Property Insurance News

Older Residents Set to Benefit from New Housing Development

May 16th, 2012

One of the biggest housing associations in the United Kingdom has announced their plans to build 186 affordable homes which will be specifically designed to appeal to older residents. Within the next two weeks, Orbit Homes will submit their formal planning application to Warwick District Council to build the £26 million independent living complex in Leamington.

Both Orbit Homes and their partner in the scheme (Coventry-based Deeley Group) believe the site is perfectly located for this type of development. The project is on the site of a former factory and has been empty for over a decade. Local residents have been invited to a meeting to get a preview of the housing development aimed at the over 55s. The new complex will also include a restaurant, hairdressing salon, IT suite and café which will all be available for use by the whole community.

Lorraine Mansfield, Orbit’s business development manager, said “Our Independent Living with Care schemes are designed to help local people remain independent in their own home, providing a place where they can enjoy a real community spirit with like-minded people. We believe this will be a valuable addition to the area. Similar schemes have proved to be widely popular in other parts of the region.”

For the past year the Deeley Group and Orbit’s Heart of England division have been having “constructive” dealings with the district council and local landlords who will be buying fifty of the new homes on the understanding that they must be rented out to older tenants and be protected with landlord insurance. Any private landlords who add one of the new properties to their portfolio must sign a contract with the council that states if they do not stick to the contract, the council can buy the property back. Members of the council’s review board all appear to broadly welcome the proposals and if they give the green light for the development, work will be started by the end of the year. When the work is completed the development will employ around fifty people and everyone involved feels confident it will be a significant addition to the neighbourhood, not just for much needed jobs but also for local housing.

Tags: Affordable homes, Deeley Group, Housing Development Plan, landlords, Orbit Homes, tenants, Warwick District Council
Posted in Council Houses, landlord insurance, tenants | No Comments »

Prosecutions against Landlords Escalate

May 15th, 2012

As the demand for private rented accommodation continues to soar, landlords in Yorkshire are being warned to ensure they are operating within the law.

The warning comes after a leading Letting Agency in the county discovered that prosecutions and complaints against private landlords stand at an all time high and in some towns are an incredible five times higher than just 10 years ago. The letting agents Linley & Simpson believe the reason for the increase is partly because of the dramatic increase in the number of homes that are now ensconced in the private rental sector and also because of the increased use of litigation in every area of life in the UK, but say the main reason is that many landlords are not aware of the growing number of regulations they must conform to.

Linley & Simpson Director Will Linley said “Our research shows that the spiralling rise in demand for rental properties over the last decade is matched by an upsurge in complaints and prosecutions. This trend is in part down to the increasingly litigious society in which we live, and in part down to the increasing burden of red tape associated with being a landlord. Most landlords know they should get property insurance and fire certificates, but it is a lot more complex than that. The lesson to be learned from our research is that landlords should employ only an accredited agent – or make sure they are armed with all the necessary knowledge needed to let a property without exposing themselves to legal action and big fines.”

Freedom of information requests show that in Bradford complaints against landlords escalated from just 263 in the year 2000 to over 1,300 in 2010. The most common complaints that lead to legal action against the landlord stem from failing to license HMOs; lack of adherence to health and safety regulations; illegal evictions and failure to manage tenant deposits in a legal fashion.

Tags: Bradford, Legal action, private landlords, Regulations, tenants, Yorkshire
Posted in Law, Property Insurance, Rental Market | No Comments »

Tenants Move into New Council Eco-Friendly Bungalows

May 14th, 2012

A Staffordshire family of three are delighted with their new home which has been built by their council to help meet a chronic shortage of housing for those with special needs. Hannah and Stephen Lowe have moved into the bungalow with their 16-year-old son, Josh. Their new home is one of seventeen eco-homes built in the area as part of a £1.8 million project to meet the demand for two-bedroom bungalows.

Building work on the bungalows finished in April and all of the homes which come complete with solar panels, under-floor heating and wet room bathrooms, have been allocated to those who need them most. Sixteen year old Josh suffers from hypoplastic anaemia from inadequately functioning bone marrow and at times needs a wheelchair to get around; his parents needed a home which could be adapted to his needs. The bungalow is ideal because he no longer has to negotiate stairs and can also manoeuvre his wheelchair through the wider doorways and hallway.

