Earlier instruction from this year of 236 apartments in South West London

Updated news of instruction in South West London –

Inspired Property Management are pleased to announce this development in South West London totalling 236 apartments across 3 buildings, is under management of the expert IPM team.

New Instruction for IPM of 29 units in Essex

New Instruction located in Essex –

Inspired Property Management are pleased to announce the new instruction of Lexington & Maddison House in Essex.

The property is now under the management of Inspired Property Management.

Latest update on the Section 21 Reform

The balance of power shifts further towards residential tenants as proposals for radical leasehold reform continues.

The term ‘leasehold reform’ is most commonly being used to refer to the government’s current proposals to rework enfranchisement and commonhold legislation. However, in fact the proposed changes go much deeper into the leasehold system than it might appear, with the most recent consultation focusing upon PRS (Private Rented Sector) in particular.

Let’s remind ourselves of some key dates in the evolution of private sector residential tenancies and the government’s proposed changes.

A brief timeline

1970s

Rent regulation has been around since the First World War and the legislation was eventually consolidated into the Rent Act 1977 which governed most residential tenancies up until 1989. The were some exclusions to this, including lets to limited companies, resident landlords, or those with very high or low rents. These remained ‘common law tenancies’.

Rent Act tenancies were different in three main ways: they were subject to a ‘fair rents’ register; offered long-term security of tenure; and rights of succession.

1980s

However, with the introduction of the Housing Act 1980, it became the Conservative party’s policy to dismantle rent regulation. Regulation for all new tenancies was abolished by the Housing Act 1988, leaving the basic regulatory framework as freedom of contract for the landlord to set any price, thereby leaving rent levels to the market.

Since then most residential tenancies have been assured tenancies, and primarily assured shorthold tenancies, or ASTs.

In addition to paying a market rent, security of tenure was removed by giving the landlord of an AST the right to regain possession of the property at the end of the fixed term (or, if the fixed term is less than six months, six months after the tenancy began), as long as they give two months’ notice (section 21 of the Housing Act 1988).

2018

The current government publishes a consultation paper entitled ‘Overcoming the barriers to longer tenancies in the private rented sector’. The paper notes the following measures that are being introduced, namely:

  • Banning letting fees to tenants and capping tenancy deposits to ensure that tenants have more money in their pockets
  • Insisting that all landlords are members of a redress scheme so that tenants have quick and easy resolution to disputes
  • Ensuring all letting agents are registered and are members of a client money protection scheme to provide assurance to tenants and landlords that their agent is meeting minimum standards

However, they also note that “the change in size and make up of the private rented sector has led to growing need for longer, more secure tenancies than the minimum six months offered by the assured shorthold tenancy regime”. The government accordingly launches a consultation seeking views on longer tenancies in the private rented sector, which proposed a new, three-year tenancy model.

April 2019

The government published its response to the ‘Overcoming the Barriers to Longer Tenancies in the Private Rented Sector’ consultation and announces that for assured shorthold tenancies it ‘will introduce a generational change to the law that governs private renting. This government will put an end to “no-fault” evictions by repealing Section 21 of the Housing Act 1988’.

They identify that it will be important to find a balance between giving tenants greater security whilst ensuring landlords are able to recover their property if needed – ‘We do not want to discourage investment in the sector or affect the supply of good quality rental accommodation’.

Therefore, to ensure landlords have confidence they will be able to end tenancies where they have legitimate reason to do so, it is stated that ‘we will also strengthen the Section 8 possession process, so property owners are able to regain their home should they wish to sell it or move into it’. These will be in addition to the existing grounds which allow landlords to evict tenants who don’t pay the rent or commit anti-social behaviour.

July 2019

On 21 July 2019, the government published a further consultation: A New Deal for Renting: Resetting the balance of rights and responsibilities between landlords and tenants.

This consultation confirms that, at the same time as repealing section 21, the government proposes to remove the entire AST regime. This means that in future, the default position will be that a tenancy is a periodic assured tenancy unless the landlord and tenant have agreed a fixed term in writing. A tenant under an assured tenancy may not be evicted unless the landlord can provide grounds (under Schedule 2 of the Housing Act 1988) or where a break clause has been agreed between the landlord and the tenant.

The consultation closes on 12 October 2019.

What’s next?

Once the consultation closes we can expect draft legislation to effect the government’s proposed reforms.

Interestingly whilst the government moves towards reintroducing security of tenure, the London major Sadiq Khan has confirmed he will demand an overhaul of tenancy laws in a campaign for London rent controls that is set to be the cornerstone of his 2020 re-election campaign.

The government has commented on Khan’s proposal by stating that its proposals to abolish no fault evictions and ending letting fees “will create a housing market that truly works for everyone – in direct contrast to rent controls which could drive responsible landlords out, could reduce investment in high quality housing and ultimately push rents up”.

The good news for tenants is that in the current political climate, both parties appear to have identified a need to redress the balance of power and improve the position of renters.

However, it remains to be seen whether the requirement for a landlord to prove a ground for possession every time they want to terminate a tenancy may well make some reluctant to let out their properties in the first place, reducing the available supply.

The responses to the consultation will certainly make for interesting reading, and both landlords and tenants would be well advised to have their say whilst the government is listening.

