10 Ways To Protect Yourself From ‘Friday Afternoon Fraud’

 

 A new form of cyber attack is on the rise. Fraudsters target the conveyancing solicitors of those in the process of buying a house, infiltrating the company’s email and diverting the funds of the buyer. reallymoving has 10 top tips to avoid losing it all.

 This so called ‘Friday Afternoon Fraud’ (named as hackers take advantage of a busy working day, where transactions can be hurried through before the weekend) can have a huge impact on buyers, with some victims losing their savings, and the property they intended to buy.
The Howard Mollett case this year was particularly painful, where the victim, in attempting to buy his first home, lost £67,000 when scammers used his solicitor’s email address to convince him to send the money to alternate bank accounts. He is still trying to retrieve this money, and no one can decide who is to blame. 

On one hand, legal firms have an obligation to highlight the risks, with 3 in 10 UK law firms being subject to cyber attacks in the last year. However, in research undertaken by tm group, 58% of firms felt not particularly threatened, or not threatened at all. Whilst understanding protection from cyber crime was important, only 13% strongly agreed that they had spent a high proportion of resources securing their communications.

So, whilst the legal profession focuses on considering the safety of their processes, there are things you can do to protect yourself, your property, and your money.

1.    Money and the human approach

If you’re making a bank transaction, or money is changing hands, call your lawyer, using the number you’ve always used for them. Don’t email bank details, and do not automatically transfer money to a bank account given in an email. If your lawyer emails you with bank details, call them and confirm. When you’ve made the transaction, call them again. We get used to needing a paper trail, but when large sums of money are involved, it’s better to talk directly. If the number in the email is not your usual solicitor’s number, or you get forwarded to an automated system, do not call it. Get in touch with your solicitor using the number you’ve used previously, and check whether they meant to send that email.

2.    Don’t underestimate a hacker

As victim Howard Mollett said, “This is not someone claiming to be the cousin of the President of Nigeria asking me to wire money to them.” This was not even a similar email address that had one letter different to his solicitor’s. It was his solicitor’s email address. The hacker replied to previous threads, commenting on recent Mollett’s work trips, making it look genuine. 
Everything you know about hacking – recognising dodgy misspelt emails, or fake companies – does not quite hit the level here. These hackers are more than competent – they have found a way to impersonate the person you trust with your money. 

3.    Stay wary, even if expecting an email

Don’t lower your guard because you have been expecting an email requesting the money – that’s how the hackers make it easy. You’re not being asked for money from nowhere, you are anticipating paying this money, and so it’s not at all strange that you’re being asked for it. Even if you’re waiting to give your payment, call your solicitors when an email arrives. Check that the numbers, email and other details match, but ask them to confirm the email, the bank details and the amount. It is too easy to expect to pay, and to be eager to get on with the process. Do not jump in without double checking every time you pay an amount.

4.    A change of bank account should set off alarm bells

If your legal firm says that they want you to use a different account to one previously used, or a different account because you’re abroad, or the amount is different – question it, and call them directly. Changes in banking are not the norm, and if issued by email, should be checked carefully. 

5.    Know when you’re at risk

You are more likely to be the victim of fraud if you have previously had your identity stolen, along with not having a mortgage, or if you’re living overseas. You can also be more at risk if going through a break up or in the middle of a family dispute, as you are more likely to be distracted and rushed when attempting to finalise a deal. Be extra vigilant and pay attention to your accounts.

6.    Register your property

If your property is not registered, you are more at risk. Check with the Land Registry, ensuring your contact details are correct. You can also sign up for alerts if anyone tries to change your property details, for example, attempting to get a mortgage using your property. You can also pay £40 to stop the Land Registry from registering any sale that is not registered under your name and confirmed by a solicitor.

7.    Don’t leave your property empty

Whether you’re a landlord, own a holiday home, or have inherited an empty property, don’t leave it empty. Be vigilant about registering it, and either visit it, or get someone to keep an eye on the place and collect the post. Having an empty property puts you at a higher risk.

