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Em Morley

Unsafe HMO Results in £16,000 Fine for Landlord

Published On: June 30, 2015 at 2:33 pm

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A landlord in Blackbird Leys, Oxford has been ordered to pay over £18,000 after pleading guilty to 12 charges regarding an unsafe House in Multiple Occupation (HMO).

Ashraf Suleiman Salim El-Hosny, 31, admitted the charges at Oxford Magistrates’ Court on Monday 22nd June 2015.

Oxford City Council brought the prosecution after environmental health officers discovered El-Hosny was renting out an unlicensed HMO on Peregrine Road, which was in a state of disrepair, and did not comply with legal requirements.

An HMO is a property rented by at least three people who do not form one household but share facilities, such as the bathroom or kitchen.

Environmental health officers from Oxford Council’s HMO Enforcement Team inspected the home in November after receiving complaints that it was unlicensed.

Officers learnt that tenants were living in overcrowded conditions, there was no working fire alarm, fire escapes were obstructed, waste was amassing and some electrics were unsafe, such as a broken plug socket.

El-Hosny pleaded guilty to managing an unlicensed HMO and received a £5,000 fine for failing to obtain a license.

He also pleaded guilty to ten breaches of the Management of Houses in Multiple Occupation (England) Regulations 2006 and was given a £1,000 fine for each breach.

El-Hosny was also fined £1,000 after admitting failure to comply with a notice served under the Housing Act 2004.

Magistrates then ordered El-Hosny to pay the Council’s full costs of £1,940 for bringing the case to court and a £120 victim surcharge. The total reached £18,160.

Ed Turner, Deputy Council Leader, was pleased that El-Hosny has been brought to justice, saying the case could have ended in “tragedy.”

He continues: “Offences like this committed by landlords are extremely serious.”1 

1 http://m.oxfordmail.co.uk/news/13356708.Unsafe_cramped_house_costs_the_landlord___16_000_in_fines/

 

Letting Agent Gets 10 Year Ban for Missing £578,000

Published On: June 30, 2015 at 1:29 pm

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A letting agent has been disqualified from acting as a company director for ten years after his agency in Hove collapsed.

Letting Agent Gets 10 Year Ban for Missing £578,000

Letting Agent Gets 10 Year Ban for Missing £578,000

There is a known sum of £577,865 missing in tenancy deposits and rent payments.

Peter Leonard, 58, has been banned for “failing to make sure that tenant deposits and rent payments collected in by the company were properly protected.”1

The firm, Direct Residential Lettings, owes the sum, calculated by The Insolvency Service.

A spokesperson for The Insolvency Service says: “The public should be assured that The Insolvency Service will seek to disqualify the directors of companies that do not obey the law and use other people’s money for the benefit of the company.”1

Leonard was the director of the agency until its sudden closure in May 2013. He will be prohibited from becoming involved in the promotion, formation or management of a company until 2025.

The Insolvency Service cannot account for transactions paid out of Direct Residential Lettings’ bank account totalling £501,393 between October 2012 and May 2013.

The Service says that Leonard did not safeguard tenant deposits and rent payments from as far back as April 2007. He is also guilty of misleading the National Approved Letting Scheme (NALS) by submitting false accounts from 2010 onwards.

Leonard was put under police bail on suspicion of fraud in June 2013 following the firm’s collapse. He was released from bail in March 2014 and Sussex Police confirmed that there would be no further action taken against him at that time.

A winding-up order was made against the company in September 2013.

1 https://www.lettingagenttoday.co.uk/breaking-news/2015/6/letting-agent-gets-10-year-ban-as-577-000-goes-missing

 

 

 

 

Home Deposits at a Record High of £72,000

Published On: June 30, 2015 at 11:24 am

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The average residential property purchase deposit is now £72,302, suspected to be a record high.

The latest data from the Mortgage Advice Bureau (MAB) reveals that buyers were paying substantial sums in May; the highest figure since the MAB began recording the data in March 2009. The previous peak of £71,474 was recorded in June 2014.

