Should we blame landlords for the housing crisis?

The Government’s recent assault on landlords with a series of tax hikes, have hit the sector hard, driving some to leave the buy-to-let market for good.

The Government’s clear intention was to reduce BTL profits and contract the market, in an effort to stabilise house prices and help first time buyers onto the property ladder.

The big question is will this strategy work, or have landlords simply been used as a scapegoat for the housing crisis?

According to former Bank of England economist, Professor David Miles, the buy-to-let assault is 'profoundly wrongheaded' and that the government has wrongly blamed landlords for rising house prices and a shortage of new homes available to first-time buyers.  He has said the government’s move to make buy-to-let less attractive than homeownership would serve only to push up rents and make it even harder for young people to save for a deposit.

Landlords have been hit by the introduction of a 3% surcharge in stamp duty payable on buy-to-let purchases from April last year, together with a staggered reduction in the tax relief they can claim from April 2017.

Previously, landlords could deduct both mortgage interest and other allowable costs associated with a let property from their rental income, before calculating how much tax was due. This meant the income they had to declare to HMRC was much lower than their rental income, keeping their costs down and keeping many in a lower income tax bracket.

Since 6 April 2017, landlords have seen the amount they can write off for tax purposes drop by 25% each tax year until 2020, when they will have to declare all of their rent as income, pay income tax on the total and then claim back for 20% of it as a credit.

According to Peter Armistead, Managing Director of Armistead Property, although the government is trying to curb the buy-to-let market, property investment is robust in the long term.

Peter comments: “It is estimated that two million Britons are now private landlords collectively renting out five million properties. With rising demand for rental property and a growing shortage of accommodation, the buy-to-let market will continue give a good return on investment.

The good news for landlords is that while the new tax rules are challenging for most landlords, rising asset values and rental income will go a long way to protect profits.

Landlords have plenty of options available that will help offset the increased taxation. The first thing landlords should do is carry out a serious portfolio review and work out how the tax changes and tougher mortgage lending will affect them and what options there are to save, or make more money.  For example, mortgaging to get a better deal; renovating some old stock - these costs will be tax deductible; selling some properties; or increasing the rent.

Landlords need to think outside the box and ask themselves questions like can I buy with cash or with far less leverage?; should I incorporate?; can I change a house into an HMO and increase the rental income?; can I get planning on an existing property to increase its value?; or can I add an extension, or convert the cellar?”

Peter has put together some options that landlords can consider to protect their profits:

• Review your properties and see if you can get planning on an existing property to increase its value, by adding an extension, or converting the cellars?

• If you have a one bedroomed property, can you make it into a small two bedroomed property?

• If you lack building skills/knowledge, but have equity or cash may be partnering with someone more skilled in building/renovation work would be profitable.

• Consider changing a house into an HMO and increase the rental income.

• There is a real lack of shortage of properties right now and prices are at a record high so consider selling some stock.

• The tax changes don’t affect Limited Companies.  Consider setting up a Limited Company and using this structure to hold your properties

• Are you an active or passive investor?  Passive investors will get hit hardest by the changes.  May be active investors can find deals for other investors and create income streams there.

• It will become far more important to buy property below market value.  You can’t just buy a £1 of property for a £1 anymore.  Buying with a built-in discount will help ensure your investment is just that (ie an investment)

• Consider other specialist areas of property investment which compliment traditional BTL.  For example, can you manage properties for other landlords and charge a fee for that service?  Can you sack your lettings agent and do the job yourself or use a cheaper online lettings agent?

source http://blog.evolutionproperties.co.uk/2017/07/30/should-we-blame-landlords-for-the-housing-crisis/

The seven rules of buying a 'doo-er upper' home: Renovating a property can be a challenge, but if you get it right you'll reap the rewards

 

• Doing up a property is one of the few ways to ensure you can get your dream home at an affordable cost 
• Now there’s help from a new website, upshoot.co.uk 
• But experts say renovations are not for the faint-hearted and can take months or even years
• Here are seven rules for turning a wreck into des-res without making you bankrupt

Buying a ‘doer-upper’ has long been a dream for many of us.

TV shows such as George Clarke’s The Restoration Man give the impression that restoring a wreck is more a labour of love than savvy investment.

But with the housing market in the doldrums, it’s now one of the few ways to make money from property.

Added value: With the housing market in the doldrums, restoration now one of the few ways to make money from property

Rightmove says asking prices are static and have hit their affordability ceiling. Meanwhile, the Royal Institution of Chartered Surveyors says market confidence is at its lowest since the Brexit vote 13 months ago, so fewer homes are on the market.

Therefore, doing up a property is one of the few ways to ensure you can get your dream home at an affordable cost, and even go on to sell at a profit.

There’s no shortage of choice, either.

Ben Horne, of Middleton Advisors, a buying agency, says the properties in worse condition don’t always look that bad from the outside.

‘Often inhabitants have been there for 20, 30 or 40 years and have only added a new carpet now and again,’ he says.

‘In that time we’ve moved from lots of small rooms to open-plan living and many more new trends — so there’s plenty to get stuck into.’

Now there’s help from a new website, upshoot.co.uk.

It’s still being tested, but its objective is to scour the web for homes listed online, picking out those with scope for anything from a simple loft conversion to a full renovation.

The site will ultimately offer estimates for the work and list local contractors, as well as giving a valuation on what the finished home may be worth.

It joins plenty of others aimed at the would-be first-time property renovation set, including renovateme.co.uk, houzz.co.uk and periodproperty.co.uk.

But don’t be fooled. Experts say renovations are not for the faint-hearted and can take months or even years.

If you’re up for it, here are seven rules for turning a wreck into des-res without making you bankrupt.

Location, location 

If you’re going to live in it yourself, the choice is easier, but if you’re renovating to sell immediately, do your homework.

‘Look at market towns and choose houses near good schools and stations.

This is where there’s demand from busy professionals who are working and want a finished house, ready to move into,’ says Tom Hudson, an agent at Middleton Advisors.

Conversion potential: This Victorian pile in Ilfracombe was once used as a nursing home, but could be converted into apartments or returned to a massive family mansion

Is your plan realistic?

When you have your eye on a property, instruct a structural surveyor, architect and quantity surveyor to look over your ideas.

They will require up to £2,000 initial fees, but will be able to tell you whether your plans are realistic, and may suggest alternatives that could save you money or make the finished home more valuable.

Keep an eye on that budget

If the house you’re buying is in such poor condition that it’s uninhabitable, you may not be able to get a mortgage, so must have the budget for the buying and renovation costs.

If your purchase is in better condition, but needs modernisation, the lender may keep some of the mortgage until you have completed part of the work.