8.    Pick a solicitor who understands the risks and has a plan

This is a hot topic right now, and some firms are responding by using technology to assess conveyancers on the other side of the transaction. When you’re transferring large amounts of money, you want to be sure that not only your solicitors are taking the right precautions, but the other side are as well. Talk to your solicitor about what they do to avoid ‘Friday afternoon fraud’ and ask any questions you need to.

9.    Checking the account first

Another way to be completely sure, if you’re particularly concerned, is to send a small ‘tester’ sum to the account, and then call to check it has been received. If your solicitor can confirm arrival of the money, then you can send the rest. 

10.    Ensure you’re well protected

Whilst it is definitely down to your lawyer to ensure their systems are secure, you also need to make sure yours are too. That means using very secure passwords, which are not used for anything else, and are changed regularly, as well as keeping anti-virus software up to date, and avoiding using insecure servers to make payments. 


Whilst this list should ensure your money arrives to the right people safely, ensuring you have done everything you can to make sure the transaction is secure will be important if anything does go wrong.
Everyone thinks this will never happen to them, or that they are well versed in recognising fake emails, but as the money you put towards your new home is likely to be most of your savings, it is better to be safe than sorry. Always talk to people directly, don’t wait days to see what has happened to the money, and be more wary than you feel necessary. Once the money is gone, it is difficult, if not impossible, to get any of it back. 

Neighbourly disputes – what you need to tell buyers

 

Neighbours, everybody needs good neighbours. Sadly, that isn’t always the case. 

And when it comes to selling your home it is your duty to inform would-be buyers of any neighbourly disputes that have involved official bodies. If you don’t, you leave yourself open to being sued years down the line. 

The guidelines on what you have to declare to prospective property buyers are a little bit murky,  but we will do our best to shine a light on what you should and shouldn’t be doing.

There have been examples in the past where buyers of a home have sued the previous owners for not warning them about especially awful neighbours. 

With this in mind, it’s wise to be aware of the law and what your obligations are. 

Firstly, if you have been unfortunate enough to have had an actual dispute with a problem neighbour, you will have to make reference to this on the form your solicitor sends you – known as a Seller’s Property Information Form (SPIF). 

It is left open to interpretation as to what counts as a dispute and what doesn’t. However, generally speaking, if you’ve contacted your neighbour in writing, or made a complaint to the council or another authority regarding their conduct, you will have to declare this.

The most common types of disputes that would need to be declared on the SPIF are anything that involves shared house maintenance (this is usually to do with repairs to shared facilities like drains or gutters) or boundary disputes (disputes involving land or fence/hedges).

It’s also important to remember that action can be taken by buyers for years after the sale of your property has gone through. 

So, even once you’ve moved out, the problem could come back to bite you if you’re not upfront and honest with buyers from the start.

On the other side of the coin, there are issues that you needn’t mention. For instance, you might have a neighbour who was once a regular holder of noisy, raucous parties, but this is now no longer a problem. 

In this case your buyer would not need to be informed. Similarly, if an issue has been dealt with amicably between you and your neighbour, there is no need to mention this to prospective buyers. 

Other issues such as noise, children and pets tend to be very subjective – so, just because you’ve been driven crazy by the neighbour’s dog barking, doesn’t mean your buyers (who may have pets themselves) will think the same. In other words, you are under no obligation to inform would-be buyers of things like this. 

It’s best to check with your solicitor or estate agent if you are unsure about any of this, what constitutes a dispute and what, if anything, you need to declare. 

The SPIF is a legal part of the contract between you and your buyer, so it’s important to get this right to prevent any issues occurring at a later date. 

Neighbourly disputes, when they do occur, can be very colourful and newsworthy – as we saw with Channel 4’s Posh Neighbours at War, which was screened on Monday 3rd May.  

