Written By Em

Em Morley

Ensure your Property is Protected this Winter

Published On: January 13, 2012 at 9:13 am

The National Landlords Association (NLA) has compiled guidelines for landlords on how to protect their rental properties from the cold weather.

Ensure your Property is Protected this Winter

Last year saw an increase in claims due to frozen pipes bursting in the winter. NLA Property Insurance experiences a 48% rise in claims during December 2010 and January 2011, for damage caused by weather-related flooding.

These steps should reduce the risk of flooding:

All pipes should be sufficiently insulated.
Overflow pipes should be correctly connected and unblocked.
The heating should be left on a low setting if the property is to be vacated during the winter.
Tenants should be given an emergency contact number for their landlord.
Repairs to any damage should be carried out as quickly as possible.

Broking Manager of NLA Property Insurance, Steve Barnes, says: “Landlords should ensure their properties are properly protected during winter. Last year’s extreme cold resulted in a spate of claims due to frozen pipes bursting.

“It is vital landlords have the correct and up-to-date insurance in case the unthinkable happens.”¹

David Salusbury, Chairman of the NLA, adds: “Flooding can cause many thousands of pounds in damage to a property and make it uninhabitable for the tenant.

“Landlords should protect their property and their investment by ensuring that they have a policy that covers them for such damage.”1

¹http://www.landlords.org.uk/news-campaigns/news/landlords-urged-protect-properties-during-cold-weather

Confidence in the Market has Fallen

Published On: January 12, 2012 at 4:25 pm

Author: Em Morley

Categories: Finance News

Tags: falling property market,Q4 report

Confidence in the Market has Fallen

Zoopla’s latest housing market survey has revealed that confidence in the market has fallen to its lowest level in a year in Quarter 4 (Q4) 2011.

The study uncovered that 55% of homeowners are now expecting to see an increase in house prices in their local arrears over the next six months, compared to 59% in Q3.

It also found that assurance in the London housing market is higher, with 72% of London homeowners anticipating prices rising over the next six months, compared to 68% in the previous quarter.

It is expected that the first half of 2012 will see house prices in London increase by 4.7%. This is compared to a predicted rise of 3.6% in Q3 2011.

Moreover, just under half of respondents (48%) said the predominant sign that there are improvements in the property market would come from developments in mortgage availability. However, 11% claimed that it is currently easier to get a mortgage than it was three months ago.

Nicholas Leeming, of Zoopla, says: “There is a lot of general economic uncertainty at the moment, which is taking its toll on homeowner confidence. Until there is some good news on the overall economy, homeowners will continue to be cautious with their optimism for the property market.

“Londoners, however, are living in a market detached from the rest of the UK. Many overseas buyers continue to pile into London property to take shelter from economic or political storm clouds elsewhere, which is helping to boost prices and confidence in the capital.”¹

¹http://www.justlandlords.co.uk/news/Q4-Confidence-Drop-1068.html

I Am The Agent Launches Rent My Spare Room

Published On: January 11, 2012 at 4:32 pm

Author: Em Morley

Categories: Property News

Tags: I Am The Agent,Rent My Spare Room

Self-service agent I Am The Agent has recently launched a new service called Rent My Spare Room. It says that rooms will be advertised on all major property portals, including Zoopla, Rightmove and FindaProperty.

I Am The Agent Launches Rent My Spare Room

I Am The Agent is offering this service for just £49, after the room share business has been expanding. More self-service agents are also challenging traditional high street agents.

Rebecca Peach, I Am The Agent’s Managing Director, says: “Often, renting a room is just as stressful as letting an apartment or house. You need to market it right in order to attract an ideal tenant. We filter all inquiries and introduce prospective tenants, and can provide tenancy agreements and credit checks if needed, making the whole process stress-free.

“With the current economic climate, we expect Rent My Spare Room to be one of our most popular services in the next 12 months, as homeowners look for easy ways to make extra money.”¹

I Am The Agent describes itself as an online estate agency with a no-commission fee structure, instead charging transparent fixed fees for its services.

They charge self-service sellers £299, including VAT, and a fixed fee of £69 for their letting service.

Their website states: “We know that the process of renting a private property doesn’t stop when you have found a tenant you like.”²

It displays the Property Ombudsman logos for both sales and lettings, where Rightmove, Zoopla and FindaProperty are described as partner agents.

¹http://www.landlordtoday.co.uk/news_features/Self-service-agent-launches-roomshare-service-on-the-big-portals

²http://www.iamtheagent.com

Homeowners Turning to the Private Rental Sector

Published On: January 10, 2012 at 4:26 pm

Author: Em Morley

Categories: Property News

Tags: private rented sector

There has been a rise of 7% in the number of Association of Residential Letting Agents (ARLA) members reporting unplanned lettings during the third quarter of 2011. This increase is due to homeowners turning to the private rented sector, as they are unable to sell their property, or hope for a higher price in the future. The figure is now at 47%, from 40% at the start of the year.

Homeowners Turning to the Private Rental Sector

ARLA also stated that the trend is particularly noticeable in the North East and North West, 67% and 62% respectively. A higher proportion of respondents indicated that the rise in these areas is due to rental properties coming into the market because they cannot be sold.

Within Scotland, Wales and Northern Ireland, more than 60% of member agents found an increase. The figure was lowest, at 17%, in Central London.

