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Buy to Let in Oxford for Strong Demand

Published On: June 20, 2015 at 10:11 am

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Demand for rental property in Oxford is extremely strong, especially from young professionals. The area is a great place for buying to let.

As well as the universities, Oxford homes many medical institutions, where high numbers of academics and medics are on placements or temporary contracts.

Buy to Let in Oxford for Strong Demand

Buy to Let in Oxford for Strong Demand

Letting agents claim that demand is so strong that prospective tenants sometimes queue outside on the street so that they get the first pick of new properties.

Licenses

Private rental sector housing that is occupied by three or more people (including children) and forms two or more households requires a license. Houses with two occupants do not need a license.

Where to invest

East Oxford, also called Cowley, is becoming more popular. The area is walking distance from the city centre and has smaller but affordable Victorian terraces. These charming homes provide better investments than properties in areas such as Jericho and North Oxford, where prices near seven figures.

Cowley is a cosmopolitan place with an eclectic mix of people and amenities, including nice pubs and restaurants. Traditionally, it was full of students, but now, professionals are moving into the area.

Cheaper properties can be found just outside Cowley in Littlemore.

Property prices

A one-bedroom apartment in Cowley costs around £250,000 with three-bedroom houses priced at over £450,000.

In Littlemore, one-bedroom flats go for about £200,000 and command a monthly rent of £850. A three-bedroom house costs around £280,000, for rent of £1,100 per month.

Smoke alarms to be fitted in private rentals

Published On: June 20, 2015 at 10:08 am

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Proposals to make it mandatory for smoke alarms to be fitted in private rental accommodation are moving closer to becoming law.

Heading the proposal is former local and Government fire service minister Nick Raynsford. On May 7th this year, Mr Raynsford brought the issue to the House of Commons.

Speaking directly after Prime Ministers Questions, Raynsford’s proposal gained the backing of 245 MPs, with only 8 in opposition to the bill. This overwhelming result means that the bill will be read in the Commons again in June.

Law?

There is a chance that the proposal may become part of the law, on the provision that a Statutory Instrument is introduced. However, recent governments papers have suggested that a new law including the bill is not a priority, branding it instead a regulatory burden

Commenting before his appearance in the Commons, Raynsford suggested that it was, ‘absurd’ to call issues regarding fire safety a regulatory burden. He went on to say that, ‘it is a matter of life and death. Without a smoke alarm, you are four times more likely to die in a fire.’[1]

Smoke alarms to be fitted in private rentals

Smoke alarms to be fitted in private rentals

Private tenants should already know that it is their landlord’s obligation to provide them with a gas safety certificate. Raynsford calls for smoke alarms to become another compulsory feature when moving into a property.

Figures obtained by Mr Raynsford suggest that 82% of privately rented accommodation does have a functioning smoke alarm. This figure was raised by 89% of council houses and further by 93% of housing association property having working alarms.[1]

Support

A number of MPs have pledged their support to the bill by speaking to newspapers. One of these MPs was Don Valley’s Caroline Flint, who spoke to the Doncaster Free Press to outline her belief that the bill would save lives.

Ms Flint brought the case of two-year-old-Libby Jayne Hornsby to the public’s attention. The little girl died in a fire in a rented property that did not have a functioning smoke alarm.

Ms Flint said, ‘the tragic accident that took away Libby-Jayne Hornsby is not an isolated incident. Years after smoke alarms have become commonplace, one in five privately rented homes still does not have a smoke alarm.’[1] She went on to say that the evidence was, ‘clear’ that smoke alarms saved lives and that as a result of alarms, fires can be discovered in, ‘less than five minutes.’[1]

Another MP that spoke out to newspapers was Wentworth and Dearne’s former housing minister, John Healey. Speaking to The Star, he strongly disagreed that the bill would be a regulatory burden and was hugely supportive of the proposed changes.

Disagreement

Conservative MP Philip Davies however, opposes the idea. Davies believes that it is difficult for landlords to gain guaranteed access to homes. He went on to ask what would happen in terms of accountability if tampering tenants caused problems with originally working devices.