Mr Lowe said: “We had lived in a town house in Burslem for 14 years and it was very difficult for Josh to use the stairs. We were also spending up to £800 a quarter on electricity, so we really appreciate having a bungalow like this. It also benefits us in terms of it being eco-friendly. Josh’s condition means he needs to be kept warm and we are able to do that now at a cheaper rate. We are glad we have somewhere to call our permanent home.”

The new homes have been purpose-built for elderly and disabled residents and are the first properties to be built by Stoke-on-Trent City Council for twenty-five years. The innovative design of the properties has not adversely affected property insurance premiums and landlord and tenant alike are delighted with the finished homes. The concept behind the building scheme was not to create a new community but to bring families into existing ones. The overall view is that the plan has been a resounding success.

Tags: bungalow scheme, Council Houses, eco-friendly, Staffordshire, Stoke on Trent City Council, tenants
Posted in Council Houses, Property Insurance, tenants | No Comments »

Scottish Housing Association Chosen for Direct Benefit Payments Scheme

May 11th, 2012

Dunedin Canmore Housing Association (DCHA) are to be the first social landlord in Scotland to take part in the DWP (Department for Work and Pensions) scheme beginning on June 11th which will see housing benefit paid directly to social housing tenants.

In January, the Government announced five housing associations and councils across the UK to road test direct payments for twelve months before the measure is brought in during the summer of 2013. Universal Credit will see housing benefit paid directly to both council and housing association tenants and the 12-month project will test how claimants can manage housing benefit monthly payments. Each of the projects will trial direct benefit payments to 2,000 tenants.

Dunedin Canmore Housing Association own and manage around 5,000 homes in Edinburgh, Fife and the Lothian’s which are all protected with landlord insurance and they plan to keep a careful eye on the scheme, implementing a weekly audit. They feel that offering tenants the chance to receive direct payments reflects their commitment to their tenants. It is hoped Dunedin Canmore’s involvement along with the other projects in England and Wales will help housing providers understand the support tenants need, and shape the help that will be available throughout the UK when Universal Credit is introduced.

Graeme Russell, Housing Services Director at DCHA, said: “We have absolutely no doubt that the impending changes to welfare benefits and the implications of direct payments will have a profound impact on tenants and social landlords. Taking part in this project allows us to be proactive and we can drive change and help bring about a culture change. At Dunedin we believe it’s important to encourage financial independence and responsibility. If tenants take responsibility it will foster a sense of citizenship and help build stronger communities. The introduction of Direct Payments under Universal Credit is going to happen. So preparation is key to the future resilience of the sector.”

Tags: Department for Work and Pensions, Direct Benefit Payments Scheme, Dunedin Canmore Housing Association, landlord insurance, Social Housing Tenants
Posted in landlord insurance | No Comments »

Squatting to Become Criminal Offence Later This Year

May 10th, 2012

Homeowners, property investors and landlords the length and breadth of the UK will be delighted to know that squatting is soon to be recognised as a criminal offence.

The news will come as a huge relief and it should also mean a cut in landlord insurance premiums in the long term. Squatting, which is currently only a civil offence, will become a criminal offence from September 1st 2012 mainly because of continued campaigning by landlords and homeowners over a number of years. The new offence will be backed up by fines up to a maximum of £5,000 and in some cases prison sentences of up to 6 months may be passed down by a judge.

Paul Shamplina, founder of Landlord Action and a prime mover in taking the campaign to Parliament, welcomed the news saying: “Squatting cases have been on the rise for some time now, many by organised gangs whom have travelled thousands of miles to engage in squatting knowing they will be protected by the law. It was only when some high profile cases hit the headlines that people sat up and took notice of the growing injustice on homeowners.”

The new law should eradicate the problem of homeowners fighting long and expensive legal battles to claim back their own property in the future. A fact welcomed by several leading landlord organisations, however, they warned property owners that the threat from squatters would not disappear overnight and encouraged people who may be vulnerable to try and avoid leaving their properties empty whenever possible.

