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Research shows some UK tenants resort to paying for repairs
Some two thirds of tenants in the UK have had to dip into their own pockets to fund repairs because they could not wait for the landlord any longer, it is claimed. A new study shows that 55% of tenants spent up to £50 to sort out a repair and that half of tenants would like landlords to deal with repairs quicker. Two thirds of tenants say that it takes their landlord too long to respond to emails and calls about problems. The research from online agents Property Let By Us also reveals that just a third of tenants would rather deal with a landlord than a letting agent and one in six tenants have experienced bad landlords in the past. However, over 80% say their landlord is approachable and friendly and only 12% of tenants claim their landlord has made promises that he/she could not keep. The recent case of Edwards v Kumarasamy, highlights the legal responsibility that landlords have under the statutory requirements of Landlords Repairing Obligations, part of the Landlord & Tenant Act. Edwards was a tenant renting a flat from Kumarasamy. This case features his claim for compensation, when he tripped on an uneven paving slab on the outside path to the parking and communal bins area. A new Court of Appeal held that as the landlord had a right to use the path under his lease from the freeholder, he had a sufficient ‘estate or interest’ in the area to satisfy section 11 and so was liable for the repair. It means that landlords and agents doing inspections need to monitor the exterior areas of properties to ensure that they are safe and that any necessary repairs are done promptly. ‘There are many professional landlords in the buy to let market that are responsive to tenant communications about problems and issues. However, there are a few bad landlords that neglect their tenants and put lives at risk,’ said Jane Morris, managing director of Property Let By Us. ‘Every landlord has a duty of care and should respond to tenants emails and calls with 24 hours if possible. While it may not be possible to deal with repairs immediately, it is important that landlords maintain open communications with their tenants, so they can provide updates on timing etc. Communication is key and the landlord should keep the tenant informed of the action,’ she explained. The research shows that the most common cause of complaints are faulty boilers followed by leaking roofs, faulty showers, mould and condensation, leaking bathroom and window locks, broken windows, smoke alarms and pests and vermin. ‘Some of these can be very dangerous for the tenants, so it imperative that landlords carry out repairs to their properties within a reasonable time,’ added Morris. Property Let By Us has put together some guidelines on landlord response times for tenant complaints…. Continue reading
US and Chinese set to dominate London commercial property market in 2015
Chinese and US money is set to dominate London’s commercial property market in 2015 after Chinese investors accounted for more inward investment in 2014 than all European buyers collectively. Of the £21 billion spent in the London market, some £14.6 billion or 70% was attributed to foreign buyers. US investors spent £3.4 billion, Chinese £2.2 billion and Qatari investors £1.2 billion, according to a new analysis from international real estate advisor Savills. China Life was one of the biggest new entrants of the year with its deal at 10 Upper Bank Street. Chinese investors were the biggest buyer group from Asia, with developers such as Shanghai Greenland, Ping An Trust and China Overseas Land Investment purchasing properties. The Savills report also shows that these investors are not limited to single transactions, and anticipate more activity. US investors including Blackstone, Kennedy Wilson and Hines have secured some of the larger deals such as Alban Gate, 111 Buckingham Palace Road and 25 Cabot Square, with Northstar entering the UK for the first time purchasing a property in Woking before going on to purchase a 1.1 billion euro portfolio which included four assets in London. Other new entrants, who Savills is acting for, include parties from Taiwan, Turkey, Singapore, Israel and Yemen. ‘Debt is a significant factor in drawing in these international parties, falling swap rates and competition between lenders is making borrowing cheaper,’ said Rasheed Hassan, director of cross border investment at Savills. ‘Aside from that there is genuine confidence in the strength of the occupational market with rents steadily rising. These pull factors are further boosted by push factors such as the returns in the bond markets as compared to property and some economic instability across other geographies,’ he added. According to Eric Zhao, Savills Chinese Capital Markets Specialist, Chinese investors coming into the UK market are mainly developers and insurance companies. ‘The top Chinese developers are being driven by challenges in the domestic market and global branding needs,’ he said. ‘Insurance companies are beginning to diversify their huge capital outside of China after the restriction on overseas investment was lifted by the regulator. We have already seen the top Chinese firms make a statement in London and we are expecting more to follow,’ he added. The report reveals a rise in private investors entering the London markets and points out that appetite from these parties has not been restricted to smaller lot sizes, with the Savills sale of The Gherkin to the Safra family, as the most significant larger private investor transaction as well as others from China, Spain and Hong Kong. ‘Whilst further in-flight of capital will keep turnover levels high, very few of the international institutional type investors have demonstrated a willingness to go to the initial yield levels that have been seen on the UK prime assets,’ said Stephen Down, Savills head of Central London . ‘Whether they will go to these levels depends on further rental growth coming through… Continue reading
UK regional prime property markets outperform London
For the first time since the credit crunch, the UK’s prime regional property markets marginally outperformed London in 2014 with growth averaging 3.2%, according to the latest analysis. The new rates of stamp duty introduced by the Chancellor in his Autumn Statement in December 2014 brought mixed blessings for different parts of the market, the analysis report from real estate firm Savills shows. ‘For all buyers below £937,500, stamp duty rates have fallen and this is reflected in levels of annual price growth. Above this margin, the increased rates of stamp duty resulted in an adjustment in values at the top end of the market in the final quarter, most notably in the higher value extended commuter belt of London,’ said Lucian Cook, director residential research Savills. He also pointed out that given a strong performance earlier in the year, these commuter markets showed the highest level of annual growth. Prices rose by 4.6% in the London suburban markets such as Esher, Rickmansworth and Loughton and by 3.7% in the inner commuter zone in the likes of Sevenoaks, Guildford and Beaconsfield. While the markets within the commuter zone, up to an hour from London, are all now at or above their 2007 peak, the regions beyond these areas are some way below this level. Prices remain on average 10% below their 2007 peak across the remainder of the South of England and over 20% below across Scotland as an average. The markets of the Midlands and the North falls between the two with a decline of 14.8%. In the sub £1 million prime market that predominantly benefits from a cut in stamp duty, average prices rose by 4.6% in 2014, fuelled by particularly strong growth in the first six months of the year. ‘These lower value prime markets, particularly those well connected to London, are forecast to see the strongest growth over the next year and into the midterm,’ explained Cook. Higher value homes in the £2 million plus range recorded marginal 0.8% falls over 2014, but values fell by 3.1% in the last three months of the year. The report also says that the other overriding feature of the regional market remains the stronger performance of properties in urban locations. Annual growth in prime cities across the UK, such as Oxford, Cambridge, Bath, York, Chester and Edinburgh, averaged 5.8% price growth over 2014 compared to an average increase of 3.1% in their surrounding villages and 0.9% in rural locations. Meanwhile, prime London house prices rose by an average of 2.6% in 2014. However, 2014 was a year of two halves with prices rising by 4.9% in the first half and falling by a net figure of 2.2% in the second half. Savills said this was predominantly due to the stamp duty changes introduced in the Autumn Statement which particularly impacted the higher value markets. The strongest performers in 2014 were the markets up to £1 million and in the £1 million to £2 million… Continue reading
