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UK landlords left fuming over new smoke alarms laws
Landlords in the UK have criticised what they claim are unnecessary delays in the introduction of legislation which will make it compulsory to install smoke and carbon monoxide alarms in private rented homes. Draft regulations were published earlier in the year to require private sector landlords to install at least one smoke alarm on every storey of their rental property from 01 October 2015, providing local authorities with the power to fine landlords who fail to comply £5,000. However, the UK’s upper house of parliament, the House of Lords, has rejected the draft legislation at is final stage on the basis that the proposed introduction is less than three weeks away, that the government has not done enough to inform landlords of the changes, and that the legislation is poorly worded. The British Property Federation (BPF), which represents residential landlords and has supported the draft legislation, has warned that by the time the legislation is approved, landlords will be left with mere days to comply with the legislation, risking the £5,000 fine. The BPF has issued further concerns that information about the impending change in legislation has been poorly disseminated, and that many landlords may even be unaware of the changes and the potential fines. ‘We have been fully supportive of the campaign to make smoke alarms compulsory in private rented properties, and are therefore extremely disappointed to see this unnecessary delay in proceedings,’ said Ian Fletcher, director of policy (real estate) at the BPF. ‘The original timeframe for the legislation was tight, but allowing time for a further debate in the Lords is going to make this even worse. Coupled with the fact that there has been no publicity on the changes, we are worried that many landlords are going to be caught out by the fine as a result of government’s disorganisation and lack of clarity,’ he explained. ‘It is particularly frustrating that one of the reasons that this revocation has happened is because the introduction is worded poorly, as there has been no consultation on this,’ he added. Richard Lambert, chief executive officer of the National Landlords Association (NLA), described the situation as ‘farcical’. ‘These regulations are poorly worded, badly timed and being tabled with just days to spare before they are due to come into force on 01 October,’ he said. ‘As we understand it, there will be no guidance from the Government explaining how to comply before then. How can a landlord about to let a property on a tenancy from the start of October be expected to comply with these new requirements if they’ve not been told what they are and what is expected,’ he pointed out. ‘Given that there is no Government budget for marketing these new laws, and so it is relying on industry organisations and professional advisers as the main route to compliance, it’s shoddy, to say the least,’ he added. Continue reading
European commercial property markets sees 30% growth year on year
The European commercial property investment market has continued to gain positive momentum, with transaction volumes reaching €104.9 billion in the first half of 2015. This was a 29% increase on the same period of 2014 and investment volumes for 2015 are forecast to reach €230 billion, which would make it comfortably the best year since the market peak of 2007. The data from the analysis report from international real estate firm Knight Frank shows that increased investment volumes were recorded in the first six months of the year across a wide range of markets, in both the core and the periphery of Europe. The continent’s two largest markets, the UK and Germany, performed strongly in the first half of the year, providing a significant boost to overall deal volumes. The UK is on course for a record breaking year for investment, while the German market has been buoyed the strong performances of Frankfurt and Berlin. The analysis report shows that the revival of activity in Europe’s peripheral countries has continued, as investors move up the risk curve and seek value in non-core markets. Spain and Ireland, which have led the peripheral market recovery over the last 18 months, continue to attract heightened levels of investment, but the most impressive increases in activity during the first half of the year came in Italy and Portugal. It also shows that the weight of money targeting commercial property has led to widespread yield compression, and prime office yields hardened in cities such as Amsterdam, Lisbon, Madrid, Milan and Paris during the second quarter of 2015. Knight Frank’s European weighted average prime office yield moved in to 4.9%, its lowest level since the third quarter of 2007. While investment activity is buoyant in the large majority of European markets, occupier market trends remain more varied. Rental growth was patchy in the second quarter with Dublin, Madrid and Vienna being among the small number of European markets to record increases in prime office rents. However, rental growth is anticipated to become more prevalent in the medium term, on the back of the improving European economy and falling availability levels, particularly for CBD offices. ‘Investment volumes continue to be driven upwards by the strong international demand for European commercial property, particularly from US investors, and by the increasing number of large portfolio deals,’ said Andrew Sim, head of European Capital Markets at Knight Frank. ‘These trends are expected to continue over the rest of the year, and we forecast that annual European investment in 2015 will be more than 20% up on 2014. European transaction volumes are approaching the levels seen at the market peak of 2007, and several countries may well set new records this year,’ he added. According to Matthew Colbourne, associate with the Knight Frank international research team, European occupier markets continue to see mixed trends, in contrast to the widespread buoyancy of investment markets. ‘Office take-up increased strongly in the key German and Spanish markets… Continue reading
Research suggests UK home owners over 50 with a mortgage could get a better deal
One in three home owners in the UK aged over 50 still have a mortgage and many have never tried to renegotiate for a better deal, new research shows. Mortgagees in this age group have still got around £50,000 to pay and one in 14 think they have been prevented from moving their mortgage to a more competitive deal because of their age. The research by the Saga Equity Release Advice Service also shows that of those home owners in their 70s who still have a mortgage on average they have £40,000 to pay. While many of those in their early 50s still have years of working life to chip away at their debt, around one in seven people in their 70s are faced with having to use their weekly pension to pay off what’s owed instead of using it to enjoy their retirement as they had planned. Saga says that shopping around for a new mortgage could help people pay it off quicker but one in 10 over 50s say they are concerned about their lenders maximum borrowing age and it appears they are right to be worried as 7% say they have been prevented from moving their mortgage to a more competitive deal because of their age. ‘Millions of older homeowners have found themselves abandoned by mortgage lenders and stuck in uncompetitive deals because of the unfair age restrictions that many lenders have in place,’ said Alex Edmans, head of retirement at Saga Personal Finance. ‘If these people had access to a better deal they wouldn’t have to pay as much back each month which would leave them with more money to enjoy their retirement. For those in retirement struggling to meet their monthly mortgage costs it may be worth considering a lifetime mortgage to help ease the burden of the monthly repayments,’ he explained. ‘This may not be suitable for all, so it is well worth speaking with a specialist adviser, who would consider all alternatives and review whether any state benefits could help provide some relief. It is also extremely important that people discuss their options with their family or loved ones and we advise our customers to do this before taking out a lifetime mortgage,’ he added. Continue reading
