Yesterday, James Brokenshire, Secretary of State for the Ministry of Housing, Communities and Local Government (MHCLG), announced a new Housing Complaints Resolution Service for the entire housing market to ensure both homeowners and tenants know where to go when things go wrong. For the first time ever, it will mean that private landlords will be legally required to join a housing redress scheme or be fined up to £5,000 if they fail to do so. This will boost protection for millions of renters across the country. Homeowners of new builds will be better protected too as the government has reiterated its commitment to establishing a New Homes Ombudsman which will protect home buyers’ interests and hold developers accountable. Click here to read the full press release.
A conveyancing solicitor has been jailed for seven years in prison after he was found guilty of three offences of money laundering over a period of five years. The court heard that Ross McKay provided conveyancing services on over 80 properties to a criminal gang in order to launder money made from drug-dealing, tax evasion and mortgage and property fraud.
The judge told McKay: “You were expected to be a person of utmost integrity and honesty. You fell far short of those high standards of professionalism, trust and integrity that are to be expected of a solicitor. You failed, as was your duty, to uphold the law and the proper administration of justice.
“By your actions, you enabled criminal property to be acquired on a significant scale and chose to involve yourself in the activities of those involved in crime, organised crime and, in the case of Mr Black, drug dealing.”
Click here to read more.
RICS have supported findings from the Shelter Commission’s report regarding their vision for social housing, saying it is a definitve analysis of how we have arrived at today's housing crisis and RICS believe the recommendations must be picked up and driven forward by government.
The below graph from Shelter shows the historic housing data plus what it would look like if the vision was applied.
RICS have long called for more government resources to improve the housing sector and welcomes the opportunity to work with Shelter to drive the Commission’s recommendations forward. Click here to read more from RICS.
The UK House Price Index for November 2018 has been published. It shows that on average, house prices have fallen by 0.1% since October 2018. However, there has been an annual price increase of 2.8%, which now makes the average property value in the UK £230,630. The average house price in England alone is £247,430. The greatest annual price rise was the West Midlands, which is up by 4.6% and London saw the largest annual price fall by 0.7%.
Click here to read the full release.
Sava are pleased to report that last year saw renewables for electricity generation rise to a new record and overall electricity generation fall, as explained in this article.
The article highlights that electricity generation in 2018 fell to the lowest level since 1994 at an estimated 335 terawatt hours. Also, the electricity generated per person has fallen to its lowest levels since 1984! That's pretty impressive considering how many more gadgets and devices we use nowadays. Low carbon power sources accounted for more than half of UK electricity generation - that's something we should be proud of! Click here to read more.
We have created a new Certificate in Residential Valuation, designed for existing RICS members who qualified via a different pathway but now want the knowledge and skills to be able to offer residential valuations or who are returning after a career break. Members of other professions with rights of direct entry to RICS may also be interested (e.g. CIOB, CABE etc.)
Residential valuations in the UK are required for mortgage lending, as well as for probate, investment decisions, tax, and matrimonial disputes and of course private clients.
Currently there is no vocational qualification available for existing surveyors and others who have deep understanding of residential building construction and pathology but have limited valuation skills. This certificate will be a mix of both training and assessment. Candidates will carry out valuations on a variety of real properties employing a range of valuation techniques to demonstrate that as well as having the requisite valuation knowledge, they can consistently apply that knowledge. In this way, the Certification in Valuation is different from just doing CPD in valuation.
On Wednesday 17th February 2019, we will be hosting a Webinar where our Managing Director, Austin Baggett and Director of Surveying Services, Hilary Grayson will be presenting and answering any questions.
It will cover:
- How the qualification has been designed for existing building professionals who want to gain the knowledge and skills to be able to offer residential valuations
- The roles and activities that candidates will be able to successfully undertake upon completion
- An overview of the training and how learners are assessed
- How the qualification leads to entry into the RICS’s Registered Valuers Scheme
- Intakes and investment required
If this qualification interests you and you would like to join us for the Webinar, you can book your free place here. If you would like to discuss the qualification with one of our course advisors, please give us a call on 01908 442158.
The BlueBox Roadshows are back! The world of survey and valuation is changing. With talk of technology, PropTech and new RICS Survey Standards - what choices are available? Join BlueBox Partners at their annual Roadshow to learn about:
- Property Inspections - How to choose the type of survey YOUR customers need and YOU want to do.
- Future Valuations - Are the valuation robots going to take over? It will cover how we can use technology now and how it will shape our future.
