News
Most tenants fail to get all of their deposit back, new survey finds
The majority of people who’ve rented a property in the UK in the past five years have failed to get their full deposit back after vacating, new research has found. Some 52% of deposits were fully or partially withheld over the past five years, equivalent to more than 400,000 deposits per year and overall 80% of tenants had some degree of trouble getting their deposit back. The survey by London removals company Kiwi Movers also found that cleaning and minor repairs are the most common reasons for withheld deposits, however, 28% of respondents said their landlord delayed returning their deposit despite not making any deductions. Of those who said they experienced difficulties with their landlord when it came to the return of the deposit, 6% lost their entire deposit, the equivalent to 252,000 deposits being fully withheld over the past five years, and 46% lost part of their deposit. Some 20% said they got their full deposit back without any problems while 28% said they managed to get their deposit back in full only after a dispute with the landlord or letting agency. London is the deposit dispute hotspot, with residents in the capital almost twice as likely (11%) as the survey average (6%) to lose their whole deposit, while tenants aged between 18 and 24 living with friends, as opposed to living with a partner or spouse, living alone or with people they didn’t know prior to moving in, are most likely to lose their full deposit. ‘We've seen an increase in customers hiring professional cleaners before checking out of a rented property. It seems to be the only way to counter what they see as the inevitable attempts to withhold part of their deposit,’ said Kiwi Movers director Regan McMillan. ‘Our customers tell us they feel vulnerable unless they have paperwork to prove that they left the property in an acceptable state. Moving is stressful enough without having to worry about having your deposit unfairly withheld,’ he added. Amy Williams, a digital producer from Southampton took her London landlord to court and won after he withheld her deposit. ‘It was only a six month contract and the landlord tried to make us pay for problems that were in the flat when we moved in,’ she explained. ‘The court said it was wear and tear, ordered the landlord to return our deposit and told him that wear and tear was something he’d have to get used to. The landlord also choose to hold the court session not in London but on the south coast. But luckily because we won he had to pay for our train tickets too,’ she added. Daniel Zambas, a Manchester based musician, also took successful legal action against a former landlord. ‘The agent told us the landlord wasn’t going to return our deposit. We successfully challenged this and once we’d had our money… Continue reading
Christchurch housing market getting back to normal four years after earthquake
There has been a strong recovery in Christchurch’s residential housing market since the earthquakes in 2010 and 2011, according to the New Zealand government. Building and Housing Minister Nick Smith said that planning, median house price and average weekly rent data shows that supply and demand are getting back into balance since 10,500 homes were affected. Building consent data shows 1,134 new home building consents were issued in the year to February 2012, 1,509 to 2013, 2,818 to 2014, and 4,433 to 2015, totalling 9,894 homes. Median house prices increased from $320,000 in March 2012 to $359,000 in March 2013, a rise of 12% and to $401,000 in March 2014, another 12% rise, and to $415,000 in March this year, an increase of 3%. Average weekly rents in Christchurch increased from $344 in March 2012 to $378 in March 2013, a 10% rise, to $418 in March 2014, an 11% increase, to $418 in March this year, no increase. The Christchurch Housing Accord was developed in 2014 between the new council and the Government to complement the broad programme of work on Christchurch’s housing recovery, and to ensure stronger coordination between council and Government. The Government has initiated 10 different interventions and committed hundreds of millions of dollars to Christchurch’s post-earthquake housing recovery. These have included the provision of four temporary accommodation villages, additional support for emergency housing and Christchurch Housing Fund for joint housing developments between council and Government. Smith said that he is satisfied with the progress we have made in increasing the supply of new housing, but less satisfied that sufficient homes are being built in the more affordable range. ‘I am concerned at how difficult it is for first home buyers to get into the more expensive, post-earthquake housing market,’ he added. Smith hopes that the new KiwiSaver HomeStart package, which came into effect 01 April, will help the housing development sector to build more affordable homes. It includes grants of up to $20,000 for 12,000 first home buyers in Canterbury over the next five years for homes under $450,000. ‘The HomeStart scheme has been specifically tailored to the Christchurch recovery by allowing second chance first home buyers to be eligible, so that it will assist people who may not have been insured, or through other difficult circumstances, find themselves in a similar situation to a young person buying a first home,’ he explained. ‘The Christchurch housing market will be transitioning over the next two years to more normal market conditions. We will be reviewing the earthquake specific assistance packages as the market returns to normal, as well as ensuring that the momentum of the recovery continues,’ he added. Continue reading
UK mortgage seekers set to change spending to deal with tougher lending rules
A fifth of mortgage borrowers in the UK will use cash more frequently to avoid lenders seeing exactly what items they are spending on due to tougher lending regulations brought in a year ago. Some 25% plan to rein in their spending by £159 a month in a bid to present themselves as sensible with money and a fifth plan to spend on credit cards to maintain a healthier balance in their current accounts and pay off the balance each month. The research by comparison site MoneySuperMarket shows that 20% of those looking to apply for a mortgage in the next three years are planning to use cash more frequently to hide exactly what they spend their money on from a prospective lender. Some 21% will pay for more items on their credit card and then clear the balance at the end of each month so they can maintain a healthier balance in their current account. Spend-conscious borrowers also plan to rein in their monthly spend by an average of £159 by cutting back on non-essential items so as not to appear frivolous with their money. And 29% intend to pay off all debts in the lead up to their mortgage application. However, some 8% had never even heard of the new mortgage market review rules. ‘Since the new mortgage lending rules came into play a year ago, those looking to remortgage, existing borrowers who are moving home and looking for a new deal and first time buyers will have been subject to their lender looking more closely, almost forensically, at their monthly outgoings,’ said Kevin Mountford, head of banking at the site. ‘While the rules were introduced for the right reasons, in some cases borrowers who can easily afford a mortgage are being turned down for arbitrary reasons, despite them being able to easily afford mortgage repayments,’ he pointed out. ‘We wouldn’t want to see the ease of approval going back to the pre-credit crunch levels, it is clear than some consumers have changed their spending habits in order to pass the tests, so may be trying to paint a picture that is far from the reality just to satisfy the requirements,’ he added. He explained that paying off debts is always a good way to start when it comes to applying for a mortgage as existing borrowing will be taken into account by a lender when it comes to your application. Reducing the amount you spend each month could also help when it comes to the amount a lender thinks you can afford to borrow. ‘But those trying to ‘play’ the system should exercise caution as lenders may still require you to prove where your cash goes. Using a credit card to hide your spending may also count against you as lenders have access to your credit report, so will be able to see a real-time snapshot of your credit card balance at any time within the month,’ Mountford added. ‘Research… Continue reading
