Property News of the Week
Welcome to this week’s property news roundup. The top stories from across the web to keep you up to date and informed.
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Government announce changes to regulate the estate and letting agency sector
Today the Regulation of Property Agents working party, launched last year by the Ministry of Housing Communities and Local Government, outlined a number of key proposals designed to regulate the letting and estate agent sector and improve working standards amongst agents, improving the service delivered to the consumer.
Amongst these proposals were: -
- Scope of new regulations
- Details of a new regulator to uphold them
- Licensing proposals for all agents
- Codes of practice to adhere to
- Qualification requirements to operate in the sector
- Proposals on leasehold and freehold charges
- Assurances and enforcements
Director of Benham and Reeves, Marc von Grundherr, commented:
“Any form of regulation is a step in the right direction and a step that the industry has been needing for a long, long time. Really, we would like to see this regulation stretch to all of those operating in the sector, whether they be a letting or estate agent, a property listing portal or a short-term letting site.
To date, a lack of licensing, a code of practice to adhere to, and the requirement of qualifications to actually operate as a property professional have resulted in a number of below-par agents dragging the good name of the industry down with them.
This clear show of intent from the government should help sort the wheat from the chaff, raising the operating standards of the industry and the service provided to tenants and home buyers and sellers across the nation.
Hopefully, it equates to more than just hot air and the assurances and enforcement measures mentioned in today’s statement will be upheld to the letter.”
Only these professions can afford to survive in the UK rental sector
Experts believe that no more than 30% of your income should be spent on rent, while innovative lettings platform, Bunk, requires a tenant’s salary to be 2.5 times the annual rental cost of a property. But how realistic is it for a tenant to tackle the UK rental market head on and which of the top 20 most popular professions provide a salary high enough to do so?
Bunk looked at the top 20 most popular professions, their earnings, and how this compares to the average cost of renting in the UK, to highlight the difficulty faced by the nation’s renters, as well as the challenge for UK landlords when searching for a financially viable tenant for their property.
Based on the research, a landlord could be flying high if they secure a pilot in their rental property. With a net salary of £4,466 per month, rental costs account for just 15% of their pay.
With an average monthly salary of £3,763, a doctor is the next best bet for a landlord with rental costs accounting for just 18% of their pay.
Other professions to get the financial thumbs-up of 30% of rent to earnings are a lawyer (23%), a police officer (26%), an engineer (26%) an IT technician (27%), a surveyor (27%), a business analyst (27%), an accountant (30%) and a teacher (30%).
Amongst the professions that fall outside of this financial stress test are jobs such as a plumber (34%), nurse (36%), and ironically the very people who work in the industry, estate agent, who see 45% of their total income lost on the cost of renting.
The worst off are hairdressers, with rental costs accounting for 71% of the average salary in the profession.
However, with the notoriety of the London rental market, it’s no surprise that every profession in the list is spending more than 30% of their income on rent, with a lawyer the best-off at 42% per month, while a hairdresser is paying rent at 151% of their average monthly pay.
Property bosses angered by plans for rent control in London
Mayor Sadiq Khan has called for rent controls to be imposed on London landlords to help protect tenants. However, his plans have angered property bosses who claim that investors would be driven away from building new homes.
Khan is calling on the Government for extra powers to cap rents in London and came in a series of proposals including ending “no-fault” evictions.
Khan also floated temporary exemptions from rent controls for build-to-rent homes and tax incentives to encourage investment. However, he would need parliamentary support to gain new powers, which he is unlikely to get under the current administration.
But this has caused upset within the industry as insiders say that these new rules could reverse a growing trend of investors coming into the sector to build high-quality rental flats in response to surging demand as many Londoners can’t afford to buy homes.
Property of the Week: The home of the real-life Peter Pan
We all know the tale of Peter Pan, the boy who never grew up and now, here is your chance to live in the house that inspired that great tale.
The Llewelyn Davies children: George, Jack, Peter, Michael, and Nicholas, were befriended by author JM Barrie after meeting him while playing in a local park in 1897, and served as his muses for the Peter Pan character as well as other children in his books and plays. He later became their guardian after both their parents died.
31 Kensington Park Gardens in Noting Hill has since been converted into apartments and this two-bedroom garden flat is on the market for £1.65m
Kensington Park Gardens is within close proximity to Portobello Road and the fashionable shops and restaurants of Westbourne Grove. Notting Hill Gate and Holland Park underground stations are also nearby.
Charlie Brandstatter, manager at Dexters Westbourne Grove, says: “This attractive garden flat makes for the perfect London pied-a-terre or home for a young professional.
“This is a unique opportunity on one of Notting Hill’s premier streets. We are expecting very good interest in this property because of its enviable location, great quality refurbishment with the interesting history being a lovely additional fact.
“It is little wonder this home served as inspiration for the Peter Pan stories, as the architecture and lovely gardens are just magical.”