Many people will have heard of the story of the wonderfully named Zipporah Lisle-Mainwaring, the eccentric property developer who painted her plush Kensington home in red and white stripes just to irritate her neighbours that objected to her planning applications.

The dispute with her neighbours, who have labelled the property as an eyesore, has gone back and forth to the high court and magistrates’ court several times with still no end in sight.

Super-rich neighbours are also increasingly at war over new basements being dug, as well as things such as noisy-leaf blowing and even an opera festival being staged! 

The likelihood of disputes with neighbours remains very low, and it’s very unlikely that you’ll be taking anyone to court over a stripy coloured home, but if any issues do arise it’s vital that you go through the proper channels and declare it to the buyers of your property. 

It could cost you must more in the long-term if you don’t.

Up and up and up – why are asking prices continuing to rise and what does this mean for buyers and sellers?

 

Despite the cost-of-living crisis, political uncertainty and various other factors at play, asking prices for UK properties continue to rise – and rise at astronomical rates.

 According to Rightmove, average asking prices for UK homes have soared by £55,000 since the beginning of the pandemic, with no slowdown as a result of the cost-of-living crisis that has gripped the nation.

The property website also revealed that asking prices increased by £7,400 (or 2.1%) between April and May, bringing the average to a new record high of £367,501.

What’s more, despite concerns about the health of the UK economy – with inflation at a 40-year high, interest rates increasing at a rapid rate and wage stagnation or declines in many industries – prices have grown by 10.1% in the past year alone. The property market is therefore bucking the trends seen elsewhere.

Rightmove have said that a fourth successive interest rate rise by the Bank of England (there’s now been a fifth since the research was released, as the Bank tries to keep inflation in check) has done little to reduce demand.

And it is this demand that explains why asking prices continue to rise even as people’s bank balances start to feel the pinch. Demand is continuing to massively outweigh supply, which means only one thing – an upwards pressure on house prices.

There are no signs that the supply-side issue is going to be fixed anytime soon, which could lead to asking prices rising higher still.

Rightmove’s findings help to paint the picture more vividly. It found that activity levels remain robust and substantially greater than before the pandemic. In fact, the portal said that the number of buyers is up nearly a third compared to 2019 levels.

Additionally, sales agreed have risen by 12% so far this year, in comparison to the same period in 2019, but are down 17% in the year to date compared to 2021, when the stamp duty holiday was still in force.

By contrast, the number of available properties for sale on the market is down 16% compared to last year and 55% compared to 2019. With the most acute shortages being for two and three-bedroomed semi-detached homes.

The ongoing disparity between supply and demand means it remains a sellers’ market for many, with those looking to sell their homes remaining in a strong negotiating position.

Will it last?

Tim Bannister, director of property at Rightmove, believes that rising living costs and interest rates will begin to negatively impact prices later this year.

He said: “People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment. What the data is showing us right now is that those who have the ability to do so are prioritising their home and moving, and the imbalance between supply and demand is supporting rising prices.”

He added: “Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained.”

While both high demand and constrained supply remain in place, there is unlikely to be any major drop in asking prices.

However, there are signs that buyer demand will start to diminish, with Rightmove pointing out in its research that average monthly mortgage payments in May increased to overtake average monthly rent payments.

The research found that the average monthly mortgage payment for a typical First Time Buyer has gone up by 13% (£100) since December 2021, following successive interest rate rises. That said, this is only 11% (£87) higher than ten years ago.

What happens next?

The future is largely reliant on how buyers and sellers react to the cost-of-living crisis, which is going to remain with us for some time. The current domestic and global political uncertainty could also start to have an impact. Although, so far, the property market has batted away Covid-19 and the cost-of-living crisis much more easily than it did Brexit deadlock and the global financial crisis.

