Property

Two in five renters fear they will never afford to own a home

A significant number of people renting in the UK say they will never be able to afford a home, according to new research by Halifax and YouGov.

The study found that two in five renters cannot see how they will ever be in a position to buy a property, despite a desire to own a place of their own.

It was also revealed that around three in ten private renters in the UK think it is now normal for people to rent for life. However, just 14% of those aged between 18 and 24 share this view, with more than half of this group believing they will one day own their own property.

Renters aged between 35 and 44 are less optimistic about  being able to ever acquire a property, with a third considering it normal to rent for life and 28% believing that they will never buy somewhere.

Russell Galley, managing director at Halifax, commented: “Taking that first step onto the property ladder remains a rite of passage for many,” said Russell Galley, managing director at Halifax.

“Last year, first-time buyers accounted for the majority of the mortgage market for the first time in well over 20 years. This shows that with the right support and a few sacrifices, home ownership can remain an attainable goal.

“The financial hurdle of saving enough for a deposit might feel like a daunting or at times near-impossible task, but there are a number of options out there, including government schemes and family support mortgages, to help put first-time buyers on the right track.”

General election 2019: Housing should be top ‘priority’

Boris Johnson’s call for a snap general election on December 12 to try to settle the issue of Brexit took very few people by surprise. But many buy-to-let landlords and letting agents will be hoping that the poll will prove positive for the private rented sector, as it presents the main political parties with an opportunity to address voters’ concerns about housing, and not just focus on attempts to exit the EU.

Research shows that many landlords have been affected by the introduction of tougher tax treatments and tighter bank lending criteria, with many buy-to-let landlords actively selling and reducing their property holdings as a consequence.

The latest study by the Residential Landlords Association (RLA) shows that there has been a further increase in the number of landlords exiting the buy-to-let market in recent months, at a time when demand for private rented property is increasing.

According to the research, over the next 12 months 31% of landlords plan to sell at least one property with just 13% saying they plan to buy at least one.

A shortage of private rented housing together with strong demand from tenants has led to rising rents across most parts of Great Britain, and this is something that politicians must address.

Some parties will propose rent controls, but there is plenty of evidence to show that this could risk hurting tenants as well as landlords by further damping investment in the PRS and in some cases pushing up rents.

With successive governments failing to build enough housing – particularly social housing – the UK is in the grip of a worsening crisis, with homelessness on the rise.

So ahead of the general election, all political parties must make housing a primary political issue and set out clear strategies on how they would tackle the shortage of residential properties across the UK, including in the PRS.

Nick Leeming, chairman at Jackson-Stops, said: “All markets abhor uncertainty and the housing market is no exception. The priority now must be for politicians to provide reassurance by forming a Government, once elected, as quickly as possible.

“Regardless of how the government is formed, it is clear that each of the main political parties’ manifestos need to have housing as a priority and so a clear strategy must be put in place.”

Rogue landlord ordered to pay almost £3,000 for unlicensed HMO

A buy-to-let landlord in Worcester has been ordered to pay almost £3,000 for operating an unlicensed House of Multiple Occupation (HMO) on Canterbury Road, WR5.

Worcester Magistrates Court heard that Mohammed Rafiq operated a premises illegally, leaving the council with little option but to take legal action against the landlord.

Rafiq was charged with three offences for breaches of the management of HMO regulations, including failing to supply firefighting equipment and having insufficient fire alarms, failing to install emergency lighting and the failure to display his name, address and contact details at the house.

Cllr James Stanley, chair of Worcester City Council’s communities committee, commented: “The majority of landlords in Worcester abide by the law but as this case demonstrates, the City Council won’t hesitate to act in cases where landlords exploit tenants, provide dangerous or substandard accommodation or flout their legal obligations,” said.

“I would urge any Worcester residents who are facing difficulties with their tenancy or have concerns about an HMO to contact the City Council’s housing team for advice and support.”

Property expert urges BTL landlords to ride out recession

With Britain edging closer to its first recession since the financial crisis, a leading property auctioneer is urging property investors, including buy-to-let landlords, to hold their nerve against the spectre of an economic downturn.

The country’s dominant service sector, which accounts for about 80% of the economy, unexpectedly plunged into contraction last month, in a sign of the increasing stress facing the economy as Brexit looms.

According to IHS Markit and the Chartered Institute of Procurement and Supply (Cips), activity in the sector fell as companies reported a fall in sales, job losses, cancelled and postponed projects and weak investment levels.

There has been a recent rise in properties going into receivership, banks unwilling to lend for construction projects and a decline in tenants looking to rent business or residential properties, according to Mark Bailey, managing director of Landwood Group, who says that a rise in auction sales is also evident, largely down to an increase in repossessions.

He said: “Worryingly, at Landwood we are also receiving more instructions over the past few months than we have done for a year or more – instructions for properties that have sadly gone into receivership.

“It is harder for property owners to let business space and for domestic landlords to find tenants  – there’s no doubt that a squeeze is on.

