Written By Em

Em

Em Morley

Scotland Protects Tenants in Rent Arrears

Published On: August 16, 2012 at 4:43 pm

Author:

Categories: Property News

Tags: ,,

Scotland Protects Tenants in Rent Arrears

Scotland Protects Tenants in Rent Arrears

Scotland has introduced measures that will protect social housing tenants from being evicted if they fall into arrears.

The Scottish Government has amended the Housing Scotland Act 2010, making it more challenging for social landlords to evict tenants on the basis of late or non-payment of rent. The new rules will come into force this month.

Eviction will still be a choice for landlords; however, the Government wants landlords to work alongside tenants before attempting to evict them. They must enforce a realistic payment plan for tenants to aid them with clearing the arrears. They will also be required to ensure tenants receive advice on housing benefits.

The laws also support tenants who have already been given an eviction order, to agree a payment plan with their landlord.

The measures arrive due to just 12% of eviction cases taken to court by landlords in Scotland resulting in evictions.1 If tenants and their landlords can settle on an appropriate payment plan before going to court, then time and money could be saved.

Head of Policy at the Scottish Federation of Housing Associates, Andy Young, says: “Evictions are only ever used as a last resort.” He also says that his members have already worked to avoid them.1

Alan McIntosh, of insolvency service firm Carrington Dean, met the amendments with positivity, saying that it should prevent landlords “holding decrees like Swords of Damocles over the heads of tenants.” He adds that while the law may not reduce evictions, it should encourage good practise.1

1 http://www.propertytribes.com/scotland-protects-tenants-in-arrears-t-6181.html

 

 

Do Landlords Care About Gender of Tenants?

Published On: August 14, 2012 at 4:20 pm

Author:

Categories: Landlord News

Tags: ,,,

New research has found that over half of private property landlords care about the sex of their tenants.

Whether a tenant is male or female is a genuine concern for 57.4% of respondents in a survey lead by online lettings agency Upad.

Do Landlords Care About Gender of Tenants?

Do Landlords Care About Gender of Tenants?

Stereotypes of men being good at general maintenance and women being clean and tidy were at the forefront of findings. The survey also found that landlords are more in favour of couples renting, as both parties will fulfil certain jobs in the house.

Upad’s Chief Executive Officer, James Davis, said: “Like it or not, gender can sometimes be a deciding factor in whether a person makes the cut even in the rental arena. In our survey, we really wanted to see if the sex of a prospective tenant actually matters to landlords, and from our research it appears that it does.”1

One landlord told the survey that he prefers male renters. “Men make better tenants,” they say. “They can usually change light bulbs, they know how the central heating works, and they’re more likely to carry out minor repairs than women.”

They went on to explain their preference further: “Men are more easy going, they take care of the small things, generally they just want a roof over their heads.”1

Another landlord would rather have a female tenant. They said: “On average, females are tidier which means less maintenance. Females also seem to like their outside space being picturesque and generally do more in the garden such as cutting the lawn and keeping it tidy. Females are also more in control of finances than males, I find I get on time payments from female tenants and they are also more likely to stay put.”1

Davis, who is a landlord himself, explained his preference: “Both genders have their pros and cons, but ideally I prefer couples as tenants. You often find one is good at keeping things clean and tidy and the other is good at sorting out the little things. Also, couples tend to be the best long term tenants particularly if they have a child. I just tend to avoid sharers in favour of couples.”1

1 http://www.landlordexpert.co.uk/blog/2012/08/13/do-uk-landlords-care-about-the-sex-of-their-tenants/

 

 

 

Buy-to-Let Mortgages on the Rise

Published On: August 13, 2012 at 5:07 pm

Author:

Categories: Finance News

Tags: ,

Buy-to-let mortgage numbers continue to rise, as landlords look to cash in on favourable interest rates, rising property prices and uncertainty within the housing market.

Recovery

Paul Smee, Director General of the Council of Mortgage Lenders (CML), said: “Buy-to-let is continuing to show signs of recovery and growing broadly in line with expectations. The rental sector has grown strongly in the past decade or so and buy-to-let continues to help deliver a wider choice for tenants.”[1]

Buy-to-Let Mortgages on the Rise

Buy-to-Let Mortgages on the Rise

 

However, the CML was quick to point out that despite growing numbers, lending volumes remain only a third of what they were during their peak of 2007.

Rents

LSL Property Services, which owns Your Move and Reeds, conducted a survey that found the average month-on-month rent prices increased by 0.9% in June. This means average monthly rents across England and Wales are now £718 and have increased for the third consecutive month.[1]

Chief Property Economist at Capital Economics, Ed Stansfield, describes buy-to-let lending as a, “key prop” for the entire mortgage sector.

