Posts with tag: renting in london

Lewisham Helps Renters get on the Property Ladder

Published On: May 21, 2015 at 12:55 pm

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Raising the substantial deposits required for buying a home is a well-known problem for first time buyers. Without help from their parents, it is virtually impossible to get on the property ladder.

In the capital, it is an even bigger difficulty, with an average of £69,000 needed for securing a house, found Savills estate agent. However, one South East London suburb is helping those struggling.

Housing association L&Q has launched a scheme, Goldcrest House, on Lee High Road, Lewisham. Aspiring buyers can rent a one or two-bedroom flat at a subsidised rate; 20% less than commercially rented new builds in the area.

This will hopefully give tenants the chance to save for a deposit.

Under the scheme, titled UpToYou, renters can stay in the home for as long as they want and can then move to another rental property or buy themselves a home, either shared-ownership or outright, in the future.

L&Q is offering 29 properties, some overlooking the River Quaggy and the majority with balconies or terraces. They will be ready to move into next month.

Prices start at £930 per month, or £1,150 for a two-bedroom flat. Priority will be given to those already living in Lewisham.

The nearest station is Lewisham, which is a five-minute walk from Goldcrest House. Trains to Cannon Street or Charing Cross take about 15 minutes. To Canary Wharf, locals can take the Docklands Light Railway. An annual season ticket is £1,284.

The scheme sounds too good to be true, and to some Londoners, it will be. Rents at Goldcrest House have been set in line with new builds in Lee; better bargains could be found in older homes.

The area is also a redevelopment zone. The Leegate Shopping Centre has been named the worst in Britain, with over a third of shops empty. Lewisham Shopping Centre, however, is bustling, but lacks any independent shops.

Work has also begun on a six-year regeneration project in the town centre, meaning that traffic is awful and the area doesn’t look great.

There are some quality pubs and restaurants here, but not many. Locals usually prefer Blackheath or Hither Green for a night out.

L&Q’s sales negotiator for the scheme, Roxanne Halliday, has lived in the area and says that Goldcrest House is ideal because it is close to open space, transport and shopping.

She says: “The traffic problems will end when the regeneration is finished. You can get lots of ethnic foods and it is very diverse and friendly.”1 

1 http://www.homesandproperty.co.uk/property-news/affordable/first-time-buyers-lewishams-low-rent-route-getting-property-ladder

Aristocrat Claimed £18k in Benefits While Renting Out £1.1m London Home

Published On: May 15, 2015 at 10:13 am

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An aristocrat has been charged with claiming £18,000 in housing and Council Tax benefits while renting out her £1.1m London property to tenants.

Vera-Brigitte Bilek Von Sternberg, born in Vienna, is accused of keeping a bank account secret and stating the tenants were her friends and family.

Vera-Brigitte, of Notting Hill, said she was not guilty when appearing at Hammersmith Magistrates’ Court this week.

She is a freelance arts and performing arts critic and daughter of a former Cultural Attaché to the Middle East. She moved to Chelsea in 1990 with her daughter.

Vera-Brigitte became a head of department at two educational institutions. She is also a member of Chelsea Old Church and has been elected onto the boards of charitable trusts as a fundraiser.

She was bailed to appear at Isleworth Crown Court for a preliminary hearing on 26th May after the court declined jurisdiction due to the severity of the case.

All of the money Vera-Brigitte owed has been returned to the local authority. She is charged with two counts of fraud by false representation.

It is believed that on 17th September 2009 and 13th July 2011, Vera-Brigitte made a false representation in a housing benefit and Council Tax benefit application for Ivy Cottage in West Brompton. She said that she had no bank account. In fact, Vera-Brigitte had a Barclays account.

She is also charged with making a false representation on 4th February 2013 when she claimed for benefits on the same property by informing the council she did not have subtenants, just guests.

Vera-Brigitte claimed to have no income besides Pension Credit and Disability Living Allowance (DLA), however, she had a number of tenants who paid rent between 16th September 2012 and 18th September 2013.

She also faces two counts of dishonesty for failing to notify a change in circumstances; she was renting out two homes on Uverdale Road between 2012-13.

Furthermore, she is charged with dishonesty for failing to inform the council that she had a tenancy agreement with Anchor Trust and had moved out of Ivy Cottage into her current home.

First Time Buyers Rushing to the Prime London Market

Published On: May 8, 2015 at 2:17 pm

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The number of first time buyers is almost even with the amount of investors in the prime London property market, found estate agent Marsh & Parsons.

Investors are still making the most home purchases in prime London, but the gap has closed in after first time buyers rushed into the market in the last three months.

Marsh & Parsons’ London Property Monitor found that around one in three (29%) of prime London property sales were made by investors in the three months to March 2015. This fell from 37% at the end of 2014.

In the same period, the number of first time buyer sales rose from only 21% in the last quarter (Q4) of 2014, to 28% in Q1 2015. This increase has boosted the total number of sales in the prime market funded by mortgages to 17% in the last three months.

