New regulator proposed for property agents - A daily roundup of all the key property news
Posted by The Oracle Group on 19th July 2019 -
INDUSTRY
New regulator proposed for property agents
The formation of a new regulator that would oversee a new regime for all property agents has been suggested by the Regulation of Property Agents working party, which will be held responsible for a statutory code of practice, and to devise a syllabus for a modular approach to the qualifications which will be required for letting and estate agents. The party was launched last year by the Ministry of Housing Communities and Local Government, and comprises a host of sector trade bodies, including RICS, Arla Propertymark, and the NLA. The party would also like to see the regulator demand transparency and use of leasehold and freehold charges, and for it to “have a range of options for enforcement action according to the seriousness of the infringement and how regularly is has occurred.”
Women locked out of housing market
A new report by the Women’s Budget Group and Women’s Housing Forum suggests that women are locked out of the housing market, as homes are unaffordable for them across England. Researchers found women need over 12 times their annual salaries to be able to buy a home in England, whilst men need just eight times their annual salaries. The report, titled “A Home of her Own, Women and Housing”, argues that some of the causes and impacts of the UK housing crisis are gendered. “Our report shows that this crisis of housing affordability is far worse for women than for men. Although women and men tend to buy or rent their homes as a couple, women are likely to find themselves unable to afford a home of their own if that relationship breaks down,” the report said.
Challenges for rural landlords
Changes to energy efficiency standards for rented homes could disproportionally affect rural landlords, according to the boss of heating trade body OFTEC. Speaking to Heating & Plumbing Monthly, Paul Rose says that Minimum Energy Efficiency Standard (MEES) regulations could prove more problematic for landlords in rural areas, as around 40% of homes in villages in England and wails were build pre-1919, making them more difficult and costly to upgrade to standard. “The reality is that rural housing stock in the UK is amongst the least energy efficient in Europe. Heat demand from these homes must be reduced where practically possible but this will inevitably prove a costly exercise,” said Mr Rose.
MORTGAGES
Demand for mortgages accelerated in second quarter
Demand for mortgages rose significantly in the second quarter of the year in a sign that the housing market is holding firm amid Brexit uncertainty, according to the Bank of England. In its latest credit conditions survey, a balance of 29.3% of lenders said that demand for mortgages had risen in the past year, compared with 1.8% in the first quarter. Economists said that the figures indicated the avoidance of a disruptive Brexit at the end of March may have provided a boost to housing market activity.
PLANNING
Watford mayor: permitted development rules a ‘disgrace’
Peter Taylor, the mayor of Watford, has called for a change in planning laws after the Planning Inspectorate ruled that 15 “oppressive” flats could be built under permitted development planning rules, overturning Watford Borough Council’s objections. The flats are between 16.5 and 22 sq m in size, well below the government’s recommended minimum dwelling size of 37 sq m. Mr Taylor said it was a “disgrace that central government has set such a low bar for the homes that people are expected to live in.”
HOUSING
Experts demand action on tower block cladding
Government fire safety advisers say that combustible cladding panels must be stripped from more than 100 tower blocks in a significant widening of the fire safety crisis since the Grenfell Tower disaster. High-pressure laminate (HPL) panels should be removed “as soon as possible” from housing taller than 18 metres, the panel on fire safety demanded. The order could affect thousands of tenants and leaseholders who previously believed their homes were safe.
LEGAL
New solicitors’ protocol for property transactions
The 2019 edition of the Law Society Conveyancing Protocol has been released, including new advice for best practice in property transactions. The new protocol aims to take account of the ever-increasing complexity of stamp duty land tax and the work of HM Land Registry to reduce requisition rates. It includes reminders to address issues early in the process which might otherwise create delays, such as restrictions in leases, and also contains new provisions in relation to lease terms. “The protocol is a tool which helps conveyancing solicitors to achieve most effectively the transfer of residential property. It aims to provide consistency across transactions and improve efficiency,” said Simon Davis, president of the Law Society of England and Wales.
Property magnate ordered to reveal source of funding
The National Crime Agency has issued the first unexplained wealth order targeted at suspected serious organised crime against a property mogul whose property is suspected of being funded by criminals. The NGA said it had secured the UWO, dubbed the “McMafia law”- one of the newest weapons in the fight against dirty money - last week against the businessman in the north of England, whom it could not name due to name for legal reasons. The court order means he must reveal the source of funds that kick-started his £10m property empire, or face losing it.
LEISURE
Biggest pub chain in £3bn Stonegate takeover
The private equity-owned company behind Yates’s, Walkabout and Slug and Lettuce has agreed to buy Ei Group, Britain’s largest pub owner, in a £3bn deal. Ei Group, formerly called Enterprise Inns, said it had agreed a deal with Stonegate Pub Company valuing its equity at £1.27bn. Including debt, the deal is worth £3bn. The combined business will have almost 5,000 bars and pubs, making it the largest company in the industry. Ei Group has just over 4,000 pubs, the vast majority freehold, and at its recent half-year results, it declared the value of its property assets at £3.3bn.
RENTAL
Rent warning for public sector workers
Martina Lees in the Times looks at the climate for buy-to-let landlords, saying tighter buy-to-let mortgage rules and cuts in tax relief on mortgage interest have pushed investors to change strategy. She cites a PwC report which suggests rents have become unaffordable for key public sector workers in London, the southeast, east and southwest. While the average earner has to spend more than 30% of their annual income on rent, the report says that the average affordability ratio in London could reach 47% in five years' time, up from 42%. PwC’s John Hawksworth comments: “We risk seeing professions that are integral to the UK's public services struggling to afford to rent in several regions.”
RETAIL
Debenhams seeking further £50m from lenders
Debenhams is preparing to ask lenders for a further £50m, in addition to a £200m facility secured in March, which has not yet been fully drawn down. Debenhams believes that its lenders remain supportive of a restructuring plan agreed earlier this year, which will see approximately 50 of its 166 UK stores shuttered, with the first round of 22 closures planned for next year.
ECONOMY
Housing market wobbles suggest all is not well with economy
As Britain’s house prices fell for the first time in six years in June, the Economist suggests that this could herald a downturn in the economy. “It is ominous that the housing market is again looking weak,” the article states, adding that “there is growing evidence that, as in 2008, weakness in the housing market is dragging down overall economic growth.” The article goes on to suggest that declining house prices will dent consumer confidence, which in turn leads them to reduce their spending.
OTHER
2019 Stirling Prize shortlist announced
The British prize for excellence in architecture has announced its shortlist for the 2019 prize, including a whiskey distillery, a train station and an opera theatre. The Stirling Prize 2019 list also includes a contemporary art gallery and a large development of energy-efficient council housing. “The Stirling Prize shortlist epitomises the enviable global reputation of UK architecture," said Ben Derbyshire, president of the Royal Institution of British Architects (RIBA). “Given the fact [that] the UK faces the worst housing crisis for generations and a global climate emergency, we must encourage their architectural ambition, innovation, bravery and skill.”
No more accidents please …
A pensioner said he cannot sell his Somerset home as 29 cars have crashed into his garden over 40 years. Alan Rice, 78, has said he wants to move but estate agents will not take on his property. Somerset County Council said it is aware of the issues and work will be carried out, but it needs major planning.
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