Written By Em

Em Morley

Property sales hit ten-year high during February

Published On: March 30, 2017 at 1:14 pm

Tags: house sales,housing,property sales,White Paper

The most recent data from NAEA Propertymark has revealed that during February, agreed house sales increased to a ten year high. 74% of these sales were below the original asking price, which suggests sellers are becoming more realistic when it comes to transactions.

Rises

According to the data, sales rose to 11 per branch. This figure has not been beaten since September 2007. During January, estate agents agreed eight sales on average per branch, up from six in December.

However, the proportion of sales agreed for first-time buyers fell to 22% in February, down from 30% in January.

The number of properties available to purchase on estate agents books rose from 38 in January to 44 in February. This number is up by 26% from the figure seen last February.

Despite good sales figures only 7% of estate agents expect the proposals outlined in the Government’s Housing White Paper to be enough to sort out the issues in the housing market. 43% think the proposals will not make a difference, while 39% feel that they will have a positive impact.

Property sales hit ten-year high during February

Moving Forwards

Mark Hayward, Chief Executive at NAEA Propertymark, said: ‘The number of sales agreed reaching a 10 year high indicates the housing market is moving in the right direction. However, first-time buyers need to be a priority-the number of sales made to the group dipped in February when it should be growing.’[1]

‘As house prices continue to rise, the market’s most vulnerable buyers are being priced out and the only way to address this is to increase housing stock. The Government have pledged yet again to build more homes, but our members aren’t feeling optimistic about the plans. If promises are kept and we see construction sites set up across the UK, we’ll be in a better position in a few years than the stark reality we will be facing if this doesn’t happen,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/house-sales-soar-to-10-year-high.html

Scotland’s Uncertain Future Shakes up the Scottish Property Market

Published On: March 30, 2017 at 10:00 am

Author: Em Morley

Categories: Property News

Tags: house prices,Scotland,Scottish property market,Scottish referendum

Scotland’s uncertain future is shaking up the Scottish property market, according to an analysis by online estate agent eMoov.co.uk.

Given the Scottish National Party’s (SNP) insistence on another independence referendum and the Prime Minister’s equally strong insistence to not grant one, eMoov assessed Land Registry data from the time of the SNP’s election win, the passing of the Scottish Referendum Act 2013, the referendum itself, the second passing of the Scottish Referendum Act and the present day, to see what impact the uncertainty of Scotland’s future has had on the Scottish property market.

Scotland’s Uncertain Future Shakes up the Scottish Property Market

When the SNP came to power in May 2011, the average house price across Scotland actually dropped by 0.01%. Its promise of an independent Scotland then saw the market yo-yo and, over the following two years, the average Scottish house price fell by 0.14%, with 16 of the 24 months in this period recording a monthly decline.

When the Scottish Referendum Act was passed in June 2013, the rate of growth slowed, before falling again in September and October.

In April 2014, the Scottish property market enjoyed a healthy monthly increase of 2.33% but, with the referendum on the horizon, this rate of growth slowed over the next four months, before prices fell by 0.57% during the month of the vote itself.

Since the vote, Scottish property owners have seen an overall, if only marginal, lift in house prices. However, the further uncertainty of a second referendum is once again seeing price growth behave erratically month-to-month.

Nicola Sturgeon’s announcement of a draft second referendum came in a month when price growth hit an average of 2.21%. Following her announcement, this monthly growth slowed to 0.71%, before falling gradually up until the second bill was announced in October 2016, when prices dropped by 0.89% in a month.

The Founder and CEO of eMoov, Russell Quirk, comments on the impact on the Scottish property market: “It is clear that should there be a vote for independence, the knock-on effect to the property market will be notable. Since the people of Scotland already voted no, house prices across the nation have seen an increase of 5%, but the mere action of a referendum vote has been enough to cause considerable turmoil. A vote to leave would make for very precarious times ahead, and it is in these times of unrest that employment and the wider economy suffer, with the result often being the repossession of homes and downward pressure on house prices.

“As we’ve seen with Brexit, the uncertainty of an outcome can cause just as much turbulence to the property market as the decision itself. It was a pretty close call last time around and so it’s understandable that homeowners on both sides of the Scottish referendum coin would look to either hold off on or push through a sale, depending on their own preference. This out of the ordinary manipulation of the market on both sides is no doubt the most influential factor behind this market movement.”

