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Government May Limit Houses In Multiple Occupation (HMOs)
A spokesman for the Communities Department is reported as saying "Students bring benefits to the places they live in but too many residing in one area can impact negatively on a community". Presumably they are worried about excessive drinking and other ant-social behaviour.
Several organisations have written to Communities Secretary John Denham to oppose the scheme, arguing that there is only a problem in a very small number of wards around the country and that the proposals are "discriminatory".
The Chairman of the Residential Landlord's Association Alan Ward is quoted as saying "Planning permission can affect the marketability and value of property, forcing landlords to repay capital on their loans or sell resulting in loss of homes for tenants".
If the above is passed what would happen to the validity of landlord insurance if a landlord has a HMO property in an area you are not supposed to? This will be an issue both landlords and insurers will have to look at.
Market on the way up?
On a more cheerful note for landlords, Halifax says that the average home increased in cost by 1.1% in July. Taylor Wimpey the builders added to the good news for property owners by saying that sales were rising and prices were no longer falling. Its order book is up 67% since the end of last year.
Undervaluing by surveyors damaging the market
The National Association of Estate Agents believes that valuers are so worried about being accused of over valuing by lenders that they are routinely undervaluing by 10% or even more. If a property is repossessed and sold for less than its purchase price there is a risk that the surveyor might be sued. This happened in the 1990s and the NAEA thinks surveyors are worried that it could happen again. People seeking buy to let finance may find this a very real problem.
Fraud in the buy to let sector?
Rising fraud levels are being blamed by Bradford and Bingley as one reason for the 160 million pound loss they made in the first half of 2009. B&B has always had a high profile in the buy to let sector and was a popular choice for landlords and prospective landlords trying to raise property finance. The frauds it is reporting include lies about income and cases of valuers and solicitors over valuing properties. 60% of B&B's loans are to landlords.
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