Posts with tag: London

Lewisham Landlords to Face Higher Licensing Fees

Published On: March 24, 2016 at 11:06 am

Author:

Categories: Landlord News

Tags: ,,,,

Lewisham landlords of bedsits above shops could soon be hit with a licensing fee that is set to increase by 278%.

Each bedroom license would cost £500, with some landlords facing the maximum charge – a cap of £5,000 per building.

The claim comes from Richard Tacagni, the Managing Director of an independent consultancy, London Property Licensing.

He states that the new House in Multiple Occupation (HMO) license fee being brought in by Lewisham Council will be by far the highest in London, and probably in England.

Lewisham Landlords to Face Higher Licensing Fees

Lewisham Landlords to Face Higher Licensing Fees

Yesterday, we revealed that the letting agent fee structure for the Rent Smart Wales scheme is being changed to make it fairer to small firms.

The new fee in Lewisham was agreed last week as part of the additional licensing scheme expected to be enforced by this autumn, and covering all HMOs above commercial premises.

The new scheme will require around 1,800 properties to be licensed, containing almost 4,200 separate lettings.

According to Tacagni, Lewisham Council has confirmed that any flat shared by three or more unrelated individuals will need a license if there are commercial premises on a lower floor in the building.

The fee will be £500 per unit.

Tacagni comments: “Whilst a £500 license fee may at first appear reasonable, we understand that this is actually the fee per letting within a property, i.e. a single person occupying one room on a separate tenancy.

“The council has said that the fee would be capped at £5,000 per property for ten or more lettings.

“This dramatic increase in fees will see the existing mandatory HMO licensing fee rise from £180 (frozen since 2012) to £500 per letting, an increase of 278%.

“The fee to license an HMO with five individual room lets would rise from £900 to £2,500.”1

A spokesperson for Lewisham Council says: “We are committed to ensure that Lewisham has a thriving private rented market that provides good quality housing for tenants and that landlords are fully supported to maintain good standards in their properties.

“This licensing scheme is a key tool in achieving this. We have set the fee to ensure that we fully meet the costs of running an effective licensing scheme that is good for tenants and good for responsible landlords.”

They add: “We have a range of qualifying discounts and reductions that will continue. All the income raised will be reinvested in this scheme to improve the private rented sector in Lewisham, which is huge and growing every day.”1 

We will continue to provide all landlords with updates and information regarding the buy-to-let market and private rental sector.

1 http://www.propertyindustryeye.com/landlords-to-be-hit-with-licensing-fee-set-to-rise-by-nearly-300/

 

Go on a London Property Easter Hunt this Weekend

Published On: March 24, 2016 at 9:50 am

Author:

Categories: Property News

Tags: ,,,

Breathe new life into your buy-to-let portfolio this weekend with a London property Easter hunt through the capital’s latest new developments.

Spring is an ideal time to make new investments and hop straight into the property market. And with London no longer driving house price growth throughout the UK, it really will be a buyers’ market this Easter.

There are many new build developments popping up across the capital, so we’ve picked out the best for you to view, alongside enjoying some family time at London’s best attractions.

So where should you look?

Southwark

Go on a London Property Easter Hunt this Weekend

Go on a London Property Easter Hunt this Weekend

Southwark is a great place to start, thanks to its string of riverside attractions. Head over to County Hall, where the office of former Mayor of London Ken Livingstone is part of a marketing suite for Thirty Casson Square at the Southbank Place development.

The range of studios, one, two and three-bedroom apartments is named after Sir Hugh Casson, the late director of architecture for the 1951 Festival of Britain. Prices start at £750,000, while you can enjoy family fun at Shrek’s Adventure and the London Eye nearby.

Borough Market

After a day of strolling around the Tate Modern or Borough Market, take a look at the show home centre for three SE1 schemes by developer Crest.

These include Valentine Place, 42 flats and mews houses near the Old Vic theatre, with prices starting at £735,000, and Snowsfields Yard, 28 flats sitting in the shadow of The Shard, costing from £765,000.

City of London 

Cross the iconic London Bridge into the City of London to visit The Stage, a 412-home development situated on the spot where Shakespeare’s Romeo and Juliet and Henry V were first performed.

