Tag Archives: legal
UK govt announces new deals for private rented sector
Tenants renting privately in the UK will get a better, fairer deal under measures announced by Housing Minister Brandon Lewis. He said that people looking to rent a home will be better informed, have greater choice and more confidence they will be treated fairly thanks to a range of ambitious initiatives. But Lewis said this will not strangle the industry in red tape and regulation, which would destroy investment in new housing, push up prices, and make it far harder for people to find a flat or house to rent. Instead, the new measures will both provide the help tenants need, without jeopardising the millions of pounds in investment already lined up to build new homes specifically for private rent. ‘The private rented sector plays a vital role in our housing market, providing a flexible option for millions of people across the country. The last thing we want to do is strangle it in red tape but tenants and landlords should have confidence that they will be treated fairly,’ said Lewis. ‘This package of measures is designed to do just that, putting power in the hands of people to get the deal they serve, without punishing the vast majority of good landlords while still encouraging more investment in the sector,’ he explained. ‘I would urge all landlords to take account of the new code of practice and look to offer our model tenancy agreement while the Build to Rent deals demonstrate how committed we are to getting homes built specifically for this market,’ he added. In the package is a new model tenancy agreement which Lewis said will empower tenants to agree longer deals with their landlord and has the added benefit of avoiding the need for landlords to leave properties empty and pay fees to letting agents for finding new tenants. The new code of practice, produced by the Royal Institution of Chartered Surveyors, makes clear the legal requirements of landlords and letting agents alike, leaving both in no doubt about their responsibilities to their tenants. This is on top of a new requirement for letting agents to belong to one of three approved redress schemes, to ensure that any landlord or tenant who gets a raw deal has somewhere to go with their complaint and could even claim compensation. The minister also argued that the key to creating a bigger, better private rented sector is to secure more investment and encourage more professional landlords to enter the market and offer their homes to tenants. He announced three new deals to deliver homes specifically for private rent under the government’s Build to Rent scheme. He announced £17.7 million to Notting Hill Housing Trust to build 181 homes in Newham and Southwark, £4.8 million to Carpenter Investments to build 101 homes in Liverpool and £4.8 million to Derwentside Homes to build 114 homes for private rent in Durham. In total the Build to Rent scheme is well on track to deliver up to 10,000 new homes for private rent by 2015. The new… Continue reading
UK Property Market Fragmentation Creates Room For Nimbler Investors
http://www.ft.com/cms/s/0/bf00a9dc-2ab4-11e3-8fb8-00144feab7de.html#ixzz2iRwPOhUv October 16, 2013 UK property market fragmentation creates room for nimbler investors By Ed Hammond The war of words being played out by politicians and economists over the UK housing market offers a concise explanation of the biggest issue facing the country’s commercial property market. For those looking at London, the country is in an unsustainable housing bubble, fuelled by the deep cash reserves of overseas investors. For everyone else, the market is as placid as it has been for the past five years. In the office, industrial and retail property markets, which form the backbone of many institutional investment funds, the trend is identical. London has pulled away from the rest of the country in terms of value and rental demand. So much so, that trying to analyse the national market with London at its head increasingly obscures, more than clarifies, the reality. Statistics do not always provide a clear indication of fact. Yet there is one fact that highlights the predominance of London’s property market: last year foreign investors spent more money on the city’s real estate than they did in any other European country – and more than three times the amount invested in the UK excluding London. But just as the economic slowdown caused by the financial crisis created a stark divide between London and the rest of the country, so the story of the rebound is one of increasing fragmentation. “The game has changed – the success now is coming from choosing the right [properties] in the right places, rather than taking some sort of broad investment philosophy and trying to deploy a large amount of capital,” says a principal at a leading private equity fund. The argument has been underscored by the recovery of certain sectors, such as warehouse property, which have been coveted by investors for the prospect of high rental yields. Similarly, demand has returned for out-of-town shopping centres, reflecting expectations that consumer trends will be geared more towards large malls and away from high streets. Overall, however, the picture is still bleak for most commercial property located outside London, the southeast of England and a few larger city centres. During the past 18 months, rental growth across the UK commercial property market has been flat, according to CBRE, the property consultancy. Meanwhile, capital values have declined moderately during the same period. Hans Vrensen, global head of research at DTZ, the property consultancy, says: “It is not any more a question of London and everywhere else: there are opportunities emerging in different parts of the UK, but it is very asset- and location-specific. Arguably the largest single structural change to the UK commercial property market during the past decade has been changes in the debt market “There are pockets of demand, especially from those investors for whom London has become too competitive, but they tend to be focused on single assets or small portfolio deals. A lot of parts of the country are still seeing very little interest in terms of new investment.” The fragmented market has presented opportunities to the more nimble investors, who can deploy small amounts of capital and take on more risk than the institutional investors, such as pension funds, which have traditionally dominated the property market. Private equity funds, in particular, have taken advantage of some of the opportunities outside London. For example, Blackstone of the US has been among the most active investors in the industrial sub-sector, creating a specialist logistics and warehouse property business. Arguably the largest single structural change to the UK commercial property market during the past decade has been changes in the debt market. Banks, traditionally the main sources of capital for the industry, have been pulling back their lending to property companies. The resulting gap has drawn in new debt providers, including some of Europe’s largest life assurers. The likes of Legal & General, Axa and Generali have all increased their lending to property business as a way of getting exposure to the asset class. Perhaps the worst affected area of the UK property market has been the high street. A string of high-profile retailer failures and continuing low levels of consumer confidence has wrought destruction on town centre shopping districts. One of the main issues facing the high street is that the properties tend to be owned by multiple landlords, impeding the route to a single solution. “Property owners range from major institutions, to private equity groups with multiple investors in their finite-life funds, to families, charities and private individuals,” says Stephen Barter, head of property at KPMG, the consultancy. “Each has a different ownership and investment rationale, different time horizons, different ways of making decisions, and different management behaviours.” Continue reading
