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Em Morley

Calls to improve conditions for older renters

Published On: October 27, 2016 at 9:19 am

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Concerns are growing over the conditions facing a number of older people residing in the private rental sector.

The volume of older renters is set to soar during the next few years, but a worrying new report from Age UK has warned that conditions must improve sharply.

Distress

Age UK’s report suggests that if conditions do not markedly rise, more people will face ‘squalor and distress’ at the hands of slum landlords.

In addition, the charity claims that many vulnerable older renters are forced to reside in ‘awful privately rented accommodation.’ This, it claims, is down to negligent or disinterested landlords and letting agents.

Households aged 65 or over make up around 10% of the current private rental sector, but these numbers are likely to grow substantially.

A survey conducted by the National Landlords Association found that the number of UK retirees moving into the sector has risen by 200,000 over the previous four years. What’s more, it predicts that over one-third of over 60’s could be living in the private rental sector by 2040.

Bad experiences

Calls to Age UK’s Advice line between 2013 and 2016 showed that lots of older renters have had bad experiences. These include:

  • failure to carry out repairs
  • sharp rent hikes
  • poor, cramped, cold conditions
  • refusal of aids and adaptations, such as ramps or handrails
Calls to improve conditions for older renters

Calls to improve conditions for older renters

As such, the charity is proposing urgent legal reforms to improve the rights of older tenants.

Caroline Abrahams, charity director of Age UK, stated: ‘Calls to our advice line show that some highly vulnerable older people are enduring grim living conditions in the private rented sector and this is truly shocking. No one should have to put up with such squalor at any age, but the idea that a chronically ill older person could be living on their own for weeks or even months with no proper heating, or cooking facilities or hot water is sickening.’[1]

‘The law is far too feeble and the withering away of local environmental health services is making the problem worse. The upshot is that older tenants in the private sector are almost entirely reliant on the decency and professionalism of landlords and letting agents, and sadly this is leaving some at risk of neglect and in the worse cases of bullying and abuse. As it is at the moment, the bottom end of the private rented sector is no place for a vulnerable older person, but if that is what we believe as a society we need to do something about it and create better alternatives,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/number-of-older-tenants-set-to-soar-but-awful-conditions-must-improve

 

Landlords want mandatory client money protection

Published On: October 26, 2016 at 1:39 pm

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New research has revealed over four out of five landlords believe that client money protection (CMP) should be made compulsory when using a letting agent to rent out property.

The investigation., conducted by Total Landlord Insurance, asked organisations to provide a response on whether they think CMP should be made mandatory in 2016. Of 85% of landlords who use a letting agent, 81% think it should be made compulsory.

Risk

Recent data released by YouGov revealed that hundreds of thousands of pounds of landlord and tenants’ cash are at risk, as they are not protected by CMP.

At present, letting agents in the UK currently hold more than £2.7bn of landlord and tenants’ money in the form of rent and tenancy deposits. However, it is believed that around one in five tenants will not be able to recover funds should their agent steal them, or uses it for fraudulent purposes.

Steve Barnes, associate director at Hamilton Fraser, noted: ‘Client money protection, like redress scheme membership, should be compulsory for this sector. This change would give the consumer added protection and ultimately raise standards throughout the industry.’[1]

Landlords want mandatory client money protection

Landlords want mandatory client money protection

Group

The Government has moved to establish a working group with colleagues from the House of Lords to assess if CMP schemes should be made mandatory. This is being led by Liberal Democrat Peer Lord Palmer and Labour’s Baroness Hayter.

These schemes, which hold cash independently, are voluntary, with the Government estimating that only 60-80% of agents use them.

Sean Hooker, head of redress at the Property Redress Scheme, said: ‘With an increasingly growing rental sector and the money involved, the risk of serious economic damage that could easily occur without adequate safeguards, is something we cannot be complacent about.’[1]

‘These figures clearly show that landlords see this protection as essential to ensure they deal with safe and professional agents that they and their tenants can trust,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/landlords-overwhelmingly-support-compulsory-client-money-protection

 

One in five Britons have fallen out with neighbours

Published On: October 26, 2016 at 11:17 am

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An interesting new report has revealed that around one in five property owners has been involved in a dispute with their neighbours.

A portrait of the modern British community report from Co-op insurance gives an insight into most-common disputes and changing communities in the UK.

Nuisance Neighbours

Of people who have had problems with their neighbours, noise was the most common reason. 41% of residential problems were due to noise related issues, such as loud arguments, parties or banging around.

22% of respondents suffered rude or abusive neighbours, with 21% experiencing issues with barking dogs. 19% had issues surrounding parking.

By region, London and Birmingham saw the largest number of neighbour problems. 25% of those questioned in these regions said they had seen some kind of problem in the last year. On the other hand, people in Milton Keynes get along the most, with just 7% experiencing neighbour disputes in the same period-compared to the national average of 20%.