- What Conveyancers and Property Lawers want. An e-conveyancing update and an overview of what may impact the way we carry out surveys and valuations in the future - and the risks.
- Ground Risk and Structural Movement - find out how technology is being used to assess risk in mining and ground movement.
You will also obtain 6 hours of CPD. See below for a list of dates and venues:
March 1st Swindon - The National Self Build & Renovation Centre
March 11th Manchester - The Life Centre
March 27th Kettering - Wicksteed Park
Happy New Year everyone, we hope you had a wonderful Christmas break. It's back to business as usual now, but, to ease you into the New Year, we thought we would share Rightmove's list of six super healthy homes for 2019. You could certainly stick to your New Years resolution of being fit and healthy if you lived in any of these homes, given that they all have a spa and some even a gym! Prepare to be a little jealous…click here to see more.
The University of Salford have dismantled a terraced house and re-built it in the university’s School of the Built Environment. The purpose of this experiment is to look for ways to make the country’s homes greener, cheaper and warmer. The research has identified that increasing loft insulation from 100mm to 270mm can make a 5% saving, drawing the curtains across a single glazed window can save around 30% of heat normally lost, and turning down heating thermostats or unused radiators off can make a 40% saving! Lead researcher, Richard Fitton, explains that to make substantial savings it takes retrofit measures such as floor insulation, wall insulation and new windows and doors. These measures could make huge savings to the poorest households and really reduce fuel poverty as well as help our emission targets. Click here to read the article from the BBC and here to visit the university's page directly.
Sava are delighted to once again be hosting the only careers fair in the UK dedicated to the Residential Surveying industry. The event will take place at the Ricoh Arena, Coventry on 28th March 2019, 10am-4pm.
2018 saw over 200 delegates meeting with 20 surveying firms plus industry experts such as RICS, RPSA and BlueBox. Larger firms included Countrywide Surveyors, Connells, e.surv, and Legal & General Surveying Services. Several firms offered candidates roles following the event.
The ambition is that 2019 will be an even larger event with space for 30 exhibitors and will include an area dedicated to the self-employed surveyor.
The event is free to attend and you can register your interest here.
Confirmed exhibitors for 2019 include:
We still have space for exhibitors so if you are interested in exhibiting at this event, please contact us on 01908 442265 for more information.
You may have seen in the news recently that hundreds of new build properties have been built with weak mortar, causing the mortar to crumble and expose the cavity and insulation. A recent BBC story (here), describes how one homeowners’ mortar was tested and it was found that the amount of sand was almost three times higher than recommended. It isn’t clear why weaker mortar has been used, and the non-disclosure agreement is making it difficult for the media to understand the full picture. To get a better idea, we found an article from New Home Blog (here) which looks at the NHBC warranty, standards and responses to complaints of crumbling mortar.
It prompted us to research a little more about similar issues with brickwork. We found an interesting article on www.buildingdefectanalysis.co.uk from November 2016 where David Wilson site was inspected and found to have ‘the worst brickwork we’ve ever seen’. The article (here) includes some great photos to illustrate the type of defects found such as poor setting out, failed mortar bed joints, inconsistent width and depth of mortar joints and out of plumb walls.
It's quite an interesting topic. Have you found any similar issues whilst inspecting property?
Photo source: BBC
John Baguley, Tangible Assets Valuation Director at RICS, has provided some comments regarding the latest Red Book.
To provide some clarity over the latest Red Book (effective Jan ’19), while it contains a new residential mortgage specification, the existing specification which members currently work to, is still recognised and in existence. This means that at this moment in time, all residential practitioners can continue operating to the same rule book as they have since its publication in the last Red Book (2014 amended 2015).
The proposed changes to the Red Book were fully consulted on during much of 2018. However, in view of comments which emerged shortly before publication, we felt that we needed time to consider whether the proposed changes were appropriate. It was important however not to delay publication of the Red Book itself as it contained changes affecting valuers operating across a number of asset classes in the UK. We proposed to BSA, UK Finance and the RICS Residential Board that further dialogue should happen, and we also proposed that while doing so the current specification should remain, meaning we could continue consulting without imposing a new specification before being ready to do so. We all felt this was a sensible compromise.
There has been a brief summary from Ben Elder about the Red Book on the RICS website. The web announcement was just a small part of a wider announcement and the fuller communication refers to the residential part and next steps. This shorter version from Ben should not be taken as saying the new residential specification is the only one in existence, it is for the time being as said above. Although this confirmed within VPGA11 itself.
