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Em Morley

Interest Rates Likely to Rise, Says George Osborne

Published On: September 22, 2015 at 12:17 pm

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Categories: Finance News

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Interest Rates Likely to Rise, Says George Osborne

Interest Rates Likely to Rise, Says George Osborne

Chancellor George Osborne has revealed that interest rates are more likely to rise than fall, due to the success of the UK and US economies.

Osborne has been touring China to establish closer political and business ties.

On Tuesday, he told BBC Radio 4’s Today show that an increase in interest rates, suggested by the Bank of England (BoE) governor, Mark Carney, reflects the “robust growth” of Britain’s economy.

The BoE’s chief economist, Andy Haldane, recently indicated that interest rates might remain low, partly due to the slowdown in the Chinese economy.

Osborne said Britain has “the right people to make the call”, adding, “the governor has signalled, I think pretty clearly, the direction interest rates are heading”.

He also mentioned that the Federal Reserve has defied expectations by keeping interest rates down due to the decline in Chinese stocks.

He said that interest rate setters “are always going to be sensitive to what is going on at that moment, but the general signal coming from the Bank and Federal Reserve is, because the economies have been growing robustly in the last couple of years, the exit from very loose monetary policy is going to come”1.

1 http://www.theguardian.com/politics/2015/sep/22/uk-interest-rates-likely-go-up-george-osborne-china

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARLA Criticises Lack of Guidance for New Section 21 Rules

Published On: September 22, 2015 at 11:26 am

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Categories: Landlord News

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Landlords and letting agents are still expressing confusion over how they should respond to tenants’ requests for repairs, under new rules.

The Association of Residential Letting Agents (ARLA) has criticised the lack of official guidance and is concerned over the “uncertainties” surrounding the new legislation.

As the change comes into effect on 1st October, under the Deregulation Act, it is not long before every tenancy in England that starts on or after that date is affected.

ARLA Criticises Lack of Guidance for New Section 21 Rules

ARLA Criticises Lack of Guidance for New Section 21 Rules

Under the new rules, landlords and agents will face increased liability and risk.

They must provide an adequate response to repair requests by tenants within 14 days. Failure to do so could mean that the section 21 process cannot be used.

An adequate response is one given in writing, not over the phone.

The response must state the work to be conducted and give a reasonable timeframe for its completion. However, the new law does not specify what a reasonable timeframe is.

Determining factors could include the vulnerability of tenants and the nature of the complaint. However, all complaints must be dealt with.

If a response is not deemed adequate, the local authority may serve an improvement or emergency remedial notice, meaning that section 21 notices cannot be served for six months, as a way of avoiding so-called revenge evictions.

Repairs software supplier Fixflo has launched an upgrade to its service, helping to protect agents through the change.

Fixflo now offers a detailed and structured immediate response to tenants for every repair request received, a workflow for dealing with communications in cases involving vulnerable tenants, and the automatic compilation of time and date stamped repair requests and responses, which can be accessed and annexed to a section 21 notice.

The upgrade is available to all existing Fixflo customers, at no extra cost.

Managing Director of ARLA, David Cox, says: “While agencies will need to take their own legal advice and no liability is accepted due to the uncertainties surrounding this legislation, in the absence of further Government guidance, ARLA considers that the Fixflo system for dealing with the need to provide an adequate response constitutes best practise for the industry.”1

Partner and head of the landlord and tenant practice group at Dutton Gregory Solicitors, Robert Bolwell, speaks of the new law: “The Deregulation Act 2015 has marked a sea change in the way in which landlords can behave when confronted by a genuine disrepair issue raised by a residential tenant.

“It is now vital that landlords and their professional advisers have in place systems to respond quickly to a tenant’s complaint, no matter how trivial that complaint may seem at the outset.”1 

A video of Fixflo’s managing director, Rajeev Nayyar, discussing the change with property law expert Tessa Shepperson, can be viewed here: http://landlordlaw.tv/series-1-episode-2-repair-issues/

Also, a free guide to the new law, produced by ARLA and Fixflo, can be downloaded here: http://www.fixflo.com/Section-21

1 http://www.propertyindustryeye.com/arla-hits-out-at-lack-of-official-guidance-over-new-section-21-regime/

Average London home to hit £1m by 2020?

