News

Calls for more landlords to accept tenants with pets

February 22nd, 2012

Animal shelters who are struggling to cope with the increased number of animals are pleading with landlords to be more relaxed with their rules in a bid to combat the growing numbers of unwanted pets.

Jane Shepherd and her group of volunteers have run The Algernon Animal Trust in Whittlebury for over a decade, and they are currently running at double capacity. Unfortunately she expects her intake to increase again this year. Ms Shepherd is calling on all private landlords to help pet owners who are suffering in the current economic climate.

Jane said: “One of the problems people face is having to leave their homes and not being allowed to take beloved pets into rented accommodation. Landlords need to rethink their restrictive policies to avoid splitting families up and creating more strays. I’ve dealt with people who have told me they’ve offered extra money or a larger deposit.”

Landlords who exclude pet owners from their properties are missing out on a large number of possible tenants as 46% of the population have some form of pet. If landlords adopt a more pet-friendly approach they can easily increase demand for their property and have a better chance of attracting long-term, responsible tenants. Property owners do appear to be more relaxed about pets now and a recent survey by the Dogs Trust revealed that landlords are becoming more inclined to accept pets than many letting agencies realise. Many are now not just taking out buy to let property insurance but also adding a pet clause to tenancy agreements. This type of clause can easily be incorporate into the tenancy agreement and on signing this, the tenant pays a deposit to cover any damage caused by their pet to the property or furnishings during the term of the tenancy.

Tags: landlords, Pet animals, property insurance, Tenants with pets
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Students Becoming More Discerning When Looking For Rental Properties

February 21st, 2012

Landlords looking to expand their portfolios by buying properties to rent out to students have been told to carefully consider where and what they buy.

Research shows that many property investors are looking to buy property insurance on buildings that are ideal to rent out to students. Although the recent hike in student university fees has dissuaded some not to study for a degree, letting agents across the UK report massive demand from students looking to find decent housing for their years away from home.

The research also shows that students are becoming more conscious about the accommodation they require, with geographical position and IT access becoming the most important prerequisites when they start a search. It is thought the massive hikes in the cost of motoring has meant that many families can no longer afford to buy a car for their offspring when they go to university and so renting a home close to their seat of learning is now much more important for the average student. They also look for a property that is close to bus and rail links with another key element being high speed internet access.

Peter Mindenhall, who did part of the research, advised landlords to look before they leap, saying: “Most students want to be situated close to campus and have good internet access. Other factors to consider are security and transport links, both of which are typically vital to students and will result in a home being more appealing to potential tenants. If all of these can be provided by a student development near a university that does not have many other purpose built properties and it represents better value for money, (then) demand will be higher.”

The research also showed that landlords letting homes to students were now routinely taking out income protection as part of their landlord insurance as their tenants struggle more and more with their increased fees.

Tags: landlord insurance, property insurance, student accommodation, student lets
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Developer predicts bumper year for property investors

February 20th, 2012

Miller Homes East Midlands has forecast that this year will be the year of the investor. The builder has a portfolio of developments throughout the region and they expect another buy-to-let boom as rental values in most of the East Midlands are at an historic high.

Recent research seems to back up Miller Homes’ confidence in the market as the findings suggest that almost a quarter of landlords expect to buy additional properties and protect it with cheap landlord insurance sometime this year, while just 8% are considering reducing their portfolio. First time buyers in 2012 are facing difficult challenges and many believe they face the prospect of years of saving up for a deposit. Builders including Miller Homes along with the coalition are working hard to make home ownership easier to achieve with schemes such as FirstBuy, but there is still a widespread perception that owning a home is not achievable and as a result, many are turning to renting as the only long-term solution.

Paul Walters, regional sales manager for Miller Homes East Midlands, said “According to recent data from the LSL Property Services Buy-to-Let Index, the average rent in England and Wales has never been higher. Demand for quality rental properties is continuing to soar and anecdotal evidence suggests there is fierce competition among tenants to secure a home – particularly in prime locations. We have begun to see a marked increase in the number of landlords looking to capitalise on the current situation and we expect this upward trend to continue throughout 2012.”

The United Kingdom is experiencing the worst housing shortage since the Second World War which means conditions are looking favourable for savvy investors. Landlords are also deciding to buy more three-bedroom houses than before as the rent they can charge will bring them high rewards. With low returns on savings and record low interest rates, buying a property looks an increasingly attractive investment proposition for landlords.

Tags: cheap landlord insurance, landlord insurance, property insurance
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Council Hands Over Keys to Brand New Houses

February 17th, 2012

A small group of delighted families have been handed the keys to their new homes in Denaby, the first Doncaster Council homes to be built for over two decades. The eight properties are the first phase of a £3 million development, which when finished will see twenty-four new homes built.

