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Em

Em Morley

The Only Way is Essex for Quick Property Sales

Published On: November 9, 2016 at 10:13 am

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Categories: Property News

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The only way really is Essex when it comes to quick property sales, according to the latest research by Knight Frank.

The Essex postcode of CM18 has been named the top area for the shortest time a property is on the market over the last six years.

Using its myPropertyGenius tool, Knight Frank found that properties in the CM18 area, which includes Harlow and Kingsmoor, are on the market for an average of just 36 days, or five weeks.

Nine of the top ten postcodes for quick property sales are outside of the capital.

The only London postcode to appear in the top ten is SM5 – the Carshalton area – with an average selling time of 42 days, or almost six weeks.

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The Only Way is Essex for Quick Property Sales

The Only Way is Essex for Quick Property Sales

The myPropertyGenius tool uses Knight Frank and Land Registry data. The figures used for this study range from the first quarter of 2010 to the first quarter of 2016.

The property firm found that it’s bad news for those thinking of selling a property in the capital, as it takes around 50 days for London homes to be snapped up.

Buyers in the Thamesmead district, in particular, are having a difficult time selling their properties, taking over seven weeks.

However, the issue only looks to be getting worse across the UK as a whole, with recent data from Rightmove showing that the average time a property was on the market in September was a huge 64 days.

The Head of Research at Knight Frank, Liam Bailey, explains why the capital is having such difficulty with quick property sales: “London has seen a shift in fortunes over the past 12 months, power has shifted in the favour of buyers, as their number has fallen while stock volumes have risen. Buyers have the luxury of taking more time over buying decisions – as a result, sales are slower.

“Why? Partially due to the rise in Stamp Duty, which has impacted more heavily on London.”

If you’re looking for a quick property sale in the capital, it may be best to put in on hold!

Buy-to-let activity down by 13.3% in last year

Published On: November 9, 2016 at 10:02 am

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Buy-to-let activity fell by 13.3% in the last year, according to new data provided by Connells Survey & Valuation.

The figures are unsurprising given the number of tax changes introduced by the Government over the last year. However, there are positive signs that private landlords will return to the sector in the coming twelve months, with a 4.5% month-on-month rise in valuations recorded in October.

Pick-ups

Despite the annual slowdown in the buy-to-let market, activity levels have risen in other areas of the market. There was a significant 6.4% increase in the number of property valuations, in comparison to the same month in 2015.

John Bagshaw, corporate services director of Connells Survey & Valuation said: ‘Total valuation market activity has improved over the course of the last twelve months-despite the attack on the buy-to-let market by the previous chancellor. Recently, as landlords have started to come to terms with the stamp duty surcharge and the announcement of the changes to treatment of mortgage interest, the buy-to-let market has started to pick back up.’[1]

Buy-to-let activity down by 13.3% in last year

Buy-to-let activity down by 13.3% in last year

Remortgaging rises

Encouraged by competitive deals and record low interest rates, remortgaging property owners have seen a substantial rise in business. There has been a 16.8% year-on-year increase in the number of remortgage valuations in October, with homeowners lured by attractive deals.

Mr Bagshaw continued by saying: ‘Remortgagers have been one of the most active segments of the market. As rates have fallen over the last twelve months, savvy homeowners have been taking full advantage of the benign borrowing environment and competition between lenders-borrowers can afford to be more selective than they could twelve months ago.’[1]

‘Homeowners on expensive standard variable rate mortgages are making big savings moving onto the best fixed and discounted rate mortgages around.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/buy-to-let-activity-levels-drop-13-3-but-predicted-to-grow

 

Blacklist of Rogue Landlords to be in Operation from Autumn 2017

Published On: November 9, 2016 at 9:30 am

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The Government’s blacklist of rogue landlords and letting agents will be in operation from autumn 2017, according to the Housing Minister.

Blacklist of Rogue Landlords to be in Operation from Autumn 2017

Blacklist of Rogue Landlords to be in Operation from Autumn 2017

Gavin Barwell was asked by Justin Tomlinson, Conservative MP for North Swindon, what progress has been made on compiling the blacklist of rogue landlords that was pledged under the Housing and Planning Act 2016.

