Tag Archives: london
Prime central London rental market in recovery mode
The prime central London rental market continued its recovery in August as uncertainty surrounding next May’s general election turned more prospective buyers into tenants, a new report suggests. It is not happening to any significant degree but a growing number of buyers are adopting a wait and see approach regarding the next 12 months as growth slows in the sales market, says the report from international real estate firm Knight Frank. For the same reason, sellers are increasingly exploring the possibility of becoming landlords in the short term, the report explains. ‘Price growth is slowing due to uncertainty surrounding the outcome of the general election and the possibility of tax changes in relation to high value residential property. The likelihood of an interest rate rise before the election is adding to the mood of uncertainty,’ said Tom Bill, head London residential research at Knight Frank. He added that by the end of a 12 month tenancy signed in August 2014, landlords and tenants will have a clearer outlook, three months after the general election and in a relatively normalised interest rate environment and the trend contributed towards more milestones being passed in the prime central London rental market in August. Rental values rose for the sixth consecutive month, which was the longest run of growth in three years. A rise of 0.5% in August pushed the index to its highest level since November 2012 and meant annual growth was 1.2%, the highest rate in more than two years. In addition, rental yields increased for the second consecutive month to 2.82%, the first time that has happened since the middle of 2011. Bill explained that there is also a more fundamental change taking place in the London market that is likely to underpin rental values in future. ‘A lower degree of stability in the labour market since the financial crash and the emergence of London as Europe’s dominant centre for technology businesses have created a more footloose workforce,’ he said. The report also shows that the percentage of telecoms, media and technology workers using Knight Frank Corporate Services in the year to April 2014 was 11%, ahead of oil and gas at 6% and retail also at 6%, and third only behind finance at 29% and law at 13%. Continue reading
Almost a third of families move house to get kids into a good school
Nearly a third of parents have moved house in England to be in the catchment area for a good school, new research shows. Also 10% are willing to pay in excess of £50,000 for a property in a desirable school catchment area and 24% would consider renting an extra property in the catchment, according to research from price comparison firm Confused.com. It also shows that 18% admit that they started thinking about what school to send their child to before they were even born. The study suggests that inflated house prices in good state school catchment areas actually mean it may be cheaper for parents to send their children to local private schools. Compared to the average house price in England of £275,721, the typical price of a house close to Lowbrook Academy, Maidenhead, one of England’s best state schools, is £481,023. According to calculations, it would be cheaper for families to educate a child at a local private school than to borrow the money needed to move into the Lowbrook Academy catchment area. Many parents are even willing to ‘cheat the system’ to secure places at the most sought after schools in the country. Some 9% admit to having given a false address within the catchment area of a good school to ensure their child got a place there, while 24% would consider renting an additional property in the catchment area for a good school to help secure a place for their child. Other tactics that parents admit to adopting to help get their child into their school of choice include feigning religious observance to get into a well performing local school (7%) or falsely claiming that a sibling already attends a local school to increase their child’s chances of acceptance (4%). Some parents also admit that they would be willing to pay for extra tuition to try and nab a place at a well performing school (16%), while others admit that they would send their child to a nursery simply because it had links to a good primary school (27%). The race to secure a place at a good state school means that some parents are now making decisions on where they will live before their children are even of school age. Some 18% admit that they started thinking about what school to send their child to before they were even born, with a further 12% going as far as putting their unborn child’s name down on a school waiting list. The findings come amid mounting concerns over rising primary school populations leading to a shortage of school places for children. Recent figures from the Department of Education show that six primary schools have classes with just one teacher to 70 children, while nearly 100 have classes with at least 50 pupils. Analysis suggests that at the current rate, the number of pupils in large classes will reach almost half a million by 2020. ‘Although household finances remain stretched, it is significant to see from our research that a number… Continue reading
Wear and tear is most misunderstood issue for tenants and landlords
Fair wear and tear is the most misunderstood area of the whole renting process and agents and landlords still have unrealistic expectations centred on the deductions that can and cannot be made from the tenant deposit, it is claimed. According to the Association of Independent Inventory Clerks (AIIC) it is a commonly held view in the lettings industry that a tenant cannot be held responsible for damage at the end of a tenancy caused by ‘reasonable use of the premises and the ordinary operation of natural forces’. However, while the precise source for this quote is unknown, it is a general guideline that has been accepted across the industry, and the source of most disputes. Recent figures from the Tenancy Deposit Scheme annual survey reveal that cleaning related issues make up 56% of all disputes. Damage to property accounts for 43%, redecoration 30%, rent arrears 17% and gardening issues 13%. It seems that 55% of all disputes are raised by tenants unhappy about the proposed deductions from their deposit and of these, only 21% received all their deposit back. In contrast, 45% of disputes were raised by landlords and agents and of these, only 19% received the amount in dispute. ‘I have lost count of the number of times that a landlord or letting agent has demanded that a property is repainted from top to bottom following a five year tenancy, when the marks on the walls are no more than normal wear and tear,’ said Pat Barber, chair of the AIIC. ‘Everyone has their own view of what constitutes fair wear and tear. Landlords and letting agents may hold the view that a tenant is responsible for repainting a whole property at the end of their tenancy, however the law may not agree. A tenant on the other hand may believe that all the marks, pin holes and damage to the interior walls at time of check out will be covered by normal wear and tear. The same viewpoint is often also applied when assessing damage and wear to the contents of the property and its fixtures and fittings,’ she explained. She pointed out that there are two main things to remember with wear and tear. Firstly, the tenant has a duty of care to return a property in the same condition at the end of the tenancy as found at the start and as listed on the initial inventory report with allowance for fair wear and tear. Secondly, the law does not allow for betterment or ‘new for old’ when assessing the action needed to be taken after a check out inspection. So, if an item was old at check in and after a two year tenancy, there is some additional damage, the law will not allow a landlord to simply replace this item with a new one. Instead, some sort of compensation is allowable towards future replacement…. Continue reading
