Written By Em

Em Morley

Newcastle Student Landlords Warned about Potential Scam

Published On: August 11, 2017 at 9:28 am

Tags: Newcastle,scam,student landlords,student tenants

Scam artists are targeting Newcastle student landlords who are letting private properties to tenants planning to study at the University of Newcastle this September, the institution has warned.

Newcastle Student Landlords Warned about Potential Scam

Despite offering private rental properties through proper channels, many Newcastle student landlords could still fall foul to cheats, some of which are believed to already be operating in the city.

Earlier this week, registered providers of student properties received an email from the University of Newcastle, warning about two people “that have unfortunately made their way into [the] database”.

The university said that emails under the names Paul and Janet Castillo are being sent to Newcastle student landlords, scripted as a father and daughter seeking a room.

Janet Castillo’s email comes first, the university told landlords, expressing interest in a room and seeking details for her parent to get in touch.

The individual posing as Paul Castillo then follows up, saying a US-based financier will take care of his daughter’s “payment and some other expenses”.

The email continues: “I will instruct him to send a Pay Cheque for Two weeks rent before her arrival so as to secure the room.

“I will send you her flight details immediately she’s through with her assignments in Philippine.”

To accommodate the alleged payment, the Newcastle Herald reports that he requests a name, address, city, postcode, email address, phone number and rent amount.

“I’m very proud of her and i can assure you that you will have nothing to lose by holding your accommodation for her,” the emails in Paul Castillo’s name state.

The university is warning Newcastle student landlords to remain vigilant.

It informed landlords in the area: “We cannot seem to locate either name in our system and they may have a number of different alias’ they use.”

We remind all landlords to remain vigilant when letting any type of rental property privately.

Mortgage Arrears and Possessions Drop Again in Q2

Published On: August 11, 2017 at 9:03 am

Author: Em Morley

Categories: Finance News

Tags: arrears,mortgages,possessions

The number of mortgage arrears and home possessions in the UK dropped yet again in the second quarter (Q2) of this year, according to the latest Council of Mortgage Lenders (CML)/UK Finance data.

Mortgage Arrears and Possessions Drop Again in Q2

The amount of mortgages in arrears of 2.5% or more of the outstanding balance fell to 88,200 in Q2 – the lowest level since at least 1994, when this run of data began. This is 5% lower than in Q1 (92,600) and amounted to just 0.8% of the 11m+ mortgages currently outstanding in the UK.

Q2 also saw a decline in the number of mortgages across all arrears bands, including those with the highest levels of arrears. In the same period, the amount of mortgages with arrears of 10% or more of the outstanding balance totalled 25,200 – down by 5% from 26,500 in Q1. This brought a welcome end to a period of five consecutive quarters in which this figure had edged upwards, from 23,400 in Q1 2016.

The number of homes taken into possession also decreased in Q2, from 1,900 to 1,800 (accounting for 0.02% of all mortgages). This total was the same as in Q4 last year and is the lowest figure since quarterly data was first published in 2008.

In line with a trend that has become established in recent data, the rate of buy-to-let arrears was lower than arrears in the owner-occupier sector, although the buy-to-let possession rate was higher. This is because lenders extend a high level of forbearance to owner-occupiers, to help them overcome any period of financial difficulty and stay in their homes when possible.

The Head of Mortgages at UK Finance, Paul Smee, comments on these latest figures: “These figures show that the overwhelming majority of borrowers are managing their mortgage payments successfully, and many of those who have experienced some difficulty in the past are able to recover their financial position. The recent improvement in the number of mortgages with high levels of arrears is particularly welcome.

“Borrowers are being helped by low interest rates, but mortgage costs are certain to rise at some stage. It is important therefore for customers to plan ahead and consider how their finances would be affected in those circumstances. As ever, lenders will continue to help borrowers resolve any financial difficulty if possible, so customers should not hesitate to contact their lender if they anticipate any payment problems.”

