TSI
Many UK tenants feel they are ripped off by landlords and agents
Private rental sector tenants in the UK feel they are being ripped off by landlords and agents, especially on fees at the start of a tenancy, new research suggests. The study shows that 65% of respondents believe they have faced unreasonable fees and charges, according to the poll by Property Let By Us. A further 73% said they have had unreasonable deductions from their deposit and one in six tenants complained about unreasonable rent rises. According to Jane Morris, managing director of Property Let By Us there are a few agents charging excessive fees, but an Advertising Standards Authority ruling in 2014 has made the industry much more transparent with charges. ‘However, there is more that the industry could do to educate tenants on how fees are charged and for what. Many tenants don’t understand what they are being charged for and why. Honest and open communication with tenants is key for both landlords and agents. If all fees and charges are explained to tenants, they are more likely to be comfortable them,’ she explained. She also pointed out if letting agent fees are banned by a potential Labour government, tenants could be faced with higher rents, with the charges being absorbed. ‘The bottom line is that essential costs relating to inventories, reference checks and administration have to be carried out before the tenancy can start. Banning fees will not save tenants cash in the long run,’ she added. Continue reading
Flagship Help to Buy taken up by almost 90,000 UK buyers
Help to Buy, the UK government’s flagship housing scheme, has helped almost 90,000 people to buy a new home since it was created in 2013, the latest official figures show. Overall, since the launch of the Help to Buy equity loan and mortgage guarantee schemes, some 80% of scheme completions have been made by first time buyers and the average house price was £185,000, significantly below the national average. Some 88,420 people have bought a new home and 94% of Help to Buy completions took place outside of London while over half of Help to Buy completions have been for new build homes. Together with the government’s Help to Buy: New Buy scheme, which offers 95% mortgages for those buying new build properties, the scheme is ensuring the long term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new build properties, helping to contribute to the 37% rise in private house building since the launch of Help to Buy. With almost all completions outside London, the highest number of homes have been through the mortgage guarantee scheme in the North West region. The equity loan, the scheme for new build properties, is particularly high in the South East region. Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest. In London the scheme makes up just 1.3 % of all mortgage lending compared to an average of 3% across the country. ‘Thanks to Help to Buy, this government has helped thousands of hard working people that otherwise would have been locked out of home ownership get the keys to their own home and enjoy the security that comes with it,’ said Prime Minister David Cameron. According to Home Builders Federation executive chairman, Stewart Baseley, Help to Buy has helped tens of thousands of people onto the housing ladder who otherwise would have struggled to meet their ambition of home ownership. ‘First time buyers in particular are taking advantage and the scheme is helping people in every part of the country. The resultant rise in demand is allowing builders to increase much needed house building levels. This is turn is creating tens of thousands of jobs and boosting local economies the length and breadth of the country,’ he added. Communities Secretary Eric Pickles believes that Help to Buy and the recently announced new Starter Homes initiative offering a 20% discount on newly built homes for first time buyers, will continue to offer a strong alternative to the Bank of Mum and Dad. Continue reading
More home being built in New Zealand, mostly apartments
The number of new home consents in New Zealand was 3.6% higher in January 2015 compared with the same month the year before, new data shows. The trend for new dwellings is rising and is at its highest level since July 2007. However, excluding apartments, it was 6.8% lower, the figures from Statistics New Zealand also show. Also, the seasonally adjusted number of new home consents decreased 3.8% in January 2015 and excluding apartments, this number fell 7.5%. Business indicators manager Neil Kelly pointed out that in unadjusted terms, nearly $1 billion of building work was consented in January, some $645 million of residential work and $351 million of non-residential work. More than $15 billion worth of building work was carried out in 2014, some $2.8 billion higher than in 2013, a 23% increase. Together, Auckland and Canterbury accounted for $9.7 billion worth of the building work in 2014, nearly two thirds of the national total. After removing price changes and seasonal variations, overall building activity volume edged up 0.3% in the final quarter of 2014. Residential building activity led with 4.3% growth, while non-residential building activity fell by 5%. ‘The trend for residential building activity has grown by two thirds since the September 2011 quarter. However the current level is 7% lower than the series peak more than 10 years ago in the June 2004 quarter,’ added Kelly. Continue reading
