Posts with tag: landlords

ARLA believes rents will rise in 2016

Published On: December 29, 2015 at 1:09 pm

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The Association of Residential Letting Agents (ARLA) has issued a warning that rents will rise early in the New Year, with the vast number of rule changes affecting landlords the catalyst.

David Cox, MD of ARLA, said that the vast changes in legislation coming into force next year will see increased compliance costs for landlords and push rents up as a result.

Re-think

Cox said that ARLA wishes the Government to, ‘re-think its proposals around reducing mortgage interest relief, scrapping the wear and tear allowance and hiking up stamp duty by 3% on buy-to-let properties.’ He says that, ‘whilst these remain, the Government’s goal of increasing the percentage of people in home ownership is getting further out of reach.’[1]

‘The issue of supply and demand in the rental market will be increasingly pushed to its limit with rising demand outstripping supply,’ he continued.[1]

ARLA believes rents will rise in 2016

ARLA believes rents will rise in 2016

Tightening

However, ARLA believes that it is good news that regulation in the industry will be getting tighter in the coming year. The trade body also said that it is confident that the provisions outlined within the Housing and Planning Bill will give courts more powers in combating rogue landlords and letting agents.

Mr Cox went on to say, ‘the Right to Rent checks introduced in the Immigration Act 2014 will be rolled out nationally from 1 February 2016 following a successful pilot scheme in the West Midlands. However, we worry that the goodwill established towards the scheme may be tested by the increase in volume, disenfranchising landlords from the process.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/12/arla-rents-will-increase-in-2016

 

 

Secure your homes over the break

Published On: December 29, 2015 at 10:57 am

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Categories: Landlord News

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With the festive period in full swing, many of us will be travelling to see loved ones over the extended break from work (well, for some of you!)

However, while Brits are getting stuck into mulled wine, leftover turkey and gorging on chocolate, it is important to remember that there are some that prey on poorly secured empty properties.

Stay secure

As owner of Belvoir, Birmingham Central, Major Mahill observes; ‘an empty property is a vulnerable property. So, if your tenant is intending to be away during the festivities, it’s important to put some security measures in place in order to protect it.’[1]

‘Opportunistic thieves love empty properties, especially over the Christmas period when piles of pricey presents are left unattended. In addition, unexpected maintenance emergencies can escalate at speed while no one’s home,’ he added.[1]

Maintain

During the Winter, one of landlords’ greatest fears is flooding, something which has been seen in extreme levels recently in the North. Charlotte Baker, owner of Belvoir Melton Mowbray and Bingham said, ‘a leaky roof, blocked guttering or burst pipes can all cause substantial damage swiftly in the absence of a tenant to notice or report them.’

‘To help reduce the potential of water worries, check that all roof tiles are secure and haven’t been damaged by the recent winds, plus that all guttering is unblocked and debris-free,’ she continued.[1]

Mr Major added, ‘to help prevent frozen pipes ensure all pipes are adequately insulated, plus ask your tenant to set the timer on the heating for an hour in the morning and at night while they are away.’[1]

Secure your homes over the break

Secure your homes over the break

Lengthy leave? Liaise

Tenants looking to leave rental property for an extended period should always inform their landlord first. Baker notes that, ‘if your property is going to be empty for 28 days or more its important that you are made aware. Some tenants may even be happy for you to visit the property occasionally in their absence to make sure all is well. Before doing so however, always ensure you have their permission for this.’[1]

‘It’s vital that you have a good insurance policy in place in case the worst was to happen,” she added. “when did you last check your policy? Is it going to cover you for all the common winter emergency situations? Plus, are there certain criteria you have to meet if the property is vacant for an extended period of time, such as draining the heating system?’[1]

Christmas crimes

It is important to remember that Christmas provides an opportune time for burglars to make their move. Unoccupied homes packed with Christmas gifts are the main target and tenants and landlords alike should work together to combat the mindless few.

‘If the property has a burglar alarm, window locks and other security features check that they are in working order,” says Baker. ‘Also consider installing outside security lights. It’s helpful to talk to your tenant in order to ensure they understand how to use the security measures you’ve put in place and are aware of their responsibilities.’[1]

Mr Major agrees, stating, ‘While it’s beneficial for you (and perhaps a neighbour) to know that your tenant is going to be away over the festive season, it’s just as valuable that other people don’t!” he says. ‘Providing an interior lamp with a timer can help make a property appear occupied, as can leaving a car in the driveway, plus asking a neighbour to push post properly through the letterbox and put out the bins.’[1]

Checklist

Tenants and agents should take time to look at this useful checklist to ensure their properties are as safe as possible over the break:

  • Advise of any extended periods where the property will be empty
  • Ensure alarms, windows and other safety features are working
  • Use central heating timers to help combat burst pipes
  • Check roof tiles
  • Unblock all guttering
  • Ask a neighbour to put the bins out
  • Install security lights
  • Take out sufficient insurance

[1] http://www.propertyreporter.co.uk/landlords/an-empty-property-is-a-vulnerable-property.html

 

 

Celebrity Landlords and Their Luxury Properties

Published On: December 20, 2015 at 4:20 pm

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Being a landlord can be profitable, rewarding and exciting. So exciting that even celebrities are doing it – imagine finding out your landlord was Mick Jagger!