He adds: “It certainly doesn’t help that once a decision has been reached, the SNP continues to stoke the fires of change with plans for a second vote. It’s fair to say that the Brexit vote was more monumental and pivotal, but, despite this, the market south of the border has remained steady where price trends are concerned. Having weathered the storm, the initiation of Article 50 should see normality return to the property market in England and Wales, as it finally emerges from a tunnel that the Scottish market is, for the second time, just about to enter.”

Rogue landlord fined over £7,000

Published On: March 30, 2017 at 8:46 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,rogue landlord,tenants

A rogue landlord has been told to pay over £7,000, after a series of failings put the lives of his tenants at risk.

Mr Daniel Woulfe pleaded guilty to poorly managing two rented homes in Worthing and not carrying out works to improve standards.

Failings

The court appearance was Woulfe’s third, after officers from Worthing Borough Council’s private sector housing team inspected the two properties.

Fire safety provisions within the houses were found to be substandard, as were the electrical installations.

After he had ignored improvement notices, the council decided to act by telling Worthing Borough Council’s legal services team to start prosecution.

Mr Woulfe pleaded guilty at Worthing Magistrates Court to 11 offences under the Management of Houses in Multiple Occupation (England) Regulations 2006 and the Housing Act 2004.

He was subsequently fined £4,250, with full costs of £2,811.95 and a victim surcharge of £50, bringing the total to £7,11.95.

Rogue landlord fined over £7,000

Substandard

Councillor Dr Heather Mercer, executive member for customer services at Worthing Borough Council, said: ‘This is another example of the need for the invaluable service provided by the Council’s Private Sector Housing Team, clamping down on landlords running substandard and hazardous properties.’[1]

‘We have a responsibility to do all in our power to help create healthy, safe places in which people can thrive – so we will continue to act where we see substandard properties putting people at risk. Poor landlords must realise that court action is not the end of the matter and Worthing Borough Council will persist in ensuring that landlords comply with their legal duty to manage and run their properties safely,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/landlord-fined-over-7-000-for-putting-tenants-at-risk

Fergus Wilson makes it back into the Headlines with Controversial Ban

Published On: March 30, 2017 at 8:45 am

Author: Em Morley

Categories: Landlord News

Tags: Fergus Wilson,rental properties,rogue landlords,tenants

Fergus Wilson, one of Britain’s biggest buy-to-let landlords, has made it back into the headlines with yet another controversial ban.

Wilson, 69, has now banned “coloured” people from renting his properties because, he says, they leave them smelling of curry.

Fergus Wilson makes it back into the Headlines with Controversial Ban

In an email to the letting agent acting on behalf of Wilson, who runs a property empire in Kent, he said: “No coloured people because of the curry smell at the end of the tenancy.”

When contacted by The Sun, Wilson defended his comments, saying: “To be honest, we’re getting overloaded with coloured people. It is a problem with certain types of coloured people – those who consume curry – it sticks to the carpet. You have to get some chemical thing that takes the smell out. In extreme cases, you have to replace the carpet.”

Earlier this year, Wilson made headlines after saying that he would no longer accept victims of domestic violence as tenants, as jealous or angry partners typically cause damage to the property by kicking down front doors and punching holes in the interior.

Single parents, workers on low incomes, families with children, pet owners, smokers and single adults were also among those who Wilson banned from his properties.

A spokesperson for the campaign group Hope Not Hate responded: “You simply cannot treat people like this and deny them a place to live due to their skin colour.

“This is the unacceptable face of the housing crisis. There is something broken in the system when such a powerful figure can get away with such an appalling policy.”

They added: “Fergus Wilson’s comments would seem laughably offensive, a throwback to the Alf Garnett era, if they weren’t so serious in their implication.”

Rebecca Hilsenrath, the Chief Executive of the Equality and Human Rights Commission, also reacted: “There are still deep inequalities in our society, as our race report demonstrated, and these comments show why.

“As a country, we all assume we have left the dark ages behind, but clearly there is more to be done.

“We will investigate and will be asking Mr. Wilson to explain his actions. Unless we are satisfied that he will not break the law in the future, we will take legal action.”

And the Manager at letting agent Evolution, which manages a number of Wilson’s properties, Roy Fever, insisted: “We don’t condone this at all. We would never implement a policy like that. We put through anyone to the landlord and it is up to the landlord who they take on.”

How will Article 50 Affect London’s Property Market?

Published On: March 30, 2017 at 8:15 am

Author: Em Morley

Categories: Property News

Tags: Article 50,Brexit,London,London property market

Yesterday, Theresa May took the historic decision to trigger Article 50 and begin two years of negotiations before the UK leaves the EU. But how will this affect London’s property market?