The Dubai Dilemma
The Dubai Dilemma Marie Nammour (mary@khaleejtimes.com) / 8 October 2013 Dubai, a cosmopolitan city where people from around 180 to 200 different nationalities converge, reflects an interesting image of a modern city that lives up to the expectation of any western tourist. At the same time the country has succeeded in keeping its conservative and traditional beliefs very much alive and takes pride in them. However, in the past few years Dubai has been the scene of several criminal cases related to sex and alcohol abuse, involving European, American and other foreign expatriates who have found themselves caught in the web of legal trouble. This is mainly due to the lack of knowledge about the laws and the fine line between a luxurious lifestyle and the violation of laws due to abuse of personal liberties. And, these foreigners would most probably continue to face the same trouble unless certain misconceptions are corrected. Counsel Hani Hammouda believes the culture of every society takes decades and even centuries to become firmly rooted. It is like a huge tree that needs space of its own to grow and flourish so that it can provide a shadow that covers everyone who lives in it. For Hammouda, who works for Kefah Al Zaabi Firm for Advocacy and Legal Consultancy, the solution would start by distributing leaflets at airports and by airline companies to newcomers to Dubai, introducing them to the basic facts and principles about life and code of conduct in Dubai. That would help tourists and visitors seeking jobs keep out of legal trouble. “Embassies and consulates can play a key role in guiding their community here and foreigners could make use of the advisory information and abide by them fully realising that the laws could be different from their own country. For example, the use of drugs is strictly prohibited in the UAE while it could be allowed in some European countries. The installation of information boards in malls and public places could also prove beneficial. Holding seminars and lectures are also necessary to raise the foreigners’ awareness about the traditions and norms. “While it is said that ‘when in Rome do as the Romans do’, learning about the host country’s laws and rules upon arrival is a basic need as the ignorance about laws is no excuse to spare law violators the legal accountability,” Hammouda stressed. Misconceptions about cultures This intriguing mosaic of the 180 to 200 nationalities certainly needs a clear set of rules which should be made available to foreigners. The culture of any society takes hundreds of years to be rooted and instilled in generations. However, even if this culture as a whole cannot reach all outsiders, at least the basic minimum components of that culture should be respected, stressed Hammouda. “A simple example of this is that some European countries banned the veil and subjected every woman, who was spotted wearing a veil in public, to fines simply because it did not go well with the cultures of those countries. However, here we still see expats walking along the streets in shorts and in other outfits which could quite hurt the feelings of the conservative local Arab and Muslim families,” said Hammouda. Scantily dressed women and men are often seen walking in malls he said and wondered why every mall does not have information boards with the dress code placed at the entrance itself. “The mall’s owner must be strolling around very often so why doesn’t he pay attention to the excesses of taste and value? At the end of the day, a certain culture would shape up from this combination of cultures. How would we expect it to be? “There is no room here for a reverse thinking that the society here is open to all cultures and that it would be wrong to interfere in other’s liberties. Even in European and American states, one would be punished for an indecent and obscene public act.” According to Adel Awad Jr, a lawyer with over 18 years of experience in law and practising in New York, the image about Dubai abroad is deceiving. “The media projects Dubai as a modern city, which is a fact. But according to that image, there is an unlimited exercise of freedom with no restrictions. So to begin with, westerners head to Dubai with a different picture,” he pointed out. Referring to Dalelv’s case (Norwegian Marte Deborah Dalelv, who was accused of illicit consensual sex after reporting rape), Awad Jr. said: “It is her fault. Even in Europe, a woman should be careful not to stay in the same room with a stranger at night. The alcohol was also a circumstantial element. She lost her sobriety and will.” Proving that a woman was raped is complicated. “Injury marks resulting from struggle with the rapist should be there. If there are no such marks then she would be thought of as a consenting party. If it is proven that she was drunk at the incident time then she will be thought of as an unwilling party and that the sex was forced upon her.” Awad Jr suggested that an introductory code of conduct be enclosed to the employment contract when sent to an expatriate. That way, he (she) would be advised on what would await him in the country he would become a resident of. “Tourists could as well make use of the same information so it would be recommendable that airline and travel agencies enclose it to the travel package they offer to their customers. This code of conduct will give a list of the Dos and the Don’ts in the host country. This code of conduct will help reduce the crimes as it will clear everything out all along.” In July this year, Norwegian Marte Deborah Dalelv who was jailed for having illicit sex and giving false reports to the authorities about being raped, was granted pardon. The 42-year-old Dalelv, who works as an interior design executive, was at first sentenced by the Court of Misdemeanours to 16 months in jail, followed by deportation, for falsely reporting a rape, having sex-out-of-wedlock and consuming alcohol. She claimed to the police and prosecutors that her Sudanese boss raped her in his hotel room in Bur Dubai in March, taking advantage of the fact that she was under the influence of alcohol. The man was sentenced to 13 months in jail and deportation. She was on a business trip with him when the incident happened. Marte’s case created media frenzy in the west after she told her story to the press recounting her ordeal and shock over being held in custody for reporting a rape. She claimed that during the interrogation, she changed her testimony and falsely confessed she had consensual sex in a desperate bid to get a reduced sentence. In February, the Court of Appeals reduced the jail terms of an expatriate couple (an Irish man and a British woman, who had sex mary@khaleejtimes.com Continue reading