Published On: September 22, 2015 at 11:17 am

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Categories: Property News

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A new investigation has left would-be property purchasers in the capital concerned, with experts suggesting that prices could rise to hit an average of £1m by 2020.

The report from online portal Rightmove revealed that asking prices of houses coming onto the market have risen by 2.2%-more than £13,000-over the last month.

Rises

After a summer lull, this rise means that those looking for a new property in London can expect to pay an average of £620,003. Figures from the report indicate that this is an all-time high figure and represents a 08% on the former record set in July.[1]

‘This month’s 2.2% rise more than reverses the seasonal slowdown over the last two months when the average price of property coming to market fell by 0.6%,’ observed Miles Shipside.’[1]

He went on to say that, ‘it’s a volatile time of year for average prices however, as potential sellers of higher-priced properties tend to refrain from coming to market in the holiday period, but then get on with their home moving plans again in September partly influenced by children going back to school.’[1]

‘The back-to-normal service has resulted in new seller asking prices reaching another milestone, with a new record high,’ he added.[1]

Average London home to hit £1m by 2020?

Average London home to hit £1m by 2020?

Annual increase

In addition, the annual rate of property price increase has risen sharply to 9.5%, further widening the gap between supply and demand. The capital is now facing a desperate need for more homes.

However, there could be good news for those looking to buy in the boroughs of Newham and Tower Hamelets. In Newham, prices actually fell by 2.8% over the month, while in Tower Hamlets, prices dropped by 4.4%.[1]

This meant in Newham, average prices currently stand at £361, 557, while in Tower Hamlets, this figure is £566, 497.[1]

[1] http://www.wharf.co.uk/news/property/average-london-property-prices-could-10098242

 

 

New Service Matches Referenced Tenants to Properties

Published On: September 22, 2015 at 10:25 am

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Categories: Landlord News

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A new service has launched that references and credit checks prospective renters before property viewings. It then matches these tenants with suitable homes uploaded to the website by member letting agents.

Tenants Plus says the site improves efficiency and cuts costs for agents during the renting process.

The service also benefits tenants, as they will not lose holding deposits paid after viewings due to their references failing.

New Service Matches Referenced Tenants to Properties

New Service Matches Referenced Tenants to Properties

Tenants and guarantors must pay £17 + VAT upfront for a reference and before they can see the available properties or go on viewings.

Founder of Tenants Plus, Wayne Treveil, has previously worked at Acorn, Square Mile Property Management and the Happy Tenant Co.

He explains the new idea: “No system was available in the market that helped prevent letting transactions falling through due to failed referencing.

“After spending 15 years working in the lettings and property management industry, and being concerned about this situation, I have developed a service that provides the solution.

“Currently, referencing and credit checks are carried out after a viewing has taken place and an offer made. At this point, the tenant has paid a holding deposit to secure the property as well as administrative and referencing fees that are generally non-refundable.

“If the tenant fails the referencing there are significant delays and cost implications for the letting agent.”

Tenants Plus notifies agents of pre-referenced tenants before viewings take place and match them to the agents’ available properties.

Treveil adds: “If an agent has an offer from a Tenants Plus tenant, it’s money in the bank.”1

He emphasises that Tenants Plus is not a property portal. The only people that can see available homes are active renters who have registered to find a property through the service.

He says the website already markets over 1,500 rental properties and receives new agent registrations every day.

Agents must create an account to set up a company profile. Then, they can either manually upload properties or use an automated data feed.

At this point, they are ready to receive pre-referenced tenant leads from renters that have already been matched to their properties.

Agents are not charged for tenant leads, but must pay to access the tenant’s report and associated documents.