“With each failed building project, banks become more nervous to lend, builders stop building… and we fall headlong into a dreaded recession. Once we do, it’s anyone’s guess how deep it is or how long it lasts.

“The blame for all of this cannot be put at the door of Brexit… well, not entirely. There is no arguing with the fact that this is a period of change – domestically and globally. People err to the negative whenever there is change on the horizon – until events transpire and the scales balance out. The big issue is uncertainty and property is key to all of this. Uncertainty causes negativity, while a solid market has the opposite effect.”

So, if the pointers are all correct and a recession is upon us, what is the advice?

“Sit tight,” said Bailey. “Whether you are a commercial property owner or a domestic landlord, try your best to ride it out, perhaps for six months, before making any business decisions. Look at your borrowings and don’t over-stretch yourself at this time.

“There are always people who benefit from downturns in the market and they tend to be cash buyers. So if you have cash to invest long-term, a ripe time to buy may be about to begin.

“For the rest of us, it’s time to batten down the hatches and ride out the storm – see you on the other side.”

Property expert urges BTL landlords to ride out recession

With Britain edging closer to its first recession since the financial crisis, a leading property auctioneer is urging property investors, including buy-to-let landlords, to hold their nerve against the spectre of an economic downturn.

The country’s dominant service sector, which accounts for about 80% of the economy, unexpectedly plunged into contraction last month, in a sign of the increasing stress facing the economy as Brexit looms.

According to IHS Markit and the Chartered Institute of Procurement and Supply (Cips), activity in the sector fell as companies reported a fall in sales, job losses, cancelled and postponed projects and weak investment levels.

There has been a recent rise in properties going into receivership, banks unwilling to lend for construction projects and a decline in tenants looking to rent business or residential properties, according to Mark Bailey, managing director of Landwood Group, who says that a rise in auction sales is also evident, largely down to an increase in repossessions.

He said: “Worryingly, at Landwood we are also receiving more instructions over the past few months than we have done for a year or more – instructions for properties that have sadly gone into receivership.

“It is harder for property owners to let business space and for domestic landlords to find tenants  – there’s no doubt that a squeeze is on.

“With each failed building project, banks become more nervous to lend, builders stop building… and we fall headlong into a dreaded recession. Once we do, it’s anyone’s guess how deep it is or how long it lasts.

“The blame for all of this cannot be put at the door of Brexit… well, not entirely. There is no arguing with the fact that this is a period of change – domestically and globally. People err to the negative whenever there is change on the horizon – until events transpire and the scales balance out. The big issue is uncertainty and property is key to all of this. Uncertainty causes negativity, while a solid market has the opposite effect.”

So, if the pointers are all correct and a recession is upon us, what is the advice?

“Sit tight,” said Bailey. “Whether you are a commercial property owner or a domestic landlord, try your best to ride it out, perhaps for six months, before making any business decisions. Look at your borrowings and don’t over-stretch yourself at this time.

“There are always people who benefit from downturns in the market and they tend to be cash buyers. So if you have cash to invest long-term, a ripe time to buy may be about to begin.

“For the rest of us, it’s time to batten down the hatches and ride out the storm – see you on the other side.”

UK rental market looks more attractive for BTL landlords as rents rise further

Rents in the UK’s private rented sector continued to increase in September, the latest figures show. The data from HomeLet reveals that the average rent in the UK hit £697 per calendar month (pcm), up 2.2% on the same period last year.

When London is excluded, the average rent in the UK is now £797pcm, up 2.2% on last year. Average rents in London are now £1,694pcm, up by 3.3% on last year

All 12 of the regions monitored by HomeLet showed an increase in rental values between September 2018 and August 2019.  Five of the regions monitored by HomeLet showed an annual increase of over 3%, the North West, the East Midlands, the South West, Greater London and the North East

The region with the largest year-on-year increase was the North West, showing a 4.4% increase year-on-year.

HMO landlord hit with £40k fine

City of Lincoln Council has taken action against a House in Multiple Occupation (HMO) landlord in Lincoln for failing to comply with a number of safety breaches under the Housing Act 2004.

Julie Churchill who was responsible for an unlicensed HMO at 135 Monks Road, LN2, has been fined £40,000 for letting out a dangerous HMO that was also unlicensed.

Lincoln Magistrates Court heard that the property had no fire doors to the bedrooms, ground floor lounge or kitchen, no working fire alarms on the ground floor, while one of the three bedrooms had a door with a large gap to the top which would allow smoke to escape in the event of a fire. In addition, all the bedroom doors could be locked by a padlock which if in use, would not allow for a swift escape in the event of a fire.

It also transpired that the stairs were painted gloss black and had no slip resistance, while the kitchen did not have adequate facilities for occupants.  The court was also told that the seven unrelated immigrants occupying the property were unaware of their rights.

They had no tenancy agreement, rent book or rent receipt during their tenancy. Cllr Donald Nannestad, portfolio holder for Quality Housing at City of Lincoln Council, commented: “We’re extremely pleased to bring another case to justice as part of our ongoing battle to crack down on rogue landlords in Lincoln.