Turning to next steps, RICS is engaging with UK Finance and BSA and other relevant stakeholders. All views and suggested changes will be considered and either a new specification will emerge, or it will be confirmed the specification in the latest Red Book stands. The 2014/15 specification will then be formally withdrawn. But to reiterate, at this moment in time, the specification in the Red Book January 2014 (revised April 2015) is still recognised and in existence.
Other matters relating to Residential
The residential space is busy, several pieces are in the pipeline including leasehold, comparable evidence, new build and Japanese Knotweed.
Government continues to engage with and seek the views of RICS, and colleagues in London are responding to several consultations including leasehold reform and leasehold regulation. We are also working on a big piece of work overhauling survey standards and contributing to international fire safety standards in relation to cladding.
The government are proposing to create a new Housing Court to provide a single path of redress for landlords and tenants and are seeking the views and opinions of people using courts and tribunal services in property cases. This is part of the government’s commitment to ensure those who rent or own their home have a safe and secure place to live and it recognises the important role that private landlords play in supporting the UK economy and providing homes to many around the country. Zoopla have outlined why it’s happening and who it affects in their article here.
Click here to read the call for evidence from the Government.
A landlord has been found guilty of breaching Regulation 36 (4) of the Gas Safety (Installation and Use) Regulations for failing to ensure a proper Gas Safety Check on his tenanted property. The contractor he instructed was not a member on the Gas Safety Register which he failed to check, he also admitted to the court that he had produced the fraudulent certificate himself. The investigation also found that he attempted to bribe a prosecution witness prior to the trial to change their evidence.
The result was 26 weeks in prison with a two-year suspended sentence, as well as 240 hours of unpaid work. Health and Safety Executive (HSE) inspector Simon Jones says “There can be no excuse for a landlord to ever falsify a gas safety certificate and this sentence should send a clear warning to all landlords’ that the courts take such matters very seriously.
“Landlords must ensure that only Gas Safe Registered engineers work on gas appliances at their tenanted properties. A landlord can check that a person is registered on the Gas Safe Register website and these checks are free and quick.”
Earlier this year The Ministry of Housing, Communities and Local Government published the English Housing Survey which looks at the energy efficiency of the housing stock using present-day statistics. It was interesting comparing the data held for the housing stock from 1996 in comparison to 2016 so we have produced a handy infographic highlighting a few key statistics. Fortunately, there has been a noticeable improvement, likely thanks to the various energy efficiency schemes such as Warm Front, Greendeal and ECO, to name but a few! You can read the full survey here.
Many people continue to live in tower blocks throughout England with unsafe cladding, even 17 months after the Grenfell Tower disaster. In this article from the BBC, it highlights that more than 400 high-rise residential buildings are still covered in the same material as that blamed for the rapid and disastrous fire spread on Grenfell Tower in June 2017.
One of those blocks even had a fire in February this year, understandably making residents anxious and frustrated.
The Building Safety Programme have issued this graph which shows the status of high-rise blocks with Aluminium Composite Material present in the cladding where it’s unlikely to meet buildings regulations.
You can read more on this story here.
The Ministry of Housing, Communities & Local Government have published the affordable housing supply statistics for the period April 2017 to March 2018. The statistics look at the number of affordable houses that have been delivered in England and analyse the data in comparison to previous years. Check out our infographic below for a snapshot of the stats or click here to read the full release.
Chris Rispin, Managing Director of BlueBox Partners has provided his comment on the latest Red Book supplement.
Ben Elder, the Global Director for Valuations, issued a statement last week advising of the release of the UK supplement to the Red Book:
“The UK national supplement augments the Global Red Book for valuations that are subject to UK jurisdiction. The latest edition published on 14 November is effective for valuations where the valuation date is on or after 14 January 2019. The previous edition is effective for valuations where the valuation date is on or after 6 January 2014 (with certain elements effective from 1 January 2015) but before 14 January 2019.”
However, he did not mention that the residential sections of the supplement principally VPGA 11-14 have been amended but without full consultation and that will take place in coming weeks. In the overview for VPGA 11 it states as follows:
“Most lenders have standard terms of engagement and in many cases these refer to and expressly adopt the RICS Residential Mortgage Valuation Specification contained in UK Appendix 10 of the January 2014 (revised April 2015) edition of the RICS Valuation – Professional Standards UK. This Specification may continue to be adopted where agreed between the parties (and will be regarded as consistent with the guidance in this UK VPGA) subject to cross-references to the 2014 Global Edition now being read as relating to the equivalent sections in the 2017 Global Edition. In Scotland, regard must also be had to UK VPS 2.
