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Student Property Investments On The Rise In 2017 Due To Strong Yields

Student Property Investment has risen in 2017 due to the strong yields offered in university towns and cities coupled with a weak pound.

New research from Savills’ has revealed that investment in student property will reach £5.3 billion by the end of 2017. This marks a 17 per cent increase in comparison to 2016. The research suggested that Brexit may have added to the appetite for UK student housing after £2.1 billion was transacted in the sector after the referendum in comparison to £1.9 billion earlier in the year.

The growing demand for investing in student housing assets has outgrown the supply of available stock. 25 per cent of the £4.5 billion traded by Savils last year involved forward funding developments, whilst existing stock made up just 69 per cent of trades. This marks the lowest proportion on record.

The Mistoria Group, specialists in high yielding investment property, supported the high growth results, having seen demand for student property in the North West rise 38 per cent year on year. This was fueled by an increase in investment from Turkey, which accounted for 20 per cent of the growth. The UAE accounted for 9 per cent and Hong Kong at 5 per cent.

Managing Director of The Mistoria Group, Mish Liyanage, commented: ‘We have seen a large increase in international investors’ appetite for student accommodation.  They are attracted to the UK because of the relatively low-cost student property on offer and the excellent net yields that range between 12 per cent and 15 per cent in the North West. Investors have a wide choice of accommodation to chose from, such as HMOs to purpose-built accommodation. There is a general shortage of student accommodation across the UK and especially in university cities such as Liverpool and Plymouth. In Liverpool, there are now 21,700 PBSA units, meaning 2.1 students for each unit. With supply of a further 12,400 units either under construction or with planning permission, this ratio just 1.4.’

He concluded: ‘Liverpool is a great university city to invest in. An HMO property with a superior spec can deliver investors an average gross rental yield of 13 per cent, leveraged return on investment of 35 per cent plus, before any charges and voids.  A three bed HMO which houses three students, can be bought from £120,000 upwards in Liverpool.  The return on investment is very attractive too, with 13 per cent (8 per cent cash rental and 5 per cent capital growth). The gross rent on the property will exceed £1,235 pcm, as each room is rented out.’

Source: Residential Landlord

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Newmarket Investment Landlord Hit With £33,000 Fine For 15 Charges

A rogue Newmarket landlord has been told he must pay almost £33,000 after being found guilty of 15 charges, 13 of which were under the Housing Act 2004.

Russell Wayne Price, of Lisburn Road, Newmarket, was prosecuted by Forest Heath District Council. The remaining charges not under the Housing Act related to Price’s failure to provide information when requested pertaining to his rental properties. At an earlier hearing he denied all charges.

The charges related to two properties in Lisburn Road, Newmarket, that were let as Houses in Multiple Occupation (HMOs). Both properties were inspected in December 2016. They had each been subject to Prohibition Orders served in 2008 and 2009, banning their use as HMOs. Upon inspection, several safety concerns were revealed. They ranged from a lack of gas or electrical safety certificates to a loose electrical socket. Exposed pipework, stairs without a handrail, damp and mould were also discovered. Neither property was deemed to be habitable.

Price was found guilty of all 15 charges following a three-day trial. He was ordered to pay charges and fines totalling £25,900. He must also pay the council’s costs in bringing the prosecution which brought the total to £32,980.

District Judge Timothy King commented on the case: ‘There was a significant risk of harm to individuals.’

Forest Heath’s cabinet member for housing, Councillor Sara Mildmay-White, said: “This should serve as a warning to any other rogue landlords across west Suffolk. Mr Price cut corners and didn’t provided safe accommodation to his tenants. In doing so he put their health and wellbeing at risk and jeopardised their safety. That is why I welcome the outcome of this case which sends a strong message to other rogue landlords. The safety of their tenants – our residents – is of paramount importance. They should not be exposed to inadequate fire safety, and the other health risks that this rogue landlord allowed. It is down to the hard work and perseverance of our housing enforcement team and the shared legal team, that we have achieved this result. I know that the vast majority of our landlords across west Suffolk are conscientious and work very hard to maintain housing standards for their tenants. That is why it is important that we take action against those few that don’t.’

Source: Residential Landlord

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Property Portfolio Riddled With Problems Lands Landlord With Fine

A landlord has been landed with a £6,439 fine after four of the homes in his £1.5 million property portfolio were found to pose safety concerns.

Magistrates inspected two of the homes let by landlord Dilip Gohil, 67. They found that they posed fire safety concerns, and lacked escape routes in case of a fire.

Furthermore, none of the homes in the property portfolio were licensed with Nottingham City Council. According to Sarah Mills, prosecuting, the authority sent out letters informing landlords that houses in multiple occupation (HMO) required five-year licences, costing £910.

A three story house in The Meadows was found by council officers to contain seven bedrooms with five tenants who shared a kitchen and a bathroom. The property did not have the correct licensing for a HMO. A second property, also located in The Meadows, had six bedrooms with three tenants, each paying around £70 per week for a room. It also did not have a licence and contained several fire safety threats.

Miss Mills explained to the court: ‘There was a lack of fire doors throughout the property, the kitchen door did not have a handle and could not be closed. There was a fridge stored in the hallway which provided access to the bathroom, kitchen and rear door.’

A further property owned by Gohil was located in Wilford Crescent East. Inspectors found a six-bedroom house without a licence, and with issues such as a kitchen door that failed to close, which affected the integrity of the fire door and its ability to contain fire and smoke for 30 minutes’ according to Miss Mills.

A final house on the street owned by Gohil also had no licence and issues with fire detectors.

Miss Mills concluded: ‘A large refrigerator was in the hallway outside the kitchen. Smoke detectors were not linked so occupants on the first and second floor would not receive adequate early warning in the event of a fire.”

Gohil admitted to seven breaches of the Housing Act and was fined £4,750. He was also ordered to pay £1,519 council costs and a government tax of £170.

John Campbell, mitigating, told magistrates: ‘He has rectified all the matters subject of these offences. He has applied for licences for all the properties. He didn’t need to be prosecuted to leap into action. The purpose is to maintain standards and safety and that has been served.’

Source: Residential Landlord