‘The biggest problem is people forgetting that building costs can rise. They get too emotionally involved and end up throwing money at a problem,’ says Alex Newall, managing director of estate agency Barnes Private Office.

First check the council’s rules

‘If a buyer hasn’t researched with the council what can be done before they buy, they can find themselves with a much more complicated project than they anticipated,’ cautions Hugh Blake, of Carter Jonas.

It is wise to be wary when renovating listed buildings, as there are often restrictions on what sort of modernisation is possible.

They also typically require expensive materials, which help to recreate the original appearance.

Upgrade needed: Five-bedroom houses in Cheam typically fetch £1.5 million, but the selling agent admits this one needs ‘refurbishment throughout’. The back garden stretches to 150ft

Be cash-ready at auctions

Auction or estate agent? If the former, remember you usually must have funds to pay 10 per cent as soon as the hammer falls and then settle the amount.

‘Auctions sometimes offer bargains but competitive bidding can push up the cost,’ says Alex Newall.

Avoid cowboy workmen

You may know trusted local builders or use sites such as ratedpeople.com, myjobquote.co.uk, checka trade.com or plentific.com.

But however you find your plumbers, carpenters and bricklayers, make sure they’re listed on trustmark.org.uk.

Trustmark is not well known, but it’s a not-for-profit scheme endorsed by the Government and lists only those ‘approved’ for good trading practices, consumer service and competence.

Hire a manager for your project

If you have a full-time job or a family, this is money well spent.

The project manager deals with the contractors, orders materials, checks building regulations and planning consents are in order, and monitors the budget.

You can still get your hands dirty if you want, but first-time developers rarely have the skills and time to manage a full renovation.

 

 

source http://blog.evolutionproperties.co.uk/2017/07/30/the-seven-rules-of-buying-a-doo-er-upper-home-renovating-a-property-can-be-a-challenge-but-if-you-get-it-right-youll-reap-the-rewards/

The 11 Most Highly Secured Places in the World That You Can’t Enter

There are many places on our planet that are really hard or even impossible to get to. As a rule, these places are the most intriguing.

Bright Side collected 11 secret places around the world that are impossible to enter.

11. Secret Mormon Base, Utah, USA

Deep under Granite Rock, there is a depository built by the Mormons. By hearsay, they store their precious relics there. Only the highest members of their church can enter this place that is resistant even to a nuclear explosion.

10. Global Seed Vault, Svalbard, Norway

Svalbard Global Seed Vault opened in 2008 on the island of Spitzbergen. 250 million seed samples are stored there. It was created so that people can restore any plant. The island is a perfect place for storing seeds because there is practically no seismic activity and it is high above sea level.

9. Niihau Island, Hawaii, USA

Hawaii is a beach paradise. However, this little island is impossible to enter. It was sold to a plant-owner family in 1863 and closed in 1915. It is still a guarded place.

8. HavenCo, Sealand

The data center was opened in 2000 in Sealand. Its owner, HavenCo, thought this was how they could get around a British law. It closed in 2008 but was opened again in 2013.

7. "Pionen" Bunker, Stockholm, Sweden

The data centers of Bahnhof are situated in a cave 100 feet underground. This bunker was built in 1943 as a fallout shelter. There are live plants, artificial waterfalls, and a huge aquarium inside. This is how the company creates a nice atmosphere for its employees.

6. ADX Florence Prison, Colorado, USA

The nickname of this prison is "Alcatraz of the Rockies." The cells there are made of stone, and even the bunk beds and sinks are made of concrete. There are laser traps everywhere inside, and the doors are controlled remotely. All the security officers of this prison can shoot to kill if they suspect an escape.

5. RAF Menwith Hill Base, Yorkshire, Great Britain

This place was built in 1954 for catching signals during the Cold War. It is unknown what is going on there now, but this is the biggest storage of intelligence data in the world.

4. "Greenbrier" Resort, Virginia, USA

It seems impossible to see a resort in such a list. In fact, this place is the most secure resortin the world, accessible only to US government agents. There is also a fallout shelter here.

3. Vatican Secret Archives

This is considered to be the most secret library in the world. All the documents of the Popes have been stored here since the VII century. Only a research officer can enter the archives with special permission, which is extremely difficult to obtain.

2. Bold Lane Car Park, Derbyshire, Great Britain

This car park is one of the safest places in the world. Drivers get special barcode-tickets that are synchronized with their parking space. Under each car is a movement sensor that runs the alarm in case someone moves the car without permission. There are 190 surveillance cameras in the facility.

1. Area 51, Nevada, USA

Area 51 is a special facility for experimental flight vehicle construction. It is impossible to approach the base from the ground or air. It means that no flight can be performed above this territory. The existence of this place was revealed reluctantly, which gave birth to many conspiracy theories.

source http://blog.evolutionproperties.co.uk/2017/07/30/820/

Can you spot it!?

Now that would freak you out a bit!!!

source http://blog.evolutionproperties.co.uk/2017/07/30/can-you-spot-it/

House price confidence rebounds in June

The latest House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit has revealed that, across the UK, households perceived that the value of their home rose over the last month.

According to the analysis, a score of 50 equates to no change with any reading above 50 indicating rising prices, and any reading under 50 indicating falling prices. The higher the figure, the stronger the increase

Some 17% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 8.9% said that prices had fallen. This resulted in an HPSI reading of 54.1.

July’s reading was the twelfth consecutive month that the index has been in positive territory, following the post-referendum low a year ago in July 2016. It also marks a reversal of three successive months in which household sentiment, while remaining positive, weakened.

However, the index remains well below its previous peak of 63.2 achieved in May 2014.

Any figure over 50 indicates that prices are rising, and the higher the figure, the stronger the increase. Any figure below 50 indicates that prices are falling.

Households in ten of the 11 regions covered by the index perceived that the value of their property rose over the past month, with households in the North West the exception.

Households in London and the East of England (57.7) reported the biggest rise over the course of the month, followed by these in the South East (56.9) and the South West (55.1).

Since the inception of the HPSI, the index has been a clear lead indicator for house price trends, moving ahead of mainstream house price indices. This confirms the advantage of an opinion‐based survey which provides a current view on household sentiment, rather than historic evidence from transactions or mortgage market evidence.

The future HPSI, which measures what households think will happen to the value of their property over the next year, rose slightly to 62.0 in July’s survey, up from 61.3 in June.

As with the current HPSI readings, there are quite large regional variations in the data.

Households in the London (68.7) are the most confident about future price rises, followed by those in the South East (67.2) and the West Midlands (64.8).

There was a big rise in sentiment among households in the South West (61.6 from 52.8) and in Scotland (62.1 from 53.8) in July compared with the previous month.

