NEWSbeat


SAlE ANd rENT bACk


UK Housing Alliance crash scandal leaves 375 tenants in trouble


UK Housing Alliance (North West) Limited, also known as “ukHA”, entered administration


on 10 June 2010. The company bought property


from distressed homeowners and rented it back to them. Sellers received 70 per cent of the value of the sale, with the remaining 30 per cent to be released as a lump sum following 10 years’ leaseback, provided that they paid top market rent for the full 10 year period. Hundreds of families could be left millions of pounds out of pocket. They also risk losing the homes they sold to UK HA unless they continue to pay the top rents, with no guarantee of receiving the balance of the sale price. UK Housing Alliance entered


administration with severe outstanding debts to its secured lender, Kaupthing Singer & Friedlander, which itself collapsed in the Icelandic banking crisis. After a creditors’ meeting in


Manchester, Joy Barnett, property litigation partner Berg Legal, which is advising 150 of the 375 affected tenants, collectively owed


INVESTMENT Chinese buyers flock to London


Felicity J Lord says Chinese investors are flocking to the capital eager to buy, as the tightening of policy over Chinese domestic property investment which restricts buyers to just one property means there is a significant demand for real estate. John Saville, Regional


Director of Spicerhaart’s Land and New Homes Division, parent company of Felicity J Lord said, “Over one third of our sales in new developments this year have been to Chinese buyers, mainly from the


10 SEPTEMBER 2010 PROPERTYdrum


Chinese mainland and Hong Kong. The appreciation of the Yuan by 32 percent in the last two years means Chinese buyers can acquire foreign assets at bargain prices. Nigel Seabridge, Divisional Director of Felicity J Lord which has 10 offices across London said, “We have had to recruit additional


specialists who speak Mandarin and Cantonese to cope with the demand.


“In fact one of our sales negotiators Naomi Mingeshi who speaks both languages is currently out in China meeting a number of major Chinese investors. “Many are investing in the London property market with the expectation that the Sterling exchange rate will rise in the near


future and also that the significant business


opportunities created by the 2012 London Olympics will create asset appreciation.”


everyone, but that may not be easy as the interests of the banks and the tenants are not necessarily going to be the same. There is, therefore, serious concern that the administrators may answer to the banks before the tenants – the banks will always have the casting vote, even if all of the tenants act in unison.” Lee Dunnill, head of dispute


“The tenants will receive little, if any, of the balances owed.”


£5million, told PROPERTYdrum, “This is, quite understandably, a fraught time for tenants. But following today’s appointment of a tenants’ committee, on which Berg Legal will be playing an active role on behalf of its clients, most will feel that there is a process in place and a way in which their interests can be represented as the administration proceeds. “Our clients recognise that Baker


Tilly, the administrators, are trying to do the best they can for


resolution at Berg Legal, added, “At this point, we do not expect the tenants to lose their homes, which for now will remain secure as long as they continue to pay their rent. “However, the administrators


have made it clear they can give no assurances about the balance of the monies owing to the tenants who sold their homes. Taking account of the financial position of the company, as explained by the administrators today, it seems likely that the tenants will receive little, if any, of the balances owing to them. They will, however, be required to continue paying rent just to stay in the properties they sold, but for which they have not been paid. We will be exploring all available options to try to recover the lump sums they have been promised.”


AGENCY


MPs are most distrusted!


Politicians and bankers are the now most distrusted professionals in the UK,


according to a new survey. Beating estate agents into fifth place, the smooth-talking MP came out top in a Co-op survey with 57 per cent of the vote. Close behind was the bullish banker on 47 per cent. Other professions/trades in the top ten included car salesmen, estate agents, electricians, plumbers, builders, car mechanics, and footballers. At the other end of the scale, the most trusted professionals were doctors, teachers, police, firefighters and paramedics. Politicians may blame the


Daily Telegraph for exposing their dodgy expenses claims and bankers have become virtual devils to most of us, as we are squeezed while they enjoy their latest wheeze. Bizarrely (we only report on bad stuff, not profit from it, Ed.), journalists came third in the rankings while car salesmen were fourth and estate agents slumped to fifth – perhaps because so few people in the UK have been near an estate agent in the last year or so. More than half said they


are less trusting than they were a year ago. 42 per cent of said ‘society has become more selfish’; 24 per cent blamed the recession and X40 per cent claimed consistently poor service levels were a major factor. John Hughes of the Co-op,


says that he worries that a general lack of trust is starting to undermine key services in Britain. He says, “It’s vital that representatives working in each of these professions work hard to earn back their clients’ trust.” The top 10 in full, 1.


Politicians 2. Bankers 3. Journalists 4. Car Salesmen 5. Estate Agents 6. Electricians 7. Plumbers 8. Builders 9. Car Mechanics 10. Footballers.


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