Posts with tag: property

Company fined £47,900 for breach of HMO regulations

Published On: February 17, 2016 at 12:12 pm

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A property company managing a HMO in Notting Hill has been ordered to pay a substantial fine, after not complying with HMO regulations.

AA London Property Limited was fined £47,900 in relation to 24 charges under the Housing Act 2004. Council officers found numerous breaches or regulations. These ranged from a faulty smoke detector to unsafe bannisters.

Charges

The director of AA London Property Limited, Jagit Kaur, was fined £21,780 relating to 16 charges under the Housing Act 2004. Kaur entered guilty pleas to nine of the charges at a previous hearing and was subsequently found guilty of the other seven charges after a trial at the City of London Magistrates’ Court.

Both the firm and Kaur were prosecuted by the Royal Borough of Kensington and Chelsea in relation to offences at 14-16 Clanricarde Gardens, W2. The prosecutions followed a failure to comply with a Prohibition Order made under the Housing Act 2004, which prohibited the use of one of the rooms as living accommodation. In addition, there were breaches of the Management of Houses in Multiple Occupation (England) Regulations 2006 and failure to produce tenancy agreements under Section 235 of the Housing Act 2004.

Kaur and the company opposed the need to provide tenancy agreements to the council, citing that they would be in breach of the Data Protection Act. Additionally, they disputed that a sink was blocked on the day of inspection by a council officer and that smoke alarms were incorrectly installed. Kaur’s defence team argued that somebody else was managing the property.

Company fined £47,900 for breach of HMO regulations

Company fined £47,900 for breach of HMO regulations

Responsibilities

Magistrates also heard that the property in question is a six-storey HMO, that had been converted into 35 lettings. Around 45 tenants lived in the building.

In court, the council produced a copy of the HMO application form, which confirmed that AAA London Property Limited was the licence holder and that Kaur was the manager, with responsibility.

When sentencing, the court took into account the previous guilty pleas, alongside both parties’ good character. As such, the magistrates imposed a reduction to the financial penalty imposed. In addition to the fine AAA London Property Limited and Kaur were told to pay council costs of £7,709.75 and to pay a victim surcharge of £120.

Duty

‘Councils have a duty to ensure that licensed HMOs are fit for the number of occupiers,’ said Councillor Rock Feilding-Mellen, the Royal Borough of Kensington and Chelsea’s cabinet member for housing. ‘The purpose of the licensing requirements is to enable local authorities to ensure that HMOs are safe, have adequate facilities for the occupiers and are properly managed.’[1]

‘It is very important that, when faced with landlords who are not adhering to the appropriate regulations and licensing conditions, we take all necessary action to ensure that tenants are protected and that the properties they live in meet all legal requirements. In this case, both the company and its director failed to meet the minimum standards and their responsibilities as a landlord so I am very pleased that the court has handed down these fines,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/2/notting-hill-property-company-fined-47-900-for-hmo-failings

 

Young, would-be homeowners stuck in rental properties

Published On: February 17, 2016 at 10:22 am

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A think tank has presented a gloomy outlook for would-be homeowners looking to take their first steps onto the property ladder. It claims that most working households on average incomes will be forced to rent for the indefinite future.

Analysis from the independent Resolution Foundation body indicates that for this group, home ownership will approach just one-in-ten by 2025.

Decline

With the largest decline in young families owning property is for those on modest incomes, it has also slipped for those that are on benefits and on higher incomes.

As a result of this, home ownership is becoming more and more the domain of older and wealthier households.

Data from the analysis shows that those aged 65 or older now make up 32% of all homeowners. By contrast, those aged between 18 and 34 account for just 10%, down from 19% in 1998.

In addition, under 35 modest income working households have also recorded sharp declines. Homeownership has dropped from 57% in 1998 to 25% at present. In contrast, levels of private renting have more than doubled, from 22% to 53%.

Young, would-be homeowners stuck in rental properties

Young, would-be homeowners stuck in rental properties

Capital pains

This decline is more harshly felt in London, where the proportion of younger people on modest incomes owning their own property have fallen to 13% over the last ten years. This is a drop of more than 50%.

Should this trend continue in the capital, young homeowners on modest incomes would slip to less than one-in-twenty by 2025.

Nationally, homeownership currently stands at around 63%.

‘With the average modest income household having to spend 22 years to raise the money needed for a typical first time buyer deposit-up from just three years in the mid-1990’s-it’s no surprise that owning is increasingly a pipe dream for many,’ observed Matt Whittaker, chief economist at the Resolution Foundation.[1]

‘Schemes such as Help To Buy can only ever help a minority-often providing a leg-up to those who would eventually climb onto the housing ladder anyway. More than half of those benefiting from Help To Buy to date have household incomes in excess of £40,000. It is hard to imagine any way out of the home ownership crisis facing those on low to middle incomes that doesn’t involve significantly boosting house building,’ Whittaker added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/2/figures-show-why-private-rental-sector-is-dominated-by-young-tenants

 

House prices up 6.7% in year to December

Published On: February 16, 2016 at 11:42 am

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The most recent ONS data on house prices in Britain indicate a rise in values in the year to December 2015.