Looking at households by tenure, mortgage borrowers were the most confident that prices would rise (64.4), followed by those renting from a private landlord (62.8) and those who own their home outright (61.0).

Oliver Knight, an Associate in Knight Frank’s Residential Research team, said: “While UK house price sentiment ticked up slightly in July it remains subdued in comparison to longer term trends. Households still report that values are increasing, but at a more modest pace than before the EU Referendum, which remains consistent with wider housing market indicators.

Rising sentiment in July suggests that any uncertainty surrounding the recent General Election result, and the start of Brexit negotiations in June which could have weighed on pricing, has been offset by a lack of supply of housing for sale and the low interest rate, low mortgage rate environment which continues to underpin pricing across much of the UK.”

Tim Moore, senior economist at IHS Markit, said: “UK households continue to anticipate property price gains over the coming 12 months, especially those living in London and the South East. The latest survey signals a rebound in confidence for the first time in three months, but looking at the overall picture reveals that house price sentiment has shifted down a gear this summer.

Household expectations for property price rises have eased to levels last seen in mid-2013, against a backdrop of weak pay growth, affordability constraints and squeezed consumer budgets. There are also signs that Brexit-related uncertainty and the fiscal squeeze on buy-to-let continue to weigh on sentiment.

While households are expecting the soft patch to persist in the near-term, overall levels of confidence are slightly above the trend seen since the survey began in 2009.

The resilient picture relative to longer-term patterns is likely helped by the ultra-low mortgage rate environment, improved credit availability and an entrenched shortage of supply across large parts of the country.”

source http://blog.evolutionproperties.co.uk/2017/07/30/house-price-confidence-rebounds-in-june/

Landlords adapt to new market as sentiments shift

Kent Reliance today released its Buy to Let Britain report, showing the 'shifting sentiment' in the market in response to the new tax landscape for landlords.

In a survey of 754 landlords, run in association with BDRC Continental in the first quarter of 2017, 41% were positive over the prospects of their portfolios, slightly down from 44% in the previous quarter. Those with a positive outlook still outnumber those with negative expectations, but it is a long way indeed from the 67% of landlords who were confident three years ago. In the first three months of 2017, 10% of landlords added to their portfolios, only slightly outnumbering the 8% who reduced their holdings. However, over the next three months, 19% of landlords expect to reduce their portfolios, compared to 13% increasing.

Rather than a mass exodus from the market, the shifting sentiment reflects how the reality of higher tax and running costs will undermine the supply of new rental properties. In fact, there may be some consolidation in the sector as small-scale speculators and amateur landlords leave the market as a response to tax changes affecting higher rate tax payers. This change in dynamic presents an opportunity for accelerating the professionalisation of the sector, both in terms of the size and scale of landlords, and the service many provide to their tenants.

On the demand side, the tenant population is growing, but it is no longer doing so at the speed of recent years. While 27% of landlords saw tenant demand increase in the last quarter, more than saw it decrease, this was down from 39% a year ago.

Andy Golding, Chief Executive Officer, OneSavings Bank, said:

"Changes have come thick and fast for landlords since our last edition. First, the housing market came to the fore in the government’s housing white paper in February, which recognised the need to stimulate housebuilding and loosen restrictive planning rules. This was followed by a raft of pledges in each of the political parties’ manifestos ahead of the recent general election. The Conservatives promised to build 1.5 million homes by the end of 2022 while Labour committed to build 100,000 council and housing association homes a year. The failure of either party to secure a majority questions whether these promises will be met with action, however we have at least seen a firm recognition of the scale of the housing crisis.

"While this will hopefully shape the wider housing market in the longer term, landlords have been getting to grips with more immediate changes. This April saw changes to tax treatment of BTL mortgages introduced, raising costs for many landlords. The Prudential Regulation Authority (PRA) first round of changes to mortgage underwriting took effect from January, with the second; altering the way larger portfolio landlords are treated, set to come in to play in October. Against this backdrop, costs continue to rise, even before we factor in higher tax bills for many landlords. In the last report from our Buy to Let Britain Research Series showed that the annual running costs of a buy to let property have reached £3,632 – up a quarter since 2007.

"These factors are clearly beginning to drag on the growth of the sector; landlords have had to navigate the changing tides of taxation and regulation, at the same time as seeing the cost of doing business increase. We look at how they are doing so, how returns and rents are performing, and whether demand for, and access to, mortgage finance has been hit."

source http://blog.evolutionproperties.co.uk/2017/07/30/landlords-adapt-to-new-market-as-sentiments-shift/

10 Most Heavily Guarded Homes On Earth

Quite impressive security!

source http://blog.evolutionproperties.co.uk/2017/07/27/10-most-heavily-guarded-homes-on-earth/

Completions, Completions, Completions!!

WOW! More Champagne already bought as we have handed out so many bottles lately to lucky new home owners! It has definitely been our busiest month ever and August is going to be the same if not better!

Huge congratulations to all the new owners and don't forget, if you know anyone thinking of selling or letting out a property you can earn amazing shopping vouchers!

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients.

Landlords, dont forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/07/26/completions-completions-completions/

How can you buy for less without settling for less space?

According to Stacks Property Search, an era of austerity has led to many homeowners looking to their property to provide finance for school fees, setting their children up with a deposit for a home, retiring, divorcing, or any other of a range of the countless pressing needs for cash.

Nick Wooldridge of Stacks Property Search offers the following advice and says: "Releasing capital doesn't have to involve downsizing....

There are ways of maintaining or even gaining space and freeing up equity at the same time. This will invariably involve some compromise, but select carefully and you'll be sitting pretty.

Move within the same area to a less desirable village

Some villages are considered the crème de la crème – great school, good community, village shop, perfect pub, chocolate-box-pretty. Although these are all arguably 'nice to have', you may not necessarily need to tick all these boxes, and moving from an area's 'best' village to a not quite so fashionable spot as little as a couple of miles away could save you as much as 20% while leaving you within reach of all your favourite friends and places.

Move further away from commuting links

Reduced commuting time is extremely valuable. So if you don't need to commute, or you're prepared to set the alarm 30 minutes earlier, you can make dramatic savings. Property in Haslemere, with its mainline station, costs 30% more than in nearby Midhurst where residents will have to make a 15 minute drive to Haslemere station.

Escape the school catchment area…

We have short memories. One of the reasons you chose a particular area may have been because of the schools, but if your children are already safely established, or you're out of the school system altogether, you're living in a premium area and can save cash simply by moving to the other side of the catchment area line.

