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Half of landlords in England unaware of start date for right to rent rules change
Half of UK landlords are not prepared for the Right to Rent legislation set to come into force on 01 February with some thinking they had another two years to wait. Indeed some 20% believed that they had until April 2017 to prepare for the changes, while 3% believed they had until 2018 to get ready, the research from online estate agent Urban shows. The new legislation, already implemented in the West Midlands, will soon require all landlords and agents in England to check a tenant’s immigration status or ‘right to rent’ in the UK. A failure to prepare could leave landlords at serious financial risk, with potential fines of £3,000 if they do not comply. The survey report also found that only 10% of landlords provide the correct information to tenants at the start of a lease and 90% were unable to identify the characteristics of a House in Multiple Occupancy (HMO). Some 16% were putting themselves at serious financial risk by failing to provide a valid contact address on tenancy agreements; an action which could see contracts being deemed as null and void. One reason to explain the lack of industry knowledge could be due to the rise in accidental landlords who rent property due to circumstance beyond their control such as having inherited property, according to the firm. ‘There has been an influx of new legislation relating to the rental market made in recent years and we know that UK landlords are struggling to keep on top of these changes. Despite knowing many of the basics, many find it difficult to navigate the minefield of changing renting rights and wrongs and this is particularly so for accidental landlords,’ said Adam Male, Urban cofounder. However, despite a lack of understanding in some areas, reassuringly, the majority of landlords were abreast of most other rental fundamentals. For instance, 77% were aware of the need for an up to date Energy Performance Certificate (EPC) and 95% of landlords correctly identified their gas safety responsibilities, 76% also knew the need for a smoke alarm on every floor and 7% even put one in every room. The Landlord Knowledge League Table, a map which ranks the most knowledgeable regions in the UK according to the survey results, found that the most knowledgeable landlords let property in Southampton, while those in Newcastle-under-Lyme were unaware of many key landlord responsibilities. ‘It is great to hear that knowledge about things such as gas safety is a widely understood and implemented landlord legislation, however, there is still a long way to go in educating landlords about the varying aspects of renting,’ said Male. ‘New regulations such as the Right to Rent have the potential to stop back door lettings and create a better environment for all, however, this will only happen if the scheme is communicated to landlords properly. We as an organisation want to do our bit to clean up the industry and help landlords protect… Continue reading
House price growth continued across the UK in November, latest ONS data shows
House prices in the UK increased by 7.7% in the year to November 2015, up from 7% the previous month, according to figures from the Office of National Statistics. House price annual inflation was 8.3% in England, 1.3% in Wales, 0.4% in Scotland and 4.6% in Northern Ireland. The ONS data also shows that house price growth in England were driven by an annual increase in the East of 10.2%, the South East at 9.8% and London also at 9.8%. Excluding London and the South East, UK house prices increased by 5.8% in the 12 months to November 2015. On a seasonally adjusted basis, average house prices increased by 0.8% between October and November 2015 and prices paid by first time buyers were 7.4% higher on average than in November 2014. The continued upward trend is likely to exacerbate affordability issues for first time buyers, according to Steve Bolton, founder of Platinum Property Partners who added that it is a result of the current dearth in property supply. ‘Recent initiatives aimed at addressing the challenges faced by first time buyers show little signs of reversing this trend. The Chancellor’s decision to levy a 3% surcharge on stamp duty for landlords and second home owners may be with first time buyers’ interests at heart, but in reality this is likely to drive up house prices further in the short term as buyers rush to compete purchases before spring,’ he explained. ‘The stamp duty changes and restriction on buy to let tax relief gives the impression that a strong private rental is a barrier to popular home ownership. However, the reality is that by attacking private landlords and increasing buy to let costs, tenants are likely to face rising rents which is a huge barrier to future home ownership,’ he pointed out. ‘The tax grab is targeted purely at landlords with mortgages, excluding the wealthiest landlords. This is unfair and undemocratic, which is why we’re currently co-heading a legal challenge to fight these changes. Having received considerable industry support, as well as raising funding for the initial stage in a matter of days, its clear many landlords agree the tax changes pose a serious threat to the future of the buy to let market,’ he added. Rishi Passi, chief executive of Oblix Capital believes that the lack of supply is unlikely to change in the short term. ‘Better job prospects, wage improvement and recurring delays in interest rate rises mean that it’s likely this surge in house sales and price inflation will continue, for the meantime at least,’ he said. ‘Further investment is needed to encourage house building, stem the supply imbalance in crowded markets, and ensure that small and medium sized developers have access to the finance they need,’ he added. Jonathan Hopper, managing director of buying agents Garrington Property Partners, pointed out that overall first time buyer prices are rising more… Continue reading
Home sales fell in Canada in December, latest index data shows
Home sales in Canada fell slightly month on month in December but are still above where they were a year ago, according to the latest data from the Canadian Real Estate Association. Transactions were down 0.6% overall and fell in slightly more than half of all local markets, led by declines in Calgary, Edmonton, the York Region of the Greater Toronto Area (GTA) and Hamilton Burlington which offset monthly activity gains recorded elsewhere. Year on year price growth continued to range widely among housing markets tracked by the index. The actual, not seasonally adjusted, national average price for homes sold in December 2015 was $454,342, up 12% year on year, but it continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s most active and expensive housing markets. If these two housing markets are excluded from calculations, the average is a more modest $336,994 and the year on year gain is reduced to 5.4%. Even then, the gain reflects a tug of war between strong average price gains in housing markets around the GTA and the Lower Mainland of British Columbia versus flat or declining average prices elsewhere in Canada, the report points out. It adds that if British Columbia and Ontario are excluded from calculations, the average price slips even lower to $294,363, representing a year in year decline of 2.2%. Greater Vancouver with a rise of 18.87% and the Fraser Valley up 14.35% posted the largest gains, followed closely by Greater Toronto up 10.01%. Victoria and Vancouver Island prices increased between 6% and 8% and prices were up by 0.62% in Ottawa, by 1.81% in Greater Montreal and by 3.88% in Greater Moncton. Prices fell by 2% in Calgary and Saskatoon and by 4% in Regina. While the home price declines in Calgary and Saskatoon are a fairly recent trend, prices in Regina have been trending lower since early 2014, the index report points out. An increasingly short supply of listings in Vancouver and Toronto blunted the impact of changes to mortgage regulations announced in December that were aimed at cooling these housing markets, according to CREA president Pauline Aunger. ‘Buyers there had been expected to bring forward their purchase decisions before new regulations take effect in February 2016, but they faced a growing shortage of supply. Meanwhile, supply is ample in many other major urban markets, particularly those where buyers have become cautious amid economic uncertainty,’ she explained. Indeed, December mirrored the main themes of 2015, with strong sales activity and price growth across much of British Columbia and Ontario offsetting declines in activity among oil producing regions, said Gregory Klump, CREA’s chief economist. ‘The recent decline and uncertain outlook for oil prices means that housing market prospects are unlikely to improve in the near term in regions where job market prospects are tied to oil production,’ he added. A breakdown of the figures show that actual, not seasonally adjusted,… Continue reading
