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NLA reminds UK landlords about upcoming immigration checks
The National Landlords Association is reminding UK landlords about the importance of conducting tenant checks shortly before new legislation will require them to check the immigration status of every new tenant. As of the 01 December 2014 landlords in the West Midlands where a pilot scheme is being introduced, will be responsible for carrying out ‘right to rent’ checks in order to identify if a potential tenant has the right to reside in the UK, before they grant a tenancy. If the checks are not carried out landlords could face a fine of up to £3,000. The new rules, set out in the Immigration Act, will be rolled out around the rest of the UK in 2015. The NLA recommends that landlords always check potential tenants thoroughly in order to reduce the risk of letting to unreliable tenants and minimise the risk of rent arrears. Services such as the NLA Tenant Check give landlords the ability to vet their tenants and be confident it has been done to a professional standard. ‘In some areas as early as this December, the Immigration Act will place a legal responsibility on landlords to help prevent illegal immigrants from accessing private rented accommodation,’ said NLA chairman Carolyn Uphill. ‘It has always been best practice to conduct a thorough check on prospective tenants, but if landlords don’t do their due diligence on tenants they could be in line for a hefty penalty,’ she explained. ‘The NLA exists to support all landlords to make a success of their lettings business and to ensure they comply with the law,’ she pointed out and added that to see how the NLA can help with this forthcoming requirement landlords can go online to the NLA Tenant Check website. Meanwhile, Harrison Murray Lettings (HM Lettings), the lettings arm of the Nottingham Building Society, said it aims to lead the way in ensuring all potential tenants are eligible to live in the UK. ‘We want to safeguard and support the rights of both landlord and tenant whilst ensuring we are operating in line with the latest legislation,’ said Group Lettings controller Paul Offley. The Home Office has not yet issued specific instructions but it is likely that British passport holders will only need to show their current passport and those without passports will have to produce alternative documents including birth or adoption certificate in combination with a National Insurance number, driving licence, naturalisation certificate or a right of abode certificate. Citizens of the 27 member countries of the European Union plus Iceland, Lichtenstein, Norway and Switzerland, are expected to show as evidence a passport and national identity card or evidence of receipt of UK benefits. People from other countries should have a Biometric Residence Permit which clearly states the time limit on their stay but foreign visitors staying for less than six months cannot obtain a Biometric Residence Permit and would need to show a passport containing a UK immigration stamp with a time limit that is still valid. Continue reading
Quarterly prime country house price growth slows
Concerns over the introduction of a mansion tax, an impending interest rate rise and tighter mortgage lending in the UK has meant that quarterly price growth in the country house market slowed to its lowest level in almost two years. Between June and September prime property values increased by just 0.3% in the third quarter of 2014 while annual growth also slowed, to 4.7%, according to the latest data from Knight Frank. Despite these concerns, there hasn’t been a noticeable impact on sales volumes and the total number of exchanges completed so far this year was 8.4% higher than the corresponding period last year. The rising number of exchanges suggests that underlying demand has remained strong, says the report. However, there are signs that this momentum is easing. While the number of property viewings was fairly steady during the three months to the end of September compared to the same period last year, the number of prospective buyers registering their interest in buying a prime country home fell by 9%. The report points out that anecdotal evidence would suggest that concerns surrounding the possible introduction of a mansion tax on properties worth more than £2 million after next May’s general election are becoming more widespread among both prospective buyers and vendors. ‘Any further property tax would come on top of the large contribution purchasers of high value property already make in the form of stamp duty. Data for the 2013/2014 tax year shows that across England and Wales over £1 billion of stamp duty revenue, of the total £6.4 billion annual tax take, was collected from the £2 million plus price bracket alone,’ says the report. Price growth over the last quarter was strongest in the South West, at 1%, followed by Yorkshire and the Humber. On an annual basis, prime homes in these areas have risen by 7.7% and 5.1% respectively. ‘Prime town and city markets across the UK have benefited from rising demand from those relocating from London and downsizers and price changes in urban locations have reflected this. Growth of 1.3% was seen in the three months to the end of September, while annual growth totalled 8.9%,’ the report adds. Continue reading
US residential property price growth moderates for eleventh month in a row
Residential real estate prices saw moderating price growth for an eleventh month in a row, according to the latest figures from property data provider Clear Capital. Nationally, yearly gains decreased from a high of 11.7% in October 2013 to just 7.8% through September 2014. This trend is amplified in the West, where annual gains are cut nearly in half, from highs of 19.5% in October 2013 to 10.9% in September 2014. The firm said that if the ongoing moderation in the West, still the recovery leader, continues at its current pace it will be a foreboding sign of future declines but added that metro market trends will continue to keep buyers on their toes, as national and regional recoveries wane at varying velocities. For example, in Detroit discounted opportunities helped push prices up 21.9% year on year in September. Meanwhile the Hartford MSA saw declines of 1.1% over the quarter and 0.4% over the year, highlighting the type of market performance disparity that characterises the present market. The data also shows that each of the lowest performing 15 markets posted less than a 1% gain over the last quarter. This group remains subject to short term declines which could eventually turn into yearly losses. The report also shows that discounted distressed deals continue to dry up, down from a national high of 38.4% in 2011 to just 16.5% in September 2014. While this is generally a positive sign, Clear Capital points out that distressed sales helped drive the investor demand that kick started the recovery. ‘Historically, we’ve observed rising prices as distressed saturation declined. While reduction of distressed saturation is a healthy move for markets long term, over the short term it removes a key demand segment at a time when full buyer momentum has yet to be established,’ the report explains. It adds that the correlation between drastic declines in price gains and declines in distressed saturation is most visible in the West. Distressed saturation was at an all-time high of 50.5% in 2009 falling to just 12.6% in September 2014. As distressed saturation fell, so did price gains. Yearly price gains in the West have fallen to 10.9%. This nearly 50% drop in price gains since October 2013 is in sync with declines in distressed saturation. Clear Capital also says that future home price gains are more dependent on owner occupied purchases as the rising price floor and dwindling discounted deals leave investors with fewer opportunities and owner occupied demand is in part driven by consumer sentiment, among other key drivers, like jobs. While consumer sentiment levels reached a 14 month high in September, according to the University of Michigan's Consumer Sentiment index, momentum has tempered like home prices. Consumer sentiment yearly growth rates have softened 7% over the last seven months. Each of the last two times consumer sentiment rates have seen negative yearly changes, prices have declined. As housing seeks stability, moderating rates of consumer confidence and price gains foreshadow a third potential dip. ‘Heading into… Continue reading
