Posts with tag: landlords

Are Government housing schemes driving prices up?

Published On: September 2, 2016 at 10:04 am

Tags: government,housing demand,landlords,property market

In excess of two-thirds of Government spending on incentives designed to encourage buyers, such as Help to Buy, have failed to increase housing stock, according to new claims.

Despite increasing demand for property, these sort of schemes have only served to add to the supply-demand imbalance, putting upward pressure on prices, according to Shelter.

Failed focus

The charity organisation has slammed the Government for spending most of its property funding on house-buying incentive programmes. This money, according to Shelter, could have been better being put towards increasing the supply of housing stock, including affordable housing.

Shelter argues that the Government’s housing strategy has only increased demand to buy property and has moved property prices up, while failing to front up to the shortage of homes in Britain.

Latest figures from Nationwide indicate that residential property prices continued to rise in August. Values rose by 0.6% month-on-month to hit an average of £206,145, largely due to a fall in the number of properties for sale.

Are Government housing schemes driving prices up?

Stable

Chief economist at the Nationwide, Robert Gardner, noted, ‘surveyors report that instruction to sell have declined and the stock of properties on the market remains close to 30 year lows. This helps to explain why the pace of house price growth has remained broadly stable.’[1]

Early this week, Peter Jeffreys, a senior policy analyst at Shelter, told the Daily Telegraph that new prime minister Theresa May has a chance to increase supply of homes. However, he warns that this can only be done if there is a substantial reform of the house-building sector, including local authority planning sections.

In 2015, there were approximately 120,000 new homes built in Britain. This is less than half of the 250,000 per year the Government feels is needed to solve the crisis.

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/8/government-housing-schemes-are-pushing-up-house-prices

Landlords, Save Up to £1,600 a Year with New Digital Management Agency

Published On: September 2, 2016 at 9:16 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,letting agent fees,letting agents,management agency,tenants

Landlords, did you know that a new digital management agency has now launched, which will help you save up to £1,600 a year in fees?

NoAgent.co.uk uses technology to automate the marketing, administration and maintenance of its rental properties, as well as supplying 24/7 support from experienced property professionals.

So how does the new management agency work?

Free marketing

No Agent offers free advertising on the UK’s major property portals (Rightmove, Zoopla, etc.), granting access to a much wider audience without using local letting agents.

No extra fees

A simple fee structure means that landlords are charged just £39 per month for London properties and £29 a month outside of the capital. Landlords and tenants face no additional fees. Furthermore, landlords aren’t tied into a long-term contract and can cancel at any time.

Landlords, Save Up to £1,600 a Year with New Digital Management Agency

No paperwork

Landlords can manage their properties using a real-time dashboard. All administration is handled online or through No Agent’s 24-hour call centre, including viewings, reference and credit checks, contracts, check-in, compliance reminders, maintenance and deposit/rent collection.

Tenants can also use the online system to organise viewings and manage application documents, while also avoiding additional agency fees.

Easy payments

No Agent has introduced direct debit payments, allowing landlords to switch from using standing orders.

Expert advice

Landlords will have instant access to property managers, with an average of five years’ experience, and a legal helpline.

The firm has also announced that veteran property technologist Gillian Kent has joined as Chairman. Her previous roles include CEO of Propertyfinder.com, which was sold to Zoopla in 2009 and integrated into its platform, and Managing Director of MSN UK.

Kent says: “Despite the impact of the digital revolution, property services haven’t fundamentally changed. No Agent is the only service that completely automates a range of essential tasks, such as marketing, bookings, reference checks, maintenance and compliance.

“Strategically, what we’re doing is empowering landlords to fully manage all aspects of the letting of their property, and save money as a direct result. Agencies currently earn £115m a year in fees for doing these sorts of tasks.”

By using technology throughout the lettings process, No Agent can offer industry-leading prices and access to round-the-clock support. This process saves money, time and increases transparency.

“The average monthly rent outside of London is now £779,” Kent points out. “So when you add on standard agency charges like a month’s rent, together with monthly management fees of up to 15%, the first year cost for a landlord is close to £2,000.”

