Posts with tag: landlords

Where is the best town for rental yields?

Published On: September 26, 2016 at 8:57 am

Tags: Buy-to-Let,Buy-to-Let Index,landlords,rental yields

The latest Buy-to-Let Index from LendInvest has revealed the top areas for rental yield growth over the year between August 2015 and July 2016.

Specifically, the Index focuses on postcode areas in England and Wales, looking where average yields have increased the most over the period.

Yearly yields

Blackburn came out on top spot, with average rental yields in the town rising from 4.13% to 5.69%- an increase of 37.8%. In addition, Blackburn is the cheapest area in the top ten regions for property buyers. Average house prices in the region currently stand at £95,000.

Carlisle came a close second, with rental yields spiralling by 36.5%. Gloucester came in third, with an increase of 19.4% in rental yields over the twelve months.

At the other end of the scale, Durham was found to be the worst region for rental yield growth. Here, returns have slipped by 34.2% in the year, from 7.09% to 4.67%. Durham was closely followed by Chester and Croydon.

Where is the best place for rental yields?

Savvy

Christian Faes, Co-Founder and CEO of LendInvest, noted: ‘savvy property investors won’t only look out for which areas will offer the best returns right now, but are considering the best growth for the months and years to come. That means spotting areas which will become more popular in the future. That may be due to improved transport links, for example those towns which are due to be on the new HS2 line, or those which are due to benefit from new infrastructure projects, which will bring additional employment into the region.’[1]

[1] http://www.propertyreporter.co.uk/property/which-town-tops-the-list-of-buy-to-let-hotspots.html

One million tenants victims of rogue landlords in past year

Published On: September 23, 2016 at 10:20 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,rogue landlords,Shelter,tenants

A shocking new report has revealed that more than one million tenants across England have been the victim of a rogue landlord during the past twelve months.

This means that roughly one in eight renters have encountered issues with landlords breaking the law, according to housing charity Shelter.

Issues

Shelter’s research came from a YouGov poll of 3,250 tenants and returned worrying results.

Issues highlighted included landlords entering homes without consent, deposits not being sufficiently protected, renters being abused or harassed and discrimination on grounds of race, nationality or gender.

Further details from the report suggest that 64,000 people have had their utilities cut off by rogue landlords. 50,000 are predicted to have had their belongings thrown out or the locks on their property changed.

One million tenants victims of rogue landlords in past year

Unacceptable

Richard Lambert, Chief Executive Officer at the National Landlords Association noted: ‘these figures highlight serious issues that are simply unacceptable but our research with tenants shows that 82% say they are happy with their current landlord. Furthermore, Shelter’s figures show the vast majority of landlords to be law abiding.’[1]

Danielle Goodwin, helpline advisor at Shelter, said: ‘every day at Shelter we speak to people at the end of their tether after a law-breaking landlord has caused chaos in their lives.’[1]

‘These range from instances where the renter has been unaware of their rights, to cases where renters are exploited and subjected to terrible experiences by a minority of law-breaking landlords.’[1]

More cause for concern came from the National Landlords Association’s quarterly poll of its members. Results of this poll show that three out of ten UK landlords has been verbally or physically abused by their tenants.

[1] http://www.itv.com/news/2016-09-23/one-million-renters-suffer-under-rogue-landlords/

Paragon mortgages announces new buy-to-let fixes

Published On: September 21, 2016 at 11:37 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,interest rates,landlords,mortgages

Paragon Mortgages has today moved to launch a new range of five-year, fixed-rate mortgage products for both individual and limited company landlords.

These new mortgage rates at 75% loan-to-value begin from 3.75%, with the products including funding for both self-contained homes, alongside more complex properties.

Lower interest rates

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 HMO’s.’[1]

‘These are the first products we have launched which feature an ICR that reflects lower interest rate expectations and the reduced risk that customers on longer term fixed rates benefit from,’ he added.[1]

Paragon mortgages announces new buy-to-let fixes

The new longer term fixed rate products include a different interest coverage calculation based on an interest rate forecast of 4%. This is with the interest coverage ratio (ICR) set at a minimum of 125% for single self-contained units and 130% for more difficult HMO properties.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/new-five-year-btl-fixes-from-paragon

Selling a property most stressful life event

Published On: September 21, 2016 at 9:11 am

Author: Em Morley

Categories: Property News

Tags: landlords,property,selling a property

A new survey has revealed that selling a property is the most stressful life event.

The study, conducted in the summer of 2016 by Vivo Property Buyers, found that selling a home is more stressful than having a baby, moving job roles and planning a wedding.

Stressful

Ensuring a guaranteed sale, alongside receiving the highest possible price are two significant factors that were important to house sellers, thus contributed most to their stress levels.

