Tag Archives: real estate
Warning over use of photos in tenancy disputes
The use of technology in inventories appears to save time and money, but UK lettings agents and landlords are being warned that in reality it is not full proof. Often technology does not allow for the inclusion of sufficient detail to provide indisputable evidence of the original condition at the start of a tenancy, according to research by My Property Inventories. The perception of inventories by some lettings agents is that inventories can be very long, time consuming and somewhat of a laborious process. As a result, several landlords and management companies opt for the use of technology in inventories believing it will save them time and money. The use of technology in inventories claims to help landlords and management companies to complete inventories in a matter of minutes, with the ability to add large quantities of photographs, which can provide evidence in tenancy, dispute claims. But according to Danny Zane, director of My Property Inventories, in many tenancy dispute cases, the adjudicators are likely to reject some technology based inventories, as they cannot deliver the level of detail required which means that the landlord can lose hundreds of pounds in lost cases. ‘Many landlords and agents are using digital evidence to replace essential written descriptions in inventories, at check-in and check-out, leaving landlords exposed to potentially costly disputes over damage and other issues. The law clearly states that the deposit remains the tenant’s money and that they are entitled to get it back at the end of their stay, provided they have met the terms of the tenancy agreement, so the onus lies with the agent or landlord to provide proof of any proposed deductions,’ he said. ‘Without an accurate and properly detailed inventory, a landlord has no evidence to prove that the property has been damaged in any way during the tenancy and therefore will find it almost impossible to withhold any deposit money from the tenants. A glossy inventory that relies heavily on photographs will be of little use in a dispute. In fact, there is no point in producing a picture book for an inventory, with very little proper description and hundreds of photographs. Inventories like these just do not provide enough detail,’ he explained. ‘Photography and video are great for large areas of damage such as carpet burns, serious damage to worktops and interior décor etc. However, they are not so good for showing really fine detail of the sort of problems that occur most frequently on a check-out, such as small chips and scratches in sinks and baths, knife marks on worktops, scratches to halogen hobs. All of which will cause financial loss to the landlord if negligence can’t be proved,’ he added. The firm points out that inventory reports should contain a full description of a property and its contents, with detail on… Continue reading
UK residential mortgage market becoming too restrictive, study suggests
Renewed optimism in the UK mortgage industry for growth in 2015 is being overshadowed by the view that the market has become too conservative, it is claimed. Post financial crisis regulation is hampering the market and brokers are reporting difficulties in meeting customer needs, according to the latest research from the Intermediary Mortgage Lenders Association. While optimism is returning some 84% of brokers were unable to help at least one customer in the last six months, up from 78% in July 2014, the report points out. Products for the self-employed or those seeking to borrow into retirement are among those in short supply and people with low incomes or dependents have been most affected by reduced access to finance. Overall 74% of brokers took the view that market conditions are worsening, which is backed by 65% of lenders. It comes despite improving sentiment towards market conditions following a period of changes to lending criteria. IMLA’s previous research in July 2014 found 45% of brokers and 33% of lenders reporting that market conditions were worsening. This followed the implementation of the Mortgage Market Review (MMR) in April and with new macro-prudential controls on the horizon. Their pessimism has since softened with just 23% of brokers and 21% of lenders feeling the same way in January 2015. Some 51% of brokers, up from 41% in July, and 53% of lenders, up from 44% in July, now feel market conditions are currently improving. However, IMLA’s research reveals 84% of brokers were unable to source a mortgage for at least one client during the last six months, up from 78% who said the same in July 2014. A breakdown of the figures shows that 53% of brokers were unable to help a client with adverse credit, 53% were unable to help an interest-only borrower, 50% were unable to help a customer seeking to borrow into retirement and 46% were unable to help a client who was self-employed or had an irregular income. Overall, brokers and lenders both identify low income borrowers and those with dependents as the two consumer groups who have been most impacted by reduced access to finance following the MMR. Among the new rules, interest rate stress tests are seen to have had the biggest effect in reducing the amount people can borrow. More brokers and lenders report that the new rules are having an impact than was the case in July. Some 39% of brokers feel product availability has increased following the MMR, while just 18% feel it has reduced. Yet opinion is more evenly split on product flexibility with 27% of brokers feeling this has improved but 23% that it has not. ‘Regulation is vital to ensure that mortgage lending is safe and in proportion to consumer needs and the wider economy. But when families with dependents are among those who find themselves at a disadvantage, there are legitimate concerns that the pendulum has swung too far as a result of successive, incremental measures,’ said… Continue reading
Millions of home owners suffer damage to neighbour’s renovations, research shows
Some 3.7 million home owners in the UK have suffered property damage due to neighbour renovations in the last five years with only a third accepting responsibility for damages, new research shows. The repair bill for damages across the country totalled more than £1.5 billion with just 33% of neighbours accepting responsibility and 30% blaming someone else, according to the research from Direct Line’s SELECT Premier Insurance. Some 17% did not directly confront neighbours about damage to their property, surprising given that the average cost to repair damages was £533 and for 8% more than £1,000 was required to repair the damage. According to those whose damaged property incurred a cost to repair, the majority of their neighbours, 53%, shared at least half of the cost of repairs and 14% paid over 80% of the costs. However, 19% of neighbours paid nothing towards damages caused by their home makeovers. ‘In the UK we take pride in our homes with many seeing extending and renovating their homes as a way to improve their living standards. As such it is not surprising that in the 12 months to September last year we saw more than 55,000 residential planning applications made in England with more than three quarters of them accepted,’ said Nick Brabham, head of SELECT Premier Insurance. ‘If you or your neighbours are thinking about starting a home makeover project it is worth assessing and discussing the risk of damage to adjacent properties with neighbours. It is also crucial to check whether your home insurance policy covers damage caused by neighbour renovations, otherwise you could be left with a hefty repair bill,’ he added. Damage to fencing was the most common ailment for victims of over exuberant home transformation projects, with 43% suffering damage. A quarter of people highlighted damage to windows and damage to garden features such as fountains and sheds, making these the next most common casualties of neighbour renovations. Some 24% suffered damage to gates, 22% damage to roofs, 22% damage to plumbing include leaks, flooding and moisture, 21% damage to contents, 20% damage to plants, 19% damage to exterior walls and 17% damage to a driveway. Home renovations have also caused other annoyances to neighbours with 26% enduring noise disturbances and 14% experiencing reduced parking. This was a major issue in already congested London where 26% went through reduced parking whilst their neighbours renovated their properties. Continue reading
