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Research reveals lack of formal tenancy agreements in UK for residential property
One in 10 private landlords in the UK has no formal tenancy agreement in place with their tenants, new research has found. And where contracts are in place, landlords may unwittingly be asking tenants to sign documents that are not legally compliant, according to the survey by landlord insurance provider Direct Line for Business. Of the landlords who don’t use a letting agent some 58% used adapted tenancy agreements from either old agent contracts or other landlords or an updated template they found online at 38% and 20% respectively. It appears landlords employ letting agents when they first rent out the property, then use the old contract template when agreeing a direct rental with new tenants or upon renewal with their existing tenants. The study suggests that a lack of professionally reviewed tenancy agreements may explain why 13% of landlords have experienced disputes specifically arising from tenants’ rental contracts in the last two years. Also concerning, it says, is that 9% of landlords have not informed their tenants that their deposit is held in a government backed tenancy deposit protection scheme (TDP). This is despite the fact it’s a legal requirement that landlords provide the name and contact details of the tenancy deposit protection scheme (TDP) and its dispute resolution service within 30 days of taking a deposit. The research also revealed that 4% of landlords have not taken any deposit from their tenants. ‘Tenants and landlords need a contract in place to protect both their interests. Contracts, deposits and deposit protection all help to make clear what is expected from each party when renting a property, and which can help minimise disputes where possible,’ said Nick Breton, head of Direct Line for Business. ‘If an old contract is adapted it may not comply with new legislation or be relevant for the current market. Given the volume of disputes arising from tenancy agreements it’s important to get the contract seen by a legal professional before it’s signed,’ he explained. ‘We understand that getting legal documents in place can be complicated which is why we’ve launched our new Legal Documents Service for landlords. Not only can this save landlords time and money, but creating the documents is both quick and easy, and most importantly, they can be reviewed by a Solicitors Regulation Authority (SRA) regulated law firm to ensure they are legally compliant. Based on our research of solicitor prices, it is estimated each landlord using the service would save over £250,’ he added. When it comes to rights and protection, 38% of landlords in England have never heard of the government’s How to rent: the checklist for renting in England, which explains the rights and responsibilities of landlords and tenants while less than a third of landlords have supplied or directed tenants to this guide. Direct Line for Business has launched a… Continue reading
Sales of property in prime central London record first rise of 2016
Transaction volumes in central London’s prime property market rose in March compared to last year, the first increase in 2016, new data shows. Sales were driven by buyers trying to beat the 3% stamp duty surcharge but year on year growth slowed to 0.8%, the lowest figure for more than six years, according to the latest report from real estate firm Knight Frank. The incentive to act before the April introduction of the new stamp duty rate on additional homes was one of the reasons Knight Frank sales volumes in March exceeded last year’s figure. This bucked the trend of the first quarter of 2016, where volumes were flat in January and marginally down in February. However, the other factor at play is a marked slowdown in the rate of annual growth over the last 18 months. ‘It is the result of a series of tax changes and a preceding period of exceptional growth, which is also a topic that is increasingly covered by the media. As a result, there is a growing recognition on the part of vendors that the prime central London property market is no longer on the upwards trajectory it was in the years following the financial crisis,’ said Tom Bill, head of London residential research. ‘As vendors become more attuned to current market conditions and adjust asking prices, the effect is to drive demand. Asking prices are typically declining by in excess of 10% to attract price sensitive buyers,’ he explained. Despite the bounce back Knight Frank forecasts a 2% decline in western markets but it predicts a 5% growth in markets east of Mayfair and south of the River Thames in 2016. But growth is increasingly polarised. In higher value western areas around Hyde Park, recent tax changes have had more of a dampening impact. Meanwhile, the opposite is true in traditionally lower value markets including Islington and the City and Fringe. A breakdown of the figures show that prices increased by 8.2% in Islington and by 8.1% in City and Fringe. Price also increased by 3% in Southbank, by 2.9% in Riverside, by 2.6% in Mayfair, by 1.8% in Kensington and by 1.2% in Marylebone. Prices were unchanged in St Johns Wood but fell by 6.8% in Knightsbridge, by 4.9% in South Kensington, by 3.5% in Hyde Park, by 2.5% in Chelsea, by 0.8% in Notting Hill and by 0.2% in Belgravia. Continue reading
Heating and double glazing top list of UK home buyers must haves
Central heating and double glazing top UK homebuyers’ list of must have property features followed by a garden and secure doors and windows, according to new research. House hunters opt for a good, reliable broadband signal over highly rated schools, off road parking over a garage and a living room big enough for a large flat screen telly over period features. Indeed, the research from comparison website Gocompare, found that only 15% rated access to good local schools an essential factor in buying a new home and buyers are looking for homes with a bath, separate shower, multiple toilets and en-suite bathrooms. However, it is warmth and energy efficiency that are key priorities for house hunters. Some 79% said that central heating is their top must have feature and 74% said it was double glazing. A good energy efficiency rating and cavity wall insulation are also highly rated features, mentioned by 53%. Some 71% said a garden, 70% secure windows and doors, 58% off road parking and 57% a bath. Local shops and amenities were important to 55% and 54% said friendly neighbours was their top priority. A good reliable broadband connection was mentioned by 53%, while 50% said a landline telephone and 49% a good TV connection while 47% want a second shower and 45% at least two toilets. However, only 16% thought an open fireplace or wood burner were a home essential and just 7% favoured period features. Only 15% of those surveyed said access to good local schools was an essential factor in buying a new home. ‘From our research it’s clear that today’s potential homebuyers are putting practical concerns ahead of aesthetics. They are looking for warm, cosy properties, which are energy efficient and well connected to modern amenities rather than ones that are full of character,’ said Gocompare’s mortgages spokesperson Matt Sanders. He pointed out that as the on-going costs of running a home including paying the mortgage, utility bills and council tax are a real concern, it is perhaps unsurprising then well insulated homes and efficient central heating systems are key priorities. ‘The survey also highlights the important role technology and in-home entertainment plays in our day to day lives, from streaming live TV and films to our reliance on mobile phones. For many people, access to both a strong internet connection and a reliable mobile phone service have become modern home essentials,’ he added. Continue reading