The fundamentals of the market remain sound, which makes any sudden falls in prices unlikely. Buyers may still be keen to buy before interest rates go up again, and while decent mortgage deals remain on the market. If they are First Time Buyers, they may feel that trying to get on the property ladder is a better way of shielding themselves against the rising cost of living than renting.

Sellers, meanwhile, continue to find themselves in an enviable position for the moment, but may be wary of the long-term impact of the cost-of-living crisis and may be eager to sell now before the market takes a turn for the worse.

There have already been some murmurings of a slowdown in the market, which could convince wavering sellers to act now.

Problems remain with the number of transactions that fall through each year, and the time it takes to get a sale completed, which could continue to put some sellers off.

While ever-increasing asking prices might seem like fantastic news for sellers, for a smooth and well-functioning property market, it’s not really sustainable. There is also always a danger that the bubble bursts, like it did in 2007-8, and issues like negative equity start to rear their head again.

For the moment, that seems highly unlikely, and the greater likelihood is that average asking prices will continue to go up month on month for the foreseeable future.

 

Neighbourly disputes – what you need to tell buyers

Neighbours, everybody needs good neighbours. Sadly, that isn’t always the case. 

And when it comes to selling your home it is your duty to inform would-be buyers of any neighbourly disputes that have involved official bodies. If you don’t, you leave yourself open to being sued years down the line. 

The guidelines on what you have to declare to prospective property buyers are a little bit murky,  but we will do our best to shine a light on what you should and shouldn’t be doing.

There have been examples in the past where buyers of a home have sued the previous owners for not warning them about especially awful neighbours. 

With this in mind, it’s wise to be aware of the law and what your obligations are. 

Firstly, if you have been unfortunate enough to have had an actual dispute with a problem neighbour, you will have to make reference to this on the form your solicitor sends you – known as a Seller’s Property Information Form (SPIF). 

It is left open to interpretation as to what counts as a dispute and what doesn’t. However, generally speaking, if you’ve contacted your neighbour in writing, or made a complaint to the council or another authority regarding their conduct, you will have to declare this.

The most common types of disputes that would need to be declared on the SPIF are anything that involves shared house maintenance (this is usually to do with repairs to shared facilities like drains or gutters) or boundary disputes (disputes involving land or fence/hedges).

It’s also important to remember that action can be taken by buyers for years after the sale of your property has gone through. 

So, even once you’ve moved out, the problem could come back to bite you if you’re not upfront and honest with buyers from the start.

On the other side of the coin, there are issues that you needn’t mention. For instance, you might have a neighbour who was once a regular holder of noisy, raucous parties, but this is now no longer a problem. 

In this case your buyer would not need to be informed. Similarly, if an issue has been dealt with amicably between you and your neighbour, there is no need to mention this to prospective buyers. 

Other issues such as noise, children and pets tend to be very subjective – so, just because you’ve been driven crazy by the neighbour’s dog barking, doesn’t mean your buyers (who may have pets themselves) will think the same. In other words, you are under no obligation to inform would-be buyers of things like this. 

It’s best to check with your solicitor or estate agent if you are unsure about any of this, what constitutes a dispute and what, if anything, you need to declare. 

The SPIF is a legal part of the contract between you and your buyer, so it’s important to get this right to prevent any issues occurring at a later date. 

Neighbourly disputes, when they do occur, can be very colourful and newsworthy – as we saw with Channel 4’s Posh Neighbours at War, which was screened on Monday 3rd May.  

Many people will have heard of the story of the wonderfully named Zipporah Lisle-Mainwaring, the eccentric property developer who painted her plush Kensington home in red and white stripes just to irritate her neighbours that objected to her planning applications.

The dispute with her neighbours, who have labelled the property as an eyesore, has gone back and forth to the high court and magistrates’ court several times with still no end in sight.

Super-rich neighbours are also increasingly at war over new basements being dug, as well as things such as noisy-leaf blowing and even an opera festival being staged! 

