Social housing is not just a safety net for the few

With more and more people made homeless or forced to pay excessive rents, the charity Shelter is investigating how to help them.

Although provoked by the Grenfell Tower tragedy, which drew attention to social housing in the UK, Shelter’s commission into the future of social housing will go much wider than one fateful fire and address concerns that people in social housing are being ignored.

Alongside 15 others, including Ed Miliband, Doreen Lawrence and those from the Grenfell community, I have joined the commission and will spend the next few months hearing from social tenants about their experiences, setting out necessary changes and scrutinising the role the sector could play in easing Britain’s housing crisis.

I am the first to admit that I’m an unlikely social housing commissioner. I have never lived in social housing. Even during my childhood, my parents turned to our wider family to support us during tough times. Social housing, meanwhile, was for people who had hit rock bottom and had nowhere to turn for help.

Growing up, I was fortunate enough to seize the opportunities provided by social mobility. I was lucky that, as a young lawyer in Yorkshire, I was able to buy my first home – for around twice my salary. Yes, interest rates were high 25 years ago and I still had to work hard, but it didn’t occur to me that I wouldn’t be able to buy my own home.

Now I meet young solicitors who, even with a promising career, know the prospect of owning their own home seems impossible. I used to assume that the market would always provide for people who worked hard, that any kinks in the housing market would iron themselves out in the end. Of course, a safety net would always be necessary for some, yet for the majority hard work would pay off and social housing would be as irrelevant as it had been to me. Housing would be a private matter, not a government concern.

Now, this basic social contract is broken. Socially mobile young people find that working hard isn’t enough unless they have help from the bank of mum and dad. And that safety net for people at the bottom? It’s looking ever more stretched as more and more people need help.

It’s clear that the housing market is fundamentally broken. Tweaks by successive governments have not rectified this and even the current Conservative government has published a white paper on the “broken housing market”. That’s because the effects are being felt widely, from the growing numbers of people being made homeless, to young people stuck in expensive and insecure private rents, despairing of ever finding a way out.

Politicians cannot look young people in the eyes and honestly tell them that everything will be OK if they just work hard. Our broken housing market has become a major barrier to social mobility.

This is an intolerable situation and demands politicians of all hues respond. Shelter’s commission will consider the role in which social housing, and government more generally, should provide an alternative.

I start this process with a genuinely open mind. I admit that I have been innately sceptical of large-scale social housing. I’ve always seen it as a safety net, but a worsening housing crisis forces us to ask whether that safety net needs to be stretched far wider. Or, with the market no longer providing a housing ladder, does a wider group of people need to use social housing as a stepping stone?

Shelter has embarked on a large consultation and fact-finding exercise, which will give me and my fellow commissioners the evidence we need to answer these questions. It’s a privilege to have the opportunity to debate this alongside 15 smart people from a range of backgrounds and political affiliations. We have met once and it’s impossible to guess what we will conclude, but what’s clear and exciting is a shared determination to set out a vision for social housing that everyone can support.

https://www.theguardian.com/commentisfree/2018/apr/28/i-have-found-out-that-social-housing-is-not-just-a-safety-net-for-the-few

Renters face rent hikes amid tax changes

Almost a quarter of tenants experienced rent hikes in March as landlords are left with little alternative but to pass higher tax costs onto tenants by increasing rents.

According to ARLA Propertymark’s Private Rented Sector Report for March, 23% of tenants saw their rents increase last month, which is the highest level seen since September 2017 when 27% of landlords put rent costs up for tenants.

However, this level is down 25% year-on-year. 

Some 66 prospective tenants were registered per member branch in March, up 8% compared the previous month. This comes after an increase in January which saw the number of tenants registered per branch jump to 70.2.

But while more people are actively looking to rent, the supply of rental stock is failing to keep pace with increasing demand.

The number of rental properties letting agents managed increased marginally in March, from 175 in February, to 179 per branch. This is down from an average of 183 in March last year.

The supply-demand imbalance in the rental market is also placing upward pressure rents. The data for March suggests its “business as usual” for the private rented sector, according to David Cox, ARLA Propertymark’s chief executive, but he believes that “this isn’t necessarily a good thing”. He commented: “Supply is still too low and almost a quarter of tenants are experiencing rent hikes every month as landlords try to recoup the costs lost trying to keep on top of all the recent legislative changes – including the recent energy efficiency deadline.

