Author: tonu

Over 50 firefighters were called to YMCA Bournemouth on Westover Road at around 1.30am on December 18 after a fire erupted in one of the flats on the fifth floor.

Following an investigation by Dorset and Wiltshire Fire and Rescue Service it was found that a converted electric bike was the cause of the fire.

The fire service is now warning the public about potential fire risks with lithium-ion batteries and to only buy from reputable sellers.

Station Manager Shaun Milton said: “We know that e-bikes and e-scooters are increasingly popular, but it’s vital that owners understand what to look for when buying them, and how to charge them safely.

“Anyone buying an e-bike conversion kit should always purchase from a reputable seller, and check that it complies with British or European safety standards. You should also check that the various components are compatible.”

A new analysis of the private rental sector suggests that between 800,000 and one million more homes are required to meet growing demand by 2031.

Savills – an estate agency which is a long-time stalwart of Build To Rent – has looked at the private rental sector overall, and not just BTR. It has calculated the propensity of different age groups to rent and applied this to government household projections.

Savills says: “These projections point to an additional 800,000 to 1,000,000 Private Rented Sector households by 2031, under three scenarios. Our base case scenario identified that between 2021 and 2031, the greatest growth in the number of PRS households will be in the 25–34 year old age group, with an additional 370,000 during this period. There will [also] be an additional 229,000 35–44-year-olds.

“Other scenarios involved a ‘Help to Buy 2’ stimulus or an ‘Affordable Home Building Programme’. Our projections indicate that a stimulus package similar in scale and impact to Help to Buy would soften future PRS demand by 20 per cent (c.200,000 households) and an affordable homebuilding programme would soften demand by 11 per cent (c.110,000 households).

“While a Help to Buy 2 would deliver more houses, it would come at the cost of fuelling further house price inflation, which has the dual effect of (i) pushing home ownership further out of reach for middle-income earners, whilst (ii) simultaneously putting increased pressure on PRS rents.”

The analysis appears in a Savills report backing the development of much more BTR housing in the UK.

The agency says some £250 billion of investment is needed to meet the growing rental demand by 2031, while it suggests that demand will be greater for so-called ‘single-family homes’ rather than blocks of rental flats.

“We need to adopt a positive response to the housing crisis, across all tenures” says Jacqui Daly, director of residential research at Savills. “Build To Rent can help to deliver many more homes, more quickly, and secure investment that improves the energy efficiency of the private rented sector, while meeting the needs of young, middle-income households.”

Savills calculates that £3.5 billion has so far been spent building over 10,000 purpose-built BTR homes; to build another one million would cost £250 billion.

Original Post from landlordtoday.co.uk

• A total of 83% of landlords have had tenants breach their tenancy agreement
• Most common breaches include not keeping the property sufficiently clean
• Other breaches include keeping a pet without the landlord’s permission 

More than eight out of ten landlords say they have had a tenant breach their tenancy agreement, according to new research.

Direct Line surveyed 500 landlords in October and November last year and found that 83 per cent had experienced a tenancy breach.

The most common breaches included not keeping the property sufficiently clean and maintained – at 36 per cent – and failing to notify a landlord of required repairs at 29 per cent.

 

Other breaches include damaging or making alterations to the property, keeping a pet in the property, smoking or vaping in the property and redecorating without permission.

All of these other breaches were reported by more than a quarter of the landlords surveyed.

The most common sanction for broken tenancy agreements is to have money deducted from the tenant’s deposit, to issue the tenant with a written or verbal warning, or to ask the tenants to pay for the damages or work themselves.

Landlords are being urged by Direct Line to have their properties inspected regularly to help check for any breaches.

Left unaddressed, issues such as required repairs may cost more money to rectify if they are left in the long run.