Non-domestic, commercial buildings and multi-occupancy premises are already required to have, ‘suitable and sufficient’ fire risk assessments under the Regulatory Reform (Fire Safety) Order 2005.

[1] http://www.landlordexpert.co.uk/2014/06/04/smoke-alarms-in-private-rental-market-gains-momentum/

Newcastle Building Society launch new mortgage products

Published On: June 19, 2015 at 4:22 pm

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Newcastle Building Society has become the latest group to announce new mortgage products for its customers.

Four mortgage products have been revealed, specifically for the New Build marketplace. The lender has confirmed that these will be up to 90% LTV and are catered towards first-time buyers looking to buy a new property.

Low

Additionally, all four products come without fees, keeping upfront payments low. What’s more, builder and developer incentives can be included with a deposit for 85% range products.

All 90% LTV products are equipped with two and five year fixed rate options. For two-year products, the cost is fixed at 3.89% and for five years, rates are fixed at 4.10%.[1]

85% products LTV are available at 3.04% fixed-rates over two years, whereas five-year products will be fixed at 3.55%.[2]

Furthermore, changes to the Newcastle Building Society’s lending policy will now see the maximum LTV dependent on the presence of builders incentives or whether the property is a new build house or flat.

Newcastle Building Society launch new mortgage products

Newcastle Building Society launch new mortgage products

Support

‘The Society has supported first-time buyers for a number of years through our mortgage products with LTVs up to 95%,’ said Steve Urwin, Newcastle Building Scoeity’s Director of Sales and Marketing. ‘The launch of specific products for the new build market will continue to support first time buyers and next time buyers in a market that has and is expected to expand in the next couple of years,’ he continued.[3]

‘The products have been designed with a range of fixed rate terms to offer flexibility, as well as fees free and cash-back options to help keep upfront cost low for first time buyers,’ Urwin added.[4]

[1] http://www.propertyreporter.co.uk/finance/new-build-products-launched-at-newc4stle-bs.html

 

 

NAEA warns agents on money laundering

Published On: June 19, 2015 at 2:47 pm

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Estate agents are being warned to make sure they are compliant with all money laundering regulations, following a warning that unscheduled checks are being carried out across the country.

The National Association of Estate Agents warn that HMRC have been making unannounced visits to agency offices to check that the organisations are adhering to anti-money laundering procedures.

Battling crime

In a statement, the association said:

‘We wholeheartedly support HMRC in conducting these checks and in the wider battle to fight the criminals. We also want to ensure that NAEA agents are the best in the business, but understand that with so many other priorities it’s easy to let your knowledge slip, and even the most diligent of agents need refreshers now and again.’[1]

While the number of visits made by HMRC is unknown, it is not thought that the agencies visited had raised suspicion of illegal activity.

NAEA warns agents on money laundering

NAEA warns agents on money laundering

Duties

In response to the activity from HMRC, the National Association of Estate Agents has issued a number of duties expected of agents to make sure they comply with money laundering rules.

With regards to suspicious activity, the NAEA say that agents should be vigilant of:

  • activity that does not make commercial sense
  • clients seeming uninterested in the transaction
  • prices that do not match up with market value
  • any purchases made where the property has not been viewed or just seen on the internet
  • weak reasons for paying cash, ie offering large cash sums for payment of property purchases, interest, rent or fees
  • cash exchanges between seller and buyer, including a cash deposit
  • unusual sourcing of funds. This could involve third parties, large payments for private funds and cash gifts
  • unsatisfactory explanations of early redemption of mortgages, notably where there has been penalties involved

Where an agent believes illegal activity has occurred, they should complete a National Crime Agency Suspicious Activity Report (SAR) to comply with the Proceed of Crime Act 2002. SAR’s should include all available Customer Due Diligence information.

