Declining home ownership continues apace…

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Renting:

The number British people renting in their middle‑age has doubled over the last ten years.

Pressures on living standards through stagnant wages for many people over the last 20 years, and rising property prices, are having their effects and bringing about structural changes in the housing market for both young and old.

Over 25% of those in their late thirties and early forties are now renting and there is a definite trend which sees older people selling up and going into rental accommodation.

The Office for National Statistics and the National Centre for Social Research annual Family Resources Survey concluded that this trend in the decline in the number of people who can afford to buy their own home was a significant one, which began before the recession of 2008.

Although the study shows that more people now own their homes outright (mortgage free) that did 10 years ago, there is increasing evidence of older people opting for renting in retirement, and there is an increasing likelihood that people wll look to ways of raising equity from their homes.

In Quarter 1, 2018 the Key Retirement Equity Release Market Monitor report shows the highest recorded first quarter result both for equity release new plan numbers and total lending. This trend is a continuation of the growth experienced year-on-year though 2017.

The average equity release loan amount increased slightly over the period from £73,609 to £74,048 and money drawdown remains the most popular type of plan, with the average age for those releasing equity falling marginally from 72 in Q1 2017 to 71 today.

Gifting (Bank of Mum and Dad) is a major motivation for those releasing equity from their homes and the numbers and percentages gifting have increased year on year. The main reasons for gifting vary widely but the more popular are: house purchase, university / school fees, paying down debt, divorce, holidays.

Paula Higgins, of the HomeOwners Alliance support group, told the Daily Mail:

“People are stretched to the limit and have insecure wages.

“When they split up, a couple can’t each buy a property in the same area that lets them share the children.

“The danger of all this is the social inequality it will create between the haves, who are homeowners, and the have-nots.’

A major report by The Resolution Foundation think-tank release recently has proposed some quite radical measures to address these inter-generational shifts in fortune.  The most radical of these proposals is to strip the older generation of wealth to help the young.

This would, according to the Foundation’s reasoning, include rent controls, building more cheap housing, and a one-off benefit payment of £10,000 to all those at 25.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Declining home ownership continues apace… | LandlordZONE.

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Landlord GDPR policy – Short version

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For individual Landlords GDPR policies can seem more complex than necessary.

The GDPR Policy on my web site is a One page (Two sided) document that explains a Landlords policy adequately. Many have written about GDPR, and in quite a lot of detail

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What on earth are you waiting for?

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Charles Darwin once said; “it is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”

When former Chancellor of The Exchequer announced in the Summer Budget 2015 that the basis of taxation for individual landlords was to change

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UC email to Landlords is causing THOUSANDS to be HOMELESS!

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Firstly, if there are any Newspapers, Media outlets, TV program’s readings this and you are soon doing a story on Universal Credit, then I give you full permission to use all this post of mine.

Below is the email that UC are now sending to Landlords when we report that the tenants are in arrears.

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Change is needed to help older renters

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The RLA believes the Government must help landlords support older renters looking for greater security, following the publication of a BBC report which claims the number of middle aged renters has doubled in a decade. The BBC News data claims: The proportion of 35 to 54-year-olds who live as private tenants has nearly doubled in 10 years […]

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Use of official statistics on ‘leading cause of homelessness’

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Details of a complaint made to Statistics.Gov.Uk by Property118 reader Owen O’Neil

Dear Sir/Madam,

I would like to make a complaint about simplification of the context of statistics to the point of misrepresentation that would mislead the public which falls under this duty of your office :-

(III) official statistics in a document or statement are presented in such a way that

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How to deter Burglars

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Thefts from Property:

Landlords have a moral responsibility, if not a legal one to make their tenant’s home as safe and secure as possible from intruders and burglars.

