Written By Em

Em

Em Morley

Incentives for energy efficiency changes announced

Published On: May 1, 2014 at 9:45 am

Author:

Categories: Landlord News

Tags: ,,

New energy efficiency incentives announced by the Department for Energy and Climate Change have been welcomed.

CEO of the National Landlords Association, Richard Lambert said that the incentives showed, ‘a clear commitment from the Government that it will support landlords in making energy efficiency improvements to their properties in the wake of the removal of the ECO subsidy.’[1]

Lambert continued by saying, ‘landlords are the only people who have a legal requirement to improve the energy efficiency of their properties.’ He feels that it is, ‘reassuring that the package of incentives announced provides the extra support which may be needed to fund the more expensive measures which the Green Deal alone won’t cover.’[1]

Incentives for energy efficiency changes announced

Incentives for energy efficiency changes announced

Mr Lambert then talks of the work that his company has done with the Department for Energy and Climate Change and feels that they have contributed to the new financial possibilities. He said, ‘The NLA has worked constructively with DECC, using the wealth of information and data we have from the landlords who applied for our Green Deal service and their properties, to explain how the proposals would play out in reality.  It’s clear that this has helped shape the package of incentives announced today.  We’re delighted that Government have taken our points on board, especially in recognising the need for additional support for properties which need solid wall insulation, a loan for which would almost always break the Golden Rule.’[1]

[1] http://www.landlords.org.uk/news-campaigns/news/incentives-energy-efficiency-changes-announced-landlords

 

 

 

 

BPF taking steps to ensure flood-risk homeowners are protected

Published On: April 29, 2014 at 12:17 pm

Author:

Categories: Property News

Tags:

The British Property Federation (BPF) is currently taking steps to ensure that all homeowners at risk of flooding are properly protected.

Rising insurance prices for many homeowners who are vulnerable to the risk of flooding have left them feeling the pinch. Worse still, landlords at risk have no guarantee that they will be covered under a new Government scheme, Flood Re, scheduled to come into place during 2015.

Initial plans from DEFRA and the Association of British Insurers indicate that the privately rented sector would not be eligible for cover under affordable building insurance. Flood Re would also exclude Band H homes, homes built after 2009 and a large percentage of leasehold properties.

There has been debate in the Commons over the eligibility of certain groups for Flood Re, with some ministers claiming that the aforementioned groups will still have access to affordable flood insurance. This said, there is evidence to suggest that some homeowners at risk of flooding have seen their insurance bills more than quadruple over recent periods. The BFP are urging affected homeowners to speak out, with fears that the costs will keep rising.

BPF taking steps to ensure flood-risk homeownwers are protected

BPF taking steps to ensure flood-risk homeowners are protected 

Questionnaire

As part of its campaign to make sure that Flood Re will be made available to all homeowners, BFP are urging all property owners affected by rising premiums to fill out an online questionnaire. The questionnaire can be accessed at https://www.surveymonkey.com/s/SZH6DMV.

Speaking out

 Ian Fletcher, director of policy at BFP, said that the only chance of the Government changing their initial policy plans was for people to speak out: -‘We urge everyone who has seen the cost of their flood insurance rise to complete this short survey and to circulate it to those in their community who also might be at risk. We would also urge them to alert their MP as to what is going on. Data of this kind will be vital as we continue our lobbying to ensure that all homes will be included in the scheme.’[1]

Fletcher believes that the Government’s plans are not too far gone to be altered, saying, ‘‘For government and insurers to say that there is no evidence that people will face an increase in their insurance premiums is not good enough, particularly when Flood Re has yet to be implemented.’ [1] Fletcher also stated that the plans were unfair to leaseholders: – We believe it is particularly unjust that leaseholders will be excluded. Saying to people who own their own house that they can have access to affordable insurance, but to people who own their own flat that they cannot, is simply unfair.’[1]

[1] http://www.propertywire.com/news/europe/uk-home-owners-flooding-201405029077.html

 

BTL Returns Top All Asset Classes

Published On: April 26, 2014 at 10:40 am

Author:

Categories: Landlord News

Tags: ,,

A recent survey has discovered that buy-to-let investments have performed better than all other mainstream investments over the last 18 years. During this period, landlords have enjoyed yearly returns in excess of 16%.[1]

Investigation

Economist Rob Thomas, working on behalf of The Telegraph, recently conducted an investigation to see how much a starting deposit of £1,000 invested into various asset classes in 1996 would be worth in the present day. Thomas chose the final three months of 1996 as his starting point as this was when buy-to-let mortgages were introduced.

Thomas found that every £1,000 invested into a standard buy-to-let property with a 75% loan-to-value (LTV) mortgage yielded £13,048 by the end of 2013. This gave an average annual yield of around 16%.[1]

Rent is the Next Big Asset Class

Rent is the Next Big Asset Class

He also found that a cash buyer would have seen their original £1,000 improve to £4,791 by the end of 2013, a compound yearly return of 9.7%.[1]

Commercial property

The same investigation concluded that depositing the same amount into UK commercial property in 1996 would have led to a return £3,654. Similarly, if the money was deposited into UK equities, each £1,000 would now be worth £3,082. UK government bonds would have risen to £2,924.[1]

Future

Looking to the future, the report suggested that buy-to-let yields would continue to outdo other asset classes over the next ten years. However, with interest rates widely expected to rise, industry experts are questioning if now is the correct time to invest in the buy-to-let market.

Concerns are rising that some buy-to-let investors could see their rental income fall below their mortgage costs by the year 2017, if, as estimated, interest rates rise to 3%. The concern is predominantly felt by landlords who invested late in the market, or have borrowed against existing properties in their portfolio.