Swap character for non-character

With the exception of new developments, and contemporary architect statements, non-period property is generally significantly cheaper than period property, often by as much as 20% for the same amount of space. “Aesthetically, home buyers who are used to living in quirky properties built in local materials may struggle with reconstituted stone and less features; but there can be advantages. Houses often work well ergonomically, proportions and light can be better; and maintenance costs can be lower.

Swap land for accommodation

If you've been enjoying a huge garden or a patch of your own land, downsizing the outside space but retaining the internal accommodation can free up significant sums of cash. Swapping a four bedroom house in Monmouthshire with half an acre of garden and two acres of land for the same house and location but with no land and a quarter of an acre of garden will put £150,000 in your pocket.

Cross the border…

By crossing a county border, usually putting a few extra miles between you and London, you can free up significant capital. Gloucestershire to Warwickshire; Oxfordshire to Gloucestershire; Dorset to Somerset; Leicestershire to Nottinghamshire; or Berkshire to Oxfordshire can give you the same bricks for around 30% less buck. If you already live near a border, the move can be made with not too much disruption to lifestyle, apart from having to deal with the reduced status of your new postcode.

Some of this advice flies in the face of the usual 'location, location, location' mantra. But property isn't all about investment. If you need the space, but need to liquidise some cash, something's got to give. Living in a house that's too small for you simply to maximise your capital growth potential doesn't, and shouldn't, make sense.

But if you are going to move to a less prime area, buy sensibly. If you can pick a location where you can see that the seeds of improvement have been sown, and a property that has the potential for adding value, you will be sitting pretty.

source http://blog.evolutionproperties.co.uk/2017/07/23/how-can-you-buy-for-less-without-settling-for-less-space/

Property sellers holiday checklist

A getaway with the family may be just what you need if you have been trying to sell your home lately. This shouldn't get in the way of selling your home if you remember that along with the 'tickets, money, passport' checklist, you don't forget to add your estate agent to any pre-packing preparations.

In all the excitement of a long-awaited break, it may be easy to overlook a few important tasks as holiday mode takes over - and may even hinder an eventual sale.

Su Snaith, Head of Estate Agency for Harrison Murray and the Nottingham Estate Agency, has this to say: "When the weather is nice, people are more inclined to view houses, and a property always looks better on a sunny day. So when sellers go away, they should ensure that their house is still looking its best. While vendors enjoy a well-earned break, their estate agent will continue to work hard on their behalf.

There are a few steps they can take to ensure that there are no missed opportunities when it comes to viewings in their absence.

Unfortunately, it is a situation estate agents experience time and time again - the seller goes on holiday and forgets to leave a key with the agent for them to show potential buyers the property when they are away.

This is easily resolved. If you are planning a break this summer, we would advise letting your agent know, and put together a simple checklist so that you don't miss out on that potential sale."

Don't forget to:

- Inform your estate agent that you are going away - and leave them a key. There is nothing worse than having to turn away interested viewers because the agent has no access to your home.

- Ensure the house is clean and tidy before you leave. Place a couple of air fresheners around the property to compensate for having to keep windows closed and locked.

- Check for anything that might go off and smell - bread, fruit in a bowl and even flowers in a vase - and throw them away.

- Empty household rubbish bins, make sure all work surfaces are clean and tidy, clear out magazine racks, ensure that draining boards and sinks are clear of washing up and the dishwasher is clear of dirty crockery.

- Cut the lawn prior to your departure and, if possible, arrange for someone to water your garden if the weather gets too warm.

- Ask a neighbour to pull your bins back from the kerb to a suitable place once emptied if refuse collection is due while you are away.

- Ensure that, along with the key, you give your estate agent the code to your property's alarm.

- Make sure your agent also has a contact number in case they need to call you about that all-important offer - even if you are sunning yourself abroad.

source http://blog.evolutionproperties.co.uk/2017/07/23/property-sellers-holiday-checklist/

Should you buy a property when on holiday?

It's that time of year again when thousands of families flee the UK's 'summer' and set off in search of warmer weather, a break from the office and perhaps, for some, a new home.

The Overseas Guides Company offer ten reasons why it can make good sense to buy a holiday home when you're there. They're keen to point out that theynormally advise against buying a home abroad without a huge amount of planning, but there is a place for spontaneity in every life too!

With British families heading off to the sunshine over the next couple of months, many will idly glance into foreign estate agent windows and find themselves wondering “what if?” and then “why not?” Some will return to the UK packing the deeds of a new home into their suitcase. Is that wise?

As one the UK's foremost campaigners for buying safely in the sun, you might be expecting Property Guides to warn you off buying a holiday home when you're actually on holiday. And indeed there are many reasons not to buy a property when you're in that relaxed mode, far from home, feeling warm and relaxed (and you've possibly had an extra glass of wine with your lunch). And of course, a lot of people have made money from selling timeshares to people on the seashore.

However, there are also perfectly sensible reasons for buying a holiday home when you're actually on holiday. Here are ten of them:

The “sniff test”

Multi-millionaire property investor James Caan refers to the “sniff test” with a new location, you can see for yourself that it has an intrinsic appeal without needing to listen to any salesman's patter. So why go all the way home, do more research and find yet more places? You could spend many months researching investment locations but if you have to persuade yourself about it it's probably wrong. Gut feeling is also an investment tool too.

If you love it, why wouldn't anyone else? If you are so wowed by a location that you want to buy there, then people like you will probably feel the same when you want to sell. Investors talk a lot about exit strategy, and that's yours right there.

The price of package holidays. Package holiday prices are up 6% across the board this summer, and at Thomas Cook by 9%. You can expect to pay around £1,500 to £4,000 for a family holiday in the sun, while many apartments even on the Mediterranean can be found for £40,000. And you'll get more than 10 holidays out of it.

You CAN have your cake and eat it

When you buy a holiday home you get holidays every summer but keep the home too, for ever. This is what Britain's Foreign Secretary would call having your cake and eating it, or which the Portuguese would call having the sun shining on the threshing floor while it rains on the turnip field.

Cheap mortgages

With interest rates still at record lows, mortgages in all the favourite destinations are at rock bottom rates. They probably won't be by next summer.

Hidden costs

You have already saved the price of going out to look at a location. Each subsequent viewing trip you make if you don't buy now will cost hundreds of pounds in flights, hotels and hire cars before you've even started. Why go all the way home, do more research and find yet more confusing options?

You're buying an appreciating asset (probably)

While there can be a fashion element to resorts, over the long term a prime location in an established resort will nearly always be a good investment. Unlike student property, local neighbourhoods or blocks of flats, there is a whole tourist industry based on keeping your location attractive and appealing – usually well-funded by government and a powerful tourism lobby.

Historically, holiday lets are profitable.