BREACHES IN TENANCY AGREEMENTS EXPERIENCED BY LANDLORDS

Reason for breach	Proportion of breaches
Failing to pay rent on time (or not at all)	38 per cent
Failing to keep the property sufficiently clean and maintained	36 per cent
Failure to notify the landlord of things that need repairing	29 per cent
Damaging or making alterations to the property	28 per cent
Keeping a pet in the property	28 per cent
Smoking/vaping in the property	27 per cent
Redecorating without permission	25 per cent
Causing a disturbance or nuisance to neighbouring properties	23 per cent
Subletting or moving in people without notifying the landlord	15 per cent
Changing locks	15 per cent
Tampering with or covering smoke or carbon monoxide alarms	10 per cent
Other	1 per cent
landlords who have not experienced any breaches in tenancy agreements	17 per cent
Source; Direct Line

ACTIONS IMPOSED ON TENANTS WHO HAVE BROKEN AGREEMENT RULES

Action Imposed	Proportion of actions
Money deducted from their deposit	38 per cent
Gave them a written or verbal warning	32 per cent
Made them pay for the damages or work	28 per cent
Did not return the deposit	26 per cent
Evicted the tenant	23 per cent
Made them rectify the issue	23 per cent
Other	2 per cent
Landlords who did not take any action	6 per cent
Source: Direct Line

Despite this, just over half of landlords – at 55 per cent – conduct six-monthly property inspections, according to the Direct Line research.

A further 21 per cent make only annual checks, while 10 per cent of landlords admit that they only visit their properties at the start and end of the tenancy.

Fourteen per cent of landlords visit their properties less often than that, or only if they suspect there is an issue.

Rates have dropped significantly since summer – with small lender Generation Home now leading the way

A new mortgage deal priced below 4 per cent has hit the market just before the new year, sparking hope rates could come down further in 2024.

Generation Home, a small lender, has today launched a five-year rate for 3.94 per cent for people with a 40 per cent deposit. This comes with a £999 fee, and is currently the cheapest rate on the market.

Despite the mortgage market usually getting quiet around Christmas time, lenders have continued to cut rates following a drop in inflation to 3.9 per cent in November.

The surprising drop in inflation was very good news for homeowners who could see mortgage deals drop even further in the coming weeks as a result, as pressure mounts on the Bank of England to cut interest rates.

Swap rates, a measure that indicates what the market thinks interest rates will be in future, fell by 0.2 points in just a few hours on both two and five-year fixed rates.

It comes following a tumultuous year for mortgage costs. At their highest average level, rates were 6.86 per cent for a two-year fix in July. Experts are predicting even more rates of below four per cent by early next year.

Any further changes will be affected by the base rate, which determines the rate at which the Bank of England lends to other banks. If it stays at 5.35 per cent of falls, which is is now predicted to do, as early as next March, it is likely that deals will also become better value.

David Hollingworth, associate director at L&C Mortgages, added: “Competition between lenders remains strong in a housing market with lower activity levels.

“As market expectation of the chance for the next move in base rate to be down has grown, lenders have passed through improvements in funding costs.

“Today’s news is likely to further that trend, which could soon see five-year fixed rates closing in on the four per cent marker.”

Lenders battle to lure customers as mortgage applications fall

Currently, an average two-year fix is 5.95 per cent and a five-year one is 5.55 per cent, according to the mortgage analytics firm Moneyfacts. However, much lower deals can be found.

Lenders started cutting rates towards the end of 2023 to lure more customers as the number of people applying for mortgages has fallen.

They will continue to make up for lost business in the new year, which could mean more criteria changes to try to soak up as much business as possible. For example, high-street lenders may try and take some of the business away from specialist lenders.

Chris Sykes of brokers Private Finance added: “While there is no crystal ball to determine what mortgage rates will be in 2024, it is looking increasingly likely that we have now passed the peaks of mortgage rates for the time being.”

Although not yet under 4 per cent, major lenders are offering cut-price deals, including Barclays, which earlier this week announced fixed-rate cuts of up to 0.43 percentage points. The cheapest rate it offers is now a five-year at 4.32 per cent, although it does come with a £1,999 product fee.

Halifax is offering a five-year fix at 4.28 per cent as of this week, down from 4.27 per cent.

