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UK govt to crackdown further on rogue landlords
A new £5 million fund for councils is being made available by the UK government to stop rogue landlords who let out substandard homes and make tenants’ lives a misery, it has been announced. The worst affected councils which have a large proportion of private rented stock in their areas and significant problems will be able to bid for a share of the fund to tackle irresponsible landlords who provide unsafe living conditions, exploit innocent tenants and blight communities. The fund will also target ‘beds in sheds’ which are often rented to vulnerable migrants by ruthless landlords who charge them extortionate rents to live in cramped conditions. Councils can use the money to increase inspections of property, carry out more raids, initiate more enforcement action and prosecutions, and demolish sheds and buildings that are prohibited. ‘We’re determined to keep the country building and increase the supply of good quality homes that families want, both to buy and for rent. Key to this is rooting out the minority of landlords in the private rented sector that let out poorly maintained and unsafe properties to vulnerable tenants, making their lives a misery,’ said Communities Secretary Greg Clark. ‘Council led efforts mean more than 3,000 landlords have faced enforcement action and even prosecution in the last two years. This £5 million funding, combined with the extra powers we’re bringing forward, will help them go even further,’ he added. Housing Minister Brandon Lewis pointed out that while the majority of tenants are happy with their home, the private rental sector is still afflicted by too many rogues who rent dangerous, dirty and overcrowded properties without a thought for the welfare of their tenants. ‘That’s why we are inviting the worst affected councils to come forward and apply for extra funding, so they can root out the cowboys and rogue operators. The government is determined to crack down on rogue landlords and this funding, alongside measures in the Housing and Planning Bill, will further strengthen councils’ powers to tackle poor quality privately rented homes in their area,’ he explained. There are more than 4.4 million households renting privately and since 2013 nearly 40,000 inspections have taken place in properties, with more than 3,000 landlords now facing further enforcement action or prosecution. ‘The measures will not hamper the vast majority of landlords who are diligent and responsible. They avoid strangling the industry in red tape which would deter investment, increase rent and reduce choice for tenants,’ added Lewis. Additional measures being taken forward in the Housing and Planning Bill include seeking banning orders for the most prolific and serious rogue landlords, issuing penalty notices of up to £5,000 for breaches, a new process for abandoned tenancies, which would allow a landlord to recover the home without the need to go to court and creating a database of rogue landlords and letting agents. According to Landlord Action, which has been part of Government think tank on buy to let legislation, is backing… Continue reading
Country house market in UK above £2 million seeing recovery
The UK’s country house market has seen a marked recovery in the £2 million plus sector in the third quarter of 2015 compared to the previous two quarters, according to the latest research. The analysis report from Strutt & Parker also shows that sales levels are now not far off where they were in the fourth quarter of 2014, suggesting that the market uncertainty from the general election has perhaps filtered out. Strutt & Parker’s UK outlook for the remainder of 2015 looks positive and it predicts that there will be sufficient growth in the final quarter of the year to hit the forecast of 5.0% for 2015. Growth over the next few years is also forecast as positive with 5% per annum anticipated. There are, however, uncertainties for the UK market and the upcoming European Union referendum and potential interest rate rises adds further pressures. Despite this, sensibly priced and good quality properties, both regionally and in prime central London, will continue to do well, the firm believes. ‘There remains some uncertainty over the near term outlook for the national housing market. The gradual strengthening in growth within the UK economy is still being met by some caution against risk and interest rates are expected to begin rising early to mid 2016,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘Once rates do begin to rise they may have a dampening effect on the national housing market, most specifically in the mainstream markets where the majority of purchases are dependent upon mortgages,’ she explained. ‘However, two factors should cushion this impact. First, interest rate rises are likely to be gradual, estimated to reach circa 2% to 2.5% over the next five years. Secondly, the majority, 75% to 80%, f recent mortgages have been at fixed rates. Both of these factors should mean that any adjustments in purchasers’ behaviour should also be gradual,’ she added. Her colleague, James Mackenzie, head of the country house department at Strutt & Parker, also agrees that the prime country house market is showing signs of improvement with a lack of high value property on the market and growth in demand over the quarter. ‘However, buyers are incredibly price sensitive as the cost of stamp duty is still a major hurdle. We are hopeful for a normalised autumn and winter,’ he added. Guy Robinson, head of regional residential agency at Strutt & Parker, pointed out that activity in the summer and early autumn months has shown encouraging signs of an improving market. ‘Last quarter, there was strong demand from buyers which has translated into agreed sales. The number of new instructions has remained static, consistent with the previous period,’ he said. Continue reading
House prices in England and Wales see fastest annual growth for six months
The annual rate of house price growth across England and Wales increased to 5.2% in October, the fastest increase for six months, according to the latest property index. Average property prices increased 0.9% or £2,500 last month, equal to £80 a day, to £288,421 and it is the tenth record high recorded this year, the data from the Your Move Reed Rains index shows. The price growth is once again being driven by London, as values in the city increased £24,636 in the last year, the index also shows. Excluding London and the South East of England takes the annual price growth to 3.9%. As far as sales are concerned it was the strongest October since 2007, with the north seeing biggest sales boost due to better levels of supply on the market. But sales of homes worth over £1.5 million were down 35% year on year with this sector still being affected by the Stamp Duty change from almost a year ago. East Anglia saw the strongest year on year rise of any region, with growth of 6.2%, taking the average price for a property in the area to £241,284, Richard Sexton, director of e.surv chartered surveyors pointed out. He also pointed out that in London house prices are recovering from the more subdued growth seen during the second half of 2014. Annually, there has been a 4.4% price increase in the capital, with property values rising by an average of £24,636. However, most of the recent price increases have emanated from the lower rungs of the market with Harrow, Newham and Barking and Dagenham showing the strongest annual growth. ‘These rapid rises are currently outweighing the decline at the top of the market, carrying average values higher. While many commentators are forecasting significant house price growth in London and the UK in the coming years, these need to be viewed in historical context and we’re unlikely to see a return to the unsustainable rises of the past decade,’ said Sexton. ‘Most current predictions are still a slowdown from the past five years of growth, and overall since September 2005 average prices across the country have soared 43.5%, while average property values in London have more than doubled, jumping 104%,’ he added. He also explained that properties worth over £1.5 million have been hit with a stamp duty increase, currently set at 12% of the portion of the property’s value above £1.5 million, up from 5% previously. ‘As a result, sales of homes worth more than £1.5 million have fallen by 35% in the third quarter compared to a year ago. This tax has really put the shackles on the prime market in the capital, as three quarters of these sales since January 2014 took place in London,’ said Sexton. ‘The implications can be seen in the 12.6% annual drop in prices in Kensington and Chelsea, while prices in the City of Westminster have also fallen, 5.5%… Continue reading