She continues: “By contrast, using No Agent would save them just shy of £1,600. Tenants will also be better off, as we don’t charge for services like drawing up tenancy agreements and credit checks. However, letting agencies now typically charge tenants £337 in fees – many in London are forced to pay over £400.”

Concern growing over new buy-to-let tax changes

Published On: August 31, 2016 at 11:23 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,Parliamentary Bill,Residential Landlords Association,tax changes

There are growing fears in the property industry that the Government could be about to introduce a new buy-to-let tax assault on landlords.

Over the long weekend, the Law Society accused the Government of avoiding any property consultation in the way it introduces proposals. This, it warns, could mean profits from the sale of buy-to-let property could be subjected to income tax rather than capital gains tax.

Concerns

In the words of the Law Society, the measures were, ‘slipped in at the committee stage of a Parliamentary Bill, by the Government. This was instead of the formal legislation subject to a mandatory consultation period.

The Residential Landlords Association has now expressed its concern, calling on the Government to clarify amendments made to the Finance Bill 2016.

Concern growing over new buy-to-let tax changes

Writing in a letter to Chancellor Phillip Hammond, the Residential Landlords Association said that the amendments have blurred the distinction between trading profits from the purchase and resale of property and investment in property to let.

A statement from the RLA said, ‘at a time when the Government are attacking residential landlords through changes to Mortgage Interest Relief and Stamp Duty Land Tax, we have significant concerns of the potential devastating impact on the sector of further tax changes.’[1]

What’s more, the Association has moved to ask its members and others wanting to slacken the burden on the private rental sector to contact their local MP.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/8/growing-industry-concern-over-new-buy-to-let-stealth-tax

New initiative to help tenants strengthen credit score

Published On: August 30, 2016 at 3:05 pm

Author: Em Morley

Categories: Finance News

Tags: credit history,landlords,mortgages,private tenants,rental payments

A new initiative has been launched in order to help private tenants improve their credit histories by recording rental payments. As such, they will then receive recognition in the same way as mortgage payers.

The scheme has been announced by Experian, which believes many renters stand to lose out on an opportunity to build up their credit scores. They will in turn be at a disadvantage when attempting to secure online deals for features such as car insurance and mobile phone contracts.

Boosts

Alongside helping to strengthen credit histories, The Rental Exchange also plans to give support to the electronic verification of a tenants’ identity when they search for financial assistance online.

One of the initial agents in Britain to pioneer the scheme is Karl Tatler Lettings, with properties across Liverpool.

Head of Lettings at Karl Tatler, Dave Seed, observed, ‘the initiative is a way to strengthen your credit report, without needing to take on new credit or debt, just by paying your rent on time each month. People should not be a financial disadvantage for renting and deserve equal access to services many of us frequently use.’[1]

‘Landlords will also benefit from our partnership with Experian. The Rental Exchange will provide added confidence and reassurance in the quality of tenant such a scheme will attract. These tenants will have a greater incentive and motivation to pay their rent on time as it will directly impact their credit score, potentially leading to even lower rents.’[1]

New initiative to help tenants strengthen credit score

Services

Rental Exchange partner at Experian, Mark Goodfellow, said, ‘what many people don’t realise is that you need a good credit rating to access mainstream financial services, from bank accounts, credit cards, personal loans and mortgages, to mobile phone and utilities contracts. In the past, building a good credit rating has been easier for homeowners than for tenants, because mortgage payments are factored in, but with The Rental Exchange we want to help level the credit rating playing field.’ [1]

[1] http://www.propertyreporter.co.uk/finance/new-initiative-helps-tenants-strengthen-credit-score.html

1/3 of tenants still funding energy efficiency improvements

Published On: August 30, 2016 at 1:25 pm

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,energy,energy efficiency,landlords

One third of tenants have recently forked out for energy efficiency improvements in their property, despite Government legislation permitting landlords of F and G rated homes to make these alterations.

The legislation, which came into effect on April 1^st 2016, permits tenants to request a more efficient property. Should the landlord fail to comply with improvement requests, they could be required to pay a penalty fine.