The Regional Sales Direct of Portico London estate agent, Mark Lawrinson, explains what he believes could be possible effects of Article 50 on the London property market.

How will Article 50 Affect London’s Property Market?

He says: “I don’t think the triggering of Article 50 will affect the property market directly from today. In one sense, it removes the uncertainty surrounding when Britain’s withdrawal process from the EU will start, but, in another way, it will create economic uncertainty until we know what deal we will strike and therefore what Brexit actually means for our country.

“Brexit will no doubt mean a turbulent two years for the London and UK market, as we begin to hear what negotiations and proposed deals are being put forward for our exit of Europe and the single market. I think we will see a continued slowdown or lethargic London market when it comes to sales volumes and, as we reported toward the end of last year, transaction volumes across London are already more than half of what they were before the 2008 crash.”

Lawrinson continues: “London has a significant part to play in businesses who trade and operate across Europe and the world, and a buoyant property market relies on the UK’s economic health. If Brexit negotiations go well, this could cause further price growth as the economy grows and we see the nation’s confidence lifted but, equally, if a good deal isn’t reached, then the international companies who operate here or look to relocate here might change their minds, reducing the number of residents who live in the capital and again further reducing the transaction levels, which could ultimately lead to price decreases.”

Therefore, it is important that you make your property decisions based on your personal situation and what you want to do, rather than gambling on how the market will play out.

Robert Nichols, the Managing Director of Portico, makes an important point: “Right now, we may experience some uncertainty, but as the negotiations progress, we will regain some much needed stability into the housing market, as people realise that the effects of Brexit are not catastrophic and go on with their lives. We’ll hopefully see transaction levels increase as a result, which are currently dangerously low and affecting price growth across the capital.

“Today’s events are likely to have a much more profound effect on foreign investment, however, with the weakening pound expected to fuel demand from overseas buyers and investors.”

Many are also speculating that yesterday’s events will mean that the Bank of England will be hesitant to increase its interest rates, in spite of the recent rise in inflation. This means that it will remain as cheap as ever to borrow and get onto the property ladder.

Disputes over rent arrears rise

Published On: March 29, 2017 at 10:27 am

Author: Em Morley

Categories: Landlord News

Tags: deposit disputes,inventories,landlords,rent arrears,tenants

The latest report from the Tenant Deposit Scheme suggests that disputes over rent arrears rose from 10% to 19% over the last year. This further underlines the importance of taking out a Rent Guarantee Insurance policy to protect your investment.

However, cleaning still takes top spot in terms of deposit dispute reasons, accounting for 57% of the overall cases brought to the TDS.

Disputes

The second most common cause of disputes was found to be damage to property (51%), followed by redecoration (32%) and gardening (16%). The most expensive claim dealt with by the TDS during 2015-16 was £18,250.

Imfuma Let, provider of a digital inventory report app, said that landlords and letting agents are facing increasing challenges, with rent arrears and damaged properties at checkout.

Jax Kneppers, Founder and CEO of Imfuna, noted: ‘Landlords and agents need to ensure they make regular inspections of a property to check its condition and raise any issues with the tenant. If landlords and agents fail to visit the property during the tenancy, they could be in for a nasty surprise at check-out.’[1]

‘At the start of the tenancy, landlords and agents should give tenants a thorough and professional inventory, which clearly records the condition of the property and its contents. Tenants should be made aware that it is their responsibility to leave the property as clean as when they took on the property, and if any damage is incurred during the tenancy the landlord or agent should be alerted immediately.’[1]

Disputes over rent arrears rise

Essential

Continuing, Kneppers said: ‘It is vital that landlords and agents do a thorough check-in and check-out so they have the necessary proof of condition at the start and end of a new tenancy agreement. If agents and landlords wish to make deductions for cleaning costs, they need to be able to prove that there was a change in condition from the start to the end of a tenancy in order to prove deductions are warranted.’[1]

Marie Brooks, of Monks Estate and Lettings Agents, also commented: ‘Providing a professional inventory report for every tenancy is essential in ensuring deposit disputes are a rare occurrence. When a detailed and thorough record of a property and its contents are provided at the beginning of a tenancy, there can be no doubt as to the amount of damage that has taken place when compared to the condition of the same at the end of a tenancy. In our experience, inventory reports have reduced tenant and landlord disputes to a great degree.’[1]