Vendre ou ne pas vendre – To sell or not to sell

 2023 saw a record low for house sales in France and 2024 is set to be just as bad, but is there hope on the horizon.

It was reported by Altarés that just under 900 l'agent immobiliers (estate agents) hung up the ‘closed’ sign for good, either going into liquidation or receivership in 2023 fueled by falling property sales.

The closures effected both larger national chains as well a local independent agents and was a sharp increase of 116% on 2022 figures and is the highest since the housing crisis in 2009.

The cost of living coupled with increasing interest rates have created a difficult market with property sales decreasing rapidly. A recent report from Fédération Nationale de l’Immobilier – Fraces leading estate agent union, stated that 875,000 non new-build houses were sold in 2023, that’s a 22% drop from over 1,115,000 in 2022, this equates to the sharpest year-on-year drop for a decade.

With mortgage rates still above 4% for an average 20 year term the industry is seeing a 19% drop in transactions. It is hoped the proposed rule change for mortgages to be extended from 20 to 25 years may help buyers return to the market

Many agents were still struggling to pick themselves back up after covid, with a number of smaller agencies financially crippled by the repayments of State loaned covid payments

Property values have also seen a dip with Paris experiencing up to 3.7% drop in average house price, whereas regions outside of the Countrys’ capital are seeing even bigger declines in value, Lyon and Toulon saw 85% drop while La Rochelle, Toulouse, Le mans and Liile saw values drop between 3%-6%. The North and West of France saw the biggest drop between 15% and 30%

This trend is not helped by the lack of first time buyers to the market, many are opting to remain in rented accommodation because of the cost of mortgages coupled with the reluctance of sellers to accept lower prices.

The new build market has not avoided this problem either, with the rising cost of raw materials, inflation and the lack of buyers, construction of new build blocks ( flats & apartments) has dropped by 13% in the last 3 months with houses seeing a 7% drop, the reservations for new build homes has dropped 40% in the last 12 months, despite the expected boost to the sector by the PTZ an interest free loan designed to spark an increase in new build purchases, notaires are saying the complexity of the application is putting many first time buyers off

2024 is predicted to be worse with house prices plummeting further, but there may well be light at the end of the tunnel in the form of British buyers.

New rule for staying longer in France

In December 2023 French MPs voted to allow Brits who own second homes in France to stay in the country for up to 6 months without a visa, this is in contrast to the previously restrictive Schengen rules which only allowed a stay of up to 90 days in any 180 days period – interestingly these previous restrictions were not mirrored for any French who wished to stay in the UK who have always been allowed to stay up to 6 months without a visa.

It is estimated over 86,000 Brits own a second home in France and this is expected to increase with the relaxation of the rules.

Property portal Kyero recorded a 582% increase in Brits house hunting in France in the 3 weeks following the change in the rules.

With Spain also in talks to relax their residency rules it could open the floodgates for international property transactions.

Lets hope this is the lifeline French agents have been waiting for

 

 

Navigating GDPR: Tenant Contact Details and the Role of Tradesmen and Utility Companies

The General Data Protection Regulation (GDPR) has significantly transformed the way landlords and letting agent handle personal data.

The Information Commissioner's Office (ICO) recently released updated guidance for agencies after an analysis revealed a lack of understanding in the UK housing sector.

This guidance and stark warnings from the ICO comes in the wake of a high number of complaints from tenants about inadequate protection of personal data, exposing them to potential distress, discrimination, identity theft, and even physical harm.

Helen Raftery, Head of Data Protection Complaints at the ICO, said, “We have received a number of complaints from residents who have been failed by poor data protection practices from their housing association, company or landlord – whether that’s inaccurate record-keeping, leading to anxiety, or necessary repairs being refused due to a misunderstanding about data sharing.”

GDPR places a considerable emphasis on safeguarding the privacy and rights of tenants. One area of concern is the sharing of tenant contact details with tradesmen and utility companies, as it raises questions about data protection and the lawful processing of personal information.

GDPR, came into effect in May 2018, emphasising transparency, fairness, and accountability in the processing of personal data. For landlords and letting agents, this means being cautious about how tenant information is shared and ensuring that such actions comply with the regulation.

Agents and landlords should be registered with Information commissioners office (ICO) and have readily available policies that detail how a persons data will be used and stored and who and how it will be shared

Landlords and agent often find themselves in situations where they need to provide tenant contact details to tradesmen or utility companies for necessary maintenance, repairs, or service installations. While this is a common and essential practice, it is crucial to ensure that it aligns with GDPR principles.

Under GDPR, any processing of personal data must have a lawful basis. In the case of providing tenant contact details to tradesmen or utility companies, the lawful basis often falls under the category of "legitimate interests" or "contractual necessity." This implies that sharing such information is necessary for the performance of a contract or legitimate interests of the landlord, as long as it does not override the rights and freedoms of the tenant.

To remain GDPR-compliant, landlords and agents should seek tenants' consent for sharing their contact details with third parties. Clear communication about the purpose of sharing this information, the specific recipients, and the duration of access is essential. Landlords and agents should also inform tenants of their right to withdraw consent at any time.

Landlords and agents should adopt a principle of data minimisation, only providing tradesmen and utility companies with the necessary information required for the specific task at hand. Additionally, it is crucial to ensure the secure transmission and storage of such data, protecting it from unauthorised access or breaches.

Landlords and agents must maintain records of the processing activities involving tenant data. These records should include the purpose of sharing the information, the lawful basis, and any relevant consents obtained. Being able to demonstrate compliance with GDPR is a crucial aspect of accountability.

