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Legal firm gives lowdown on new energy standards for UK landlords
Residential landlords in the UK are at risk of financial penalties and being unable to let their properties if they fail to meet minimum energy efficiency standards (MEES) that come into play in 2018, it is claimed. Law firm Maples Teesdale has warned that the new standards equate to a ticking time bomb that could have a detrimental impact on rental income and property values if left unaddressed. The non-domestic minimum energy efficiency regulations for England and Wales will mean that by 01 April 2018, all relevant properties will have to be improved to a minimum energy efficiency standard before being let to tenants, except where certain exemptions apply. Additional Tenant’s Energy Efficiency Improvement Regulations must be in force by 01 April 2016 and will empower tenants to request consent for energy efficiency measures that may not unreasonably be refused by the landlord. ‘These regulations are likely to have a big impact on the private rented sector. They are presenting a straightforward ultimatum: bring your properties up to scratch in terms of energy efficiency, or risk losing income,’ said Neil Sagoo, partner at Maples Teesdale. The consequences for landlords who do not invest in bringing their properties up to minimum standards are likely to be severe, the firm warns. There will be financial penalties, possibly geared to the rent earned while the landlord is in breach, applied to those who fail to comply and, in extreme cases, a tribunal can force landlords to make the necessary changes. ‘This means that landlords can no longer pay lip service to energy efficiency. Whereas it was once a worthy aspiration, it is becoming is fundamental as fire safety or building regulations and is to be ignored at your peril,’ added Sagoo. Following a brief consultation at the end of last year, the Government has indicated that it aims to have the regulations in place ahead of the May general election. Implementation of MEES is likely to follow in stages, coming into effect on all new lettings from April 2018 and for remaining existing lettings from April 2023. Continue reading
UK home sales steady, seasonally adjusted figures show
Sales of residential property in the UK remained steady at the end of 2014, with seasonally adjusted transaction levels in December around the same level as November. The HMRC statistics also show that sales in December 2014 were 0.4% lower compared with the same month in 2013 and on a non-seasonally adjusted basis, residential property transactions increased 2.3% year on year. Peter Rollings, chief executive officer of Marsh & Parsons, pointed out that while other housing market indicators started to flounder towards the end of 2014, sales held steady. ‘The additional pressure of loan to income caps and stricter affordability regulations has slowed mortgage lending somewhat, but consumer confidence hasn’t slipped and the Stamp Duty overhaul is injecting a new lease of life into demand in the New Year,’ he explained. ‘House price growth was fading in the final few months of the year, as increased supply of housing stock relaxed the competition on the market and gave buyers a breather. Demand continues to be healthy, and combined with rock-bottom interest rates and attractive mortgage products, activity will pulse through the market and push forward further price rises According to Danny Waters, chief executive officer of Enterprise Finance, while December is traditionally a quiet time of year for residential property transactions, the non-residential market isn’t bound by the same conventions and saw an uptick at the end of 2014. ‘Whereas home seekers don’t want the upheaval of completing and moving around Christmas time, businesses often don’t have the same luxury of placing plans on the back burner and have to act more decisively,’ he pointed out. ‘These latest figures and the year on year improvement suggest a non-residential market headed in the right direction, but commercial mortgages can still be harder to obtain than residential home loans if buyers don’t look in the right places,’ he explained. ‘Indifferent attitudes from high street banks mean non-residential purchasers are often better served by specialist lenders and brokers are well positioned to help introduce the two,’ he added. Continue reading
Outlook positive for Scottish property sales and lets in 2015
The outlook for the Scottish property market is optimistic for 2015, following a successful year in 2014 with encouraging levels of activity throughout the country and a return to some competitive bidding. There was a 24% increase in the number of sales in the final quarter of 2014 compared to the third quarter. As well as the improvement in sales figures, there was also a 23% increase in the number of viewings against 2013’s figures for the final quarter, according to data from independent property consultancy CKD Galbraith. Throughout 2014, CKD Galbraith handled property in excess of £375million covering property throughout the whole of Scotland. Prices achieved for all properties sold by the firm during 2014 were, on average 1.54% over the asking price. According to the firm Edinburgh has been one of the year’s successful markets despite a slowdown due to the independence referendum vote in September 2014. In the fourth quarter of the year property sales and registration figures in Edinburgh continued to grow on the previous quarter’s figures according to new research conducted by the firm’s office in the capital city. Overall the number of properties sold through CKD Galbraith increased by 50% from the third to fourth quarter and the number of interested buyers registering with the firm rose by 51% compared to the last quarter as well. Average house prices in Edinburgh have also seen a significant increase rising from £253,000 in the third quarter to £340,000 in the final three months of 2014. The research also shows that 34% of buyers were local, 50% were national and 16% were international buyers ‘The fourth quarter saw a return to high sale numbers and a desire to get transactions finalised before the 01 April when the changes to stamp duty occur. The Edinburgh market has also seen a return of buyers from down south and abroad since the uncertainty of September’s referendum disappeared,’ said Jennifer Campbell of CKD Galbraith’s Edinburgh office. ‘Demand continues to outstrip supply across Edinburgh. The south side also remains extremely popular for its proximity to good schools. We expect sales figures to keep increasing throughout the first quarter of 2015 and not to show signs of slowing down until the general elections in May,’ she added. In the Aberdeen office there was a 33% rise in sales compared to the third quarter of 2014 and the supply of high quality properties in the region has risen by 23% compared to the last quarter. Also, the number of viewings has increased by 15% in the last quarter compared to quarter three. 'Property prices continued to rise in the region and buyers were serious about purchasing accurately priced homes. Although we envisage a plateauing in prices over the next year we do expect interest and offers to keep increasing as the city and surrounding areas grow in popularity,' said Jordan MacKay, head of residential for… Continue reading