The remaining sixteen homes will be released by the council in two further phases by the end of next month. This is excellent news for Doncaster families who are desperate for a home and who have been on the waiting list for some time. The new homes are vastly different to other council properties in the town and the modern, space saving homes will help the council get to grips with the underlying demand for housing throughout Doncaster. The council hope to commission even more new homes and they have already drawn up plans for another £20 million scheme for next year.

The homes were commissioned by the council and funded jointly by Doncaster Metropolitan Borough Council (DMBC) and the Homes and Communities Agency. The council have also spent time looking at landlord and property insurance quotes to get the best deal possible for their current and new homes. These new houses are helping to regenerate Doncaster and they are exceptionally good news for families who will be awarded the newly built homes.

The first tenants to step over the threshold at the Hesley Court development were Robyn Johnson and husband Andrew, together with their children Coby and Bobbie. Mayor Peter Davies and Councillor for housing Ray Mullis handed over the keys to the happy family.

Robyn said: “The house is gorgeous. We are really pleased to live here. I was over the moon when I found out we had successfully got one of these new houses. It’s nice to have some extra space as I’ve moved from a two bedroomed home to a three bedroomed one. It means the children can have their own room and we are all looking forward to living in this house for a very long time.”

Tags: Doncaster, Doncaster Council, property insurance, Property insurance quotes
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Council Backs Away From Accreditation Scheme

February 16th, 2012

Landlords in a town in East Staffordshire have expressed disappointment that the local council have ignored an opportunity to work with local landlords and are instead to instigate a name and shame scheme.

In the last 12 months East Staffordshire Council have investigated a number of landlord voluntary accreditation schemes in the town of Burton-upon-Trent, but in the end have decided that tenants would be better off without them. Similar schemes to the ones turned down by the council have been introduced in towns all over the UK in the last year, with tenants, councils and landlords all expressing satisfaction with them. Typically the schemes will involve the landlord ensuring that his properties are maintained to an agreed standard, that he has up to date property insurance and that the property complies with all health and safety regulations. Tenants agree to treat the properties with respect and desist from any anti-social behaviour. The council works as an intermediary between the two ensuring the contract is kept.

Explaining their decision to ignore accreditation schemes Councillor David Leese said: “We have looked at six landlord accreditation schemes and all had fundamental disadvantages. Instead we shall beef up our own enforcement scheme. We are in an economic downturn and people can fall through the net into this underworld. We need to be the ones that protect those vulnerable people. We have the teeth already, they are ours to use. This is the one that will do the job. The council will publish the names of dodgy landlords and agents of properties found to have hazards in their homes – subject to legal advice.”

Local landlord Tim Jones expressed sadness that the council had taken this approach saying: “Of course bad landlords should be exposed, they damage our profession, but accreditation schemes have worked well in many places and resulted in improved conditions and better relations between landlord and tenant.”

Tags: East Staffordshire Council, landlords, Property Accreditation Scheme, property insurance
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Housing shortage in Winchester becoming ever more acute

February 15th, 2012

The audience at a meeting brought about to help the homeless in a Hampshire town, heard that the number of affordable homes being built in Winchester has fallen by two thirds, while the number of people going onto the waiting list for a home has soared by a huge 70% since 2010 and is now at around 4,400 applicants.

The figures are made worse by a spectacular rise in private sector rents and council bosses are under increasing pressure to try and keep a roof over everyone’s head. For the first time in a decade, Winchester City Council now has to place homeless families in bed and breakfast accommodation. In January they did this with five families and in the first two weeks of February they have had another four homeless families asking for help. This is in part due to private sector rents in Winchester going up by 8% each year. Despite a two-bedroom flat now costing £900 each month, demand is still outstripping supply and some estate agents have their own waiting list for those looking for somewhere to rent.

These details came to light at a homelessness meeting which was run by the Winchester Churches Nightshelter. Almost one-hundred people attended the meeting that had guest speakers including Andrew Palme who is the council’s head of strategic housing. He spoke about how it was becoming very difficult to find homes for families in need. The consequences of the recession in 2008 have just caught up with many people in the last six-months. The council are building fewer homes in the district with the last twelve months seeing only fifty homes completed and protected with property insurance. It has been private landlords rather than the council who have tried to meet the towns housing needs.

Steve Cavalier, who offers counselling at the night shelter, said: “People don’t come here, they end up here. Any of us could be in a position where we end up here, not through choice but through circumstances. We are seeing more and more people becoming homeless after losing their jobs and being unable to pay their mortgage or rent. At the night shelter we only have seventeen places, last year we provided shelter to around 140 guests but we had to turn a further four-hundred away. We hope the council can build some new houses as this will help with the problem.”

Tags: Hampshire, property insurance, Winchester
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Landlord Warns of Empty Tenancies as Benefit Cuts hit the Under 35s

February 14th, 2012

A professional landlord from the North East is warning that many tenants will be evicted by their landlords now that cuts in the Housing Benefit scheme have been introduced.