First Time Buyers Rushing to the Prime London Market

First Time Buyers Rushing to the Prime London Market

In Q1 2015, demand for prime London homes grew by 20%. This has caused added competition for available properties on the market and increased the amount of registered buyers per home from ten in December 2014 to 12 in March 2015.

CEO of Marsh & Parsons, Peter Rollings, says: “First time buyers have been riding a wave of fortuitous circumstances recently, with almost unheard of mortgage rates, reduced up front Stamp Duty costs and support schemes like the Help to Buy Isa inflating confidence.

“Combined with a more accessible pace of property price growth so far in 2015, many more have been able to take the plunge into the property market. Prime London property has always been a bastion of investment, but it’s encouraging to see the drawbridge being lowered for everyday Londoners who live and work in this city.

“However there is, and has always been, some aspirational prime central areas that are out of grasp for new buyers, and will remain an investment stronghold. Addresses like Kensington and Chelsea resonate around the world, and will forever entice buyers looking for unparalleled capital returns.”

One-bedroom properties

Due to the high demand for starter homes, one-bedroom properties in prime London have experienced the largest increase in value in the last year, with the average price up 5% compared with the 1.7% annual growth in the whole market.

The price of the average one-bedroom home in London has increased by £75 a day in the last 12 months.

Likewise, buy-to-let investors favour one-bedroom properties, as rents on these homes have risen at the fastest rate of all house types. The average weekly rent on a one-bedroom property has increased 5.8% year-on-year in the cheaper parts of outer prime London. Young professionals are particularly keen on renting these homes.

Rollings adds: “With more and more young professionals climbing onto the property ladder, one-bedroom properties have outperformed the market across prime London.

“Historically, buyers rated property on the number of bedrooms and a check list of desirable features. But the speed at which the London property market has moved in recent years has shifted the goalposts.

“Today’s Londoners are far more likely to prioritise location, overall square footage and well-thought through living space, compromising on that second bedroom accordingly. For the same reason, savvy investors who find the right one-bedroom property have the golden ticket to rental returns.”1

1 http://www.landlordexpert.co.uk/2015/05/07/first-time-buyers-flying-through-the-prime-london-property-market/

 

 

 

 

 

 

London Tenants Share Rooms with Strangers

Published On: January 26, 2015 at 11:03 am

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Tenants in London have to share bedrooms, sometimes with complete strangers, to combat the spiralling rents of the capital.

Flat and house share website SpareRoom.co.uk has experienced a 71% increase in searches for bedroom shares in the last two years.1

Matt Hutchinson, Director of SpareRoom, says: “We know many couples are sharing rooms in house and flat shares with other people to save money, but there’s also a rising number of single people sharing rooms now too.

“Few people would choose to share a room, but the harsh reality is that London’s housing crisis means rents are becoming increasingly unaffordable.”1

A twin room in West London is being listed at £259 a week per tenant. Bunk beds are also being offered as twin rooms in some instances.

Another website, Kangaroom, which helps people find spare rooms, had 93,505 adverts placed on their site in 2014 by those looking to share either twin or triplet bedrooms. This was a 48% rise on 2013.1

Founder of Kangaroom, Jinder Sidhu, says that bedroom shares now make up over 10% of the market.

Sidhu explains: “While rent prices in general rose by 7.5% in 2014, room share prices have decreased by 12% due to increased supply and denser living conditions.”1

Tove Eriksson and Francesca Whitlock, both 25, met at the University of Leeds. After they graduated, Eriksson moved back home to Sweden and Whitlock, from London, taught English in Chile.

London Tenants Share Rooms with Strangers

London Tenants Share Rooms with Strangers

Last year, they both looked to move to London. Researching prices, they found that the only option in their price range was sharing a bedroom. Their friends and family were shocked when they revealed the situation.

Eriksson is a project coordinator for a women’s rights theatre project. It is a paid role, but is only part-time. She works as an office temp the rest of the time. Eriksson was hoping that she would earn enough for her own bedroom, but admits this could be a long way off: “I’m dependent on sharing. It’s either sharing a room or not living [in London].”1

Whitlock is beginning work as a campaigns intern at the Climate Coalition, and thinks living in the capital is the only way she will build a career in the area she is passionate about. She says: “It’s tricky; you feel you have to be here, but you have to pay absurd rents.”

Both girls have expressed how lucky they are to be sharing with a friend. Whitlock comments: “To share with someone you don’t know, I don’t want to use desperate because that’s not a nice word to use, but what a horrible situation to be in if there is no other way you can live.”1

Housing and rent campaigners have said that the trend is worrying, but inevitable.

Housing charity Shelter’s Chief Executive, Campbell Robb, says: “With our housing market out of control and rents sky-high, it’s no surprise that people across the capital are having to resort to these sort of measures just to keep a roof over their heads.

“But it’s simply not right that people are being forced to share their personal space with someone they barely know just so that they can make ends meet each month, let alone save money to build a stable future.

