Help To Buy Price Difference Is Rising

The difference in the price paid by first time buyers for new build homes with Help to Buy, compared to the price paid by those buying new homes without the scheme has increased. New research shows that the price difference increased to 12% in January and February this year compared with 8% in October 2018. The study from ReallyMoving says that this could be because developers are charging a premium for homes for sale through Help to Buy and warns that the property may not be worth what the buyer paid for it, when they come to sell. Read more on the Property Wire website.

https://www.propertywire.com/news/uk/help-to-buy-price-difference-is-rising-new-study-shows/

‘Rip-Off Rents’ Forcing Families Into Poverty, Warns Labour

Labour has condemned “rip-off rents” it says are driving more families into poverty. It comes after figures revealed a 150% increase in the number of youngsters living in severe poverty in the private rented sector. There were 50,000 children recorded as falling into this category over the period 2015-16 to 2017-18, Scottish Government data shows, up from 20,000 a decade before. Households are classed as being in severe poverty if they have less than 50% of the UK median income to live on, after housing costs have been met. Read more on the Express & Star website.

https://www.expressandstar.com/news/uk-news/2019/04/10/rip-off-rents-forcing-families-into-poverty-warns-labour/

MPs Blame Bad Legal Advice For Families Trapped In Unsellable Houses

Lawyers have been accused of failing thousands of families stuck with toxic home leases. They face a Government-backed inquiry over claims they did not warn buyers about 'feudal' terms and rip-off charges. Some families have been forced to pay rent on the ground beneath their homes that can double every ten years. They also face exorbitant 'permission charges' to make changes such as building a conservatory or replacing a front door. However, many of those affected say their conveyancing solicitor had not made them aware of such costs – or that they had struck deals with developers including referral fees. Read more on the Mailonline.

https://www.dailymail.co.uk/news/article-6676623/Leasehold-row-MPs-blame-bad-legal-advice-families-trapped-unsellable-houses.html

Councils ‘Ripped Off’ By Private Landlords

Desperate councils are being “ripped off” as private housing providers take advantage of the growing homeless population, experts have warned, after new figures revealed that local authorities’ spending on temporary accommodation had soared to almost £1bn. Analysis by the Guardian and the housing charity Shelter found that councils across England spent £997m on temporary accommodation in 2017-18, a 71% increase on the £584m in 2012-13. Some councils are spending as much as £200 per head of their population on sheltering homeless households. Housing policy experts said that the sharp rise in homelessness coupled with increasing charges from private providers were behind the increase. Read more on the Guardian website.

https://www.theguardian.com/society/2019/jan/01/councils-ripped-off-by-private-landlords-experts-warn

Residents Hit By Care Homes Rip-Off

Middle-class families are facing rip-off tactics from care home owners desperate to stay in business, according to a report. The ratio of care home residents who pay their own bills has risen to 41 per cent, and sharp practice against them by owners and operators has been multiplying, Age UK said. The tricks used to extort thousands of pounds from residents include demands that their families should take responsibility for paying their bill, and long notice periods that mean families must pay for weeks of care that have not been given. Families also face arbitrary hikes in fees; and unexpected charges for extras such as providing entertainment or hospital visits. Read more on the Daily Mail website.