Posts with tag: buy-to-let landlords

Deposit disputes are at highest level since 2007

Published On: September 28, 2016 at 10:38 am

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Concerning new figures released from the Tenancy Deposit Scheme reveal that tenant deposit disputes are presently at their highest level since 2007.

Data from the report reveals that at the end of March 2016, there were almost 173,000 tenancy deposit disputes in the nine years since the legislation was first introduced.

Rising

In 2015-16, the three tenancy deposit schemes in England and Wales resolved 28,100, which in itself was the highest ever annual amount recorded. This represents a miniscule total of just 0.82% of all deposits protected in March 2016, a figure staying fairly constant for the last six years.

Cleaning amounted for the majority of reasons for disputes, showing that a growing number of buy-to-let landlords are facing increasingly dirty properties at the conclusion of agreements.

In fact, cleaning was mentioned in 57% of dispute claims handled by the TDS. Next came damage to fixtures and fittings at 51%, redecoration at 32% and rent arrears at 19%. Gardening issues made up 16% of tenancy deposit disputes.

Deposit disputes are at highest level since 2007

Deposit disputes are at highest level since 2007

Average fees

Further figures from the report indicate that the average disputed deposit handled by the Tenancy Deposit Scheme in 2015-16 was £863.40.

Of this money, 45.5% was returned to tenants and 54.5% to landlords and/or agents.

Landlords are reminded of their obligations regarding tenancy deposits. Any deposits taken on assured shorthold tenancies in England and Wales must be protected within 30 days in one of the three-Government approved schemes.

These insurance based or custodial deposit protection schemes are operated by:

  • MyDeposits
  • Deposit Protection Service (DPS)
  • Tenancy Deposit Scheme (TDS)

There are separate tenancy deposit protection schemes in Scotland and Northern Ireland.

Investment Firm Expands in Manchester Following High Landlord Demand

Published On: September 22, 2016 at 9:57 am

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Investment Firm Expands in Manchester Following High Landlord Demand

Investment Firm Expands in Manchester Following High Landlord Demand

Investment firm The Mistoria Group has expanded its business in Manchester, following high levels of landlord demand.

The high yielding property investment specialist has recently opened a new office in the heart of Castlefield, in Manchester’s city centre.

The new office, located at 2 Burton Place, is The Mistoria Group’s third office, alongside Salford and Liverpool. Acting as a hub for international enquiries, investment and sales for both UK and international investors, the new office will be staffed by a team of five.

The new Manchester office has been launched on the back of a surge in landlord demand for high yielding properties in the North West and a 35% rise in demand from international property investors.

The Managing Director of The Mistoria Group, Mish Liyanage, comments: “We have had a very successful year so far, achieving almost full occupancy for all the properties we manage on behalf of landlords, achieving 100% in Salford and 98% in Liverpool. We have been inundated with enquiries and still have a long waiting list for students wanting high spec, shared accommodation.

“Our new Manchester office will help us to continue grow our strong presence in the North West, supplying some of the best rental yields and investment opportunities that are available in the region. With the new international website underway, we have high hopes for the new office in developing our international aspirations, by expanding our offering to current and new overseas investors. Jerry O’Brien will head our international sales division.”

He explains: “We wouldn’t be able to achieve this success if it wasn’t for the great team we have working across the different divisions at Mistoria. It has been a very busy period for our lettings, marketing team and MCC Accountants. Everyone has worked very hard to ensure the smooth running of the business in the period approaching the 2016/17 academic year.

“Over the next 12 months, we will continue to do what we do best in providing some of the best high yielding investment in the UK and overseas.”

The Mistoria Group is a high yielding, student buy-to-let investment specialist, offering Houses in Multiple Occupation (HMOs) and armchair investments in the north of England.

15% of tenants admit to breaking rules

Published On: September 21, 2016 at 10:26 am

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Interesting new research has revealed that one in seven tenants have broken one or more rules outlined in their tenancy agreement.

Data from the report conducted by Direct Line Landlord Insurance shows that around 15% of renters admitted to breaking conditions of their contract. Somewhat alarmingly, 9% said they don’t have a contract at all!

11% said that they were unsure if they had broken any rules or not.

Breaking the rules

Of those renters who admitted to breaching terms of their agreement, the most common was failing to pay rent on time. Next came smoking inside a property and having a pet without permission.

The full list of most common rules flaunted by tenants were found to be:

Activity Percentage of tenants
Failing to pay rent on time (or at all) 25%
Smoking in the property 21%
Keeping a pet in the property 18%
Damaging or making alterations to the premises 17%
Changing the locks 16%
Caused disturbances or a nuisance to neighbouring properties 14%
Sublet a room without notifying the landlord 14%
Failed to clean accessible windows 13%
Redecorated without permission 12%
Failed to check smoke or carbon monoxide alarm 10%

[1]

15% of tenants admit to breaking rules

15% of tenants admit to breaking rules

Sanctions

The most common sanctions for tenants found to be in breach of their agreement include:

  • losing some or the entirety of their deposit (52%)
  • having to pay for damages (22%)
  • being evicted (4%)

However, 21% of tenants say that their landlord hasn’t found out about their actions…yet!

