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UK govt announces millions to tackle rogue landlords
Councils in the UK are to get a £5 million cash boost to tackle rogue landlords in their area, including raiding premises, it has been announced. Some 48 councils will share the funding so they can take on the irresponsible landlords that force tenants to live in squalid and dangerous properties, making their lives a misery. The cash will also allow councils to root out more ‘beds in sheds’. Since 2011 nearly 40,000 inspections have taken place in properties with over 3,000 landlords facing further enforcement action or prosecution. The funding will allow local authorities to carry out more raids, increase inspections of property, issue more statutory notices, survey more streets and to demolish sheds and prohibited buildings. Housing Minister Brandon Lewis said that the funding is part of a package of measures that will ensure millions tenants get a better deal when they rent a home. ‘Significant progress has already been made, now with £11.7 million distributed to councils to crack down on rogue landlords and d we have introduced protection for tenants against retaliatory eviction where they have a legitimate complaint and stopped landlords from serving an open-ended eviction notice at the start of a tenancy,’ he explained. ‘The measures will not hamper the vast majority of landlords who are diligent and responsible. Many private rental tenants are happy with their home and the service they receive, but there are still rogue landlords that exploit vulnerable people and force their tenants to live in overcrowded and squalid accommodation,’ he pointed out. Lewis said that the aim is not just to get rid of cowboy landlords but also to raise the quality and choice of rental accommodation across the sector. ‘The funding will ensure tenants know what level of service they can expect and have confidence to get help and take action if things go wrong,’ he pointed out. The funding to tackle rogue landlords is part of a package of proposals in the Housing and Planning Bill that includes the creation of database of rogue landlords and property agents convicted of certain offences and banning orders for the most serious and prolific offenders. Civil penalties of up to £30,000 as an alternative to prosecution will be introduced along with an extension of Rent Repayment Orders to cover illegal eviction, breach of a banning order or failure to comply with a statutory notice. There will also be a more stringent fit and proper person test for landlords of licensable properties such as Houses in Multiple Occupation and from 01 February 2016 landlords in England will have to carry out Right to Rent checks to ensure potential tenants have the right to rent property in the country. Continue reading
People staying in their first home longer due to costs of moving up the housing ladder
Some 37% of first time buyers in the UK are staying in their first property for longer than planned despite improvements in wages in real terms, according to new research. The situation is most acute in London where 49% had not bought a second property within the timescales they had initially intended, the survey from Clydesdale and Yorkshire Banks shows. This is in contrast to the East of England where only 23% of first time home owners had stayed in their property longer than they had expected. The research also found that first time buyers plan to stay in their first home for an average of seven years and nine months although a quarter plan to stay for more than 10 years. Those in the North East plan to stay in their first property for the longest length of time at almost 11 years whilst first time buyers in London have hopes of moving up the property ladder after six years and three months. ‘The step between the first and second property remains a challenge for some and increasing moving costs are also adding to the difficulty of raising a sufficient deposit to afford a larger home,’ said Steve Fletcher, director of retail banking. Clydesdale and Yorkshire Banks have launched a new mortgage to help these kind of borrowers who are struggling to take the next step up the property ladder. The Home Mover Mortgage allows borrowing between 90% and 95% LTV. It comes with a three year fixed rate of 4.49% and is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit. The Clydesdale and Yorkshire Banks Home Mover Mortgage comes with no arrangement fee and one free standard valuation. Continue reading
Mortgage lending in UK up 23% year on year, says latest CML data
Gross mortgage lending in the UK reached £19.9 billion in December, some 3% less than the previous month but up 23% year on year. The data from the Council of Mortgage Lenders (CML) brings the estimated total for the year to £220.3 billion, an 8% increase on 2014’s £203.3 billion and the highest annual gross lending figure since 2008. Gross mortgage lending for the fourth quarter of 2015 was therefore an estimated £62.3 billion. This is a 1% increase on the third quarter and a 23% increase on the fourth quarter of 2014. ‘Lending ended the year stronger than it started, with our estimate of nearly £20 billion lent in December. This brings total lending to just over £220 billion for 2015 as a whole, and slightly higher than we had anticipated,’ said CML economist Mohammad Jamei. ‘The low inflation environment, along with real wage growth, an improving labour market and competitive mortgage deals have all helped to underpin demand. Having said this, the upside potential looks limited over the near term, as the supply of existing and new properties on the market remains weak, and affordability pressures weigh on activity,’ he pointed out. ‘There is an added element of uncertainty as we wait to see the impact of tax changes on the buy to let sector,’ he added. John Eastgate, sales and marketing director of OneSavings Bank, believes that the stamp duty tax changes on second properties from April are expected to increase mortgage lending activity ahead of their rollout. ‘However we don’t see this as a long term trend. The end of the year is a difficult time to conclude a great deal. Regulatory changes are expected to cause a short term spike in demand from investors, which will be reflected in first quarter figures, while overall conditions are supportive of sustainable growth in gross mortgage lending,’ he said. ‘Investor demand may balance out after the April rush, but the Help to Buy ISA will help underpin long term first time buyer demand, and the diminishing prospect of an interest rate rise will help keep a lid on monthly mortgage payments. As UK employment hits a record high, all this bodes well for borrowers’ finances and the health of the market,’ he added. The indusry should not be concerned about that dip in December, acdoring to Rishi Passi, chief executive officer of Oblix Capital. 'In the longer term, low inflation and reasonable wage growth look set to improve affordability for first time buyers and those on the bottom rungs of the ladder,' he said. 'Help to Buy will also go some way to fill the void left by any buy to let landlords downsizing their portfolios, so developers with one eye on the future should be preparing future stock to meet this shifting demand,' he added. Continue reading
