Posts with tag: London

London landlord claims Romanian government owes them £75,000 in rent

Published On: February 5, 2020 at 10:19 am

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A landlord in London is chasing £75,000 in outstanding rent from the Romanian ambassador for their former residence near Hyde Park.

Despite receiving a High Court order in December 2019, the Romanian government is refusing to pay the sum. Officials have insisted that due to a ‘gentleman’s agreement’ they are not liable for the last six months of the lease. The tenancy was £12,000 a month.

The country’s diplomats believe that landlord Christopher Christos told them they could end the tenancy six months early.

Dan Mihalache, ambassador of Romania to the UK, was sent an order to quit the premises after they stopped paying rent in December 2018, but Mihalache remained in the property until the lease expired.

It was then on 11th December 2019 that the High Court ordered the Romanians to pay Christos the final six months’ rent plus £3,660 in legal fees.

Christos, who acquired the property in 2007 for £2.8m, told the press: “They are giving me the run-around and think that because of diplomatic immunity they are untouchable.” 

“I’ve got a mortgage to pay off,” he added. 

A spokesman for the Romanian embassy told The Times newspaper: “Following this agreement, the owner was also notified in writing by the embassy of Romania about the termination of the contract with a grace period of three months.

“During this agreed period of three months the Romanian embassy continued to pay the rent for the respective property, as agreed with the owner. 

“The landlord didn’t inform us about any changes in his position, so his decision to ignore the termination agreement and to claim breach of the contract came surprisingly.

“At the end of the three-month notification period, the Romanian Embassy vacated the space, the residence of the head of the mission being relocated.”

The ambassador used the property, located at 18 Hyde Park Street, as their residence from April 2008 to April 2019 when the lease expired.

East London boroughs lead the way in Portico’s ‘eight best places to buy property in London’

Published On: January 17, 2020 at 10:56 am

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In Portico’s recent research for potential property hotspots in 2020, it listed eight key areas to consider.

The results show that East London has a lot to offer for property investors this year. Six of the top boroughs are located in this area, including Barking & Dagenham Newham, Tower Hamlets, Redbridge, Havering and Ilford.

Portico highlights that this region has seen a significant amount of regeneration, as well as becoming a sought-after location for homebuyers, investors and tenants. House prices, rental demand, and population are forecast to see extensive growth.

Affordable properties & lucrative rentals in Barking & Dagenham

  • Barking & Dagenham has the most affordable average house price on Portico’s list, at £318,527.
  • The average rental yield in the borough is the second highest on the list at an impressive 5.4%.
  • Transport is appealing, with easy access to central London via the District Line and a new rail link also being constructed to further improve connectivity.
  • Major investment and regeneration projects are also on their way, which are expected to boost house prices and population growth.

The most affordable places with average prices under £400,000

  • Sutton is second on the list for most affordable, with the average property price of £387,286.
  • It is located in Zone 5, within close proximity of central London, while being on the doorstep of the attractive Surrey countryside.
  • Sutton is deemed to be an especially attractive place to live, as it has retained a village feel that can be hard to come by in Greater London.
  • Havering is another borough worth considering, with an average property price of £392,031. Rental yields are also at a healthy 4.9%.
  • Portico points out that Havering has become a hub for start-ups and expanding businesses.

The most lucrative rental yields

  • With an average rental yield of 5.5% and average property price of £421,226, Ilford may catch your eye. Transformations are underway to make it into a top commuter location.
  • Not far behind is Redbridge, with an average rental yield of 5%. This is a particular green area of London, with award-winning parks and a forest.
  • Redbridge is also known for its schools, with 14 primary schools currently rated as Outstanding by OFSTED, Portico has researched.
  • Rental yields are also looking good in Newham, at an average of 4.9%. The area has seen a significant amount of regeneration and growth since the 2012 Olympic Games.

RLA: London courts need to be reformed

Published On: January 16, 2020 at 10:00 am

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Landlords in London are facing long waits for courts to issue repossession orders. The RLA says the courts are failing to cope with the demand. 

New figures published yesterday show that London landlords are facing waits of around 30 weeks on average between making a legitimate claim and courts issuing repossession orders. 

Worryingly, this figure is up from 23 weeks last year.

London has the highest waiting time in the country. The unwanted title of second place is held by the North East region, where landlords are waiting 23.5 weeks on average.

The Residential Landlords’ Association (RLA) has warned that this will only get worse if the government goes ahead with their plans to end Section 21 evictions. Courts will need to spend more time determining the circumstances of cases and pressure on them will increase.

They also believe that good landlords will begin to disappear as word spreads on how long legitimate repossession takes. The knock-on effect could be that life is made more difficult for tenants looking for a place to live.

The RLA is calling on the Government to establish a dedicated housing court in order to improve and speed up access to justice for landlords and tenants in the minority of cases where something goes wrong. 

John Stewart, Policy Manager for the Residential Landlords Association, said:

“If landlords feel that they might have to wait forever to regain possession of their property where they have good reason, such as tenants committing anti-social behaviour or failing to pay their rent, increasing numbers are going to feel it is not worth the risk of letting the property out in the first place. This will just add to the already growing shortage of investment in rented housing which is badly needed to meet a rising demand.

“The RLA was delighted when the Government consulted on its proposal for a housing court a year ago but nothing has happened since. It needs to get on and get it set up for the benefit of landlords and tenants alike.”

Portico Reveals 8 Potential Property Hotspots for 2020

Published On: January 15, 2020 at 10:08 am

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If you’re looking for somewhere new to invest this year, leading estate agent Portico has revealed eight potential London property hotspots for 2020.