But not many of us will be able to rent from the rich and famous, as their lets are typically luxurious and exclusive.

Celebrity Landlords and Their Luxury Properties

Celebrity Landlords and Their Luxury Properties

So what kind of properties do celebrities rent out?

The most popular type of property is houses, with 62% of celebrity landlords letting this style. Next is apartments at 16%, followed by ranches or estates at 13%, private islands at 7% and boats at 2% – who has a private island to rent out?!

Singers/musicians are the most likely famous people to become landlords, with 31% of all celebrity investors coming from this profession. Actors follow at 27%, those in business at 10%, sports personalities and writers at 8%, TV personalities at 6%, magicians at 4%, and fashion experts and chefs at 2%.

It is unsurprising that most of these celebrity rental properties are in the USA, at 70%, but the Caribbean follows at 17%, with just 6% being in the UK, 4% in France and 2% in Brazil.

Richard Branson’s Necker Island is arguably the most exclusive celebrity let, costing up to £32,915 per night. Renting it for a whole year will set you back a whopping £12,014,623. So what do you get for all this? Well, the island sleeps up to 27 guests, so you can bring your family along. The main house has eight rooms and there are a further six villas on the island. The price does include meals, drinks and the service of 60 members of staff. Guests can also enjoy the zip line down to Turtle Beach and the many animals that roam the island, thanks to Branson’s passion for preserving endangered species.

So what kind of landlord is Mick Jagger? The rock star owns the aptly named Stargroves, a private island costing up to £16,132 per week – at least it’s cheaper than Branson’s! The island’s beachfront villa is Japanese-inspired and boasts six bedrooms, a tennis court and pool. Certain members of staff are included in the cost, such as a housekeeper, gardener and personal chef. Reportedly, Jagger personally vets his prospective guests before they arrive – at least he’s following standard practise!

For something a little more down to Earth, Hilary Swank has an apartment in Manhattan that can be rented out. But this still isn’t for everyone; living here will cost you a huge £12,910 a month. For this, you can enjoy a two-bedroom apartment in New York with views of the Empire State Building and a fully kitted out gym.

Okay, so are there any celebrity landlords that actually offer affordable properties?

Well yes, in fact, Robbie Fowler has a portfolio of around 80 rental homes, most of which are in the North West of England. The majority of the footballer’s properties are terraced houses – perfect for the average family. And as fans of Manchester City Football Club say, “We all live in a Robbie Fowler house” (to the tune of Yellow Submarine of course).

Tips for keeping energy bills down…and heat in!

Published On: December 20, 2015 at 11:15 am

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Winter is upon us and for many over 50’s, this can lead to months of worrying about their energy bills.

As temperatures plummet, one in five people in this age bracket said that they will struggle to pay their bills, with one in ten saying that they would go to bed earlier or get up later to avoid putting their heating on.

Concern

Despite energy prices remaining fairly constant from the same period this year, over half of over 50’s are concerned about the cost of their energy bills ahead of the coldest period. The greatest concerns are from those living in the North East, Scotland and Wales.

61% of over 50’s said that they would have to wear extra clothing or just put the heating on at certain times of the day in order to economise. 30% said that they would only heat certain parts of their home, while 30% said that they would only heat specific rooms.

Shockingly, one in eight people said they wouldn’t go in some rooms of their home due to the cold!

Lisa Harris, head of communications for Saga, said, ‘keeping warm in winter is not a luxury it’s essential for many to keep fit and well over the winter months. People shouldn’t be afraid of putting the heating on, but one in ten admit that they would only put their heating on as a last resort. However, there are often lots of relatively simple measures that people can take to help keep control of their energy bills.’[1]

Tips for keeping energy bills down...and heat in!

Tips for keeping energy bills down…and heat in!

Tips to stay warm!

Before it is too late and Jack Frost and his friends take their grip on proceedings, here are five top-tips to keep heat in and costs down:

  • Properly seal windows and doors

20% of heat from a home escapes through cracks in doors and windows. Using draught excluders, curtains and efficiently sealing windows can massively help in keeping properties toasty warm

  • Put heating on a timer

By setting a central heating timer, bills can be slashed. Setting the heating to come on for a couple of hours on the morning and in the evening is much-more cost effective than leaving it on all day! What’s more, those chilly showers in the morning will be a little more bearable when the heating has been on for a while!

