Tag Archives: yahoo
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
UK financial watchdog says mortgage advice can be improved
Most people in the UK get suitable advice when they take out a mortgage but there is still room for an improvement in standards, according to a review by the UK’s financial watchdog. Two studies from the Financial Conduct Authority (FCA) found that many lenders have taken significant steps to provide advice for the first time. These firms, and those that have always provided advice, should now focus on delivering consistently good outcomes for customers. They also found that while there was no evidence of systemic customer detriment, some firms were failing to take reasonable steps to obtain sufficient, relevant information about customers’ needs and circumstances before making recommendations. Although 59% of advice provided to customers was assessed as suitable, with only a small number of cases assessed as demonstrably unsuitable, the basis for 38% of recommendations was unclear. The consumer research highlighted that some customers place the greatest importance on the initial monthly payment to the detriment of other factors. This can dictate whether they think a mortgage is a ‘good deal’ or not. ‘A mortgage is a significant undertaking for anyone. It is vital that customers are able to get suitable advice and a positive experience when deciding on their options. Some firms were able to provide this, but not all,’ said Linda Woodall, acting director of supervision at the FCA. ‘Although we welcome the considerable work of those firms delivering advice for the first time, and particularly those that have proactively identified issues within their own processes, there is still scope for improvement. We’ll continue working with firms to ensure they deliver good outcomes for consumers,’ she added. Following the review, the FCA said it will continue to work with industry to address the issues identified. Individual feedback to firms visited as part of the study has already been given, together with actions required as a result of the findings. Some firms assessed had already independently identified issues with their advice processes, and were making changes to improve their service to consumers. The review also found that many lenders had made significant efforts to deliver advice for the first time by investing in systems, front line staff and operational capability. Some firms were relying on highly structured processes. This often resulted in lengthy, stilted and repetitive conversations with consumers which limited the adviser’s ability to engage effectively and properly assess needs and circumstances. By contrast, other firms delivered advice with little or no structure, resulting in inconsistent quality of advice and a higher chance of unsuitable recommendations. The best performing firms have demonstrated that it is possible to strike an appropriate balance. The review of advice and distribution forms part of the FCA’s wider programme of mortgages work. Its thematic review into responsible lending commenced in April 2015 and from autumn this year, the FCA will begin a wider assessment of barriers to competition, with a view to launching a market study in early 2016 on those aspects of the… 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
