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Nearly half of 25- to 34-year-olds rent their homes

According to the government’s annual snapshot of the state of the country’s housing, more than 1.5 million families with children live in the private rented sector, almost triple the 566,000 families in a similar position in 2004. Nearly half of 25- to 34-year-olds rent their homes (59% of that age bracket were homeowners in 2004 compared with 36% in 2014). Rents were found to be rising faster than inflation.

Property Journey

How has your property journey changed and evolved over time and with your shifting priorities? Is now the time for you to seek out some professional advice and support to ensure the plan is both realised but equally is flexible enough to counter the changes that are happening right now and in the future? Call 01205 368896

Changing Times for Landlords

allsop - the rent checkallsop - the rent check
Changing Times for Landlords

Undoubtedly, 2015 has been a pivotal year for landlords. The demand for privately rented accommodation seems unrelenting, and, as the Rent Check reports, rents are certainly increasing, with an average increase across England and Wales of 2.0% over the last six months. However, Government intervention and added regulation are squeezing landlords’ returns and matters of compliance are increasing. The press continues to focus on reports of poor landlords and unsatisfactory conditions for tenants.

                                   

Green Belt Building...

Thousands of new homes are set to be built on the Green Belt in the biggest relaxation to planning protections for 30 years.

A new Government consultation proposes to change strict rules that only allow building on the ribbon of greenfield land around towns and cities which prevents urban sprawl in exceptional circumstances.
 
Instead councils will be allowed “to allocate appropriate small-scale sites in the Green Belt specifically for starter homes”, which are designed for young families, the Government said.
The changes, which were published quietly on Monday, are likely to be seized on by developers

East Anglia 8% North East 3%

RICS predicts house price growth in 2016 to be led by East Anglia, up 8%, with the most modest rises in the North East, at 3%. London is forecast to see price growth of 5%.

Thinking of investing in this area call us today 01205 368896..

Tenants Face Strain In Property Market Squeeze

House prices are expected to rise 6% next year but the strain will increasingly fall on private tenants, a new report predicts.

The Royal Institute of Chartered Surveyors (RICS) predicts a 6% rise in house prices next year - outpacing any rise in household income - in its annual forecast amid a squeeze on housing supply.
But it also sees a 3% increase in private rents and that this sector will come under increasing strain.
RICS members expect that rents could be rising by an average of 5% a year for the next five years, against 4.7% for house prices.
It appears to suggest that as the ambition of home ownership becomes further out of reach for many, renting will also become increasingly hard to afford.

Short Fall On New Houses..

The Confederation of British Industry warned last year that 240,000 properties needed to be built annually to accommodate rising demand across the country. The annual increase in new homes, however, has topped 200,000 only four times in the past 14 years!

Lending to landlords has increased

Lending to landlords has increased on average by 5.9 per cent since the financial crisis, compared to only 0.3 per cent growth in the residential market

Buy-to-let rush?

Buy-to-let rush?

Since the FPC's warning, Chancellor George Osborne has announced that stamp duty rates will rise steeply for anyone buying a home that is not their main residence - which would include buy-to-let investors as well as second-home buyers.
But with the higher rates of duty only starting at the beginning of the next financial year, there are worries that there may be a rush by some would-be landlords to buy properties before then, which might help to push up house prices even further.
Lending to landlords has grown rapidly in recent years.
There are now 1.7m buy-to-let mortgages, making up about 16% by value of the total stock of all outstanding mortgages.
Each year, more than two million individual landlords declare rental income to HM Revenue & Customs in their tax returns.
For the 2012-13 financial year, 2.1 million taxpayers declared income from property, up by more than a third from the 1.5 million in 2007-08.
Earlier this year, Mr Carney said the Bank was in discussions with Mr Osborne about obtaining greater powers to regulate the buy-to-let mortgage market.

property millionaires

More than 75,000 new "property millionaires" have been created across Britain during 2015 as house prices continue pushing upwards, according to a website.
The number of home owners whose property is now worth £1 million or more - making them property millionaires - has increased by 75,796 (or 14 per cent) since January, analysis by Zoopla found. The increase equates to more than 200 new property millionaires being created every day.
The increase in million-pound homes across the country takes the total number of property millionaires in Britain to 622,939 - and means that 2.2 per cent of all home owners have a property worth £1 million.