Should rates stay (relatively) low, or fall further, first-time buyers are likely to benefit as lenders tend to offer cheaper purchase rates for new buyers than they do for those remortgaging.

Anyone on a standard variable rate, which tends to follow the base rate, are likely to find they are paying a similar rate to what they are already.

But for those on fixed rates about to end, although rates are coming down, they will still be likely find they are paying more than they were before, as thousands move off deals that were as low as one per cent.

Brokers suggest looking for a deal six months before your mortgage comes to an end, and locking in a new one. You will be able to change it nearer the time, if a better offer opens up, but will have one secured if rates increase again.

Looking for Property for Rent in London? At Homesearch Properties, we go above and beyond the typical standards to find you your dream home. Contact Us Now!

Original Post from inews.co.uk

A landlord looks set to lose his leasehold flat after being caught renting it out on Airbnb by his freeholder.

A First Tier Property Tribunal ruled that Gabriel Ben-Soussan had breached the clause of the lease which stated it was not to be used other than as a single private residence “for occupation by an individual or an individual and his family as his or their only or principal home”.

It heard that the leasehold services team at Westminster City Council received a complaint that the one-bedroom ground floor flat in Harewood Avenue, central London (pictured), was being used for short-term letting.

It had also been tasked with removing two key safes that were fixed to the exterior wall of the building. It then wrote to Ben-Soussan, asking him to stop the practice.

Airbnb booking

When a council officer visited the property, thought to be worth about £643,000, he found a guest staying there who had booked it via Airbnb for the period of 2nd-17th July. The council confirmed that the flat had been advertised on www.booking.com and Airbnb.co.uk.

The judge said the property was not used as a single private residence by an individual or his family as their only or principal home, given that it was being used for short-term occupation by a paying stranger.

He added: “The tribunal finds, on the balance of probabilities, that the respondent, whether themselves or by an agent, advertised and allowed the property to be used as accommodation for paying guests in breach of clause 18 (a) of the seventh schedule of the lease.”

Ben-Soussan failed to take part in the tribunal proceedings. He has a month to appeal.

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Original Post from landlordzone.co.uk

• Chancellor Jeremy Hunt set out the measures in the Autumn Statement 
• Supporters say it will create more homes, helping first-time buyers and renters
• But others have warned it could create controversy among neighbours 

The Government is planning to scrap the need for planning permission for property owners who want to convert a house into two flats.

Chancellor Jeremy Hunt announced the plan in the Autumn Statement as part of a package aimed at slashing red tape and increasing the number of new homes.

The new rule, known as a ‘permitted development right,’ will apply so long as the external appearance of the building does not change.

But the idea has already proved controversial.

Supporters believe it could lead to a greater supply of homes for both renters and homeowners, helping to combat increasingly unaffordable house prices and rents.

However, some worry that removing the need for sign-off from the local council could have a detrimental impact on communities, changing the character of neighbourhoods forever without giving residents their say.

We explain how the new system could work, and ask property experts for their thoughts on whether or not it is a good idea.

Peter Bill, co-author of Broken Homes: Britain’s Housing Crisis: Faults, Factoids and Fixes, says there will be pros and cons if the proposals are implemented.

‘Cutting red tape for those looking to convert is a good idea and should result in a marginal increase in the number of flats available.

‘The downsides are the inevitable parking problems, and the worries of long-term owners.

‘They may be thinking, “Will these new people affect the tone of the neighbourhood, and bring down the price of my house?”‘

What are permitted development rights?

In essence, permitted development rights cover the most significant changes someone can make to a home without needing planning permission.

The rules of permitted development are set by central Government, and they vary depending on whether you are in England, Wales, Scotland or Northern Ireland.

Local authorities can also make amendments to permitted development rights within their areas, which means planning permission may be required for an extension in one place, and not in another.

It is also important to note that permitted development rights which apply to many common projects for houses, do not always apply to flats or maisonettes.

Paula Higgins, chief executive of the Homeowners Alliance says: ‘Permitted development rights entitle you to extend or renovate your home without the need for a full planning application.’