Ian Potter, ARLA’s Operations Manager, explains: “The rise in this figure suggests that homeowners struggling to sell their homes due to the sluggish market are increasingly looking to the private rented sector to utilise their property in the short term.

“It’s likely that many of these reluctant landlords will be attracted by the flexibility of a short-term let. Renting a home on a shorter basis can be a good option for anyone who has found a buyer for their home, but not found the right property to buy themselves. Equally, for anyone testing a new area before committing to move there, or working away from home for short periods, renting can offer more stability and home comforts than a hotel.”

This means that some homeowners will be turning landlord for the first time, many unwillingly, according to ARLA.

ARLA President, Tim Hyatt, states the benefits: “Letting a property is an excellent way of generating consistent income from your property, if the correct approach is adopted by prospective landlords.

“However, lettings is an unregulated industry and there can be pitfalls for both landlord and tenant, including loss of monies. While we are, of course, happy to see an increase in the number of landlords, it is vital that every landlord, reluctant or keen, seeks expert advice before embarking on a rental agreement.

In particular, we would advise anyone considering renting or letting a property, to consult a licensed ARLA member. Licensed agents have to adhere to a strict code of conduct, and must have a number of consumer protection mechanisms in place, meaning that if things do go wrong, there is a way to see redress.”²

The most likely types of house to be brought to the rental market by these landlords are detached and semi-detached homes, with studio flats being the least likely, according to ARLA agents.

¹http://www.arla.co.uk/news/april-2012/homeowners-renting-out-properties-when-they-cannot-be-sold.aspx

²http://www.landlordexpert.co.uk/blog/2012/01/09/uk-homeowners-having-to-rent-out-their-homes-and-becoming-landords-is-on-the-rise/

Property Market Boosts from Student Accommodation

Published On: January 7, 2012 at 4:36 pm

Author: Em Morley

Categories: Property News

Tags: student accommodation

A world leading real estate advisor has reported that £863m was invested into student accommodation in 2011.

Property Market Boosts from Student Accommodation

The figure, released by CBRE, signifies an increase in the market, from £770m invested in 2010. This was up by a huge 220% invested in student property from 2009.

The high demand for student accommodation between property investors has been pushed by a low supply and high rental returns compared to standard UK property.

Jennet Siebrits, Head of Residential Research at CBRE, says: “Student accommodation is more attractive than many other asset classes in the current climate, and we have seen increasing interest from relatively new parties seeking to diversify their portfolios.”¹

New financiers to the market include a rising number of overseas investors who view the UK as a safe and stable market place, where student accommodation can be bought for as little as £50,000, with possible net rental yields between 7-9%.

The study also presented that student accommodation brings high occupancy rates, with the current UK figure at 99%. This highlights a strong demand for student housing, and has caused annual student rents to increase by 4% across the country, and 5% in London.

Valued industry expert, Knight Frank, have also reported the changes in the student accommodation market. The growing numbers of overseas students, mature students, and wealthy students, have been acknowledged as the need for higher quality housing, creating a stronger tier in the market over the next few years.

¹http://www.landlordexpert.co.uk/blog/2012/01/06/uk-property-market-gets-a-boost-from-student-accommodation/

Rent a Room Scheme

Published On: January 7, 2012 at 3:57 pm

Author: Em Morley

Categories: Property News

Tags: rent a room scheme

The Government’s new Rent a Room Scheme is set to make renting out individual rooms within homes an increasingly popular practise. The system is designed to encourage people to take in lodgers.

The scheme lets people earn up to a threshold of £4,250 per year tax-free, from letting accommodation in their houses. This figure is halved if the income will be shared with a partner, or someone else

Rent a Room Scheme

A room or entire floor of a property can be let out, however the scheme cannot be used for homes converted into separate flats. Rooms let as an office or for other business purposes also don’t apply. Areas must also be furnished to qualify.

The tax exemption on earnings is automatic if occupants earn less than the threshold. The scheme can be opted into at any time if you’re either a resident landlord – you do not need to own your home – or if you run a bed and breakfast or guesthouse.

If your gross income is above the Rent a Room limit, you can either pay tax on your profits in the normal way for rental businesses, or pay tax on your gross income less than the £4,250 limit.

Director of SpareRoom, Matt Hutchinson thinks that this threshold is “unrealistically low”, however. “Particularly for cities where rents are rising fast,” he says. “78% of rooms generate annual rent of more than £4,250.”¹

Mortgage lenders or landlords must be informed if you begin renting a room, as you could potentially be breaching the terms of your mortgage, lease or insurance.

Hutchinson has explained that renting out rooms may be hard work, but could help individuals take in higher yields.

He also expects that an increasing number of people will take advantage of the scheme because they cannot afford the costs of living alone. It was reported recently that millions are using payday loans, or other forms of credit, to help them with rent or mortgage payments.

Mr. Hutchinson explained who could be looking to take the rooms: “A lot more people are looking to rent rooms because they are only getting enough benefits to cover a room rather than a one-bed flat.” ¹

¹http://www.thisismoney.co.uk/money/mortgageshome/article-2294781/Higher-Rent-Room-tax-breaks-ease-accommodation-shortage.html

²http://www.justlandlords.co.uk/news/Renting-Rooms-to-Be-Popular-This-Year-1062.html