for those with low deposits.

The Halifax, who surveyed 1,000 parents of 20-45-year olds, found that 28% have taken their children back into the family home, compared with 24% in 2012.

However, super low mortgage rates are enabling thousands of buyers to purchase a home, if they can save a large deposit. Research released from the British Bankers’ Association (BBA) revealed that the amount of people who were granted a new mortgage in May increased to the highest level since March 2014.

On the BBA figures, Richard Sexton, Director of chartered surveyors e.surv, says: “Borrowers finally have more money in their pockets as inflation remains limited and wages are experiencing a tangible rise. Meanwhile, lenders continue to offer an increasing number of products to borrowers with smaller deposits, at record low rates.”1

However, the NHF also found that increasing property prices mean that two thirds of first time buyers are dependent on financial help from their parents for buying their first home.

1 http://www.theguardian.com/money/2015/jun/24/uk-tenants-pay-more-rent-than-europe

Rents Over £100 a Day in Prime Central London

Published On: July 1, 2015 at 12:00 pm

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Tenants in London’s prime central rental market are paying over £100 a day to rent a two-bedroom flat, revealed research from property investment firm London Central Portfolio (LCP).

Figures from LCP show that the average rent on a two-bedroom flat in upmarket neighbourhoods has reached £707 a week, with one-bedroom flats averaging £452 per week.

Rents Over £100 a Day in Prime Central London

Rents Over £100 a Day in Prime Central London

In Knightsbridge, a typical two-bedroom flat costs £848 a week, and in Kensington and Notting Hill, the average rent on a similar property is £768 per week.

LCP found that one and two-bedroom flats in central London are popular with corporate tenants and international students, and this demand is fuelling rental growth. One-bedroom flats are the quickest to be let, with only 16 days between tenancies and two-bedroom apartments are empty for just 24 days.

Across both property sizes, LCP found that Mayfair is no longer the most expensive place to live, with the average rent cost falling by 14.85% annually to £678 per week.

Knightsbridge has recorded the greatest increase, with rents up 19.4% in the same period to £732 a week. Across prime central London, LCP revealed that rents have risen by 4.2% in the last year to £602 per week.

CEO of LCP, Naomi Heaton, explains: “The key dynamic in this marketplace remains location over size. The squeeze on rents during the credit crunch, as corporates underwent stringent belt tightening, has not relaxed, meaning smaller properties remain the most popular among corporate tenants. The huge influx of international students, often living on their own, adds to this demand.”

LCP also discovered that older properties experienced a 1.3% increase in rents, while newly refurbished homes saw prices rise more quickly.

Heaton continues: “There has been a paradigm shift among tenants who increasingly demand immaculately presented flats and service on tap.

“Landlords need to realise that tenants are looking for a complete lifestyle experience if they are to maximise yields and minimise voids.”1

1 http://www.theguardian.com/money/2015/jun/29/prime-london-rents-100-pounds-a-day

How Lenders Value HMOs

Published On: July 1, 2015 at 11:00 am

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The buy-to-let sector has defied the uncertainty that surrounded the general election and has remained positive since the results were announced.

Connell’s Survey and Valuation team reported a 3% increase in valuations from April to May this year and a 33% annual rise.

Landlords are hoping to capitalise on the growing demand for rental property and Houses in Multiple Occupation (HMOs) are becoming even more popular due to the attractive yields they can produce.

How Lenders Value HMOs

How Lenders Value HMOs

However, HMOs are a specialist investment and they can be difficult to value for brokers, who must then advise investors correctly.

Valuing HMOs is significantly different to regular buy-to-lets and their value can be affected by a number of factors.

The four key factors that brokers and clients must remember are as follows:

Required work 

The value of a property can be greatly affected by the amount of work required to convert it into an HMO. If little work is needed, the property should be lent against its value as a private dwelling. This is due to the fact that the home is not particularly specialised compared to other asset classes; an investor could buy a cheaper property and convert this to an HMO for a lower cost.

Location 

It is vital that investors buy in an area with high HMO demand. However, this will give the property a greater value than a private dwelling. Landlords should expect this if they are searching in a popular area. With any property investment, landlords should research the local market to determine demand.

Article 4 Directions 

Article 4 Directions are used to limit the amount of HMOs in certain areas by requiring investors to obtain planning permission before converting a building. However, if an area does have an Article 4 Direction in place, the property will be a viable investment option. Landlords should expect to pay a premium price though, due to limited supply.

Planning permission

Whether an HMO has planning permission or not can greatly affect its value. Sui generis planning relates to buildings that do not fall into any particular use class and this includes HMOs. If this type of planning is in place, valuers often lend against the property’s market value. Usually, these houses require significant structural changes for conversion to an HMO, but provide good yields.

It is likely that demand for HMOs will continue to grow, as private tenants look to a variety of rental options. Lenders and brokers must act responsibly and ensure investors’ ambitions are realistic.