Tag Archives: real estate
Inventory disputes falling on the side of landlords in UK
New research shows that for the first time since the start of the tenant deposit schemes in 2007 in the UK more landlords and agents are being awarded 100% of the disputed amount at adjudications than tenants. The figures from the Tenant Deposit Scheme Annual Review 2015 show that 19.8% of all disputes raised by landlords or agents resulted in 100% pay outs to them, while 19.2% of all disputes raised resulted in 100% pay outs to tenants. The remaining 61% of cases saw the disputed money split between the parties. This compares with 2014 when 20.25% of all disputes raised by tenants resulted in 100% payouts to them, compared with 18.21% to landlords and agents. In previous years, tenants have always been awarded the full deposit more often than landlords and agents. Although adjudicators do not seek to decide in favour of one side or the other, many landlords and agents believe that the Courts are biased towards tenants. According to Jax Kneppers, chief executive officer of Imfuna, these results are a sign that the landlords and agents are presenting better documented evidence at adjudications. ‘For the first time, landlords and agents are now more successful than tenants at winning 100% of deposits. This is a significant achievement, an 8.5% increase year on year,’ he said. ‘More and more landlords and agents are recognising the power of digital professional inventories and mid-term inspections and this is why the balance is starting to shift. Many landlords and agents are ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a thorough check-in and check-out report,’ he explained. He also pointed out that historically many tenant disputes have gone in favour of tenants, as there was simply not enough evidence to support the landlord or agent’s damage claim and the most common mistake in most inventories is the lack of detail. Often there is not enough appropriate photographs and any accompanying description to show the condition of the property and its contents. For example, many landlords and agents fail to record the condition of sinks and bathroom fittings, as well skirting, doors, floor coverings and kitchen units. If an inventory is not a professional and thorough report on the property, then it is not worth the paper it is written on. ‘Inventory reports should contain a full description of the condition of the property, noting detail on every aspect of damage and its location at the start of a tenancy. Good photographs provide vital evidence and should be of a high quality when printed up to A4 or A3 size, so that any damage can be clearly seen,’ said Kneppers. ‘Unless landlords and agents have a water tight inventory, they are at risk of disputes and expensive repair bills. Our research shows that landlords and agents who… Continue reading
Demand for single family homes in the US rising
Over three quarters of households in the US would purchase a single family home if they were to buy in the next six months, and 79% of renters would choose to buy outside of an urban area, new research shows. The latest quarterly consumer survey from the National Association of Realtors also shows that confidence about now being a good time to buy is waning amongst renters, particularly in the West where prices have solidly risen. Some 85% of current home owners and 75% of renters said they would purchase a single family home, while only 15% of home owners and 21% of renters said that would buy in an urban area. Lawrence Yun, NAR chief economist, said that the survey findings call attention to the glaring need for more supply of single family homes. ‘The American Dream for most consumers is not a cramped, 500 square foot condo in the middle of the city, but instead a larger home within close proximity to the jobs and entertainment an urban area provides,’ he explained. ‘While this is not a new discovery, supply and demand imbalances and unhealthy levels of price growth in several metro areas have made buying an affordable home an onerous task for far too many first time buyers and middle class families,’ he added. According to Yun, it’s time for home builders to double their focus on constructing single family homes. With millennials increasingly buying in the suburbs tight inventory and affordability concerns will likely worsen without significant headways made in housing starts in relation to job creation. The survey found that 82% of home owners believe now is a good time to buy, no change from the previous survey in December 2015 but the number of renters thinking the same fell from 68% to 62%. ‘A high number of home owners are expressing that it’s a good time to buy and this sentiment is no doubt being fuelled by the $4.4 trillion in housing equity accumulation in the past three years,’ said Yun. ‘On the other hand, accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters,’ he pointed out. Overall, respondents over the age of 65, those living in the Midwest and those with incomes over $100,000 were the most optimistic about buying now. Among current home owners 56% thought it is a good time to sell compared to 61% in the fourth quarter of 2015. Amidst steep price increases and tight supply, respondents in the West were the most likely to think now is a good time to sell, while also being the least likely to think now is a good time to buy. Among all households in the survey, less than half believe the economy is improving at 48%, down from 50% in last quarter’s survey. Renters, those living in urban areas and respondents with lower incomes were the most optimistic. Across all age groups, when asked… Continue reading
Analysis of housing data shows Dublin residential market had a see-saw 2015
Last year is generally regarded as having been one of growth for the residential property market in Ireland but a new analysis shows how Dublin experienced a slowdown towards the end of 2015. Overall sales increased by 10% compared to 2014 but a closer examination of the detailed monthly data from real estate firm Savills reveals a very different picture. Year on year growth in housing transactions fell continuously throughout 2015, slipping from a positive 75% in January to an outright decline of 18% in December. The report explains that this reflects two major policy changes which impacted on demand. Firstly, generous Capital Gains Tax (CGT) incentives for investors were removed on 31 December 2014. As this deadline approached investors rushed to complete deals, causing transactions to spike in late 2014 and early 2015 as some deals carried into the New Year. After that, however, investor numbers retreated to a more normalised level. The second important policy change was the introduction of new mortgage lending restrictions by the Central Bank. Following a preliminary announcement in October 2014 buyers rushed to secure old style loan approvals in late 2014 and the opening weeks of 2015. These were deployed in the first half of 2015, boosting sales. ‘However the true impact of the macro-prudential rules began to emerge in the second half of 2015 as some people were priced out by restrictions on how much they could borrow. Indeed, these dynamics can be seen in the regional pattern of transactions growth,’ the report says. Because investors were more focused on Dublin, this market saw the biggest uplift from the impending CGT deadline in late 2014 and early 2015. Subsequently, however, Dublin suffered the largest slowdown in sales as the frontloading of investment deals left a vacuum in 2015. ‘Similarly, because absolute price levels are higher in Dublin, the Central Bank rules are more binding in this location. This caused transactions to slow more sharply in Dublin than elsewhere when the rules impacted later in the year,’ the report adds. The analysis report also shows that the rate of house price growth in Dublin slowed quite dramatically during 2015 from 21.6% in January to just 2.6% by the end of the year. It says that part of this was due to base effects as the average Dublin property is now €87,000 more expensive than at the low point of the market in the fourth quarter of 2012. ‘Therefore the same absolute price increase is now gradually leading to a smaller and smaller percentage change,’ it explains. But part of the slowdown is also attributable to removal of the CGT incentive. ‘As investors had been more focused on Dublin than elsewhere, withdrawal of this tax break created a bigger vacuum in the capital,’ the report points out. But the most important factor has been the Central Bank mortgage rules. The average property in Dublin costs around 54% more than that outside the capital. ‘Without a… Continue reading
