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English landlords who don’t follow new immigration checks face jail
Landlords in England who repeatedly fail to check a new tenant’s immigration status before agreeing a lease could face up to five years in jail, it has been confirmed. As part of a wider crackdown on immigration, new rules for landlords mean that they will also be expected to evict tenants who lose the right to live in England. They will be able to end tenancies, sometimes without a court order, when asylum requests fail, according to Communities Secretary Greg Clark as he announced that the government will not tolerate rogue landlords who make money out of illegal immigration. The changes which hare part of the new Immigration Bill and follow a pilot in the West Midlands come as the British and French governments struggle to deal with a migrant crisis in Calais where large numbers of people are making nightly bids to cross the Channel to reach the UK. Clark explained that under the proposals for landlords in England, the Home Office would issue a notice when an asylum application fails that confirms the tenant no longer has the right to rent property. He also said that a blacklist of rogue landlords and letting agents will be created to allow councils to keep track of those who have been convicted of housing offences and ban them from renting out properties if they are repeat offenders. Richard Lambert, chief executive of the National Landlords Association, described the proposals as a welcome step forward, although he said he is ‘slightly concerned’ that the 40 year old principle that it has to be a court that ends a tenancy is changing. He suggests that there is a danger that those being evicted end up doing something desperate such as barricading themselves inside a property. ‘I think that we need to think through the consequences of the kind of systems we are putting into place,’ he added. David Cox, managing director, Association of Residential Letting Agents, welcomed the proposals in principle. ‘The plans will help to weed out the minority of rogue landlords who exploit vulnerable immigrants for their own financial gain and, with the introduction of a new five year imprisonment penalty, will help to deter other such unscrupulous individuals from entering the private rented sector,’ he said. ‘The proposals also build upon the Right to Rent checks as imposed by the Immigration Act 2014, which we expect to be rolled out nationally following a pilot scheme in the West Midlands. We will be organising training sessions for our members to ensure they are fully prepared and understand the new rules and we urge all letting agents to ensure they are ready for the impending roll out,’ he added. Continue reading
Prime central London sales up but still 32% down on a year ago
Sales in the prime central London property market increased by 21% in the second quarter of 2015 compared to the previous quarter but are 32% lower than a year ago, according to the latest quarterly data. Prices have fallen marginally, down 0.6% in the second quarter compared to the first three months of the year, according to the latest prime central London report from real estate firm JLL. But it explains that the sales market continues to show resilience and, although cautious, demand has recovered somewhat since the slump before the general election in May. But the Stamp Duty Land Tax (SDLT) reform continues to have an effect on the market and buyers and sellers are still assessing the impact of these changes, particularly in the £5 million to £10 million price range. Meanwhile, the sub £2 million market has been the least affected by the election, SDLT, and mansion tax fears with prices rising 2.2% year on year. ‘While transaction levels remain low, particularly in the £3 million to £7 million sector of the prime central London market, there is undoubtedly a noticeable flight to quality,’ said Richard Barber, sales director at W.A.Ellis, part of the JLL Group . ‘Affordability issues, in the face of increased stamp duty costs, have affected purchaser confidence, but high prices per square foot are still being achieved for the most exclusive properties,’ he added. The prime central London lettings market has seen a rise in demand from tenants, while levels of supply have remained high throughout the second quarter, the report also shows. It says that London’s improved economic conditions are causing a rise in rental values, up 1% compared to the first quarter and 1.5% year on year. Overall, lettings transactions have increased by 4% in the second quarter as election uncertainties resulted in some buyers choosing to rent instead. However transactions are down 8% year on year. ‘There has been an increase in rental stock available, mainly as a result of landlords awaiting the outcome of the general election and deciding now to let instead of sell, and these higher stock levels have meant that competition between landlords has increased with properties in optimal condition letting first,’ said Lucy Morton, letting director and head of agency at W.A.Ellis. ‘This has also meant that the market has become very price sensitive with more people turning to the rental sector after being unable to secure finance or find the right property to buy,’ she added. The report concludes that overall, the outlook for the prime central sales market is one of confidence in light of the stable government and low interest rates, with prices expected to increase by 1.5% during 2015, while the lettings market will see rental values increase by around 3% with more people preferring the flexibility of renting. Continue reading
Prime property market across UK not picking up, new analysis suggests
Prime property outside of London increased by just 0.6% in the second quarter of the year, suggesting there has been little sign of a post-election bounce at the top end of the UK housing market as buyers remain cautious. A lack of upward pressure on prices has been consistent across all regions beyond London, with a lack of urgency among buyers in part stemming from a relatively sluggish market in the capital, according to the latest prime residential market report from real estate firm Savills. The report says that this has combined with relatively high levels of stock available on the market, built up largely as a result of a relative dearth of transactional activity in the run up to the general election. ‘For the time being this has slowed the ripple effect, despite the significant value gaps between London, the commuter zone and beyond, which would normally drive a flow of demand through the different segments of the prime housing market at this stage in the cycle. As a result, annual price growth in the prime regional markets stands at a subdued 1.6% on average,’ it explains. Though the threat of a mansion tax has now evaporated, the report suggests that the market continues to be held back by tax considerations. ‘In London and at the top end of the country market, the increased cost of stamp duty, following the Autumn statement of December 2014, remains a barrier to both price growth and activity,’ is says. Illustrating this fact, in the regional housing market over £2 million prices are 1.7% below their June 2014 level. In Scotland the introduction of the Land and Buildings Transaction Tax, which replaced stamp duty in April has introduced higher rates of tax at lower price points, has caused prime values to fall by an average of 0.6% in the past quarter and by 0.9% year on year. In England and Wales the markets under £1 million and between £1 million and £1.5 million have been less affected by these tax concerns but more affected by weak buyer sentiment and the restricted availability of mortgage debt feeding up from the mainstream markets. The report points out that despite a continued benign interest rate environment, transactions in the mainstream market appear to have plateaued at around 1.2 million per annum. With the mortgage regulations restricting the amount of debt prospective buyers are able to obtain and restricting their ability to trade up the market, this is still well short of pre-crunch norms, it adds. Although mortgage availability has a less significant direct impact in the prime markets, it will impact on some buyers in their 30s and 40s, the report also suggests. ‘While restricting the amount they can borrow, this may act as a catalyst for them to move into the commuter zone as they look to stretch their debt and equity further in less expensive markets,’ it explains. While sellers need to remain realistic in… Continue reading