Tags: landlord insurance, Legal Update, squatters, Squatting
Posted in landlord insurance | No Comments »

Energy Efficiency Opportunities Missed in the Private Housing Sector

May 9th, 2012

A new survey of Scottish properties shows that one in three tenants is not requesting energy efficiency improvements from their landlord because they believe that neither investment nor improvements will be made. Tenants are losing out on at least £400 each year in savings by not getting upgrades despite two thirds wanting the changes.

According to the survey most property investors are keen to improve the quality of the homes they protect with landlord insurance quotes and want to see more direction from the Scottish Government. The survey of 1,000 people in Scotland, found 59% believe it is their landlord’s responsibility to ensure a tenanted property is energy efficient, compared to 41% who thought it was up to the tenant. One of the problems is that a tenant may not see the home as his long term abode and is reluctant to spend his own money or his landlords on improvements that will only benefit him short term.

David Bird, customer operations director at E.ON, said: “What’s clear is that there’s some confusion surrounding energy efficiency and who the responsibility should lay with in making rental property energy fit. We’d urge both renters and landlords to think seriously about making improvements to their properties. In some cases, renters can be eligible for free cavity wall and loft insulation, and costs for installation can often be much cheaper than you’d think, so always speak to your energy provider to make sure you’re aware of all the offers available.”

The survey reports a significant amount of interest in putting in solar panels and landlords are also hopeful for another boiler-scrapage scheme in the future. The Scottish Government said they have been offering a number of ways to make homes more energy efficient, including £4.7 million for the boiler scrappage scheme, £500,000 in vouchers to private landlords, and the home insulation scheme that was run by local authorities. The survey was based on a 1940s three bed semi, with a ten-year-old gas boiler, but E.ON were quick to acknowledge that there would be a considerable variation throughout Scotland.

Tags: E.ON, Energy Efficiency, Landlord Insurance Quotes, Scottish Government
Posted in landlord insurance | No Comments »

Buy-to-Let Landlords Advised to be Realistic about Rent

May 8th, 2012

Industry insiders are confident that the United Kingdom residential property rental market will remain strong for the rest of this year despite a weak economy. However, landlords are being urged by experts to retain a realistic approach to rent increases. There is no doubt that if potential investors seek the right advice, the returns on a property protected with cheap landlord insurance can be extremely lucrative.

A report issued by Belvoir Letting Agency predicts rents will rise moderately and remain more or less in line with both inflation and salary increases for the rest of 2012. Rental fluctuation will be very regional with some areas such as the South East seeing a higher increase as rental prices force tenants out of the capital and into the Home Counties. The current housing crisis is clearly making everyone nervous and Belvoir believe this is affecting the buy to let and mortgage market. Their research shows that tenants are now staying longer in a property and a modest rental increase will give tenants the impression that without very good reason it makes no financial sense for them to move to a different type of property. Although in recent weeks there have been reports that housing sales have increased, the report asserts the current double dip recession will have a negative impact on this. This will then produce a market that is ripe for opportunist landlords who are able to secure a property that represents real value for money.

Belvoir offices are reporting increased activity from buy to let landlords and Dorian Gonsalves, their Chief Executive, said: “Our franchise owners continue to report increased tenant demand. However unlike reports in the national press, any rental increases are likely to be modest and occurring only in pockets of the UK, with some areas experiencing no increase at all. There is a shift towards more people renting as a preferred lifestyle choice rather than from necessity. People who rent can plan their spending more accurately and have flexibility to follow job offers etc. This is becoming increasingly important in the current financial climate.”

Tags: buy to let, Buy to let landlord’s, cheap landlord insurance, Rental Market
Posted in landlord insurance | No Comments »

Tenants Prefer the Personal Touch

May 4th, 2012

A survey conducted by a leading online letting agency will provide food for thought for many property investors with an interest in landlord insurance.

The survey suggests private landlords should conduct preliminary viewings of their properties with tenants themselves rather than leave it to agents. Online letting experts Upad questioned almost 400 tenants in private accommodation across the UK and found the assumption that tenants preferred to view their potential new home with a professional agent totally wrong. The survey revealed only 15% actively preferred an agent to a landlord while 53% stated a preference for the landlord.

