TSI
UK govt plans could prevent selective landlord licensing by councils
Councils in the UK could be prevented from introducing selective licensing for private sector landlords unless there are specific reasons for doing so. The Department of Local Government and Communities believes that for an area to be designated as subject to selective licensing it must contain a high proportion of properties in the private rented sector, in relation to the total housing accommodation in that area. It has announced proposals that would mean that if an area has one or more of four specific conditions, the authority may consider introducing licensing. These include hazards caused by poor housing conditions, an influx of migration and if the area is suffering from a high level of deprivation which affects a significant number of the occupiers of properties. In addition it can be granted if the area suffers from high levels of crime. If the local authority and the local police together say that licensing may contribute to controlling or reducing crime, a licensing system could be considered. The National Landlords Association (NLA) has welcomed the proposals at a time when there is unease about a number of councils introducing their own licensing schemes without providing evidence that they are needed. An example is Liverpool City council which requires landlords to pay upwards of £400, from next month for a five year licence. Applicants will be checked to see if they are ‘a fit and proper person’ to be a landlord. Landlords will also have to meet health and safety guidelines and be seen to be keeping the exterior in a good state of repair and dealing with complaints about anti-social behaviour caused by tenants. Those without a licence could be fined up to £5,000 and see their properties taken over by the council until an alternative licensed landlord is found. But the NLA believes this is heavy handed. ‘The change in the legislation is welcome as it stops local councils introducing unnecessary borough wide licensing schemes, without an evidence base,’ said NLA chief executive officer Richard Lambert. ‘Instead it pushes councils towards resolving specific issues in targeted local areas by outlining the key criteria by which schemes should be implemented and judged. We hope to see this progress before the dissolution of parliament later this month,’ he added. The borough of Redbridge in London has issued proposals to introduce a £500 five year licence for private landlords. It says it will improve the standard of living by providing tenants with the same living conditions as other households and help to maintain a landlord’s register, making it easier to notify landlords and letting agents of their responsibilities, improve their reputation, provide support, reduce anti-social behaviour and fly tipping, and build an area that would be safer and more appealing to live in. In Hastings landlords are challenging plans by the council to introduce a £400 licence and say that there is little evidence that such a scheme is needed. Last December a landlord in Enfield successfully challenged the local… Continue reading
New single house price index for whole of UK planned
Official house price statistics are due for a revamp in the UK where there are currently a number of different indices. This follows are consultation launched last year by the organisations responsible for publishing house price data in the UK; the Land Registry, Land and Property Services, Northern Ireland and the Office for National Statistics Registers of Scotland It looked at a proposed methodology for a single definitive House Price Index (HPI), and gathered views on whether it would meet requirements. It also asked interested parties how removing the indices currently published by Land Registry and the Office of National Statistics would them. The majority of respondents welcomed the proposal for a single official house price index and the clarity this would bring to the use of house price statistics. They also backed the continued publication of supplementary analysis and data alongside the House Price Index, for example, the Land Registry Price Paid Dataset, but also welcomed extra detail if available. Respondents also want a better explanation of the methods used to produce the House Price Index and consistent back data using any new methodology as far back as possible. While the majority thought the proposed methodology was sensible, there were areas that needed further analysis. They were happy with how long the proposed new index would take to publish, accepting the additional time required to process the new index and the greater accuracy and coverage it would provide. But they wanted further clarity on how the new index will be published due to concerns about the same data being published across a number of different websites. As a result a business case has been drawn up recommending the implementation of the proposed new single official house price index and there will be further work to ensure a full and consistent back series for the proposed new index that can be published back to 1969. Officials will also investigate using GOV.UK as the central publication point for the new monthly index publish a final version of the methodology by early summer 2015 if the new index is approved. Continue reading
Edinburgh prime housing market heads sales growth in Scotland
Estate agents in Scotland had expected to see a house price boom following the No vote in the independence referendum last September but this has not happened, it is claimed. However, there are some areas that are doing well, according to the annual Scottish Property Briefing report from Strutt & Parker. It says that the luxury new build market has definitely taken off in central Edinburgh and the firm forecasts continuing growth in this area. It also predicts a 4% to 5% growth in the £400,000 to £1 million mature markets, although selling properties over this price will continue to be challenging and there is likely to be 0% growth in this area. Last year there were 66 house sales of over £1 million in Edinburgh, which represented almost half of all Scottish properties in this range, of which Strutt & Parker sold almost 20% including one house at almost £4 million which is one of the Scottish capital's most expensive sales in recent years. According to Blair Stewart, who heads up the firm’s Edinburgh residential department, despite the new Land and Buildings Transaction Tax and continuing political uncertainty there are still many people willing to invest and live in the city. In the Country House market over the last year there has been a 27% increase in prime market transactions of £400,000 and over. Areas that have performed well have been those within commuting distance to Edinburgh, with a 50% increase in transaction numbers in Fife, a 69% increase in the Borders and an 85% increase in Midlothian. ‘The legacy of the Referendum continues to affect the prime country house market with continued uncertainty. Land and Buildings Transaction Tax will cause the top and middle of the prime market to readjust and capital values are expected to reduce by 2% to 4%,’ said Malcolm Leslie. ‘It is also expected that some would be buyers will make the most of their existing home by extending or renovating rather than moving home and incurring the increased tax. The quality of life that a Scottish country house can offer, together with the increasing value gap between southern England and rural Scotland, will encourage inward investment,’ he explained. ‘Finally I predicted that with the stability in the macro economic situation, the long term prospects for growth in the prime country house market look good,’ he added. There are two major factors affecting property prices in the UK, according to Stephanie McMahon, head of Strutt & Parker's research team. ‘Emerging countries with weak institutions has led to a flight of money from these markets to places such as the UK that has, for example, very strong property rights,’ she said. ‘Secondly, the population growth and rise in single person households leads to demand outstripping supply. However, the country as a whole is affected differently. Prices in London have risen by 35% since 2007, yet in Scotland it has fallen by 7%,’ she added. She pointed out that… Continue reading
