December, 2009
Estate agent may appeal against a High Court ruling on unfair landlord fees
Back in July the High Court ruled that the estate agents Foxtons were unfairly charging landlords’ commission each and every time a tenant renewed a contract.
The case was brought by The Office of Fair Trading which was complaining that particular charges within Foxton’s letting agreement were not clear to landlords.
The estate agents agreements required landlords to pay Foxtons a set commission – usually around the figure of 11% – when a tenant renewed a contract, even if this was arranged without any input or involvement of the estate agent – money for nothing some might say!
In addition to the above the contact also included the clause that if Landlords eventually sold their property to the tenant, the landlord would have to also pay Foxtons a commission – A commission Foxtons will argue a landlord would have to pay if they advertised the property for sale through any agent.
The High Court upheld this complaint in July because the details of these clauses were buried in the small print and was not obvious to the landlord signing the agreement. It was also commented at the time that repeat renewal commission by Foxtons represented a ‘trap’ for consumers.
On the 18th of December the estate agent was given leave to contest the ruling and has until the 29th January 2010 to formally lodge an appeal. If the appeal is a success it may prevent landlords from claiming changes back, a sum which was estimated to millions of pounds.
If you are a landlord or an estate/letting agent let us know your opinion on the High Court ruling and if you think these charges are fair if made obvious to the landlord?
If you require landlord insurance then click4quote can offer instant quotes. Our landlord insurance is aimed at new or experienced landlords seeking value for money
House prices in 2010
November saw house prices rise and more stock come on to the market. Halifax say that prices rose by 1.4% while Nationwide say the rise was only .5%
It is more difficult to work out what will happen next year. Some of the London agents are very cheerful, but no one knows how long their good spirits will last. Agents Marsh and Parsons forecast that London prices will rise by up to 7% next year while Cluttons say that December has been “unseasonably busy”. James Hyman their residential sales partner said “This has to be one of the best Decembers we have experienced in many years and could well be a record. We are experiencing a higher volume of agreed sales than at any time this year”.
Halifax reckon that house prices will be flat in 2010 but writing in the Times Geoffrey Dicks of Novus Capital Markets says “prices are far more likely to rise by another 5-10% in 2010 than to slump back”. Who knows!
If you have any experience of the house market in your area, especially for buy to let property please let us know. We are keen to find out how landlords and potential landlords view the situation.
If you are a homeowner or landlord then click4quote can protect you and your property. Check out our landlord insurance and homeowner insurance and get a quote online.
Will travel insurance cover strike action?
The threat of strikes by BA cabin crew this Christmas has prompted many people to ask whether their travel insurance will cover them if their flight is cancelled.
As with so many questions about insurance the only answer is to check your policy wording because different insurers have different rules, and some policies may not cover your particular circumstances.
If your policy has a cancellation section check that strikes and industrial action are covered. If so, much will depend on when you bought the policy and travel ticket. The policy will almost certainly not cover you if you took it out after you knew about a strike that would cause the cancellation of your trip. Equally you will not be covered if you go ahead and by a ticket for a flight that you know will be covered by the industrial action. The good news is that as long as you have good quality cancellation or holiday abandonment cover and took out your policy and made your travel arrangements before the strikes were announced you should be covered. How much you receive will depend on the limits in the policy.
The Click4quote annual and single trip travel insurance policies do cover cancellation/holiday abandonment caused by strikes. Check the policy wordings and summaries on the website.
Ideal for this winter, check out our ski travel insurance and winter sports travel insurance.
Chancellor hits holiday home landlords
From April 2010 the tax advantages enjoyed by landlords of furnished holiday property will disappear. One of the benefits of letting your investment property to holidaymakers is that if you make a loss you can set it against other income. The rule only applies if certain conditions are met, notably that the property is available for twenty weeks of the year and is actually let for ten weeks. That is now to change and furnished holiday lets will be treated the same way as any other property investment. Landlords will be regarded as running a property business and the normal property income rules will apply.
This change is likely to persuade some landlords to think about converting to a conventional letting model and seek full time tenants. In fact there are signs that this was happening anyway because of over –supply of holiday properties. Buying a holiday home to let out was a popular investment in the boom years. The Sunday Times recently reported that there is a glut of holiday property to let in some of the popular tourist areas like the West Country. One landlady who has switched from holiday lettings to full time tenancies is quoted as saying: “The market is saturated. I get a better return on my money with long term lets”
If you are thinking about changing your property from a holiday home to a long term let make sure you tell your insurance company. Landlords insurance is a complex area and it is important to have the correct cover.
Alternatively, if you plan to continue letting your property as a holiday home then click4quote offer specialist holiday home insurance for both UK and Overseas property
Landlords prosecuted under gas safety laws
An unsafe gas installation could prove fatal to tenants and involve the landlord in a criminal prosecution with a maximum fine of £20,000 or up to two years imprisonment.
Most landlords are aware of their obligations under the safety legislation covering let property but there are still some who ignore the rules; sometimes with tragic consequences. Earlier this year a Staffordshire landlord was fined £40,000 and ordered to pay £44,500 costs. The prosecution followed the death of a tenant from carbon monoxide poisoning. The Health and Safety Executive said “ HSE will continue to take action against landlords who disregard their tenants’ safety. On average 20 people are killed every year because of faulty gas appliances.”
The HSE website has some useful information on the gas safety regulations: hse.gov.uk
Click4quote offer a landlord legal expenses insurance policy to assist landlords with defence costs in some prosecutions under safety regulations. This product can be purchased as a add on our landlord insurance.
Flood insurance worries
As the people of Cumbria cope with the aftermath of the recent flooding they will have plenty of opportunities to judge how well or badly their household insurers have reacted. Will they have enough people on the ground and in their call centres to respond quickly and efficiently to clients claims? If you have any experience of the ability of property insurers to handle claims properly at times of extreme weather please let us know.
The Times (November 25th) has followed up on the 2007 flooding in Tewkesbury to see how householders are faring. One of the main concerns is the attitude of some insurers to renewing policies on flood damaged homes. There are reports of people being asked to pay flood insurance excesses of as much as £5,000. One couple have been asked to accept an excess of £19,000.
If you are buying a house as a buy to let investment or for your own occupation you need to be very clear about the flood risk. The Environment Agency website is well worth a look- www.environment-agency.gov.uk
If you are worried about flood insurance issues or have personal experiences to share just let us know.
Click4quote offers property insurance to landlords and homeowners, so if you are looking for cheap landlord insurance or homeowner insurance call today on 08450 89 90 91.