Additional information on money laundering and how to properly complete a SAR can be found at www.nationalcrimeagency.gov.uk

[1] http://www.estateagenttoday.co.uk/breaking-news/2015/6/hmrc-making-anti-money-laundering-spot-checks-on-agents

 

 

Stamp duty revenues soar

Published On: June 19, 2015 at 12:45 pm

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The average homeowner pays £9,600 as they progress up the housing ladder, according to new data from Lloyds Bank. This is based on people who bought their first home in 1999, their second in 2007 and another this year.

Increases

Research from the firms report reveals that stamp duty revenues have increased significantly during the last 12 months, with homebuyers paying £7.7bn in this tax. A rise of £1.5bn in stamp duty revenues was down to a mix of higher house prices and a rise in the level of property transactions, according to the Bank.

This figure easily beats the £6.2bn recorded during the year to March 2008, at the peak of the housing boom before the recession. In addition, the number of first-time buyers paying stamp duty has more than doubled in the last 16 years, from 32% in 1999 to 66% in 2015.[1]

Regional duties

In the capital, 90% of first-time buyers are liable for the tax when they get onto the first rung of the property ladder. It comes as no surprise then that buyers in London have the highest lifetime stamp duty bills, which average out at £38,600. This is followed by the South East, where buyers pay an average of £22,800.[2]

Stamp duty revenues soar

Stamp duty revenues soar

At the lower end of the scale, people in Wales pay an average stamp duty tax total of just £3,800, with those in the North and East Midlands paying £4,000.[3]

Nitesh Patel, housing economist at Lloyds Bank, suggests that, ‘the average homebuyer now pays almost £10,000 during their life as they make their way up the housing ladder.’ She feels that, ‘the welcome reforms to stamp duty announced by the Chancellor last December have helped to reduce stamp duty bills for the overwhelming majority of homebuyers and movers.’[4]

‘However, as these figures show, the overall revenue raised with stamp duty actually increased by £1.5bn in the year to March 2015,’ she added.[5]

[1] http://www.zoopla.co.uk/discover/property-news/buyers-pay-7-7bn-in-stamp-duty/#r4q05lkXHTsDHxvo.97

 

Landlords and tenants clash over maintenance

Published On: June 19, 2015 at 11:43 am

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Concerning research has found that there is substantial confusion to whom responsibilities such as maintenance and upkeep fall in rental properties.

Discrepancies

A survey from landlord and tenant insurance provider Endsleigh reveals that the largest discrepancy between tenants and landlords relates to meter readings both at the beginning and end of their agreements. 73% of landlords rightly believe that it’s the responsibility of their tenants to carry out this task, with only 35% of tenants feeling that it is their duty.[1]

Additionally, 60% of tenants were said to believe that it is the landlord’s duty to sort out paintwork, with 45% of landlords saying that this role falls to the tenant.[2]

Pest control is another common reason for dispute. 32% of landlords questioned in the survey said that they feel this issue is down to the tenant to manage. However, a significant majority of 84% of tenants believe that pest control is the responsibility of their landlord.[3]

Landlords and tenants clash over maintenance

Landlords and tenants clash over maintenance

Strained

‘Relationships between landlords and tenants can become strained when rental responsibilities aren’t fulfilled,’ said Marcus Latchford, who is Endsleigh’s lettings and landlords manager. ‘However, sometimes it’s just a case of one side being unaware of their responsibilities,’ he continued. Individual contracts will often spell out who should be taking care of what, but the small print is often the last place people look.’[4]

Jessica Alomankeh, projects coordinator at the London Landlord Accreditation Scheme said that some aspects of the tenant/landlord relationship were confusing. She noted that, ‘landlords deal with repairs to fixtures and fittings, boiler servicing, as well as arrange buildings insurance if the property is furnished. Tenants look after tasks such as keeping the garden in check and the internet installation. For tasks such as pest control and touching up paintwork, the landlord is responsible.’[5]

‘What’s more, at the beginning of a tenancy, landlords should provide tenants with an inventory pack, containing contact details of the current service providers. It’s then up to the tenant to check metre readings and set up new payments with the suppliers,’ she added.[6]

[1] http://www.propertywire.com/news/europe/uk-landlords-tenants-maintenance-2015061810648.html