Navigating GDPR regulations concerning tenant contact details and their sharing with tradesmen or utility companies requires a careful balance between the legitimate interests of landlords and agents and the privacy rights of tenants. Clear communication, obtaining consent, and adhering to the principles of lawful processing are essential to ensuring compliance. By implementing these practices, landlords and agents can confidently manage their responsibilities while upholding the standards set by GDPR in England.

Passive Income: A unicorn or a Horse with a horn

 The concept of passive income in the property industry has gained significant popularity in recent years, fuelled by the allure of financial independence and the dream of making money effortlessly. However, a critical examination reveals that true passive income, aside from the rare scenario of winning the lottery and living off the interest, is largely a myth.

Passive income is often defined as earnings derived from ventures in which an individual is not actively involved. Common examples include rental income, dividends, interest, and profits from businesses in which one has limited involvement. The idea is that money flows in without continuous, active effort on the part of the earner.

Most sources of so-called passive income require significant upfront effort and ongoing maintenance. Whether it's setting up a rental property, creating an online business, or investing in stocks, the initial groundwork demands time, resources, and active participation.

Any Investments, are subject to market fluctuations. Economic downturns, industry changes, or shifts in consumer behaviour can impact returns, necessitating ongoing monitoring and, at times, active decision-making.

Property in itself is a volatile industry, with trends in property strategy changing regularly as well as being forced by social impacts. Focusing on one type of property method to create so-called passive income can leave those desperate for effortless returns struggling to meet demand or left high and dry when their chosen tactic is no longer the popular choice.

All investments carry an inherent level of risk. From market risks to business-specific challenges, the idea that income can be entirely passive without exposure to these uncertainties is completely unrealistic.

Managing rental properties or running a property business involves adhering to legal and regulatory requirements. Staying compliant requires ongoing attention and can hardly be considered entirely passive. Any venture that involved the management of people will never be completely hands off regardless of how systemised you think your business model is. Customer service requires input as does the need to be compliant.

Life circumstances change. What might seem passive at one point may require active involvement later on. Businesses evolve, properties need maintenance, people require levels of expectation, and financial landscapes shift.

The Lottery Anomaly:

One exception to the rule is winning the lottery and living off the interest. However, the probability of winning the lottery is infinitesimally low, and relying on such an unlikely event for financial stability is not a practical or advisable strategy.

While the allure of passive income is enticing, it's crucial to dispel the myth that it comes without effort or ongoing involvement.

Realistic expectations, coupled with a proactive approach to wealth-building, are essential for financial success. Rather than seeking a truly "passive" income, individuals are better off focusing on diversified income streams that align with their skills, interests, and long-term goals.

Navigating Flooded Properties in England: Rights and Responsibilities for Tenants and Landlords

When a property is flooded in England, tenants and landlords both face unique challenges. Understanding the rights and responsibilities of each party is crucial for navigating this difficult situation. This article provides an overview of the key aspects, along with practical tips and advice for tenants and landlords dealing with a flooded property.

 

Tenant's Rights and Responsibilities:

1. **Notification:** Tenants must promptly inform their landlord of any flooding or water damage to the property.

2. **Safety First:** In case of severe flooding, tenants should prioritise their safety and evacuate the property if necessary. Remember to take mediations, ID and phone chargers with you.

Turn of gas and electric before you leave if you can.

3. **Documenting Damages:** Tenants should document the damages with photographs and written descriptions, providing a comprehensive record for insurance claims.

4. **Temporary Relocation:** If the property is uninhabitable, tenants can make an emergency homeless application to the local council, Fire,Flood and other disaster givens those who are technically without a livable home the right o apply for temporary accommodation from the council.

Homeless applications can be submitted in a number of ways, face-to-face, over the phone or in writing 

 

Landlord's Rights and Responsibilities:

1  **Prompt Action:** Landlords are obligated to take swift action to address the flooding, assess damages, and make necessary repairs to ensure the property is habitable.

This obligation will be guided by the flood water itself, landlords are only expect to address issues once they have been advised that it is safe to do so by emergency services

2. **Insurance:** Landlords should have adequate insurance coverage to handle damages caused by flooding. This may include both structural repairs and replacement of damaged belongings.

Some insurance policies also cover the cost of alternative accommodation for tenants, but this varies from policy to policy

3. **Communication:** Keeping tenants informed about the situation, the repair process, and the expected timeline is crucial for maintaining a transparent landlord-tenant relationship.

4. **Temporary Accommodation:** . Generally, it is not the landlord’s responsibility to find alternative accommodation for the tenant if a property is rendered uninhabitable due to fire or flood

 

Practical Tips for Tenants:

1. **Contact the Landlord Immediately:** Report the flooding to your landlord as soon as possible to initiate the resolution process.

2. **Document Everything:** Take photographs and detailed notes of the damages, as this evidence will be crucial for insurance claims.

3. **Stay Informed:** Understand your rights as a tenant, including the right to temporary accommodation if the property is unliveable

4. ** Flood  Alert** Sign up for local flood alerts which will provide an alert direct to your phone if your property is in an area at risk of flooding 

 

Practical Tips for Landlords:

1. **Prioritise Safety:** Ensure the safety of both tenants and the property during and after flooding.

2. **Quick Response:** Act promptly to assess damages and initiate repairs to prevent further deterioration of the property.

3. ** Property information** Make sure the tenant has been given information on how to turn off gas and electrify at the property 

4. **Insurance Coverage:** Confirm that your insurance policy covers damages caused by flooding, and initiate a claim as soon as possible.

 

Flooded properties pose significant challenges for both tenants and landlords. By understanding their respective rights and responsibilities, and by following practical tips, both parties can navigate the aftermath of flooding more effectively. 

Clear communication and a proactive approach are key elements in resolving issues and restoring the property to a habitable condition.