‘This is a fantastic option for anyone who is looking to avoid the subjective nature of a traditional planning application – not to mention the administration, time and costs involved.’

Why could the plans prove unpopular?

Other notable permitted development rights already in place include the right to extend a building’s height by one or two storeys in some circumstances, and to convert certain office buildings into flats.

Both of these have also been controversial and viewed by some as watering down safeguards to over-development.

He says: ‘This idea is similar to the one where you can build on rooftops – it sounds great in theory but doesn’t suit every area, particularly those where there is a pre-dominance of family housing.

‘While you may not be changing the external appearance of the property, you are changing the culture and making it multi-occupation, which could have a detrimental effect on the community.

‘The character of the area needs to be taken into consideration, along with practical concerns such as the potential increase in parking created by having more households in one property.

‘But on the other hand, in areas where there is a greater mix of accommodation and perhaps a lack of affordable property to rent or buy, it could be a good idea.

‘Whatever is implemented, there needs to be careful control to make sure it doesn’t cause more problems than it solves.

‘We don’t know what right of objection neighbours will have. It is important that there is an objective assessment in terms of parking or the character of the neighbourhood.’

Concerns have also been raised about the quality of the homes created when existing buildings are sub-divided into smaller units, and about the need to retain a supply of larger properties for families who need them.

Who benefits from permitted development rights?

The proposals will be attractive to some homeowners, landlords and developers as they could make sizeable returns on their investments by converting houses into flats and then selling them on or renting them out.

Although not true of all neighbourhoods, a house divided into two flats will tend to sell or let for more than if it was left as an individual home.

‘Two flats tend to be worth more than a single house, in selected areas,’ adds Peter Bill.  ‘The ability to turn a detached home or even big Victorian semis into a pair of apartments without planning permission could work well for the owner or landlord.

‘Squeezing two pokey flats into a terraced house can also be profitable, as a legion of landlords can testify.’

The changes could also be beneficial for both renters and aspiring first-time buyers.

There are growing concerns that the rental market is suffering from a severe housing shortage.

There are roughly 4.6 million households within the private rented sector, according to Government figures, representing 19 per cent of all households in England.

Meanwhile, the social housing sector is made up for a further 4 million households representing 17 per cent of the housing stock.

In recent years, more private landlords have been exiting the market than entering it, all the while demand from renters is increasing.

By the end of this year, private landlords will have sold almost 300,000 more homes than they have bought since 2016, according to analysis by the estate agent Hamptons.

This is putting upward pressure on rents. In the last three years between October 2020 and October this year, the average UK rent has risen by almost 32 per cent from £974 a month to £1,283, according to the Homelet Rental Index.

Leaf says: ‘In the right areas and circumstances, the new permitted development right will potentially provide more affordable accommodation which is in such short supply to rent.

‘This should help keep prices and rents in check so if properly controlled, it will be a good idea.

‘It was always that way anyway with conversions but it remains to be seen what difference this proposal will make.

‘It should alleviate pressures on housebuilding and provide a greater supply of property for rent, particularly smaller, affordable properties, which are in short supply.’

Meanwhile, barriers to becoming a homeowner remain high, with first-time buyer mortgage lending down by almost a quarter in the last year, according to UK Finance.

Earlier this year Leeds Building Society revealed that 426,000 fewer first-time buyers would be able to buy their first home over the next 5 years compared to the past 40-year average if current economic projections play out.

If it becomes easier for homeowners, landlords and developers to divide a house into flats this could benefit the buyers alongside renters.

Henry Pryor, a professional buying agent, welcomed the proposals.

‘It’s actually quite a clever idea,’ says Pryor. ‘Increase the housing stock without actually building anything new.

‘Does it solve all our problems? No, it doesn’t – but like converting commercial buildings – offices in old houses in the High Street for instance – this will make a positive contribution to the housing stock.

‘It may make a significant impact on the supply of available rented properties at a time when they are badly needed.