“The only way to end this madness is for politicians to roll up their sleeves and commit to building the genuinely affordable homes we so desperately need.”1

The March for Homes on 31st January will see tenants, trade unionists and campaigns march on City Hall, London, in a bid for Boris Johnson and councils to tackle the lack of affordable homes in the capital.

1 http://www.theguardian.com/money/2015/jan/25/london-tenants-forced-to-share-rooms

Rise in Rent for London in 2015

Published On: December 13, 2014 at 11:45 am

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London property prices will rise by 3-5% in 2015, it is predicted.

High tenant demand is estimated to drive rental prices up by 10% in the next year.

Doubt surrounding the general election will also have an affect on the corporate letting market.

Estate agent Marsh & Parsons expect London house prices to relax and become slower in their growth throughout 2015.

The firm believe that prime London property prices will increase between 3-5% in 2015, compared to the 11.4% rise seen over the last year.1

Yearly growth is set to be the strongest, at 5% in outer prime London, where property prices are generally 25% lower than within prime London as a whole, which will boost demand. However, the priciest London areas will see rises of 3%.1

Marsh & Parsons also presume there will still be confidence in the market into 2015, as mortgage lenders provide the most competitive rates ever.

CEO of Marsh & Parsons, Peter Rollings, says: “The London housing market gave a stellar performance in the first half of 2014, but there won’t be quite the same encore next year. However, the curtain certainly isn’t going down on price growth. After touching the brakes in recent months, property values will continue to climb steadily again in 2015, albeit at a more modest and orderly pace.

Rise in Rent for London in 2015

Rise in Rent for London in 2015

“Demand for prime London property remains stable, and after adapting to the MMR changes and tighter affordability measures introduced this year, buyers are more motivated than ever; maintaining sales momentum and ensuring that property prices will not stand idle. The general election will act to stimulate the market, removing much uncertainty and drawing a line under any hesitation from buyers and sellers, but this isn’t too say that the first five months of the year will be a write-off as London won’t stop working.”

Marsh & Parsons are predicting much higher growth in the prime London rental market, estimating rises of 10% in 2015. After a period of steady rental prices, rents in prime London have increased gradually during 2014, and the pace should develop in the next 12 months.1

Corporate tenancies rose 14% in 2014, compared to 2013. High demand for corporate lettings and relocations will aid the progression of this sector in 2015.1

Rollings explains: “The rental market will be where much of the action takes place in 2015. Those relocating to the capital for work are now biding their time before purchasing their own portion of London property, until question marks surrounding additional property taxes are erased. This will push demand in the corporate lettings sector even further, and the biggest rental increases are predicted to be among one or two-bedroom flats.

“Supply of rental properties looks set to be sustained, but any regulatory changes to tenancy fees under a new Government could inflate rents artificially. The powers that be need to ensure that landlord are not spooked out of the market by unnecessary layers of legislation, and that aspiring property investors don’t take their money elsewhere.”

Any interest rate rises should not affect the housing market too much in 2015, as the increases are only predicted to be between 0.25% and 0.5%.1

Rollings concludes: “With an array of attractive mortgage products on the market, and many homeowners tied into existing deals, an interest rate rise towards the latter end of 2015 is unlikely to cause any seismic shifts in the property landscape. Even after a lift, interest rates will still remain remarkably low, and the primary preoccupation for buyers will not be interest rates, but accessing competitive mortgages, which Government initiatives have been making much easier.”1

1 http://www.marshandparsons.co.uk/latest/press/item/2359-press-release-london-rent-rises-to-outpace-house-price-growth-in-2015

 

 

Tackling rent rises

Published On: June 4, 2014 at 9:43 am

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There are calls to change parts of the law to ensure that rent increases do not price tenants in London out of the market.

The price of renting in London is said to have, ‘gone through the roof and kept going,’ according to Jim Fitzpatrick, MP for Poplar and Limehouse. He goes on to say that for people renting in Tower Hamlets, yearly rent can, ‘easily take up to 70% of earnings which makes saving for a deposit and moving up the ladder near impossible.’[1]

Tackling rent rises

Tackling rent rises

Runaway Rents

Right across England, there are a growing number of tenants that describe rising rents as a problem. On average, it is thought that people are now paying £1, 020 a year more on rent that what they were in 2010.

Fitzpatrick believes that, ‘rip-off charges, unpredictable jumps in rent and insecure tenancies add to the uncertainty when people should feel safe in their own home.’[1]

Labour

Fitzpatrick feels that recent reform outlines for the private rental sector from the Labour party could gain them a number of voters at the 2015 General Election. Their proposals include giving protection against substantial rent increases, abolishing unfair agent fees and introducing three-year tenancy agreements.

Mr Fitzpatrick says that, ‘the private rental market has changed considerably and now the law has to as well.’ He goes on to suggest that, ‘more than 30,000 people rent privately in Tower Hamlets,’ and the proposals, ‘can make a difference to every one of them.’ [1]

[1] http://www.wharf.co.uk/2014/05/jim-fitzpatrick-we-must-tackle.html