The Office of National Statistics’ website defines a burglar as being someone who “if they enter any building or part of a building as a trespasser and, having done so, steals or attempts to steal anything.�

It’s worth reminding ourselves of this definition because trespassing, breaking-in and entering without authority are themselves key parts of a burglary and crimes themselves, including those which have been featuring heavily in the news lately, including several worrying trends:

• Spree burglaries – where homes in more affluent areas are targeted by criminals. Instead of old-style sprees, which involved many and any houses over a wide area being targeted in an opportunistic way, 2018’s spree burglars target just a handful of more prosperous neighbourhoods, specifically choosing those streets and properties which they think will yield the greatest value spoils for their efforts. These burglars tend to work in groups, spending time in the area ahead of their crimes, identifying suitable properties and checking out the security measures in place. Often one group commits the crime whilst another patrols the area in a car, keeping a lookout.
• Violent burglaries – as the UK national press and BBC have been reporting over recent weeks, burglaries have also resulted in homeowners being hurt and even accused of murder after violent struggles between burglars and individuals trying to protect their property and their families in their own homes.
• Stealth burglars – including the individual dubbed ‘The Night-Watcher’. These are burglars who spend a significant time watching an individual property and waiting before committing a precision and purposeful burglary.

Extent of the problem

But even if you turn off the news, there’s no way to hide from the reality of the statistics which have already shown the increase in such crimes:

• Both Hertfordshire Police and the Metropolitan Police reveal a 21% year-on-year increase in reported burglaries (as reported in The Telegraph).
• Police statistics for England and Wales show reported burglaries increased by 6% in the year 2016-2017.
• Home office statistics for the year to June 2017 identified that almost 80% of home burglaries are unlikely to be solved.
• Areas of Derby and South East London have been particularly noted as suffering from this recent rise in rates of burglary and home invasion.

Information supports prevention

Alarming though such information and statistics can be, there’s no doubt that having information about what’s going on can support efforts to prevent problems. Checking out the local crime statistics in your area can be a way of seeing if your own home or business premises is particularly at risk in some way. Rapidly increasing numbers for certain types of thefts can also help you to identify if spree burglaries are starting to come into the area.

The Police.uk website offers a useful online tool where submitting your postcode brings up a map. Clicking the ‘explore’ button allows you to see the types of crime being committed in the area each month.

However, it’s worth bearing in mind that:

• The information offered is limited to reported crimes so may not show all crimes such as attempted break-ins which are not always even noticed, let alone reported.
• Not all reported crimes result are recorded and investigated, especially those deemed ‘low value’ by police (as reported in the Independent).
• Nine out of ten burglaries reported remain unsolved and less than 10% of stolen good are recovered (Huffington Post).

What’s your risk of burglary?

Checking the tool above can help you to identify the number of reported burglaries in the local area generally. This knowledge will give you a context for carrying out a security survey of your property or premises, to help you identify any particular vulnerabilities your property has.

For example, if there have been several burglaries in the area lately, and your access points have only basic locks, no motion-sensor lighting or alarm system, this may mean your property is at risk through lack of deterrent.

How to deter burglars

But what can you do to actually deter burglars? The simple answer is to use security measures which both make your property less of an easy target and increase the risk potential burglars might face of getting caught.

According to ex-criminals in a Co-op Insurance report, CCTV cameras are one of the most effective deterrents. Criminals also indicated that they’re deterred from breaking into properties which have motion-activated security lighting and alarm systems in place.

In fact, 89% of the ex-criminal respondents in the survey identified that one of the major tech innovations in home security – ‘connected’ security systems such as monitored alarms and CCTV – are a significant burglar deterrent. These systems work by providing:

• A visible deterrent, as their presence on a property is noticeable.
• A monitored service which means every alarm trigger is checked and appropriately responded to.
• Means of identification, as CCTV footage can be used to identify burglars. The fact that burglars know they could be identified, even by what they are wearing if their faces are covered, adds to the effectiveness of the deterrent – no one wants to be ‘caught in the act’.
• Recorded footage, which can not only be used to identify burglars but can also provide evidence for prosecution and insurance purposes as required.

For particular advice about protecting all types of property, please contact security specialists SafeSite Facilities.

Additionally, and in areas which could be vulnerable to spree burglaries, the presence of CCTV cameras on several properties across neighbouring streets can add an extra element to ‘neighbourhood watch’ – something which also deters burglars, because it means there’s nowhere to hide. This type of community CCTV also offers a means of keeping an eye on those members of the gang who are themselves ‘keeping watch’ in their vehicles, as they and their vehicle number plates may also be caught on camera.

Other effective deterrents cited in the survey include surrounding fences and secured gates. These security measures not only protect against burglary but also other criminal acts such as trespass, arson, fly-tipping and anti-social behaviour taking place on your property.

