1 in 5 landlords added to portfolios in 2011

Posted on January 31, 2012 by admin

Almost one in five landlords made a new UK property investment in 2011, new figures have revealed.

According to a report by the Young Group, 19.1 per cent of landlords added additional residential property assets to their portfolios last year, driven by the expectation of both rising rents and capital values.

Investments in buy-to-let in London could be particularly fruitful, the report suggested, with 85.1 per cent of landlords in the capital expecting rents to rise over the coming year, compared to 79.5 per cent of landlords outside of London.

Furthermore, a full 100 per cent of respondents think London property values will be at current levels or higher by the end of the year, while just 30.4 per cent of those in the rest of the country think likewise.

"The London rental market is particularly strong and demand from tenants seeking quality private rented sector accommodation shows no sign of abating, buoyed by a population that is spending longer than ever living in rented homes and increasingly living in solo households," commented Neil Young, chief executive of the Young Group.

There is strong appetite for property investment among landlords across the country, however, with 16.2 per cent considering purchasing new assets over the coming 12 months, rising to 41.9 per cent in the capital.

But despite the general positive outlook for the sector, buy-to-let investors have a number of concerns that could impact business outcomes in 2012.

The study found that 42.2 per cent of landlords cite lack of mortgage availability as their biggest concern, while 24.4 per cent are principally worried by declining job security – up from ten per cent in the last quarter of 2010.

It follows a recent poll by buy-to-let lender Paragon which found that 56 per cent of landlords expect tenant demand to grow in 2012.

Homecheck UK are able to provide investor landlords a full project managment service for buy to let refurbishments. We work closley with qualified, quality contractors and suppliers to ensure your investment is optimised for the private rental market.

Government proposals could see landlords made responsible for tenants’ unpaid water bills

Posted on January 30, 2012 by admin

Ensuring accurate tenant details are passed on to water companies could soon be part of a landlord property management services.

New proposals from the Department for Environment, Food and Rural Affairs (Defra) could see landlords made liable for tenants' unpaid water bills should they fail to provide details of those occupying their properties to utilities providers.

According to Defra, unpaid bills are currently placing a sizeable burden on the water industry, with the outstanding revenue from domestic water customers in the UK raising to more than £1.6 billion last year.

It calculates that this adds an average of £15 to the bills of honest paying customers.

"I want to tackle the problem of bad debt in the water industry," said water minister Richard Benyon. "It is just not right that responsible people have to pick up the bills of those who are not paying."

The majority of water debtors are tenants in rented properties, said Defra, but, unlike for electricity and gas bills, there is currently no requirement on the owners of the building to provide information on the identity of the occupier to the water company.

As such, two possible solutions have been put forward for consultation by the government.

The first would see new regulation introduced making landlords liable for the water charges in their properties should they fail to supply details of their tenants to the water company.

Alternatively, a voluntary scheme could be set up whereby landlords are asked to share occupancy information with utilities firms.

"Mindful of the burden that regulation may impose, I want to explore whether we can take action through a voluntary approach," said Mr Benyon.

It follows recently announced government measures to enable water companies to introduce new 'social tariffs' to help provide lower bills for low income and vulnerable groups.

UK residential letting is ‘a growth industry’

Posted on January 25, 2012 by admin

Making a UK property investment could prove a lucrative move, providing you know how to choose and manage the premises correctly.

That is according to Tom Entwistle, editor and founder at online community and information portal LandlordZONE.co.uk, who sees the buy-to-let sector in the UK as continuing to see growth over the coming years.

"Residential letting is a growth industry in the UK and is likely to be so for many years to come," he said.

However, would-be landlords will need to do their research and think carefully about how to manage their buy-to-let properties if they are to profit from the lettings market.

"There is the opportunity at the moment for good income returns for those able to buy the right properties in the right locations for the right prices, providing they know how to manage them well," said the expert.

With so much to consider before buying and renting out a property, first-time landlords may benefit from the help of professional residential lettings agents and landlord support service businesses like Homecheck UK.

