Prop­erty mar­ket mov­ing in a pos­i­tive di­rec­tion

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Harefield Gazette - - PROPERTY -

Dereg­u­la­tion Act 2015 came into force on 26 March and means im­por tant TDP (gov­ern­ment-backed ten­ancy de­posit pro­tec­tion scheme) changes for land­lords, agents and ten­ants.

Briefly, the law is rel­e­vant to any de­posit cur­rently held on an as­sured shor thold ten­ancy. It as­sists land­lords who did not re-pro­tect de­posits or re-ser ve ‘Pre­scribed In­for­ma­tion’ when a ten­ancy was re­newed or when a Statu­tor y Pe­ri­odic Ten­ancy arose. If, as a re­sult of the Dereg­u­la­tion Act, a ten­ant loses a claim re­lat­ing to de­posit pro­tec­tion or loses their chal­lenge to a Sec­tion 21 No­tice, the cour t will not or­der the ten­ant to pay the land­lord’s costs, as long as the ten­ant star ted their cour t case be­fore 26 March 2015.This is a sum­mar y of the changes.

A de­posit taken be­fore April 2007, where the ten­ancy has be­come pe­ri­odic af­ter that date, must be pro­tected and have Pre­scribed In­for­ma­tion ser ved within 90 days, i.e. by 23 June 2015, at which point they will be pro­tected and treated as al­ways hav­ing been so.

A de­posit taken af­ter April 2007, pro­tected with the Pre­scribed In­for­ma­tion ser ved dur­ing the ini­tial ten­ancy, will be treated as hav­ing had the Pre­scribed In­for­ma­tion ser ved on ever y re­newal or on be­com­ing a Statu­tor y Pe­ri­odic Ten­ancy.

A de­posit taken be­fore April 2007, which be­came pe­ri­odic be­fore that date, must be pro­tected or re­turned be­fore a Sec­tion 21 No­tice can be ser ved.

For the Pre­scribed In­for­ma­tion, the rules are amended to al­low for an agent’s de­tails to be given in place of a land­lord’s de­tails where the agent is han­dling the de­posit.

Sec­tion 33 Re­tal­ia­tor y Evic­tions, where a Sec­tion 21 No­tice is ser ved by the land­lord fol­low­ing a com­plaint of dis­re­pair from a ten­ant, may be in­valid. Th­ese pro­vi­sions will come into force in Oc­to­ber 2015.

pre­scribed form for a Sec­tion 21 No­tice will come into use in July 2015.The is­sue of ‘in­cor­rect dates’ for when the ten­ant has to leave in the no­tice has now been re­moved. Where there has al­ways been a pe­ri­odic ten­ancy then a No­tice un­der Sec­tion 21(4) does not have to end on the last day of a rental pe­riod of the ten­ancy, it only has to give two months no­tice.

Paul Gille­spie; 020 8426 1972; pgille­spie@gibbs-gille­spie. co.uk; www.face­book.com/ gibb­s­gille­spie;Twit­ter: @ gibb­s­gille­spie

Dar­ren Mur­phy and Chris Harper, part­ners at Christo­pher Nevill, are con­fi­dent that prop­erty sales will gain mo­men­tum now the elec­tion is over, and house prices will con­tinue to move gen­tly up­wards

OW we know where we stand, with the gen­eral elec­tion be­hind us and a ma­jor­ity Con­ser­va­tive gov­ern­ment in place, we can breathe a sigh of re­lief that there will be far less un­cer­tainty about the fu­ture di­rec­tion of the coun­try than might have been the case with a ‘hung par­lia­ment’.

Now the coun­try can move on in a pos­i­tive di­rec­tion, with­out the up­heaval that a change in gov­ern­ment of­ten brings or dif­fi­cult, long drawnout ne­go­ti­a­tions be­tween po­lit­i­cal par­ties try­ing to work to­gether.

Those who may have de­layed a de­ci­sion to move in the run-up to the elec­tion can now take ac­tion in the knowl­edge that the mar­ket is now likely to re­main sta­ble.

Fun­da­men­tally, the mar­ket is pos­i­tive and the out­look is good. In­ter­est rates are low and fall­ing. Five-year fixed rate mort­gages are now avail­able at in­ter­est rates be­low 2% and, with in­fla­tion low and eco­nomic growth con­tin­u­ing, the out­look for the sales mar­ket is strong.

Sup­ply has fallen short of de­mand for many years and there is un­doubt­edly a need for greater vol­umes of house­build­ing but no gov­ern­ment can sim­ply flick a switch and turn this around quickly.

In fact, the ma­jor house builders have re­cently in­di­cated that they can­not see a way to build the num­bers of new homes be­ing promised by some of the po­lit­i­cal par­ties in the time frames they have stated.

It is likely, there­fore, that house prices con­tinue to rise gen­tly up­wards, held back by af­ford­abil­ity is­sues rather than lev­els of raw de­mand.

The pri­vate rental sec­tor could have seen a big shake-up if some or all of the plans of the left-wing par­ties had be­come re­al­ity.

For­tu­nately, in our opin­ion, th­ese plans will now not be­come re­al­ity. Had they been in­tro­duced on a broad brush ba­sis, due to their po­ten­tially neg­a­tive im­pact on land­lords, they would have re­sulted in re­duced lev­els of sup­ply and there­fore an ar­ti­fi­cially

in­duced in­crease in rental val­ues.

What­ever changes the new gov­ern­ment may now make should be in­tro­duced along­side a pro­gramme of house build­ing in both the pri­vate and so­cial sec­tors.

We ac­tu­ally saw very lit­tle let-up in ac­tiv­ity lead­ing into the elec­tion and with in­ter­est rates likely to re­main low and some very good mort­gage deals avail­able, any­one think­ing of com­mit­ting to a sale or pur­chase, let­ting or rent­ing, can do so with a de­gree of con­fi­dence.

Our team of ex­pe­ri­enced prop­erty pro­fes­sion­als will, of course, be analysing the out­come of the gen­eral elec­tion closely and shall be pleased to pro­vide our prog­no­sis for the months ahead. If you are think­ing of sell­ing, buy­ing, let­ting or rent­ing, please do not hes­i­tate to con­tact us to dis­cuss the best way for­ward. Con­tact the sales team on 01895 232000 or let­tings: on 01895 239977.

HIGH STREET OF­FICES:

at 278 High Street.

SALES FORE­CAST:

Dar­ren Mur­phy (left) and Chris Harper (right) en­vis­age a strong sales mar­ket as eco­nomic growth con­tin­ues as in­fla­tion and in­ter­est rates re­main low.

Christo­pher Nevill’s sales team is based at 274 High Street, Uxbridge, the let­tings team

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