“For the last two decades, successive governments have passed significant amounts of complex legislation for landlords, none of which have been properly policed or adequately enforced – but most of which cost decent landlords a lot of money.

“This is why we’re so supportive of the government’s proposals to crack down on rogue agents, and more recently, plans to confiscate properties from criminal landlords.

“The announcements mark a sensible shift towards focusing on the root cause of the issues affecting the sector, rather than trying to find solutions to individual problems. This, coupled with greater rental stock is the key to fixing Britain’s broken rental sector.”

https://www.landlordtoday.co.uk/breaking-news/2018/4/renters-face-rent-hikes-amid-tax-changes

Almost 70,000 first time buyers benefit from stamp duty abolition in UK

Some 69,000 first time buyers have benefited from the abolition of stamp duty tax since it was introduced by the Government last November. The official figures covering the period until the end of March 2018 show the numbers who have not paid the tax when buying a home under £300,000.

Over the next five years, it is estimated that the policy will help over a million people get onto the housing ladder and those who have bought properties of up to £500,000 will also have benefited from a stamp duty cut.

‘I’m proud that the cut to stamp duty for first time buyers is helping to realise the dream of home ownership for a new generation, alongside building more homes in the right areas,’ said Financial Secretary to the Treasury Mel Stride. The figures also show that over 387,000 people have now used the Government’s Help to Buy scheme, and over 1.1 million accounts have been opened with the Help to Buy ISA, offering government bonuses of up to £3,000.They reveal that the median age of a first time buyer in the Help to Buy scheme is 27, compared to a national first time buyer median age of 30.

Housing Minister, Dominic Raab, said that the figures build on the Government’s long term commitment to make housing more affordable. As part of the Autumn Budget housing package, the Chancellor announced at least £44 billion for housing, which includes at least £15.3 billion of financial support for house building over the next five years, and an aim to build 300,000 new homes a year in the areas that need it, as well as encouraging better use of land in cities and towns.

According to Kate Davies, executive director of the Intermediary Mortgage Lenders Association (IMLA) the statistics show that there is still considerable appetite for Help to Buy among first time buyers. ‘As we approach what is a pivotal juncture for the industry with the scheme due to come to an end in 2021 clarity is urgently needed over what will come next,’ she said. ‘The scheme has already helped over 150,000 households into home ownership –and with the Government setting itself targets to build a million new homes by 2020, it seems counter-intuitive to close the door on what has been a successful vehicle for helping to purchase those new homes,’ she explained. She pointed out that the IMLA’s own research shows that the Help to Buy scheme made up 27% of all new housing completions between April 2013 and March 2017, so its role in helping people get onto the ladder cannot be underestimated.

‘The Government has emphasised its commitment to mend the broken housing market, to speed up the planning process and to improve the whole buying and selling experience for consumers. But it will take time to put these proposals in place, and longer before their effects are felt. Help to Buy’s impact has been fairly immediate and it’s unclear why it should not continue,’ she added.

She also pointed out that 43% of all new build properties are currently dependent on Help to Buy, so the potential effect of any withdrawal would be significant, not just to developers and lenders, but also to consumers who may, in turn, see house prices increase.

‘The IMLA, along with many industry stakeholders, would welcome an announcement, or at least a firm indication, that some form of government support will continue post-2021. We would welcome discussions with Government as to what that continuation might look like. Some adjustments might be appropriate given the experience to date but the impact which the scheme has had on new home ownership is surely too significant for it simply to be abandoned at this stage,’ she concluded.

https://www.propertywire.com/news/uk/almost-70000-first-time-buyers-benefit-stamp-duty-abolition-uk/

Interview with John Corey of Property Fortress , on how to raise money legally

John started work in the Silicon Valley under Steve Jobs and worked along one of the co-founders of LinkedIn.

John shares his insights on how to raise money for property ventures legally .