"Letting is a growing market and new landlords are entering the field all the time, so they need all the help they can get – letting out a property yourself is a huge learning curve," commented Mr Entwistle.

Meanwhile, he argued that the government should do more to help the lettings industry by removing the burden of new regulation.

The government should "enforce the laws that already exist instead of dreaming up more and more regulations", he argued, adding: "Good landlords (by far the majority) follow the rules."

His comments come the same time as the release of new figures from the Resolution Foundation which reveal that there has been a surge in the number of young people turning to rented accommodation rather than buying a house of their own in recent years.

The proportion of low and middle income earners aged under 35 and renting has more than tripled from 14 per cent in the late 1980s to 47 per cent now, the foundation said.

Landlords urged to check tenant references as arrears rise

Posted on January 25, 2012 by admin

Landlords should make use of the property management services offered by residential lettings agents or professional property managment company to help avoid taking on tenants that fall into arrears.

That is according to the Association of Residential Letting Agents (ARLA) which has noted a rise in tenant arrears rates in recent months.

A survey of member agents by the organisation found that, in the final quarter of 2011, over 39.2 per cent reported an increase in tenants struggling to pay their rent, up from 36.7 per cent the previous quarter.

ARLA speculated that this rise could be down to the effects of falling household income coupled with increased job uncertainty in the current economic environment.

"It could be that increasing rental arrears is a sign that the wider economic malaise is having a tangible impact on personal finance – some consumers may have reached the limit of their access to finance, while others may be cutting back as many commentators have predicted," said the association's president Tim Hyatt.

As such, it could be particularly important under the present circumstances that landlords use tenant referencing services to help them avoid taking on those who are unlikely to be able to meet rent payments, something residential lettings agents could help them with.

"In tough economic conditions both landlords and tenants can find themselves struggling to keep up with rent or mortgage payments," said Mr Hyatt.

"It is therefore more critical than ever to take references and conduct thorough research before signing a tenancy agreement. Seeking advice from a professional, licensed letting agent is the best way to ensure tenants and landlords' rights are protected."

Meanwhile, the ARLA survey also revealed that an average 34 new tenancies were signed per ARLA member office in the fourth quarter, the same figure as in the preceding three months.

To discuss your tenant referencing requirements and letting industry best practice, contact your Homecheck rental property inventory clerk now. We are also landlords, so know exactly what you need to look for in a potential tentant, and how to guide you to carry out comprehensive checks.

Inflation, fraud and bad weather ‘to lead to higher insurance premiums in 2012′

Posted on January 24, 2012 by admin

A combination of factors could mean that it is more important than ever that landlords shop around for the best buildings and contents insurance quotes.

According to John Portwood, personal lines insurance broker at Portwood & Co, property insurance premiums are almost certainly set to rise in 2012, meaning cheap landlord insurance may be harder to come by.

The expert put this rise down to a number of factors,including last winter's bad weather and rising fraud cases brought on by the recession.

"Insurers are no doubt also trying to recover from the bad winter last year," he commented.

"With the recession there are probably more fraudulent insurance applications – especially over the internet – and claims. Insurers have to factor these in."

However, part of the predicted rise in premiums is simply a matter of prices keeping pace with inflation.

"There is always some increase built into the system due to index linking – if the sums insured go up due to inflation the premium will as well," explained Mr Portwood.

However, despite predicting "a steady rise in the price of home insurance policies this year", he stressed the importance of taking out insurance to protect property.

"Homeowners should remember that their home is their largest single investment, the one where they stand to make the greatest loss if they don't insure it correctly and when they need to make a claim they won't care how much the premium was that they paid," he commented.

This could be especially so for landlords more than other types of homeowners, as they depend on the property for their income.

Meanwhile, last week saw AXA predict that 2012 could be"the year of risk", with a number of events, such as the Olympics and Euro 2012, combined with economic pressures and more bad weather increasing the threat of damage to properties and their contents.