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Em Morley

Landlords Prepare for Commonwealth Games

Published On: January 17, 2014 at 4:39 pm

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Landlords Prepare for Commonwealth Games

Landlords Prepare for Commonwealth Games

It is almost just six months until the 2014 Commonwealth Games in Glasgow, and Lindsays, Scottish property law specialists, are offering advice to any amateur landlords who have decided to make some money from the event.

They state that the majority of the one million tickets available have been sold, and with homeowners letting out their properties during the Games, these amateur landlords should learn more about legal, tax and safety obligations.

The company says that they are careful to check the condition of homes being let out, and that property-owners should prepare an inventory to clearly indicate what is included in the house and the state of repair.

They also say that as properties are only rented as holiday accommodation, an individual is not obliged to observe long-term rented accommodation regulations in Scotland.

Specifically, Lindsays says:

You do NOT need to:

  • Apply to your local authority to register as a landlord.
  • License the property as a house in multiple occupation (HMO).

You MUST:

  • Comply with regulations regarding gas safety certificates, fire and safety regulations.
  • Pay income tax on earnings, according to the HM Revenue and Customs (HMRC) policies.
  • Guarantee that appropriate insurances are in place.
  • If required, request consent from your mortgage lender.

Serious rent arrears in rental market

Published On: January 16, 2014 at 10:29 am

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Statistics released by leading residential service provider, LSL property services in late 2013 highlighted a rise in tenants in serious rent arrears. According to the figures, in excess of 67,000[1] privately rented homes in Britain were in debt of over two month’s rent.

Serious rent arrears in rental market

Serious rent arrears in rental market

LSL’s final rental market quarterly review of 2013 indicated a rise of around 2,000 households in rent arrears from the previous report. Despite the rise, the figures were encouragingly 26% percent down in comparison to the same stage in 2012.[1]

Encouragement

Further encouragement was seen with the number of Buy To Let mortgages over three months in arrears down for the fourth successive quarter. The figures showed that this made the total the lowest since 2008, falling by an impressive 20% [1] over the course of 2013.

Risk factor

The commercial director of LSL, David Brown, suggested that the report findings could lead to a troubled 2014 in the letting industry. Brown proposed that the number of tenants in serious rent arrears represented, ‘the biggest risk for the private rented sector’[1]in 2014.

Mr Brown also suggested signs of an economic upturn were, ‘confined to the newspaper,’ going on to say that tenants in arrears were of, ‘serious concern’ to most landlords.[1]

However, Paul Jardine of Templeton LA suggested a brighter future could be on the horizon. Jardine commented that rental arrears were in, ‘a much better state than six months ago.’ This in turn, Jardine suggested, could lead to, ‘fewer people facing eviction in months to come.’[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Serious-rent-arrears-biggest-risk-to-lettings-market

 

Landlords Should Focus on Reliable Tenants

Published On: January 15, 2014 at 4:28 pm

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Landlords Should Focus on Reliable Tenants

Landlords Should Focus on Reliable Tenants

The current thriving sales market indicates that landlords should move their focus away from high-paying renters, to reliable long-term tenants, despite the possibility of them paying less.

Rental consultancy Landlord Assist, who operate tenant eviction and rent recovery services, says to expect a turnaround in rental sector trends.

The consultancy says that when sales of flats and houses were stagnant, landlords were able to set rents at record highs due to the demand for rented accommodation surpassing supply.

However, with more tenants are now looking to purchase their own homes, aided by Government schemes such as Help to Buy, landlords need to shift their focus.

Graham Kinnear, Landlord Assist’s Managing Director, says: “This could lead to a greater choice of properties to rent in parts of the country and more competition between landlords for the best tenants. It’s tempting for landlords to set rent levels high but instead it’s better to focus on attracting the right type of tenant at the right price.”1

The consultancy claims that the alternative for over-optimistic landlords is a year of void periods, and a risk of arrears because rents are too high for tenants.

