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Private Renting to Match Homeownership Levels in London by 2025

Published On: March 14, 2017 at 9:53 am

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Private renting in the capital will match the levels of homeownership in London by 2025 – just eight years away, according to a new report from the Mayor of London.

Private Renting to Match Homeownership Levels in London by 2025

Private Renting to Match Homeownership Levels in London by 2025

The study, titled Housing in London: 2017, will form the basis for the Mayor’s forthcoming London housing strategy.

It shows that private renting was once the single largest housing tenure in London, but shrank from 46% of all households in 1961 to just 14% in 1991, a decline that was similarly matched across the rest of the country.

By 2011 – the latest date quoted in the report – the private rental sector accounted for 26% of all London households.

In contrast, social housing made up 35% of housing in the capital in 1981, before dropping to 24% in 2011.

The Mayor of London’s new report, which will provide evidence for his key strategy, forecasts both social renting and homeownership to continue falling in the capital, while private renting will grow.

By 2025, it expects both private renting and homeownership to each account for 40% of all London households, while social renting will make up just 20%.

The 114-page report analyses historical data on housing tenures in the capital, certain demographic, economic and social trends, before addressing the crisis that is now blighting Londoners.

It assesses housing supply and the number of empty homes, the costs of buying and renting a home, along with the serious issue of affordability, and the need for housing across the capital. In addition, the study considers mobility and decent homes.

To read the full report from the Mayor of London, click here: https://files.datapress.com/london/dataset/housing-london/2017-01-26T18:50:00/Housing-in-London-2017-report.pdf

As ever, we will continue to keep you up to date on changes to the London property market, particularly private renting, at Landlord News and through our handy – and FREE – monthly newsletter – sign up here: /register/

The Home Seller/Landlord Spring Clean Checklist

Published On: March 14, 2017 at 9:23 am

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Spring is a busy time in both the property sales and lettings sectors. If you’re selling a property or are looking for new tenants at this time of year, this spring clean checklist will ensure that your home appeals to all guests…

Online estate agent eMoov.co.uk has highlighted which spring cleaning jobs to tackle first based on the importance placed by prospective buyers. The agent surveyed UK homeowners and asked them to rank six property features on their importance when making a good first impression:

  1. Interior rooms, walls and ceilings 

Despite the exterior of the property being the first thing a buyer/tenant will see, the interior was ranked the most important aspect of the home and should be the first place you tick off your spring clean checklist.

Jobs such as making sure the property is de-cluttered, filling any holes in the walls, stripping or repainting the walls, and generally having a good clean took president over any other feature of a property.

  1. Exterior walls and roof

Once the inside is looking its best, the exterior of the home was the second most important factor when making a good first impression amongst viewers.

Make sure that the roof doesn’t have any leaks, the walls are showing no cracks and the grouting is smooth.

  1. The front door and porch

The front door and porch are the gateway to the property and are often the first things a potential buyer/tenant sees up close.

Ensure there are no old shoes or bikes cluttering the porch, strip any peeling paint and give the door a fresh lick of paint, as well as making sure it doesn’t stick.

  1. The Home Seller/Landlord Spring Clean Checklist

    The Home Seller/Landlord Spring Clean Checklist

    Windows and window sills

Although they are only small features, windows and window sills were ranked the fourth most important aspect of a property.

The quality and appearance of windows can play a huge role in showcasing your home, so make sure there are no cracks, they have all been well cleaned, peeling paint has been removed and a fresh coat applied.

  1. The garden

The garden can often be neglected throughout the winter, so bringing it back to its full potential is the fifth point on your spring clean checklist.

As with the interior of the home, remove all clutter and rubbish, mow the lawn and trim the hedges to showcase the full size of your outdoor space. Repair any loose or broken fence panels or paving stones, and give them a good clean.

  1. The driveway and garage

The driveway and garage were voted the least most important factors for potential homebuyers. They can be big, time-consuming jobs, so leaving them till last can better help manage your time.

These external features are more of a bonus rather than a necessity, so buyers/tenants will view them with varying degrees of importance. Knowing they have space for a car or additional storage is more important than the state of those areas.

The Founder and CEO of eMoov, Russell Quirk, comments: “This research goes to show that first impressions do count, but where housing is concerned, the initial judgement of the exterior comes second to the internal appearance of a property.

“Where buyers are concerned, it would seem they prefer to be underwhelmed by the outside of a property and pleasantly surprised by the inside rooms, rather than visa versa.”

He explains: “It makes sense as, when we look to move house, the internal rooms are the places we will actually be spending our time. You are immediately sat within them and so, if they aren’t up to scratch, it can be a put-off. But if there are aspects of the exterior you aren’t necessarily keen on, then not only can these always be changed, but you have a bit more breathing room in terms of settling in and unpacking before tackling them.

