Tag Archives: london
Survey suggests being a landlord is more stressful than it used to be
Being a landlord in the UK is becoming an increasingly stressful business with over half using their holidays to sort out issues, new research shows. Some 25% have found being a landlord more stressful than they had expected and 67% said they were more stressed than 12 months ago, according to a survey by UK Landlord Tax. The survey showed that 53% of landlords use up to 20% of their annual leave sorting out issues with their properties. Also 46% of landlords spent up to 20 hours a year on phone calls, negotiating with agents and tenants as well as sorting out insurances, house repairs and maintenance. Other contributing factors included late rent payments (58%), funding property maintenance and repairs (40%) and tax worries (38%). Expat landlords feel under the most pressure with 86% worried about the potential changes to personal allowance entitlement. However, those who had been landlords for 10 years or more felt under least pressure. Other issues and worries for all landlords included properties lying empty with no tenants in place (35%), not having enough time to deal with issues at the property due to work constraints (28%) and expensive agency fees (15%). Four legged friends were another ‘pet hate’ landlords had to tackle. While 60% of those surveyed said they don’t currently allow pets in their property, 5% discovered at the end of the tenancy that their tenants had been keeping pets without consent, and experienced some level of damage to the property. While 74% of those surveyed said they had no plans to stop letting out their property in the next 12 months, 51% said they didn’t expect to make any money in that time either. This ties in with figures from the National Landlords Association which revealed that 27% of landlords who let out a single property break even or run at a loss, meaning just a few unexpected expenses can leave them struggling. ‘Following the dramatic increase in landlords in the UK it’s not surprising that they are becoming more stressed. Letting properties is a serious business and with the number of so-called ‘accidental landlords’ increasing significantly it’s no surprise that landlords are feeling the pressure,’ said Simon Thandi, director at UK Landlord Tax. Continue reading
Prices of most expensive properties in London plummeting, new data suggests
House prices in London's most expensive areas are plummeting, sparking fears of a domino effect of house price falls across the UK, it is claimed. The latest data from Home.co.uk shows falls in six out of 10 of the UK's most expensive areas, all of which are in central London. Average sales prices fell by 8% in Belgravia over the 12 months to September 2014. Over the same period, prices fell in Westminster by 6.3%, in Soho by 5.7%, in South Kensington by 4%, in Chelsea by 3.5% and in Charing Cross by 2.7%. Tightening mortgage credit in the wake of the Mortgage Market Review as well as an increase in supply are among key factors in this price drop in the capital's most expensive, and arguably most overheated, property markets, according to the firm. House price inflation is now cooling across all of greater London. Across the capital region, the average asking price fell by 0.1% between August and September whilst average prices rose by just 0.2% across England and Wales. Thus far only the most expensive parts of London are suffering serious price deflation, but it may well spread. This latest trend in London's property market follows a period of dramatic increases in house prices in the capital, fuelled by low interest rates and foreign property investment. Prime property was the first segment to recover following the credit crunch in 2007. A wave of soaring prices then moved out from prime central London as buyers refocused on less expensive areas. The average asking price in London has risen by 9.8% in the last six months. Over the last year, some parts of the capital saw price rises far above the average of 19% for Greater London. In Stratford, the average sales price of a two bedroom property soared by 44.9% in the 12 months to September 2014 while in West Norwood, the same property type saw a price rise of 44.2% over the same period. Outside of the M25, only Slough showed comparable price appreciation. In the 12 months to September 2014, the average price of a two bedroom property in the Berkshire town rose by 44.3%. ‘Overall, it's been a simply staggering year for property prices in London. Some areas have far exceeded the 19% rise overall for Greater London, whilst others have underperformed relative to this figure,’ said Doug Shepherd, director of Home.co.uk. ‘The list of the top five locations reveals some jaw dropping gains. Moreover, it is highly likely that many owner occupiers in these locations earned less than their homes did over the course of the last year,’ he explained. ‘However, when prices rise at an unsustainable rate, boom can quickly turn to bust. Prime London prices are falling and the middle income areas that have seen the biggest price hikes this year are likely to suffer the same fate,’ he added. Continue reading
UK govt already agreed to buy over 350 properties affected by high speed rail link
The UK government has now agreed to buy over 350 properties along the route of the new High Speed rail link from London to Birmingham. They are affected property owners who have served Statutory Blight notices or applied via the Express Purchase Scheme. This makes clear the government’s commitment to acquire a significant amount of the property required for the construction of HS2 before the necessary legislation enabling the railway has even passed through parliament. However, even when the government has accepted a Statutory Blight notice, care should be taken when negotiating a final settlement, according to experts at independent property consultants Knight Frank. James Del Mar, head of Knight Frank’s HS2 Team, pointed out that compulsory purchase and compensation legislation is complex. ‘Those facing Compulsory Acquisition or making a Statutory Blight or other compensation claim are entitled to be represented by properly qualified professionals. HS2 will meet those professionals’ reasonable fees incurred in assisting claimants,’ he said. He explained that the ‘disturbance’ aspect of a claim, for example, has a multitude of facets. ‘As well as the value of the property, which needs to be evidenced by reference to actual market transactions, there is the Home Loss Payment of a further 10% capped at £47,000 or a business loss payment for those that aren’t home owners,’ he said. ‘There is the Stamp Duty Land Tax, itself a significant sum, the removal costs and all other associated expenses which can be considerable. In many cases HS2 are hoping to settle on a full and final basis and are leaving little ability for claimants to come back if they’ve forgotten something,’ he added. Knight Frank has a dedicated team of Compulsory Purchase and compensation specialists with over 100 years’ experience between them. The team has a 100% success rate in its dealings with HS2 with all fees being directly paid by HS2. ‘It’s an enormously stressful event and taking the comfort in the form of professional advice is one way of diffusing some of that emotion and receiving the reassurance that HS2’s proposal is correct and appropriate,’ said Del Mar. Continue reading
