Tag Archives: real estate
Most tenants in London never check their landlord’s credentials
The vast majority of people who rent a home in London don’t bother to check the landlord’s credentials leaving them open to dodgy landlords, new research suggests. Some 92% of London renters take what they can get and despite typically having to pay for the privilege of having a background check conducted on themselves, they don’t perform the same due diligence on their potential landlord. The study, by London removals firm Kiwi Movers, also found that highly competitive property marketing is cited as the number one reason for not doing checks on landlords and overall only 20% of UK renters do any sort of check on their landlord before agreeing a tenancy. Renters in Liverpool most likely to check out a landlord online before renting. . A third of the city’s residents say they’ve performed a background check on a landlord before agreeing to move into a property. Some 31.63% in Swansea would check the landlord, 26.83% in Southampton, 24.33% in Leicester, 24.07% in Glasgow, 23.37% in Sheffield, 23.3% in Brighton and Hove, 23% in Cardiff, 21.73% in Portsmouth and 21% in Birmingham. The research also found that women are more likely than men to background check a landlord at 24% compared to 15% of men and 44% of women would prefer to rent from another woman. Also one in five believe renting from an agency meant they didn’t need to worry about landlord credentials or history and but 53% of those that found negative information, in the form of a review, news article or details of legal issues, said it influenced their decision to rent from that person. Just 8% of London residents do any kind of background check on their landlord, 62% below the national average of 20%. London residents are also the least likely to act on information about a potential landlord, with fewer than half (44%) of them saying negative the information had influenced a housing decision. In other words, the need to secure a property was greater than their need to rent with confidence. One of those who prefer a woman landlord is PR manager Billie Gianfrancesco who has been renting in London since 2008 and is on her fifth rental property. ‘In my experience, female landlords tend to work more closely with property managers or put a system in place whereby tenants can resolve any issues quickly without needing to bother or chase them,’ she said. ‘I've found that male landlords prefer to try and resolve the issue themselves first. This often means repeat visits in person, which makes any tenant nervous, and a greater recurrence of botched DIY repairs. In one situation an upstairs bath was leaking, and our male landlord visited four times attempting to fix the issue himself. Because of this, the problem wasn't resolved for over a month. I faced a similar issue a couple of years later with a female landlord, she… Continue reading
Planning reform Bill welcomed by UK building industry
Planning in the UK is to be reformed with local communities getting more power and control to shape where new homes will be built under the new Neighbourhood Planning and Infrastructure Bill. Announced in the annual Queen’s speech, which sets out what will happen in Parliament, the Bill also includes measures to reform and speed up the planning process by minimising delays caused by pre-commencement planning conditions. It has been widely welcomed by the industry. The British Property Federation said that strengthening neighbourhood planning is likely to be extremely effective for ensuring that development is brought about in a way that is supported by local communities and meets their needs. ‘The planning system is often cited as one of the main barriers to development, and pre-commencement planning conditions are an extra burden placed on developers which ultimately slows down the whole process,’ said Melanie Leech, BPF chief executive. However she said that it will depend on the detail yet to come, particularly how it is going to be enforced and how already stretched local authorities will cope. ‘Conditions for development should be agreed as part of the pre-application process, and we would hope that the planning process is not made over-complicated to compensate,’ she added. The compulsory purchase order (CPO) process is set to become clearer, fairer and faster for all those involved and the Bill will see the establishment of and independent National Infrastructure Commission on a statutory basis. On a more controversial points it includes the privatisation of Land Registry. Some believe this will support the delivery of a modern, digitally based land registration service that will benefit the Land Registry’s customers, such as people buying or selling their home. The Government is still consulting on the privatisation of the Land Registry, but its inclusion in the Bill implies that it is going ahead. Leech pointed out that the privatisation of the Land Registry could hold important consequences for the commercial property industry, as security of title is critical to the real estate market. ‘It is hugely important that any changes to the way that the Land Registry is run do not affect this security so that investors can be confident that they own their assets and that if for whatever reason there has been an error in registering their title then they will receive adequate compensation,’ she said. However, the Conveyancing Association (CA), the leading trade body for the conveyancing industry, is against the privatisation. It believes the move would not be in the best interests of clients, the conveyancing profession or the Land Registry itself, based on a number of reasons including its experience of previous privatisations. The Government has argued that privatisation would maximise capital return while maintaining high levels of quality and service, and reducing the burden of control but the CA suggests that such ambitions would not require privatisation. Instead it argues for a potential increase in fees, plus a reversal of the recent halving of… Continue reading
Property sales up over 20% month on month due to property tax change
Property sales in Scotland increased by 21% month on month to record the strongest March for homes sales in eight years, the latest index figures show. The rise was partly due to buy to let landlords rushing to beat the extra 3% property tax imposed on additional homes at the beginning of April, according to the index report from Your Move. The data also shows that Midlothian recorded record high house prices and the fastest increase in sales, rising 48% in the first quarter of 2016 year on year while overall property values were up 0.8% month on month in March, the quickest rise since August 2015. However year on year property prices in Scotland are down 9.7% year on year, taking the average house price to £169,379. Christine Campbell, Your Move managing director in Scotland, pointed out that sales in Scotland were not as high as elsewhere in the UK where transactions soared by 60% month on month in March. She said that the more modest increase in Scotland may have been due to John Swinney announcing the property tax changes a month later than George Osborne, so many second home buyers may not have had time to plan their investments. But Scottish sales for the first quarter of this year are still well above the same period in 2015, up 18% year on year and Campbell explained that the construction of new homes in Midlothian has enabled the area to become the only place in Scotland where house prices stand at a record high in March. She also pointed out that while house price growth is down year on year, it’s important to remember that this was due to the huge spike in house prices back in March 2015, following a rush of sales brought forward to avoid the introduction of the LBTT. ‘But with buy to let landlords opting to buy flats and other more affordable properties, this hasn’t translated into too much price turbulence. House prices have generally risen by between 0.01 and 0.8% each month since July 2015, which suggests the current spurt is healthy and sustainable,’ said Campbell. She also pointed out that an uplift in million pound home sales has propelled East Renfrewshire up the rankings in March, with house prices in the area increasing faster than anywhere else in Scotland, up 8.1% month on month. These additional high end home sales mean the area now also has the highest average property value of any area at £257,529. Continue reading