Archaeological remains of the original stage will be encased in glass as part of a new heritage centre, which will include a 200-seat sunken amphitheatre. Show flats were designed by award-winning Nicola Fontanella and created in refurbished railway arches on the 1.2-acre site. Homes cost from £695,000.

Finsbury Park

Many house builders are collaborating with various companies to combine design and architecture. Some work with luxury brands, while others focus on high street chains and specialist local shops to provide homes where first time buyers can afford to get the look.

Furnishing store Heal’s has designed Scandinavian-style show homes at Woodberry Down, where new flats, starting at £465,000, overlook two reservoirs. Enjoy the sailing club and nature trail with your loved ones this Easter.

Annual House Price Growth at 7.9%, According to ONS

Published On: March 23, 2016 at 12:30 pm

Author:

Categories: Property News

Tags: ,,,

UK house price growth rose to 7.9% in the year to January, up from 6.7% in the 12 months to December 2015, according to the latest house price index from the Office for National Statistics (ONS).

Annual house price inflation was 8.6% in England in January, -0.3% in Wales, 0.1% in Scotland and 0.8% in Northern Ireland.

The large increase in house prices in England was fuelled by an 11.7% rise in the South East and 10.8% growth in London, shows the data.

Excluding London and the South East, UK house prices rose by 5.1%.

On a seasonally adjusted basis, average house prices grew by 0.9% between December and January.

The average UK house price is now £292,000, according to the ONS. Earlier this week, Rightmove reported that the average property is now worth over £300,000.

Many industry experts have commented on the new figures:

Stephen Smith, the Director of Legal & General Housing Partnerships, says: “House prices continue their steady upwards march, as they are likely to do for some time, unless Britain can address the lack of housing supply in this country.

“With the cost of owning a home continuing to rise well above both earnings and inflation, the gap between supply and demand is pumping up prices and making affordability an impossible dream for many – especially in London and the South East.”1

More and more young people believe that they will never get on the property ladder, as it is believed that it takes the average single first time buyer 13-and-a-half years to save a deposit.

Annual House Price Growth at 7.9%, According to ONS

Annual House Price Growth at 7.9%, According to ONS

Worryingly, three quarters of young Britons expect to stay in the private rental sector forever.

The Sales Director at New Street Mortgages, Adrian Whittaker, continues: “The ONS figures show a market that’s continuing the strong annual growth that characterised much of 2015. Competition for property is still fierce, and in this sellers’ market, the speed at which a buyer can secure a mortgage can be the difference between first and last place in the race to buy property.”1

Mark Posniak, the Managing Director of Dragonfly Property Finance, adds: “This latest annual house price data once again throws into sharp relief the contrast between the housing markets of England, Wales, Scotland and Northern Ireland. They may be geographical neighbours but they could be thousands of miles apart in terms of house prices.

“For annual prices in the South East to have outperformed London underlines an ongoing shift in demand away from the capital as people look for more value elsewhere. London will remain a formidable bastion of the UK’s property market, but for many its prices are an insurmountable obstacle.

“However, the strength of demand in the months ahead may well be reduced by worries about the impact of a potential Brexit, causing many would-be buyers to sit on their hands.

“The Government’s move against landlords, which officially starts next month, is a fundamental shift and has the potential to reshape the property market in the years ahead.”1

From 1st April, landlords will face changes to their taxes, notably the 3% Stamp Duty surcharge, which was confirmed in last week’s Budget.

Finance expert Paul Mahoney of Nova Financial has explained how the Budget announcements will affect landlords: /budget-reasonably-positive-believes-finance-expert/

Jan Crosby, the Head of Housing at KPMG, explains the ONS data: “Today’s ONS figures show a record high, with England outpacing the other areas of the UK for house price growth. When you look further into the facts, the rise is driven by ever by the South East of England, London and the East of England, with the percentage increase in the capital over the past 12 months more than double the rest of England when London and the South East’s rises are excluded.

“Of course, this comes as no surprise, and highlights both the broken and atypical nature of the market in those areas. As ever, the issue is down to supply versus demand, and while last week’s Budget did have measures, such as the Lifetime ISA, which are in part designed to help buyers onto the property ladder, the record didn’t change when it came to generating supply, with announcements effectively repeating or slightly extending previous reforms.”