It is anticipated that an updated version of the Specification will be developed in liaison with UK Finance and any other key stakeholders and published in due course. Any consequential changes to UK VPGA 11 will be made if necessary.”
What this means is that a Surveyor, and more particularly a valuer, will need to ensure which edition of the Red Book is to apply and get this confirmed in writing. It will be necessary to bear in mind that the 2014/15 version is slightly out of date in certain respects and that the new version has not been agreed, principally by UK Finance, who are the trade body for the lenders nor by the Residential Survey and Valuation Group who are the advisory working group to the RICS.
Therefore, Surveyors should check that if they are using the revised supplement, they are complying with the recommendations in that version.
For example, in VPGA 11.1 it states the following under the Valuer’s role and remit:
“The remit of the mortgage valuer is to provide an objective valuation opinion having regard to the lender’s policy and requirements.”
This is new wording and is ambiguous as it suggests that the lenders’ policy and “requirement” can overrule an objective valuation and how many times has that been a dilemma in the past!
Does “Requirement” mean the broker or keen mortgage salesman insists that the valuer ignore something? If the client wishes to change the objective requirements, then they do this via a special assumption or similar otherwise independence and objectivity are lost.
This also totally ignores the fact that the valuer has a duty of care to the applicant to the mortgage. So be careful if you are required to use the new version of the UK Supplement.
40+ organisations from around the world have come together and appointed 21 fire safety experts to develop landmark industry standards to address fire safety in buildings in the public interest. The group, consisting of local and international professional bodies and standard-setting organisations, is known as the 'International Fire Safety Standards Coalition' (IFSS). As international investments in property are increasing, there is a need for consistent and high-level global principles.
Gary Strong, Global Building Standards Director at RICS, and Chair of the IFSS Coalition says:
"The Grenfell Tower fire focused the world’s attention on how many buildings are threatened with the prospect of failing fire safety standards. All over the world we see the need for more high-rise structures, some residential, some commercial and some mixed-use buildings, particularly with increased urbanisation in cities. Our concern is not with the height of these buildings but with the risks they pose in the absence of a coherent and harmonised approach to setting global standards in fire safety.
The effort by the IFSS Coalition aims to address this concern and bring together the design, construction and management aspects of ensuring fire safety of building assets in the public interest."
You can read more about this in the RICS press release here.
BRE and Loughborough University have completed the first phase of a new ‘dementia-friendly’ demonstration home at BRE’s Watford Innovation Park.
The intention is to educate housebuilders, carers and relatives on how to better support those who live with dementia.
The design principles include:
- Clear lines of sight and colour-coded paths through the home that help guide people towards each specific room
- Increased natural lighting, which is proven to help people stay alert during the day and to sleep better at night
- Automatically controlled natural ventilation to provide good indoor air quality
- Noise reduction features, to reduce stress
- Simple switches and heating controls, and safety sensors in high risk areas such as the kitchen
- Homely, simple and familiar interior design to help promote rest and relaxation
You can read more here.
-Red book changes
The latest Technical Bulletin for residential surveyors published jointly by Sava and BlueBox is now available. You will need to be logged in to view the full bulletin.
If you are not already logged in, please click here to log in. If you do not yet have an account, please click here to register.
This bulletin aims to bring you quality technical information that will help you in your day to day work and includes articles on:
Storm Damage and Insurance
This article explores how building insurance policies cover financial loss caused by storm damage and considers the implications for surveyors when reporting on defects and deficiencies.
Chimneys and Flues
This article looks at the evolution of the chimney, explores the construction of chimneys and flues and the types of defects that can arise. It also looks at hygroscopic salts and damp on chimney breasts.
In this article, we explore why verbal reporting is so important for clients and can be a crucial element of excellent customer service. But it is a skill that surveyors need to develop, so we give tips for better verbal reporting. John Wheatley MRICS shares his extensive experience.
The Red Book
The RICS Valuation Professional Standards (the Red Book) provides a framework to ensure that valuations are consistent, transparent and produced in accordance with international valuation standards. In this article, Fiona Haggett FRICS looks at the changes for 2018.
We explore what Liability Caps are and how they work. Marion Ellis MRICS brings draws on her expertise as a surveyor and Customer Experience Strategist to explain how they affect clients.