“A buyer will always view through their own personal lens, and there will be plenty of things they will change, but providing them with a solid, clean, neutral foundation can go a long way in securing a sale.”

Quirk continues: “It is interesting to see that the small details, such as the front door, the windows and window sills rank much higher than larger areas such as the garden and driveway. Again, it is these little touches that can stand out to a buyer and make all the difference to your sale.

“My wife has been on at me for a few weeks now to get our kitchen ready along with a few other jobs, so it is getting to that time of year when these things come to the forefront and buyer activity in the market also starts to heighten. Hopefully, this checklist will help the UK’s sellers prioritise appropriately when deciding which area to tackle first and aid them in making a sale.”

New mortgage rates announced at the Mansfield and Accord

Published On: March 13, 2017 at 4:08 pm

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Mansfield Building Society has moved to increase its maximum loan size from £300,000 to £500,000 across its buy-to-let mortgage range. This is subject to the borrower having a maximum of 15 mortgages outstanding with alternative lenders.

The Mansfield will also permit buy-to-let investors to borrow up to £1m in total, up from 500,000, after changes to its lending criteria.

Exciting

Steve Walton, national development manager at Mansfield, observed: ‘We’re taking these measures to make our individual underwriting proposition more exciting and available to larger portfolio landlords on higher value housing stock.’[1]

‘Landlords need more choice, especially given the Government’s reduction in tax relief and the regulatory change to rental income calculations. We believe that these changes will be well received and we’re looking forward to being able to offer brokers and their clients a fresh alternative from a lender with a flexible and pragmatic approach,’ he added.[1]

New mortgage rates announced at the Mansfield and Accord

New mortgage rates announced at the Mansfield and Accord

Re-mortgaging

Meanwhile, Accord Mortgages has launched two new fixed-rate mortgages with no up-front fees. These have been designed to help borrowers manage the original cost of remortgaging.

There is a 65% LTV two-year fix available at 1.66%, while borrowers with a 75% LTV mortgage can secure a five-year fix at 2.24%. Both of these products come with free standard valuation and free legal fees.

What’s more, Accord has cut the rate on its two-year base rate tracker at 65% LTV, by 0.05%, to 1.24%. This allows borrowers more flexibility in leaving their mortgage early without paying any redemption fees.

David Robinson, National Intermediary Sales Manager at Accord, said: ‘It is proving to be a popular time for borrowers to remortgage at the moment, especially those seeking lower loan-to-value deals.’[2]

‘We believe that our new remortgage options will prove popular amongst borrowers and the options across the different terms, plus the additional features, will help brokers to choose the best loan to suit their clients’ requirements,’ he added.[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/mansfield-bs-increases-max-loan-size-to-500-000

[2] http://www.propertyreporter.co.uk/finance/new-remortgage-products-lanuch-at-accord.html

 

A Third of Sellers in London are Reducing Asking Prices

Published On: March 13, 2017 at 11:06 am

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Around 30% of London property sellers are reducing asking prices, while realistically priced homes are being sold within 71 days, according to data from HouseSimple.com.

The report shows that, in some parts of the capital, a third of sellers are reducing asking prices, with more prices trimmed in west London than any other part of the capital.

While the figures don’t take into account the number of asking prices corrected by estate agents in the first few days of being listed, Rightmove has also released a report that warns sellers that they could pay for over-pricing their homes.

West London

In the past 10 years, the lack of stock on the market and high demand have pushed house prices up in the capital, while in west London, the Crossrail effect has particularly boosted values, as buyers sought to invest in areas set to benefit from the high-speed link to central London.

Alex Gosling, the CEO of HouseSimple, comments: “Prices in areas such as Ealing have risen so much due to Crossrail that they couldn’t possibly carry on going up at the same rate. We now may be starting to see buyers push back a little as they feel prices have reached unaffordable levels.”

A Third of Sellers in London are Reducing Asking Prices

A Third of Sellers in London are Reducing Asking Prices

Buyers are particularly cautious due to a combination of market uncertainty and last year’s Stamp Duty hike, claims the report. In recent years, buyers and sellers relied on a market where prices were almost guaranteed to increase by around 20% in a year, but that is no longer the case.

Reducing asking prices is a natural correction in a market that is catching up with a slower pace of growth than in recent years.

Richmond

Richmond has suffered the largest number of cuts in the capital, with almost 37% of listings reduced in price.

Richmond upon Thames was named as the happiest place in the capital last year, with residents being among the healthiest and wealthiest in the country. House prices average £643,000 – up by 0.4% on last year.

Paul Price, the Manager of Richmond estate agent Hamptons International, says: “There’s been a shortage of good quality properties for the best part of two years and the strategy for some estate agents trying to secure instructions is to over price homes. So we’re not necessarily seeing a fall in values, but more realistic asking prices.”