It has long been thought that agents handled viewings better than landlords but the survey does suggest landlords looking for full occupancy in their portfolio may be better off finding time to conduct viewings personally.

James Davis, speaking for Upad, said “From our research, it appears that honesty and obtaining direct answers is of the utmost importance to potential tenants so it makes perfect sense for landlords to self-manage and hold viewings themselves. Landlords who are not doing this are simply missing out. The data speaks for itself and it’s important that UK landlords listen to what tenants want. By cutting out the middle man and dealing directly with tenants, landlords have full control, enabling them to build trust and secure long-lasting relationships with their tenants.”

Feedback from a number of tenants certainly suggests this to be the case with one saying: “Agents are probably more objective about the property they are showing but it is the landlord’s property and therefore he or she is more likely to know the finer details about the house rather than the agent who is simply there to do a job.” Another asserted: “I don’t believe agents are always truthful and because agents only care about the money I believe landlords are better – they actually care about keeping good tenants.”

Tags: House Viewings, Letting agents, private landlords, tenants, Upad
Posted in Rental Market, tenants | No Comments »

Landlords Urged to Buy Correct Level of Insurance Cover

May 3rd, 2012

Accidental landlords and first time entrants into the property rental market are being warned about the dangers of not having the correct type of property insurance.

The warning comes after the continued financial downturn sees many people reluctantly become landlords when they can no longer afford to live in their own home and can’t manage to sell it. David Lawrenson works for a leading online letting agent and says many people coming into the rental sector look to keep their overheads to a minimum and don’t think long enough about the insurance they require. He said: “A general property insurance policy simply does not cut the mustard. It doesn’t cover all of the risks that would apply when you’re letting out a property. It is important to make sure that landlords have the correct level of cover. In most cases buy-to-let insurance is not much more expensive anyway.”

Of course the fact of the matter is that in many cases having the wrong type of insurance or not buying enough cover of the correct type of insurance is a complete waste of money. The homeowner will find that the insurance policy will be invalid and will be unable to claim at all. Proposed changes to the rules and regulations governing the private housing sector have been discussed in the last few days by Communities Minister Grant Shapps which would impose even more regulation on landlords. However, landlord organisations see this as a good thing as it may make the sector take a more professional outlook. Regulations concerning fire and other health and safety issues may be tightened and in return the obligations on tenants to respect a landlord’s property ensconced in law. In the meantime landlords across the UK must ensure they not only have the correct type of insurance to protect themselves and their business but also their tenant.

Tags: accidental landlords, Insurance Cover, letting
Posted in Advice, Property Insurance, Property Market | No Comments »

Dudley to Get New Council Housing Thanks to HCA Money

May 2nd, 2012

More affordable houses are coming to the West Midlands town of Dudley as approval for the first new council homes in two decades was given after Dudley Council was awarded £4million from the Coalition Government’s Home and Communities Agency (HCA).

Developers will build eighty new homes throughout the borough and the HCA are delighted to be supporting the local council with the investment to deliver new homes. The much needed homes will be of a high quality and cater for a range of different housing needs including supporting people with learning disabilities. The major projects for these new build council homes look set for completion towards the end of 2013 but some are expected to be finished in spring next year.

Dudley Councillor for housing, Adrian Turner said: “We are aiming to try and bring in as much affordable housing to the area as there has ever been for almost 100 years. We are continually developing sites, and so we will be eventually looking to replace every house. We are also looking to improve the state of homes for the elderly by installing more energy efficient systems that will help to keep temperatures warmer through winter months and keep fuel costs down. We are also working with private companies and investors to keep these improvements at a low cost, so people will not have to pay as much as they would have done, if we had gone commercially.”

Affordable housing is a problem for anyone looking to buy or rent a home, and the council hopes the scheme will dramatically reduce the housing waiting list in the Borough. The spending cuts imposed by Central Government on local authorities means that homes typically covered with landlord insurance by buy-to-let investors will have to take up some of the slack. However, the council has big plans for the regeneration of the borough. It seems Dudley’s efforts will be a welcome solution to the UK’s housing shortages, and should set the standard for other areas to follow.

Tags: Affordable homes, Dudley council, Home and Communities Agency, New homes
Posted in Council Houses, landlord insurance | No Comments »