Property Pop: Comment: Armageddon

Property Pop: Comment: Armageddon: Interest rates likely to rise- aah!!  Call your parents and tell them you love them or kiss that photo of your lost love before tucking it...

Irony

The Government light a rocket under the property market to get house prices moving then ask the Bank of England to try and blow out the fuse just as the rocket is about to go into orbit!

Statistics for Tenancy Deposits

Statistics for Tenancy Deposits

Here’s a snapshot of statistics in relation to tenancy deposits:

·    There are £2.964 billion worth of deposits protected.

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·    Where a dispute has been lodged at the end of a tenancy*:

100% Deposit awarded to tenant                      29%

100% Deposit awarded to landlord                   15%

Deposit split between tenant and landlord        56%

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·    It is estimated that the compliance rate of deposits protected is 80.16%^

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·    A table of disputes as a % of number of deposits protected as at March 2013:

March 2008               0.05%

March 2009               0.52%

March 2010               1.08%

March 2011               0.82%

March 2012               0.85%

March 2013               0.92%

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Reasons given for the non-return of deposits:

	2007	2008	2009	2010	2011	2012
Cleaning	50%	52%	49%	47%	49%	52%
Damage	36%	45%	43%	39%	43%	45%
Decoration	18%	25%	26%	24%	25%	28%
Rent Arrears	22%	18%	16%	15%	16%	18%
Gardening	14%	13%	13%	12%	11%	12%
Other	47%	48%	50%	55%	55%	56%

* Data covers period April 2007 to September 2013

^ Government estimates- English Housing Survey 2011-12 DCLG (2013)

Angry Estate Agent

Number of Private Renters

I suppose it’s not a huge surprise, but it appears that since 2001, the number of those in privately rented accommodation has almost doubled.

According to figures from the Department of Communities and Local Government, those in privately rented accommodation had risen from 2.15 million people in 2001, to just over 4 million in the year 2011-12.

Interestingly, over the same period the number of those in social housing has actually remained rather static. In 2001, there were 4.23 million people, whilst in 2011-12 there were 4.03 million.

So what does this tell us?

Well, first and foremost, statistics are ridiculous. For example, working from these figures and taking the year 2006 as the baseline instead, I could equally have stated that the number of those renting social housing has risen from 3.91 million to 4.05 million in 2010-11.

And if I was Grand Duke von Twist II, an unelected figure of Parliament, being interviewed in a dimly lit television studio by a fierce bulldog of a presenter, and being pushed on my party’s manifesto pledge of increasing social housing- well, I would lean back into my chair, stroke my curly moustache rather smugly for a second or two, before declaring that these figures prove that there had indeed been an increase in the supply of social housing of almost 4% during our time in government.

I would then check my timepiece, pop it back into my waistcoat and tell the interviewer that I had to go on the grounds that as much as I would love to spend further time engaging the electorate, I actually had a previous engagement at my private members men club in Knightsbridge where there was a pressing game of backgammon in desperate need of attention.

I digress; though as the Grand Duke, I believe that I would be great at digressing. I’d like to think that I could steer a conversation seamlessly around the meandering maelstrom of how rubber is the perfect substitute for carrier pigeons to the relative merits of the humble shuttlecock.

Okay, I’m back.

It’s no real surprise that the number of those renting has increased over the last 10 years, and indeed, the trend will only continue upwards. Simple really; whilst the rate of increase in house prices outstrips that of salaries then it’s simple maths really.

My advice is- sell a kidney and buy a property. Failing that, steal a kidney and buy a property. Failing that, well, I suppose you’ll just have to come to terms with the fact that in all likelihood many of us will never realise the dream of home ownership. Ho hum…

In case you’re wondering, Grand Duke von Twist II says that if you want to own a house, maybe you think about working harder and having fewer children.

Comment: Armageddon

Interest rates likely to rise- aah!! 

Call your parents and tell them you love them or kiss that photo of your lost love before tucking it into your breast pocket or look into your pet's eyes and let them feel your devotion one final time (delete as appropriate). Then pack some canned meats and run to the hills. Find a small bushel or some fallen lumber, and hide like you've never hidden before. 

Comment: Tenant deposits

Your Deposit

So, it used to be that as a tenant, once the deposit was paid on your lovely new rental abode you could pretty much say goodbye to it and simply write it off as another one of life’s hidden expenses.

However, since the introduction of the Tenancy Deposit Scheme or the TDS in 2007 (I feel like this should be accompanied by some uplifting music, maybe Wagner or Neil Diamond) such worries have been banished into the ether.

The scheme was set up to try and make the lettings process a lot more transparent and fair. In the old days, the dastardly landlord (often twiddling their villainous moustache) would snatch your money into their top pocket like one may expect a baddy to in an old black and white film.

Authorised by the government (imagine the government dressed all in white; lots of linen and open-toed sandals), these Tenancy Deposit Schemes are designed to secure a tenant’s deposit, and only allowing deductions to be made at the end of a tenancy based on reason and impartiality.

But how do they work I hear you cry in a desperate chorus of wonton despair. Okay, okay, I’ll look at them in more detail on the information pages.

Random: Thoughts on builders

From my experience, builders are like prostitutes. They love you for the first 45 minutes but for the last 15 minutes they are already thinking about their next client.

Comment- How to slow down rising house prices

House prices in London are out of control. So much so that even the IMF have voiced their concerns, stating that this together with low productivity may have a substantial impact on the UK economy.

So what's the answer?

Maybe the more pertinent question is, so what's the cause?

The answer I believe is twofold. Firstly, many claim that foreign investors are hiking up prices by there desire to share in the boom of property ownership in London. Central London appears to be the location of choice for any self respecting overseas investor and this causes a ripple effect pushing up prices from the centre outwards.

The second reason may stem from the Government's 'Right to Buy Scheme', which allows first time buyers the opportunity to buy property with a much lower deposit than was previously required.

Okay, so what is the solution?

In regard to the foreign investors, I believe that there is a simple solution. Simply tax those purchasers whose residency lies outside the Britain. This would deter these investors, and any money raised by the scheme could be put straight into the building of affordable housing on brownfield sites in London.

The Right to Buy Scheme, although admirable in its intentions has failed. I would scrap it within London. 

In truth, something needs to be done to prevent the London housing market from overboiling again. And ultimately, whether you like it or loathe it, London must be treated as an entity in its own right- the sooner those in a position of power realise this the better!

Importance of a network

Okay, the older I get the more I realise that talent and drive is often not enough to succeed. This affirmation stems from the fact that recently our small company has lost a rather large contract due to a spat with an employee (freelance)- oh yeah, and this employee just happens to be married to a very senior director of the other company!

It's crazy, but only goes to prove something I have always been aware of, but never been certain of, basically that contacts are everything. I still rather optimistically hold on to the belief that if you are exceptional you still have a chance of success, however someone who is just 'good' will always be overlooked in favour of someone who is merely 'average' but has lots of contacts in their chosen field of work.

Sad really, and somewhat perpetuates the status quo ensuring that those with power, remain in power. I say this from a rather privileged background myself, so I am not looking for sympathy. Far from it, I am fine, but it just saddens me that those less fortunate than myself are being barred by this 'old boys network' that exists in every stratum of society.

It sucks!