In this article we explain what is meant by ‘Down Valuations’. Chris Rispin FRICS explains what the surveyor is trying to achieve and what a seller can expect.
The Boiler Plus regulations were introduced in April 2018. Dr Lisa Blake looks at how these regulations affect boiler installations, the technologies promoted by Boiler Plus and the difference between an ErP boiler efficiency and a SEDBUK efficiency.
To read the full bulletin, please click here. You will need to log in or register to view the full bulletin - it only takes less than a minute to create an account. We simply ask for your email address and name. We will never pass your details onto a third party and we will not add you to any mailing lists. By signing up, not only will you have access to all editions of the Technical Bulletin, but you will have access to a growing library of technical information and news articles which are fully searchable.
If you have any queries regarding setting up your account, please contact our support team on 01908 442105 or at email@example.com
The Government have announced, following a public consultation, amendments to the Minimum Energy Efficiency Standards (MEES) regulations. The MEES regulations came into force on 1st April 2018, you can read more here. Subject to parliamentary approval, these amendments will come into force during 2019.
Landlords will be required to cover the costs of energy efficiency measures up to a cap of £3,500. Previously, the regulations required third party funding to be available. The impact of the new Landlord contribution is hoped to bring 139,000 homes out of F and G EPC bands and into an E band, saving the tenant, on average £180 per year. Any third-party funding available will be included in this cap, for example if Green Deal Finance of £1,500 was secured for a measure, the Landlord contribution to get the property to an E would be a further £2,000.
The high cost exemption for landlords will now require 3 independent quotes from installers and will only be available for homes where energy efficiency measures will cost more than the £3,500 landlord contribution.
The ‘tenant consent exemption’ will be removed. This exemption allowed tenants to withhold consent where a Green Deal finance plan would be the only way to fund installing measures. As there is now a landlord requirement to fund the first £3,500 of measures, this will no longer be required.
The full consultation response can be found here.
NHBC, the leading warranty and insurance provider for new homes, have reported that during the third quarter of 2018, there have been 43,500 new home registrations from UK builders. This is the highest number since 2007, when 49,520 new homes were registered. This is an increase of 5,638 (15%) compared to the same quarter last year, with London contributing 6,007 new homes, up 141% compared to last year.
NHBC Chief Executive Steve Wood said: “The upturn in registrations over recent months is good news for the industry and shows that there remains a strong demand for high quality new homes in many parts of the UK.
You can read more here.
Happy Halloween! Did you know that in Britain, all bat species and their roosts are legally protected? The number of bats has declined rapidly over the last century and you are only able to disturb a roost if you are a licensed bat worker. If there is a bat in your loft, it will often go unnoticed. Signs that there may be a bat present are their droppings, which will crumble to dust very easily, you may also hear bat ‘chattering’ at dusk before they fly out to feed, or in the summer months, homeowners can watch the building at dusk to see if any bats emerge. Check out our fact sheet on bats below for more bat facts!
An article from The Guardian explains that a third of the English coastline cannot be affordably protected.
A new report from the Committee on Climate Change (CCC) has said that the current approach is not fit for purpose, building defences to keep shores in their current position were unaffordable for a third of the coast and discussions about “hard choices” must begin with communities that will need to move inland.
As it stands, 8,900 properties are at risk from coastal erosion. In 2014 the Environment Agency calculated that 7,000 homes, worth more than £1bn, would fall into the sea this century. However, the CCC report found that in the 2080s another 100,000 properties would be at risk of sliding into the sea.
Baroness Brown, chair of the CCC’s adaptation committee stated that “We could see as much as a metre of sea level rise before the end of the century, so within the lifetime of today’s children, and that has a major impact on coastal flooding and erosion.”
Photograph: Darren Staples/Reuters
We have all heard of off-site construction or modular whole house solutions, but modular can be applied more modestly. We recently came across the off-site utility cupboard – constructed off site and designed to house all utilities and services in one contained area.
These are aimed at high end new build apartment blocks, block refurbishment and large residential developments. Click here to read more.
RICS will be seeking the views of residential property professionals over the next few months to help improve the home buying and selling process by developing a RICS Home Survey Standard.
Paul Bagust, Global Property Director at RICS said “As part of our commitment to promote and enforce the highest standards in the residential sector, the new Home Survey Standard will bring together the views of consumers, cross-industry stakeholders and practitioners to become the sector best practice benchmark in achieving consistency and high quality to meet evolving client demands in the home survey market.”
