If you’re a homeowner, investor or landlord, you’ll want to keep fully abreast of development in your sector of the market. With that in mind, we’ve compiled just a few of the latest property news headlines for you. Let’s take a look …
Right To Rent landlord fines to be massively increased
The penalties for landlords who break the Right to Rent laws will face stiffer penalties – much steeper fines that are more than ten times the current rates – according to a story in Landlord Today on the 8th of August.
Against the background of illegal immigration and the tide of small boats crossing the English Channel, the government is adopting a tougher stance towards landlords who grant tenancies to those who have yet to gain legal residency.
Homeowners who take in a lodger without the necessary residents’ permit will face fines of up to £500 (up from the current £80 per individual) and fines of up to £10,000 for each unlawful tenant (up from the current £1,000).
The penalties become steadily more punitive for those landlords who repeatedly break the Right to Rent laws by housing illegal immigrants. Repeat offences attract fines of up to £10,000 per lodger (the maximum is currently £500) and £20,000 (up from £3,000) for other illegal occupants.
Which properties are selling best right now?
Homebuyers are tailoring their expectations about the size of property they can afford. Three- and four-bedroom homes, for example, are no longer the most sought-after since buyers are looking for cheaper houses and flats, according to a survey by the online listings website Zoopla recently.
Rising mortgage interest rates, of course, have reduced the amount that many potential buyers can now afford. As a result, it has been back to the drawing board to see how far their finances will stretch.
So, out goes the generously proportioned family home for many house hunters and, instead, a modest-sized flat may be all that the budget can currently manage.
What is the new Mortgage Charter?
Another of the online listings websites, Rightmove on the 3rd of August, focused on a new initiative set out in the so-called Mortgage Charter.
With mortgage interest rates the highest they’ve been for 15 years – and still further increases on the horizon – the new Mortgage Charter has been devised as a partnership between (the majority of) lenders, the government, and the Financial Conduct Authority (FCA) to help those existing borrowers who might be struggling to keep on top of their mortgage commitments.
The Charter is designed to set out more clearly the options for borrowers who are already struggling and in danger of falling into arrears and those whose current fixed-rate mortgage is about to end (when it will revert to the lender’s more expensive standard variable rate).
Among the options available to struggling borrowers will be:
- a temporary switch to interest-only repayment terms – this will have the immediate effect of reducing the monthly outgoings (since there is no capital to repay), but borrowers will need to be aware that the missed repayments will have to be made up some time in the future;
- extend the mortgage term – once again, this might be a temporary measure only, so that the borrower repays more of the outstanding balance when his or her finances allow, and the original repayment term is re-established.
These are probably the most familiar responses, but the new Mortgage Charter reminds borrowers that lenders may offer still further alternatives and options.
Halifax house price index: July 2023
The housing market appears to have found a sense of stability – average house prices continue to drop but by a small margin, with the annual fall currently registering 2.4% (a modest improvement on the 2.6% in the 12 months to the end of June).
The House Price Index published by the Halifax building society noted that July was the fourth consecutive month in which prices have fallen – but by a very modest 0.3%.
From its peak of £293,992 last August, the average price of a home in the UK has now fallen to £285,044 – with properties in Wales and the South of England suffering the most noticeable decline in prices.
