What’s hot in the latest UK property news? Let’s take a look behind some of the latest headlines to find out more.
The importance of NOT being underinsured
Do you ever ask yourself whether you have enough building insurance?
A story in the Mail Online on the 29th of March suggested that it is certainly a question you should be asking. Millions of homeowners, said the newspaper, who failed to ensure that they have sufficient cover are at serious risk of being underinsured.
Underinsurance occurs when the total sum insured is insufficient to cover the cost of repairs or reinstatement. In the case of building insurance, the total sum insured must anticipate a worst-case scenario in which the home is completely destroyed. If it is not – the building is underinsured – and any insurance settlement in the wake of a total loss will not be enough to cover the cost of clearing the site, building anew, and paying all the various professional fees associated with building a home from the ground up.
The Mail Online made the point that while reconstruction costs have shot up by some 18% in the past year alone (the biggest increase since 1980), millions of homeowners have failed to respond by adjusting their building insurance upwards – instead, they remain underinsured.
More powers given to landlords to evict unruly tenants
Government plans for wholesale reform of the rental market include greater powers not only for the police but also for landlords to clamp down on anti-social behaviour. In the latter case, that means making it easier for landlords to evict unruly tenants.
In a report by Propertymark on the 27th of March, it was argued that the government wants to strike a fair balance between protecting the rights of tenants while at the same time allowing landlords to take action against those acting irresponsibly – if necessary, by repossessing their let property.
Lending support to landlords who need to manage unruly tenants, it is proposed that:
- all tenancy agreements specifically refer to a ban on anti-social behaviour;
- the eviction process is simplified and made faster; and
- short-term lets – such as Airbnb – require registration, so that homes let in that way are not used as gateways for anti-social behaviour.
Rental market report: the latest news on rents
The online listings website Zoopla, on the 29th of March, published its latest report on the state of the rental market.
The key takeaway is that the recent spiralling of rent levels seems to be calming. Nationally, the increase in average rents fell from its record rate of 12.3% in the middle of last year to a current 11.1%. What is more, that rate of increase is likely to fall still further – to 4% or 5% – by the end of this year. The decline might be even more marked in some inner city areas, such as central London.
The present easing of the rental market comes after significant growth. This was fuelled by an imbalance between supply and demand.
Demand remains strong this year – though somewhat less than in 2022. At the same time, higher buy to let mortgage interest rates are discouraging investment by landlords – so the supply of new rental accommodation is restricted.
Trade body highlights “water shock” issue affecting new-builds
A story in Estate Agent Today on the 30th of March shone a light on a new but increasingly prevalent problem of condensation in new-build homes.
Incidents involving water cascading down from the roof space and high levels of condensation are branded a form of “water shock”, according to the Property Care Association (PCA).
The problem appears to be exacerbated by the fact that new homes are built to ever-increasing standards of airtightness – to make them more energy-efficient. The downside is that moisture from all the normal domestic routines such as bathing, cooking, and doing the laundry is more difficult to remove through the building’s ventilation systems.
A spokesperson said: “Quite often, new homes are finished to a tight deadline, without time for the water that is part of the construction process to dry out.
“This means the property is already carrying excess moisture, and when people move in, that water load increases.
“The ventilation system, already under considerable strain, has to process the excess moisture tied-up in the building’s fabric but then, with few windows open in winter and baths, showers and tumble dryers all running, the home becomes even more loaded and this is when we see ‘watershock.’
“This involves water flowing down walls and windows, as the ventilation system struggles to operate effectively.
“Although it’s distressing and can look dramatic, our message is not to panic. With some simple changes and after a few months of warmth in the summer, the problem will generally resolve itself.”
