Uk
Changes for rental properties lettings in New Zealand announced
Changes in New Zealand mean that every rental property must reach specified insulation standards by July 2019 and have smoke alarms fitted. Housing minister Nick Smith has announced new rental regulations which all landlords must meet. Only properties where it is physically impractical to fit insulation will be exempt. The smoke alarms will become obligatory in July of next year but tenants will be responsible for replacing batteries and informing landlords of any defects that prevent the alarms from working. Smith also outlined new powers to prosecute landlords for breaking tenancy regulations, particularly where there is risk to the health and safety of tenants and the rules will allow tenants to take concerns to the Tenancy Tribunal without fear of retaliatory evictions. Under proposed changes to the Residential Tenancies Act, landlords will need to make sure their rental properties have ceiling and underfloor insulation that meets the new standard.The new requirements will apply from July 2016 for government subsidised social housing, and from July 2019 for all other rental properties, including boarding houses. The regulations will make landlords responsible for installing operational smoke alarms, with tenants responsible for replacing batteries and notifying landlords when there is a defect. This will come into effect from 1 July 2016. The proposed standards require a minimum of one working smoke alarm in a hall or similar area, within three meters of each bedroom door. Help will be available through the Warm Up New Zealand: Healthy Homes projects which provides free ceiling and underfloor insulation for low income households that are at high risk from illnesses linked to cold, damp housing. Funding for this programme is only guaranteed until June 2016. 'The Ministry of Business, Innovation and Employment will have new powers to investigate and prosecute landlords for breaking tenancy laws as part of these reforms, particularly where there is risk to the health and safety of tenants,' said Smith. 'The new standards are part of the Government's plan to ensure all tenants can live in safer, warmer and healthier homes. Insulated homes are easier to heat, and smoke alarms are proven to reduce the risk of death from fires by up to 50%,' he added. The regulations will also include a new 10 day process to enable landlords to 're-tenant' abandoned rental properties, where the tenant has no intention of returning. The current process can take up to six weeks, and often leaves landlords significantly out of pocket. Continue reading
Key commuter city sees prime property market perform best in UK
Winchester, a popular commuter city within reach of London has seen its prime property prices outperform the wider UK market, new research shows. Prices in the city, famous for its cathedral and history, increased by .4% between April and June, taking the annual change in prices in the city to 6.3%, according to data from international real estate firm Knight Frank. Such price growth means that Winchester has comfortably outperformed the wider UK prime market where values have risen by 0.9% on a quarterly basis and 2.3% on an annual basis. Winchester has also registered stronger price growth than other prime city markets including Bath, Bristol and Oxford. A shortage of prime properties for sale, combined with strong demand for homes in thriving town and city markets, has contributed to this out performance, according to the Knight Frank analysis report. It shows that the number of properties for sale in the city was 17% lower at the end of July than at the same point a year previously. In the prime market, the number of properties for sale valued at over £500,000 was 20% lower, a factor which, combined with strong demand, can put upwards pressure on prices, the report explains. Against this backdrop, demand for property in Winchester remains widespread.'As well as those moving up the ladder locally, the city remains popular with commuters both from the wider South East region and from London. Figures from the 2011 Census show that some 53% of people living in Winchester work outside of the city,' the report says. Buyers from the capital are also taking advantage of the price differential between property prices in London and elsewhere in the country. The report points out that while there has been sustained price growth in Winchester over the last year, changes to stamp duty announced in December have made buyers at the top end of the market more price conscious. This has resulted in slower than average price growth for the most expensive properties in the city since the introduction of the new rates. Meanwhile, in geographical terms, price growth has been fairly uniform across the city. Property values in Hyde and the city centre have risen by 3.2% and 3.1% respectively over the first six months of 2015, and by 6.9% and 6.8% over the past year. To the south and the east of the city centre in St Cross and St Giles Hill annual price growth of 5.7% and 6% respectively has been recorded. Overall, there were over 200 sales with a value of £500,000 or more in Winchester over the 12 months to June, 23% higher than the previous 12 months, according to data from the Land Registry. Continue reading
Research suggest a million UK home owners heading for an interest only mortgage time bomb
Around a million home owners in the UK could end up seeing their home repossessed if they have no way of paying off their interest only mortgages, new research has found. It is estimated that some 934,000 people have interest only mortgages and do not have a plan on how to pay it off when their term ends, according to the research by consumer charity Citizens Advice. Time is running out for some people who will either have to sell their homes, find the capital to pay off the debt or could risk having the property repossessed, the Yougov poll found. Some of the people who came to the consumer champion said they were not made aware that they would need to repay the capital at the end of their term. The average shortfall was previously estimated to be £71,000. Overall there are around 3.3 million mortgage holders who have interest only products of which 1.7 million have no linked repayment vehicle, such as an endowment or ISA and 934,000 of these have no plan for repayment and 432,727 of these people have not even thought about how they will repay the capital. Rules were tightened in 2012 to ensure interest only mortgages were no longer available without a repayment plan, which has resulted in a major drop in the number of products sold. Citizens Advice supports this change, but says people who already hold these mortgages need more support. The charity is concerned that interest only mortgage holders do not have the same protections when their term ends than when mortgage holders fall into arrears. A protocol was launched three years ago which gives lenders a legal obligation to consider alternative options before starting possession action, including extending the length of a mortgage, changing the type of mortgage and giving people reasonable time to sell their property if necessary. But these protections do not apply to interest only mortgages at the end of the term which is at the very point when many customers discover they are in trouble. 'People buy a home for stability but interest only mortgages have forced many into a financial black hole. It is good rules around these mortgages have changed, but there are many people who previously took out these products and face losing their home,' said Gillian Guy, chief executive of Citizens Advice. 'Lenders have to exhaust all other options when borrowers get into arrears and it’s time to level the playing field so that interest only customers get the same protections when their mortgages mature. It is also important that people can get independent advice, guidance and support about how they can plan and manage their finances,' she added. The Financial Conduct Authority (FCA) has said that due to previous peaks in the sale of interest only mortgages, they expect there to be waves of potential repossessions from 2017 to 2018, from 2027 to 2028 and in 2032. In 2013 the FCA called on banks to contact all borrowers with interest only mortgages ending before 2020 about how they… Continue reading