In addition, Stansfield says: “Landlords are typically less credit-constrained than first time buyers, meaning there is likely to be a steady demand from frustrated buyers for property in the private rental sector.”[1]

Mark Harris, Chief Executive of leading mortgage broker SPF Private Clients, indicated that fairly strong rental yields were attracting people in the buy-to-let sector while the housing market is stagnant. Harris said: “While capital growth on investment properties is likely to remain subdued for some time to come, income is strong and returns favourable when compared with other investments.

“Buy-to-let is only going to grow in popularity as more lenders return to the market.”[1]

Arrears

Encouragingly, CML’s figures indicate that despite growing squeezes on household budgets, buy-to-let arrears have fallen slightly. Borrowers more than three months in debt declined from 1.69% in March to 1.56% in June.[1]

The number of repossessed buy-to-let properties remained constant at 0.12%.[1]

[1] http://www.landlordexpert.co.uk/2012/08/13/buy-to-let-mortgages-on-the-increase-as-it-stays-difficult-to-buy/

 

 

 

Who Makes Better Tenants?

Published On: August 10, 2012 at 2:41 pm

Author:

Categories: Landlord News

Tags: ,,

Who Makes Better Tenants?

Who Makes Better Tenants?

Who makes better tenants, men or women? 57% of landlords think that gender changes what type of tenant they will be letting to, reveals a study.1

Online letting agency Upad conducted the research, and found that there was no clear preference among their respondents for men or women. However, their reasons for favouring either sex were correspondent to typical gender stereotypes.

The landlords that prefer female tenants said that they are generally more tidy and clean than males, resulting in their properties being left in a good condition when the tenancy ends.1

They also believe that women will take more care over outside space, and create appealing gardens that help let the property in the future.1

Maybe down to their attention towards the property, landlords who favour women say that these tenants are also more likely to continue letting the property for longer periods. They also claimed that females pay their rent on time better than males.1

For the landlords who would rather have a male tenant, they think that men are more likely to complete minor maintenance tasks themselves, without relying upon the landlord to do them.1

These respondents also found that men are typically less demanding than women, and are therefore easier to communicate with.1

It would appear, that if both groups of landlords are correct, then rationally it would be most ideal to let to a couple, who would compliment each other in being the best tenants.

1 http://www.justlandlords.co.uk/news/Landlords-Have-Gender-Preference-for-Tenants-1362.html

 

 

Public Believe Property Prices are Unfair

Published On: August 8, 2012 at 2:43 pm

Author:

Categories: Finance News

20,000 people who are searching for a new house believe that property prices in their area are too high, a study has found.1

Public Believe Property Prices are Unfair

Public Believe Property Prices are Unfair

The survey, of 40,000 people looking to buy a home, revealed that half do not think current prices are fair.1

However, house prices still exceed earnings in lots of places.1

Property prices sit at around five times the average salary, causing a great struggle for many people to break into the market.1 After the crash of 2007, mortgage lending has become stricter for those without a large deposit; pushing many first time buyers off the property ladder.

The last few years have seen house prices steady out, although some experts expect drops in the next couple of years.1 As such a large amount of people cannot join the housing market, and with home building at such low levels, the market is predicted to continue declining in order to lower the house price to income ratio.1

The private rental sector has seen a large increase in the last few years as less people are buying and cannot live in social housing. This movement is likely to continue in the next ten years, particularly in London and the South East, where house prices surpass earnings by about seven times.1

A study by Cambridge University found that if the UK economy does not improve significantly, then just a quarter of adults will have mortgages by 2025. It is currently at one third.1

The rental sector does, however, have a new market in the form of young families who would have bought in the past, now unable to buy.

1 http://www.justlandlords.co.uk/news/Public-Believe-Property-Prices-are-Unfair-1358.html

 

 

ARMA Launches Apprenticeship Scheme

Published On: August 8, 2012 at 11:38 am

Author:

Categories: Property News

Tags: ,

ARMA Launches Apprenticeship Scheme

ARMA Launches Apprenticeship Scheme

A new apprenticeship scheme in residential property management is being launched.

The Chartered Surveyors Training Trust (CSTT), Institute of Residential Property Management (IRPM) and the Association of Residential Managing Agents (ARMA) have backed the programme.

The scheme is scheduled to be piloted in Greater London, with the aim of taking it nationwide in the future.

Just a limited amount of places will be offered for the apprenticeship, which should start in September.

The pilot period is restricted to employers who are members of ARMA.