The top-ten reasons for disputes with neighbours were found to be:

1 Excessive noise 41%
2 Rudeness or abuse 22%
3 Barking dogs 21%
4 Parking wars 19%
5 Nosey neighbours 18%
6 Unruly kids 15%
7 = Boundary disputes 12%
7 = Gossipy neighbours 12%
8 Messy gardens which blight the community 11%
9 Roaming pets 7%
10 Not keeping shared facilities maintained 6%

[1]

One in five Britons have fallen out with neighbours

One in five Britons have fallen out with neighbours

Good neighbours

Data from the report shows that a Briton’s ideal neighbour would show respect at all times, with 77% agreeing this makes a good person to live next door. 75% said tolerance was the most important trait.

Half of under 35’s have never been in their neighbours’ property, but 77% of over 55’s have.

However, just 19% of people have been invited round to a neighbouring property for a brew!

James Hilton, Director of Products at the Co-Op Insurance, observed: ‘The research shows as a nation we’re at risk of losing the community spirit we once prided ourselves on. Strengthening our communities whilst making them safer places to live is firmly at the heart of the Co-op. Communities are valuable as they allow people to interact with each other, share experiences and develop valued relationships. Without communities we’re in danger of living isolated lives.’[1]

‘However, as our lives, both in and away from the home, become ever busier and we spend more time engaged with technology – TV, the internet and social media, its seems we are becoming ever-more distant from our closest neighbours.  As a nation we need come together, lose the British stiff upper lip and engage with our neighbours, who in time may become friends,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/1-in-5-brits-have-been-involved-in-a-dispute-with-neighbours.html

Property industry reacts to third Heathrow runway announcement

Published On: October 26, 2016 at 9:53 am

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Yesterday saw the Government give its approval to a third runway to be built at Heathrow airport.

Transport Secretary Chris Grayling hailed the decision as, ‘truly momentous,’ believing that trade and employment will soar massively as a result.

However, the controversial ruling has split the Cabinet. Foreign Secretary Boris Johnson has labelled the move as ‘undeliverable.’ Education Secretary Justine Greening, with a constituency in South West London, has also been critical of the move.

But just what will the proposed changes mean for the housing market in the region?

Market take-off?

Online estate agent eMoov.co.uk said that the extra runway might create London’s first affordable housing pocket-but not in a good way.

783 properties will have to be demolished, affecting numerous housing markets across South West and some parts of prime central London.

During the past decade, prices in Hillingdon, where Heathrow is based, have increased by 77%. However, eMoov CEO Russell Quirk feels the decision could lead to a drop of at least 20% for some property prices in the capital.

Of course, those properties in the surrounding regions will be worst affected, but Mr Quirk also foresees issues for homeowners in Richmond, Westminster and Hammersmith and Fulham.

Bad news

Quirk observed that the move is, ‘Great news for the UK economy and indeed those that frequently fly out of London for both business and pleasure. This decision has been long overdue and it’s a welcome conclusion and probably the best result for London as a whole.’[1]

On the other hand, he feels the news is, ‘Not such great news for the hundreds of residents that will see their properties demolished as a result of the expansion of a third runway.’ In addition, Quirk sees the news as, ‘Even worse for homeowners in Hounslow, Kew, Windsor, Maidenhead and other surrounding areas who are likely to see the value of their property blighted, as a result of a lengthy construction process and ongoing noise and air pollution.’[1]

Continuing, Mr Quirk noted: ‘No one in their right mind could find a property desirable if that property sees jumbo jets hurtling past at all hours of the day and night, rattling secondary double glazing and leaving the faint aroma of jet fuel lingering in the air.’[2]

‘Although the expansion will mean great things for London and the economy, it could see house prices in those areas worst affected by the noise and air pollution plummet by as much as 20% as a result. We aren’t talking a month or two of minor road works, this is a seriously large project with ongoing, permanent implications for those impacted by it. A fall in value of 20% is a very realistic expectation given the negative impact noise and air pollution can have to a property’s desirability and we could see the average house price in the likes of Hounslow and Hillingdon sink to around £330,000,’ he concluded.[2]

Property industry reacts to third Heathrow runway announcement

Property industry reacts to third Heathrow runway announcement

Impact

Mark Hayward, Managing Director, National Association of Estate Agents, observed: ‘Today’s decision by the Government is likely to have a negative impact on house prices in the immediate vicinity of Heathrow. However, alongside today’s announcement, the Government has also released details of a fresh consultation, while the threat of judicial review still remains high. This means homeowners that will be impacted by the extra runway should not rush into making knee-jerk decisions, as they have time to assess their options.’[3]

‘In addition, the Government has confirmed that homeowners facing compulsory purchase will receive 125% of full market value for their properties, plus stamp duty, legal fees and moving costs. While a person’s home is much more than bricks and mortar, it is vital that the Government honours this commitment to ensure that those impacted are offered some financial security for the years ahead,’ he added.[3]

[1] eMoov press release: Heathrow Expansion Could Blight Property Prices, 25.10.16

[2] http://www.propertyreporter.co.uk/property/third-runway-could-lead-to-a-20-dr0p-in-house-prices.html

[3] NAEA press release: ‘National Association of Estate Agents comments on Heathrow expansion’ 26.10.16

Do You Own a Spooky Property?