Take a look at the website here: http://www.tenantsplus.co.uk

1 http://www.propertyindustryeye.com/service-launches-matching-pre-referenced-tenants-to-agents-properties/

 

 

 

 

 

Right to Buy programme a success

Published On: September 22, 2015 at 10:02 am

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Categories: Landlord News

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New figures published by the Government indicate that the Right to Buy programme in Britain has created almost 40,000 new homeowners during the last three years.

Housing Minister Brandon Lewis said this total is more evidence of how Government initiatives aimed at assisting would-be homeowners are working. Mr Lewis noted that there have been 3,644 new starts and acquisitions since the Right to Buy scheme was revitalised in 2012.

Positivity

Lewis explained that this means the 3,054 homes sold in the first year of the scheme are already being replaced on a one-for-one basis.

‘For years, the discounts available under the Right to Buy were left to dwindle, denying thousands of people the opportunity to own their own home, ‘Lewis noted. He feels that, ‘this reinvigorated scheme has turned that around and means nearly 40,000 people have been able to buy the home they love, many of whom might otherwise never have had the chance to become homeowners. On top of that, it’s getting homes built, with councils replacing the additional homes sold on a one for one basis.’[1]

In addition, data shows that since the reinvigoration of the Right to Buy scheme, almost £964m in sales has been re-invested into the construction of new homes. A further £2.2bn is to be invested in the next three years. This means that in total, in excess of £3.2bn will be raised to invest in affordable housing building as a result of Right to Buy.[1]

Right to Buy programme a success

Right to Buy programme a success

Success

In the three months to June this year, 2,779 households purchased property under the Right to Buy scheme. As a result, local authorities received £223m from these sales, 5% higher than the £212 in the same period during 2014.

Mr Lewis also pointed that since 2010 the Government has launched a range of measures to assist aspiring homeowners to purchase their own home. Overall, since the beginning of 2010, 232,000 households have been helped to take their first step onto the property ladder through the Help to Buy and Right to Buy schemes.

What’s more, the Government has promised to build 200,000 new starter homes, available to first-time buyers under the age of 40 at a 20% discount. Additionally, a new Help to Buy ISA will be introduced to assist a further number of would-be homeowners to save up for a deposit.

[1] http://www.propertywire.com/news/europe/uk-right-buy-programme-2015092111002.html

 

 

 

Rent Rises Drop for First Time This Year

Published On: September 22, 2015 at 9:23 am

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Categories: Landlord News

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The amount of letting agents reporting rent rises has dropped for the first time this year, according to recent research from the Association of Residential Letting Agents (ARLA).

ARLA’s August private rental sector report states that supply has also fallen to levels seen in June, following a surge in July.

Rent Rises Drop for First Time This Year

Rent Rises Drop for First Time This Year

The typical ARLA agent had 178 properties for rent in August, compared with 189 in July.

However, the amount of prospective tenants in the private rental sector rose slightly in August. Letting agents reported an average of 36 house hunters registered per branch, up from 35 in July.

Just three in ten (33%) agents experienced monthly rent increases in August. This is down from 37% in July.

In the South West, two out of every five agents (42%) witnessed rent prices rising in August, up four percentage points from the previous month.

Only 12% of agents reported rent price growth in the North West during this period.

Tenants in Wales are also paying more in rent, with the amount of landlords putting prices up increasing by three times from July. In August, 36% of letting agents in Wales saw prices rise, up by 25% from July, when only 11% of agents reported growth.

In London, the number of homes available to rent continued to decrease in August, driving demand levels higher and putting added pressure on hopeful tenants.

Only 110 properties are registered per letting agent branch in the capital, down from 117 in July. Finding a rental home in London is becoming increasingly challenging.

Managing Director at ARLA, David Cox, comments on the research: “Our findings this month are good news for the majority of tenants, as less are experiencing rent hikes.

“However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market.

“With increasing pressure on the dwindling supply of housing and the number of house hunters growing, rent increases are unfortunately very common – as one in three tenants are experiencing.

“Despite the fact they have fallen this month, it is likely they will go back up again over the next few months.”1

1 http://www.propertyindustryeye.com/rent-increases-fall-for-first-time-this-year-says-arla/