Corona Fallout: Renters admit they’re less likely to own a home now

By Graham Norwood

Source: https://brookebot.com/carolinaup
statepmre/files/2017/09/01.jpg

Research by insurance firm Aviva suggests private tenants are now more pessimistic about being able to buy their own home.

In December, six months ago, the firm found that 68 per cent of non homeowners hoped to buy a property in future: now that figures is just 52 per cent. 

In line with this, the number of under-25s hoping to get on the property ladder in the next five years has decreased from 35 per cent in December to 27 per cent today. 

The number of households - renting and owning - looking to trade up to a bigger property has also fallen from 10 to eight per cent, suggesting the current housing market is causing people to put plans on hold.

The Aviva study also reveals that lockdown has accelerated the way people use online services and video technology. 

Prior to the Covid-19 outbreak, 30 per cent of UK residents aged 55+ used video calls. This has now risen to 38 per cent of this age group.

The number of internet-enabled devices per UK household has increased from 10.3 in December to 11.6 now.

An Aviva spokesman says: “As the lockdown begins to ease, its legacy is likely to continue as new behaviours become the norm. 

If people make significant changes at home - whether this means buying new technology, making substantial property improvements, or even changing one’s living arrangements – it’s important that people keep their home insurer informed so they have the appropriate cover in place.”

https://www.lettingagenttoday.co.uk/breaking-news/2020/5/corona-fallout-renters-admit-theyre-less-likely-to-own-a-home-now

easyProperty and Guild deal ‘driven by desperation’ and ‘unlikely to succeed’, claim

By Rosalind Renshaw

The ‘merger’ between easyProperty and the Guild of Property Professionals and its sister brand Fine & Country has been described as either “an unholy alliance or a godsend”.

The deal, touted as being worth £60m, is set to finalise next month and has now been scrutinised by proptech experts Eddie Holmes and James Dearsley.

The pair claim the deal “could eventually be seen as one of the worst knee-jerk responses by a traditional firm to the threat of digital transformation”.

Looking at easyProperty, when it launched it promised “big things”, say the pair.

It promised a profit in the year to last September of £2.9m based on a turnover of almost £24m. However, it recently announced a loss of £11.3m on a turnover of £875,000 in that period.

The company had expected to be listing 4,000 to 5,000 properties each month by 2016: “Two years later, the reality is around 80 properties per month.”

Then there was the ‘funeral’ parade stunt in London, marking the ‘death’ of high street agents.

But what of the deal itself?

Holmes and Dearsley allege: “We have it on good authority that the deal rests on the release of approximately £15m cash by Tosca Fund (one of the main backers of easyProperty).

“Of this, we are told that the vast majority has been used to buy out Guild shareholders, leaving a smaller proportion available for operational or marketing costs associated with easyProperty

“This begs the question – why is the transaction being described as a merger if it is in effect a purchase of the Guild by easyProperty’s main funders?

“The organisation structure put forward by the Guild certainly shows this to be the case.”

The pair also say that when Tosca invested, easyProperty was valued at £78m: “Therefore this deal has slashed 70% from its ‘value’. Astonishing.”

Holmes and Dearsley say that for Rob Ellice, founder of easyProperty, the deal is a salvage operation; for Tosca, they claim it is a “Hail Mary” salvation attempt to rescue some of their initial investment.

And for the Guild, they say it is seen as a defensive move against the rise of online agents, as opposed to the option of standing back and doing nothing.

Holmes and Dearsley describe the rationale for the deal as “driven by desperation”.

Describing the disparity in brand values, they say that easyProperty’s are about value, volume and taking on the big boys.

Fine & Country – currently promoting polo events – is about prestige, money and lifestyle.

Holmes and Dearsley say it is “unfathomable” how the difference can be turned into a workable strategy for Fine & Country agents.

The pair conclude: “All things considered, we therefore doubt that this transaction is likely to deliver either outcomes of a successful digital transformation for the Guild or help easyProperty find a sustainable business model.

“One rider, however. The project is under the stewardship of a well respected and experienced agent, Jon Cooke. It will take someone of exceptional ability to pull this project off.”

This is a fascinating analysis, with more here:
http://proptechconsult.com/2017/06/22/easyproperty-the-guild/


http://www.propertyindustryeye.com/easyproperty-and-guild-deal-driven-by-desperation-and-unlikely-to-succeed-claims/

Major landlord to scrap tenancy deposits

By Marc Da Silva

Rental operator Get Living has announced that it is to abolish tenancy deposits for new residents from July and return existing deposits collectively worth £3m to more than 3,000 existing tenants.

Get Living is behind the country’s largest single-site PRS scheme at the former London 2012 Athletes’ Village, now called East Village, E20, which features 1,439 homes, with a further 4,000 homes in the pipeline across the UK.

Deposits will be returned to all tenants on the condition that they meet various requirements, which include having passed referencing or possessing a guarantor and being up to date with their rental payments.

Neil Young, CEO of Get Living, said: “We know that the cost of living can be high so, as a responsible landlord with a long-term perspective, it is important for us to be able to identify and address areas where we can alleviate the burden on our residents.

“Scrapping security deposits as a pre-requirement and returning deposits to current residents is yet another step we are taking to show we are firmly on the side of renters.”