The likelihood of disputes with neighbours remains very low, and it’s very unlikely that you’ll be taking anyone to court over a stripy coloured home, but if any issues do arise it’s vital that you go through the proper channels and declare it to the buyers of your property. 

It could cost you must more in the long-term if you don’t.

 

Your job and home affordability

 If you're looking to own a home, you need to know for sure that you can afford the mortgage repayments each month. 

It's why people need to know beforehand how much they could borrow – dependent on income – and how much mortgage repayments will be on different types/sizes of mortgages.

Put simply, the job you have is likely to decide the type of home you can afford. 

To this end, here at reallymoving we've looked at what percentage of homes people can afford by job and location. 

By analysing UK salaries and property prices, we have calculated what proportion of homes people in certain jobs could afford, broken down by city.

In order to create our 'home and mortgage affordability' charts, we combined data from three sources (ONS Annual Survey of Hours and Earnings, Land Registry Paid Price Data and reallymoving.com data and analysis) to produce a simple illustration of homes in selected major UK cities that people working full time in 12 popular jobs could afford.

The major cities we focused on were Belfast, Birmingham, Cardiff, London, Manchester and Glasgow, to ensure that we got as great a sweep of the UK as possible. 

The 12 occupations we focused on were chief executive, doctor, train driver, police officer, teacher, social worker, nurse, bricklayer, car mechanic, taxi driver, sales assistant and bar employee. 

We worked on the assumption that people have a deposit equal to six months gross salary, and a mortgage of 4.5 times gross salary. 

Incomes, meanwhile, were based on median average full-time salaries for each job and location.

The findings are very revealing... 

London

In the capital, for example, chief executives would be able to afford 80% of the homes on offer, with doctors not far behind on 61%. 

After this, though, the prospects of affordability for the other occupations are much, much bleaker. 

Train drivers would be able to afford 25% of the homes in the capital, while for police officers and teachers it's 14% and 13% respectively. 

This falls even further for the remaining occupations: social workers (6%), nurses (7%), bricklayers (3%), car mechanics (2%), taxi drivers (2%), sales assistants (1%) and bar staff (1%). 
 
Unsurprisingly, the more well-off you are, the greater your chances of buying a home in London. For those in middle-income or lower-paid jobs, the task is almost impossible.    

Manchester

Manchester is much more affordable for all occupations, with chief executives (97%), doctors (96%), train drivers (87%) and police officers (76%) all finding affordable housing easy to come by. 

The percentage of properties that teachers (73%), social workers (64%) and nurses (57%) could afford is also much, much higher, although lower-paid positions such as sales assistants (14%) and bar workers still struggle (4%).

Glasgow

In Scotland, Glasgow proves affordable for nearly all of the occupations we looked at. 

Taxi drivers could afford 54% of home on offer, rising to 62% for bricklayers and 65% for car mechanics. 

CEOs, doctors and train drivers could afford more than 90% of homes, police officers and teachers more than 80% and social workers and nurses more than 70%. 

Sales assistants and bar staff also have a better chance, up to 21% and 14% respectively. 

Cardiff

The Welsh capital, on the other hand, is more evenly split, with the better paying professions being able to afford a far greater percentage of homes than the lesser-paid ones. 

CEOs, doctors and train drivers again fare very well, as do police officers, teachers and social workers (to a lesser extent). 

However, nurses, bricklayers, car mechanics and taxi drivers are left lagging behind somewhat, while the affordability prospects for sales assistants and bar staff are poor (13% and 9% respectively).    

Birmingham

The UK's second city – which, like Manchester, is seen as far more affordable than London – is also quite top heavy. 

CEOs, doctors and train drivers in Birmingham could all afford a high percentage of homes, while police officers (68%) and teachers (60%) don't fare too badly. 

All of the other occupations are below 50%, with bricklayers (26%), car mechanics (26%) and taxi drivers (23%) having very little wriggle room on affordability. The situation is even more bleak for sales assistants (4%) and bar staff (2%).