Jantiene Sobry, co-founder of Vivo Property Buyers, agreed with the findings, noting: ‘this is very true and completely understandable. It is the biggest asset most people will ever own and the process is long and daunting. It is the unknowns which make it a stressful event in your life.’[1]

‘This is exactly the reason why we set up Vivo Property Buyers. It seemed that within the property industry, there was only one known way to sell your house: selling on the open market. There is a real niche in the market to create a stress-free guaranteed house sale process without having to jump an endless amount of hoops,’ she added.[1]

Selling a property most stressful life event

Results

Further results from the survey revealed that short-term loan companies are the least trusted in the industry. In addition, the average time people estimate it will take to sell their property is between three and six months.

The most popular choice of selling a home is through a local estate agent.

What’s more, the survey found that there is still a stigma attached to the property buying industry, in comparison to local estate agents. However, Rupert Sobry, husband of Jantiene, remains optimistic.

‘Luckily, organisations such as the Property Ombudsman came into play to regulate the industry and protect consumers. Still, unfamiliarity breeds concern. It’s human nature to be suspicious about new things. Hopefully regulated Fast Property Buyers will soon be seen as equals to estate agents. Sellers can make their choice as to how they would like to sell but at least they have several options as opposed to only one option in the past,’ he observed.[1]

[1] http://www.propertyreporter.co.uk/property/survey-reveals-that-selling-a-house-is-the-most-stressful-life-event.html

Rogue letting agent has appealed quashed

Published On: September 19, 2016 at 10:14 am

Author: Em Morley

Categories: Property News

Tags: criminal activity,landlords,rogue letting agents,tenants

A rogue letting agent who stole more than £400,000 from clients has unsurprisingly had her sentence appeal dismissed in court.

Amy Williams, part-owner of Williams & Young Ltd in the West Midlands, had her jail term upheld at London’s Appeal Court.

Stealing

Williams stole money from the letting agency alongside her partner Glenn Austin, who was handed a sentence of two-and-a-half years for his role in the criminal activity.

The stolen funds amounted to £408,800 and were used to perpetuate Mr Austin’s gambling addiction.

Their deceit was first uncovered in 2015, when tenants and landlords both started to issue complaints to Birmingham’s Trading Standards and Action Fraud departments. Williams was found to have taken deposits and advanced rents from would-be tenants, but never passed this money on to landlords themselves.

Additionally, she took money from different people, for the same properties.

Rogue letting agent has appealed quashed

Thrown out

After being sentenced in April , Williams appealed her sentence, with this being thrown out at London’s Appeal Court on September 16^th.

Williams claimed that her sentence was unfair considering that of her partner’s, who claimed she was involved in 80% of the losses caused.

Mr Justice Edis, who presided over the case, said that Austin was fortunate to avoid a longer sentence for his role in the scam.

Chris Neville, head of Trading Standards for Birmingham City Council, said, ‘this fraud was not only heartless, leaving landlords and tenants out of pocket, but it was foolish-using company funds to finance a string of bets to raise more money.’[1]

‘Tenants paid deposits and advance rents to Williams & Young Ltd in good faith and in some cases, landlords were unaware this was the case as the money had not been passed on,’ he added.[1]

As a result of her actions, William’s membership of the National Association of Estate Agents and the Association of Residential Letting Agents was terminated.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/9/agent-who-stole-thousands-from-clients-has-sentence-appeal-dismissed

Landlords should cover letting agent fees, says Citizens Advice

Published On: September 19, 2016 at 9:12 am

Author: Em Morley

Categories: Landlord News

Tags: Citizens Advice,complaints,landlords,letting agency fees,private rental sector,tenants

Citizens Advice has called for all letting agency fees to be paid by landlords as opposed to tenants, as is the case in Scotland.

The charity believes that landlords have an advantage of being able to shop around for the most suitable deals. On the other hand, tenants however have no choice over the agent they deal with, nor the fees they are charged, following finding a suitable property.

Complaints

More numbers of renters are contacting the charity with complaints about letting agents. Citizens Advice said it received 6,500 calls about the sector in the year to June. This was a rise from 6,200 in the same month last year and 5,700 the year previously.

In the past, many tenants have lodged complaints about delays and getting repairs fixed. However, it now appears that complaints are more prominently about letting agents’ fees.

Presently, tenant fees are charged for a number of services, including preparing a tenancy agreement, referencing and making credit checks. Citizens Advice believes these features should be paid for by landlords.

Chief Executive of Citizen’s Advice, Gillian Guy, said, ‘private renters shop around for properties, not for letting agents. Landlords are better able to choose agencies based on performance and cost and it should therefore be landlords paying letting agent fees, not tenants picking up these rising costs.’[1]

Landlords should cover letting agent fees, says Citizens Advice

Fairness

Responding to the claim, David Cox, managing director of the Association of Residential Letting Agents (ARLA), said he believes that letting agents have a ‘fair pricing structure,’ and do not make a, ‘noticeable profit.

Cox feels that landlords are left with little choice but no charge for essential items such as credit checks, rent to rent assessments and inventories.

‘Rather than simply transferring the total cost onto the side on the landlord, what is crucial is to provide consumer protection through better regulation of the private rented sector,’ Cox noted.[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/all-letting-fees-should-be-covered-by-landlords-says-charity