You can read more here.
Although it may not be a huge surprise that landlord purchases have fallen, 30% does seem like quite a drastic reduction. In this article from Zoopla, Nicky Burridge reports that buy-to-let purchases are at a five-year low, likely driven by the government tax hikes such as introducing a 3% stamp duty surcharge on second homes in April 2016, making it less profitable being an investment landlord. You can read more here.
In an article from Property Industry Eye, it has been reported that house prices in Salisbury have fallen by 8.8% between May to July 2018 (where the average house price was £328,243) compared to February to April 2018 (where the average house price was £299,207) whereas the average price of Wiltshire as a whole increased by 1.7% over both periods. This is according to research using Land Registry and Home.co.uk. The article suggests that it is down to the events that occurred earlier in the year where a former Russian spy and his daughter were poisoned in Salisbury. You can read more here.
Did you know it was fire door safety week at the end of September? There has been extensive media coverage around fire doors since the Grenfell Tower disaster and we recently came across a useful infographic from Fire Door Safety Week which includes 10 top tips for fire doors in blocks of flats. It covers what fire doors do and how they work, their location, who is responsible, cold smoke seals, door closers and basic checks. If this is something you may find useful, click here to view the full image. They have also highlighted 5 of the most common fire door faults in this graphic. What is slightly concerning is that over 61% of the doors tested in the survey had fire or smoke seals either missing, installed incorrectly or not filling perimeter gaps correctly. We feel it is important for everyone to educate themselves on fire door safety, not just professionals in the industry.
Following a consultation on last year’s Grenfell Tower Tragedy, housing secretary James Brokenshire told the Conservative Party Conference there will be a ban on the use of combustible materials to the outside of new build high-rise buildings. Intended to be brought forward in late Autumn, the ban will be delivered via changes to building regulations guidance, limiting materials available to products achieving a European classification of Class A1 or A2.
You can read more from Housebuilder and Developer here.
It’s likely you have read news about the report recently published by the UN Intergovernmental Panel on Climate Change (IPCC) which explains that the next 12 years are vital in attempting to keep global warming below 1.5 degrees C. According to an article from Architects’ Journal, chief executive of the UK Green Building Council Julie Hirigoyen has responded to the report stating that every firm’s boardroom should be reviewing the report and taking concerted action in response adding ‘The construction and property industry in the UK is an economic juggernaut, and our buildings account for approximately 30 per cent of carbon emissions. It is also the industry with the most cost-effective means of reducing carbon emissions so it will be a vital catalyst for change in the wider economy.’
You can read more here.
Bank of England Governor, Mark Carney, warns that leaving the EU without a deal could be as severe as the 2008 financial crisis with house prices falling by 35%. In this article from Zoopla, they report on a briefing by Mark Carney to senior cabinet ministers, where he outlined the worst-case scenario. A house price fall of that magnitude would have a significant impact on the market, plunging many homeowners into negative equity and cause a shortage of properties for sale, as less people will sell to trade up the property ladder
The NHBC Foundation have put together 40 useful facts about UK housing and house building to give us all a clearer picture of the situation. It looks at who we’re building for, land use, the homes we live in, housing and house building within the economy and housing and health.
Did you know that in 1997 the 18 to 34-year olds (mainly millennials) outnumbered the 55 to 74-year olds (mainly baby boomers) by almost 30% however on current projections 2019 will be the first year when the 55 to 74 age group outnumbered those aged 18 to 34?
The information is from various sources such as Bank of England and Ministry of Housing, Communities & Local Government. Click here to download the report. (You will need to register with the NHBC Foundation, if you haven’t already, which only takes a minute)
On 1 October 2018, the new rules for Landlords who rent out houses in multiple occupation come into force. The rules are designed to ‘further protect private renters against bad and overcrowded conditions and poor management practice”, housing minister Heather Wheeler says.
A key change is that mandatory licensing will be required for buildings of any size that house five or more people from at least two separate households, whereas currently it is limited to HMOs with three storeys or more. You can read more here.
It has been suggested that the changes will cost Landlords millions of pounds in additional licence fees and adhering to other HMO rules. This article from Landlord News estimates a figure in the region of £79m.
The original press release in June can be found here.
A leaseholder has been removed from his £600,000 home after a ‘redecorating’ dispute. In an article from the Daily Mail, it explains that Charles McCadden bought the upper floor flat in Brent, northwest London and after moving in, he redecorated the flat and replaced the kitchen and bathroom without consulting the freeholder, who lived downstairs. Due to a forfeiture law, he was removed from his home as he breached the lease. A little extreme? Click here to read more.
