Tenants now carry out reference checks on landlords

There was a time when any tenant was considering moving into a privately rented property that the landlord would be sure to get a credit check carried out on the potential tenant. Read more

Tags: top, property, tenants, reference, Politics, government backed scheme, check, real problems

Bailed out banks acting up

Earlier this month a number of MPs expressed their concern over how many of the leading UK banks that have been bailed out with the use of taxpayers’ money are acting terribly in the current recession. Read more

Tags: Politics, finance, Liberal Democrat, lack, Treasury Select Committee, List of banks in the United Kingdom, banks, quid

Branson not happy about bailouts for other firms

Successful and world renowned businessman Sir Richard Branson has recently expressed his views on the topic of the government using taxpayer’s money to bail out other businesses in addition to the financial industry. Read more

Tags: richard branson, Economic history, British people, Politics, government bailout, money

Government stick up for councils over Iceland cash

Following the collapse of Icelandic banks earlier this month it was revealed that over one hundred councils across the country had lost millions of pounds, which they had invested in the Icelandic banks, which then went bust. There was outrage amongst consumers, who wanted to know why the council had been putting money into these banks, and the government was unable to provide any guarantee that the councils would receive back their money. Read more

Tags: Local government in England, iceland banks, case basis, Politics, honour, work, compensation scheme guarantees, right

What will happen to charity cash invested in Icelandic banks?

Following the collapse of Icelandic banks a number of charities that had money invested in these banks because of the high rates of interest being offered have come forward with concerns that they may have lost millions of pounds. The UK government has given a 100% guarantee on UK consumer savings in these banks after the Icelandic government failed to do so, but there was no indication given with regards to whether this guarantee would be given to charities and authorities with money in the banks. Read more

Tags: charity, voluntary organisations, banking crisis, cat, iceland banks, banks, KSF, Politics

Investors getting greener

Many more people are concerned to ensure their investments are made in a firm that is socially and environmentally responsible, it has emerged.

Mark Robertson, a spokesperson for EIRIS, explains that people are increasingly considering their options when it comes to ethical finances.

“There has been a huge upsurge in interest on ethical issues from consumers generally; more people are buying organic food produce, more people are buying greener energy products, and the interest is now spilling over into finance now and issues, particularly like climate change are driving things,” he said.

There are many more options available than there once were when it comes to green finances, he explained.

This year, Citigroup committed $50 billion (£24 billion) to green projects, joining many other leading financial companies who are starting to address green issues.

In June this year, Which? found that 47 per cent of women would be prepared to accept a lower return on their investment if their bank operated ethically, compared with just 36 per cent of men.

Tags: spilling, Politics, cent, huge upsurge, energy products, green finances, business, Dow Jones Industrial Average

Hips divide industry figures

Home Information Packs (Hips) have won the first round of debates which could see their introduction on June 1st postponed.

The packs were given the go-ahead following a House of Commons vote but now they face a challenge in the House of Lords.

The housing market has been responding to the victory in the Commons, with the Association of Home Information Pack Providers (Ahipp) saying that it is good news for the environment.

“Yet again, government has demonstrated its commitment to reducing the carbon emissions of our housing stock and to improving the house buying and selling process for consumers across England and Wales, through the implementation of Home Information Packs,” said Mike Ockenden, director general at Ahipp.

“Industry is ready to deliver Hips and the benefits that the packs will offer to both consumers and the environment.”

The same view is not shared by the Royal Institute of Chartered Surveyors (Rics) however, which has commenced Judicial Review proceedings against the government over the introduction of Hips.

It has called upon the government to take “action” and postpone their roll out on June 1st.

“The introduction of Hips will have few benefits to the consumer and adversely affect the housing market and the wider economy,” said Jeremy Leaf from Rics.

“The government should be brave and postpone their flawed plans for home buying reform. By preventing this potentially damaging and chaotic policy Gordon Brown could give substance to his claim to lead a listening government.”

Tags: Jeremy Leaf, gordon brown, reform, england, hips, director, carbon, Politics

New buy-to-let trend

A new trend is developing in the buy-to-let market, with people buying homes and renting them out then using the money to pay their own rent.

Many first-time buyers are finding it so difficult to buy a property in the south, and in particular London, that they have to rent, says website SpareRoom.com.

However, they feel as though they are wasting money this way, so they buy a house in a cheaper area and rent it out.

The rent they receive from this property then goes towards paying their mortgage and their own rent but, in the mean time, they are buying a home.

“We’re seeing a definite increase in young first-time buyers taking on a bigger mortgage than they can afford on their own and renting out a second room to pay for it,” said Rupert Hunt, founder of SpareRoom.

“Not everyone wants the risks that come with joint ownership. Until recently it has been tricky for people to get a big enough mortgage to buy somewhere with a second room to rent out, but things are getting easier.”

In response to this growing trend, many mortgage providers are now offering loans which take into account income earned through renting another property.

Tags: Equity sharing, trend, Politics, way, Mortgage loan, young first-time buyers, Renting, Real estate

House accessibility plunges

The chance of first time home buyers being able to afford a house has plummeted in the last ten years.

Since 1996, accessibility has dropped by an astonishing 230 per cent, matching the low levels seen during the 1980s, says the Royal Institute of Chartered Surveyors (Rics).

An average couple who are looking to get on the property ladder will have to fork out 81.8 per cent of their joint take-home pay, just to make up the £32,784 of up front costs needed to buy a typical house, including deposit and stamp duty.

In 1996, a couple only needed 25.2 per cent of their joint income to start the process of buying a home and analysts predict that things are set to get worse, with a 12 per cent rise in prices in the next two years.

“Spiralling house prices have created a property glass ceiling for many first time buyers,” said David Stubbs, Rics senior economist.

“With couples needing nearly 82 per cent of joint take-home income to fund the upfront buying costs of a typical home, the government’s plans to create an inclusive society seem like a pipe dream.

“Unless the government builds more affordable housing, and raises the stamp duty threshold, many households will continue to struggle to access the housing market,” he added.

Mr Stubbs went on to say that tomorrow’s (January 12th’s) interest rate decision would be watched closely by many households, although analysts expect that another rise will be announced.

Tags: Institute, upfront buying costs, property ladder, last ten years, GBP, typical house