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Britain is home to a generation of renters who are giving up on buying their own home, an in-depth new report has revealed.
If these attitudes become reality, the shape of Britain's housing market will be fundamentally changed within a generation.
According to the report, the most in-depth research into the attitudes and behaviour of young people toward home-ownership since the credit crunch, 77% of all non-homeowners still aspire to owning their own home. However, despite this aspiration, nearly half of 20-45 year olds say Britain is becoming more like Europe where renting is seen as the norm and predict Britain will become a nation of renters within the next generation.
The perception that banks are not lending, the size of mortgage deposits necessary, and a fear of the application process has prevented "Generation Rent" from making any significant attempts to buy a home. Longer-term, only 5% of this group are making sacrifices to save for a deposit. 95% say they have no spare cash, no interest in saving for a deposit or were trying to save but failing to do so.
The report revealed widespread pessimism about lenders and the mortgage application process: * 84% say first-time buyers are put off by a belief that banks do not want to lend to them and find excuses to turn them down;
* 92% see it as hard for first-time buyers to get a mortgage, with 60% seeing it as very hard or virtually impossible;
* 67% believe there is a general perception that everyone is rejected by lenders so there is little point in applying;
* 61% say that first-time buyers do not want to go through the stress and anxiety of applying for a mortgage. |
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The Government are producing regulations to change the rules for Energy Performance Certificates. The changes are not vast but will clarify and extend some of the requirements. There is concern that non compliance may be due to a lack of clarity, when in reality it is probably more down to apathy!
Firstly the regulations will create a new look EPC. The main EPC will become a two page document. They will be registered on a central website much as before. However, reports on air conditioning systems will have to be lodged as well.
Probably the biggest shake up of EPCs are around the commissioning of the EPC. The current legislation varies between sales and rentals. In both cases the EPC must be available at the first of the following list of events:
• The point the contract is entered into. • A viewing of the property. • Giving written particulars
Obviously it will be fairly rare to achieve a letting or sale without a viewing or giving written particulars but it can happen. The revised wording will require the EPC to be produced at the earliest opportunity but definitely before a viewing or providing written particulars. The original EPC for the sales market was part of the Home Information Pack. When HIPs were abolished, this would have left the sales market without any legal requirement to provide an EPC. This problem was addressed by adding in a new regulation 5A into the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007. This section starts with the observation that the section applies when a “residential property is to be sold”.
The regulation then goes on to allow for marketing without physically having an EPC for a period of up to 28 days. This period of 28 days will be reduced to just 7 days under the new regulations.
This may have some relevance in sales but in many situations in letting the first viewing could easily have taken place. Some property could even have been let within that 7 day period.
Currently written particulars need to have the asset rating attached (the coloured bar chart, if there are two out of photos, floors plans and room dimensions).
This obligation to attach the asset rating is being withdrawn and it is being replaced with the requirement to provide the complete two pages of the first part of the revised EPC instead. Since this could apply to advertising as well, it will be interesting to see how the advertising market adapts to deal with this change.
There are a couple of technical changes around enforcement but subject to the regulations being passed, most of the provisions will start from the 1 July 2011. The requirements in respect of written particulars starts 1 Oct 2011. |
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There have been several important court judgements on the issues of tenancy deposits in recent months. In the Universal Estates case the court was asked to consider if it mattered with an insured scheme if the deposit was protected later than the 14 days in the Housing Act 2004.
They decided that as long as the deposit was protected before the court hearing, the penalty could not be awarded.
This was followed shortly by the judgement in Potts v Densley where the High Court had to consider if a deposit could be protected after the tenancy had ended. They decided, following the Universal Estates case, that as long as it was protected before the court hearing, there was no penalty.
Barely was the ink dry on this decision when the case of Gladehurst v Hashemi hit the Court of Appeal. This case essentially looked at the same issue of the situation that exists after the tenancy had ended. In this case the Court of Appeal decided that the tenant was not allowed to take court action for recovery of the deposit after the tenancy had ended.
Their decision is a serious blow to tenants and significantly reduces their protection. This may trigger a legislative change to replace the protection in this situation. |
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Over the last two months we have seen a reduction in the numbers of properties being put on the market to rent across our four branches.
It appears that due to the current uncertainty in the economy people are not considering renting their own properties.
However, demand is at a high, we currently have a large database of clients looking for properties in all the areas we cover.
Prospective tenants are finding it hard to find suitable properties.
The situation is particularly problem in the Chelmsford and Braintree areas.
It is clear that rents will continue rise as the shortage of new properties to the market continues.
If you are considering letting your property contact one of our branches immediately to find out details of our current offers. |
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We are currently looking to expand a number of our teams across our organisation.
We are looking for candidates for the following positions:-
1) Experiences Sales Valuers - the candidates must have at least 1/2 years experience in a similar post within the industry.
2) Lettings/Sales Negotiators - the candidates must have at least 6 months experience within the industry.
3) Administrator - The candidates must have experience within and office environment, with good IT skills.
We can offer you a competitive starting salary and exclusive benefits package but above all we can provide you with the opportunity to excel.
Please submit your CV's to Jobs@thelettingshop.uk.com |
The Letting Shop’s website has been given a much needed face lift in line with the recent Rightmove.co.uk census (2007/08) results demonstrating that 79% of tenants now find their next property on line.
Our new website is designed specifically to enhance communications providing prospective landlords and tenants with up to date information and allowing an accelerated level of service.
We aim to continually improve our customer provision and any thoughts, comments or recommendations would be greatly received. Please get in touch by emailing ideas@thelettingshop.uk.com
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HAVE YOU EVER CONSIDERED THAT BY LETTING YOUR PROPERTY YOU COULD MOVE HOUSE WITHOUT SELLING? THIS IS THE PERFECT STRATEGY TO MAKE THE MOST OF A QUIET SALES MARKET...
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Contact your local office today …
Colchester
48b St Johns Street
Colchester
Essex
CO2 7AD
01206 767673
colchester@thelettingshop.uk.com
Clacton-on-Sea
75 Station Road
Clacton-on-Sea
Essex
CO15 1SD
01255 433306
clacton@thelettingshop.uk.com
Braintree
2 Fairfield Road
Braintree
Essex
CM7 3HF
01376 344566
braintree@thelettingshop.uk.com
Chelmsford
3 Cornhill
High Chelmer Shopping Centre
Chelmsford
Essex
CM1 1XE
01245 346660
chelmsford@thelettingshop.uk.com
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