‘There will doubtless be some chancers who try to take advantage of the initiative, but on balance and perhaps unusually I think that this is a good idea and will make a positive difference to people.

‘Whilst he could and should have done much more for housing I say – two cheers for the Chancellor.’

However, Aneisha Beveridge, head of research at Hamptons believes the changes will have minimal impact.

‘Generally we don’t think this policy will have much of an impact at all,’ says Beveridge.

‘If anything, it’s more likely to provide developers and landlords clarity and scope to split a house into multiple dwellings, which could increase densification for homes in some areas.

‘First-time buyers are unlikely to want to take on the work, particularly given the costs associated with purchasing a larger home and then do the works to divide it up.

‘As always, the devil’s in the detail and it will be interesting to see what the criteria is to keep the façade the same. For many houses, this simply won’t be possible.’

Could it lead to a shortage of larger homes?

There are also concerns that it could lead to a shortage of exactly the type of homes that are currently in short supply.

According to Zoopla, there is currently a larger disparity between supply and demand for three-bedroom homes than any other type of property in the UK.

Zoopla says that this impacts those going from their first home to a larger property, but it also impacts first-time buyers who make up a third of the market.

The average first time buyer is now 34, compared to 30 a decade ago, meaning many now need a family-sized home from the get-go.

Daniel Copley, consumer expert at Zoopla said: ‘We know that three bedroom homes are very popular for families and first-time buyers, but there are simply not enough on the market.’

Jeremy Leaf adds: ‘It could mean fewer larger homes, which is why there needs to be some control.

‘This is what planning offices and local authorities are for. It doesn’t have to be full planning permission, but a bit like with extensions and loft permissions, just some checks and balances.’

When will new permitted development rules come into force?

The policy is set to be consulted on early in the new year and then implemented later in 2024.

Paul Higgins of the Homeowners Alliance says the government doesn’t have a good track record on extending permitted development rights.

‘The quality element can be missing and is too often not up to standard, as we have seen with these office to flat conversions,’ says Higgins.

‘Standards need to be maintained as deregulation in this area does mean a greater risk of bad conversions – for example, minimum space standards are often not adhered to.

‘And unlike when you buy a new home, buyers of these conversions will not be given a warranty.

‘Potential buyers will need to be educated about the risks and an independent survey will be a must.

‘Newly converted flats without planning permission should be required to be subject to more stringent building control checks.’

Original Post from thisismoney.co.uk

The future of London housing might lie in the sky, as a plot of “airspace” goes under the hammer this month in Battersea, south-west London.

Space at 47 Northcote Road is being offered with a guide price of £10,000.

Despite there being no planning permission to build, auctioneer Phillip Arnold thinks it could fetch more.

The sale listing states the freeholder “will be providing landlord’s consent to develop” on top of the roof of the flat below.

Mr Arnold explained that the plot next door was currently being redeveloped with an additional storey and another, two doors down, had permission for the same.

“You’d like to think there’s a better chance than most with this,” he said.

Located within walking distance of Clapham Junction railway station, the plot sits above two self-contained flats and a ground floor restaurant that is being redeveloped into a café.

The airspace is offered “with vacant possession” and the auctioneer’s website says “a new 150-year lease with a peppercorn ground rent will be granted upon completion”.

‘Phase’ in London’s market

But why would anyone bid on what is essentially thin air?

Mr Arnold, who has been in the auction trade for almost three decades, said it was a cheaper way for people to “have their dream” in a neighbourhood where the average price for a flat is more than £600,000, according to RightMove.

He argued that at a time when house prices and rents were skyrocketing, the plot could make an attractive investment.

 

Mr Arnold pointed out that although the project would not be “a straightforward build” and there could be extra costs – for example, if a crane was required – the low initial cost for the space gave it “hope value”.

“London has been through a big period of flat conversions. You get phases, and I think this will be one of them and people will just actively look for these things,” he said.

“They’re like buses; it’s the first one I’ve had for ages but about 18 months ago I had nine.

