News
Research reveals differences between landlords and tenants on maintenance
There is significant confusion when it comes to where responsibilities lie in rental properties when it comes to issues relating to property maintenance and care, new research shows. The biggest discrepancy between what tenants and landlords believe relates to providing meter readings at the beginning and end of the tenancy period. Some 73% of landlords correctly think it is their tenants’ job to do this, but only 35% of tenants think so. The research from landlord and tenant insurance provider Endsleigh also shows that 60% of tenant respondents consider it as the landlord’s responsibility to touch up paintwork, yet 45% of landlords cite it as the tenant’s. Tenants and landlords are also unclear when it comes to the responsibility for pest control. Some 32% of landlords believe pest control is the tenant’s responsibility, yet 84% of tenants consider it as the landlord’s. Endsleigh, together with the London Landlord Accreditation Scheme (LLAS), has created a responsibilities guide to clear up the confusion when it comes to rental property maintenance and care. ‘Relationships between landlords and tenants can become strained when rental responsibilities aren’t fulfilled,’ said Marcus Latchford, Endsleigh's lettings and landlords manager. However, sometimes it’s just a case of one side being unaware of their responsibilities. Individual contracts will often spell out who should be taking care of what, but the small print is often the last place people look,’ he added. Jessica Alomankeh, projects coordinator at the London Landlord Accreditation Scheme (LLAS) said that while most of the responsibilities for landlords and tenants are well understood by both parties but some things are still confusing. ‘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,’ she explained. ‘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. Continue reading
Cash sales of homes in the United States falling, latest figures show
Cash sales made up 34.6% of total home sales in the United States in March 2015, down from 39% in the same month in 2014, according to the latest data available. The year on year share has fallen each month since January 2013, making March 2015 the 27th consecutive month of declines, the report from real estate form CoreLogic shows. Month on month the cash sales share fell by 2.8% compared with February but the firm pointed out that due to seasonality in the housing market, cash sales share comparisons should be made on a year on year basis. The cash sales share peak occurred in January 2011 when cash transactions made up 46.5% of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25%t. The report predicts that if the cash sales share continues falling at the same rate it did in March 2015, the share should decrease to 25% by the middle of 2016. A breakdown of the figures shows that real estate owned (REO) sales had the largest cash sales share in March 2015 at 56.2% followed by resales at 34.5%, while short sales accounted for 31.6% and newly constructed homes 14.9. While the percentage of REO sales that were all-cash transactions remained high, REO transactions made up only 8.4% of all sales in March. In January 2011, when the cash sales share was at its peak, REO sales made up 23.9% of total home sales. Resales make up the majority of home sales at about 80% and therefore have the biggest impact on the total cash sales share. Florida had the largest share of all cash sales at 51.8 followed by Alabama at 50%, New York at 46.5%, New Mexico at 42.2% and Michigan at 41.3%. Of the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured by population, Philadelphia had the highest share of cash sales at 60.7% followed by West Palm Beach-Boca Raton-Delray Beach, Florida at 59.9%, North Port-Sarasota-Bradenton, Florida at 59.5%, Cape Coral-Fort Myers, Florida at 59.3% and Miami-Miami Beach-Kendall, Florida at 58.3%. The data also shows that Colorado Springs had the lowest cash sales share at 16.1%. Continue reading
New homes in UK seen as cramped and of poor quality, new research has found
The UK government has pledged to build hundreds of thousands of much needed new homes but it seems that this is not what home owners want with the majority preferring older properties. People think new homes are too small, characterless and of poor quality with new research finding that just 21% would actually buy a new build and 47% want a home that is 10 years old or older. The survey carried out for the HomeOwners Alliance found that 38% think that a low standard of build quality is the main disadvantage of a new home. A third were put off by the size of rooms and other dislike included the lack of character and smaller gardens. ‘We need more new homes, but they have to be homes that people want to live in, not homes that are quick, easy and cheap for house builders to throw up,’ said Paula Higgins, of the HomeOwners Alliance. ‘What we need to solve the housing crisis are quality homes of character and space, and challenge the housing industry to deliver. After the war, they built homes fit for heroes. All we want is homes fit for home owners. Homes shouldn’t be built just for a quick profit, but to last for generations to come,’ she added. There are however, positive aspects to new homes, the research also found. For example no old pipes on show and no hidden problems. And half of people believe the biggest benefits of a new build were the low maintenance costs and better energy efficiency. Kim Vernau, of BLP insurance, which funded the research, said that there is reasoning behind the perception over quality. ‘With activity in the construction industry on the increase as local authorities and developers attempt to meet the housing shortfall, there is a real risk that building standards will slip,’ said Vernau. ‘Consumers want peace of mind and reassurance that the home they are purchasing is fit for purpose and built to last rather than simply chasing a house-building statistic,’ added Vernau. Official figures show about 120,000 homes were completed last year, an increase on 2013 but still only half the 240,000 experts say are needed to deal with the UK’s chronic housing shortage. The Government has pledged to ease the supply shortage by building 200,000 cut-price starter homes. Prime Minister David Cameron said first time buyers under 40 would be able to buy these houses at a 20% discount to ensure everyone who works hard can have a home of their own. Continue reading
