Tag Archives: countries
UK govt launches consultation on Bank of England powers in the housing market
The UK government is inviting responses to a consultation on which powers the independent Bank of England should have over the country’s housing market. The Chancellor George Osborne has already announced that he was determined to work with the Bank to ensure that they had appropriate powers over the UK housing market to maintain its stability. Earlier this month, the Bank requested a range of powers including the ability to set a debt to income ratio for mortgages and control loan to value ratios. Currently, the Bank can only recommend that such a limit is put in place. The power to put in place these limits lies with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). So the government is launching a consultation today on whether the Financial Policy Committee (FPC) should have the power to directly control these limits for macro-prudential purposes. The consultation will run from 30 October to 28 November 2014 and the powers that the Bank is requesting are commonly held by its counterparts in other countries. For example, loan to value controls are used extensively in countries including Canada, New Zealand and Norway, while both the Hong Kong and South Korea have used debt to income ratios too, which has proved particularly successful. The consultation document states that the government is proposing that the Bank is granted powers of direction for loan to value limits and debt to income limits for owner-occupied mortgages. The government is particularly interested to hear what consumers and the industry feels is an appropriate definition of debt for these purposes. The government intends to consult separately in 2015 on the Bank’s recommendations for it to have new powers over the buy to let market, with a view to building an in-depth evidence base on how the operation of the UK buy to let housing market may carry risks to financial stability. ‘Ensuring the stability of the UK housing market is a crucial part of this government’s long term economic plan, and I have been clear that the independent Bank of England should have the tools it needs to do this,’ said Osborne. ‘That’s why the government is consulting on this issue, to ensure that we can bring forward appropriate legislation to give the Bank the powers it needs. The government already works closely with the Bank to ensure the ongoing stability of the UK housing market,’ he pointed out. He added that in June, the Bank issued a recommendation over mortgage lending limits, with new regulations introduced earlier this month capping the number of loans above 4.5 times income which banks can offer. Continue reading
NLA reminds UK landlords about upcoming immigration checks
The National Landlords Association is reminding UK landlords about the importance of conducting tenant checks shortly before new legislation will require them to check the immigration status of every new tenant. As of the 01 December 2014 landlords in the West Midlands where a pilot scheme is being introduced, will be responsible for carrying out ‘right to rent’ checks in order to identify if a potential tenant has the right to reside in the UK, before they grant a tenancy. If the checks are not carried out landlords could face a fine of up to £3,000. The new rules, set out in the Immigration Act, will be rolled out around the rest of the UK in 2015. The NLA recommends that landlords always check potential tenants thoroughly in order to reduce the risk of letting to unreliable tenants and minimise the risk of rent arrears. Services such as the NLA Tenant Check give landlords the ability to vet their tenants and be confident it has been done to a professional standard. ‘In some areas as early as this December, the Immigration Act will place a legal responsibility on landlords to help prevent illegal immigrants from accessing private rented accommodation,’ said NLA chairman Carolyn Uphill. ‘It has always been best practice to conduct a thorough check on prospective tenants, but if landlords don’t do their due diligence on tenants they could be in line for a hefty penalty,’ she explained. ‘The NLA exists to support all landlords to make a success of their lettings business and to ensure they comply with the law,’ she pointed out and added that to see how the NLA can help with this forthcoming requirement landlords can go online to the NLA Tenant Check website. Meanwhile, Harrison Murray Lettings (HM Lettings), the lettings arm of the Nottingham Building Society, said it aims to lead the way in ensuring all potential tenants are eligible to live in the UK. ‘We want to safeguard and support the rights of both landlord and tenant whilst ensuring we are operating in line with the latest legislation,’ said Group Lettings controller Paul Offley. The Home Office has not yet issued specific instructions but it is likely that British passport holders will only need to show their current passport and those without passports will have to produce alternative documents including birth or adoption certificate in combination with a National Insurance number, driving licence, naturalisation certificate or a right of abode certificate. Citizens of the 27 member countries of the European Union plus Iceland, Lichtenstein, Norway and Switzerland, are expected to show as evidence a passport and national identity card or evidence of receipt of UK benefits. People from other countries should have a Biometric Residence Permit which clearly states the time limit on their stay but foreign visitors staying for less than six months cannot obtain a Biometric Residence Permit and would need to show a passport containing a UK immigration stamp with a time limit that is still valid. Continue reading
UAE, US discuss regional issues and bilateral relation
UAE, US discuss regional issues and bilateral relation (Wam) / 18 February 2014 General Shaikh Mohammed bin Zayed receives US Secretary of State in Abu Dhabi. General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, received US Secretary of State John Kerry and his accompanying delegation at Al Mina Palace on Monday. General Shaikh Mohammed and Kerry discussed bilateral relations and cooperation between the countries as well as an array of issues of mutual concern. During the meeting, which was attended by Shaikh Abdullah bin Zayed Al Nahyan, Foreign Minister, the two sides reviewed appropriate means of strengthening the existing avenues of joint cooperation for serving strategic interests of the two friendly countries and their people. Discussions also tackled latest regional and international developments where the two sides reviewed ongoing efforts to achieve peace and security in the region and recognised the need for continuous consultations and coordination in this regard. The UAE and the US also underscored that serious dialogue and constructive understanding are the adequate mechanisms to address and resolve all crises and issues in the region. Looking at regional concerns and developments, the two sides discussed the humanitarian crisis in Syria and results of the recently concluded Geneva II Conference. Situation in Egypt was also figured high during the talks, where they stressed the importance of realising political and economic stability there. The two sides also discussed the talks between Iran and the Group 5+1 in Vienna next week, which seeks to reach an inclusive agreement on Iran’s nuclear programme. Current efforts to revive Middle East peace talks were also touched. Yousef Al Otaiba, the UAE Ambassador to the US, and Mohammed Mubarak Al Mazrouie, Undersecretary of the Abu Dhabi Crown Prince’s Court, attended the talks from the UAE side. Present from the US side were Michael H. Corbin, US Ambassador to the UAE, Philip Gordon, White House Coordinator for the Middle East, North Africa and the Gulf; Thomas Shannon, Counselor of US Department of State, and a number of US officials. For more news from Khaleej Times, follow us on Facebook at facebook.com/khaleejtimes , and on Twitter at @khaleejtimes Continue reading