Home Deposits at a Record High of £72,000

Home Deposits at a Record High of £72,000

In May 2014, borrowers took out an average loan of £161,887 and put down an average deposit of £69,238. Deposits are now £3,064 higher than a year ago.

According to the research – surveying over 600 brokers and 900 estate agents – average loans also reached record heights in May. The average loan size has now risen for four consecutive months.

Generally, homebuyers in May applied for loans of £167,842, up from the previous high of £166,141 in April 2015.

The new data, which includes buy-to-let mortgages, will come as bad news to first time buyers, who are paying record high rents and having to save more for a deposit.

The MAB says that the issue is “concerning” and the impending Help to Buy ISA will not help much on its own. The ISA will give individual first time buyers a tax break of up to £3,000 on £12,000 of savings for a deposit.

The MAB’s Head of Lending, Brian Murphy, comments: “Measures introduced to the mortgage market since the recession mean there are multiple checks and balances to ensure that people do not borrow beyond their means.

“Thanks to recovering house prices, many existing homeowners have extra equity in their properties and can balance their borrowing commitments with a significant stake of their own.

“Putting up a 30% deposit helps to unlock some of the best rates on the market and helps keep mortgage payments even more affordable. The rise of deposits is less encouraging for first time buyers, but there is at least some hope that more low cost properties will become available as second and third-steppers make their move up the ladder.”

Murphy continues: “The range of affordable schemes to support first time buyers will soon be boosted by the arrival of the Help to Buy ISA. All the same, the savings scheme will not be enough on its own to solve the long-term issues that are driving up prices and deposits across the market.”1 

1 http://www.propertyindustryeye.com/deposits-higher-than-ever-as-borrowers-fork-out-over-72000/

Three Landlords Facing Ruin on Channel 5 Show

Published On: June 30, 2015 at 10:32 am

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Three landlords are under significant financial pressure on the next episode of Nightmare Tenants, Slum Landlords.

The second episode of the Channel 5 show will feature three separate landlords all facing ruin due to difficult tenants.

Three Landlords Facing Ruin on Channel 5 Show

Three Landlords Facing Ruin on Channel 5 Show

Going to industry expert Landlord Action for help, the landlords seek possession of their property and chase outstanding rent arrears. Landlord Action’s founder, Paul Shamplina, reveals the unfortunate reality of tenancies gone wrong.

The main story on the programme follows builder Franc Coutinho, who has rented his property out in North London for six years. The landlord did not face any difficulty until his latest tenant, Shuaghxi Fu, moved in.

Within six weeks of the tenancy commencing, the tenant was not paying rent, stating that the boiler was not working. Plumbers visited the property on numerous occasions, but when the rent was due, the boiler would allegedly stop working again.

Franc begins the eviction process in the show. When the court date arrives, Shuaghxi Fu makes an appearance and files a last minute defence, delaying the eviction by months.

On the case, Shamplina says: “Sadly, we see far too many cases like this. It is one of the many reasons we have fought so hard to prevent law changes in relation to retaliation eviction because we fear we will see more and more cases like this if tenants are able to use delay tactics by reporting bogus issues of disrepair.

“Upon checking out the property, it was clear there was nothing wrong with the boiler, but the delay at court meant poor Franc was left with months of unpaid rent and legal fees. Having to pay two mortgages, he was on the brink of bankruptcy.”1

The second case in the episode focuses on landlord Dipan Doshi, who has rented out his flat to a family of four for 18 months. However, in the past year, he has received barely any rent and is now owed £12,000. His wife is on maternity leave, and Dipan must therefore chase the arrears.

The third landlord, Louise McKinlay, has finally evicted her tenant after being owed £7,000 in unpaid rent. Although this is not the end for her, as she uncovers more issues once she visits the property.

The programme is due to air tomorrow, Wednesday 1st July, at 9pm on Channel 5.

1 http://www.propertyreporter.co.uk/landlords/financial-ruin-for-three-landlords.html

 

Average House Price Rose 1.4% in May

Published On: June 30, 2015 at 9:34 am

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The average property price in the UK rose 5.6% annually and 1.4% monthly in May, making the average house price £212,495, revealed the latest data from haart estate agents.