Young hopes that deposit-free renting “becomes the norm” to help make the PRS even more attractive for renters.


He added: “We have great relationships with our residents and, given they are taking such good care of our homes, why should we hold six weeks’ rent?”

https://www.landlordtoday.co.uk/breaking-news/2017/5/major-landlord-to-scrap-tenancy-deposits

Letting agents warned: 'Ensure eviction notices are correctly served'

By Graham Norwood

Agents are being warned to ensure they serve eviction notices correctly as the ‘peak eviction’ summer period arrives.

Specialist tenant referencing service Rent4sure says particular attention should be paid to Section 8 and Section 21 notices, which are two of the most frequent and complicated.

A Section 8 notice can be served for a breach of an Assured Shorthold Tenancy agreement and is most commonly used to tackle rent arrears.

“A landlord or their agent should serve a Section 8 notice under grounds 8, 10 and 11 as soon as the tenant defaults on two months of rent arrears,” explains Luke Burton, Rent4sure’s sales and marketing director.

“This differs slightly when the rent is paid weekly, or quarterly and in some instances, you may have to wait for a further period before serving a Section 8 notice under the mandatory ground 8.”

He says that if rent is paid weekly or fortnightly, eight weeks’ rent must be due before a Section 8 notice can be served.

For quarterly rent payments, at least one quarter’s worth of rent must be at least three months in arrears.

“If the rent is paid yearly, at least three months’ rent must be three months in arrears” adds Burton.

A Section 21 notice, meanwhile, should only be served at the end of a fixed term or in line with an agreed break clause within the tenancy agreement. A Section 21 should be served giving the tenant two months’ notice.

“However, if the tenancy commenced prior to October 1 2015 and no new term has been entered into post that date, notice can be served at any time,” says Burton.

He explains that if the tenancy commenced after October 1 2015, agents are not permitted to serve a Section 21 notice until after the first four months of the tenancy have lapsed.


A new government Form 6A – which is only valid for six months from the date of issue - must be used for all tenancies commencing after this date including any renewals.

Rent4sure says it is good practice to serve these notices towards the end of the term to ensure that if possession proceedings become necessary, the notice is still valid.

In the instance that a tenancy began before October 2015 but a renewal has been granted since that date, the Form 6A must still be used.

The rule which states Section 21 notices cannot be served for the first four months of the tenancy only applies from the date of the first agreement.

“However, these will also only be valid for a period of six months from the date they are issued on the tenant,” explains Burton.

“Therefore, it would be good practice to diarise to serve these a few months before the end of the term to ensure the notice remains valid if the tenant fails to vacate and proceedings do become necessary.”

https://www.lettingagenttoday.co.uk/breaking-news/2017/5/agents-told-ensure-eviction-notices-are-correctly-served

New mortgage deals create opportunity for next time movers in UK

Recent changes by lenders to raise the maximum age limits for mortgage applications are a sign of a changing culture in the UK.

Changes in policies have been announced by leading lenders including the Halifax and Nationwide who have raised the age limit for mortgages to 80 and 85 respectively.

Linden Homes is advising people to take this as an opportunity to step up the ladder. ‘These new mortgages offering people the chance to lend later in life are ideal for those people in their 40s and 50s who are considering a property move, but may’ve been restricted previously by the length of term they could borrow money for,’ said Tom Nicholson, the firm’s divisional managing director.

‘This is another move by the lenders to drive the market and reflects the changing habits of people renting for longer and moving up into larger homes, later in life. The new mortgage policies work the same as any other monthly mortgage repayment agreement. Providing those applying have an existing pension in place which will cover the cost of the monthly repayments, a mortgage agreement will be drawn up against the usual rigorous criteria for eligibility,’ he explained.

According to Adam Champion, business development director at the New Homes Mortgage Helpline this new type of mortgage product is a sign of the times. ‘People need to see these new mortgage opportunities as a type of financial planning tool and they have their place in the market,’ he said.

‘First time buyers are getting older which over time pushes back the ages of those making the second, third or final move. These new mortgages available open up the market for those looking to make their next move as they approach retirement age for instance,’ he added.

Champion stressed that these products are a positive advance for the housing market to help people make choices as they get older and shouldn’t be confused with old endowment style mortgages.

‘They work just the same as any other monthly repayment mortgage, with the debt being repaid over the term. These products give people the chance to make individual choices and find a financial product that works for them and their own situation. I am sure this will really create a great opportunity for those people looking to upgrade their property to consider the new options that now are available to them,’ he pointed out.

Nicholson believes, however, that people looking to make the next house move may be missing out on securing their dream home to meet their family’s needs if they aren’t aware of what is on offer.

‘People in their 40s, 50s or 60s considering a house move will consult their bank to see how much they can borrow and may be told they aren’t in a position to get that larger home they want. What they may not have considered, is speaking with house builders offering new build homes, where potential can be unlocked with other schemes available,’ he said.

He added that while Help to Buy exists to help younger home buyers, the changes could help secure an upgrade to a spacious family home in an ideal location. ‘We’d encourage people in this position to speak with our advisors to see how we could help make that move a reality,’ he said.

http://www.propertywire.com/news/europe/uk-mortage-lending-change-2016060211987.html