However, he adds: “The Richmond market is bulletproof; there’s a huge underlying demand for property at the right price.”

Hammersmith & Fulham 

A similar 36% of sellers are reducing asking prices in neighbouring Hammersmith & Fulham – the second highest in the capital.

However, the average sale price has also dropped, from £772,000 to £756,000, over the past year.

The Branch Manager of Hamptons, Robert Stewart, comments: “Fulham has always been very City-orientated in terms of buyers, and the mood of the market reflects the mood of the City fairly accurately. People are more nervous about the future because there’s a lot going on in the world.”

Hounslow 

As one of London’s cheapest boroughs, Hounslow should be in fairly high demand, with buyers seeking more affordable options. However, the decision to award Heathrow Airport a third runway is likely to cause a rise in noise pollution, and the larger footfall passing through is likely to add to congestion on roads and rail links.

The Founder and CEO of eMoov.co.uk, Russell Quirk, says: “As a result, many have been deterred from buying, which has resulted in falling demand within the local market. Not only are sellers lowering their prices to account for this cool in buyer demand, but also to secure a sale so they can vacate the area.”

Are you reducing asking prices to secure a sale in the capital?

Rogue landlord fined £15,000 for HMO failings

Published On: March 13, 2017 at 10:40 am

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A rogue landlady has been fined £15,000 for failing to licence and manage a house in multiple occupation (HMO).

Sharon Jacobs was additionally told to pay costs of £3,456.52 alongside a victim surcharge of £170.

Complaints

A series of complaints were made by different tenants living in the property in Barnet, which led to council officers investigating.

Later, a warrant was issued in order to enter the building. Police and environmental health officers found five people in the property, alongside the landlady.

Barnet council’s licensing scheme for HMO’s states that higher-risk properties have to be licensed, sufficiently managed and meet minimum standards.

Alongside failing to license the property, officers also discovered numerous safety concerns. These included a mini-oven and freezer blocking the main fire escape routes and a partially-collapsed kitchen ceiling.

What’s more, there was a lack of adequate smoke alarms and incomplete fire doors to stop the spread of flames and smoke.

Rogue landlady fined £15,000 for HMO failings

Rogue landlady fined £15,000 for HMO failings

Enforcement

A council spokesman noted: ‘This landlady has knowingly avoided licensing her property and carrying out necessary works and I’m pleased to see our enforcement action has sent a strong message that this kind of behaviour is not acceptable’[1]

‘Enforcement officers are visiting properties across Barnet every day and HMO landlords found not to be licensed will have action taken against them,’ they added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/3/15-000-fine-for-failing-to-license-and-manage-hmo

Lettings Administrator who Stole £14,000 in Tenants’ Deposits Spares Jail

Published On: March 13, 2017 at 9:49 am

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A lettings administrator who stole more than £14,000 in tenants’ deposits has been spared jail.

Lettings Administrator who Stole £14,000 in Tenants' Deposits Spares Jail

Lettings Administrator who Stole £14,000 in Tenants’ Deposits Spares Jail

Julie Feilden, 51, stole the funds over a six-year period and has been given a six-month suspended prison sentence. She has also been ordered to complete 120 hours’ unpaid work and pay costs of £1,250. She admitted 13 charges.

Feilden was employed by Smiths Gore in Newmarket, Suffolk, where she was responsible for collecting tenants’ deposits. Where cash was accepted, Feilden was required to log the funds and keep them in the stationery store under lock and key. She had the keys to the store, and part of her job was to bank the money and complete the paperwork for the tenants’ deposits.

Ipswich Crown Court was told that, in 2015, redundancies were made at the firm, which included Feilden’s role. At the end of the year, the business was sold to Savills.

Although she was made redundant, Feilden asked to take the books home to get them up to date.

It took several months for the firm to retrieve the books, and it was then that the thefts were discovered.

When police interviewed Feilden, who has no previous convictions, she made full admissions.

Representing herself, Feilden told the court she was “very sorry” for what she had done.

Savills acquired the 31-branch agent in 2015 for a staggered payment of up to £40m. The announcement at the time said that Smiths Gore had an unaudited revenue of £30.8m and gross assets of £14.9m, with profit before tax and partners’ drawings at £6.3m.

Discussing the theft of tenants’ deposits, a spokesperson for Savills says: “Savills can confirm that Julie Feilden was an employee of Smiths Gore, based in its Newmarket high street office from 2010-15, when these offences took place.

“Smiths Gore was subsequently acquired by Savills. No clients suffered a loss as a consequence.”

Landlords, remember to stick to the law where tenants’ deposits are concerned: /landlords-guide-tenancy-deposits/