Tenant who tripped on path not owned by landlord wins case

An important new case has major implications for letting agents who manage properties and for landlords. It may also have implications for insurance. 
In the case of Edwards v Kumarasamy, the tenant tripped on a path outside the block of flats where he lived on the second floor, injuring his knee.
The landlord did not own the path and did not own the block. However, the landlord did own a flat within the block and the path was the essential means of access to the block.
Until now, it has always been assumed that repairing obligations only apply to what the landlord actually rents out to the tenant, and also that the landlord cannot be held liable if they have not been notified of the need for a repair.
However, in this case, the tenant took a disrepair claim under Section 111 of the Landlord and Tenant Act 1985 and, at the Court of Appeal, won his case.
Solicitor David Smith, of Anthony Gold, says this is “a big deal” for agents and landlords, and will have “serious consequences”.
Smith warns that as a result of the case, any landlord can now be sued for disrepair to areas serving their property, irrespective of ownership.
It also means that agents doing property inspections should look not just at the property itself but also at areas over which the landlord has rights, such as paths and drives.
There is, says Smith, no obligation on the tenant to report disrepair, so it is up to the landlord or agent to identify it and resolve it.
This particular case also raises another question, although one not dealt with by the Court of Appeal: paving stones that are merely uneven, rather than being in a state of disrepair.
http://www.propertyindustryeye.com/tenant-tripped-path-owned-landlord-wins-case/

Landlords will leave market if rent controls introduced

Three out of five landlords would leave, or consider leaving, the private rented market if rent controls were introduced.

New figures also reveal that the majority of landlords plan to freeze their rents in 2015.

The findings come after Residential Landlords Association (RLA) chairman, Alan Ward, warned that proposals for rent controls will leave tenants worse off.

According to the results of a survey of more than 1,000 RLA members, more than 75% of landlords either froze or cut their rents in 2014. In the current year, over 65% intend to do so again.

Speaking ahead of a debate on rent controls yesterday, Alan Ward said: “These results blow a hole through the myth that rent controls would be good for tenants.

“At a time when tenants need more choice over where they live, state-controlled rents would choke off supply, increase rents and reduce quality. It would be history repeating itself.”

Ward pointed to official figures showing that in the social rented sector, rent controls have seen rents massively outstrip inflation.

Data in the most recent English Housing Survey show that between 2008/09 and 2012/13 social sector rents increased by over 25%. In comparison, private sector rents increased over the same period by 6.5%. Inflation as measured by both CPI and RPI over this period was around 16%. 

“The reality is that rent controls would leave many tenants paying more than they do at the moment,” said Ward, “Rather than coming up with ideologically-driven ideas, proponents of rent controls need to address the root issues, namely the need to boost the supply of homes to rent.”

http://www.landlordtoday.co.uk/news_features/Landlords-will-leave-market-if-rent-controls-introduced

Fire services spread the ‘Know The Plan’ message

A number of fire services are currently running campaigns to help improve awareness of fire safety for both residents and landlords of flats, high rise buildings and houses of multiple occupation (HMOs).

They are highlighting the necessity of having a fire escape plan – that they will help landlords create – and ensuring that people know what to do if there is a fire inside their home or elsewhere in the building and who to ask for advice.

Last year, London Fire Brigade launched Know The Plan, a 12-month campaign aimed at making sure landlords and housing providers adhere to fire safety regulations and ensuring that people living flats and maisonettes in purpose-built blocks have a clear understanding of what to do in the case of a fire.

To get the message across, the informative website LINK www.knowtheplan.co.uk contains information, safety videos and downloads for tenants and landlords.

London fire commissioner Ron Dobson said, “Living in a flat is no more dangerous than living in a house, but it’s important to know that your fire plan should be different.”

The chairman of the London Fire and Emergency Planning Authority James Cleverly said: "Landlords and housing providers with legal responsibilities for flats and maisonettes in purpose-built blocks need to act to ensure their residents are safe and understand what to do in a fire."

Other services are backing the campaign. South Yorkshire Fire & Rescue is calling on residents of high-rises to ‘know the plan’ and urging tenants to speak to their landlord and ask if there is a specific fire evacuation plan for the building.

