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NLA warns students against scam landlords at start of UK university year
As students gear up for the start of the university year in the UK, the National Landlords Association (NLA) is reminding would be tenants to be vigilant when looking for somewhere new to live and to avoid getting scammed. The NLA receive complaints from tenants every year about fraudsters who operate online and the warning comes as many tenants scramble for available properties as the new academic year is about to begin. Such scams trick people into paying an advance fee to rent a property and in some instances fraudsters use NLA branding or fake letters from NLA local representatives in order to add legitimacy to the scam and lure their victims in to a false sense of security. Scammers often target those who are coming from abroad and are securing property online, particularly those looking for university accommodation. Typically once money has been sent the ‘landlord’ becomes un-contactable leaving the potential tenant defrauded. The NLA is reissuing guidance about avoiding online rental fraud which was drafted in conjunction with the National Union of Students and the National Crime Agency. They advise against sending money up front to anyone advertising online and to make sure they are genuine first and view the property if you can and also beware if you are asked to wire any money via a money transfer service, criminals can use details from the receipt to withdraw money from another location. Tenants are also advised to use government approved deposit schemes such as my|deposits and to contact the organisations the landlord claims to be associated with in order to verify their status. Tenants wanting to check whether a prospective landlord is a member of the NLA or accredited should ask them for their membership number, then go to: www.landlords.org.uk/member-verification . Overseas applicants needing to secure accommodation before they arrive in the UK should first seek the help of the employer or university they are coming to. Everyone should get paperwork and proof by asking for a copy of the tenancy agreement or safety certificates to confirm that the landlord has a genuine legal connection with property. ‘Rental fraud is one of the uglier aspects of private renting and it tends to rear its head this time of year as students, particularly those coming from abroad, look to secure rented accommodation for the academic year,’ said Carolyn Uphill, NLA chairman. ‘Tenants, no matter where they are from, should not send payment to advertisers before they are certain it is genuine and should contact their university who will have a list of reputable landlords and letting agents,’ she explained. ‘If you receive official correspondence from a landlord and are worried it might be a scam, often a good clue is that it will be written in poor English. Tenants should also remember they can check if a landlord is an NLA member,’ she pointed out. She added that any tenant that falls victim to such a scam should contact the relevant authorities in their… Continue reading
Older home owners in UK still planning to move, new research shows variety of reasons
Many home owners in the UK over the age of 55 are not intending to stay put with 37% planning at least one more move, new research has found. Indeed, overall they are planning more than three million future property purchases worth a total of more than £775 billion, the data from insurance firm Prudential shows. However, contrary to some predictions, this does not seem to signal an explosion in property deals fuelled directly by the new pension freedoms. Only 14% say their plans have come about as a result of the pension rule changes and just one in 10 think the changes make them more likely to buy a property in the future. The research results show that investing in property is something that remains popular with the over 55s with 18% of those planning a property deal say they will not be buying a home to live in, but will be buying second homes, buy to let properties, development properties or homes for their relatives. Prudential’s research also reveals the scale of the property deals being considered by the over 55s. The average maximum purchase price for their next property is over £250,000 while 20% say they are willing to spend £350,000 or more. Some 83% who are planning a property deal, say that their planned purchase is likely to be their last. However, not all of the older property dealers will be last time buyers as 11% say they will probably buy again in the future. ‘There was a lot of speculation that the pension freedoms would spark a rush of over 55s investing in buy to let property as a means of generating income in retirement. However our research suggests that this hasn’t yet been the case,’ said Stan Russell, retirement expert at Prudential. ‘In fact the process of withdrawing cash from a pension fund to purchase property and potentially generate an income is complex and could result in a large tax bill. Anyone aged 50 or over with a defined contribution pension is entitled to free and impartial guidance from the Government’s Pension Wise service, and many of those considering accessing their retirement savings under the new freedoms would benefit from a consultation with a financial adviser,’ he explained. The results of Prudential’s research also show that the biggest motivation for over 55s planning a property deal is to downsize with 43% giving this as a reason. ‘Using money raised from a property sale could prove to be a helpful boost to retirement income for some. But it’s no substitute for starting to save as early as possible to prepare for eventual retirement,’ said Russell. There is an almost equal split between those who expect to buy a property that’s more expensive than their current home, and those who plan to buy a cheaper property and bank some cash. Around 29% expect to spend more on their next property while 27% say they’ll spend less. The research shows… Continue reading
Homes in good school areas in UK command over £30,000 more
Parents in parts of the UK are willing to pay a premium of £32,000 premiums to move to a property within a desirable school catchment area, new research has found. Almost a third of these parents had to change jobs in order to get their children into the desired school and one in four were forced to ditch their dream home and downsize, according to the study from Santander Mortgages. Overall some 26% of parents with children of a school age have either bought or rented a new property in order to secure an address within their desired school catchment area and paid on average an 18% premium or £32,127 to do so. Some 31% admitted that as a result they ended up moving to an area they did not like, a further 26% said they overstretched themselves, paying more for the property than they could realistically afford and 33% moved to a location that was far away from family or friends. However, the study suggests that the moves made by many of these families are only temporary, with just 22% planning to continue living in the area. Some 45% of those who moved to be within a particular catchment area said they had, or would, move straight back out once their child had secured a place, whilst a further 30% planned to wait until their child finished school. Amongst families who have moved to be within their desired catchment area, 40% said they had sold their previous property and purchased a new one within their chosen area, 41% said they purchased a second home in the catchment area, while 20% secured their desired address by renting a property. This trend looks set to continue as 61% of parents who expect to move home before their children leave school, said that catchment areas will have an impact on where they choose to live. A regional breakdown shows that there are significant variations in the overall proportion of parents moving to be within a catchment area and also in their decision as to whether they buy, rent or look to secure a second property. Overall the North East and London see the highest proportion of parents moving to secure an address within a specific catchment area at 46% whilst Wales has the lowest at 11%. The average premium paid by parents for a property in their desired school catchment area ranges from 8% in Yorkshire and Humberside, to 21% in Scotland and the North East. As a result of higher property prices, London has the highest value premium at £77,113 or 16%. Younger parents are the most likely to purchase or rent a new property to be within a certain catchment area with 46% of those aged 18 to 34 having done so, compared to just 18% of 35 to 54 year-olds. The age of the child also appears to have an impact as 33% of parents who have children aged between four… Continue reading
