Maidenhead Property Articles

Zoopla.co.uk has recently published the results of a survey it has commissioned, which indicates that more than 75 per cent of homeowners believe house prices will increase in the next 6 months, while only 11 per cent are pessimistic about an increase over the same period.

Scots seem to be most confident about house prices (with 83 per cent) where are Northen Irish are the least confident (with only 31 per cent).
But, the Zoopla survey points out that nearly half of renters (42 per cent) think the house prices in their area will remain either unchanged or in a decline over the next 6 months.

On the positive side, despite all the uncertainties and the limited range of products within the mortgage market, more than half of the renters are planning to but a property in the upcoming six months.

Our Appleton Estate Agents Maidenhead director Adil Akkus, commented: “There is a refreshing sense of optimism in the property sector again and we are expecting the market to return to its levels before the credit crunch over the next year.”

Also, the Royal Institution of Chartered Surveyors (RICS) has also published some figures this week, which shows the steepest rise in the house prices since the the credit crunch began. RICS points to a lack of properties up for sale fuelling as the main reason for this.

The Landlord and Tenant Act 1985 sets out the standards on repair of property that is leased less than seven years.

A landlord, in very general terms, has a legal responsibility

• to maintain and repair the structure of the property as well as the exterior. This includes (but not limited to) the external pipes, drains and gutters.
• to keep the main utility supply installations (i.e. electricity, gas as well as water) in working order.
• to repair and in working order the installations for the provision of water heating and the heating of the property.
• to ensure the safety of gas, electricity and furnishings.
• to provide certain records of safety checks before the tenancy begins.
• maintain the general standard or fitness of the property for habitation as defined by the Section 604 of the Housing Act 1985.

However, the landlord is not expected to maintain or repair those items that the tenant breaks through misuse, carelessness or negligence.

The tenant is expected to behave in a ‘tenant-like manner’. At a high level, this implies that the tenant must look after the property and carry out small maintenance in and around the property.

As the landlord has a legal responsibility to carry out particular repairs and maintenance on the property, they, or people authorised by the landlords, can access it with certain provisions:

• the landlord must warn the tenant with adequate prior written notice; at least a 24-hour notice
• the visit must take place at reasonable times of the day

Of course, there may be certain exceptions; mainly the emergencies.

Houses in Multiple Occupation (HMO)

HMO is commonly defined as an entire residential property (flat or house) that is rented to more than two tenants who do not form a single household with shared facilities (e.g., kitchen, bathroom, etc.).

There are several tests to verify whether a property is an HMO or not. The most popular court case is known as the Barnes vs. Sheffield Council (1995), which provides 9 useful questions to consider:

1. did the people (who are living in the house) move in together as a single group, or did they move in separately?
2. which facilities do the tenants share?
3. which parts of the property are the tenants responsible for? The whole house or just their rooms?
4. Can or do the tenants lock other tenants out of certain parts of the property?
5. How is a replacement tenant found if/when people move out? Who is responsible for finding the replacement tenants?
6. How are the rooms allocated?
7. What is the size of the property?
8. Are the tenants a stable group?
9. What is the style of living? Is it communal?

The Housing Act 2004 introduced a number of complex tests to set out the meaning of HMO:

• standard test
• self-contained flat test
• converted building test
• HMO declaration in force
• converted block of flats

It also clarifies certain exceptions, including:

• buildings that are controlled or managed by public sector bodies
• student accommodation controlled or managed by the educational establishment
• properties used by religious communities
• properties occupied by owners
• properties occupied by two people

There are also a number of standards that the Housing Act 1985 specifies for the HMOs.

The local authorities have the power to control the HMOs, and in certain parts of the country the HMO licensing, governed by the local authorities, is in place.

Both Assured and Assured Shorthold tenancies are the most common methods of residential leases in the United Kingdom. They were introduced by the Housing Act 1988 in their current form. This Act initially set the Assured tenancy as the default, which has is more tenant friendly. The Housing Act 1996, which came into effect from 28th of February 1997, however, ensured that the Assured Shorthold tenancy was to be used unless otherwise stated.

There other types of leases and the following are the caveats where the assured or shorthold tenancy can be used:

• the tenancy is between the “private” tenant and “private” landlord
• the tenancy starts after the 15th of January 1989
• the property is rented as separate accommodation and it is the tenant’s main residence.

Both types of tenancy can be be in 2 forms:

• fixed term: this type of lease runs for a fixed period of time
• periodic: this type of lease runs indefinitely from one rent period to the next

Furthermore, a tenancy can not be a Shorthold or an Assured Shorthold Tenancy (AST) if:

• the pure rental income is greater than £25000 per year
• the total yearly rent is less than £250 (this maximum limit for Greater London is £1000);
• agricultural tenancies
• a educational body such as a college or a university grants a tenancy to a student
• when letting a holiday property is involved (there are certain conditions on this)
•  the landlord is classed as a resident landlord
•  a tenancy where the landlord is the local authority, Crown or a Government Department (there are certain conditions on this)

For any queries, please seek legal advice from approved bodies in the UK, such as the Citizen’s Advice Bureau.

Adil Akkus is the managing director of the Appleton Estate Agents Maidenhead.