You can ask John about anything Property Related during a free 20 minute call using https://www.propertyfortress.com/ask-john/

For more on John , please go to https://www.propertyfortress.com/

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https://youtu.be/UGHMX4AEKrU

Money and Energy Saving Smart devices

http://www.betterthinking.co.uk/furnish-your-home-for-free%E2%80%A6-well-almost/

It’s obvious that smart home concept becomes globally popular and appealing idea. It eases our life making it more tranquil and secure. A lot has been said about the many benefits house automation brings to homeowners. But have you ever thought those smart home gadgets that gradually invade the world markets can actually help you save money and energy? Well, they really can! So, enjoy your high-tech house and avail of the clever devices you have invested in!

Since hardware prices are dropping dramatically, smart gadgets turn to be more affordable for almost all social groups. Apart from providing a higher layer of comfort and protection, these devices will also reduce your regular expenses. How? Here are the much useful gadgets that will do the job!

Smart Locks
Want to save money? Protect your property! Smart locking mechanisms nowadays not only defend your house against burglars keeping yourself and all your belongings along with the fancy gadgets safe but also allow you to control the lock remotely and give access to your house to the third party or report an illegal intrusion through an app without leaving office. Moreover, using your phone as a “key” allows you to avoid any lockouts, thus saving on a locksmiths, too.

Thermostat
Do you constantly forget to turn down the heat at night? Expect fat energy bills then. Or get a Smart thermostat and safe up to £100 per year. This intelligent gadget automatically decreases the temperature at night and kicks it back up in the morning. On top of that, this device will track you anywhere at home to adjust the temperature of that very room in accordance with your set climate preferences.

Insight Switch
Make any device smart with only one smart switch! Being a mediator between your appliance and the wall socket, such computerized and Wi-Fi-enabled switch will monitor your energy use. It will turn off your air conditioner or heater after a certain amount of time; turn on the sprinklers once water restrictions have ended or turn off an appliance when its energy consumption reaches its daily limit.

Lights
This is one of the most popular ways of saving kilowatts. Simply, control the lighting in your house and cut down on waste by setting timers, dimming or shutting off all lights right away via your smartphone. Some of the smart devices are even able to store energy for emergency cases, providing up to 5 hours of reserve light.

Water Pebble
Consuming too much water? A tiny green gadget will make huge savings! Once it is set by the shower drain, it will “remember” the water amount of your baseline and notify you if you overuse water. After every following shower, it will be reducing the water amount till you reach a planet-saving amount!

Fridge
Voilà! With this smart home appliance you can forget about spoiled food and wasted money! Now your fridge will take care of its content, create shopping lists and even entertain you. The cameras inside it and Wi-Fi connection will inform you through a mobile app what you have in your refrigerator, which products are expiring and what are the last date to use them. What else a present-day homeowner might expect from his smart home?!

Home Automation Hub
A device that actually controls all! With it you can regulate your security system, thermostat, lightning and more, making your smart home way much smarter!

Well, now you can stop wasting money, water and energy! Just get the right gadgets to save your funds and preserve the nature!

http://www.hip-consultant.co.uk/blog/money-and-energy-saving-smart-devices-123/

Is now the right time to sell your buy-to-let property?

UK Buy to Let Market:

https://www.mortgagestrategy.co.uk/house-prices-flat-july-mab/

The UK buy-to-let market is well-known as one of the strongest investment markets around. Rental yields and property values are increasing across the UK – apart from the notable exception of the Central London market which continues to founder. In contrast, regional cities such as Manchester, Liverpool, Leeds and Sheffield have seen remarkable growth which is projected to continue far into the future.

This is largely down to the significant growth in the overall population of renters – the best current estimates state that approximately a quarter of the population will be living in rented accommodation by 2021. Renting is becoming an increasingly accepted long term lifestyle choice, especially amongst younger people for whom avenues to homeownership are largely closed off.

This so-called ‘Generation Rent’ is here to stay, and the rental market will keep growing far into the future because of this. As a consequence, the supply of high quality rental accommodation is shrinking rapidly, especially in key city centre markets. This is going to keep pushing rents upwards.

When you combine the potential financial returns with a base of tenants which is only going to grow, it is easy to see why property investment is a popular option for many people eager to secure their financial future. Property offers high returns in a way which is relatively less risky than other more uncertain forms of investment.

However, despite this, might it be time to streamline your portfolio and begin to sell some of your buy-to-let investments?

