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Stories included
- HIPs cause ‘wild fluctuations’ in house prices
- Son overturns will that gave £8.2m to the Tories
- Separated couples urged to avoid Christmas disputes over children
- Council prosecuted over minimum wage infringements
- Buy to let investors plan to increase their portfolios
- Compensation for disabled woman after storm in a tea shop
- New system planned for resolving housing disputes
HIPs cause “wild fluctuations” in house prices
The introduction of Home Information Packs (HIPs) has led to “wild fluctuations” in the housing market, according to a survey by the property firm Rightmove.
The survey reveals that average house prices in England and Wales rose by 2.7% in the month up 6th October. That was a complete reversal of the 2.6% fall in prices the month before. HIPs became compulsory on sales of four-bedroom houses in August and then for three-bedroom houses on 10th September.
Rightmove says that in the week before 10th September there was a 65% increase in the number of three bedroom properties coming on to the market as sellers tried to beat the deadline for requiring a Home Information Pack.
At around the same time, sellers of four bedroom houses were coming back into the market after waiting a few weeks to see how HIPs would work out. The combined effect was that a surge of three and four bedroom houses, which tend to be of higher value, came on to the market at the same time boosting the overall average price.
A Government spokesman said it wasn’t surprising that prices had fluctuated over a short period because some sellers were tempted to beat the deadlines for acquiring HIPs. However, he said, prices were already beginning to level out as the property market stabilised.
HIPs are already compulsory for anyone selling a three or four-bedroom house and will soon be required on all homes.
The packs must contain an index of contents, an Energy Performance Certificate, a sale statement, standard searches by local authorities or evidence that a search has been requested, evidence of title and information on leasehold or commonhold sales.
Please contact us if you would like more information about HIPs or any aspect of buying or selling a home.
Son overturns will that gave £8.2m to the Tories
A businessman who left £8.2m to the Conservative Party has had his will overturned in the High Court following a successful challenge by his son.
The court was told that Branislav Kostic, a Serbian born businessman who settled in England in the 1960s, drew up a will in 1974 making his son Zoran the sole beneficiary.
However, he then began to develop a mental illness and suffered from delusions. He believed that there was an international conspiracy of “dark forces” which included close members of his family.
In the 1980s he wrote to Prime Minister Margaret Thatcher saying she was the only person who could protect the free world from bestial monsters. He later cut his son Zoran out of his will and left his money to the Conservatives.
When Mr Kostic died in 2005, Zoran challenged the will saying his father was suffering from a mental illness and that he would never have behaved in the way he did if he had been of sane mind.
The court ruled that the original will of 1974 should be validated so that Zoran was reinstated as the sole beneficiary.
This is an extreme case both in terms of the huge sums involved and the extent of Mr Kostic’s mental illness. However, it illustrates that it is possible to successfully challenge a will if it seems to be unfair or out of character with the known wishes of the deceased person.
Sometimes a will is challenged because someone suspects that the deceased person was subjected to undue influence by their spouse, or perhaps a relative or carer. There may be occasions when there is even a suspicion that a will has been forged.
Second relationships started later in life often lead to a will being challenged when one of the partners dies. For example, a second wife may challenge a will if she feels her husband has not provided for her properly. From the other point of view, a person’s grown up children will often make a challenge if they suspect that their deceased father has left too much to his second wife.
It is important that everyone should make a will and ensure that it is properly drawn up by a solicitor. However, people should also remember that it is possible to take legal action if they feel that something untoward has taken place in the making of the will.
Separated couples urged to avoid Christmas disputes over children
Christmas and other holiday periods should be among the happiest times of a child’s life but sadly they are often marred by divorced and separated parents arguing over access rights.
Tensions between couples often come to the fore at this time of year but it’s the children who are likely to suffer the most as they find themselves at the centre of a tug-of-war between mum and dad.
The most common dispute is over where the children will spend Christmas Day.
Fathers who don’t see their children very often throughout the year want to make up for it at Christmas when they’re off work, but mothers can resent handing the children over at such a special time.
We often get calls from parents just a few days before Christmas asking for an urgent court application because their partner is refusing to co-operate. These kind of hasty, last-minute actions can create tremendous stress.
Court action should only be a last resort. The best approach is to reach an amicable agreement, preferably weeks if not months in advance. That reduces stress and if it is necessary to seek legal advice or mediation then it can be done in plenty of time so there’s no sense of panic which can often filter through to the children.
Many parents agree to take turns in having the children over the Christmas period. Others have them for a few days each. It doesn’t matter how you divide the time up as long as it is fair and done in the child’s best interest.
It’s best to keep arrangements as simple as possible and avoid handovers on Christmas Day itself when children are likely to be excited and pre-occupied with their presents. Parents should ask themselves if they want their children to remember Christmas as something magical or as a time of bitter conflict between mum and dad.
We are happy to advise parents about access rights to children, and we can act as mediators when couples find it difficult to reach an agreement.
