Tag Archives: real estate
Lettings industry unhappy about proposed tenancy changes in Scotland
Every summer on top of the thousands of tourists that arrive in Edinburgh there are thousands more seeking short term rentals for the duration of the city’s famous International Festival and Fringe. But concern is being expressed that proposed changes to the lettings market in Scotland put forward by the government could adversely affect the private rented sector’s ability to cope with the influx. On top of this there are students seeking properties to rent when the university term starts and this too could be affected by the plans, according to an analysis report from Lettingstats, part of the online property lettings firm Lettingweb. The Scottish Government has proposed that assured and short assured tenancies should be replaced by the Scottish Private Rented Tenancy (SPRT) for all letting in the private sector. It would make the current situation where a landlord rents to students during term time then to tourists and Festival workers during the summer without having to end and start a new tenancy impossible. Lettingstats believes that these new tenancy rules will stop the ability of key providers in the private rental market to offer guaranteed accommodation for both students and festival visitors. It could also affect landlords around the country who rent to students. It says that the legislation, scheduled for the autumn, will force private landlords, Edinburgh’s universities, and PBSAs to offer unlimited tenancies with no clear end dates, instantly removing these landlords’ capacity to know when they can market their properties to festival performers, visitors and students alike. ‘Private rented housing stock and university accommodation is critical to the success of Edinburgh’s festivals. The new tenancy reform proposals may be well intentioned, but the Scottish Government and City of Edinburgh Council have so far ignored the dire warnings consistently presented to them from across the entire private rented sector,’ said Lettingweb’s head of research, Dan Cookson. ‘Given that the identification of additional Festival accommodation was seen as a key recommendation in the city’s recent festival strategy, it is bizarre that the city would support tenancy reform changes that will immediately put at risk much needed accommodation capacity within the city,’ he explained. ‘Just the prospect of this legislation being introduced is already having a wider impact on the private rented sector. Landlords are starting to move to protect themselves by either transferring their tenancies over to short term only, or even considering disinvesting which would be a disaster as falling supply will inevitably push up prices,’ he pointed out. ‘Ultimately this legislation will have an unintended negative impact upon the availability of housing stock for residents, students and visitors alike. It is hugely disappointing that policy makers are ignoring the stark warnings of the sector,’ he added. Letting agents are also expressing concern. Stuart Montgomery, director of Rettie & Co, believes the legislation is based on a fallacy that landlords evict tenants from their homes… Continue reading
Economic crisis not affecting interest in Greek property, it is suggested
Estate agents are seeing a steady stream of enquiries about property in Greece, especially at the high end, but prospective holiday home buyers might want to adopt a wait and see approach due to the current financial crisis in the country. One agent seeing demand is Chestertons International which has found that so far the property market has proved to be stable and in particular, the island of Mykonos continues to grow in popularity. ‘If clients are not looking primarily for investment but want to own a second lifestyle property, then Greece continues to offer everything that it has always had to offer. If, however, clients are looking for future investment they will need to take into account both the economic environment and the ultimate currency that Greece might use,’ said Neville Page director of International at Chestertons. He explained that it is currently difficult to predict the final outcome of the negotiations between Greece and its European partners, but opinion seems to be becoming polarised between either Greek remaining in the Eurozone or re-establishing its own currency. ‘If Greece remains in the euro we would be very optimistic about property markets in the short term, particularly with the currency fluctuations in the euro we have seen in 2015, meaning new UK based investors can get more for their pounds,’ Page explained. ‘In the event that Greece was to adopt a different currency, there would be the strong risk of devaluation in the short term. However, this could provide a buying opportunity for the brave investor who recognises the enduring long term appeal of Greece,’ he added. Louise Reynolds, director of overseas property agency Property Venture, believes that if Greece introduces a new local currency, in all likelihood it would depreciate immediately. ‘The International Monetary Fund (IMF), has in the past predicted Greece would need a devaluation of at least 20% against the Eurozone average, just to balance its current account. Such devaluation would increase Greek competitiveness, but would have huge legal ramifications with regard to the existing debt owed to Europe and the IMF,’ she said. ‘The danger lies with the capital flows, which are the biggest unknown. The world’s central banks will do their utmost, as they did during 2008, to prevent financial meltdown or contain the damage through a range of mechanisms such as bank capitalisation, foreign currency swaps, and potentially capital controls,’ she added. She thinks property buyers in Greece and home owners may want to make sure they have access to money in an international bank, given the capital controls in place. ‘If Greece leaves the Eurozone, it is likely that savings in the state-controlled banks would be converted into local currency which are likely to be worthless. It is also likely that a mortgage could be converted into local currency so mortgage holders could benefit if there is a devaluation-effect,’ she added. Those who already own property have seen lettings… Continue reading
Annual price growth in England and Wales slower but prices set new high
House price growth in England and Wales is at a two year low but the average price at £278,849 is a new high, according to the latest index figures. However, annual property price growth slowed to 4.1% in June, the smallest yearly rise since August 2013, says the LSL house price index. But whereas London has been leading house price growth, the reverse is now happening. London ranks only seventh in the regional breakdown with annual price growth down to 1.8%, well down from the 20.7% recorded in July 2014. Sales are also strong, up 15% in June and the firm says that buyers have come back with a vengeance after a lull in the run up to May’s general election. The data also shows that month on month property prices were up 0.3% and overall home values are on average £10,980 higher than a year ago. And overall excluding London and the South East annual price growth is 4.4%. Adrian Gill, director of Reeds Rains and Your Move estate agents, said that sales in June were above the seasonal uplift typically expected at this time of year. ‘This new buoyancy in activity levels bodes well for property market in the coming months. It’s clear the general election distorted the usual tide of the market, with many buyers waiting until afterwards to complete on their purchases,’ he explained. ‘In the first half of 2015, sales are 13% lower than the same period last year. But June’s sharp upward spike shows the start of this calibration back to firmer territory, as confidence in the political landscape solidified with a majority government,’ he added. He explained that it is a slowing of prices at the top end in London that is pulling down the overall average and the lower rungs of the ladder are still dynamic. In the cheapest London borough Barking and Dagenham house prices have risen 15% over the past year. Overall, the lowest priced boroughs across the capital have seen annual price jumps of 10.1% on average, compared to steadier 2.8% year on year rises in the most expensive London locations. ‘It is the pricier south of the country which has seen the most significant slowdown in sales with the volume of properties sold in London and the South East 15% lower than 2014 levels. But healthier activity levels in the North, Yorkshire and Wales should help to balance out some remaining regional disparities in price growth,’ said Gill. ‘It’s encouraging that we’re seeing livelier activity where prices need to get back onto their feet as there are still some pockets of Wales, the North and Yorkshire where house prices are lower than 12 months ago,’ he added. He also explained that with borrowing cheaper than ever, wages recovering, and government schemes and incentives to lean on, buyers’ purchasing power is stronger than it has been for a long while. ‘As a result of this positivity, higher… Continue reading