[1] http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10788736/Buy-to-let-returns-top-allother-asset-classes.html

 

 

 

 

Protect your loans and finance agreements

Published On: April 25, 2014 at 3:34 pm

Author:

Categories: Finance News

Tags: ,

Searching for a loan can be a time-consuming and often confusing process. This can be made more difficult with added features such as loan protection insurance to consider.

Personal Loan Insurance

In the unfortunate event that you are rendered unable to work due to sickness, an accident or involuntary unemployment, then under personal loan insurance, your loan repayments could be met for 12 months or more. However, it is important to consider all of the options before agreeing to any loan protection cover.

It is best to take the time to ask yourself a few questions:

Is the policy must suited to your needs?

Do the terms and cost seem fair?

Are you paying for something that will be beneficial?

A good deal on your personal loan could be soured by paying over the odds for insurance or agreeing to pay for something that is unsuitable.

Protect your loans and finance agreements

Protect your loans and finance agreements

 

 

Shop around

Being a specialist in providing loans does not automatically make a your chosen provider a specialist in personal loan insurance products. The majority of lenders will not make it compulsory for you to take out their personal loan protection, so it is best to take the option to shop around to ensure you get the most suitable product for your needs.

One of the top specialists in providing loan protection insurance and protection insurance is British Insurance Limited, which comes recommended by a number of leading newspapers and magazines, including The Times, The Telegraph, The Guardian and The Financial Times. What’s more, British Insurance Limited products have topped Which? Polls and provides protection insurance to members of The British Insurance Brokers’ Association.

Visiting the British Insurance Limited website enables you to secure a no obligation personal loan insurance quotation, alongside all relevant information required for you to safely apply online for personal loan protection insurance. British Insurance Limited are recognised and regulated by the Financial Conduct Authority.

 

Landlords improve homes for more returns

Published On: April 24, 2014 at 1:50 pm

Author:

Categories: Landlord News

Tags: ,,

The property market is enjoying its best period since the recession. As a result, house prices are rising at a considerable rate across the United Kingdom. Estimates have indicated that property prices in London could rise by around a substantial seven percent per month. This in turn means buy-to-let investors are beginning to reap the rewards of their purchase.

 

Improvements

With value now being achieved on a number of rental properties, landlords are beginning to make home improvements to further extend their returns. Home and landlord insurance policies have also seen a rise, with many investors more willing to part with their cash in the steadier economic climate.

Landlords improve homes for more returns

Landlords improve homes for more returns

 

A recent survey of two-thousand homeowners from property website Zoopla suggests that 42% plan to carry out improvements in the next six-months. Zoopla spokesman Lawrence Hall said that homeowners are now more inclined to go, ‘one step further this year,’ and plan to, ‘invest in more substantial home improvements.’[1]

 

He went on to say that, ‘as properties receive more and more viewings from interested buyers, smart sellers are seeing all the signs of strong demand in the market,’ with them, ‘looking to capitalise on potential capital gains.’[1] Hall added that it seems that, ‘confidence in the property market recovery is finally filtering out of London and across the U.K.’[1]

 

Confidence

Hall suggests that there is reason for optimism for the coming months. He stated that, ‘With prospective sellers eager to take advantage of a buoyant market and buyers wanting to snap up the best properties before they slip out of reach, indications suggest the market will remain strong over the coming months as increased supply and buoyed confidence drives activity on all rungs of the ladder.’[1]

 

Halls optimism was echoed by Peter Rollings, chief estate agents Marsh & Parsons. Mr Rollings said that, ‘the volume of property sales in March was almost a third higher than same month last year,’ a sign that, ‘people are brimming with renewed confidence in the economy.’[1] Rollings adds that, ‘wages up, inflation down, and many people feeling better off than they have done in years, this is encouraging people to make their first property purchases and oiling the wheels of the market at all levels.’[1]

 

 

[1] http://www.justlandlords.co.uk/news/Homeowners-Investing-in-Home-Improvements-1801.html

 

 

 

Tips for a perfect rental garden

Published On: April 18, 2014 at 4:09 pm

Author:

Categories: Landlord News

Tags: ,,

A property with lots of outdoor space included is preferable to a number of renters looking to find their next home. In large cities, houses with a garden can be a huge draw for would-be tenants. With this in mind, it is important for landlords to ensure that their gardens are in the best condition.

Advice

Before purchasing additional features such as plants and furniture, landlords must ensure that the borders and structural composition of the garden are up to standard. Broken fences and cracked walls will not give a good first impression. Patio areas should be kept clean and grass should be cut before a viewing.

Further tips on how to get the best out of a garden space in a rental property include:

Keeping it simple

Landlords should design a garden that does not require much maintenance from either themselves or their tenant. Of course, it is highly reasonable that tenants should cut the lawn and keep furniture clean. What is not advisable or fair is to expect tenant to maintain expensive flower arrangements or water features.

Provide furniture

Regardless of the size of the outdoor space, landlords should always provide furniture for their tenants, so that they can enjoy warm summer evenings with a cold beverage or two! Larger areas should be provided with full dining equipment, which do not have to be expensive, as many are available second-hand.

Tips for a perfect rental garden

Tips for a perfect rental garden

Mow the lawn

Although this will ultimately become the responsibility of the tenant, the landlord should ensure that the tenancy begins with at least a tidy, mowed lawn. They should also make sure that the lawnmower works efficiently.

Plant low maintenance flowers

A colourful garden will look attractive to potential renters, particularly if their viewing is in the summer months. Landlords should look to provide hanging baskets or small plant pots to decorate small areas. These will not only look good but will be easy to maintain.

Hose/wash down dirty areas

Before a viewing, landlords should make sure that all grime and dirt is removed from flooring and wall areas. Using a pressure hose is a fantastic way of achieving this. If a landlord does not possess a pressure hose, they are normally available for hire from a local garden centre.