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Almost a third of families move house to get kids into a good school
Nearly a third of parents have moved house in England to be in the catchment area for a good school, new research shows. Also 10% are willing to pay in excess of £50,000 for a property in a desirable school catchment area and 24% would consider renting an extra property in the catchment, according to research from price comparison firm Confused.com. It also shows that 18% admit that they started thinking about what school to send their child to before they were even born. The study suggests that inflated house prices in good state school catchment areas actually mean it may be cheaper for parents to send their children to local private schools. Compared to the average house price in England of £275,721, the typical price of a house close to Lowbrook Academy, Maidenhead, one of England’s best state schools, is £481,023. According to calculations, it would be cheaper for families to educate a child at a local private school than to borrow the money needed to move into the Lowbrook Academy catchment area. Many parents are even willing to ‘cheat the system’ to secure places at the most sought after schools in the country. Some 9% admit to having given a false address within the catchment area of a good school to ensure their child got a place there, while 24% would consider renting an additional property in the catchment area for a good school to help secure a place for their child. Other tactics that parents admit to adopting to help get their child into their school of choice include feigning religious observance to get into a well performing local school (7%) or falsely claiming that a sibling already attends a local school to increase their child’s chances of acceptance (4%). Some parents also admit that they would be willing to pay for extra tuition to try and nab a place at a well performing school (16%), while others admit that they would send their child to a nursery simply because it had links to a good primary school (27%). The race to secure a place at a good state school means that some parents are now making decisions on where they will live before their children are even of school age. Some 18% admit that they started thinking about what school to send their child to before they were even born, with a further 12% going as far as putting their unborn child’s name down on a school waiting list. The findings come amid mounting concerns over rising primary school populations leading to a shortage of school places for children. Recent figures from the Department of Education show that six primary schools have classes with just one teacher to 70 children, while nearly 100 have classes with at least 50 pupils. Analysis suggests that at the current rate, the number of pupils in large classes will reach almost half a million by 2020. ‘Although household finances remain stretched, it is significant to see from our research that a number… Continue reading
Wear and tear is most misunderstood issue for tenants and landlords
Fair wear and tear is the most misunderstood area of the whole renting process and agents and landlords still have unrealistic expectations centred on the deductions that can and cannot be made from the tenant deposit, it is claimed. According to the Association of Independent Inventory Clerks (AIIC) it is a commonly held view in the lettings industry that a tenant cannot be held responsible for damage at the end of a tenancy caused by ‘reasonable use of the premises and the ordinary operation of natural forces’. However, while the precise source for this quote is unknown, it is a general guideline that has been accepted across the industry, and the source of most disputes. Recent figures from the Tenancy Deposit Scheme annual survey reveal that cleaning related issues make up 56% of all disputes. Damage to property accounts for 43%, redecoration 30%, rent arrears 17% and gardening issues 13%. It seems that 55% of all disputes are raised by tenants unhappy about the proposed deductions from their deposit and of these, only 21% received all their deposit back. In contrast, 45% of disputes were raised by landlords and agents and of these, only 19% received the amount in dispute. ‘I have lost count of the number of times that a landlord or letting agent has demanded that a property is repainted from top to bottom following a five year tenancy, when the marks on the walls are no more than normal wear and tear,’ said Pat Barber, chair of the AIIC. ‘Everyone has their own view of what constitutes fair wear and tear. Landlords and letting agents may hold the view that a tenant is responsible for repainting a whole property at the end of their tenancy, however the law may not agree. A tenant on the other hand may believe that all the marks, pin holes and damage to the interior walls at time of check out will be covered by normal wear and tear. The same viewpoint is often also applied when assessing damage and wear to the contents of the property and its fixtures and fittings,’ she explained. She pointed out that there are two main things to remember with wear and tear. Firstly, the tenant has a duty of care to return a property in the same condition at the end of the tenancy as found at the start and as listed on the initial inventory report with allowance for fair wear and tear. Secondly, the law does not allow for betterment or ‘new for old’ when assessing the action needed to be taken after a check out inspection. So, if an item was old at check in and after a two year tenancy, there is some additional damage, the law will not allow a landlord to simply replace this item with a new one. Instead, some sort of compensation is allowable towards future replacement…. Continue reading
New mortgage rules in UK next month, including new stress test
The UK mortgage industry will see the largest change to regulation in a decade next month and changes are already being introduced on applications. The changes will be formally implemented on 26 April when the Mortgage Market Review (MMR) rules come into play. They are being introduced to reinforce consumer protection, are overseen by the industry regulator, the Financial Conduct Authority (FCA). With a month to go, lenders, brokers and consumers will be noticing changes in mortgage applications, and the ongoing administration of mortgage accounts, as lenders begin to switch over to the new rules, according to the Council of Mortgage Lenders (CML). The rule changes are wide ranging and include the introduction of a clear distinction between mortgages sold on an ‘advised’ and on an ‘execution only’ basis, with most future sales and variations being advised, requiring staff to be trained and qualified to the required standard to give advice. Also, procedures for giving advice to borrowers will be more detailed. Firms will need to ask more questions to determine what mortgage product is suitable, taking into account individual needs and circumstances, so mortgage interviews could take longer and may even be split into two separate interviews. As well as buyers, remortgagors will also find that the process has changed. People wishing to make changes to their existing mortgages will also be affected, and may be required to go through an advised process and a new affordability assessment. The new rules reinforce measures to assess the future affordability of mortgages, as well as initial payments. Lenders will apply an interest rate stress test to ensure that the loan would still pass the affordability requirements even if the borrower's payments were higher. Lenders will also have to consider the impact of known future changes, such as retirement or redundancy, when assessing affordability. Lenders will have to make a more detailed assessment of the borrower's expenditure, including normal spending as well as credit card and other loan repayments. Borrowers may need to produce more evidence of their spending habits and other commitments than before. It will still be possible to take out an interest only mortgage, but this is likely to remain a niche product. Customers wishing to take out an interest only loan must demonstrate a credible repayment strategy to repay the loan at the end of term and any costs associated with that strategy must be taken into account in assessing affordability. To help consumers prepare for the changes, the CML has been working with the Money Advice Service which will publish online guides in April to explain how applying for a mortgage works under the new system. The CML said it will work with lenders to assess the impact of the new rules and minimise any disruption while they are put in place. Reassuringly, a recent FCA survey found all firms planning to conduct mortgage business, brokers as well as lenders, will be ready to implement the new… Continue reading
