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Over a third of UK landlords experience problems with tenants abandoning their property
Some 36% of landlords in the UK have had property abandoned by tenants before, according to new figures from the largest landlord association. Abandonment occurs when a tenant moves out of a property before the tenancy has ended, without informing their landlord. The issue can be costly as it often occurs when outstanding rent is owed. However, the tenant still has a legal right to return and take up residence at any time and it is a criminal offence for landlords to do anything to prevent the continuation of the tenancy. The only option for a landlord is to go through the legal process for regaining possession of an abandoned property which can take months. While on average a third of landlords have had property abandoned before, more landlords in the North East of England have experienced the problem than anywhere else across the UK, with 58% having had a property abandoned. Some 51% of landlords in the North have also experienced the issue. At the other end of the scale, 31% of landlords in the South West of England said they have had a property abandoned before, the lowest proportion across the UK, with 33% of London landlords having had to deal with the problem. The figures are released as the Housing and Planning Act which contains measures to tackle the problem recently received Royal Ascent. ‘The process of recovering an abandoned property is too long, frustrating, and costly for landlords at the moment,’ said Richard Lambert, chief executive officer of the National Landlords Association. ‘Many people will be shocked by just how common this problem is, and landlords will be relieved to know that the Housing and Planning Act will create a new process to deal with the issue, giving them far greater security and peace of mind when recovering properties they believe to have been abandoned,’ he added. The Housing and Planning Act also contains proposals to allow local councils to keep hold of the proceeds they make when carrying out landlord prosecutions as well as introducing stiffer civil penalties and banning orders for landlords found breaking the law. ‘We’ve long argued that councils should be able to hold on to the money they make when carrying out landlord prosecutions as this better enables them to implement long term enforcement strategies to tackle the rogues,’ Lambert explained. ‘The Government missed the chance to apply these changes in the Queen Speech, but we hope they waste no further time in giving councils these important powers,’ he added. Richard Blanco, who had a property in Tottenham, London, abandoned a few years ago, said that one morning he received a call from a concerned neighbour saying the door to the property had been left wide open. ‘It turns out that my tenant just upped and left without any warning, taking his dog with him,’ he added. As it is a criminal offence to end a tenancy without going through the proper legal motions, he… Continue reading
Property industry warns against rushing in to Land Registry privatisation
The property industry has added its voice to those expressing concerns about the possible privatisation of the Land Registry in England and Wales. The registry guarantees and protect land and property rights and covers 87% of the land mass in England and Wales with some 24 million titles which are a legal evidence of ownership, having been founded over 150 years ago. The Government want to privatise the registry with its preferred option being privatisation with a contract to the government, but also the potential for a mutual joint venture between government and a private firm and privatisation with a new regulator in place. But the British Property Federation (BPF), which represents those who own and invest in commercial property, has warned that the government should not rush into making big changes to the way that this critical service works, as any perceived threat to the security of property title in the UK could spook investors. The BPF stressed that security of title is one of the big attractions for overseas investors in UK real estate, who have steadily become more important players in the commercial property market. It says in its response to the announcement that security of title underpins billions of pounds’ worth of lending to commercial property and if it were undermined in any way, it would make the job of renewing the urban environment considerably more difficult and expensive. The BPF also believes that over the past few years, there has been a noticeable drop in service quality levels at the Land Registry, and that additional investment is badly needed. ‘The Land Registry plays a crucial role in ensuring that real estate transactions are transparent and smoothly effected. It also plays an important part in making the UK attractive to those who invest in our towns and cities,’ said Melanie Leech, chief executive of the BPF. ‘Our concern would be that in the rush to push through these proposals important questions about the quality of service do not get the airing they deserve. Should the government go ahead with privatisation, it is critical that incentives exist for a new operator to invest in service quality and to retain the Land Registry’s deep pool of legal expertise. The Land Registry is often taken for granted but its activities facilitate important and much-needed regeneration across the country,’ she added. According to Andrew Lloyd, managing director of Search Acumen, which uses the Land Registry to verify property ownership for law firms handling purchases, it needs to be transparent at all times. ‘The threat to the register’s integrity when in private hands has been a major source of concern for many in the conveyancing industry, and the consultation is likely to prompt a heated debate,’ he said. Meanwhile, the Competition and Markets Authority (CMA) has warned that a private company could seek to block or prohibitively price access to the public housing registers in order to retain a commercial advantage. ‘We believe that… Continue reading
Scotland sees strongest first quarter for home lending since 2008
Home lending in Scotland increased by 7% in the first quarter of 2016, the strongest first three months of a year since 2008, new figures show. A breakdown of the data from the Council of Mortgage Lenders shows that on an unadjusted basis home owners borrowed £1.8 billion, down 22% quarter on quarter but up 1% year on year. They took out 13,500 loans, down 22% on the previous quarter but up 7% compared to the first quarter 2015. First time buyers borrowed £660 million, down 24% on the fourth quarter 2015 but up 10% on the first quarter last year. This totalled 6,200 loans, down 23% quarter on quarter but up 11% year on year. Home movers borrowed £1.1 billion, down 21% quarter on quarter and down 4% compared to a year ago. This totalled 7,300 loans, down 22% quarter on quarter but up 4% on the first quarter of 2015. Remortgage activity totalled £780 million, down 1% on the fourth quarter 2015 but up 13% compared to a year ago. This came to 6,400 loans, down 5% quarter on quarter but 5% up compared to a year ago. ‘Seasonal factors often affect lending levels in the first quarter of the year, but there are encouraging indicators in Scotland, as all lending types showed growth year on year,’ said Carol Anderson, CML Scotland chair. She pointed out that 2016 saw the strongest first quarter in a year for house purchase lending since 200. ‘With affordability conditions continuing to be favourable, we would expect gradual year on year growth in Scotland to continue throughout 2016,’ she added. While the figures show that it was the highest total borrowed for house purchases in the first quarter of a year since 2010 in Scotland, it was also the highest total borrowed for remortgage in the first period of a year since 2011. The CML report says that this was mainly driven by home movers who took out the highest amount of loans for house purchase in a first quarter of the year since the first quarter of 2008. Affordability metrics for first time buyers in Scotland remains better than for the UK overall. The amount borrowed this quarter compared to the previous was £97,795 compared to £130,500 in the UK overall, from £100,000. The average household income of a first time buyers was £33,381 compared to £40,000 in the UK overall, from £34,066 meaning income multiple in Scotland was 2.97 down compared to 3.01 the previous quarter and the UK average of 3.46. Affordability metrics for home movers in Scotland also remains better than for the UK overall. The amount borrowed this quarter was £136,000 compared to £172,295 in the UK overall, from £135,789 the previous quarter. The average household income of a home mover was £51,149 compared to £56,104 in the UK overall, from £50,815 meaning income multiple in Scotland was 2.68 down compared to 2.73 the previous quarter and the UK average of 3.2. Continue reading
