Tag Archives: finance
Half of landlords in England unaware of start date for right to rent rules change
Half of UK landlords are not prepared for the Right to Rent legislation set to come into force on 01 February with some thinking they had another two years to wait. Indeed some 20% believed that they had until April 2017 to prepare for the changes, while 3% believed they had until 2018 to get ready, the research from online estate agent Urban shows. The new legislation, already implemented in the West Midlands, will soon require all landlords and agents in England to check a tenant’s immigration status or ‘right to rent’ in the UK. A failure to prepare could leave landlords at serious financial risk, with potential fines of £3,000 if they do not comply. The survey report also found that only 10% of landlords provide the correct information to tenants at the start of a lease and 90% were unable to identify the characteristics of a House in Multiple Occupancy (HMO). Some 16% were putting themselves at serious financial risk by failing to provide a valid contact address on tenancy agreements; an action which could see contracts being deemed as null and void. One reason to explain the lack of industry knowledge could be due to the rise in accidental landlords who rent property due to circumstance beyond their control such as having inherited property, according to the firm. ‘There has been an influx of new legislation relating to the rental market made in recent years and we know that UK landlords are struggling to keep on top of these changes. Despite knowing many of the basics, many find it difficult to navigate the minefield of changing renting rights and wrongs and this is particularly so for accidental landlords,’ said Adam Male, Urban cofounder. However, despite a lack of understanding in some areas, reassuringly, the majority of landlords were abreast of most other rental fundamentals. For instance, 77% were aware of the need for an up to date Energy Performance Certificate (EPC) and 95% of landlords correctly identified their gas safety responsibilities, 76% also knew the need for a smoke alarm on every floor and 7% even put one in every room. The Landlord Knowledge League Table, a map which ranks the most knowledgeable regions in the UK according to the survey results, found that the most knowledgeable landlords let property in Southampton, while those in Newcastle-under-Lyme were unaware of many key landlord responsibilities. ‘It is great to hear that knowledge about things such as gas safety is a widely understood and implemented landlord legislation, however, there is still a long way to go in educating landlords about the varying aspects of renting,’ said Male. ‘New regulations such as the Right to Rent have the potential to stop back door lettings and create a better environment for all, however, this will only happen if the scheme is communicated to landlords properly. We as an organisation want to do our bit to clean up the industry and help landlords protect… Continue reading
Quarter of UK buyers would consider a home on a flood plain despite recent floods
With the UK again being hit by bad floods this winter new research has found that a quarter of buyers would consider properties on known flood plains. The research from HouseSimple also found that of those who would buy on a flood plain some 65% would want a price discount of at least 21%. The poll asked respondents whether they would buy a home next to one of 17 undesirable locations including a prison, rubbish tip, busy school and electricity pylons. Just 16% said they would buy near or next to a rubbish tip. And of those who would 37% said they would seek a discount of at least 31% on the typical asking price of a property in that area. Some 48% of buyers would consider a property on a busy flight path and 36% would consider a property near a cliff susceptible to erosion. Of those who would, half would expect at least a 31% reduction in the asking price. Blights that buyers were less concerned about included, wind turbines or solar panels, next to or near a school and above a restaurant or take away. ‘We have all seen in vivid detail just how devastating the floods have been over the past month. Flooding seems to becoming a more regular occurrence, and prospective buyers are likely to be more aware of the risks associated with buying a property on a flood plain than maybe they have been in the past,’ said Alex Gosling, the firm’s chief executive officer. ‘Home owners looking to sell a property on a known flood plain may well need to be willing to discount hard if they want to secure a quick sale and it is no surprise that living next to a rubbish tip came out at the bottom of the heap,’ he pointed out. ‘No-one necessarily wants to live next door to a rubbish tip or under a busy flight path, but sometimes budget constraints mean that might be the only option, particularly if you want to buy your dream property or you’re a first time buyer,’ he explained. ‘If you are buying a property that is in an undesirable location, make sure you do your research. The last thing you want to do is buy something that you regret buying soon after and then struggle to sell. Saying that, at the right price, you could get far more for your money than you would a few streets away, if you’re willing to compromise on the undesirability of the location,’ he added. Continue reading
Prime property prices in UK set to vary in 2016 according to location
The rate of overall house price growth in the UK prime property market is expected to continue at much the same pace in 2016 as in 2015, with the regional variations remaining too. Average UK house prices rose 4.5% in 2015, according to the latest residential market update from real estate firm Knight Frank. Average values in prime central London rose by 1% last year on average, but the rate of growth varied across the capital while prime country house prices rose by 3.1% in 2015. The report says that the Bank of England’s decision to keep interest rates on hold in January, coupled with the continued fall in oil prices has prompted some economists to push back the date on which the first UK rate rise is expected to 2017. ‘A longer period of low mortgage rates, alongside firmer wage growth and a continued lack of new and second-hand housing stock, should continue to underpin overall pricing during 2016. Activity has been gradually picking up in recent years, but this trend is likely to be hampered by the continued lack of supply of homes coming to the market across the country,’ said Grainne Gilmore, head of residential research at Knight Frank. She also pointed out that the Government has announced a raft of new policies to boost the supply of housing, a recognition that housing is now one of the key areas of focus for the electorate. A breakdown of the figures in the report show that in prime central London the biggest rise in prices has been in Islington with growth of 6.4%, followed by City and Fringe at 5.7%, Marylebone at 4.7%, Mayfair at 3%, and Kensington at 2.5%. In St John’s Woods prices were unchanged and south of the river Southbank saw prices rise by 1.7% and Riverside growth of 4% but elsewhere prices fell, most notably a decline of 6.1% in Knightsbridge. Prices were down 3.8% in Notting Hill, by 3.7% in South Kensington, by 2.7% in Chelsea, by 1.8% in Hyde Park and by 0.2% Belgravia. Average rents across the country rose by 2.7% in the year to September, with the strongest rental growth across Greater London at 4.1% but rental growth in prime central London eased in the second half of last year, and now stands at 0.7%. This comes after prime central London rents peaked at 4.2% growth in May. ‘This market is quite seasonal, and closely linked to the financial services sector. As a result, rents have been affected by restructuring plans announced by major European banks,’ explained Gilmore. Prime rents increased by 2.7% in the South East and the East of England, by 2.1% in the East Midlands, by 1.9% in the West Midlands, by 1.8% in the South West, by 1.6% in Scotland, by 0.9% in Yorkshire and the Humber, by 0.7% in the North West and by 0.5% in Wales and the North East. The report points out that certain sections… Continue reading