However, the 6.7% annual rise recorded was down from the 7.7% seen in November of the same year.

Additionally, the report shows that annual house price inflation stood at 7.3% in England, 1.0% in Wales, -0.2% in Scotland and 1.5% in Northern Ireland.

Drivers

Data from the report shows that yearly price increases in England were driven by rises in the East (9.7%), London (9.4%), and the South East (8.8%). Taking out London and the South East, prices have risen by 5.1% in the year to December 2015.

Also, prices paid for property in December were 6.4% higher on average than in December 2014. Owner-occupiers saw prices increase by 6.9% over the same period.

Paul Smith, CEO of haart estate agents, said that, ‘today’s data displays another considerable annual uplift in average house prices across the UK, in part driven by increased levels of competition at the end of last year as buy-to-let investors sought to complete on their second home purchase in anticipation of the 3% stamp duty surcharge coming into effect in April.‘[1]

‘As we reach mid-February there is little chance of any investor, especially where the transaction is part of property chain, being able to complete by April and as a result this market anomaly is tailing away,’ Smith continued.[1]

Healthy

Smith went on to say however that, ‘we are still seeing healthy levels of activity in the property market, across both sales and lettings. One of the ongoing problems last year was a shortage of homes, coupled with a high appetite for home ownership, but the New Year has brought with it enhanced levels of activity and the volume of properties put up for sale has increased 5% annually.’[1]

House prices up 6.7% in year to December

House prices up 6.7% in year to December

He believes, ‘the biggest hurdle to an efficient market is a shortage of professional skills,’ and says, ‘we are finding there are not enough specialists such as surveyors and lawyers to cope effectively with the renewed levels of activity and professional bodies must implement ways of encouraging more talented people into their fields.’[1]

Mismatch

Richard Sexton, director of chartered surveyor e.surv, observed, ‘there seems to be something of a mismatch within the UK housing market at the minute. Mortgage lending remains healthy, reaching its highest peak in nine years in January. A buy-to-let rush to beat April’s stamp duty changes, is part of this story, spurring a notable lending lift.’[1]

‘Buyers prospects appears healthy too. With low inflation, rising employment and wages boosting savings, potential home-movers should have more options in the housing stakes and be in a better position to pick and choose. But while lending and personal finances aren’t holding aspiring homeowners back-rising prices certainly are,’ he added.[1]

Solving the problems

Concluding, Mr Sexton noted, ‘for these prices to be fully tackled, supply problems need to be confronted. And crucially, more people need to be encouraged to move. Stamp duty costs, lack of stock and higher prices are deterrents to would-be purchasers. As a result, people are widening their search areas and seeking out new potential locations-leading to increased popularity in the East and South East. The appeal of these areas will only grow as those locked out of London look elsewhere.’[1]

[1] http://www.propertyreporter.co.uk/property/uk-house-prices-gain-67-says-ons.html

 

Swipe Right for the Perfect Property!

Published On: February 14, 2016 at 10:43 am

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Some of us might take to our smartphones to find the perfect partner this Valentine’s Day, but for property lovers, there’s another app that will deliver more promises than any stuffed animal or box of chocolates.

Knocker is the smartphone app that connects prospective homebuyers and tenants with their dream property. Simply swipe left or right to shortlist a selection of possible properties.

“This may sound brutal, but it’s the first stage in a selection process,” explains Jon Grant, one of the app’s founders. “What you then do with a shortlist is really up to you.”

Grant believes that Knocker has “changed the way that people look at properties, and made the whole process more immediate and responsive”.

It seems that the majority of buyers and renters already use the internet to search for their next home. So what does Knocker do differently?

To start with, you can simply walk down the street, spot a house for sale, load up the app and find out how much it costs – ideal for those who know exactly where they want to live and want to find out about prices in the area.

Swipe Right for the Perfect Property!

Swipe Right for the Perfect Property!

The Tinder-esque app will also help the over 50% of us that buy a property because we’ve fallen in love with it.

“I think most people know whether the property is for them within ten seconds of stepping into a place,” says Grant. “If the stars align, you’ll know if the property is just right, and feelings grow from there.”

So what makes us fall in love with a property?

Grant explains: “The key things are whether the property meets their need and their mental image of what they want from a home. I think if anything exceeds that even slightly, they could be hit by Cupid’s arrow.”

And it seems viewing a property really can be as romantic as that. Grant has found that how the property is presented, how the viewer is feeling, and factors such as the general environment and the weather that day can all play a part.

Although we may assume younger buyers are more likely to use an app like this, Knocker’s largest demographic ranges from 22-44, with most spending time to browse properties, shortlist their favourites and contact agents.

Landlords are also catching onto the trend. Grant has heard from numerous buy-to-let investors who “love using the app and have made purchases as a result of finding properties”.

He believes the benefit for landlords is being able to identify a particular street, understand prices in the area based on experience or what they see on the app, and find investment opportunities that they know will make them strong returns.

But should a landlord do what other buyers do and fall in love with a property? “Probably not,” says Grant. “It would be like a farmer naming his livestock!”