Remember that the Bank of England recently held interest rates at 0.25%, but they are expected to go up over the next few years, albeit gradually.

New survey suggests landlords remain confident in the sector

Published On: August 11, 2017 at 8:51 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,landlords confidence,tenants

The Government’s implementation of a number of regulation changes aimed at curbing the rise of private landlords has left many concerned that buy-to-let investment could fizzle out.

As a result of the changes, the number of people investing in the sector has slipped over recent months, with experts forecasting that more landlords will exist the market in the near future.

Confidence

Despite the tax assault on the private rental sector, the fact remains that bricks and mortar provide a safe long-term investment for savvy landlords.

A new survey of 500 buy-to-let landlords from Knight Knox reveals that 59% are still confident in renting out buy-to-let property. Surprisingly, only 11% said they had lost confidence in buy-to-let, while 30% are unsure.

In addition, half of respondents to the survey said that they intend on adding to their portfolio in the next five years.

New survey suggests landlords remain confident in the sector

Andy Phillips, Commercial Director at Knight Knox, noted: ‘The results of our survey would suggest that, despite ostensibly damaging changes to the market over the last few years, landlords remain positive about the returns this asset class can generate. Bricks and mortar is likely to remain one of the most stable investment options and has so far weathered the changes brought in by new legislation.’

‘Close to six million properties in the UK are now in the private rented sector, with this expected to rise to 7.2 million by 2025, which is the equivalent of a quarter of all homes. With this sort of opportunity, and with property prices continuing to rise, investors could potentially benefit from both regular rental income over the years and capital appreciation when the time comes to sell.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/landlords-remain-positive-about-buy-to-let-market

Estate Agent Launches Interior Styling Service for Airbnbs

Published On: August 11, 2017 at 8:13 am

Author: Em Morley

Categories: Property News

Tags: Airbnb,home staging,property marketing,short-term lets

A London estate agent has launched an interior styling service for landlords and property owners using Airbnb to let their homes.

Portico Host has introduced the Airbnb interior styling service alongside its traditional Airbnb management option.

The company says that the service is ideal for those with empty properties – either landlords with void periods, or those trying to sell their homes – which will enable “vendors to earn money until their property sells and landlords to cash in until they find the perfect tenant”.

The service is part of Portico’s premium Airbnb management package, which costs 20% + VAT.

The agent employs top interior stylists to kit out clients’ properties with furniture and soft furnishings, maximising their appeal to potential Airbnb tenants. The stylists work within the client’s budget and taste, putting together a proposal before any work is started.

As part of its Airbnb management service, Portico Host will also look after the entire Airbnb process, from setting up the property listing, organising professional cleaning and hotel-quality linens, arranging 24-hour check-in, handling guest bookings and communication, and dealing with all property maintenance.

For those with furnished properties, the agent offers a standard Airbnb management package, which costs 15% + VAT and includes all of the services explained above, except interior styling.

The agent recently helped a client with the following transformation:

Before

After

It achieved this look for just £1,140, but can work to any budget. The full costings are below:

Estate Agent Launches Interior Styling Service for Airbnbs

The Marketing Director of Portico, Fiona Patterson, says: “If you have a vacant property, you’re a landlord and find yourself with a gap between tenancies, or you’re away a lot and your home is often unoccupied, listing your property on Airbnb can be a great money maker – and now, our new Airbnb management service, Portico Host, can help make the process simple and successful.

“A well styled or staged property is key to increasing occupancy rates, guest ratings and the amount you can charge. Better still, the service almost always pays for itself, as our statistics show that staged properties sell for 8% more than empty or un-staged properties.”

Are you inspired to get your property on Airbnb or use these clever tricks to maximise your property marketing?