In London, the market is gaining momentum again after uncertainty surrounding the general election. Prices are up 16.7% year-on-year and 3.4% on a monthly basis, to an average of £536,286.

Average House Price Rose 1.4% in May

Average House Price Rose 1.4% in May

The capital has also experienced an upsurge in sales, recording the highest monthly rise since August 2014. The monthly data report from haart also found that in May, there were 11 potential buyers for every available property around the country. In London, this is 20 per home.

These figures indicate a slight fall in activity both annually and monthly. However, it is clear that the market is still busy and consumer confidence is high.

Overall research from haart reveals a steady increase in house prices since November 2014, which has been fuelled by high levels of demand and low supply.

The average first time buyer property price is also on the up, rising 4.3% annually and 1.7% month-on-month. The amount of new buyers registering has risen slightly, up by 0.3% since April.

However, on an annual basis, the number of new buyer registrations is down 12.7%. The estate agent says that this was expected after particularly high levels of buyer activity in 2014. First time buyer registrations also dropped during the same period.

The amount of new properties coming onto the market has grown by 2.6% monthly and haart says that this indicates that vendors are confident in putting their house up for sale.

The average loan granted to a first time buyer has risen 4.2% yearly to just under £130,000. This reflects high institutional confidence in lending.

haart’s data also revealed that North London is the most expensive postcode area, with prices up 36% annually to an average of £667,944. The North West is the only area of the capital where the average home is still under £400,000.

CEO of haart, Paul Smith, says that will all the current market optimism and low mortgage rates, more people will aspire to buying. However, due to the lack of supply, property will become more unaffordable for many.

He continues: “First time buyer activity in London is down significantly, with 30% fewer first time buyer registrations in May 2015 compared to May 2014. The result will be that young professionals are driven from key areas, as they can’t afford to live there.

“This is bad news for local economies and the UK as a whole, and we need at least 200,000 homes built every year across the next Parliament to keep the housing supply crisis under control.”1 

1 http://www.propertywire.com/news/europe/uk-national-house-prices-2015062910682.html

Mortgage Figures Confirm Pre-Election Slowdown in Market

Published On: June 30, 2015 at 8:58 am

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Mortgage approvals in the UK dropped significantly in May, confirming observations by estate agents of a pre-election slowdown in the market.

Mortgage Figures Confirm Pre-Election Slowdown in Market

Mortgage Figures Confirm Pre-Election Slowdown in Market

In May, 64,434 mortgages were granted by Britain’s major lenders, down from 67,580 in April, revealed data from the Bank of England (BoE).

Most analysts were expecting a small increase, however, the figures reflect evidence from within the industry of less activity and price rises in the pre-election period.

As inflation is low, mortgage rates are close to record lows, wages are beginning to grow and consumer confidence is high, economists are forecasting a stronger housing market over the summer.

Chief UK Economist at Deutsche Bank, George Buckley, says he expects “approvals to continue on an upwards trajectory.”1 

Consumer credit was also slightly weaker than expected, up by £1 billion in May, down from £1.1 billion in April.

Senior UK Economist at Capital Economics, Samuel Tombs, believes the May figures are a “lull” with demand picking up.

He adds that although the Mortgage Market Review (MMR) and the Financial Policy Committee’s restrictions on high loan-to-income lending will “prevent a major increase in supply of secured credit, we still think that credit flows will continue to recover in the second half of this year.”1

In the latest survey by the Royal Institution of Chartered Surveyors (RICS), members revealed that although buyer interest is stronger, there is a huge undersupply of homes, with the stock of properties per surveyor at a record low since records began in 1978.

Chief Economist at RICS, Simon Rubinsohn, says that due to the shortage, “it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable.”1

1 http://www.ft.com/cms/s/0/0db0b4b6-1e3b-11e5-aa5a-398b2169cf79.html?ftcamp=published_links%2Frss%2Fcompanies_property%2Ffeed%2F%2Fproduct#axzz3eRz5F7jD