The interest in one of our East London site’s is heating up. Currently, we have a hand full of strong bidders who are circling the site. Last week, I had one of the potential investors come and look at the site along with the planner; meeting the planner was more important than seeing the site, as it is more important to hear than to see. Especially from someone who knows his trade. After all, there is only a green waste land to look at. It is more important to understand the council’s policy and possible objections, and thereby ensure they are tackled well in advance. Looking at the site, situated on the high street, intuitively it’s crying out for development. The station is only a few minutes away and takes you into the heart of London in half an hour. The high street, contrary to my expectations, had a very light and airy feel. It’s a location where you can live and breathe, and have the luxury of getting into town within a short while.
The architect has drawn up a scheme for 63 apartments without the need for car parking; this looks doable given the closeness to the station.
My initial reactions are not to sell the apartments, as this area still has mileage in it, and I expect the rental will be very strong. A cursory glance on the high street shows there are many Estate Agents. They can only exist if there is money to be made. Money can only be made if there is liquidity or flow of transactions. This is indicative the area is buzzing. Whether we ultimately decide to develop and sell, or rent, I expect this to be a highly profitable investment.
If the decision is made to sell, it will be very helpful to ensure the development signs up to the Help to Buy Scheme, which is underutilised. This scheme is targeted at first time buyers, and home movers. The ‘bottom’ end of the market, perhaps the most important as far as the whole housing market goes, is the end of the market where new entrants come in, new blood. This ensures the rest of the market is continually revitalised, that’s the theory anyway. This scheme goes up to £600,000 for properties within London. It offers buyers a deposit of up to 40% of the property value. There is no interest on this amount for the next five years after which you will be paying 1.25% plus base.
This means you can sell to buyers with only 5% deposit. The scheme is only applicable to new build schemes.
These numbers are comfortably within the remit of this development. There is a real shortage of good quality homes which have signed up to this scheme irrespective of the market conditions. This scheme once signed up should be sold well before physical completion, as most of the population are struggling to even get a foot in the housing ladder. This deal is not done yet, it’s not on the market, and nothing is done until it’s done. So if you like the sound of this please get in touch!
Agony Agent
Each week, we answer a reader’s rental property question, from first-time landlords to experienced owners. Agony Agent, is here to help!
Q: I have been reading your articles and need your help. My tenants keep making noise and the other residents keep calling me complaining, please can you offer some advice.
A: Sometimes, no matter how thoroughly you check your tenants, they can become the tenants from hell. One of the biggest issues landlords have is when their tenants start to annoy their often long-established neighbours. Whilst landlords aren’t actually responsible for the noise their tenants make, it’s always a good idea to try and ‘keep the peace’.
So, what can you do if your tenants are disturbing others?
Firstly, include in your tenancy agreements a clause where your tenants must agree not to make unnecessary noise or nuisance that may result in stress being caused to residents.
I have made a list of best practice when it comes to advising your tenants about noise:
l Place music systems and televisions on rubber mats or carpet to help absorb sound
l Avoid placing sound emitting appliances next to shared walls
l Check the time of day chosen to carry out housework, DIY and gardening
l Limit noise at unsociable hours - 11pm to 7am
l Avoid leaving dogs barking and disturbing the residents
l Inform residents if they are to carry out disruptive DIY work such as drilling, hammering etc
l Let residents know if they intend to have a party or bonfire
l If going out or returning home late at night take extra care not to disturb residents through loud voices and slamming of doors
If the residents have complained about your tenants being too noisy, then I would suggest firstly to encourage the residents to take it up with your tenant; you are not legally liable for your tenant’s noise.
If they have tried this approach, or are unwilling to try, then you should try and communicate with your tenant regarding the noise complaint. Ask them what activities caused the disturbance. Be understanding, listen to their story, and try to help them come up with a solution.
If this doesn’t make a difference then send them a copy of the tenancy agreement highlighting the noise clause and the repercussions if they breach that clause.
If they persist, enlist the residents’ help. They will need to keep a diary of days and times that the noise is occurring, any patterns and what they feel is the main cause of the noise. If they are willing to use audio recording equipment to build evidence, they should do this, which will help their argument in the long run.
The next step is to present all the evidence to the Environmental Health Department (EHD) in the Local Authority. By law, the local authorities have a duty to deal with any noise that they consider to be what’s known as a ‘statutory nuisance’.
The EHD will then assess the situation with all the proper evidence to hand, if they too decide the noise is too loud and the tenants aren’t willing to do anything about it, you can take the necessary steps to terminate the tenancy. That will involve serving notice on the grounds of too much noise and anti-social behaviour.
We offer an eviction service, so if you need help with this or any other issues please contact me.