Belfast

Meanwhile, the picture looks rosier for nearly all occupations in Belfast, where the chances of nurses (65%) and social workers (63%) affording a home are good. 

The situation also isn't completely terrible for bricklayers and car mechanics (both 45%). Once again, the outlook for the five best-paid professions is excellent, while the two lowest-paid professions lag well behind. 

Looking at the results by profession, it's clear that chief executives – as you might expect – lead the way when it comes to the number of homes they can afford in each city. 

They scored 94% or more in every city other than London, and even in the capital CEOs have an 80% chance of affording a home. 

Doctors, another highly-paid profession, also scored more than 90% in every city except the capital. In London, they were the only profession that was even close to CEOs in the percentage of homes they could afford.

Train drivers, meanwhile, have a very good chance of affording a home if they live outside of London, something that is also the case for police officers and, to a slightly lesser extent, teachers. 

For social workers, Glasgow, Belfast and Manchester offer the most hope, while Birmingham and (much more so) London are best avoided. It's a similar story for nurses, who will find affording a home in London nigh on impossible, but have a better chance in the Northern Irish capital or Scotland's second city. 

Glasgow is also the only real place that offers bricklayers a decent chance of affording a home, ditto car mechanics. For taxi drivers, the chances of affording a home in any of the cities we focused on are slim, but Glasgow is again the only city that offers them some hope (with 54% of properties they can afford). 

For the lowest-paid positions – sales assistants and bar staff – the situation looks is not very promising across the board. Again, Glasgow offers the most hope – but the chances of people in these jobs finding any affordable housing is slim.

Can blockchain speed up the conveyancing process?

With more research going into speeding up the conveyancing process, we ask whether blockchain is really the answer.

 One of the most important parts of the home buying and selling process is conveyancing – the legal act of transferring home ownership from the seller to the buyer.
 
But it can be a slow, frustrating and cumbersome process, which has led to calls in recent years for ways of speeding it up.
 
A solution that has been discussed in the past is the use of blockchain in property transactions. Here, we take a look at what it is and whether it’s the answer to making conveyancing less laborious for all involved.
 
What is blockchain?
 
Blockchain, which is the technology that enables bitcoin and other cryptocurrencies to function, is an open, digital and distributed ledger which records transactions between two parties in an 'efficient, permanent and verifiable way'.
 
It aims to create a world where contracts (both property and otherwise) would be transformed into digital code and protected in shared, transparent databases, free from doctoring, deletion or corruption. The digital trail would also mean the contracts are easily validated and easy to track down.
 
Land Registry explores blockchain
 
As part of its two-phase digitisation programme, to work out how innovative technologies can make the house buying process smoother and quicker, HM Land Registry has been working with specialists to explore the possible benefits of blockchain for the property market.
 
The digital transformation project – known as Digital Street – has been analysing ways of improving the property buying process in the future, with Land Registry rigorously testing blockchain and recently successfully using a prototype of the technology to highlight how buying and selling a home can be made simpler and quicker by demonstrating a digital transfer of ownership.
 
To show how the emerging technology could be used to cut uncertainty and delays when people are buying a home, a trial was carried out on the sale of a semi-detached house in Gillingham, Kent.
 
“It was really straightforward,” said Stefan, the seller of the house in Gillingham who took part in the trial. “It shows how technology like this can help make everything so much quicker and you can see clearly what’s happening at every stage. If this is the way forward, it’s going to make everything easier.”
 
HM Land Registry’s prototype blockchain technology was developed through conversations with stakeholders across the property market, and tested with the close cooperation of Mishcon de Reya, Premier Property Lawyers, Shieldpay and Yoti.
 
At present, the Land Registry’s trials with blockchain are merely exploratory – and a way of proving that the technology can be used to speed up the conveyancing process.
 