Energy efficiency group calls for £5,000 cap on PRS works

Published On: August 10, 2017 at 1:48 pm

Author: Em Morley

Categories: Landlord News

Tags: energy efficiency,EPCs,landlords,tenants

An energy efficiency pressure group has given its backing to new Government energy efficiency guidelines, written at improving 300,000 private rental homes.

However, the Association for the Conservation of Energy has also proposed a cap of £5,000 for costs of remedial work carried out on each property.

Compliance

Speaking to the magazine Utility Week, the group also said it believes that compliance with new domestic energy efficiency standards coming into force next April could only cost £600 per home.

The new Minimum Energy Efficiency Standards are based on Energy Performance Certificate ratings and could force landlords into significant expense for each property.

From April 2018, it will be illegal to let a property with a F or G EPC rating to a new tenant – albeit with a few exemptions. From April 2020, a minimum rating of E will apply, for both new and existing tenancies.

The target is from 2025 for properties have a minimum EPC rating of D, with this rising to C from 2030.

Energy efficiency group calls for £5,000 cap on PRS works

Higher Ratings

Chief Executive of the Association for the Conservation of Energy Joanne Wade said: ‘How landlords should spend £600, would depend on how to get their energy performance ratings higher. This could include better heating control rafts, replacing windows and loft insulations. We are not asking for major work to be done.’

‘Looking to the next Budget statement, I think that we need to provide longer term incentives to landlords that what are currently on offer, and stop the staccato progress on incentives. For example, a policy of zero rated VAT for implementing energy efficiency measures could be introduced, to boost the link between a higher level of energy efficiency and higher quality apartments,’ she added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/8/pressure-group-urges-5-000-cap-on-energy-efficiency-rental-work

NatWest will “Continue to Support” Portfolio Landlords

Published On: August 10, 2017 at 9:55 am

Author: Em Morley

Categories: Finance News

Tags: mortgages,portfolio landlords,PRA

NatWest has revealed an overhaul of its underwriting processes for portfolio landlords ahead of September’s regulatory changes for investors with four or more properties, but insists that the reforms will “continue to support” these landlords.

NatWest will “Continue to Support” Portfolio Landlords

From 11^th September 2017, the lender will require additional information on landlords’ other residential and buy-to-let properties, to enable it to undertake a full affordability assessment, with the same stress rate applied to all other mortgages, in addition to the existing application.

The rules, which are being introduced ahead of the Prudential Regulation Authority’s (PRA) deadline for tougher underwriting standards on 30^th September, will see brokers offered access to an improved buy-to-let calculator hosted on NatWest’s intermediary website, created to make it simpler for them to assess customers’ affordability.

A new valuation service will also be introduced to assess rental demand and rental income for all other properties being let, with the results used to validate customer affordability.

NatWest’s interest coverage ration will be reduced from 5.5% times 145% to 5.5% times 135%, and the lender will continue to top-slice if there is a rental shortfall, taking into account any free personal income the applicant may have.

All customers will be required to meet NatWest’s standard buy-to-let minimum income of £25,000, while the maximum aggregate customer borrowing permitted will be raised, from £2m to £3.5m.

The Head of Intermediary Mortgages at NatWest Intermediary Solutions, Graham Felstead, comments: “The buy-to-let market continues to be important for customers and brokers, and it’s one that we will continue to support.

“The new PRA requirements have given us the opportunity to review our whole approach to the buy-to-let sector, and I am delighted that we will continue to lend to both non-portfolio and portfolio landlords, with an enhanced proposition for intermediaries and their customers.”

He continues: “With any change comes an element of uncertainty, but by making our intentions clear now and developing our calculator, we hope that brokers and their customers can be reassured that they will be able to count on NatWest as one of their key lenders in this market.

“We will communicate clearly with intermediaries over the coming weeks about what changes they need to make and what we will be doing differently so that we can have a smooth transition come 11^th September, when these changes are implemented.”

Leeds Building Society recently revealed its buy-to-let portfolio plans, while Paragon and Aldermore have already announced their stances.