If it's raining and you're playing Monopoly in your holiday apartment, you probably won't lose from putting homes and hotels on your acquisition.

If not now, when?

Let's not pretend that this is really a spontaneous decision. You've always known you want a holiday home in the sun, but the processes seem so complicated, and it's hot, and you're busy… so nothing happens, for year after year. Now you're 90% of the way there, and you have the chance to shock yourself out of your inertia.

First impressions are deep and instinctive

Humans are emotional beings with a lot going on at a subconscious and instinctive level. Did you know that when you first kiss someone you are actually reading their genetic code? Or that when apparently random human friendships are analysed, statistically it is highly likely that you have a family history over generations? If the fates decide that you love a holiday location at first sight, the chances are that you'll love it forever.

Better exchange rate

Before you sign on the dotted line, remember to calculate the exchange rate. The good news is that you will get a much better rate than you are getting for your holiday cash! Call a currency specialist like Smart Currency Exchange to discuss your needs, on +44 207 898 0541 from your holiday location abroad, or on 0808 163 0102 if in the UK. If you are in Spain, pop into one of their offices in the Costa Blanca or Costa del Sol.

For all the good reasons to buy abroad, you should of course be careful.

Do follow these three simple procedures:

- Ensure you are dealing with a reputable estate agent. Proper shop premises are generally safer than someone you meet on the promenade!

-Calculate the cost of repairs into your costs. Around 1.5% of the property value per year is a good rule of thumb, or around €1,875 for €125,000 property.

- Speak to a good lawyer who speaks English and specialises in property. They should be independent of the estate agent or developer.

source http://blog.evolutionproperties.co.uk/2017/07/22/should-you-buy-a-property-when-on-holiday/

Bitter Sweet!

Well, what a bitter sweet day!

Really pleased that we get to help at least 2 families move to amazing new homes but really sad as I personally lose such great neighbours! 8 and a half years of fun, superb bike rides, kids playing out and growing up together and it all comes to an end today.

I wish Harriet and Ray and all the boys all the best on their amazing onward journey. Its been a pleasure having you opposite and look forward to seeing you again very soon!!!

Thank you guys!!!

source http://blog.evolutionproperties.co.uk/2017/07/21/bitter-sweet/

Thank you Cliff!

Another great giveaway this week! One of our longest standing clients referred a family member to us, we listed the property for sale and Cliff chose his vouchers! It really is that easy, £100 to spend where you want!

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients.

Landlords, dont forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/07/16/thank-you-cliff/

Top tips to help you sell your house this summer

The summer can be a tricky time to sell a property, especially if it’s a family one, due to school holidays amongst other things, so NAEA Propertymark offers this advice for sellers putting their property on the market during this time.

The latetest data shows that during the summer months the housing market tends to cool down, with the number of house hunters and properties available for sale dropping throughout July and August. While getting ready to put your home on the market, there are a few simple things you can do to maximise the saleability of your property.

Katie Griffin, President, NAEA Propertymark says: “If you need to put your home on the market during the summer, it’s important to understand your target market and who will be the most interested in buying your home before you do so. Your local NAEA

Propertymark estate agent will be able to guide you in the right direction if you’re unsure and help you put your home on the market at the right time to increase your chances of a speedy sale.”

Tidy up the exterior

First impressions are key and they really impact a buyer’s decision, so it’s important to make sure the property looks well maintained and cared for from the outside, with windows and walls freshly washed to remove any dirt. For example, a front door can say a lot about the rest of your home for buyers viewing it for the first time, so a lick of paint or a quick wash down can help improve the overall look and feel of your property.

Neutral décor

Potential house buyers will have varied tastes in décor and when they’re looking around your home they have to be able to imagine themselves living there. Anything too over personalised can be a turn off, so keeping colours neutral will make the property more appealing.

Prune your garden

A well looked after garden can give your home the wow-factor, especially during the summer months when many beautiful flowers and plants are in season. For starters, it’s important to make sure your garden is tidied of any litter, the lawn is mowed, weeds are removed and overgrown trees are cut back and then if you have the time, try potting some bright coloured plants to make the space more attractive.

Kitchen makeover

Giving your kitchen a quick freshen up can go a long way. By giving the cabinets a quick lick of paint, or replacing the doors and handles, the room will instantly become more attractive to potential buyers.

Let air and light in

Rooms that smell musty are a huge turn off for buyers – it’s important to open up windows well in advance of any viewings, particularly those in rooms that are rarely used. It’s crucial to maintain a good level of lighting in your home to make the space feel inviting – the summer is the best time for natural light, so make sure all blinds and curtains are wide open.

source http://blog.evolutionproperties.co.uk/2017/07/13/top-tips-to-help-you-sell-your-house-this-summer/

Prospective buyers 'treading on eggshells' as housing stock hits new low

Prospective buyers 'treading on eggshells' as housing stock hits new low

New data from the Royal Institution of Chartered Surveyors has painted a bleak picture of the current state of the UK housing market, with house price inflation dropping further in June and "little encouragement" for sales activity.

According to RICS, at a national level, 44% of contributors identified domestic political uncertainty as the biggest factor explaining the current state of the market. This compares to 27% who highlighted Brexit as the most important factor influencing the picture. In London, the changes in Stamp Duty were also citied as contributing to the lethargy.

Looking at price inflation, in June, 7% of surveyors across the UK saw a rise rather than fall in prices at the headline level. This has slipped from a net balance of +17% in May, and is the lowest reading since July 2016.

In Central London the pace of decline in house price inflation continues, with 45% more respondents seeing a decline in prices over the month while the South East and East Anglia are showing a flatter trend. By way of contrast, in Northern Ireland 41% more surveyors saw a rise in prices rather than a fall in June and in Wales 38% more respondents saw a rise rather than fall in prices over the month. The West Midlands and the North West are also regions where prices continue to rise and reported net balances of +33% and +28% respectively.

Respondents once again saw a decline in newly agreed sales in June, with 5% more respondents seeing a fall in sales over the month. This decline is the fourth consecutive negative reading and reflects both the lack of stock coming on to the market and a more cautious stance from buyers over recent months.

Newly agreed sales are predicted to remain broadly stable over the next three months but the twelve month sales expectations indicator reading, while still pointing to an increase in activity, has slipped to its lowest level since the immediate aftermath of the referendum.

Significantly for future activity, new instructions fell again and for the sixteenth month in a row, with 19% more respondents seeing a fall rather than rise in property coming on to the market.  Against this backdrop, average stock levels have slipped to a new low.

Simon Rubinsohn, RICS Chief Economist, suggested that the latest results demonstrate the danger, however tempting, of talking about a single housing market across the country.