He continues: “I don’t think there’s anything wrong in having strong feelings towards an item in your portfolio, but a polarised emotion – such as love – might cloud overall objectivity.”

Knocker is most commonly used in fast-paced cities, where affordability and availability make it vital to be able to find a property quickly and efficiently. 20% of Knocker users have a property to sell, but are yet to appoint an estate agent. “We’re planning to do something about that really soon,” says Grant.

With changes to landlord taxes fast approaching, could now be the time to take the plunge and enter the speed-swiping trend?

Knocker might just be right up your street, as it’s proved to cast its matchmaking spell for many. “We know that users of our app absolutely love it, because they tell us, and then we blush a little,” adds Grant.

Visit the website and download the app here: http://knockerapp.com/?utm_source=Landlord%20News&utm_medium=Blog&utm_term=knocker%2C%20app%2C%20&utm_campaign=Landlord%20News

Carry out mid-term inspections now, urges AIIC

Published On: February 13, 2016 at 10:01 am

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Landlords are being advised that now is the perfect time to carry out a mid-term inspection of their rental property.

The Association of Independent Inventory Clerks (AIIC) is calling for prompt inspections as many homes could be suffering from mould, generally caused by condensation issues.

Prevention

In order to prevent the problem from escalating, the AIIC urges landlords to carry out these checks on properties in the next few weeks.

‘Mould can be caused by a lack of ventilation or incorrect drying of wet washing-even if just one tenant is living in the property,’ noted Patricia Barber, Chair of the AIIC. ‘It can also be caused by on-going leaks both inside and outside the property, blocked gutters and missing roof tiles.’[1]

If mould is found to be present in a property, the AIIC advises that landlords should ensure that this is not due to external factors, lack of ventilation or any other issue that they can easily solve themselves.

Carry out mid-term inspections now, urges AIIC

Carry out mid-term inspections now, urges AIIC

Instructions

On the other hand, if a build up of mould is being caused by substandard living conditions, the landlord should inform their tenants of actions required in writing.

These should include:

  • reference to ventilating the property
  • wiping down walls and windows
  • using extractor fans
  • not putting damp washing on radiators or heaters
  • rubbing down and mould spores as soon as they are noticed

Barber concluded by saying, ‘if mould is not dealt with on a regular basis the resulting damage could cause both tenant and landlord a lot of money at the end of a tenancy.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/2/landlords-urged-to-carry-out-mid-tenancy-inspections

 

‘New approach’ to construction on floodplains needed

Published On: February 9, 2016 at 12:55 pm

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With the UK being battered by storm Imogen and with the bad weather showing no signs of abating, a land agent has called for a different approach to construction of homes.

Aston Mead believes that a change in approach is required if Britain is to continue to construct properties on flood plains.

Flooding

Almost 10,000 homes a year are built on floodplains in the UK, with an average of one in fourteen homes constructed on land with a significant threat of flooding.

‘This country needs to get rid of its sandbag mentality and start building homes which have flood prevention at the core of their construction,’ said Aston Mead Director Richard Watkins. ‘We can’t go on treating flooding as an afterthought. Instead, we should be building properties which are specifically designed to rise and fall with the flood water. The technology is already available out there; all we have to do is make best use of it.’[1]

Watkins believes that homes that are built on top of a pre-cast pontoon, which sits inside an excavated concrete void, are the way forwards. These would be appropriate as when flood water enters the void, the pontoon rises, assisted by vertical rails which can be obscured within walls or chimney breasts.

When flood water levels drop, the house goes back to its original position, with a pump to get rid of any excess water. Access will be available at all times, using an articulated pathway, with services remaining connected through a number of flexible knuckle joints.

‘Completely Scalable’

Mr Watkins feels, ‘this system is completely scalable and designs of properties can range from the very traditional to the highly contemporary, with the footprint of the floating pontoon extending beyond the building itself to include garages, terraces and gardens. The pontoons can also be used as fully habitable basements and there are few limitations to size, design or even the number of storeys that can be added on top. An additional advantage is that as water fills the void, it reduces the amount of flood water passing onto neighbouring properties.’[1]

'New approach' to construction on floodplains needed

‘New approach’ to construction on floodplains needed

‘These buildings can be mortgaged on standard terms by most high-street lenders and they also qualify for standard household insurance-despite being on the floodplain. What’s more, if they are also fitted with grey water recycling and photo-voltaic panels, they can remain fully functional safe havens-even in the worst flooding conditions,’ he added.[1]

Record

The most recent Met Office figures suggest that December 2015 was the wettest month ever recorded in the UK, with almost twice the amount of the typical expected rainfall.

As a result, Watkins notes that, ‘resorting to a supply of sandbags in the garage just in case is no longer good enough. We can’t continue fighting floods forever. Rain will always fall and water will always rise. And with annual rainfall set to continue to rise, even areas not currently at risk may become vulnerable to flooding in the future.’[1]

‘These new construction methods mean that we can help develop floodplain sites, in the certain knowledge that future owners won’t experience the sort of devastation from flooding that we’ve already seen across the country this Winter,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/property/building-homes-which-rise-with-flood-water.html