TSI
Inventory disputes falling on the side of landlords in UK
New research shows that for the first time since the start of the tenant deposit schemes in 2007 in the UK more landlords and agents are being awarded 100% of the disputed amount at adjudications than tenants. The figures from the Tenant Deposit Scheme Annual Review 2015 show that 19.8% of all disputes raised by landlords or agents resulted in 100% pay outs to them, while 19.2% of all disputes raised resulted in 100% pay outs to tenants. The remaining 61% of cases saw the disputed money split between the parties. This compares with 2014 when 20.25% of all disputes raised by tenants resulted in 100% payouts to them, compared with 18.21% to landlords and agents. In previous years, tenants have always been awarded the full deposit more often than landlords and agents. Although adjudicators do not seek to decide in favour of one side or the other, many landlords and agents believe that the Courts are biased towards tenants. According to Jax Kneppers, chief executive officer of Imfuna, these results are a sign that the landlords and agents are presenting better documented evidence at adjudications. ‘For the first time, landlords and agents are now more successful than tenants at winning 100% of deposits. This is a significant achievement, an 8.5% increase year on year,’ he said. ‘More and more landlords and agents are recognising the power of digital professional inventories and mid-term inspections and this is why the balance is starting to shift. Many landlords and agents are ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a thorough check-in and check-out report,’ he explained. He also pointed out that historically many tenant disputes have gone in favour of tenants, as there was simply not enough evidence to support the landlord or agent’s damage claim and the most common mistake in most inventories is the lack of detail. Often there is not enough appropriate photographs and any accompanying description to show the condition of the property and its contents. For example, many landlords and agents fail to record the condition of sinks and bathroom fittings, as well skirting, doors, floor coverings and kitchen units. If an inventory is not a professional and thorough report on the property, then it is not worth the paper it is written on. ‘Inventory reports should contain a full description of the condition of the property, noting detail on every aspect of damage and its location at the start of a tenancy. Good photographs provide vital evidence and should be of a high quality when printed up to A4 or A3 size, so that any damage can be clearly seen,’ said Kneppers. ‘Unless landlords and agents have a water tight inventory, they are at risk of disputes and expensive repair bills. Our research shows that landlords and agents who… Continue reading
Demand for single family homes in the US rising
Over three quarters of households in the US would purchase a single family home if they were to buy in the next six months, and 79% of renters would choose to buy outside of an urban area, new research shows. The latest quarterly consumer survey from the National Association of Realtors also shows that confidence about now being a good time to buy is waning amongst renters, particularly in the West where prices have solidly risen. Some 85% of current home owners and 75% of renters said they would purchase a single family home, while only 15% of home owners and 21% of renters said that would buy in an urban area. Lawrence Yun, NAR chief economist, said that the survey findings call attention to the glaring need for more supply of single family homes. ‘The American Dream for most consumers is not a cramped, 500 square foot condo in the middle of the city, but instead a larger home within close proximity to the jobs and entertainment an urban area provides,’ he explained. ‘While this is not a new discovery, supply and demand imbalances and unhealthy levels of price growth in several metro areas have made buying an affordable home an onerous task for far too many first time buyers and middle class families,’ he added. According to Yun, it’s time for home builders to double their focus on constructing single family homes. With millennials increasingly buying in the suburbs tight inventory and affordability concerns will likely worsen without significant headways made in housing starts in relation to job creation. The survey found that 82% of home owners believe now is a good time to buy, no change from the previous survey in December 2015 but the number of renters thinking the same fell from 68% to 62%. ‘A high number of home owners are expressing that it’s a good time to buy and this sentiment is no doubt being fuelled by the $4.4 trillion in housing equity accumulation in the past three years,’ said Yun. ‘On the other hand, accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters,’ he pointed out. Overall, respondents over the age of 65, those living in the Midwest and those with incomes over $100,000 were the most optimistic about buying now. Among current home owners 56% thought it is a good time to sell compared to 61% in the fourth quarter of 2015. Amidst steep price increases and tight supply, respondents in the West were the most likely to think now is a good time to sell, while also being the least likely to think now is a good time to buy. Among all households in the survey, less than half believe the economy is improving at 48%, down from 50% in last quarter’s survey. Renters, those living in urban areas and respondents with lower incomes were the most optimistic. Across all age groups, when asked… Continue reading
Average property prices in UK cities now six times annual earnings
Average house prices in cities in the UK have reached their highest since 2008 and are more than six times annual earnings, new research shows. The affordable cities review report from Lloyds Bank shows that the average UK city house price has risen by 8% from £196,229 in 2015 to its highest ever level of £211,880 in 2016. This has resulted in average affordability in the nation’s cities worsening in the last 12 months from 6.2 to 6.6 times gross average annual earnings, the third successive annual decline in affordability. The latest figures from Lloyds Bank also reveal a significant North/South divide, with 17 of the 20 least affordable cities located in southern England and only Lichfield, Leicester and York appearing in the top 20 outside of the South. Winchester has recorded the biggest gains over the past decade, whilst London, not surprisingly, has seen the largest growth during the economic recovery of the last five years. By contrast, all of the 20 most affordable cities for home buyers are outside of southern England. Affordability in UK cities is, on average, now at its worst level since the average house price to earnings rose to 7.2 at the height of the last housing market boom in 2008. ‘House price rises in the past three years have risen more steeply than average wage growth, making it more expensive to buy a home in the majority of UK cities. This has also widened the North/South divide, as house prices in the South have generally seen stronger growth than in the North,’ said Andrew Mason, Lloyds Bank mortgage products director. Oxford is the UK's least affordable city with the average house price 10.68 the gross average earnings in the city. At an average price of £364,429, houses in Oxford are more expensive compared with average earnings in the city than in any other UK city. This is partly due to Oxford’s attractiveness to commuters working in London. Winchester at 10.54, London at 10.06, Cambridge at 9.9 and Bath at 9.77 make up the top five least affordable cities. The London average figure disguises considerable variations across the capital with central boroughs being significantly less affordable than the Greater London average. Lichfield at 7.53 and York at 7.5 are the least affordable cities outside southern England. Londonderry in Northern Ireland is now both the UK’s most affordable and least expensive city. The average property price in the Northern Ireland city of £113,302 is 3.8 times the gross average annual earnings. Elsewhere in Northern Ireland Belfast at 4.42 and Lisburn at 4.64 are the fourth and sixth most affordable cities respectively, due primarily to the relatively low house prices in the country. Northern English and Scottish cities make up the remainder of the top 10 most affordable cities with Bradford at 4.31, Hereford at 4.55, Durham at 4.73, Lancaster at 4.89, Carlisle at 5.03, Glasgow at 5.07 and Stirling at 4.11. Winchester has recorded the biggest price rise of any UK… Continue reading
