HSBC plans radical 40% cut in office space

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Although it is well known that HSBC is consolidating its operations to save costs, as is the case with most banks, Britain’s biggest bank has shocked the property world with its radical plans.

Headquartered at 8 Canada Square in Canary Wharf, London, the giant international bank, which is active in the Far East with its operations based in Hong Kong, says it will vacate around 40% of its offices in London and around the world over the coming years.

The move will put pressure on landlords at a time when office vacancies have equalled those at the height of the financial crash of 2008. Rents have fallen by an average of between 5% and 6% for prime office space.

Many businesses are looking seriously to their future office space requirements, trying to predict whether the pandemic will lead to a permanent shift in work patterns and lifestyle changes for staff.

HSBC’s chief executive Noel Quinn, has said that the company’s new plan to cut office space by 40% in the “long term” is driven by expectations that there will be “a very different style of working than before”

HSBC employs around 40,000 people in the UK in 66 offices across the coun­try. The company’s global headquarters, a 46-storey building in London’s Docklands, along with many more offices across London, represent a long-term commitment, it says, but this is a particularly problematic type of building to work in during a pandemic.

Property costs represent an obvious field of “low-lying-fruit” when it comes to cutting costs for banks, and with HSBC’s property costs running into billions it’s understandable that the bank will target reducing its property foot­print as and when leases come up for renewal, or through property sales. In any case, in a digital world, banks no longer likely to need the same amount of prime real estate in strategic locations.

However, HSBC’s plans run counter to the government’s drive to bring people back into offices once the lock-down is eased. Lots of secondary businesses and transport links rely entirely on the footfall provided by city office workers.

Also, HSBC’s plans run counter to those indicated by its rival banks, including Nat West, Barclays and Loyds. Both have expressed doubts that their staff will want to continue working form home, but have put off making any concrete property plans.

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Landlords have failed the housing test, say unhappy student tenants

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Large numbers of student renters are unhappy with their landlords, a new study shows.

OpenRent’s survey found that 64% rate the support provided by their private landlord or letting agent during the pandemic as unsatisfactory compared with 51% who say the same of their student accommodation provider.

According to the findings, a third report that their landlord or university hasn’t given them a rent reduction when asked since last March, although 11% had received one.

Another two thirds report feeling trapped in a rental contract they no longer wanted.

The online lettings platform found that 11% of students are currently in arrears, owing an average of £1,341; 34% of students who rent have been unable to pay the full amount at some point since the pandemic started, while 56% of students find their rent “usually or always hard” to afford.

Rent arrears

OpenRent says 13% of students owe between one to two months and 7% are more than three months behind.

The survey reveals that 63% of students have worked since March 2020.

But they’ve lost an average of £2,761 in earnings since the start of the pandemic and 76% of those working say their ability to earn had been affected.

Only 30% of students who worked have been able to access the government’s economic support schemes.

OpenRent’s findings are similar to a recent survey from the National Union of Students which showed that 22% of students haven’t made their payments due to the pandemic, 27% haven’t paid bills and more than two-thirds are worried about being unable to pay rent.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords have failed the housing test, say unhappy student tenants | LandlordZONE.

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Court N24 order opinions?

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My freeholder/landlord took me to court for non-payment of Service Charge arrears, which I disputed. I was away on holiday when the court papers were delivered and judgement was issued (CCJ).

Upon return, I immediately paid the CCJ direct to the claimant on the understanding via his solicitor that should I have the judgement set aside he would refund the money in full.

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I have the misfortune of being taken to court by nightmare tenant in small HMO?

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Hi all 118ters, I have had the misfortune of being taken to court by a nightmare tenant who rents a room in a small HMO. The tenant in themselves is not too bad but her boyfriend who has moved in with her (not in accordance with her tenancy agreement) is a foul-smelling weed head.

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PICTURES: Fire at HMO property run by convicted rogue landlord

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A rogue landlord who ignored requests to install fire safety features has been handed a suspended prison sentence after a fire gutted her five-bedroom HMO.

Nicola Selwood admitted three fire safety offences relating to the two-storey house in Holway Avenue, Taunton, that housed seven people but had only one smoke alarm.

Taunton Crown Court heard that she had been told by the fire service and local council to make changes as far back as 2008 but hadn’t done so, resulting in a fire which destroyed the house – formerly her family home – leaving her £100,000 in debt.

Devon and Somerset Fire and Rescue Service firefighters were called to the serious fire on 7^th August 2018 where two tenants had managed to escape.

One was treated for minor burns. A fire service investigation, carried out with Somerset West and Taunton Council, revealed that the fire was accidental but that Selwood had failed to carry out a fire risk assessment.

They found that the HMO had no suitable fire warning and detection system, fire doors, or safe escape route. It also had no emergency escape lighting in case of mains electrical failure.

When previously asked to carry out the work, Selwood told council officers she was no longer renting out rooms.

However, during the investigation she admitted that within a year she had started renting out rooms again for up to seven people at a time and did so up until the time of the fire. She’d even spent money on converting the garage to provide additional accommodation. 

Fire safety manager, Pete Smith, says: “It is extremely fortunate that the fire occurred during the day when most of the occupants were out. Had the fire started at a time when people were asleep, the outcome could have been very different.”

Selwood was sentenced to a nine-month prison term, suspended for 18 months.

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Property118 landlord overjoyed selling tenanted portfolio with National Residential for half a million in just 26 days

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Half a million pounds from the comfort of your sofa in just under 26 days. For a Property118 landlord from Wandsworth that’s exactly how he celebrated his week.

If you’re a landlord, and you haven’t yet heard of us here at National Residential

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Property Purchase in High Flood Risk Area?

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Hi Everyone, I am currently in the process of purchasing a house as a buy to let investment. However, the environmental report has come back and indicated this property is in a high flood risk area.

I had a conversation with the vendor

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