Nick Breton, Head of Direct Line for Business, noted, ‘the relationship a tenant has with their landlord can be crucial in the smooth running of a rented property. It is therefore of utmost importance for tenants to keep in touch with their landlords should anything arise that may be in breach of their rental agreement.’[1]

‘Many landlords may be accommodating of requests to have a pet or to make changes to the property, but it is always safest to ask before doing anything to ensure that you are not breaking your contract in the process. Tenants who break the rules of their contract can face anything from the loss of their deposit to eviction, so for peace of mind, landlords should ensure they have a watertight legal contract in place to fall back on should anything happen to their property,’ he added.[3]

[1] http://www.propertyreporter.co.uk/landlords/1-in-7-bend-tenancy-rules.html

Brace of providers launch new mortgage deals

Published On: September 16, 2016 at 11:47 am

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A brace of mortgage providers have today moved to launch new fixed rate deals.

Paragon Mortgages and Yorkshire Building Society have announced fresh three and five year deals-the former targeting buy-to-let landlords specifically.

New rates

This morning, Paragon announced their new five-year fixed-rate buy-to-let mortgage for both individual and limited company landlords. Interest rates start from 3.75%.

These fixed rates are available at LTV ratios of up to 75%, with the range including funding for self-contained units, alongside more complex HMO properties.

The new longer-term fixed-rate products include a more revised interest coverage calculation, which is based on an interest rate assumption of 4%. The interest coverage ration is set at a minimum of 125% for single, self-contained units and 130% for more complex HMO properties.

John Heron, Managing Director of Paragon Mortgages, observed: ‘with the outlook for interest rates now much lower for longer, we have been able to deliver these longer term fixed rates aimed at professional landlords including those borrowing through limited companies and those purchasing HMOs. These are the first products we have launched which feature an interest coverage calculation that reflects lower interest rate expectations and the reduced risk that customers on longer-term fixed rates benefit from.’[1]

Brace of providers launch new mortgage deals

Brace of providers launch new mortgage deals

Cuts

Meanwhile, Yorkshire Building Society has announced that it has cut selected three and five-year fixed rate mortgages by 0.14%.

These cuts are applicable to three and five-year fixes 65%, 75% and 85% LTVs for both purchase or remortgage.

New three-year fixed rate deals include a 75% LTV at 1.88% and an 85% LTV at 2.03%. Five-year fixes are available from 1.98% at 65% LTV and 2.08% at 75% LTV. Each of these mortgages comes with a fee of £845.

Brendan Gilligan, Mortgage Product Manager for Yorkshire Building Society, noted: ‘we always try to offer our customers a range of mortgage options and good long-term value for money. Our rate reductions will offer borrowers with a range of deposits competitive rates and the security of knowing how much their mortgage repayments will be for the next couple of years, especially during this time of economic uncertainty.’[1]

[1] http://www.propertyreporter.co.uk/finance/paragon-announces-new-five-year-btl-fixes.html

Shortage of student housing sees rents rise

Published On: September 16, 2016 at 9:08 am

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Interesting new research has revealed that student rents have increased by up to 10% over the last year, as the housing shortage across Britain countries.

Spiralling student demand is driving rents higher in some of the UK’s largest towns and cities. These include Cambridge, Surrey, Oxford and Edinburgh. In these regions, there are five students competing for each available room.

Southern squeeze

The shortage of housing for students is particularly concerning in the South of England and London, where more universities naturally means more demand.

Data from the report by Spareroom.com also reveals that nearly one-third of rooms for rent in top university towns and cities are not available to students.

Matt Hutchinson, director of SpareRoom.co.uk, noted: ‘students aren’t just battling rising rents, they’re also affected by a private rental market struggling to cope with demand.’[1]

Regional differences

Continuing, Mr Hutchinson observed that there are regional disparities in rental values, meaning that where students choose to go to university could have a massive impact of their post-degree debt.

‘The difference between rents for students at Imperial College in London, compared to those studying at St Andrews in Scotland, is a massive £792 a month. Over a three-year course the difference is eye watering. Even choosing Durham over Oxford could save you more than £7,000 in rent over three years.’[1]

Shortage of student housing housing sees rents rise

Shortage of student housing housing sees rents rise

Information shown below shows the average room rents in 30 of the UK’s top university towns and cities. Data is taken from Q2 rental data from SpareRoom.co.uk.