House prices will rise 50 per cent

House prices will rise 50 per cent to an average of more than £400,000 within the next 10 years, according to a new forecast.
It means buyers will need a £100,000 deposit if they want to secure the more attractive mortgage rates for those with a larger deposit - and be earning an annual salary of almost £70,000.
The housing report suggests average prices will rise from their current level of £280,000 to £419,000 by 2025. For those in London, values will increase from £515,000 today to almost £1m at £931,000.


Right to Rent

The roll out of the Right to Rent checks across England will require all landlords and agents to check the immigration status of their prospective tenants & occupiers from 1st Feb 2016. Stakes are high with civil penalties and possible criminal penalties, landlords need to ensure they understand their new obligations. This course gives an overview of UK immigration law and breaks down the 'right to rent'.

Houses in Multiple Occupation (HMO)

The Residential Landlords Association has called on the Government to rein in plans to transform the way Houses in Multiple Occupation (HMO) are licensed.
The RLA has responded to a Government consultation on plans to extend mandatory licensing for HMOs – changes which could potentially see hundreds of thousands more homes needing licences.
At present mandatory HMO licensing is restricted to properties that are three or more storeys high, containing five or more people in two or more households with shared facilities.
Under the new plans the three-storey criteria for licensing will be amended, either by changing it to two-storey or extending licensing to all HMOs containing five or more people.  The Government is also considering a new national minimum room sizes, of around 6.5sqm for a single room and 10.2sqm for a double room.
The RLA believes many of the changes are unnecessary and says they will put a huge strain on local authorities.
The RLA submission in summary:
  • No change to current HMO thresholds
  • Licences should not be extended beyond two-storey buildings
  • A simpler definition of HMOs
  • Licences granted by default when councils fail to process applications on time
  • No minimum national room size
RLA Policy Director David Smith said:  “The consultation documents assume that maintaining the status quo is not an option.  If this is the case the RLA is asking that any changes to existing legislation are kept to an absolute minimum.
“Local authorities already struggle to enforce the current mandatory licensing requirements and in the face of further budget savings their ability to police an extension that will bring hundreds of thousands of homes into the regime is questionable.”
The Government launched the consultation process on November 6 and it closes on Friday.  Under current plans any changes will be brought in next year.
The consultation document can be viewed here: www.gov.uk/government/consultations/extending-mandatory-licensing-of-houses-in-multiple-occupation-and-related-reforms

After section 19A of the Housing Act 1988


It’s a nightmare of a document to try & read through, but tucked away & labelled NC22 is this proposing all AST’s will have a mandatory minimum 3 yr period from 2018.  I know this has been touted before, but I wasn’t aware it was actually being slipped in the bill.  Its followed by a section introducing the need for landlords to carry out an electrical safety check too.
 
 
“Security of tenure
After section 19A of the Housing Act 1988 insert—
“Section 19B: minimum length of certain assured shorthold tenancy
(1)    
Any assured shorthold tenancy (other than one where the landlord is a
private registered provider of social housing) granted on or after April 1,
2018 must be for a fixed term of at least thirty six months. It is an implied
term of such a tenancy that the tenant may terminate the tenancy by
giving two months’ written notice to the landlord.”
(2)    
In section 21 Housing Act 1988 insert—
“(4ZA)    
In the case of a dwelling-house in England no notice under
subsection (4) may be given for thirty six months after the
beginning of the tenancy.””
Member’s explanatory statement 

This amendment would prevent private sector landlords from using the ‘notice only’ grounds for possession for the first three years of a tenancy, without affecting the rights of tenants to give notice and leave the tenancy early.

Local market highs and lows

Local market highs and lows

Even in the same locality the property market can be quite volatile. To show this, each month we highlight a couple of recent sales where the sellers have experienced mixed fortunes. Today’s high is the sale of 9 St Marks Terrace in October 2015 for £75,000. It was previously bought for £11,000 in February 1997. This 581.8 per cent change works out to an annual equivalent change of 10.8 per cent. Today’s low is the sale of 18 Charles Street in July 2015 for £65,000. It was previously bought for £96,842 in December 2007. This -32.9 per cent change works out to an annual equivalent change of -5.1 per cent
National market summary
The latest House Price Index from Land Registry shows that house prices increased by 0.4 per cent in October. The annual change in England and Wales is 5.6 per cent. The number of property sales has decreased over the last 12 months.