Published On: October 25, 2016 at 10:04 am

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A new study by specialist insurance broker Towergate has found that half of Britons believe that they have experienced some sort of paranormal activity in their property, with one in eight even moving out because they thought their home might be haunted.

Spooky property

Do You Own a Spooky Property?

Do You Own a Spooky Property?

According to the study, many of us have experienced weird events in our homes – almost a third of people confess to having been spooked in their properties at night. Meanwhile, 17% have seen a ghostly figure, a quarter have heard strange or unexplained noises, and 18% have felt a sudden and icy chill.

The research also found that 13% of Brits would move out immediately and put their house up for sale if they thought it was haunted, while 9% would contact a paranormal investigator. Just 6% would prefer to speak to a member of the clergy, while some enterprising homeowners (6%) would even try to make some money by organising paid visits or overnight stays.

Haunted house hunters 

Spooky properties are also putting homebuyers off their purchasing plans. The study found that one in eight Brits (12%) have looked around a house and decided not to put in an offer because it was too spooky, while 14% would not buy a home if their pets were spooked by it.

Two-thirds would not buy a house near a graveyard, an undertakers or a sinister-looking church. Unsurprisingly, three-quarters would not buy a property near a morgue.

Meanwhile, many prospective homebuyers would look for a sizeable discount on a property that was said to be haunted, with almost a third saying they would be satisfied with 20% off the asking price. But even so, almost half of homebuyers (45%) insist that no reduction in price would be enough for them to move in.

Towergate’s Drew Wotherspoon comments on the findings: “When there are stories of something strange in a neighbourhood, this can be a huge turn off for potential buyers. Some people thrive on stories of haunted houses, and can use tales of things going bump in the night to their advantage.

“What is clear from this research is that spooky vibes can be real deal breakers when it comes to buying and selling properties – and this makes it a scary time for sellers.”

Have you ever been put off buying a spooky property?

Remember that to celebrate Halloween, Just Landlords is offering you the chance to win a great prize! Enter the Terrible Tenant Tales competition now: https://www.justlandlords.co.uk/news/enter-terrible-tenant-tales-competition-halloween/ 

Why Property Has Been the Best Investment of the Last Ten Years

Published On: October 25, 2016 at 8:59 am

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Property has been named the best investment in the UK over the last ten years, delivering a significantly higher return than alternative options, such as the stock market and savings accounts.

A new study by estate agents Leaders and Romans compared the return an investor would have received in each of the four markets, had they invested an initial £50,000 in 2006.

Why Property Has Been the Best Investment of the Last Ten Years

Why Property Has Been the Best Investment of the Last Ten Years

The research revealed that the buy-to-let market has generated a 175% return over the past decade, equating to a profit of £138,936. In comparison, gold has delivered a profit of £50,673, interest on savings accounts is worth £14,447, and a £50,000 investment in the FTSE 100 has yielded just £2,969 over the same period.

The Letting Managing Director at Romans, Michael Cook, says: “Buy-to-let performs significantly better than other investments in terms of an overall return. Our research shows a buy-to-let investor in 2006 would be almost £90,000 better off today than somebody who invested in gold, and more than £135,000 up on somebody who bought stocks and shares.

“Although property investment can be more time-consuming and hands-on, with such incredible results at the end, it’s certainly worth it.”

Although gold, stocks and shares, and savings offer greater liquidity than property, which can take several weeks to buy or sell, this isn’t deterring astute investors, who value the dual benefits of a monthly rental income and capital appreciation over time.

Allison Thompson, the Managing Director at Leaders, explains why she thinks property is the best investment: “Despite many changes over the last ten years to the housing market and wider economy, buy-to-let is still the clear winner. As well as the most rewarding, it is also the safest of all the investment options over the long-term. We have seen historically that, although cyclical, house prices always rise in the long run. With the acute shortage of housing across the UK, this is only likely to continue.

“Cautious investors can minimise their risks in a number of ways, including utilising rent guarantee schemes to effectively insure their income – an option not available with other investments. This, along with the substantial returns to be made, make property more attractive than all other types of investment.”

If you are thinking of investing in or further into the property marker, you must be aware of the difference between Rent Guarantee Insurance and guaranteed rent schemes: https://www.justlandlords.co.uk/news/rent-guarantee-insurance-guaranteed-rent-schemes/

Do you believe that property is the best investment of the last ten years?