If the crime statistics in your area indicates any of these types of crimes, then it’s also time to consider protecting your property’s perimeter to create an active deterrent against other potential opportunistic crimes, as well as the act of burglary.

Finally, informing yourself and taking action to deter burglars is relevant whether the property is a commercial premises or a family residence which is occupied or vacant. In fact, securing a vacant property, such as a property awaiting refurbishment or furnished accommodation awaiting next tenant, is just as important as protecting an occupied one as these too are a target for burglars hoping to remove valuable materials such as metals.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – How to deter Burglars | LandlordZONE.

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Paragon HMO application?

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Dear Property 118ters, I would appreciate your advice on a property purchase deal.

The property is currently set up as 5 bedroom family house in greater London and is feasible to convert into 6 bed HMO. The house is not HMO compliant at present and will fire safety installation to make it compliance followed by HMO licence application.

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Bank of England – Base Rate not moving

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Breaking News:

Angus Stewart, Chief Executive of online broker, Property Master commenting on today’s news from the Monetary Policy Committee that the base rate would not be increasing said:

“It does seem as if we have been marched up the hill somewhat by speculation that base would move today but the decision to hold will be received by landlords with a breath of relief.�

Mr Stewart continued:

“Our recent Mortgage Tracker research showed that there are some good deals out there for landlords looking to remortgage or expand their portfolios.  We found that average five-year fixed rates have fallen since the start of the year despite all the speculation around base rate.  Typical savings ranged from £5 to £15 per month.  A number of two-year fixed rates had also fallen.�

Buy-to-let rates have fallen since the start of this year despite base rate rise speculation.

The cost of a typical five-year fixed rate buy-to-let mortgage has fallen since the start of the year despite speculation that at some point the Bank of England will increase base rates again according to a new Mortgage Tracker launched today by Property Master, the digital start up that uses algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market of some 2,000 plus products.

Property Master’s Mortgage Tracker also revealed that two-year fixed rates based on 65% of the value of the property and 75% of the value of the property also declined from January to May 1st of this year.  Only two-year fixed rate mortgages for 50% of the value of a buy-to-let property increased over the five-month period and then by 0.42%.  Angus Stewart, Chief Executive of Property Master says, “This is quite a significant increase and perhaps reflects that there are fewer lenders discriminating at the 50% LTV level.  Lenders are clearly taking margin here and giving back on other LTV levels.�

Savings on a five-year fixed rate buy-to-let interest only mortgage on a typical property worth £180,000 ranged from £5 to £15 per month and on some two-year fixed rates from £10 to £15 a month.

“Our findings show that there are some very good deals out there for landlords despite worries over any future increase in base rates.  The Monetary Policy Committee meets again this coming Thursday (May 10th) so we will see what happens then but there may be other factors operating in the buy-to-let market which explains the decline in costs that we have seen,� said Angus Stewart, Chief Executive of Property Master.

Mr Stewart continued: “Our findings come on the back of recent research revealing that the number of buy-to-let products currently on the market has reached a record high[i], so it could be that we are seeing landlords benefiting from unprecedented competition amongst lenders for their business.  This is very good news indeed.�

The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan on a typical £180,000 worth property.  Rates from 18 of some of the biggest lenders in the market including Barclays, NatWest, RBS, the TSB and Virgin money and BM Solutions (full list below) were tracked.

Property Master was launched almost a year ago and aims to shake up the current buy-to-let mortgage market currently served by around 12,000 mortgage brokers.  It has already attracted financial backing from a broad range of private investors including a minority stake being taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.

Property Master recently concluded a successful round of crowdfunding through the Seedrs site.  Property Master is automating what was a manual, complex process to provide landlords with a free easy to use mortgage search tool which provides a mortgage quote that’s pre-screened against each lender’s specific criteria.  Over 10,000 landlords have already tried the service and a typical re-mortgage saving is around £1,800.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Bank of England – Base Rate not moving | LandlordZONE.

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Minimum room size plans ‘fundamentally flawed’ says RLA

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The Government’s impact assessment into plans to introduce minimum room sizes are ‘fundamentally flawed’, with the RLA warning that unless the shortcomings are addressed the regulations are open to challenge by judicial review. As of October this year, a national minimum bedroom size will be introduced for all licensed HMOs, in a bit to tackle overcrowding, with […]

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