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Unauthorised residential sub-letting costing UK landlords thousands
The practice of unauthorised sub-letting is still rife in the UK's private rented sector (PRS) and subsequently damaged properties are costing landlords thousands of pounds, it is claimed. The warning from the Association of Independent Inventory Clerks (AIIC) comes after the National Landlords Association (NLA) recently reported that almost half of tenants who sub-let their property do so without their landlord’s consent. The NLA's findings come in response to government proposals to introduce minimum room sizes in order to crack down on problems such as unauthorised sub-letting. The study also found that of those tenants who approached their landlord about sub-letting, a fifth had their request permitted. The AIIC says that any tenants who are interested in sub-letting must speak to their landlord as if approached officially and properly, there is a chance the landlord will be willing to hear any requests. ‘Unfortunately, the practice of unauthorised sub-letting remains rife within the PRS and can cost landlords thousands of pounds in damages,’ said Pat Barber, chair of the AIIC. ‘There are countless horror stories related to sub-letting. For example, I know of a new two bed flat in which a total of 12 adults lived, although it was only rented to two male tenants. Another case concerned a three bed furnished flat, let to a restaurant and a total of 27 people were sleeping there, on shifts, all workers for the restaurant business,’ she explained. ‘These were both properties that I personally checked-out and needless to say both were wrecked, leaving the landlords thousands of pounds out of pocket,’ she added. It is hoped that the government's new proposals will limit the scope of unauthorised sub-letting but Barber pointed out that it also remains vitally important for landlords, agents and service providers like independent inventory clerks to remain vigilant for the signs of unauthorised sub-letting. She also explained that in the case of unauthorised sub-letting, an inventory carried out by an independent inventory clerk could provide the landlord with the opportunity to recoup some of the costs incurred by property damage. An independently compiled inventory will comprehensively detail the condition of the property at the beginning of the tenancy and it is very difficult for a tenant to argue against such firm evidence of check-in condition. Continue reading
Peripheral areas in prime central London market set to help prices rise by 3% in 2016
Peripheral areas in central London such as Shoreditch, Kings Cross, Battersea and Shepherds Bush could be the new engine room of the London prime property market in 2016, it is suggested. These locations are likely to contribute to anticipated price growth of around 3% across prime London, according to an outlook analysis from boutique search agent Banda Property. It also suggests that strong competition among British home buyers for middle level housing in the £1million to £2 million price bracket will focus on outer central areas which offer quality flats and family houses with gardens, good schools, transport links and village amenities. Overall, the prime central London market is set to benefit from a surge in demand for investment properties early in the year as buy to let investors and second home buyers rush to beat the April deadline and avoid the new additional 3% stamp duty, the report explains. However, the firm expects that the numbers of new foreign buyers entering the market from Russia, the Middle East and Asia will be smaller than in 2015, as a result of higher costs and unfavourable exchange rates. But despite the Chancellor sending a negative message to investors with further stamp duty increases, Britain is still regarded as the best in Europe if not the world for real estate investment thanks to its tolerant and secure society, stable economy, transparent financial and legal systems and world class education ensuring it remains an attractive option for internationals seeking somewhere to live. ‘If the effects of the last stamp duty rise are anything to go by, we may well see a surge in activity as second home buyers and investors try to close before April. This will temper potential annual capital growth to the relatively moderate level of 3% overall and value will become more important than ever,’ said Louisa Brodie, head of search and acquisitions at Banda Property. ‘I’m confident that the London property market is resilient, as demonstrated this year, when despite hugely negative press and challenging regulation changes, the market has slowed but still remains an attractive proposition to buyers with a long term view,’ she explained. ‘British homebuyers will dominate in 2016, buying up good value properties in the peripheral ring around the prime locations. They are broadening their horizons beyond the obvious areas such as Chelsea and Belgravia, looking instead to places such as Battersea, Kings Cross and Clerkenwell as well as Shepherds Bush and Ealing in the west, in order to secure more square footage for their money,’ she pointed out. ‘With the key sections of Crossrail coming into operation by 2018, we will see particularly strong growth along the corridors of operation in the coming year,’ she added. Continue reading
England and Wales property prices up 0.4% month on month
Property prices in England and Wales increased by 0.4% in November month on month and are up 5.6% year on year, according to the latest official data from the Land Registry. This take the average property price to £186,325 but there is considerable variations on both prices and price growth across the regions. London experienced the greatest increase in its average property value over the last 12 months with a rise of 11.2% and the greatest monthly growth with an increase of 1.6%, taking the average price to £506,724. Both Yorkshire and The Humber and the North East saw the lowest annual price growth with increases of 1.3% while Yorkshire and The Humber also saw the most significant monthly price fall with a decrease of 0.9%. The South East saw prices rise 0.4% month on month and 8% year on year to £258,137, while the East of England recorded a monthly rise of 1% and annual rise of 9.8% to £214,491. Average prices are lowest in the North East at £100,046 with a monthly and annual rise of 1.3% while it is £115,491 in the North West which saw prices flat month on month and up 3.1% year on year. Three regions saw monthly falls, down 0.3% in the West Midlands, down 0.7% in the East Midlands and down 0.9% in Yorkshire and the Humber, but prices are still up 2.9%, 4.1% and 1.3% year on year respectively. The Land Registry data also shows that the number of completed house sales in England and Wales during September 2015, the most up to date figures available, decreased by 8% to 72,397 compared with 78,877 in in September 2014. The number of properties sold in England and Wales for over £1 million increased by 1% to 1,273 from 1,265 a year earlier. Repossessions in England and Wales decreased by 45% to 406 compared with 733 in September 2014 and the region with the greatest fall in the number of repossession sales was the East with a decrease of 64% from September 2014. While average prices continue to rise in London it is emerging locations that are now overtaking traditional areas like Kensington and Chelsea, according to one agent in the city. ‘We are now seeing emerging districts consistently overtake traditional prime areas like Kensington and Chelsea, which are actually seeing prices fall,’ said Carl Schmid, owner of estate agency Fyfe Mcdade, which has offices in Shoreditch, Islington, Bloomsbury and Waterloo. ‘Buyers are increasingly seeking to make their money go further in areas like Tower Hamlets, Hackney, Lambeth and Southwark, attracted by relative value for money, improving transport connections and capital growth potential, which has already been squeezed out of prime central London,’ he added. According to Jonathan Hopper, managing director of the buying agents Garrington Property Finders, there are some encouraging signs though that the £1 million plus market is emerging from the slump triggered by last year's rise in Stamp Duty. 'Supply of these more expensive homes slowed… Continue reading
