Tag Archives: house
British landlords urged to check tenancy deposits ahead of June deadline
Landlords in the UK have until later in June to comply with new legislation on tenancy deposits which clears up confusion created by a loophole in the law. Tenancy Deposit Protection schemes have been in place since 06 April 2007 but a court ruling said that any tenancy which began before that date but was renewed or became a statutory periodic after that date was deemed to be a new tenancy and therefore the deposit had to be re-protected. This created confusion as legally deposits that had been correctly protected suddenly became unlawful. This has now been addressed by the Deregulation Act 2015 which came into force in March requiring all landlords to comply by 23 June so that all tenancies are protected under one of the government authorised schemes. For deposits taken before the 06 April 2007 and where the tenancy became periodic prior to this date, landlords and agents aren’t required to protect the deposit however, they won’t be able to serve a section 21 notice to regain possession of the property unless the deposit is protected with a tenancy deposit scheme. The Association of Residential Agents (ARLA) is urging all landlords to check that they comply with the regulations before the deadline. If landlords fail to comply they could be liable for sanctions which include a potential claim by the tenant for compensation of up to three times the amount of the deposit paid and find themselves unable to bring a tenancy to an end through a Section 21 notice. The protection of tenant deposits is always a hot topic in the private rented market and something that often causes the greatest amount of disagreement between tenants and landlords. Following a number of high profile court cases where landlords have been challenged by tenants for up to three times the deposit amount and on the enforcement of notices to quit, there is now greater clarity on what landlords should and should not do. ‘The new Act provides clarity on the tenancy deposit protection regulations in practice, especially with regard to whether the pre 06 April 2007 deposits fall under the protection rules. The onus is on landlords to adhere to the new rules and ensure they’re compliant,’ said Fran Mulhall, regional operations manager at property rental specialists GFW Letting. ‘I think the deposit protection ruling from the Act can only be seen as a positive change, however I think there is a danger of detrimental effects that the Act might unintentionally encourage, relating specifically to the Section 21 notice to quit. The Deregulation Act has altered the rules regarding serving notice to quit, namely the timing in which the notice can be served and the period of notice required to be given to the tenant,’ Mulhall pointed out. ‘Landlords who had been served with a local authority improvement notice for failing to carry out repairs requested by the tenant within a timeframe could fall foul to the… Continue reading
Research reveals how properties near top schools and universities hold value
Properties in England and Wales located close to independent schools and university towns hold their value and are able to recover faster from a housing market downturn than average UK properties, new research shows. Overall average property prices of homes within a two mile radius of an independent school have outperformed the national average. House prices close to independent schools currently stand at 116% of their 2007 market peak, this compares to 98% for England and Wales as a whole. In 2014 the average property price stood at £173,500 while the average price paid for a property within a two mile radius of an independent school was £354,000, according to the study published by estate agents Hamptons International. The same pattern can be seen in the capital’s housing market. In London property prices are on average 30% higher than at the peak of the market in 2007 but for those homes close to an independent school they are 66% higher. Homes near to some of London’s best known schools have significantly outperformed the London average. Properties close to Westminster School are now 100% higher than the 2007 peak and at St Pauls School are 75% above peak levels. In the South East and South West of England average house prices have returned to 2007 levels, but for those homes close to independent schools values are on average 17% higher. The research also found that the South and South West of England attract the greatest number of overseas students. Two thirds of universities with more than 10% overseas students are located in the South and South West of the country. It pointed out that universities contribute to local economies and act as a support to house prices and rental growth. Furthermore universities often attract large scale employers, such as the science parks around Cambridge and Oxford, who in turn generate demand for housing. ‘The UK is recognised the world over for the quality of its education. For many overseas parents with children studying in the UK this is a catalyst to investing in property – be this a student flat or larger family home. The UK’s stable legal and political system, together with an economy that is growing some three faster than the Eurozone, makes the UK an attractive proposition to many overseas investors,’ said Fionnuala Earley, director of research at Hamptons International. ‘While house prices across England and Wales remain 10% below their pre-crisis peak, this figure masks significant regional variations. The average house price in London is now 30% above the 2007 market peak and other areas of the country are playing catch-up. Capital values in London may have softened recently but they are still 12% higher than this time last year. And as the recovery spreads, so the prospects for the rest of the country are looking good,’ she explained. ‘For overseas investors looking to buy in the UK our research shows that average property prices within a two… Continue reading