Source courtesy of News On The Block

Merry Christmas & Happy New Year

The team at Inspired Property Management would like to wish all our tenants and clients a very Merry Christmas and a Happy New Year.

We look forward to seeing you all in 2019.

Our offices will be closed from the 17.00pm on Friday the 21st December and will reopen again on at 9.00am on Wednesday the 2nd January.

For any emergencies out of our normal working hours, including flood issues please contact the emergency number below.

Urgent maintenance or emergencies: 01302 249 349

To view our latest news please visit our website

The Rise of the Millennial Renter in 2017

Millennials are anticipated to overtake Baby Boomers as soon this year, as the largest generational segment. In addition to the size of Gen Y, their potential buying power has grown to upwards of £100 billion annually.

Whether it’s the close proximity to public transportation or a pet-friendly atmosphere, there are a few ways to make your property more appealing to Millennials:

What is a Millennial?

Birth Year: Early 1980’s to early 2000’s age bracket (approx. 18 – 35 years old)

Why Millennials?

They are the next generation of buyers who are still trying to get on the property ladder.

Millennials are making up a quarter of the UK population and they are predicted to hit the 17 million mark by 2019. In the Guardian article written last year, it states that there are around 16.2 million Millennials in the UK.

It’s all on-line

digital renters

This is the digital generation and everything is done on-line, which is why our Tenant Portal is an easy way for all our tenants to manage and pay their service charges easily and efficiently.

Being transparent

It’s important to show every breakdown of the service charge and what the costs are investing into. This generation want to be more involved and want to see the demonstrated value.

Pet friendly

It’s all about man’s best friend, Millennial’s are pet lovers so it’s important the leases are adapted to reflect this. Why not have a pet friendly apartment block within your development with a dog walking area?

Green living

At least 7 out of 10 Millennials recycle paper, glass or cardboard

In the moment

They want to be near to restaurants, supermarkets, gyms and nightlife as they want everything now.

 

2017 is going to see a rise in renters so make sure your development is the one they choose. For more information about our property management services, please contact a member of our team.

What does the Autumn statement mean for Tenants and Landlords?

Autumn Statement 2016: What does this mean?

Chancellor Philip Hammond has given his first Autumn Statement aimed to help families who are ‘just about managing’. (JAM’s)

In his first major economic speech since the UK voted to leave the EU, the Chancellor reiterated that “Britain is open for business” and pledged to “build an economy that works for everyone”.

His statement including major announcement on housing, benefits and tax, but failed to deliver any cuts on stamp duty.

Tenants will no longer be required to pay upfront fees that average £337, in a change aimed at helping the 4.3 million households that are living in private rental housing.

“Landlords appoint letting agents and landlords should meet their fees,” Hammond said.

The change should be introduced “as soon as possible”.

Mr Hammond has also announced the Government is investing £1.4bn in an effort to deliver 40,000 of new affordable homes.

Hannah Maundrell from comparison site, money.co.uk, said: “There’s little doubt tackling this ridiculous ‘tax’ on renters will make it easier and more affordable for people to move without having to borrow cash to cover the cost. The fact some people have to resort to payday loans for moving fees simply can’t continue.

“Scrapping letting agents fees is a smart move but the government need to make sure they think about damage limitation. Landlords could simply hike rents if they’re made to pay the difference.”

The government heralded a step change in its ambitions for addressing the housing supply shortage, pledging £1.4bn to build 40,000 additional affordable homes, an extra £2.3bn housing infrastructure, and a relaxation of financing restrictions on government grants. (to permit the financing of affordable rented housing).

There was little succour for Buy-to-Let landlords, as a ban on letting fees to tenants will doubtless see these costs passed on to landlords. This may be counterproductive in the longer term as it could translate into higher rents and may also lead to an increasing number of Buy-to-Let landlords exiting the market. The extension of the Right to Buy programme will also reduce rental stock. These measures may therefore cause further upward pressure on rents, which in London are already expected to grow faster than property prices over the next 5 years.

The rental sector is expected to provide an increasing percentage of housing supply over the next decade, as much of ‘generation rent’ are unable to afford to buy a property, especially in London. The moves today to boost the supply of affordable rented homes, coupled with previous initiatives regarding the emergent Build to Rent sector, signal that the government is committed to supporting the rental market, and increasingly regards it as playing key part in addressing the housing shortage.

David Poppleton, Director at Inspired Property Management welcomes these moves to improve the rental sector, stating that ‘Renting must become an acceptable alternative tenure and IPM will work positively to implement these changes without compromise’ .

Image courtesy of gov.uk website for more information on the Autumn Statement please click here

IPM’s New London Office

Inspired Property Management have moved to new premises in London located to the north of the Imperial War Museum, close to Lambeth North Underground Station.

The Chandlery consists of three buildings with an urban courtyard feel to the design set within the historic site of Melina Place, a prime site in the district of Southwark. The new office for IPM creates further opportunities for growth and expansion in line with the recent successful contracts wins in and around the London area.
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David Poppleton, Director advises, “Year on year we have gone from strength to strength with various contract wins due to our adaptability by listening to our customers and making sure the developments we manage provide a lifestyle and a home.”
For more information about the services offered by IPM, why not browse the website further or contact a member of the team to discuss your development requirements.
Image Source: Rightmove