“We wanted to work with the industry to make sure that we understood how forms of the blockchain network could work to benefit the industry as a whole,” a Land Registry spokesman said.
 
“We’re looking to take all we have learned from this successful test and discuss it further, internally and with members of the Digital Street community – which is comprised of regulators of conveyancers, mortgage lenders, and technologists.”
 
 “Land Registry is often cited as a potential use case of blockchain, so we thought we should be doing thorough due diligence [and] seeing what it can actually bring to the property market in the UK,” the spokesman added.
 
With delays to the buying process causing stress and, in some cases, the total collapse of the sale, anything that can be done to speed up currently slow property transactions will be welcomed by buyers and sellers alike.
 
While HM Land Registry isn’t yet ready to roll out blockchain technology to the masses, the successful recent trial suggests it could be a part of the conveyancing process sooner rather than later, reducing the risk of transactions failing or being abandoned at considerable cost to both parties.
 
Further trials and purchases by blockchain
 
Recently, a number of key PropTech players behind a trial of blockchain claimed that the technology can reduce the time of a transaction from the typical three months to something much closer to three weeks.
 
While few details of the trial have emerged, a statement from Instant Property Network (IPN) said it had successfully completed ‘a global trial of a new distributed ledger-based system, demonstrating the potential to speed up property transactions by months.’
 
The latest trial, facilitated by a blockchain software firm, ran transactions using test data through a new ledger system to simulate property sales over a five-day period and claims to have shown how costly duplications in the transaction process could have been removed.
 
“It’s estimated that, with the addition of off ledger business process and consumer decisions, the end to end buy/sell process could be reduced from over three months to less than three weeks,” IPN said.
According to IPN, each property transaction currently involves, on average, eight parties plus the buyer and seller, with data shared through dozens of documents, platforms and databases. This, it says, can cause errors, increased costs, uncertainty and delays in transactions.
 
To solve this, IPN has created a system where participants can join up their business processes and transact directly. Although the network does not store data itself, it has the capability to integrate with a company’s existing technology.
 
“This means that each party retains control over their own data - negating the risk of breaches and compliance issues and vastly reducing risk and the cost of continuous reconciliation of facts and data,” the statement continued. “The trial revealed that most companies will be able to deploy the platform in a matter of days, opening the door to widespread adoption throughout the property industry.”
 
The trial involved 40 organisations in 23 countries, with several familiar to UK transactions, such as Barclays, Clifford Chance, AXA XL, Royal Bank of Scotland, BBVA, Search Acumen, Shieldpay and Swiss Re.
 
Blockchain has, however, already been used in some house sales. In October 2017, electronic property transaction platform Clicktopurchase claimed to be the first to complete an online property transaction by blockchain for a home in Trowbridge, Wiltshire, while the same platform was later used by HS Property Group to sell a four-bed HMO in Oldham, Greater Manchester.
 
More recently, at an auction held by London-based Clicktopurchase, a Dublin house was sold using both blockchain and artificial intelligence (AI).
 
In this case, a verified bidder was able to submit an offer on behalf of a buyer, in turn creating an electronic offer with a legally binding electronic signature. Once the offer had been accepted by the agent, solicitor or seller operating the dashboard, a second electronic signature was added and an immediate online exchange of a property contract took place.
 
From the above, there certainly seems to be evidence to suggest that blockchain (and other types of new technologies) can play a key role in speeding up the conveyancing process, making transactions safer, quicker, simpler and more transparent.
 
A mass rollout still seems some way off, but the trials taking place and Land Registry’s high-profile digital transformation programme suggests a faster, more tech-led approach to property transactions is on its way. The days of frustrating delays and high levels of stress could soon be a thing of the past.
 

Regulations For Private Landlords

 

 

 

With many rules in the private rental sector, it is more important than ever for private residential landlords to keep up with the latest regulations. Compare conveyance solicitors Today

In recent years, the buy-to-let market has become more regulated than ever. In fact, the changes to the property investment sector have pushed many buy-to-let landlords and investors to set up limited companies showing how the sector is becoming more professionalised. While increased regulation is not always celebrated, it does mean there’s more accountability for landlords within the private rented sector which in turn is improving standards all round.

