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Cleaning is top issue for UK landlords and letting agents
Dirty properties are a growing problem for letting agents and landlords in the UK with cleaning becoming the top cause of disputes and it is getting worse, new research suggests. The latest data from the Tenant Deposit Scheme shows that cleaning continues to take the lion’s share of deposit disputes, up almost 50% over the last five years. Indeed, cleaning has consistently been the most common dispute in cases brought to the TDS and arises in 58% of the cases they deal with. According to Imfuna, agents and landlords are increasingly facing filthy properties at the end of tenancies. Many tenants claim their landlord or agent failed to make it clear that the property should be left clean at check-out,’ said Jax Kneppers, the firm’s chief executive officer. She pointed out that it is essential that landlords and agents conduct a thorough inventory, with photography and detailed descriptions on the condition of the property at the start of the tenancy. This ‘proof of condition’ should be shared with the tenant when they are issued with the tenancy agreement. The biggest problems that agents and landlords face are dirty ovens and fridges, stains and marks on carpeting and flooring, bathrooms which have not been cleaned for months and pet hair and excrement on floors, furniture and soft furnishings. ‘At the check-out stage, the tenant should be made aware of the areas requiring cleaning and the potential cost involved. It is important to remember that the tenant is only obliged to return the property in the same state of cleanliness as at the start of the tenancy, after allowing for fair wear and tear,’ added Kneppers. Howard Lester, director of Balgores Property Group, said he has seen a sharp rise in the number of properties that require professional cleaning services at check-out over the last 12 months. ‘There is a definitely a lack of respect for property amongst tenants and it appears that they are happy to live in dirty accommodation. Many tenants fail to leave their property in the same condition when they leave a property and we have seen many properties in a filthy state at the end of the tenancy,’ he explained. He pointed out a recent case where the property was left in a disgusting state. The tenants had not cleaned the oven for months and it was caked with grease and spills on the hob and on the inside. Bags of rubbish were left in the kitchen and the worktops were filthy with grime. The carpets were heavily marked with pet excrement and numerous spills. The garden was left with an old washing machine, rusty bikes and worn out tyres. It cost the landlord several hundred pounds to have the property professionally cleaned. ‘Tenants are often shocked to realise that professional cleaning can be costly, depending on the area and type of work required. Some tenants think cleaning issues… Continue reading
Finance access and VAT are key barriers to housing supply in Ireland
Access to finance and input costs such as VAT are the key barriers to increasing the housing supply in Ireland, according to new research from chartered surveyors. In particular they say that the introduction of rent certainty measures have forced private landlords out of rental sector and that treating residential investors on par with commercial property investors is needed. The Society of Chartered Surveyors Ireland (SCSI) is calling for a reduction of VAT to 9% for houses under €300,000 and the establishment of a finance agency to support house building. Over half of the 300 chartered surveyors who took part in the survey said the introduction of rent certainty measures by the government was one of the main reasons private landlords are exiting the sector. The other reasons cited were the indebtedness of private landlords and tax restrictions. SCSI president Claire Solon said that reducing VAT on affordable housing and establishing a Development Finance Agency with expertise in construction lending were measures the government should introduce in the upcoming Budget. She pointed out that the ESRI has estimated that Ireland needs to build 25,000 residential units per annum, with the bulk of them being required in the capital. However in the second quarter of 2016 planning was only granted for 2,590 units in Dublin, of which only 620 have commenced construction. ‘The VAT reduction for the hospitality sector has worked extremely well. We would like to see a similar reduction to 9% for a defined period focusing on houses under €300,000. We feel such a move, access to finance for builders and a Capital Gains Tax ‘holiday’ for a set period to free up development land, are three measures which would provide a much needed kick start to house building,’ she said. She explained that the return of boom era rents caused by the shortage of housing supply together with the slow gearing up of the construction sector meant Ireland might not be in a position to avail of any opportunities created by Brexit unless swift action was taken. ‘It is crucial for the Government to address the depletion in investor activity in the overall residential market. One solution would be to apply the principles of commercial property investment to residential development and investment. Specific measures which would help level the playing field would be to reinstate full mortgage interest relief and to remove USC and PRSI on rental income,’ she pointed out. The survey found that the most significant challenge facing provincial towns and villages in Ireland was the inadequate provision of broadband services. In its submission the SCSI calls on the Government to provide additional funding for the roll out of reliable, high speed broadband services in all rural and provincial areas, a doubling of the Town and Village Renewal Scheme Grant Scheme to €20 million and an overhaul of the regulations of the… Continue reading
UK property prices up in August despite Brexit worries
House prices in the UK increased by 0.6% in August and are now 5.6% above a year ago, according to the latest index figures to be published. This continued growth takes the average price of a home to £206,145, the data from the Nationwide shows, indicating that an expected fall due to Brexit has not yet materialised. The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months, according to Robert Gardner, Nationwide's chief economist, saying that this includes a softening of new buyer enquiries to the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. Meanwhile, the number of mortgages approved for house purchase fell to an 18 month low in July. ‘However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to 30 year lows,’ Gardner explained. ‘This helps to explain why the pace of house price growth has remained broadly stable. What happens next on the demand side will be determined, to a large extent, by the outlook for the labour market and confidence amongst prospective buyers,’ he pointed out. He believes that it is encouraging that the unemployment rate remained at a 10 year low in the three months to June, though labour market trends tend to lag developments in the wider economy and it is also positive that retail sales increased at a healthy rate in July, up almost 6% compared to the previous year, even though consumer confidence fell sharply during the month. ‘However, business surveys suggest that the manufacturing, services and construction sectors all slowed sharply in July, and, if sustained, this is likely to have a negative impact on the labour market and household confidence,’ he said. ‘Most forecasters, including the Bank of England, expect the economy to show little growth over the remainder of the year. Indeed, these concerns prompted the Bank’s Monetary Policy Committee (MPC) to implement a range of stimulus measures at the start of August, which will provide support to economic activity and the housing market. Monetary policy measures will provide some support for households and the housing market,’ Gardner commented. ‘The MPC’s decision to lower UK interest rates from 0.5% to a new low of 0.25% will provide an immediate benefit to many mortgage borrowers, though for most the boost will be fairly modest. The MPC’s stimulus measures will also provide indirect support to the housing market, and not just by boosting wider economic activity,’ he added. According to Nicholas Finn, executive director of Garrington Property Finders, the data reveals a property market that is still unsettled rather than upbeat. ‘On the front line we’re seeing some strong intent but a lack of clarity among buyers. The cut in interest rates and resilient… Continue reading