Tag Archives: real estate
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
New home building set for record year but will decline in next couple of years
This year looks like being a record for new home building in Australia but the outlook for 2017 is not buoyant with predictions that it could be very different as new homes sales are falling. The monthly survey of Australia’s largest volume builders by the Housing Industry Association (HIA) reveals that total seasonally adjusted new home sales fell by 9.7% in July 2016 following an increase of 8.2% the previous month. HIA chief economist Harley Dale said that the overall trend decline in new home sales is accelerating, signalling a relatively sharp drop from a record high in new dwelling commencements from 2017. ‘New home construction has been the kingmaker of the Australia economy, but the cycle has peaked. In all likelihood we will experience sharper falls in new home construction in both 2017 and 2018,’ he explained. ‘The magnitude of decline in new home construction in coming years will of course be exaggerated by where we are coming from and that is record levels of medium/high density construction and historically healthy levels of detached/semi-detached dwelling construction,’ he pointed out. ‘There will no doubt be a tendency to sensationalise any negative results for new housing as the trajectory of the down cycle unfolds. We would do well to remember that this down cycle is following a record high that is some 24% higher than the previous peak in 1994 and that there is an unprecedented degree of uncertainty this time around as to how the next few years of new home building unfold,’ he added. A breakdown of the figures shows that detached house sales fell in all five mainland states in July after rising everywhere in June. Sales dropped by 12.6% in South Australia and were down by 8.7% in Queensland, by 8.2% in Western Australia, by 6.2% in New South Wales, and by 6% in Victoria. Dale also explained that the current new home building boom is unlike any other that has come before it. It is the longest and largest in Australia’s history but he added that it is marked by substantial regional divergences in the levels of activity in various markets around the country and the mix of dwelling types being built has changed dramatically. ‘As the down cycle in new home building unfolds, the record pipeline of medium/high density dwellings in particular creates considerable uncertainty as to the timing and magnitude of the decline in construction,’ he concluded. HIA’s forecasts are for a peak of over 232,500 new dwelling commencements to have been reached in 2015/2016, which will be followed by three consecutive years of decline. New dwelling commencements are forecast to bottom out at a level of around 166,500 in 2018/2019. Continue reading
