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Millions of home owners suffer damage to neighbour’s renovations, research shows
Some 3.7 million home owners in the UK have suffered property damage due to neighbour renovations in the last five years with only a third accepting responsibility for damages, new research shows. The repair bill for damages across the country totalled more than £1.5 billion with just 33% of neighbours accepting responsibility and 30% blaming someone else, according to the research from Direct Line’s SELECT Premier Insurance. Some 17% did not directly confront neighbours about damage to their property, surprising given that the average cost to repair damages was £533 and for 8% more than £1,000 was required to repair the damage. According to those whose damaged property incurred a cost to repair, the majority of their neighbours, 53%, shared at least half of the cost of repairs and 14% paid over 80% of the costs. However, 19% of neighbours paid nothing towards damages caused by their home makeovers. ‘In the UK we take pride in our homes with many seeing extending and renovating their homes as a way to improve their living standards. As such it is not surprising that in the 12 months to September last year we saw more than 55,000 residential planning applications made in England with more than three quarters of them accepted,’ said Nick Brabham, head of SELECT Premier Insurance. ‘If you or your neighbours are thinking about starting a home makeover project it is worth assessing and discussing the risk of damage to adjacent properties with neighbours. It is also crucial to check whether your home insurance policy covers damage caused by neighbour renovations, otherwise you could be left with a hefty repair bill,’ he added. Damage to fencing was the most common ailment for victims of over exuberant home transformation projects, with 43% suffering damage. A quarter of people highlighted damage to windows and damage to garden features such as fountains and sheds, making these the next most common casualties of neighbour renovations. Some 24% suffered damage to gates, 22% damage to roofs, 22% damage to plumbing include leaks, flooding and moisture, 21% damage to contents, 20% damage to plants, 19% damage to exterior walls and 17% damage to a driveway. Home renovations have also caused other annoyances to neighbours with 26% enduring noise disturbances and 14% experiencing reduced parking. This was a major issue in already congested London where 26% went through reduced parking whilst their neighbours renovated their properties. Continue reading
Rental redress scheme in UK sees increasing number of complaints
The UK’s Property Redress Scheme (PRS) is seeing an increasing number of consumer complaints being made against lettings, property management and estate agents who are members The PRS is one of three consumer redress schemes authorised by the government whose role it is to provide fair and reasonable resolutions to disputes between members of the public and property agents. By law, all agents must be a member of one of these three schemes. The number of complaints raised with the PRS is increasing month on month. Of the complaints raised so far, 44% were by landlords and 41% were by tenants, with the remaining 15% being raised by buyers and sellers of property. The complaints have varied widely in content, with the top three grievances being unfair or excessive fees at 21%, non return of holding deposit at 18%, and perceived poor service or lack of communication at 18%. Agents are also resolving complaints directly with consumers when they are notified of the issue proving that the PRS is having a positive effect on service offered and that some complaints can arise from simple miscommunication between parties. Grounds for non-acceptance of complaints have included consumers that had not yet attempted to raise a formal complaint with their agent but had instead gone direct to the PRS. Others were declined as the complaint involved on-going court action. An example is a landlord who served notice on her agent two months before the end of the tenancy. The agent acknowledged this notice but pointed out that a charge would be made for withdrawing from the agreement, as per the terms of their contract. The agent claimed that this charge was because they had found the tenant that rented the property. As the initial introduction of the tenant retains value, the agent believed they would be materially disadvantaged if the tenancy was renewed under a different agent and wished to seek compensation for this introduction. This information was supplied to the landlord via email but was only received weeks later when the landlord found in her junk email folder. Her lack of response was taken by the agent as tacit agreement and they proceeded by withholding this fee from the last month’s rent. The landlord contacted the agent to explain that she had in fact sold the property and therefore the tenant was not remaining in the property after the expiry of the tenancy. She debated this fee and made further claims that the terms of their agreement were contradictory. However, the agent maintained they would still be applying what they saw as legitimate charges for the cancellation of the agreement. This resulted in a breakdown of communication between the landlord and agent, with both seeking legal representation to try and resolve the issue. Following a thorough review of all the evidence provided,… Continue reading
Majority of UK landlords not getting enough from lenders, it is claimed
Despite the recent launch of new mortgage rates and new terms for buy to let landlords, a new study shows that over three quarters of landlords believe that banks are not doing enough to support them. Just 17% of landlords feel they are getting enough support from lenders and one in ten have faced problems securing a buy to let mortgage, says the research from online letting agent PropertyLetByUs. The research also reveals that 87% of landlords believe the mortgage fees for buy to let loans are too high, while just 13% believe the interest rates are reasonable. This comes as figures show that over 70% of landlords have taken out a mortgage in the last six months to purchase a buy to let property and 19% have taken out a mortgage to refinance a loan. ‘Our research shows that lenders have some way to go to reassure landlords that they are supporting the buy to let sector. However, since the banking crisis of 2007, there has been a gradual increase in the availability of finance for buy to let landlords and the choice of mortgage products today is better than it has been for a long time,’ said Jane Morris, managing director of PropertyLetByUs. She explained that buy to let lenders typically want rent to cover 125% of the mortgage repayments and many are now demanding 25% deposits, or even larger, for rates considerably above residential mortgage deals. The best rate buy to let mortgages also come with large arrangement fees. ‘Landlords need to be cautious with mortgage fees as they can substantially push up the cost of a mortgage, especially if landlords are only fixing, or tracking for a short deal period. The biggest fees are typically those charged as a percentage of the loan, but even flat fees can run to £2,000,’ said Morris. ‘There are currently some good buy to let mortgage products on the market. For example, the lowest rate available now is 2.2% from Principality Building Society. It comes with a £994 fee and requires a 40% deposit. The total cost on a £150,000 mortgage would be £7,594 for the deal term,’ she explained. ‘For a longer term deal, The Post Office has a five year fixed rate at 3.65% with a £995 fee for a 40%. A £150,000 mortgage would cost £28,370 over five years,’ she added. Continue reading