Did you know distilleries are producing gin using discarded invasive plants as botanicals?
This article from Hertfordshire Life explains the impact Himalayan balsam has on the wildlife and the work Herts and Middlesex Wildlife Trust are doing to try and control the plant, including ‘balsam bashing’ work parties where they pull the plant from the ground and leave it piled up so that it cannot set seed. Last year the trust partnered with Puddingstone Distillery and they developed a recipe for a world-first gin that uses Himalayan balsam petals as one of its botanicals. The distillery donates £2 from every special edition bottle sold to the trust. We think it is a great idea!
There is also a gin with Japanese knotweed as an ingredient. You can read more about it here.
Now you have a valid excuse the next time you feel like a G&T because you’re helping control the invasive plant species. You’re welcome.
We recently came across this article and if you didn’t know that it was dated 6 December 1997, you may think you were reading a recent article, albeit with a few changes around some of the legal aspects.
It states 80% of people do not have a full survey carried out when buying a house, we know this figure is still generally the same, with around 20% of home-buyers commissioning a survey.
It’s a shame that there was, and still is, some negative attitudes towards surveys because they can be a very useful bargaining tool and the testimonials we have seen speak for themselves.
Maybe, as the article suggests, some people do not like hearing about faults with the house they have set their heart on. Or perhaps some expect too much from the survey? It is non-invasive because at the time the inspection is undertaken, the property still belongs to the seller, so there are limitations as to what can be seen and identified within the remit of a non-intrusive survey.
It’s certainly an interesting read and it made us think about what else happened ‘97, so here’s a few reminders…
- The film Titanic was released
- The first Harry Potter book was published
- Labour ended 18 years of Tory rule
- The Teletubbies were ‘unleashed’
- The UK won the Eurovision for the last time
- Microsoft became the world’s most valuable company valued at $261 billion dollars
- NASA Pathfinder lands on Mars
It seems that it is not just surveyors who are being sued. In an article from the Guardian, the question ‘I think an estate agent has mislead me – can I recover my costs?’ is asked. The answer explains that under the Consumer Protection from Unfair Trading Regulations 2008 (also known as Consumer Protection Regulations) he/she must disclose any pertinent information about a property which might influence a prospective buyer’s decision. It defines ‘pertinent’ information as information considered material to a consumer’s decision to enter into a transaction and it should be disclosed at the earliest opportunity. Problems highlighted in previous surveys are listed as pertinent information so misleading or failing to mention it can result in criminal charges being taken against the seller or estate agent. You can read the full question and answer here.
The latest stats from the Home Office were released for the period 2017-18 earlier this year. They show a 3% increase in the number of fires attended. It also highlights the 27% increase of fire related deaths, which includes the 71 fatalities from the tragic incident at Grenfell Tower in June last year. A massive 564,827 incidents were attended in 2017/18. Of those, 40% were false alarms, which fortunately, continues to be the largest incident type. You can read more about the statistics here.
We are used to comparing house prices across the regions of the UK, but with different average house sizes, is the price per m2 a better comparison?
Looking at house sizes across Europe and the US we can see that, not unsurprisingly, the US has the largest average house size, but what about the differences across the UK?
The data from the Office of National Statistics shows there is quite a variation. As expected London is the highest at around £20K per m2 with parts of Wales less than £1K per m2, the average for the UK sits at £2,395 per m2. The data also shows that new flats in England and Wales have increased in size by 18% over the last 3 years, while new houses have remained the same size.
You can check the price per m2 in your area using the data here, there is a also a handy extension calculator, where you can see how much that new extension might be worth.
The heatwave is finally over and we are back to good old UK weather, but a consequence of the long dry summer is that there are likely to be a rise in subsidence claims over the coming months. Subsidence is known to increase during hot, dry weather, particularly in areas with clay soil and this summer certainly fits the bill.
For insurers subsidence only really became part of domestic policies in the 70's at the request of mortgage companies and thought to be low risk. Then came the summer of 1976, that saw many properties affected by subsidence caused by clay shrinkage. An unexpected and expensive event for insurers. The last heatwave in 2003 resulted in a four-fold increase in subsidence pay outs.
For those of us in clay soil areas, we will be keeping and eye on our walls...
Read more here.