Payments

An investigation carried out by PropertyLetByUs, indicates that one in six tenants have paid for roof insulation. 7% have paid for double-glazing, with a whopping 92% paying for draft excluders for their windows and doors. 71% said they have made payments in order for their boiler to be repaired.

Further data from the report suggests that 88% of tenants want their landlord to install a more fuel-efficient boiler. 78% wish to have a draughty door replaced, 72% want loft insurance and 48% are after double-glazed windows.

Government officials predict that it could cost landlords between £1,800 and £5,000 in order to bring homes with an F and G rating up to an E rating.

1/3 of tenants still funding energy efficiency improvements

Failures

A PropertyLetByUs spokesperson said, ‘our research shows that it is failing on tenants to pay for energy improvements to their rented properties which is simply unacceptable. Many tenants are finding that their landlords are refusing to make improvements to the property, leaving tenants no choice but to dip into their own pockets.’[1]

‘Tenants should not have to pay for roof insulation and repairs to old boilers when it is the landlord’s responsibility. The Government has recently given guidelines on the costs with a typical package of measures for a small semi. Gas central heating and low energy lighting is estimated at £4,000, loft insulation at £300 and cavity wall insulation at about £500. The Government will need to put measures in place to ensure that landlords are compliant-or the financial burden on tenants could be even greater.’[1]

‘Landlords should comply with the current legislation that requires them to make energy efficiency improvements and they also should start improving their properties, if they have an EPC rating of F or G, so they are brought up to the required standard by 2018.’[1]

[1] http://www.propertyreporter.co.uk/property/a-third-of-tenants-still-funding-energy-efficiency-improvements.html

What does the future hold for buy-to-let post Brexit?

Published On: August 25, 2016 at 9:41 am

Author: Em Morley

Categories: Landlord News

Tags: Brexit,Buy-to-let lending,EU referendum,landlords,tax

It is now two months since the UK took its historic decision to leave the European Union. Despite this, there has been no move to trigger Article 50, from which time Britain will have two years to negotiate its exit.

This has not stopped banks from attempting to cut buy-to-let lending, nor has it prevented pessimistic outlooks from the Treasury.

Need for concern?

Newcastle Building Society, Barclays and TSB have all recently announced that they are to cut buy-to-let lending because of Brexit fears.

The question is-should landlords and investors actually be overly concerned?

A new forecast from estate agency Countrywide has predicted that property prices will fall by just 1% across the country in 2017. The agency feels that not only Brexit but also stamp duty changes are the main causes of this estimated drop.

Peter Armistead, of Armistead Property, based in Manchester, feels that these reactions from banks are knee-jerk and should be taken lightly. He highlights the fact that no-one can currently be sure of the impact of Brexit on the housing market.

Pinch of salt

Mr Armistead noted, ‘it is worth taking all the scaremongering with a pinch of salt. While the future for the buy-to-let market looks certain, what is clear is that mortgage interest rates remain very attractive. Buy-to-let investors who are in a position to buy now could benefit for not only low mortgage rates, but lower property prices.’[1]

‘The buy-to-let market is strong and continues to provide essential housing for a growing UK population. It is estimated that two million Britons are now private landlords, collectively renting out five million properties. With rising demand for rental property and a growing shortage of accommodation, the buy-to-let market will continue to give a good return on investment.’[1]

What does the future hold for buy-to-let post Brexit?

Tax measures

Armistead observed that, ‘even before Brexit, the buy-to-let market was slowing, due to the new tax measures introduced by the Chancellor. Although the Government is trying to curb the buy-to-let market, property investment is robust in the long-term. However, lending may be further constrained and the banking industry may be hit harder in a few years.’[1]

‘So far, figures from the Halifax and Nationwide show a slowdown from earlier in the year, when many investors rushed to get deals done before April. However, the market has not seen the type of falls that ‘Project Fear’ was predicting before the Referendum. The slowdown is pretty much in line with seasonal expectations following the bull market of January to April 2016. The market does not like uncertainty and we may have several years of this, along with potentially more issues to deal with,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/property/whats-in-store-for-btl-post-eu-referendum.html