Rank University  Location Ave monthly room rent Q2 2016 (£) Ave monthly room rent Q2 2015 (£) Annual % difference No. of people looking per room available Q2 2016 Current % of rooms available to students
1 Cambridge Cambridge £541 £509 6% 3.5 60
2 Oxford Oxford £557 £507 10% 3.2 64
3 St Andrews Kirkcaldy £339 £329 3% 1.8 67
4 Surrey Guildford £574 £526 9% 3.8 62
5 Loughborough Loughborough £350 £339 3% 1.2 77
6 Durham Durham £362 £367 -1% 0.9 92
7 Imperial College London SW7 £1,131 £1,086 4% 3.9 85
8 Lancaster Lancaster £371 £353 5% 0.9 82
9 Warwick Coventry £388 £369 5% 1.7 80
10 Bath Bath £448 £438 2% 3.2 62
11 Exeter Exeter £434 £417 4% 1.9 59
12 London School of Economics London WC2 £1,034 £1,094 -5% 5.2 86
13 Birmingham Birmingham £405 £413 -2% 3.1 63
14 UCL London WC1 £870 £833 4% 4.6 85
15 Coventry Coventry £388 £369 5% 1.7 80
16 Leeds Leeds £374 £353 6% 2.8 64
17 Southampton Southampton £436 £417 4% 2.5 54
18 City London EC1 £920 £904 2% 3.2 71
19 York York £400 £379 6% 2.4 63
20 Sussex Brighton £511 £492 4% 3.7 63
21 Edinburgh Edinburgh £469 £438 7% 5 70
22 Kent Canterbury £418 £422 -1% 1.9 81
22 UEA Norwich £401 £374 7% 2.4 62
24 Nottingham Nottingham £374 £358 4% 1.8 69
25 Glasgow Glasgow £390 £376 4% 3.9 75
26 Heriot-Watt Edinburgh £469 £438 7% 5 70
27 Dundee Dundee £323 £311 4% 1.6 93
28 Aston Birmingham £405 £413 -2% 3.1 63
29 SOAS London WC1 £870 £833 4% 4.6 85
30 Manchester Manchester £414 £385 7% 3.7 74

{1)

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/student-housing-shortage-sees-rents-soar

 

 

 

Thousands of landlords still haven’t signed up to Rent Smart Wales

Published On: September 15, 2016 at 10:43 am

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Concerning new figures have revealed that thousands of landlords in Wales have not yet signed up for Rent Smart Wales. This is despite there being less than two months remaining before the scheme becomes a mandatory requirement.

Rent Smart Wales

Rent Smart Wales is a registration and licensing system in Wales, which went live last year. The scheme requires all landlords and letting agents to register their properties and undergo training to obtain a licence should they wish to self-manage their investment.

Landlords and letting agents in Wales have been given a deadline of 23rd November in which to comply with the new legislation. After then, it becomes a criminal offence to let or manage a property without the sufficient licence.

In particular, landlords in Swansea are causing concern, with extremely low numbers signed up to the scheme.

A Freedom of Information request has revealed that only 1,565 landlords in Swansea had already registered with Rent Smart Wales at the end of August. This is only just over a fifth of the total number of landlords required to do so.

Quality

The scheme is designed to improve the quality of rental accommodation in Wales, through both providing training courses and giving local councils a better understanding of where properties are situated.

However, Rent Smart Wales estimates that 8.3% of homes in Swansea are privately rented. This amounts to around 7,500 eligible properties in the city.

Welsh Liberal Democrat politician, Peter Black, noted: ‘with the registration period almost over, the failure to enlist the vast majority of landlords into this compulsory scheme has put it into crisis mode.’[1]

‘Unless there is a surge of registrations in the final two months then it will become impossible to administer this scheme effectively. Swansea tenants will miss out on the protections offered by the legislation and those living near badly managed privately rented properties will have fewer options to deal with problems.’[1]

‘This is not Swansea Council’s fault. This scheme is being administered by Cardiff Council on behalf of the Welsh Government. However, ministers are trying to do it on the cheap. They have not given sufficient resources to Rent Smart Wales to promote the scheme and councils do not have funds to chase those who do not register,’ he continued.[1]

Thousands of landlords still haven't signed up to Rent Smart Wales

Thousands of landlords still haven’t signed up to Rent Smart Wales

Numbers

According to a Welsh Government spokesperson, more than 19,000 private landlords in Wales have signed up to the scheme. In addition, more funding has been made available to local authorities to enforce the scheme.

The spokesperson said, ‘after just nine months, more than 19,000 private landlords have registered and more than 33,000 have taken the first step and opened accounts on the scheme. This compares with just 3,000 or so registered with the previous voluntary scheme.’[1]

‘We are committed to improving the arrangements for people who rent their home from private landlords and the benefits of Rent Smart Wales are already emerging-96% of those who have completed the relevant training have said it will make them a better landlord.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/thousands-of-landlords-have-not-signed-up-to-the-rent-smart-wales-scheme