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UK landlords without cast iron inventory losing out in tenant disputes
Since the start of the tenant deposit schemes in 2007 in the UK more tenants than landlords are continuing to be awarded 100% of the disputed amount at adjudications, new research shows. Data from the Tenant Deposit Scheme Annual Review 2014, shows that over the last eight years, tenants have been awarded 20.25% the whole dispute amount, compared with 18.21% of landlords. Furthermore, the dispute amounts have risen leapt from £736 in 2010 to 2011 to £860 in 2013 to 2014. Cleaning remains the most common cause of dispute, appearing in 53% of all cases, followed by damage in 46% of cases, redecoration in 29%, arrears in 16% and gardening in 14%. Disputes over gardening have seen a steady increase since 2011, up by 3% ‘Despite the best efforts of the deposit schemes, landlords and agents are not being awarded 100% of the deposit as often as tenants. It is worth asking ourselves why landlords have failed to improve their success rate at disputes over the last few years. One obvious reason is the quality and lack of evidence which is presented at adjudications,’ said Jax Kneppers, chief executive officer of Imfuna Let. He believes that many landlords and agents are not conducting an adequate inventory or check-in and check-out and don’t keep copies of correspondence with the tenant, which could be evidence in a dispute. ‘It is so important that landlords and agents have a properly compiled inventory. This will always be much more detailed than a landlord’s own document and will provide vital evidence in any end of tenancy dispute. The tenants should check and sign their agreement detailing the inventory when they check-in,’ Kneppers explained. ‘At the end of the tenancy, the tenant should always be present during the check-out inspection. Tenants should also be made aware of any problems and chargeable issues to their deposit, as this will avoid disputes. Using a deposit scheme dispute service should always be a last resort. The landlord should make every effort to communicate and negotiate with their tenant,’ he added. According to the firm the best way for landlords and agents to protect their property and avoid a dispute, is by ensuring that its condition is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a thorough check-in and check-out report. The firm’s software aims to give landlords and agents a bullet proof inventory that records the property check-in condition status. The software provides a side by side comparison report which clearly demonstrates any change in condition of the property, illustrated with date and time stamped photographs. Users can also print out a deposit dispute report, again saving time, meeting deadlines and ensuring that the tenancy deposit protection adjudicator has the information at their fingertips. Continue reading
UK mortgage brokers report impact of rules change a year ago
A quarter of mortgage brokers in the UK say they have experienced a decrease in volumes since new mortgage rules came into being almost a year ago, a new survey shows. The self-employed and retirees are the most difficult to find a mortgage for and mortgage intermediaries are very much divided on the impact of the Mortgage Market Review (MMR) on business volumes. The research by Paragon Mortgages that covers the first quarter of sought to establish the impact of MMR in terms of intermediaries’ business levels as we reach the one year anniversary of the changes coming into force. Of the 200 intermediaries who took part in the survey, 43% said that in their view there had been no change to their business volumes as a result of MMR and 24% said that business had increased. However, some 25% of those surveyed said they had experienced a decrease and only 3% said there has been no change in business. The majority of intermediaries who said they had experienced a decrease reported this had been up to 30% and only 14% said the decrease in business had been any higher. Looking ahead, 15% of intermediaries said they did not know what the long term impacts of the new regulations would be. Intermediaries were also asked which of their customers are now the most difficult to find a mortgage for. Top of the list were the self-employed at 75%, followed by retired customers at 52% and 51% said it was those customers with complex incomes. ‘The research shows is there is still some uncertainty in the market about the long term impact the MMR changes will have on business volumes. This isn’t unexpected, as with any significant change in regulation there will always be a period of adjustment, but it is important the industry monitors this carefully,’ said John Heron, director of Paragon Mortgages. ‘Looking at the feedback from intermediaries on the underserved areas of the market also provides a valuable insight into what lenders could be doing better. We need to recognise that there is no such thing as the average mortgage customer anymore, people have a greater variety of circumstances and we need to be more innovative in order to meet increasingly varied demand from customers,’ he added. Continue reading
Scottish house prices see biggest monthly jump since 2007
Scottish property prices increased by 1.7% in February, the biggest monthly jump since the 2007 taking the average value to a new record high of £169,742. The latest data from the Your Move Scotland house price index also shows that the annual price growth has now reached 6% and there was a spike in sales of homes worth over £1 million, probably due to the introduction of the new property tax in April. The annual growth is the strongest it has been since August 2010 and Stirling experienced the fastest increase in property values across Scotland during February, with house prices soaring 5.3% while Aberdeen, Edinburgh, East Lothian and Angus all set new house price peaks in February. The index data also shows that overall sales were up 14% month on month but they are still 4% below the same levels seen in February last year. Christine Campbell, regional managing director of Your Move, explained that the monthly growth was much higher than in England and Wales where it was just 0.4% in February. ‘The impressive rise in house prices in February has been influenced by the introduction of the new Land and Buildings Transaction Tax (LBTT) in April, as high end buyers sought to complete expensive purchases under the old stamp duty rates,’ said Campbell. She pointed out that 15 properties priced at £1million or more were sold in Scotland during the month of February, compared to just six the previous month. ‘Tactical tax considerations have helped foster price growth in the Scottish housing market, and are likely to play a significant role in the months to come too,’ she said. ‘Now that the LBTT has come into force, we expect to see a temporary drop-off in the number of properties sold above £750,000, now liable for the top rate of tax, similar to the impact we’re currently seeing in London among £2 million properties in light of December’s stamp duty changes,’ Campbell added. She also pointed out that typically in the housing market cycle home sales ease back in February, in the aftermath of the costly Christmas period but this February moved against the seasonal grain, with completed home sales up 14% on January levels. A breakdown of the figures shows that over the past three months, completed home sales have fallen in every local authority area of Scotland on an annual basis, with Midlothian seeing the sharpest 31% drop. ‘However these year on year benchmarks have been artificially propped up following the extraordinary headway in sales activity over 2014, and as well as having to recalibrate onto a steadier course, the housing market this year also has an upcoming general election to contend with,’ said Campbell, who added that the slowdown in Scottish sales activity is being mirrored south of the border, as all across the UK political uncertainty is infusing home buyers with a new hesitancy. ‘But as soon as there is a… Continue reading
