Tag Archives: crisis
Investigation claims property redress scheme not working in London
Local authorities in London are failing to do their job stamping out rogue letting agents, according to a new investigation. Since the beginning of October letting agents and property managers have had to sign up to one of three government approved ombudsman or redress schemes. But an investigation by television channel London Live says it has found failings in the legislation which shows in its current state it just isn’t working. It also suggests that Londoners are unaware they now have more powers to hold rogue agents to account if they are ripped off. If a tenant is unhappy with the way they’re treated by an agent they can go to one of these schemes to complain. If an agent refuses to comply with decisions made by these schemes, they face fines and could be banned from trading, giving the ombudsman the legal teeth they previously lacked. It's now illegal for any agent to operate without registering with a government approved ombudsman to avoid tenants paying excess fees, having their deposits withheld, or being in fear of revenge evictions. London Live asked every local authority in London if they are enforcing this, and their response ranged from Havering admitting they're not keeping track and waiting for tenants to report rogue agents, to Merton and Richmond saying it's only when they are made aware that they seek compliance. It found that Kensington and Chelsea think the law is still going through the courts so it's not clear to them which department has to deal with this. Newham is the only local authority actively taking action. They’ve issued £5,000 fines to nine letting agents who have refused to register. London renter Alex Parsons says is long overdue. ‘Just as I was about to move into a property in Waltham Forest my flat mates and I were told to pay £300 on top of the £200 I already had to pay in admin fees,’ he explained. According to Rosie Walker from Renters Rights London the scheme isn’t working at the moment as tenants are worried that if they complain they could end up without a home. ‘The redress scheme is the final tier of the complaint process, what should be happening is that the agent should be dealing with the complaints directly with the tenant and the landlord to resolve it (the problem),’ said Sean Hooker, head of Ombudsman the Property Redress Scheme. All three redress scheme operators revealed that they haven’t received a single complaint from a London tenant or landlord because not enough is being done to let people know about their new legal powers. Continue reading
UK house prices to rise between 3% and 5% next year, it is predicted
A further moderation in house price growth in the UK is likely next year and house prices nationally are expected to increase in a range of 3% to 5% in 2015. The prospect of higher interest rates at some point in the year and the deterioration in affordability over the past year are expected to be key factors curbing housing demand, according to the latest house price inflation report from the Halifax. But housing demand should be supported by solid economic growth, higher employment, still low mortgage rates and the first gain in ‘real’ earnings for several years, the report suggests. Halifax said it expects to see a more even regional pattern in house price growth during 2015. Global economic worries could reduce demand and activity at the top end of the London market in 2015. Further ahead, price growth is expected to rise broadly in line with income growth, as rising interest rates increase the affordability constraint on the market. Higher levels of house building should also limit upward house price pressure. ‘The fortunes of the housing market are closely tied to developments in the wider economy. The strengthening in the UK economy has contributed to higher housing demand over the past 18 to 24 months. There has been an increase in the number of buyers, fuelled by rising confidence and the improved cost and availability of credit. Higher demand, however, has not been matched by an increase in the number of sellers in the market, resulting in strong upward pressure on house prices in some parts of the UK,’ said Halifax’s housing economist, Martin Ellis. ‘The deterioration in housing affordability as a result of higher house prices, earnings growth that has been consistently below consumer price inflation until very recently and increased talk of an interest rate rise, appear to have combined to temper housing demand since the summer. Tighter mortgage rules may also have acted as a brake on activity. The weakening in housing demand has led to a modest easing in both price growth and sales,’ he explained. He pointed out that house prices in the three months to October were 0.8% higher than in the preceding three months. This was the third consecutive decline in the quarterly rate of increase and the smallest rise since December 2012. Annual price growth in the three months to October slowed to 8.8% from 9.6% in September. Activity has also declined with mortgage approvals in September falling for the third successive month to a 14 month low, whilst home sales are at their lowest level since October 2013. ‘There has been a slight easing in economic momentum during the second half of 2014, mainly reflecting global economic developments, particularly the slowdown in the euro zone. Despite slowing moderately, the pace of growth remains robust. Moreover, the UK economy has moved from a period of prolonged stagnation to growth at, or above, its long run trend over the past 18 months or so. Overall, UK economic activity is… Continue reading
New build completions in Scotland at their highest level in over three years
The number of new homes being built in Scotland is at its highest level for over three years, new official figures have shown. Across all sectors, 4,583 homes were completed in April to June this year, the highest quarterly figure since 2010, and 29% higher than in the same quarter last year. The latest completion figures also bring the Scottish Government closer to its target of delivering 20,000 homes for social rent by March 2016, with 80% of homes completed. ‘I welcome the fact that the number of new homes built across all sectors is at its highest level for over three years, and I am particularly pleased that we are nearing our target of delivering 20,000 homes for social rent by March 2016,’ said Housing Minister Margaret Burgess. ‘The Scottish Government’s investment in affordable housing, together with measures to support the industry and help people into home ownership, have undoubtedly helped to stimulate housing supply,’ she pointed out. ‘Making sure everyone in Scotland has access to good quality housing is a vital part of the Scottish Government’s drive to secure economic growth, promote social justice, strengthen communities and tackle inequality,’ she added. She explained that the government has delivered over 4,500 new council houses since 2009 and has acted to preserve Scotland’s social housing stock by abolishing the Right to Buy from 01 August 2016, which will protect up to 15,500 social houses from sale and safeguard social housing for future generations. ‘In addition, the supply of affordable housing continues to be a high priority for us, and we are now three quarters of the way towards our target of 30,000 affordable homes by March 2016. This commitment is underlined by our £1.7 billion investment in affordable housing over the current parliamentary term, which supports an estimated 8,000 jobs each year,’ Burgess added. Continue reading