1 http://old.lettingagenttoday.co.uk/news_features/Landlords-Should-Favour-Reliable-Tenants-Over-High-Rents

Leading Agent Admits London Rent Drop

Published On: January 14, 2014 at 10:17 am

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Leading Agent Admits London Rent Drop

Leading Agent Admits London Rent Drop

A leading London letting agent believes that seasonal trends in the rental market can lead to more void periods and agents should be doing more to combat this problem. W A Ellis has admitted to dropping rents by 20% in December in a bid to attract more tenants during the notoriously difficult period and believe more agents should follow suit.

Head of lettings at W A Ellis, Lucy Morton, suggested that: “Voids did creep up but figures are distorted as the market has become more seasonal.”

She suggests: “For the last two years in particular, the key months have been between April and October, when a property can let within a week, whereas voids can be substantially increased if a property becomes available between November and March.”[1]

According to Morton, 2013 saw an incredible 50% increase in middle-London tenancy agreements, with rents also rising by around 2.8%. W H Ellis’ average tenancy agreement lasts for approximately three years.

Morton predicts that a similar pattern could be followed in 2014, if the UK continues to recover from the financial crisis. She said: “Indications are that the City will be hiring thus creating more tenants. I predict prime central London rents will increase by marginally over 3% in 2014.”[1]

[1] ://old.lettingagenttoday.co.uk/news_features/Leading-Agent-Admits-London-Rent-Drop

 

 

 

Increase in Foreign Landlord Investors

Published On: January 10, 2014 at 3:54 pm

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An increasing number of overseas landlords are now investing in the UK rental property market.

Foreign landlord numbers now exceed two million, according to chartered accountants UHY Hacker Young.

Increase in Foreign Landlord Investors

Increase in Foreign Landlord Investors

The number of overseas landlords renting out property in the UK has increased so much that there has been a 6% rise in the last 12 months, from 1.93 million in the previous 12 months to 2.04 million. In the past five years, the number of foreign landlords has increased by 39%, up from 1.46 million in 2006-07.

Despite this, UHY Hacker Young have said that their analysis has uncovered that this steady growth might end after the Government recently announced their plans to charge Capital Gains Tax on the sale of properties owned by foreign investors.

This means that the gain made from selling their properties will be taxed on foreign investors, from April 2015.

Head of Private Client Services, Mark Giddens, said: “The UK economy is one of the world’s most liquid, and UK property is seen globally as a safe haven from the effects of a financial crash or from national government’s interference in the assets of private individuals. That has driven fierce demand for prime property in London and the South East in particular.

“But foreign investment in UK property is not just about the purchase of trophy homes. Increasingly, overseas investors are targeting buy-to-let properties, and in particular their investment in new build properties is funding a much needed boost to the supply of quality homes in the rental market.”1

1 http://old.lettingagenttoday.co.uk/news_features/Sharp-rise-in-foreign-landlord-investors

Rent arrears crisis for thousands of tenants

Published On: January 9, 2014 at 12:10 pm

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A recent YouGov survey suggests that thousands of tenants are extremely worried about dropping into rent arrears in the very near future.

Breaking point

The YouGov findings, on behalf of charity organisation Shelter were collated from a poll of more than 4,000 UK residents, with the results making for concerning reading.

Indications from the findings show that a large number of tenants are concerned about the future of their tenancy payments, with budgets across the UK stretched to the limit.

The survey suggests that families are in line to be most affected, with 70% of rent payers with children to support presently behind or struggling to keep up with their payments.[1]

Rent arrears crisis for thousands of tenants

Rent arrears crisis for thousands of tenants

Worried

Shelter has promoted its concerns that more people are putting off paying their bills until their deadline has passed, putting their homes at risk. Findings from the survey indicate that one in five people are that concerned about their finances that they have not opened post if they believe it is a bill or notice about late payment.

Chief Executive of Shelter, Campbell Robb, said that he was worried about the results of the research. Mr Robb said, “It’s a worrying sign of the times that so many are starting the New Year worried about how they’ll pay their rent or mortgage in 2014. Unless they get help, some of the families struggling now could face the very real prospect of losing their home this year.”[1]

[1] http://old.lettingagenttoday.co.uk/news_features/Rent-arrears-crisis-looms-for-thousands-of-tenants