Barwell responded: “The Housing and Planning Act 2016 introduced a package of measures to help local authorities crack down on rogue landlords, including a database of rogue landlords and property agents. The database is currently being developed and we expect it to become operational in autumn 2017.”

Tomlinson then questioned Barwell over what he is doing to “strengthen the protections afforded to private rent tenants under section 4 of the Defective Premises Act 1972”.

Barwell explained: “All homes should be of a reasonable standard and all tenants should have a safe place to live regardless of tenure. Under the Housing Act 2004 and following an inspection under the Housing Health and Safety Rating System, the local authority can serve a notice on the landlord to require improvements to a property.

“We have strengthened these measures through the Housing and Planning Act 2016 to take action against rogue landlords. These include a database of rogue landlords and property managers, banning orders, civil penalties of up to £30,000, and extended rent repayment orders.”

Alongside the blacklist of rogue landlords, all those renting out property in the UK should be aware of further measures introduced through the Housing and Planning Act 2016.

We have called on a legal expert to explain how each of the forthcoming measures will affect those in the lettings sector. Read more: /landlords-ready-housing-planning-act-2016/

We will keep you updated with any further announcements regarding the introduction of the blacklist of rogue landlords.

You must also be aware that from 1st December 2016, failure to comply with the Right to Rent scheme will be a criminal offence.

Only 2 weeks left to register for Rent Smart Wales

Published On: November 8, 2016 at 2:32 pm

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Landlords in Wales have just two weeks to sign up for Rent Smart Wales, before the scheme becomes a mandatory requirement.

A new registration and licensing system, Rent Smart Wales represents a large change for the private rental sector. The scheme is intended to push up the quality of rental accommodation in the country and went live last year.

Rent Smart Wales requirements

The scheme obliges all landlords and letting agents to register their investment properties and to undergo training to gain a licence, should an investor wish to self-manage their property.

Now, only 2 weeks remain until the 23rd November deadline, after which it becomes an offence to either let or manage a property without the sufficient licence.

Designed to improve standards in the private rental sector in the principality, Rent Smart Wales offers training courses and information for landlords. In addition, it gives local councils a greater understanding of where properties are located.

Only 2 weeks left to register for Rent Smart Wales

Only 2 weeks left to register for Rent Smart Wales

Registration

David Cox, Managing Director, Association of Residential Letting Agents, observed: ‘The law means landlords in Wales-and those in the rest of the UK who own properties in Wales-need to register themselves and their properties with Rent Smart Wales, as well as being suitably trained and licensed to carry out letting or property management activities.’[1]

‘If landlords do not wish to get trained, they need to arrange for a trained and licensed agent to manage their properties on their behalf,’ he continued.[1]

However, concern is growing that a number of buy-to-let landlords and letting agents in Wales have not signed up for Rent Smart Wales.

Cox notes: ‘Given the 23rd November deadline for registration and licensing is only two weeks away, it’s concerning that it appears only about one quarter of agents are currently licensed.’[1]

‘If landlords and agents find themselves unlicensed when the deadline arrives on 23rd November, they will be unable to practice, so it’s important to act to soon to ensure the necessary qualifications and other regulatory requirements have been undertaken before then, in order to comply with the legislation,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/deadline-looms-for-landlords-to-register-in-wales

 

Is the buy-to-let market as resilient as it appears?

Published On: November 8, 2016 at 12:24 pm

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A recent report from HMRC indicated that one in four properties were sold to investors during the third quarter of 2016. Despite this data not alluding to any kind of buy-to-let issues, perhaps the housing market is not is resilient as it appears on the surface?

Investment

What is not immediately common knowledge is that many of the properties sold in the last quarter to investors were completions of off plan deals. As such, these investors were already interested in buying the property, which were released onto the market following the completion of building work. It is possible that these sales were agreed before the referendum.

Of course, the figures for the next quarter could also include off-plan sales, with housebuilders offering new build properties to potential buyers months or years before completion. With this in mind, perhaps the real impact of the stamp duty reforms and the Brexit decision will not be felt until 2017.

Is the buy-to-let market as resilient as it appears?

