LANDLORD NEWS
Gove to scrap right to evict tenants without proving fault
The Government is set to scrap the right to evict tenants without having to prove any fault, known as Section 21 notices, in the Renters’ (Reform) Bill. Councils will also have more powers to tackle rogue landlords if the bill is passed. Writing for the Telegraph, Housing Secretary Michael Gove says the legislation aims to improve standards in the UK private rental sector, which has doubled in size since 2002. The bill will also give enhanced protections to landlords who want to move renters on in order to sell a property, house a relative or because of tenants’ anti-social behaviour. The reforms are aimed at countering the minority of landlords who are poorly treating their tenants. The new legislation will also digitise the court process and bring in a new ombudsman to speed up decision-making in disputes for both landlords and tenants.
Sky News The Daily Telegraph Daily Mail Mirror.co.uk
Pet owners welcome bill allowing private renters to keep pets
The Government’s introduction of the renters’ reform bill has garnered praise from renters, pet owners, and animal shelters. The new law grants tenants the legal right to request keeping pets in their rented accommodation, which landlords cannot unreasonably refuse. This change is expected to benefit pet owners who have faced challenges in finding pet-friendly housing and reduce the abandonment of pets. About 10% of people contacting Dogs Trust to rehome their dog and more than 10% of requests for intake at Woodgreen Pets Charity last year cited issues with accommodation, including being unable to find somewhere pet-friendly. David Bowles, the head of campaigns and public affairs at the RSPCA, said he believed the charity would see a big reduction in the number of people giving up pets in order to get a rental property.
The Observer
Housing a key issue for Conservative mayoral challenger
Samuel Kasumu, who is seeking the Conservative Party’s nomination to challenge London mayor Sadiq Khan at the next mayoral election, has criticised Mr Khan’s calls for a rent cap to be introduced to contain soaring rents – while also criticising Conservative policies that protect older homeowners at the expense of young renters. “It is completely immoral”, he told the Express, “to forego the opportunity to invest in house building in order to somehow maintain some semblance of power. It’s just wrong.” Mr Kasumu says London councils should be required to publish league tables of completed homes and planning permissions granted, and has called for more high-density building around travel infrastructure, including new Elizabeth Line stations.
Express.co.uk
NI sees fastest rental price growth in UK
Rental prices in Northern Ireland have seen the fastest growth in the UK, according to the latest figures from the Office for National Statistics. Prices in Northern Ireland rose by 9.9% in the last year, compared to 5.1% in Scotland, 4.6% in England, and 4.4% in Wales. Tenants are struggling to secure viewings, facing competition and last-minute cancellations. Landlords are also requesting additional documentation from prospective tenants. The combination of higher mortgage interest rates, reduced tax relief, and new legislation is increasing costs for landlords, leading some to exit the market or raise rents.
BBC News
COMMERCIAL
Office refurbs rise to a record high
While refurbishments of office buildings in central London have risen to a record high, the volume of new space being developed remains below pre-pandemic levels. A survey by Deloitte has found that 37 refurbishment schemes were started in the half-year to the end of March, with about 3.2m sq ft of space set to be renovated. While the number of new office building projects rose to 13, or 1.3m sq ft of space, compared with the previous six months, the volume of space to be constructed is lower than the pre-pandemic average since 2015 of 1.85m sq ft. Sophie Allan, director in real assets advisory at Deloitte, said: “While construction levels remain high, developers are acutely aware of elevated construction costs, which remains the biggest challenge, with both labour and material seen as major drivers.”
The Times
Center Parcs put up for sale
Center Parcs has been put up for sale by its Canadian private equity owner with a price tag of between £4bn and £5bn. This could net a windfall for Brookfield, which bought the holiday resort group from Blackstone for £2.4bn in 2015. Brookfield has reportedly been looking to ditch its investment since last year. Center Parcs runs five holiday villages in the UK and one in Ireland.
City A.M. Daily Mail
AUCTION NEWS
Bristol buyers turn to auction
According to the Zoopla House Price Index for May, Bristol’s housing market has become more balanced as property sales continue to grow. With the tight rental market across the city, some potential property buyers are turning to auctions to see what’s on offer and if there are any bargains. Many of these properties would need some renovation, but there are gems to be found, Bristol auctioneer Maggs and Allen said.
Bristol Post
PROPERTY FINANCE
Housing market sees record price rise
The average price of properties sold in Britain hit a record £372,894 this month, according to Rightmove – a 1.8% increase, or £6,647, on April and ahead of a historic average rise in May of 1%. The largest monthly increases in asking prices were in London and the southeast, up by 2.8% and 2.3%, respectively. Northeast England remained the cheapest region, where prices fell by 2.3% to £179,693. “This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season,” said Tim Bannister, Rightmove’s director of property science.
The Times The Guardian
North is the way to go for affordable homes
The Zoopla House Price Index for May 2023 has revealed that the 10 cheapest areas to buy a home are all in the north of the UK, with Scotland and the North East of England dominating the list. Inverclyde, close to Glasgow, tops the chart with property available to purchase for an average of £101,400. Other Scottish areas, including East Ayrshire, West Dunbartonshire, North Ayshire and North Lanarkshire, also made it into the top 10. In England, the highest-ranking location was the North East town of Hartlepool, where a person could get the keys to a new abode for an average of £110,400. Meanwhile, areas of the UK seeing house price rises have also been in the north, with Hambleton in North Yorkshire seeing houses on the market for almost £15,000 more than they were last year.
Express.co.uk
LENDING CONDITIONS
Mortgage market doubles since mini-budget
The mortgage market has doubled since the mini-budget, with 5,264 options available in May 2023, up from 2,258 in October 2022. The number of options within the 15% and 25% deposit ranges are the highest on record, suggesting greater stability in the level of choice. The average “shelf life” of a mortgage product is now 25 days, compared with 15 days in October 2022. Fixed mortgage rates rest lower on a month-on-month basis, but it is anticipated that fixed interest rates will start to rise due to volatile swap rates. The average standard variable rate mortgage has continued to climb, standing at 7.37% typically, the highest level since December 2007. Rachel Springall, a finance expert at Moneyfacts, said that borrowers who are coming off a fixed-rate deal may be understandably concerned about the rate difference between their existing rate and those on offer in the present market.
London Evening Standard
Huge appetite for mortgage overpayment
Homeowners have made more than £750m worth of mortgage overpayments during the first quarter, a third more than for the same period last year, according to Santander. The bank said that the number of its customers that are overpaying their mortgages this year increased by 9% to more than 200,000. Graham Sellar, Santander’s head of business development – mortgages, said: “Overpaying can not only save money in the long term but also help secure a better interest rate when remortgaging and reduce the term of an existing mortgage.” The bank is believed to have around £50bn of mortgages on its books that will come off their fixed term rates this year.
Daily Express
ECONOMY Inflation set to dip but food prices remain a concern
Inflation is set to fall below double digits for the first time since August 2022, with official data due to be released this week expected to show that consumer price index inflation hit 8.3% in the year to April, down from March’s 10.1%. While analysts have welcomed the projected dip in inflation, economists have voiced concern over the soaring cost of groceries, which were up 19.1% in March. Analysis from the Institute of Grocery Distribution trade group suggests food inflation will stay above 10% for the rest of the year, while Lalitha Try, an economist at the Resolution Foundation think-tank, says the “food price shock to family finances is set to overtake that from energy bills.”
Daily Mail
