Taylor Scott International
Dubai to introduce new measures to ensure broker transparency
New measures are being introduced in Dubai next year to make sure hundreds of new real estate brokers are monitored. The Emirate has seen over 500 new brokers setting up this year alone and the Real Estate Regulatory Agency (RERA), the regulatory arm of Dubai Land Department, wants to make sure they are compliant. It has announced the introduction of four new regulations to control brokers at a time when the real estate broker sector is booming due to the recovery in the property market. Overseas buyers are again investing in Dubai led by Indian and British nationals. ‘We are going to introduce four new measures to control the brokers. We had over 8,000 brokerage firms with 10,000 brokers at one time, but now we have 2,205 firms with 5,021 brokers. We saw 567 new firms setting up business this year and we believe the numbers are still high for Dubai,’ said Marwan bin Ghalita, RERA chief executive officer. The new regulations will come into force next year and will see the pass mark for the mandatory test for renewal of broker’s license rise from 75% to 85%. Also, broker cards will be eliminated, but broker registration will be linked with Emirates identification. The changes will also mean that new brokerages will be allowed only four broker visas to start with and any increase will depend on their performance. Brokers, who fail to do any transaction for six months to 12 months will have their registration cancelled. Other changes are being considered. For example there is concern at an industry level that property owners not signing broker contract agreements, known as Form A. RERA is now considering making the contract obligatory before a property can be marketed. ‘If the seller does not signing Form A, the seller will not be able to list the property and sell it through any agent in Dubai,’ he disclosed, adding that a multiple listing system would come in place soon which will limit the listings for the seller in the market. Since May unified real estate contracts have been mandatory with the aim of protecting the rights of sellers, buyers and brokers in any real estate transaction. The latest data from the Dubai Land Department show that there were 17,289 real estate transactions worth AED37.5 billion in the first half of the year. Indian and British buyers topped the list for foreign investment and Jordanian investors led the regional list of buyers. ‘To say that we are delighted with the real investment transaction figures from January to July would be an understatement. We are extremely proud of these positive results, as they reflect a building momentum in Dubai’s real estate market,’ said Sultan Butti Bin Mejren, DLD director general. ‘Dubai’s real estate market has now reasserted itself on both the regional and global stage. We are certain that the future will see even more demand, especially in light of the government's declaration of forthcoming major projects,’ he added. A breakdown of the figures show that Arab Investors completed… Continue reading
Lawyers warning over complexity of right to buy land proposals in Scotland
Plans to empower Scottish communities who want to register an interest in land in towns and cities could backfire due to the complexity of proposed changes to the law, it is claimed. According to the Law Society of Scotland, proposals to extend communities’ right to buy land to include people living in urban areas, could be thwarted by the complexity of the proposals and potentially limit rather than empower local groups and stall development plans for neglected land in urban areas. The Community Empowerment (Scotland) Bill introduced into the Scottish parliament amends the Land Reform (Scotland ) Act 2003 by allowing community bodies to register an interest in respect of not only rural land, but now also urban land in Scotland ‘While the committee welcomes the policy intention behind the bill, our concern is that there may be unintended consequences from the current proposals,’ said Alan McCreadie, secretary to the Society’s planning committee. ‘For example, what would happen if a community registered its interest in urban land which is already subject to a redevelopment proposal? While Scottish Ministers could, in those circumstances, decide that registration is not in the public interest, the uncertainty could have an adverse impact on investment decisions for developers,’ he explained. ‘The Land Reform (Scotland) Act 2003 has benefited people in Scotland’s rural communities and we would want to ensure the same kind of success in our towns and cities. The committee, however, highlights a marked difference between rural land and urban land which may well have a higher price and consequent development costs,’ he added. The Society also highlights that the procedure for registering community interest in abandoned or neglected land, which is undefined in the bill, is similar to Compulsory Purchase and there should therefore be a requirement for a viable business plan and robust development proposals in respect of any community right to buy abandoned or neglected land. ‘The very complexity of the proposals may also be an issue. Introducing an overly complex, bureaucratic process could discourage communities from working to improve their local area and it may be advisable to set up a central body to steer community bodies through the provisions of this bill,’ added McCreadie. Continue reading
UK letting agents report increasing demand for rental properties
People in the UK looking to rent a home face fierce competition for privately rented residential property as demand increases and supply contracts, according the Association of Residential Letting Agents (ARLA). ARLA’s third quarterly report shows that 68% of respondents reported more would be tenants than properties available. It also shows that supply is down 6% from 143 to 135 per branch. The number looking to rent represents the third and biggest successive increase, from 46% in the third quarter of 2013, to 54% in the first quarter of 2014, to 59% in the second quarter of 2014. This represents an increase of nine percentage points between the second and third quarters, the largest increase since numbers were on the up. This is reinforced by the fact that supply of residential property on the private rental market decreased in the last quarter, with ARLA Licensed members recording a 6% drop in the average number of managed buy to let investment properties on their books. Stock levels are only going to continue decreasing, as members reported that the number of landlords investing in buy to let property shrunk by 8% in the last quarter, from 35% to 27%. At the same time, the number of landlords selling their buy to let property increased by 5% from 27% to 32%. As a result, the relationship between buying and selling buy to let investments has reversed, with landlords selling property now exceeding landlords buying property for the first time in four years. ‘This quarter, we have seen demand for properties in the rental sector significantly rise, while the supply of residential rental properties has dropped,’ said David Cox, ARLA managing director. ‘This activity has bucked the seasonal trend recorded over the past 11 years for this quarter, in which we normally see an increase in the number of new tenancies signed up. However, with landlords not investing in new buy to let property tenants are finding it increasingly difficult to secure contracts,’ he explained. The report also shows that whilst the overall property stock is down, some ARLA Licensed members reported that a large proportion of buy to let properties that were put up for sale have since come back onto the rental market, after landlords’ bids to sell had been unsuccessful. The number of these properties coming back onto the lettings market rose from 9% to 16% in the last quarter. There is some good news when it comes to tenants in the private rented sector; tenants have been wising up and taking responsibility as members saw an increase in tenants requesting references on potential landlords from lenders, with the figure from 7% to 9%. ‘It’s great to see an increase in consumers making an active play to check that their landlords are financially viable. Renting a property and laying out considerable finances is a big commitment, and it is important that consumers ensure they are protected,’ said Cox. ‘By choosing to rent through an ARLA licensed agent or landlord, tenants’ money is not… Continue reading