In a statement, the service said: “They should be able to tell you if, and when, a fire risk assessment has been completed. If there hasn't been a fire risk assessment, the responsible person is not fulfilling their legal duty. If this is the case, get in touch with your local fire safety regulation team.”

http://www.landlordtoday.co.uk/news_features/Fire-services-spread-the-%E2%80%98Know-The-Plan%E2%80%99-message

Bank of England's new powers to curb housing market

The government is giving the Bank of England new powers over the housing market in a bid to prevent excessive price booms and equally excessive lending by banks. 

As promised by Chancellor George Osborne last year, the Bank’s Financial Policy Committee has now confirmed it will be able to set limits on debt-to-income ratios and loan-to-value ratios for mortgages. The government is also giving the FPC powers of direction over the new so-called ‘leverage ratio framework’ for banks.

Until now the FPC could recommend these - but not enforce them. 

"We're confirming that the Bank of England will have further powers to safeguard the stability of Britain's financial system from any future risks posed by our housing market or banks" according to a statement from Osborne. 

These additional powers over the housing market - although brand new to the UK - are commonly held by the Bank’s counterparts in other countries, according to the government. 

LTV limits are used extensively in countries including Canada, New Zealand and Norway. Several other countries including the Netherlands, Switzerland and the US have already introduced leverage requirements for many companies, including banks.

The government also says it intends to consult separately early in the new Parliament on the FPC’s recommendations for it to have new powers over the buy to let market “with a view to building an in-depth evidence base on how the operation of the UK buy-to-let housing market may carry risks to financial stability.”

http://www.estateagenttoday.co.uk/index.php?option=com_k2&view=item&id=1935:bank-of-england-s-new-powers-to-curb-housing-market&Itemid=583

Winchester 2 bed unit yields 5.2% available off the market

This 2 bed modern apartment is for sale with a tenant in situ who will be paying £820pcm until July 2016. Gross Yield is a little fine at 5.2%, however costs are low on this scheme and your net yield will be 4.8%. If you would like more info please do give me a shout.

Chandlers Ford 1 bed flat yields 6% available off the market

A landlord has asked me to circulate the details of a 1 bed property he is selling. A new tenant is due to go into the property in March on a 1 yeat lease at £610pcm. Gross yield would be in the order of 6% and Net 5%  after costs. The property is well located in Chandlers Ford about half a mile from the train station. Its a nice unit at a good entry price in a good location with the added benefit of haveing a tenant insitu. If you would like to know more just give me a call.

Southampton gets buy 2 let plug in the Sunday Times

It may not be the smartest spot on the south coast, but with a £3bn injection of cash on the way, Southampton is an increasingly attractive port of call, especially for buy-to-let investors. All ashore

Glamorous, affluent, stylish: they’re not words usually picked to describe Southampton, better known for fervent Saints fans and as a departure point for velour-bottomed Caribbean cruisers. But with a master plan to transform the Hampshire city’s fabric — and fortunes — well under way, it is already being marked out as the next investment hotspot, and even seems poised to score some surprising wins over its more obviously attractive neighbours on the south coast.

Admittedly, it lacks the chic bohemian vibe of Brighton, the millionaire boatie milieu of Poole (and its hefty mooring fees) or the well-preserved period architecture of Winchester — but, like its football team, which to general amazement is riding high in the Premier League, it has potential by the bucketload. The council is planning to bring more than 24,000 new jobs, 5,000 homes and £3bn worth of investment into the city by 2030.....

It's a no- brainer, then, that Southampton has shot up the league table of the best places in Britain to invest in property. Data prepared exclusively for the The Sunday Times by the property consultants Hometrack shows why it is so popular with Landlords in particular: the average price of a flat is £125,800 compared with £181,600 accross southeast England; and the average gross yield is 5.9% against 5% in the wider region.....

HSBC is even more bullish. In a seperate survey, the bank claims Southampton is England's top buy-to-let spot, with a typical rental yield, recorder last summer , of 8.73%. And the online property portal Rightmove says the city will see capital values jump by 43% in the next 5 years - the largest rise in England...

Follow the link for the full article.
http://www.thesundaytimes.co.uk/sto/style/homes_and_gardens/Move/article1514085.ece