With house prices in London remaining relatively flat over the last couple of years and wage growth increasing, the agent has calculated that it has become 10% more affordable to purchase a property in the capital.

Vatche Cherchian, Portico’s Regional Director, comments: “While house prices in London have remained relatively flat over the last couple of years, wage growth hasn’t. We’ve actually seen a 4% growth year-on-year in wages. And if you tally that wage growth increase up against flatlining London house prices, what you’re saying in real-terms is that it has become around 10% cheaper to buy a property, which is encouraging.”

There has also been an increasing demand for rental properties in London, but a low supply of stock. This has resulted in increasing rents and healthy yields.

The recent housing report from Tony Blair states that, if we see the Conservative manifesto proposals carried out, we could see a 26% rise in prices. For investors looking to use these factors to their advantage, Portico has used its extensive market research and London rental yield data to conclude the following property hotspots for 2020:

1. Barking & Dagenham 

Average house price: £318,527*

Average rental yield: 5.4%**

2. Sutton 

Average house price: £387,286*

Average rental yield: 4.4%**

3. Havering 

Average house price: £392,031*

Average rental yield: 4.9%**

4. Ilford 

Average house price: £421,226*

Average rental yield: 5.5%**

5. Newham 

Average house price: £445,425*

Average rental yield: 4.9%**

6. Redbridge 

Average house price: £488,632*

Average rental yield: 5%**

7. Hounslow 

Average house price: £497,758*

Average rental yield: 4.7%**

8. Tower Hamlets 

Average house price: £545,550*

Average rental yield: 4%**

*Rightmove data correct as of 16.12.2019

**Portico rental yield map data correct as of 16.12.2019

London: First rogue landlord banned under new laws

Published On: December 5, 2019 at 9:08 am

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London’s first rogue landlord has been banned from letting property by Camden Council. Cesar De Sousa Melo, 45 is the first landlord to be banned under new laws that came into effect last April.

The order, secured by Camden Council at a tribunal in November prohibits Melo from letting any housing for the next four years. Should he breach this ban, he faces up to 51 weeks in prison and/or a Civil Financial Penalty of up to £30,000. 

The tribunal heard that the rogue landlord had sublet three flats, one in King’s Cross, a second Bloomsbury and the final in Euston. In June last year, the King’s Cross flat was raided and found to be overcrowded and not to have working fire alarms, putting tenants at serious risk. 

The three bedrooms had beds crammed in, including four bunks in one room. The kitchen was also too small for all the people living in the property and a door was hanging off its hinges.

In August of last year, the other two flats were raided and found to also be in a bad state of disrepair and to be breaking many safety and habitation laws under the Housing Act.

It was claimed in the tribunal that the tenants lives were put at risk by living in the flats. A combination of non-working smoke alarms and poor fire escape routes were presented as evidence of this. In addition, most of the rooms did not have working central heating. 

The tenants in all three homes were described as vulnerable to exploitation owing to their age and nationalities. 

Melo given some of the tenants tenancy agreements in which he claimed he was the landlord, although he was in fact subletting. He has been fined £29,000 for offences involving the three flats.

Five emerging residential hotspots to watch in 2020

Published On: November 27, 2019 at 9:50 am

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Andy Foote, director at SevenCapital, has highlighted five emerging residential hotspots in London to watch in 2020.

He highlights that significant regeneration programmes underway or in the pipeline, good travel connections to key towns and good property price growth have led to the following areas transforming into thriving residential areas:

Bracknell

  • Bracknell offers a thriving business community (home to the likes of HP, Dell and Hitachi)
  • Direct connection to London and other key destinations
  • A lower price tag than other areas, with an average property price of £370,000
  • Recently named in The Times as one of Britain’s most thriving communities
  • Property price growth since 2014 is 20.77%

Slough

  • Average house prices currently around £345,000 (£200,000 less than neighbouring Windsor and circa half the price of London)
  • Home to the largest concentration of global headquarters outside of London, including O2 and Mars
  • Around 46% of homes rented in Slough are to London leavers
  • An eagerly awaited Crossrail station will be built, connecting Slough to the Elizabeth line
  • Property price growth since 2014 is 18.14%

Stevenage

  • Average sold prices at around £293,000
  • A 25 minute train commute to London’s Kings Cross Station (where Google is set to move into its new £1 billion headquarters in coming years)
  • Undergoing a £1 billion regeneration project, including a £350 million town centre regeneration project, set to begin in 2020
  • Property price growth since 2014 is 20.77%

Northampton

  • Sat almost equidistant between Birmingham and London
  • Fast house price growth, with prices increasing by 5.3% over the past 12 months
  • If its designs on receiving the ‘Future High Streets’ fund and Towns Fund go as planned, it could be in for a £50 million regeneration boost from the government, which is certain to attract more businesses, visitors and residents alike
  • Property price growth since 2014 is 23.8%

Milton Keynes

  • Only 33 minutes by train from London
  • Hometrack lists it as one of the top ten locations for house price growth
  • A key member of the Fast Growth Cities group that has resulted in nearly 20% of its workforce joining the knowledge sector
  • Expected to double its population by 2050
  • Property price growth since 2014 is 21.12%

Andy Foote concludes: “Whilst these areas may not have been traditionally thought of as premium property investment locations, they are fast becoming recognised as up-and-coming hotspots with strong growth potential, which, in an increasingly diverse property market, could hold the key to future success.”