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Leasehold system still alive and kicking despite government measures

The Government is having a crackdown on what they call “unfair and abusive practices within the leasehold system”.   Research has found that 31.9% of all properties sold in the UK in 2017 were leasehold showing an increase of more than 5% on 2016.

Leasehold properties benefit from Residents Associations who work together with a managing agent to make their estate a better, safer and happier place to live.

Having the right managing agent who works with the residents to ensure everything is running properly and any faults are dealt with promptly and effectively, as well as ensuring the estate is always clean and well maintained.

Times have changed and many buyers now appreciate not having to worry about maintaining their building or the surrounding area so that they can get on with their busy lives and leave the mundane though necessary tasks to the managing agent.

Should tenants have the right to keep pets?

The Labour party wants to give tenants a default right to keep pets in their rented home.

The 2015 Consumer Rights Act says Landlords can only refuse permission if it is reasonable to do so, these reasons being the animal’s size, impact on future rental demand and possible damage.

In an about turn in current regulations landlords would have to prove the pet will be a nuisance before keeping it can be refused. This would, therefore, stop landlords being able to advertise properties with a no pet policy.

Astonishingly, the plans also include giving low income earners help with vet bills!

Apparently, the Labour believes the five million households who are forced to rent shouldn’t be denied the joy of keeping a pet.

The Party is looking to consult with landlords to see if they can give tenants the default right to keep a pet in their home, and want to design policies for all not only those fortunate enough to buy their own home.

Fifty percent of the landlords questioned by the NLA, said they are reluctant to allow renters to keep pets due to a perceived added risk of damage to the property, and the increased costs of repair at the end of a tenancy.

The NLA does support schemes that encourage landlords to allow pet owners into their homes such as the Dogs Trust “Lets with Pets”.  If landlords refuse a tenant with pets they will have to justify their decision.

Properties without gardens would be an example of those that would not be suitable for keeping some animals as it would not be beneficial to the animal’s welfare and some leasehold property covenants preclude keeping pets in the building.

We will keep you informed on how the Labour Party progresses with this idea.

 

Mortgage Rates set to be repriced upwards

Now is the time to review any assets subject to mortgages or secured loans, as rates are at their lowest for a long time for single property owners or those who own a portfolio.

The Bank of England Monetary Policy Committee confirmed its forecasts for interest rate rise were now sooner than predicted in November last year, so industry experts are warning of significant upward interest rate changes for mortgage rates in the next two to three weeks.

It is predicted that the cost of funding to lenders will be affected by the swap rates as it filters through mortgage pricing.

Nationwide and Halifax have already repriced their mortgage rates.

Landlords need to make sure they are ready for the imminent changes.