  • Insulate your loft

It has been proven that loft insulation is effective for at least 40 years and can save up to £250 on energy bills every year. Those living in bungalows should look at getting their loft insulated as a priority, with the larger surface area of the roof in comparison to a house meaning heat can escape at a faster rate.

  • Get walls insulated

Insulating walls properly can save the average property owner £460 per year on energy bills. It is important to get the correct type of insulation installed. Either Cavity Wall Insulation or Internal/External Wall Insulation will reduce heat loss.

  • Turn off electrical items

The Energy Saving Trust suggests that homeowners in the UK could save £1.7bn per year by turning off electrical items. Turning off lights, TV’s, phone chargers and game consoles are all measures that could save money. Don’t think that by putting something on standby means that it is off…turn it off properly!

 

[1] http://www.propertyreporter.co.uk/household/top-tips-to-save-energy-and-cut-fuel-bills.html

 

 

Rents slowing across Britain

Published On: December 19, 2015 at 10:20 am

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New figures indicate that rents are seemingly slowing across Britain.

Data from the Homelet Rental Index shows that rents on new tenancies during the last three months dropped in the majority of regions. In addition, nine out of ten landlords said that they were not looking to raise rents on existing tenancies in the first half of 2016.

Steady

Rents for new tenancies either remained steady or slipped slightly in 10 out of the 12 UK regions in the three months to November, in comparison to October.

Throughout England but excluding London, the average rent for a tenancy signed in the previous three months was £743 per month, 0.7% down on the last three-month period. In Greater London, the average rent was found to be £1,544, down by 1%.

Rents slowing across Britain

Rents slowing across Britain

Furthermore, the Index reveals that just two regions saw increases for rents on new tenancies. In Yorkshire and Humberside, rents on new tenancies were 0.8% greater than in the previous three months, averaging £626 per month. In the East Midlands, rents were up by 1.2% at £635 per month.

Just 34% of landlords plan to increase rents in the coming year.

Relationships

Martin Totty, Barbon Insurance Group’s chief executive officer, said, ‘the research reveals the vast majority of landlords enjoy strong relationships with their tenants and are keen to keep them. Just 4% said they were unhappy with their current tenants, while 18% said high tenant turnover was the most stressful part of being a landlord, more than cited on any other single issue.’[1]

‘Being a landlord is a long term investment and attrition of tenants is not something landlords desire; our own clients tell us they would rather retain a good tenant over the longer period than seek additional income,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/12/rents-slowing-across-uk-says-homelet

 

 

 

LSL calls for Treasury to stop targeting landlords

Published On: December 18, 2015 at 11:56 am

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Categories: Landlord News

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Property firm LSL became the latest high-profile organisation to call for the Treasury to stop targeting buy-to-let landlords. Instead, the firm thinks that the Government should be searching for other alternatives to the housing crisis.

The calls came off the back of a new report suggesting that average rents have fallen below the £800 mark in England and Wales.

Decline

Data from the report conducted by Reeds Rains and Your Move indicate that average rents currently stand at £799 per month, down by 1.2% month-on-month.

Despite this monthly fall, rents have actually risen by 4% year-on-year, with more rises predicted for early in 2016.

‘Landlords have become fashionable targets for the Government and Bank of England,’ believes Adrian Gill, director of both LSL firms. He feels that the plans for a 3% stamp duty tax hike announced in the Autumn Statement represent, ‘overdue attention for the sector that provides homes for more than one in five Britons.’[1]

Gill feels that, ‘negative campaigns and unconstructive policies-designed to attack landlords rather than support tenants-will not make rents lower or provide more homes.’ He says that, ‘the effect will be quite the opposite, forcing rents upwards.’[1]

LSL calls for Treasury to stop targeting landlords

LSL calls for Treasury to stop targeting landlords

Worsening finances

In addition, LSL reports that yields for landlords have dipped, with tenants’ finances also worsening, in turn leading to more arrears. ‘For new entrants, or landlords looking to invest in additional properties to let, market conditions could be a little harder to navigate than six months ago,’ said Gill.

‘Choosing the right property in the right area is even more important when looking for the best rental yield on new investments. Partly this is down to enormous competition in the property purchase market-homes are being sold rapidly, whether to landlords or owner occupiers,’ he continued.[1]

Rental hikes

Concluding, Mr Gill said that, ‘it is a property sellers market. Similarly as yields continue to feel the pressure of rising prices, other factors will need to adjust in turn. That means higher rents.’[1]

‘Most likely this will push rents higher still – and indicates an earlier spring for rent rises in 2016. Combined with the latest attacks on landlords from the Government, this could propel demand even higher for every single home that landlords do have to offer. A continued shortage of properties to let is the challenge to overcome – and the Government needs to think pragmatically about this conundrum rather than looking for political targets.’[1]

[1] http://www.propertyindustryeye.com/lay-off-private-landlords-lsl-firms-tell-chancellor/