Compare Conveyance solicitors Today – Conveyancing Store compares conveyancers and Conveyancing fees online to make sure you get the best service and speed up your move whether you’re buying, selling or remortgaging.

What Are Landlords’ Legal Responsibilities?

There have been a number of recent regulation changes buy-to-let landlords need to be aware of. Here are some of the most important.

Electrical Safety Standards

Landlords MUST ensure that all of their privately rented properties comply with the new electrical safety regulations. This is part of the government’s drive to improve standards across the private rented sector.

These regulations require landlords to have the electrical installations in their properties inspected and tested by a person who is qualified and competent, at an interval of at least every 5 years. Landlords must provide a copy of the EPC to their tenants, and to their local authority if requested. The Regulations came into force on 1 June 2020. They form part of the Department’s wider work to improve safety in all residential premises, particularly in the private rented sector.

This is a major step towards levelling up the private rented sector. It makes sure it will offer high-quality, safe and secure housing. 

If any work is necessary to fix any minor faults, landlords must hire a qualified person to carry this out. Once all the electrical fixtures and fittings are compliant, landlords should obtain a written report. They must supply this to their tenants.

Meeting Safety Standards

Landlords must ensure tenants are safe as follows:

• A smoke alarm must be installed on every floor of the property.
• Carbon monoxide detectors must be placed in rooms with a coal fire or wood burning stove.
• a gas safety certificate for EVERY gas appliance must be available inside the property.
• To reduce fire risk, all furniture must meet safety standards and display the appropriate labels.
• Any electrical devices must be safe for use. We recommend an Installation Survey or Portable Appliance Testing (PAT) so you can be sure you are compliant.
• The water supply must be working properly to protect tenants from Legionella.

A Housing, Health and Safety Rating System (HHSRS) allows local authorities to assess the condition of a property and any potential hazards. The aim is to maintain good standards in the private rented section. Your Move can help you understand how this legislation may apply to your property.

Right to Rent

Landlords have a responsibility to restrict illegal immigrants accessing the private rented sector. They must check that a tenant is legally allowed to reside in the UK. If a landlord rents out a property to a tenant without the right to rent, the penalty is an unlimited fine and up to 5 years in prison. (There are some tenants who you don’t have to check but this depends on types of accommodation). 

Information For Your Tenant

Your tenant must be provided with the landlord’s full name and address, or details of their letting agent. Your tenant must also receive a copy of the Government’s How to Rent guide. This gives practical advice about what to do before and during a let.

Protecting a tenant’s deposit

Most tenancies are assured shorthold tenancies (AST). As a landlord you must protect the tenancy deposit with a UK government-approved deposit protection scheme.

A landlord of an AST who doesn’t protect the deposit can be fined. It can make it much harder to end the tenancy.

Deposits must be returned in full at the end of the tenancy, unless there is a dispute about damage caused to the property or unpaid rent.

Repairs

Landlords are responsible for most repairs to the exterior or structure of a property. This means that any problems with the roof, chimneys, walls, guttering and drains are the responsibility of the landlord. Landlords are also responsible for keeping the equipment for supplying water, gas and electricity in safe working order.

Accessing the property

As a landlord it is inevitable that you will need to access the property from time to time. Maybe to carry out repairs and inspections. However, access must not cause any unnecessary interference to your tenant.

Give reasonable notice and arrange a suitable time with yourself and the tenant. The notice period is usually set out in your tenancy agreement

How Much Notice Do Landlords Have To Give? 

Your landlord must follow strict procedures if they want you to leave their property, depending on the type of tenancy agreement you have and the terms of it. If they do not, they may be guilty of illegally evicting or harassing you.