We continue to see the trend of the highest year-on-year growth in the cities that have a lower average house price. Nottingham and Leicester knock Liverpool and Manchester off the top 2 spots. When comparing growth to 2008 (see table 2) Hometrack expects the gap between the underperforming cities and top performers to continue to close.
With Teresa May telling us we need to build 300,000 new houses a year to solve the housing crisis, this article looks at the data published on UK house building statistics (read more here).
The UK needs 200,000 new homes each year to keep up with population growth, however this has not been met for over a decade, to make up the shortfall we now need 300,000 new homes each year.
England is projected to have 210000 extra households per year (read more here), a household being a person living alone or a group of people living together (such as a family). While we do not necessarily need a new home for every new household, in 2014, Dr Alan Holmans analysis (read more here) suggests we need about 170,000 private sector homes and 75,000 social sector homes – a total of 245,000 per year. Although lower than the 300,000 purported by Theresa May, this is way beyond the housing building figures the UK is currently achieving. In 2017 nearly 200,000 houses were built, a third away from what we need. In fact, the last time there were 300,000 completed in the UK was 1977, the Silver Jubilee. The 80’s saw a relatively steady building rate of just under 200,000.
The chart below looks at the history of housebuilding post WW2.
The graph shows Local Authority building nearly 250,000 homes in 1953/4, we can then see the steady decline of home building by Local Authorities to just of 100,000 in 1961, as private home building overtook. The introduction of the high-rise block in the 60’s, provided a boost to Local Authority home building, in part responding to the growth in demand for housing as the ‘baby-boomers’ came of age.
In the 1990’s rules banning councils from borrowing money effectively put an end to council house building. Housing associations considered private landlords, could still borrow and took over social home building, albeit only building around 30,000 homes per year.
During the financial crisis from 2007, home building reached its lowest since the 1920’s (excluding the War years). Since 2013 we have seen the rate of home building increase year on year, although we are still a long way off the 300,000 needed to make up the shortfall.
The first quarter of 2018 saw just 43,000 homes completed, Q1 is traditionally the quarter which sees the most prevalent home building. If we compare Q1 2018 to Q1 2017 and extrapolate, we would see housing building reach around 160,000 this year. This lack of house building puts the UK further behind and increases the shortfall. It seems the Housing Crisis is here to stay for now.
McCarthy & Stone, the UK’s largest retirement housebuilder, have produced the third annual Retirement Confidence Index with YouGov. The survey included a nationally representative sample of 3,000 people aged over 65 and 700 adults aged under 30. It found that three in five (60%) under-30s believe the UK needs more ‘later homes’ for older people, not just ‘starter homes’ for first time buyers, adding that 70% of pensioners feel the same way. To read more, please click here.
Last month we shared an article from Gary O’Neill on collapsing retaining walls, if you didn’t catch it, you can read it here. Gary has recently published a second part to this article which focuses on gravity retaining walls and describes some different types of retaining wall solutions, such as masonry (unreinforced), concrete, gabions and crib.
The article explains that retaining walls are selected to suit individual ground and site conditions, here at Sava, we wonder if the recent heatwaves are taken into account when designing and building retaining walls in the UK? What do you think? You can read part 2 here.
Photo source: http://terraqua-es.co.uk/erosion-control/woven-gabions/
A tribunal ruling has left flat owners with the cost of making the apartment blocks they live in fire-safe. The two blocks in Manchester, have a similar cladding to that used on Grenfell Tower and it will cost approximately £3 million to make safe. Each leaseholder will need to pay £10,000, along with legal fees, which will be incorporated into their service charge. To read more, click here.
Photograph: Christopher Thomond for the Guardian
During 20th Century Britain, it is estimated that the death toll from asbestos-related diseases could have exceeded 800,000. This article, by Laurie Kazan-Allen, looks at the stories of several females who sadly died from asbestos related diseases and the fight for justice as well as the story of Nancy Tait, founder of the world’s first asbestos victims’ group. Click here to read this interesting article.
An article from Property Wire discusses the findings from a study by residential warranty specialists, BLP insurance. According to the study, 78% of British people believe the environmental and sustainable performance of a new home is important. Click here to read more.
With Japenese knotweed very much in the news, this article by Stephen Innes looks at the types of legal claims regarding JKW. He looks at; nuisance claims, claims by purchasers of land against vendors and professional negligence claims.
Of particular interest is the question as to whether the insurers of a surveyor facing a negligence claim by a property purchaser should look to a contribution against another party; another professional, the vendor, or neighbouring landowner.
You can read the full article here.