He adds: “However, one particular Budget announcement could have an underlying effect on house prices; it will be interesting in a year’s time to see how much prices in the north have inflated, specifically around areas like Manchester and Liverpool, which are set to benefit following the Chancellor’s renewed commitment to infrastructure projects, including HS3, the trans-Pennine tunnel and improvements to the M62.

“It is certainly likely that property investment, especially from abroad, will increase in the north, and this will include housing projects – while this might be good for the economy, it could be bad news for those hoping to buy a home.”1 

We continue to provide you with the latest landlord updates on all issues regarding the sector.

1 http://www.financialreporter.co.uk/finance-news/ons-annual-house-price-growth-rises-to-79.html

SpareRoom Founder Selects His Housemates After Documenting Search

Published On: March 16, 2016 at 3:44 pm

Author:

Categories: Property News

Tags: ,,,,,

Two months ago, the founder of SpareRoom.co.uk began documenting his journey to find two new housemates for his six-bedroom home. Now, Rupert Hunt has made his choice.

After posting an initial video advertisement, Hunt received a whopping 7,251 applications from a variety of hopeful housemates aged between 17-68. Three even came to the house.

You can see a selection of the video applications here: /over-7000-tenants-apply-to-live-with-spareroom-founder/

The process has highlighted the interesting use of videos as a search tool, the struggles of generation rent and how an online-only business is exploring the very human fundamentals of finding a housemate.

It also emphasises the shortage of housing in London, where Rupert’s home is located.

“There are so many empty rooms in properties across the UK, as well as people overstretching themselves to afford a one-bed place, so I think it’s so important to spread this message that living with the right people beats living on your own,” Rupert explains.

SpareRoom Founder Selects His Housemates After Documenting Search

SpareRoom Founder Selects His Housemates After Documenting Search

The entrepreneur advertised the rooms on a pay what you can afford basis. His new housemates now pay £500 per month each, well below the average room rents for the area of east London.

Rupert held a house party for applicants and attended a speed-flatmating event, which was all documented on SpareRoom’s YouTube channel.

So who has he chosen?

First up is Colin Ho, a 27-year-old musician from Sydney, Australia. The second housemate is editor Ivanka van der Merwe, also 27-years-old, from South Africa.

Ivanka says: “I’ve been in London for almost six years. I’ve lived in five different rooms and never once managed to unpack all of my bags. I guess I just kept waiting for things to go wrong, to have to move again. I never feel quite comfortable enough to put down roots anywhere or call anything home.

“I went back to my old flat to collect the remainder of my things, and it was sad and strange to accept that a chapter of my life was over, but the overriding thought that persisted through all that was, ‘I just want to get this done so I can go home’.

“Home. Where Colin was waiting for me with a glass of wine and a hug. And the first thing I did was carry it all into my room and unpack as much as I could.”1 

Rupert explains the process: “It was an unbelievably tough decision – I could have easily lived with most of the people I met. In some ways, what stood out about the two I chose was what didn’t stand out. Colin and Ivanka both submitted videos of themselves chatting about nothing in particular, but I got a really good vibe and a strong sense that we’d get on well, which turned out to be true.

“Colin’s a laid back, optimistic kind of guy, passionate about his music and excited by the possibilities that life in London has to offer.

“It was clear from her video that Ivanka has a sharp sense of humour and she regularly has us in hysterics. We also seemed to have quite a few things in common, such as taste in music and food. She’s also got a nice bunch of friends I’ve enjoyed getting to know. She loves cooking and has made a few great dinners for all of us.”

He explains living with the pair: “Cooking and eating together has been one of the other highlights so far, which I haven’t experienced to the same extent with previous housemates.

“After another short stint between housemates, rattling around the house on my own, it’s been a good reminder that living with the right people beats living on your own.”1

Would you follow in Rupert’s footsteps in finding housemates? If you are a homeowner, you will be pleased to know that from 6th April, you can earn more from taking in a lodger than you can at present. The tax-free allowance increases to £7,500 per year on this date.

See Rupert’s final video in the series: https://www.youtube.com/watch?v=wJSi5-NeRsc

1 http://www.propertyindustryeye.com/worth-watching-spareroom-founder-finally-finds-flatmates/

Number of Landlords Looking to Sell Quadruples in Six Months

Published On: March 11, 2016 at 9:35 am

Author:

Categories: Landlord News

Tags: ,,,

The number of residential landlords in central London who are looking to sell their rental properties has quadrupled since last year’s Budget, according to new data from the National Landlords Association (NLA).