Is the buy-to-let market as resilient as it appears?

 

Marc von Grundherr, Lettings Director at Benham & Reeves Residential Lettings, notes: ‘These figures bely the true state of the housing market. Having recently returned from a series of property investment seminars in the Far East, I can tell you that investor confidence has fallen off a cliff. No one is buying central London property right now and the only ones who would even consider it are vulture funds and investors aiming to pick up bargains when Sterling plummets in value again, which it invariably will once Article 50 is triggered. UK investors have also stayed away now that changes to mortgage relief and the wear and tear allowance have made buy to let far less profitable.’[1]

 

[1] http://www.propertyreporter.co.uk/landlords/are-positive-figures-in-the-housing-market-disguising-the-btl-famine.html

 

 

Redecoration a Growing Problem in Tenancy Deposit Disputes

Published On: November 8, 2016 at 11:40 am

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Redecoration is a growing problem in tenancy deposit disputes, according to the latest annual study from the Tenancy Deposit Scheme (TDS).

Redecoration issues now account for 32% of all disputes, ahead of rent arrears at 19%, but behind cleaning at 57%, and damage to fixtures and fittings at 51%.

Imfuna, the developer and provider of digital inventory app Imfuna Let, claims that interior décor is a growing concern for those in the lettings sector, as it causes the most confusion amongst landlords, letting agents and tenants.

The firm believes that the fundamental issue driving redecoration issues is a difference in opinion between landlords/letting agents and tenants. Landlords and agents frequently assume that tenants will

Redecoration a Growing Problem in Tenancy Deposit Disputes

Redecoration a Growing Problem in Tenancy Deposit Disputes

repaint a property at their own cost following a three or four-year tenancy, although they are not obliged to do so.

And while a few light scuffs after a six-month tenancy can definitely be classed as fair wear and tear, heavy markings, scrapes and several screw holes during the same length of time are certainly tenant damage.

The firm states that the longer the tenancy, the more allowance must be made for fair wear and tear.

The Founder and CEO of Imfuna, Jax Kneppers, explains: “Landlords and agents should recognise that there will be inevitable wear and tear to a property’s décor during a tenancy. However, clearly if there is damage to anything within the property, including damage to walls and ceilings, this is chargeable to the tenant.

“A thorough and professional inventory will capture the condition and décor at the start and end of the tenancy, and this should be used as evidence in the event of a dispute. Clear photographs and commentary detailing damage to anything within the property are vital if a dispute is to be resolved.”

He continues: “When looking specifically at walls and ceilings, the quality of emulsion paint will have an impact on how well walls will wear. For example, a new build will generally only be painted with a thin coat, which will wear much faster. A landlord may choose to cut corners and water down emulsion to make it go further; a landlord may also choose to use a good quality paint for the rented property, in the knowledge that the interior décor will be slower to show wear and tear.

“If a tenant has redecorated without prior consent of the landlord or letting agent in a non-neutral colour, then the cost of repainting can be charged to the tenant, as long as this is stipulated within the terms of the lease. The same is applicable if a tenant has allowed a sofa or other piece of furniture to continually rub against the wall, causing chipping and heavy rub lines.

“Other items not classed as wear and tear are nail holes, screw holes, blue tack marks, Sellotape, and additional cabling fitted either with cable clips or from a drilled hole through the wall. Grease marks and excessively grubby areas are not wear and tear.”

Kneppers adds: “When it comes to wallpaper, some discolouration will happen over time, and glued seams will slowly become loose and need re-fixing occasionally. Cheap wallpaper will tear and rub more easily than expensive wallpaper. With daily use, a few minor nicks to the surface of the paper are inevitable, as are a few light scuffs, especially in a heavy-use area such as halls and stairways. Tears to seams or any other part of the wallpaper are classed as damage, as are heavy rubs, which remove areas of paper.

“To clear up any confusion between landlords, agents and tenants, the property’s condition should be fully recorded through a comprehensive inventory at the start of any new tenancy, supported by a thorough check-in and check-out report.”

Landlords, have you ever had redecoration issues with your tenants? Read this advice to ensure that both parties understand their responsibilities.