For the seventh consecutive month, the Bank of England has kept the UK interest rates on hold at half a percent

This move was widely expected by the analysts; which is a sign of the slow UK economic recovery even though the figures published last month may indicate that the UK economy is not in recession anymore, at least on paper.

The Bank also commented that it would keep a close eye on its quantitative easing program.

Analysts agree that the main issue is now whether the quantitative easing ends next month, or it is extended further.

Like the rest of the G20 countries, it is not yet possible to understand the impacts of the quantitative easing initiative on the recovery.

The Bank of England will have tough choices at the next meeting as there are several factors to take into account such as the increasing house prices against the high unemployment rates as well as the tight finance options for the individuals as well as companies. Easrly in October both Halifax, which is now part of the Llyods TSB group, as well as the Nationwide Building Society published figures that point to a slow recovery in the UK property market.

Unlike many of the G20 countries, the Reserve Bank of Australia raised its base rate just last week.

Sue Bilton joins the Appleton family. Sue has plenty of experience in the estate and letting agency sector; especially around Twyford.

Our executive director Sarah Akkus commented on our new team member: “Sue has plenty of experience in the property business; having previously worked for another agent in the area we cover. She is very easy to get on with. I am looking forward to working with her.”

According to Halifax, now part of Lloyds Banking Group, the average house prices in the UK went up for the third month in a row last September.

This indicates a quarterly increase of the house prices over the last 2 years.
In September, the average property price increased by 1.6% in comparison to August, this figure is now at £163,533.

And, compared to the previous quarter, the prices rose by 2.8 per cent in the last quarter up to September.

The Halifax argues that the increase in demand combined with a lack of supply is main reason behind this rise.

There is still a divergence between the figures published by Halifax, and the Nationwide Building Society’s publication last week. However, both agree that low interest rates and fewer properties on the market have been key to the “recovery” in prices.

At Appleton Estate Agents Maidenhead we believe that the uncertain economic climate combined with the high levels of unemployment can still change this balance in the property market.

According to Nationwide’s recent figures, the UK house prices have now recovered to the same level as 2008.

The average price of a property in September (last month) was almost the same as the September 2008 figures.

Nationwide claims that the house prices have now gone up for 5 months in sequence.

However, the Nationwide building society was cautious the sustainability of these increases in the house prices at their current rate.

Nationawide claims that the worst part of the recession is behind us now but they point to the following factors that will stop the continued increase in the prices:

• restrictive mortgage market
• increased unemployment
• impending withdrawal of the stamp duty holiday

Is the rental market seeing the green shoots of recovery?

According to FindaProperty, the number of available properties for rent has seen a drop of 6.2 per cent in September. It is a big drop for the last 18-20 months but the total number is still 37 per cent bigger compared to 12 months ago.

FindaProperty points out that the amount of flats went down by 7 per cent whereas the number for the houses has seen a smaller deviation by 4.7 per cent.

Another interesting statistics is that the average time to rent out a property has decreased to 59 days from 66 days over the course of last few weeks.
Our director Sarah Akkus commented: “These are all good signs for the rental market. We are not only seeing continued recovery in the rental market but also witnessing the over supply to be normalising”.

How can we help

We provide three standard service packages. Let Only where we simply find a tenant, Let and Rent Collection where we find a tenant and make sure your rent is collected, and Managed, where everything is left to us. The things most landlords need fall within these three service levels. We can be very flexible and will normally be able to meet any specific needs. The main thing for you to decide is whether you want Appleton Estates to manage the property, or if you can do this yourself.

Our ‘Let Only’ service will normally cease once the tenant has moved into the property. However, we still like to remain in frequent contact with our Landlords and Tenants and are always here to answer any questions/queries they may have. This service covers:

Accompanied viewings of your property Referencing checks (as detailed below) Arranging Inventory check-in Collection of first month’s rent and deposit Notifying utility companies and local authority of change of occupier Advice on any aspect of letting

Let Only Fee: payable for rental period of up to one year, reduced for second and third year.

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The ‘Let & Rent Collection’ service includes:

Accompanied viewings of your property Referencing checks (as detailed below) Arranging Inventory check-in Collection of first month’s rent and deposit Notifying utility companies and local authority of change of occupier Advice on any aspect of letting Receive the rent on your behalf through our automated banking system. Detailed, clear to understand Monthly statement.

Let & Rent Collection Fee: collected monthly from rental payments.

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The ‘Managed’ service is designed for Landlords living abroad or in another part of the UK, or for those who simply don’t have time to get involved in the day-to-day management of the property.

Today’s tenants can be rather demanding, expecting a dripping tap or broken fridge to be repaired immediately, no matter how inconvenient the moment may be for you. In our managed service we will take care of all repairs and tenancy issues for you. We will also, for your peace of mind, visit the property to keep an eye on its condition.

Why clients prefer us to manage their property:

Accompanied viewings of your property Referencing checks (as detailed below) Arranging Inventory check-in Collection of first month’s rent and deposit Notifying utility companies and local authority of change of occupier Advice on any aspect of letting Receive the rent on your behalf through our automated banking system. Detailed, clear to understand Monthly statement. Quarterly inspections of your property and reported back to you. Reliable and competitive contractors always used.

Fully Managed Fee: collected monthly from rental payments.

Please request to see our Terms and Conditions for full details or contact us to discuss your specific requirements.