Tag Archives: london
British landlords urged to check tenancy deposits ahead of June deadline
Landlords in the UK have until later in June to comply with new legislation on tenancy deposits which clears up confusion created by a loophole in the law. Tenancy Deposit Protection schemes have been in place since 06 April 2007 but a court ruling said that any tenancy which began before that date but was renewed or became a statutory periodic after that date was deemed to be a new tenancy and therefore the deposit had to be re-protected. This created confusion as legally deposits that had been correctly protected suddenly became unlawful. This has now been addressed by the Deregulation Act 2015 which came into force in March requiring all landlords to comply by 23 June so that all tenancies are protected under one of the government authorised schemes. For deposits taken before the 06 April 2007 and where the tenancy became periodic prior to this date, landlords and agents aren’t required to protect the deposit however, they won’t be able to serve a section 21 notice to regain possession of the property unless the deposit is protected with a tenancy deposit scheme. The Association of Residential Agents (ARLA) is urging all landlords to check that they comply with the regulations before the deadline. If landlords fail to comply they could be liable for sanctions which include a potential claim by the tenant for compensation of up to three times the amount of the deposit paid and find themselves unable to bring a tenancy to an end through a Section 21 notice. The protection of tenant deposits is always a hot topic in the private rented market and something that often causes the greatest amount of disagreement between tenants and landlords. Following a number of high profile court cases where landlords have been challenged by tenants for up to three times the deposit amount and on the enforcement of notices to quit, there is now greater clarity on what landlords should and should not do. ‘The new Act provides clarity on the tenancy deposit protection regulations in practice, especially with regard to whether the pre 06 April 2007 deposits fall under the protection rules. The onus is on landlords to adhere to the new rules and ensure they’re compliant,’ said Fran Mulhall, regional operations manager at property rental specialists GFW Letting. ‘I think the deposit protection ruling from the Act can only be seen as a positive change, however I think there is a danger of detrimental effects that the Act might unintentionally encourage, relating specifically to the Section 21 notice to quit. The Deregulation Act has altered the rules regarding serving notice to quit, namely the timing in which the notice can be served and the period of notice required to be given to the tenant,’ Mulhall pointed out. ‘Landlords who had been served with a local authority improvement notice for failing to carry out repairs requested by the tenant within a timeframe could fall foul to the… Continue reading
London sees steep fall in property price growth, latest ONS figures show
UK house prices increased by 5.5% in the year to April 2015, down from 9.6% in the year to March 2015, according to the latest official figures, but London saw an even steeper decline. The data from the Office of National Statistics shows the growth in prices in London fell from 11.2% in the year to March to 4.3% over the 12 months to April. This is the lowest rate of growth in the capital city since October 2012. A regional breakdown shows that house price annual inflation was 5.8% in England, 1.3% in Wales, 2.2% in Scotland and 8.8% in Northern Ireland. Overall the pace of annual house price growth has fallen across the majority of the UK but increases in England were driven by an annual increase in the East of 9.6% and the South East of 8.4%. Excluding London and the South East, UK house prices increased by 5% in the 12 months to April 2015 and on a seasonally adjusted basis, average house prices fell by 1.3% between March and April 2015. The data also shows that in April 2015, prices paid by first time buyers were 5.8% higher on average than in April 2014. For existing owners prices increased by 5.4% for the same period. Peter Rollings, chief executive officer of Marsh & Parsons, commented that property values in the East and South East of England have seen the biggest boosts on a yearly basis, while annual growth in the capital has more than halved in the month since March. ‘But this was simply part of a wider slowdown submerging the country in April, when we were still wading through competing election promises, and when demand at the highest rungs of the market was being dampened by a possible mansion tax,’ he said. ‘Now the ink has dried on the ballot papers, we’re back onto firmer territory. More recent barometers of the property market indicate favourable conditions with low mortgage rates and cheaper stamp duty costs keeping demand for homes buoyant, and carrying along a tide of buyer confidence,’ he explained. ‘At the frontline of the property market, we’ve already seen a 5% jump in new buyer registrations since May, and we’ll soon see a new offensive in activity levels as a result, which will help the onward march of price growth,’ he added. According to Graham Davidson, managing director of Sequre Property Investment, pre-election jitters and uncertainty will have no doubt been a key factor in London’s slowdown, along with the shift in buying patterns of overseas buyers, who for many years over fuelled the market but are now favouring other areas that offer better and more stable long term returns. ‘Away from London and the south east, the majority of the country is experiencing more modest growth and in areas such as the North West where growth is at 3.1%, there are a wealth of opportunities for those looking to make their capital… Continue reading
Pay an extra 25% to buy a house in a popular London garden square
The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows. The study by residential estate agent Hamptons International analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time. In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation. In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square. For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square. ‘Growing house prices have seen the average home on a central London garden square break the £2 million mark for the first time. As well as the view of and access to shared resident only gardens, many of these homes are in the capital’s most desirable locations, with names such as Eaton Square or Chester Square recognised the world over,’ said Johnny Morris, head of research at Hamptons International. ‘While in part it is the address that purchasers are paying for, the size and quality of the property is also important and London’s garden squares are home to some of the finest examples of British architecture in the capital,’ he explained. ‘Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture,’ he added. Continue reading
