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NLA warns students against scam landlords at start of UK university year
As students gear up for the start of the university year in the UK, the National Landlords Association (NLA) is reminding would be tenants to be vigilant when looking for somewhere new to live and to avoid getting scammed. The NLA receive complaints from tenants every year about fraudsters who operate online and the warning comes as many tenants scramble for available properties as the new academic year is about to begin. Such scams trick people into paying an advance fee to rent a property and in some instances fraudsters use NLA branding or fake letters from NLA local representatives in order to add legitimacy to the scam and lure their victims in to a false sense of security. Scammers often target those who are coming from abroad and are securing property online, particularly those looking for university accommodation. Typically once money has been sent the ‘landlord’ becomes un-contactable leaving the potential tenant defrauded. The NLA is reissuing guidance about avoiding online rental fraud which was drafted in conjunction with the National Union of Students and the National Crime Agency. They advise against sending money up front to anyone advertising online and to make sure they are genuine first and view the property if you can and also beware if you are asked to wire any money via a money transfer service, criminals can use details from the receipt to withdraw money from another location. Tenants are also advised to use government approved deposit schemes such as my|deposits and to contact the organisations the landlord claims to be associated with in order to verify their status. Tenants wanting to check whether a prospective landlord is a member of the NLA or accredited should ask them for their membership number, then go to: www.landlords.org.uk/member-verification . Overseas applicants needing to secure accommodation before they arrive in the UK should first seek the help of the employer or university they are coming to. Everyone should get paperwork and proof by asking for a copy of the tenancy agreement or safety certificates to confirm that the landlord has a genuine legal connection with property. ‘Rental fraud is one of the uglier aspects of private renting and it tends to rear its head this time of year as students, particularly those coming from abroad, look to secure rented accommodation for the academic year,’ said Carolyn Uphill, NLA chairman. ‘Tenants, no matter where they are from, should not send payment to advertisers before they are certain it is genuine and should contact their university who will have a list of reputable landlords and letting agents,’ she explained. ‘If you receive official correspondence from a landlord and are worried it might be a scam, often a good clue is that it will be written in poor English. Tenants should also remember they can check if a landlord is an NLA member,’ she pointed out. She added that any tenant that falls victim to such a scam should contact the relevant authorities in their… Continue reading
Older home owners in UK still planning to move, new research shows variety of reasons
Many home owners in the UK over the age of 55 are not intending to stay put with 37% planning at least one more move, new research has found. Indeed, overall they are planning more than three million future property purchases worth a total of more than £775 billion, the data from insurance firm Prudential shows. However, contrary to some predictions, this does not seem to signal an explosion in property deals fuelled directly by the new pension freedoms. Only 14% say their plans have come about as a result of the pension rule changes and just one in 10 think the changes make them more likely to buy a property in the future. The research results show that investing in property is something that remains popular with the over 55s with 18% of those planning a property deal say they will not be buying a home to live in, but will be buying second homes, buy to let properties, development properties or homes for their relatives. Prudential’s research also reveals the scale of the property deals being considered by the over 55s. The average maximum purchase price for their next property is over £250,000 while 20% say they are willing to spend £350,000 or more. Some 83% who are planning a property deal, say that their planned purchase is likely to be their last. However, not all of the older property dealers will be last time buyers as 11% say they will probably buy again in the future. ‘There was a lot of speculation that the pension freedoms would spark a rush of over 55s investing in buy to let property as a means of generating income in retirement. However our research suggests that this hasn’t yet been the case,’ said Stan Russell, retirement expert at Prudential. ‘In fact the process of withdrawing cash from a pension fund to purchase property and potentially generate an income is complex and could result in a large tax bill. Anyone aged 50 or over with a defined contribution pension is entitled to free and impartial guidance from the Government’s Pension Wise service, and many of those considering accessing their retirement savings under the new freedoms would benefit from a consultation with a financial adviser,’ he explained. The results of Prudential’s research also show that the biggest motivation for over 55s planning a property deal is to downsize with 43% giving this as a reason. ‘Using money raised from a property sale could prove to be a helpful boost to retirement income for some. But it’s no substitute for starting to save as early as possible to prepare for eventual retirement,’ said Russell. There is an almost equal split between those who expect to buy a property that’s more expensive than their current home, and those who plan to buy a cheaper property and bank some cash. Around 29% expect to spend more on their next property while 27% say they’ll spend less. The research shows… Continue reading
First time buyers and university accommodation boosting Welsh property market
First time buyers and parents investing in property for their offspring going to university are among the factors boosting the residential housing market in Wales, a new report suggests. Across Wales first time buyer numbers are up, particularly in the new build markets in Cardiff and Newport, according to the latest spotlight report from real estate firm Savills which covers the South of Wales. Savills deal book data for South Wales shows 49% of buyers were aged under 40 in 2014 and other sources confirm the trend, with the Council of Mortgage Lenders (CML) data for Wales covering the final quarter of 2014 showing a 14% year on year increase in loans to first time buyers compared to a 4% rise in home mover loans over the same period. Official data also shows that the Help to Buy Wales scheme has assisted almost 1,400 completions since it was launched in January 2014 of which 74% were sales to first time buyers. Indeed, the average age of buyers in the scheme is 30, with an average sale price of £178,000. Some £48.7 million of the available £170 million funding has been spent so far, and a Government announcement on the possible extension of the scheme beyond the scheduled March 2016 closing date is expected later this year. The report explains that along with the boost provided by Help to Buy, the wider economic recovery has led to an improvement in market sentiment, with potential buyers more confident and finding mortgage availability much improved. ‘Help to Buy can also be credited with opening up the idea of purchasing a new build for younger buyers who may not have considered it previously,’ the report added. According to the report flats are the most popular new build product in Cardiff, due to first time buyers and downsizers both being key markets. In Cardiff flats make up over 70% of the new property sales recorded by the Land Registry in the year to February 2015 compared to 15% across Wales as a whole. Even in the cities of Swansea and Newport less than a quarter of new homes are flats, reflecting the unique nature of Cardiff’s market. The report also says that in Cardiff it is the city’s universities that are a key driver of activity, with parents buying property for their student children. ‘Good yields and strong demand for rental property around the university sites mean that these are often kept as investments following graduation,’ the report says. It also points out that Cardiff is expected to have the fastest growing population in Wales, according to the official projections, adding over 20,000 households a year on average over the next 25 years. ‘Our projections show a majority of these will be added in the private rented sector. The number of households in the private rented sector in the city doubled between 2001 and 2011, and we expect that further increases are likely,’ the report added. Indeed, Cardiff is… Continue reading