The most obvious worry for landlords is the Brexit process. According to a recent survey by Knight Knox, an expert property consultancy based in Manchester, more landlords consider Brexit to be a threat than an opportunity. The uncertainty caused by the process already seems to be all-pervasive and we haven’t even left the European Union yet.

On top of this, the government unveiled tax changes in 2017 which were aimed at landlords and have reduced profit margins. Restrictions on mortgage tax relief and changes to wear and tear allowances are squeezing many investors. This all came after changes to Stamp Duty in 2016 which added an extra 3% on top of new purchases, making new acquisitions harder to justify.

In these circumstances it is reasonable for an investor to look for options to sell their buy-to-let investment and release the capital appreciation that has built up in the property. Unfortunately, this is where many begin to run into difficulties, as selling a buy-to-let investment can be a difficult process.

When selling a regular residential home to an owner-occupier, it is easy – you list your property with Rightmove, Zoopla and a traditional nearby estate agent. When you are selling buy-to-let, the process is much less clear. The growth of the buy-to-let sector has ensured there are more potential investors than ever before. The latest figures from HMRC confirm this, showing that the total number of landlords has grown by 27% since 2011/12.

Despite there now being a surplus of potential landlords looking for new investments, there was no easy way for existing investors to sell their buy-to-let properties to this growing base of buyers. This is where Intus Residential comes in, to make the whole process simple and efficient.

Having sold more than £23.6m worth of buy-to-let property on behalf of investors, we have a wealth of experience in the field. We work with the UK’s largest database of serious, pre-qualified investors in order to sell your buy-to-let property and our specialist after-sales service works to reduce the frustrating risk of buyers pulling out at the last minute.

https://www.landlordzone.co.uk/sponsored/now-right-time-sell-buy-let-property

More funding is needed for affordable homes and tenant rights in the UK

Funding for councils to build more affordable housing and restoring legal aid for housing advice are needed to solve the housing crisis in Britain, it is claimed.

The Labour Party has put forward a number of policy aims relating to affordable homes and helping tenants beat rogue landlords as part of its plan to make sure that everyone has the right to a safe and decent home.

The Shadow Justice Secretary Richard Burgon said that the withdrawal of legal advice in many housing cases has weakened tenants’ rights and benefitted rogue landlords. In a speech in Manchester he said that the party will restore legal aid for housing advice which could help up to 50,000 households a year.

‘Prevention is better than cure and this policy will help stop problems like damp, leaking roofs or faulty electrics from spiralling out of control and causing tenants even greater misery,’ he said.

‘The withdrawal of legal advice in many housing cases has weakened tenants’ rights, which can only benefit rogue landlords. Restoring this legal aid for housing advice will help tens of thousands of people resolve their housing issues and regain their housing rights,’ he added.

Meanwhile, Labour Leader Jeremy Corbyn, pledged to build enough housing and make sure that housing is affordable to those who need it. At the launch of the party’s affordable housing review he said that if it comes to power it would deliver a million genuinely affordable homes over 10 years, the majority of which would be for social rent.

He pointed out that house building has been in steady decline for decades, from over 350,000 a year at the beginning of the 1970s to well below 200,000 today. ‘The only times we have built enough affordable housing is when councils have stepped up. To turn this around will require radical measures to properly fund, empower, and support councils to deliver affordable housing for all,’ Corbyn said.

He explained that it would create a new era of social housing, in which councils are once again the major deliverers of social and genuinely affordable housing and set the benchmark for the highest size and environmental standards.

According to Campbell Robb, chief executive of the independent Joseph Rowntree Foundation (JRF), the policy announcement should encourage the current Government to create more affordable homes.

‘Voters across all wage brackets want to see action on housing and it is simply not right that so many people in our country are locked out of the opportunity to build a decent and secure life because of crippling housing costs,’ he said.

‘This recognises the scale of the housing crisis and why we need to drive up the supply of low cost rented homes. It puts pressure on the Government to match this ambition and deliver the low cost rented homes struggling families desperately need. The Government’s forthcoming social housing green paper must commit to increasing the supply of low-cost rented homes in England,’ he added.

https://www.propertywire.com/news/uk/funding-needed-affordable-homes-tenant-rights-uk/