“I think you’re going to see a lot more of them. Sometimes if you’ve got a couple of people bidding the price will go through the roof.”

Property writer Anne Ashworth said the concept of selling airspace was “massive” in places like New York a decade ago, where “one building would sell space to a neighbouring building”.

She has already seen airspace development in parts of central London like Fitzrovia and said this kind of building sometimes “happens when the roof needs doing” if freeholders believe it’s a better option, but she added she was not sure it would become widespread in the UK.

“There is a massive new home shortage,” she said, “so maybe it’s a way to make this happen – at some point as mortgage rates start to fall maybe people will look for these things”.

Ms Ashworth said that while it might be the case that “the only way is up” for development in the capital, she would advise those renting top-floor flats to “start thinking whether this could be happening” to them in the future, if the freeholder sold the rights to the roof.

The auction takes place online on 7 December.

Original Post from bbc.com

The UK’s Office for National Statistics will soon have access to data on short-term lets listed on Airbnb, Booking .com and Expedia Group as a result of a new sharing agreement.

There has long been criticism of the short lets sector for an absence of hard data on its size and growth; in turn, critics of local authorities and politicians who have spoken of the alleged detrimental impact of short lets have suggested they may have exaggerated the effect of the sector on the wider rental market of uk property market.

The cross-platform initiative to provide data was brokered by the Short Term Accommodation Association (STAA) and means anonymised and aggregated UK data will be published for the first time from spring 2024. It will include the number of guests using short-term let platforms and the number of nights booked. Data will be shared on a quarterly basis.

Amanda Cupples, Northern Europe General Manager at Airbnb, says: “At Airbnb we want to help strengthen communities, support tourism, and boost income of local families. This data will be a vital resource for authorities at all levels to better understand short-term letting activity in their communities, and capture the positive benefits of tourism.”

The STAA’s research director, Louise Birritteri, says: “This agreement marks a pivotal moment for short term lets in the UK, demonstrating its commitment to responsible data sharing with public authorities such as the ONS. We expect this data to illustrate the positive impact that short-term lets bring to the UK tourism economy, while also empowering public authorities with the insights they need to make informed, data-driven policy decisions, ensuring a balanced approach that benefits both local communities and the broader economy.”

The announcement comes ahead of a government response to consultations on new rules for short-term lets in England later this year.

Back in the spring the government consulted on new measures designed to control the rise in short lets; the proposed planning changes would allow councils to stop homes being turned into short lets; there has been a separate consultation on a national registration scheme for short lets.

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Original Post from landlordtoday.co.uk

Landlords in the capital’s prime rental sector are facing a stark choice between topping up a rent shortfall or selling up.

Luxury residential property expert, Jo Eccles, reports that highly leveraged landlords are coming under serious cost pressures as fixed rate mortgage deals come to an end. Stress testing by lenders means some are finding they can borrow 30% less than before, forcing them to make up the shortfall or sell.

The founder and MD of Eccord, which manages £1.5 billion worth of residential property in prime central London for portfolio and individual landlords, says: “Those with the financial flexibility are reorganising their finances to pay down debt and raising rents by an average of 15% at renewal, but it isn’t always enough to meet their increased borrowing and service charge costs – which are up 30% in some buildings.”

One landlord has seen his mortgage repayments more than double from £4,000 a month to £9,000 a month and can’t sell due to cladding issues.

Rent increase

“We’ve secured him a significant rent increase of 19% but he has still swung from a monthly surplus to a £2,000 shortfall, which he’s having to personally top up each month.

“This illustrates that the challenges landlords are facing can’t always be resolved with rent increases alone.”

Some now have no choice but to exit the market which will further diminish supply and cause more hardship for tenants, believes Eccord.

“For landlords who are able and committed to remaining in the market long term, we are seeing them review their existing arrangements,” she adds.

“Many are choosing to move away from underperforming letting agents or property managers with high staff turnover, as they recognise the importance of tenant experience now more than ever, if they’re to achieve high rent increases.”

Original Post from  landlordzone.co.uk