“This property was dangerous and as a council, we will not allow landlords to ignore their legal responsibilities, even if they refuse to engage with us. “We have a statutory duty to ensure HMO properties are compliant with standards, and this is with good reason.

“Most landlords have proactively applied for HMO licences or responded to reminders when the regulations changed in October last year, so it’s not fair to those who comply with the law and pay their licence fees.

“A big thank you to the council’s private housing and legal teams for bringing this case to justice.

“We want to ensure Lincoln is a safe place for everyone to call home.”

Northampton NN2 Postcode Profile

The Norhtampton NN2 postcode has seen quite a few changes over the last year or two. Firstly there was the closing of the Park Campus, which was home to the University of Northampton for the last few decades, when it moved to the new Waterside Campus, off the Bedford road.

The closure of this Campus, not only had a major impact on the area around Boughton Green Road, which was struggling to cope with the thousands of students all converging on the overstretched arterial road at the same time, but there has also been a major demographic change, which has not necessarily impacted property in a bad way, but it has changed demand for property.

As the university of Northampton grew in recent years, so did demand for accommodation for the students, who’s numbers had reached in excess of 10,000 by the time Park Campus closed, thanks to the University’s rising position in ranking over the last few years.

Since Park Campus moved to the Waterside Campus, which is just south east of the town centre, demand for student accommodation in the NN2 area has fallen. This may have initially had some impact on HMO property, but most of that has levelled out now and most of these properties have been re-entering the market as self contained units of family homes. On a positive note, the streets around the area have become noticeably calmer, as the sound of escited of students on their evening’s out is now a distant memory to local residents.

Over the last 12 months, there have been 464 sales with values rising a marginal 0.13% which has held up well against the price drops we have seen in other places.

The large scale building off the Welford road, just before the Bramptons, (NN6 Postcode) will also have a large impact on the Kingsthorpe area, as there are plans for the construction of a large number of properties, including the infrastructure to sustain them, but only time will tell how that will impact demand and subsequently prices.

Property View Virtual Reality Tours

Property View is a new venture bringing fascinating technology to the property world. Whether you are selling, developing, renting or building this technology can help with various processes which normally take time and resources to complete. They can scan, and download virtually any space and have it viewable and shareable within 48 hrs.

They create a link to the virtual reality tour so you can share it  worldwide instantly. Totally interactive and immersive content that can act as a virtual open house 24/7, allowing prospective buyers to view and explore any given property from their smartphone/ipad/ tablet or PC.   Get in touch for more exciting features

 

Image

 

Image

 

Image

 

PROPERTYVIEWVRLTD COMPANY NUMBER 12001777
kettering

07379540022

HOURS

Monday – Friday: 9am – 5pm

Saturday – Sunday: Closed

propertyviewvrltd.com

Stamp duty could be lowered by Chancellor

A London estate agency says one of its buyers wants to delay completion until November 1 “just in case stamp duty is changed in October”. Aylesford International director Brendan Roberts says one of his firm’s buyers made the request following speculation that stamp duty could be lowered by Chancellor Sajid Javid.

“Anyone looking to sell is unlikely to conclude a sale much before late October even if they found a buyer early September, so agreeing a delayed completion to allow for any changes in SDLT shouldn’t create too much inconvenience and with buyers thin on the ground it is useful to be flexible and adapt to help buyers commit” explains Roberts.

The move follows widespread speculation by government ministers that stamp duty will be reformed – but without saying when or how. Other agents report alternative tactics pursued by purchasers keen to avoid paying more SDLT than they need – but these raise questions over whether conveyancers would help.

“We have had a pronounced increase in enquiries from clients seeking to utilise the existing ‘mixed use’ stamp duty concession. This concession is still not well understood but can yield dramatic savings on higher value properties” explains Gideon Sumption of Stacks Property Search.

“There is a huge and obvious incentive to look at mixed use property where the maximum rate of SDLT is five per cent. There is no current legal definition but such is the amount of money involved there will almost certainly be some case law soon” Sumption continues.

“The current understanding is that for mixed use SDLT to apply, the property needs to have a commercial element, namely enjoy commercial income from land or buildings that from part of the whole. This could be a self-contained annexe let on an assured shorthold tenancy, some pasture let to a farmer or some buildings let as workshops. What won’t qualify are extensive grounds used purely for the enjoyment of the house.”

Another Stacks agent, Bill Spreckley, says buyers are becoming “more and more aware “ not only about the mixed use option but also how so-called ‘multiple dwellings’ can attract lower SDLT.

“If you buy a property with ‘Multiple Dwellings’ – that is an annexe, cottage or flat – then there are discounts available. One takes the price of the whole property, divide it by the number of properties, work out the SDLT per property and then multiply that figure by the number of properties again” he says. He says a principal property sold with two cottages counting as ‘multiple dwellings’ – each sold at a notional £666,666 – would attract stamp duty of £69,999 but sold as one unit at £2m it would incur SDLT of £153,750.