He said: "RICS indicators particularly regarding the price trend are pointing towards an increasingly divergent picture. High end prime properties may be seeing prices slipping back but, for good or ill, prices are continuing to move higher in many other segments of the market. Indeed, the disaggregated data suggests that this will continue to be the case over the coming months.

Perhaps not surprisingly in the current environment, the term ‘uncertainty’ is featuring more heavily in the feedback we are receiving from professionals working in the sector. This seems to be exerting itself on transaction levels which are flatlining and may continue to do so for a while particularly given ongoing challenge presented by the low level of stock on the market.”

Andy Sommerville, Director at Search Acumen, said: “Prospective buyers are treading on eggshells, but four straight months of decline in newly agreed sales doesn’t reflect a negative sentiment in the market. People want to buy. We just have a chronic shortage of housing and the government is failing to provide the antidote.

New lows of stock and flat sales trends suggest our market is nearly running on empty as the political rollercoaster rumbles deep into 2017. Once again, we call on the government to stop talking, and start building.

Fundamentally, the housing market is not broken - it just needs action rather than words. We must provide our housebuilders with the resource required to revive the market, finally addressing the deepening crevasse between supply and demand, offering a glimmer of opportunity to our first time buyers.”

Brian Murphy, Head of Lending at Mortgage Advice Bureau, had this to say: "Whilst some of the terminology in the report would appear at first glance perhaps a little negative, the reality is that, in many areas, the report states that house price growth remains in positive territory, albeit perhaps at more subdued levels than previously. But that’s not the same as house prices dropping in real terms – price growth is still price growth, however you look at it.

Of course, the ongoing lack of supply seen in some areas is going to impact on the amount of transactions, as less stock available equates to less choice for buyers in practical terms, who may now just take a little longer to find what they are looking for. But that very dynamic is what’s likely to keep prices at a steady momentum for the foreseeable future. And let’s face it; a market which remains at its current equilibrium is a far more healthy environment than another house price bubble or market price correction, neither of which would be welcomed by many."

source http://blog.evolutionproperties.co.uk/2017/07/13/prospective-buyers-treading-on-eggshells-as-housing-stock-hits-new-low/

Top tips for DIY landlords

Top tips for DIY landlords

Top tips for DIY landlords

By Warren Lewis 13th July 2017

Landlords

According to property consultancy, Galbraith, demand for good quality rental homes continues to rise across all regions in Scotland.

With the private rental sector still offering a sound investment opportunity and high competition amongst tenants pushing rental prices up the firm is urging current and prospective landlords to consider the following top tips to ensure a successful tenancy.

Choosing a reputable agent that will help with tenant selection and missed payments is sometimes a vital service for landlords. However, for those who are considering becoming a DIY landlord, Galbraith offers a helpful checklist:

1. Vet prospective tenants thoroughly, it’s important to check bank, employer and previous landlord references. Generally, as a rule of thumb, a tenant’s annual income should be at least 30 times the monthly property rent.

2. Always take a deposit and perhaps more importantly always protect it through one of the Scottish deposit protection schemes. If the deposit isn’t protected with a scheme as the landlord you can be made to pay the tenant three times the deposit amount back. Most tenants expect to have to pay a deposit of at least one month’s rent so be wary of those who try to wriggle out of this.

3. Schedule regular property checks don’t just leave tenants to their own devices after moving in. Ensure that the first inspection is within three months of the move in date and at least annually thereafter. If there is a breach of the lease act on this immediately, don’t leave it to perpetuate or get worse.

4. Alert tenants to rent arrears straight away as acting promptly will prevent the situation becoming difficult. Keep a copy of all paper work and emails sent to tenants as well as this will make it easier to serve a ‘Notice to Quit’ to tenants if the contract is consistently breached.

5. Keep up-to-date with legislation. The new Scottish Private Residential Tenancy, (SPRT) is expected to be introduced at the end of 2017 and means that the grounds for repossession becomes more restricted; all the more reason to ensure you find suitable tenants from the outset.

As the lettings sector becomes more heavily regulated Galbraith fully expect to see a rise in the number of landlords seeking professional advice and assistance.

Bob Cherry, head of lettings for Galbraith, said: “We are often approached by landlords for advice or assistance once a problem has already developed. Seeking help early on can avoid costly mistakes. The experienced lettings team can also advise landlords on preparing property to let and meeting all the current compliance obligations as well as using our extensive prospective tenant database to match the right people to the right property.”

source http://blog.evolutionproperties.co.uk/2017/07/13/top-tips-for-diy-landlords/

Cluttered??

“Honey, I found the ladder! It was in the fitness studio that we also use as a utility room and study where we keep the musical instruments.”

source http://blog.evolutionproperties.co.uk/2017/07/13/cluttered/

Oh wow!!!

These are just mind blowing!!!

 

 

source http://blog.evolutionproperties.co.uk/2017/07/10/oh-wow/

Another completion!

So we had another completion on Friday, very happy couple and an amazing home that they now get to enjoy too! Congratulations to them both and enjoy the Champagne!

Do you want £100 in shopping vouchers?

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients. We will start posting on here, clients that have received these awards so get referring!

Landlords, dont forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/07/10/another-completion/

Do you want £100 in shopping vouchers?

It really is very easy to get them! If you know anyone that is looking to sell or rent their home, just contact us and pass their details to one of our team. We will then contact them, arrange a visit and if the property comes on the market then you get to choose which shop you would like your £100 voucher for! We have given out so many of these this year and recognise that recommendations in business are one of the most common and important ways of securing new clients. We will start posting on here, clients that have received these awards so get referring!

Well done Ray and thank you for the recommendation! We believe that everyone knows someone that is either a landlord or is looking to move, do you?

Landlords, dont forget, if you're not happy with the current level of service that you are receiving and the fees that you are being charged, our fully managed service starts at just 2%+vat and we arrange the transfer of the tenancy to Evolution absolutely free of charge, AND, we will also give you the £100 voucher for each home!

Don't delay, get referring and contact us today!

 

 

Properties must be within easy reach of our office and instructed on a sole agency basis - contact us today to check eligibility.

source http://blog.evolutionproperties.co.uk/2017/07/09/do-you-want-100-in-shopping-vouchers/

Rise of the robots: Bookshelves make way for home gadgets

New research by E.ON has found that 73% of people have adopted smarter technologies in their homes, ditching traditional furnishings and items such as bookshelves in favour of smart hubs and solar panels.

When asked which everyday items are becoming obsolete due to smarter solutions, around half of respondents said CD/DVD stands (52%) and photo albums (48%), a third said bookshelves (34%) and a quarter said cables and wires (26%).

