Tag Archives: real estate
UK landlords without cast iron inventory losing out in tenant disputes
Since the start of the tenant deposit schemes in 2007 in the UK more tenants than landlords are continuing to be awarded 100% of the disputed amount at adjudications, new research shows. Data from the Tenant Deposit Scheme Annual Review 2014, shows that over the last eight years, tenants have been awarded 20.25% the whole dispute amount, compared with 18.21% of landlords. Furthermore, the dispute amounts have risen leapt from £736 in 2010 to 2011 to £860 in 2013 to 2014. Cleaning remains the most common cause of dispute, appearing in 53% of all cases, followed by damage in 46% of cases, redecoration in 29%, arrears in 16% and gardening in 14%. Disputes over gardening have seen a steady increase since 2011, up by 3% ‘Despite the best efforts of the deposit schemes, landlords and agents are not being awarded 100% of the deposit as often as tenants. It is worth asking ourselves why landlords have failed to improve their success rate at disputes over the last few years. One obvious reason is the quality and lack of evidence which is presented at adjudications,’ said Jax Kneppers, chief executive officer of Imfuna Let. He believes that many landlords and agents are not conducting an adequate inventory or check-in and check-out and don’t keep copies of correspondence with the tenant, which could be evidence in a dispute. ‘It is so important that landlords and agents have a properly compiled inventory. This will always be much more detailed than a landlord’s own document and will provide vital evidence in any end of tenancy dispute. The tenants should check and sign their agreement detailing the inventory when they check-in,’ Kneppers explained. ‘At the end of the tenancy, the tenant should always be present during the check-out inspection. Tenants should also be made aware of any problems and chargeable issues to their deposit, as this will avoid disputes. Using a deposit scheme dispute service should always be a last resort. The landlord should make every effort to communicate and negotiate with their tenant,’ he added. According to the firm the best way for landlords and agents to protect their property and avoid a dispute, is by ensuring that its condition is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a thorough check-in and check-out report. The firm’s software aims to give landlords and agents a bullet proof inventory that records the property check-in condition status. The software provides a side by side comparison report which clearly demonstrates any change in condition of the property, illustrated with date and time stamped photographs. Users can also print out a deposit dispute report, again saving time, meeting deadlines and ensuring that the tenancy deposit protection adjudicator has the information at their fingertips. Continue reading
UK gross mortgage lending showing signs of picking up
Mortgage lending in the UK is still down on a quarterly basis on what it was a year ago but there are signs of a pickup, according to the latest figures to be published. Estimates from the Council of Mortgage Lenders shows that gross mortgage lending reached £16.5 billion in March, some 21% higher than February but lending for the first quarter is 12% down on the final quarter of 2014 and 3% down on the first quarter of 2014. However it is up month on month for the month of March, some 7% higher than March of 2014 and CML chief economist Bob Pannell said that the underlying lending picture is stabilising. ‘Sentiment and activity are showing early signs of improvement, and should be further supported by the effects of stamp duty reform. We expect to see lending strengthen over the next few months, albeit from a relatively sluggish start in 2015,’ he said. But buy to let lending is stronger. Data from the Bank of England shows that gross lending for buy to let purposes was £27.4 billion in 2014 and over the past five years the share of total buy to let lending in overall mortgage lending picked up to 15% in the fourth quarter of 2014 Q4, higher than in the pre-crisis period. The Bank’s network of Agents noted that the rental market had continued to grow strongly in recent months, supporting continued steady growth in buy to let activity and gross buy to let lending has grown faster than overall gross mortgage lending in recent years. Gross buy to let advances for remortgaging have also increased in recent years. As a share of the total it grew from 32% in 2002 to 52% in 2014, with the share of gross advances for house purchase at 45%. According to David Whittaker, managing director of Mortgages for Business, buy to let is not subject to the nerves and jitters of this spring’s home owner mortgage market. ‘Election uncertainty might be putting some people off buying a home, but in the meantime millions of tenants still need somewhere to live and landlords are investing in new properties, as buy to let mortgage rates reach new lows,’ he said. ‘Underpinning this, rents are picking up on the back of a strengthening jobs market, supporting yields while steady price growth is still providing an additional bonus of capital growth to many landlords,’ he explained. However he pointed out that there are uncertainties on the horizon. ‘The latest noises from the Bank of England indicate how the powers that be seem as unsure about the future path of interest rates as the man on the street. However, when rates do rise, or if the economic recovery does slow, landlords will be in a better position to stand up to headwinds than a year ago as their tenants’ financial health improves,’ he added. In general the mortgage lending market is improving, according to… Continue reading
Rents in England and Wales close to record high, latest index shows
Rents in England and Wales are now £768 per month with average annual rent rises growing at their fastest pace in two years, up 3.7% over the last 12 months. The last time rents rose so quickly was in the year to April 2013, when this previously stood at 3.9% per annum, according to the latest buy to let index from Your Move and Reeds Rains. Between February and March rents have risen by 0.3% on a monthly basis and are now just £2 away from the all-time record high of £770 per month, set in October 2014, the data also shows. ‘Since 2010 the private rented sector has absorbed over a million extra households. With social housing in decline, alongside a parallel decay in the number of people owning their own home with a mortgage, private renting has stood in to fill the gap,’ said Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘With only small real terms rent rises, this has generally been a success and tenants are now half as likely to fall behind on rent as at the peak of the financial crisis. However, this sector is carrying the weight of the housing crisis and that will mean faster rent rises in future if supply doesn’t keep up,’ he pointed out. ‘Without more homes every year to match a rising population, housing will inevitably become more expensive. And with one in five households now renting privately, this section of the population won’t be an exception to those fundamentals. Britain needs more homes, and over the long term, investment by landlords will only provide places to live as quickly as those homes are given planning permission and completed,’ he added. A breakdown of the figures shows that rents in the East of England stand out with 12.0% annual growth. The average property to let in the East of England region is now considerably more expensive than the South East. London is second in terms of annual rent rises with rents in the capital 5% higher than in March 2014, while Yorkshire and the Humber has seen rent rises of 3.3% over the last 12 months. At the other end of the spectrum, rents in the East Midlands are now 0.2% lower than a year ago, while the South West has seen no annual change. Most recently, rents have also risen the fastest month on month in the East of England, up 2.5% just since February 2015. However on a monthly basis the North West is not far behind, with rents up 2.3% over the last month, while this is followed by Yorkshire and the Humber with rent rises of 0.4% since February. By contrast, rents in the East Midlands have dropped by 0.6% between February and March, while the North East and Wales both saw rents 0.5% lower in… Continue reading