Council prosecuted over minimum wage infringements
A local authority has faced criminal prosecution for an offence under the National Minimum Wage Act.
Torbay Council was found guilty at Torquay Magistrates’ Court of neglecting to produce appropriate records to compliance officers from HM Revenue & Customs. It was fined £1000 and ordered to pay £500 costs.
The compliance officers had been trying to find out whether workers in the council’s Parks and Leisure department had been receiving the national minimum wage. The council was prosecuted by the Revenue & Customs Prosecutions Office (RCPO) for “neglecting to supply information” required under the Act.
Andy Millican, Criminal Investigation Team Leader for HM Revenue & Customs, said: "This sentencing sends a clear message to employers, large or small, that HMRC and RCPO will actively pursue those we suspect of flouting National Minimum Wage law. If employers prevent us from checking staff records and refuse to comply with the law they could receive a fine and a criminal record.
"We have a duty to ensure workers receive their salary entitlement. The majority of employers do assist us with our investigations, but if they don't we will pursue cases through the criminal courts."
The National Minimum Wage Act lists six potential criminal offences. These are when an employer willfully neglects to pay the national minimum wage, fails to keep or preserve records, allows false entries to be made in records, produces false records or information, obstructs compliance officers or refuses to answer questions or produce documents for compliance officers when requested.
Each offence carries a maximum fine of £5000.
On 1st October this year, the minimum rate for workers aged 22 and over was raised to £5.52 an hour. The development rate for 18-21 year olds was raised to £4.60 and hour.
The rate for 16-17 year olds was raised to £3.40 an hour.
The case against Torbay shows the increasing willingness of Revenue & Customs to take action against infringements of the Act.
Businesses need to ensure that compliance procedures are in place. Please contact us if you would like more details.
Buy to let investors plan to increase their portfolios
Just over half of all buy to let investors plan to increase their portfolios over the coming year, according to a survey by the Association of Residential Letting Agents (ARLA).
Nine out of ten say they won’t sell their properties even if prices start to fall.
That could change, however, if there is a change in the tax regime so that mortgage interest is no longer allowed as a taxable expense. In that case, 10% said they would pull out of the private rented sector altogether while 28% said they would sell some property. A further 42% were unsure what they would do.
The quarterly Review and Index is based on replies from more than 600 landlords and letting agents.
ARLA says the Review shows that most landlords invest for the long term.
“The average life expectancy of their property investments is 16.5 years, with nearly a quarter expecting to hold their investments for more than 20 years.
“Over half of all landlords are investing for long term capital gain, while the number looking for a combined yield from capital appreciation and rental income dropped from 45% to 40%. Very few, only 2.5%, look to make short term capital gains.”
Compensation for disabled woman after storm in a tea shop
A disabled woman has been awarded £4,500 compensation after being subjected to “insensitive and aggressive” behaviour when she visited a tea shop.
Jazz Shaban has brittle bones and uses a wheelchair. Last year she visited Wharfe’s Restaurant and Tea Rooms in Shaftesbury in Dorset with some friends. Yeovil County Court was told that when she tried to reach the downstairs seating area which was down two steps, the restaurant owner, Mrs Rosemary Wharfe, shouted that they could not accommodate her.
Ms Shaban and her friends left straightaway but Mrs Wharfe continued to shout at them.
District Judge Brian Smith said the case was “the clearest possible case of discrimination”.
Ms Shaban’s case was backed by the Disability Rights Commission which was absorbed into the new Equality and Human Rights Commission in October.
Sir Bert Massie, chairman of the DRC at the time of case in September, said: “This is a very significant result and should send out a strong message that such discriminatory and aggressive behaviour is unlawful and will not be tolerated. Disabled people have the right to be treated fairly whatever the circumstances.
” Small businesses are not exempt from the law and disabled people have every right to be treated with dignity and respect.”
New system planned for resolving housing disputes
The Law Commission has just completed a consultation process as part of its investigation into whether a specialist tribunal should be established to resolve housing disputes.
The aim is to make dispute resolution “simple, effective fair and proportionate”.
The provisional proposal is that a tribunal should be set up within the structures of the Tribunals, Courts and Enforcement Bill. The new body would incorporate the existing Residential Property Tribunal Service (RPTS) tribunals and would also have jurisdiction over rented housing possession and disrepair claims.
The role of tribunals was one of the issues raised in the paper, Housing: Proportionate Dispute Resolution, published in April 2006. That paper set out proposals for a new system of resolving housing disputes.
One of the ideas was to use a “triage plus” process to diagnose problems and refer them to the appropriate resolution methods. The paper also promoted the use of resolution methods such as mediation, the ombudsman and, when necessary, the use of courts and tribunals.
The paper also called for more communication between the bodies involved in the different parts of the system so they could learn from each other.
The consultation period ended on 28th September and the Commission plans to publish its final report early next year. We shall keep clients informed of developments.
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