The research with 2,000 homeowners has been conducted to investigate the nation’s attitudes to the smart solutions available today and in the future. It reveals that the majority of people have already taken steps to make their homes smarter with a third (34%) planning further upgrades.

However, there’s still work to be done with more than a quarter (27%) of people yet to adopt smart technologies in their homes. In fact, one in five (21%) homeowners are uncomfortable with using smart technology.

Those who’ve already implemented technology upgrades cited saving money (59%), becoming more energy efficient (55%) and saving time (38%) among their key drivers. Almost half (48%) said they’d made their homes smarter to make their lives easier, while 17% simply liked having the latest gadgets, 13% wanted their home to be more fun, and 6% desired better looking technology.

When asked about the types of smart technologies people would want in their homes by 2020, four in ten (44%) said they’d like solar panels and/or an electricity battery storage system, more than a third (35%) would like smart lighting, a fifth (20%) wanted a voice controlled smart hub and 13% would like a charging point for an electric car.

But when it comes to solar energy, a number of myths persist with 17% of those questioned mistakenly thinking that solar panels only generate electricity when it’s sunny and one in ten (11%) wrongly believing that solar panels don’t work in cold climates.

Of those surveyed, almost one in ten (9%) homeowners said they already have solar panels. Of these, more than three quarters (76%) said they’re saving money, almost two thirds (65%) said their home is more energy efficient, and almost a third (30%) said they’ve seen the value of their property increase – all as a result of having solar panels installed.

What’s more, four in ten (41%) of those asked said that having a solar panel and battery system would make a potential home more appealing to them if they were looking to buy.

Gavin Stokes, Head of Commercial Solutions at E.ON UK, said: “It’s really heartening that three quarters of households have already taken steps to make their homes smarter. But with a quarter of people saying they’re yet to take steps to make their homes more solutions-savvy, there’s still much we can do to help people realise the benefits a smarter lifestyle can bring. For example, we recently launched E.ON Solar and Storage – a solar and battery solution that’s available now for the four in ten people questioned who said they’d like to have this type of technology by 2020.

Many of the people we spoke to are already aware of the benefits solar and battery systems can bring – from saving money, to having a more energy efficient home, to making homes more appealing to buyers. We’re committed to bringing smarter solutions to market for our customers and we’d welcome anyone who’s interested in finding out more about E.ON Solar and Storage to visit our website and find out more and get detailed, personalised information for their home and their needs.”

source http://blog.evolutionproperties.co.uk/2017/07/06/rise-of-the-robots-bookshelves-make-way-for-home-gadgets/

Amazing homes!

This is well worth watching!!!

source http://blog.evolutionproperties.co.uk/2017/07/05/amazing-homes/

High living, low sales: Shard apartments still empty, five years on

When it opened the developers of the Shard boasted that it should only take “about 20 phone calls” to sell the 10 exclusive apartments near the top of the tower for up to £50m each.

Yet five years on from the Duke of York and the former prime minister of Qatar officially opening “Europe’s first vertical city” with a dazzling laser display on 5 July 2012, all 10 of the flats on the 53rd to 65th floors of the 72-storey building appear to remain unsold.

Brochures for the apartments, which include three two-storey duplex units, boasted that on a clear day residents should be able to see the sea and the grandstands at Ascot from their new perch in the centre of the capital.

The penthouse stands at 735ft, just below the entrance to the £30.95-a-time public viewing deck, which attracts up to 6,000 visitors a day. Even the lowest apartment, which it was hoped would sell for £30m, is higher than any home ever built in London.

But the brochures are no longer available and the tower’s developers and its Qatari owners are reluctant to speak about the residences, which they had boasted would be among the most luxurious in London. As well as the views and double-height entertaining space, potential residents were said to have the luxury of being able to order room service from the five-star Shangri-La hotel below, and call on its maids to turn down their beds. A “back stairs” service lift was shown in floorplans so meals and cleaners could be delivered directly to the apartments’ kitchens.

Baron Phillips, spokesman for Irvine Sellar, the recently deceased property visionary who led the development of the Shard, declined to comment about the unsold apartments. It was Phillips who told the media that several of the world’s super-rich had expressed interest in buying apartments years before the building was finished and said of selling them: “I should think about 20 phone calls should do it, don’t you?”

Sellar convinced Italian architect Renzo Piano to design the Shard over lunch in Berlin in 2000, with the first designs sketched on a menu. But the project nearly collapsed in the wake of the 2007-08 financial crisis before Qatar stepped in to buy 80% of the tower.

Representatives of Qatar Diar, the real estate arm of the gulf state’s sovereign wealth fund, did not respond to requests for comment. A spokeswoman for Real Estate Management, the property management firm appointed to oversee the day-to-day management of the Shard, said the apartments were still “completely empty shells”.

No apartment sales have been recorded by the Land Registry. Levels 53 to 65 and the apartments’ exclusive entrance on the ground floor were in December 2015 leased to LBQ Four, a Jersey-registered firm believed to be part of the London Bridge Quarter, the holding company that owns the Shard. The 250-year lease valued the 10 apartments at a total of £199,250,000.

Henry Pryor, a luxury property buying agent, said he was not surprised that the Shard’s owners had yet to sell any of the apartments as a sale of one apartment would set a publicly recorded price and make it harder to sell the other apartments for more if and when the London ultra-prime property market improves.

“If they could sell them for what they want for them they would have sold by now,” he said. “If they sell they will crystallise a price and that makes it very difficult for future sales because the benchmark has been set. That is one reason developers chuck in goodies [like cars or fine wine] to keep the apparent price up.”

Pryor said the Shard apartments have not been able to attract prices near the record £136m paid for a flat in the Candy brothers’ One Hyde Park for reasons that any avid watcher of TV property shows would know: “Location, location, location.”

“Kirstie and Phil tell us it every week, location, location, location. Rich people don’t want to shell out zillions living south of the river, it’s a shock enough living anywhere south of the [Hyde] park,” he said. “Nobody knows anyone who lives south of the river.”

The Shard has done better at letting the lower floors for offices, although many have gone to companies owned or partially owned by Qatar. But some whole floors are still to be let, including all 29,824 sq ft of the 12th floor.

The University of Warwick’s business school has rented level 17 and fitted it out with a lecture theatre with perhaps the best student view in the world.

source http://blog.evolutionproperties.co.uk/2017/07/05/high-living-low-sales-shard-apartments-still-empty-five-years-on/

Property developer calls for national tenant register to help landlords avoid ‘nightmare renters’

A property developer has urged the government to set up a national tenant register to help landlords avoid ‘nightmare’ residents.