Number of Landlords Looking to Sell Quadruples in Six Months

Number of Landlords Looking to Sell Quadruples in Six Months

When surveyed before last year’s Budget, just 4% of private landlords had plans to sell property. However, the proportion has almost quadrupled, rising to 19% when surveyed in January this year.

The 15% growth in intention to sell rental property is the highest seen across the UK in the past six months.

The smallest increase in intention to sell was from residential landlords in the North East, rising from 17% in June last year to 24% in January – up by just 7%.

The reduction in mortgage interest tax relief for individual residential landlords – announced in last year’s Budget – will leave many landlords making losses, forcing some basic rate tax payers into a higher tax bracket, and leaving higher and additional-rate tax payers with significantly higher tax bills.

The NLA has named the change the Turnover Tax, as landlords’ tax will be calculated on the rental income they receive, rather than their profits.

The CEO of the NLA, Richard Lambert, says: “Local property markets vary greatly across the United Kingdom, but we are seeing a loss of confidence across the board as many landlords realise they won’t be able to remain in the market.

“If landlords follow through with their intentions over the coming months, this could lead to a massive sale of property, as we have previously warned. However, this may not be a straightforward process, especially for those with stock in low demand areas.”

He adds: “We urge those considering selling up to think about when they will need to do so, and to plan ahead now in order to minimise the risk of losing money as a result of a failure to sell.”1 

How many landlords plan to sell around the UK?

[table id=3 /]

Are you planning on leaving the private rental sector or reducing your portfolio due to the tax changes?

For more advice for landlords on how the changes will affect you, this piece by a leading finance expert will help you understand the impact: /contrary-to-popular-belief-buy-to-let-is-not-dead-insists-finance-firm/

1 http://www.landlords.org.uk/news-campaigns/news/proportion-london-landlords-looking-sell-quadrupled-in-last-six-months

London Council Launches Letting Agency to Protect Private Tenants

Published On: March 10, 2016 at 3:26 pm

Author:

Categories: Property News

Tags: ,,,,

A London council has launched a letting agency for private tenants in a bid to protect renters from extortionate fees and charges.

Haringey Council in north London says its online letting agent, Move 51° North, is the first in the UK to provide private tenants with an alternative to mainstream letting agents.

A study by Citizens Advice last year found that tenants were paying an average of £337 in charges to letting agents, but that fees vary massively from agent to agent.

London Council Launches Letting Agency to Protect Private Tenants

London Council Launches Letting Agency to Protect Private Tenants

Costs for checking references ranged from £6-£300, while tenants also faced charges of between £15-£300 for simply renewing their tenancies.

Haringey Council’s agency will charge tenants a fee of £180 to cover administration and £72 for credit checks. There are no renewal fees for those tenants that wish to continue their tenancy beyond the original contract term.

Landlords will be offered lettings and management services at the market rate and access to the council’s maintenance services for any repair work.

The council will spend around £500,000 in the first three years to cover costs, but hopes to return this by the fifth year.

Around one third of the borough’s homes are privately rented, with an average rent of about £1,600 per month for a two-bedroom property.

Haringey Council’s Cabinet Member for Housing and Regeneration, Alan Strickland, believes the agency will “help stamp out rip-off fees and charges”.

He says: “Private tenants in London are too often forgotten in the noisy debate about the housing market in our city.

“Haringey is fast becoming one of London’s most popular places to live and work, and we know many people prefer the flexibility of the private rented sector, which is why it’s vital we do more to protect them from rogue landlords and unscrupulous lettings firms.”1

Dan Wilson Craw, of Generation Rent, comments on the plans: “The average household in London pays more than £400 in agent fees when they move home, so some disruption to the market is welcome.

“We hope the council will use this as an opportunity to lead the way in providing secure tenancies with predictable rents, but for the time being, not all tenants will benefit. We need much wider reform to give renters greater power in the market.”1

Would you use a letting agency like this one? 

1 http://www.theguardian.com/money/2016/mar/10/london-council-launches-letting-agency-for-private-renters