Robert Evans, an entrepreneur with 30 years’ experience in property, said landlords should be able to access the register to see if prospective tenants have a history of rogue behaviour.

Mr Evans said the mandatory introduction of a national register could be used to identify renters who have committed vandalism or anti-social behaviour.

He said: “It’s absolutely right that tenants should be able to run a check on the landlord they’re planning to rent from, but in the same way, it has to be right that landlords get similar help to avoid the nightmare situation of having a tenant who either won’t pay or won’t leave.”

Mr Evans, who set Britain’s first fixed-fee management agency Property Wealth Management, added: “If there’s a robust system in place to identify problem people at the outset, one might argue that it could be a low-cost first step in referencing. If a prospective tenant is on that list, the landlord has the choice then of not proceeding further and avoiding the more costly formal reference process for a tenant who’s never going to be accepted.”

He added that the list would need to ensure tenants were not unfairly discriminated against, but that landlords need more support.

Mr Evans added: “The fact is, we hear many, many stories of problem tenants who are finally removed from one property only to surface a few days or weeks later in another property where the problems start all over again.”

source http://blog.evolutionproperties.co.uk/2017/07/04/property-developer-calls-for-national-tenant-register-to-help-landlords-avoid-nightmare-renters/

Homemovers unfazed by surprise hung Parliament result

A new survey of Jackson-Stops & Staff’s national network of 44 branches, has revealed that while the hung Parliament has injected an element of uncertainty into the housing market, activity remains buoyant.

The shock general election result has failed to deter buyers and sellers from entering the UK property market, according to a survey , two weeks on from the hung Parliament result.

While the hung Parliament has resulted in an element of uncertainty, a solid 55% of branches reported absolutely no change in the level of sales instructions in the two weeks after the result (12th – 26th June) compared to two weeks prior. Overall, sellers remain undeterred.

Some branches (7%) have actually seen an increase in the number of new instructions following the election result. Jackson-Stops & Staff’s London Residential Development team have even said that a hung Parliament could be more likely to result in a softer Brexit, which is considered by many as better for business than a harder Brexit.

Although some clients have discussed the election result in relation to the sale of their home with their branch, fewer than 30% of branches say a few sellers have held off marketing their property as a result, while a resounding 72% of branches say that buyers have shrugged their shoulders and are continuing with the process of buying.

The Winchester branch reported that for buyers with a long-term view, the election result was largely irrelevant. Chichester echoed this and found that clients are largely unfazed by the general election result. More branches say that the higher levels of stamp duty land tax on homes over £1 million is an inhibitor on their local market (82%) than political factors like Brexit and the election result.

Nick Leeming, Jackson-Stops & Staff’s Chairman, comments: “While the general election did not bring about the strong Government that either we or Mrs May had hoped for, our buyers and sellers have remained remarkably unfazed by this with most of our branches across the UK reporting that it’s business as usual.

Personal drivers such as the need for a larger home or a shift in lifestyle in a new location are driving decision making in the market – rather than political factors. Interestingly, stamp duty land tax on high value properties is a far greater threat to the property market, and we therefore hope that this is a key consideration for the new housing minister as he turns his attention to improving fluidity and the level of supply in the UK housing market.”

source http://blog.evolutionproperties.co.uk/2017/07/02/homemovers-unfazed-by-surprise-hung-parliament-result/

Do ‘no deposit’ insurance products benefit the PRS?

With tenancy deposits coming under fire recently, Eddie Hooker, CEO of Hamilton Fraser, parent company to mydeposits, looks at whether alternative insurance products, offering a deposit free solution, protect both landlords and tenants, and if they improve the Private Rented Sector.

To address these questions and many more potential issues, mydeposits has today released a 14-page Whitepaper that reviews how these insurance products operate versus traditional cash tenancy deposits.

When paying a deposit at the beginning of a tenancy, a tenant is presented with a fairly substantial cost - the equivalent of six weeks’ or two month’s rent. According to Eddie Hooker, a cheaper alternative would, of course, seem very appealing to many tenants.

Eddie had this to say: “There are now several no deposit insurance products that offer a solution whereby a tenant can rent a property without having to put down a deposit. Despite the initial attraction, I have been unable to find clear answers to some pertinent questions. Landlords and tenants entering into such contracts should do so with their eyes wide open.

Tenancy Deposit Protection was introduced as a legal requirement in 2007 following government statistics which suggested that 20% of deposits were being unfairly withheld from tenants. Some ten years later, over four million individual deposits are protected by tenancy deposit protection schemes and dispute levels have fallen to less than 2% of all ending tenancies.

The no deposit products use the 2% dispute levels as proof that they can keep their claims and premiums low, but they are misusing the statistics. In fact, more than 40% of deposits are returned to the tenant with an agreed deduction. That means at least 40% of landlords will have to make a claim on their insurance to cover costs. Processing claims costs money and claim costs get added to the overall premium.

Like most insurance products, the no deposit options reserve the right to subrogate their losses from the party responsible, so does that mean the tenant will be pursued for a claim that they may or may not be responsible for? Will tenants start to receive red letters, black lists and court judgements for missing payments?”

The Whitepaper also reviews how tenancy deposit protection has boosted transparency in the sector.

Eddie continues: “The Prescribed Information requirements and formal dispute resolution service are set in stone by legislation and are monitored by government set timescales. In complex deposit disputes which require an understanding of the Housing Law and Consumer and Agency Law, would landlords and tenants prefer an impartial adjudicator employed by a deposit scheme reviewing their case, or an insurance claims handling process? Disputes raised through deposit protection schemes are free and the process must be fair for both parties. The no deposit insurance products remove these safeguards leaving landlords and tenants to rely on the insurer’s terms and conditions.”

In the light of the Queen’s Speech, where it was announced that deposits will be capped at no more than one month’s rent, Eddie says: “Following this news, I question whether the no deposit products will be as interesting to tenants as they may have been. These products command a premium the equivalent to one weeks’ rent. This will now equate to 20-25% of a deposit and is non-refundable, whilst also leaving a tenant liable for reimbursing the insurer for any claims they pay out. I struggle to see how this is a viable option for the hardest pressed tenants and is not just another fee they will have to pay.”

Eddie concludes by reiterating that he can see the merits of an alternative to deposits, but believes the current crop fall foul of the most basic protection that tenancy deposit protection schemes were created to administer in the first place. “The Whitepaper goes some way in voicing my concerns. I do welcome change for the PRS and new products that make people’s lives easier. However, the sector needs absolute transparency and fairness, particularly when tenancy deposit protection has been so successful in raising standards.”

source http://blog.evolutionproperties.co.uk/2017/07/02/do-no-deposit-insurance-products-benefit-the-prs/