Kevin Wilmot owns approximately 200 properties in the town of Hartlepool and says many of his tenants are being affected by the new benefit cap which sees single people under the age of 35 receiving just £55 a week. He says landlords too will suffer as they find more and more tenants slip into arrears with their rent.

Kevin said: “It’s like we’re going back to the Victorian times. I don’t know where they think people are going to live on £55 a week. It’s ridiculous. How are landlords supposed to pay mortgages and maintain houses to a good standard on £55 a week? Of course you can get property insurance that covers you for arrears and non payment but that is not the answer to this problem.”

He went on to add: “I’m fortunate because I have another business, but other landlords are going to start going bankrupt while tenants are going to be homeless. Where on earth are all these people going to go? The Government can’t keep hitting the poor. Homes will end up going back to squalor.”

He then went on to say that five of his tenants will have to be evicted because they can no longer afford the rent and warns that he, like other landlords, will now have to think twice before taking on a tenant who is under 35 and single. However, a spokesman for the Department of Work and Pensions said the changes have been brought about to encourage people on benefits to go out and get work. He added the country could no longer afford to pay the spiralling cost of housing benefit to the unemployed renting in the private sector.

Tags: landlords, letting, property insurance, Renting Market, social landlords
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Private Landlords Enjoying the Current Buy-to-Let Boom

February 13th, 2012

The number of buy-to-let properties increased by a huge 84,000 during 2011, the CML (Council of Mortgage Lenders) has revealed. This now means that buy-to-let mortgages account for almost 13% of the total outstanding value of home loans in the United Kingdom.

Low interest rates are wiping out almost all income from savings but this does make mortgage repayments cheap and the buy-to-let property boom is being boosted by rents that are close to an all-time high throughout the UK. This could prove to be an easy money-spinner for both the amateur and the professional landlord. The average rent in the UK is now £711 each month, with tenants in the capital forced to pay an average of £1,000 meaning most landlords are enjoying a very profitable period. The current situation whereby landlords can get great deals on property and property insurance, and then rake in high rents is the perfect scenario for any property investor.

According to the Council of Mortgage Lenders when the buy-to-let market was in its youth in 2001, landlords on average obtained £185,000 worth of loans to invest in rental properties. Today that figure jumps to 1.4 million in loans, worth about £160 billion. The buy-to-let market is still a highly controversial subject as critics blame it for forcing up deposit requirements to levels which mean many first-time buyers cannot afford to get onto the property ladder. The number of buy-to-let loans has increased while the number of mortgages to first-time buyers has reached record lows.

Nick Dunning, Commercial Director at Countrywide Estate Agents, said: “With a record number of tenants entering the private rental sector, there is a vast shortage of properties available in all areas of the UK, which could potentially fuel a steady rise in rent prices throughout 2012. Rents are currently between 10% and 20% higher than in 2006 with yields of 8% readily available. A shortage of property in the capital and other major cities such as Manchester, Liverpool and Leeds will continue to drive up rents, with supply unlikely to ever meet demand. This will continue to underpin the buy-to-let market in the coming years.”

During the past ten years the number of young people getting on the property ladder has fallen from about 500,000 per year to 200,000. Last year about 275,000 people registered their interest in private rental accommodation with Countrywide Estate Agents which is up almost 24% on 2010.

Tags: buy to let, Buy to let landlord’s, Buy to let market, property insurance, Property Market
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Social Landlord wants to Add Five more Trainees to their Growing Team

February 10th, 2012

To coincide with National Apprenticeship Week, one of Bradford’s largest social landlords, Incommunities, has started a recruitment drive to try and find five talented apprentices. The housing group will also be actively involved in both local and national events. And are already recognised as one of the country’s more innovative employers.

Incommunities are looking for trainees to work in their electrical, gas, plumbing and joinery sections and they welcome anyone aged sixteen and over and who is looking to build a successful career with the company. The recruitment process will include tests and interviews to check for suitability, with the successful candidates starting with the company in six months time. Incommunities will give the lucky five a structured training programme which will combine college based learning with on the job training working alongside experienced trades people. At the end of the college based learning they will receive NVQ construction qualifications in their chosen trade.

Delroy Beverley, Director of the housing group, said: “We are committed to investing in a diverse and highly skilled workforce and we are encouraging everyone from school leavers to people looking to take a new career path. We are particularly keen to hear from people from across all communities looking to build life changing careers. In return we offer a rewarding training programme which leads to a minimum NVQ level 3 trade qualification.”

Incommunities provide affordable, high quality homes for rent in neighbourhoods throughout the Bradford District. They currently manage more than 25,000 which are all covered by landlord insurance and they offer a variety of housing options to suit all tenants. They also regularly employ apprentices and in June 2011 they were recognised in the Top 100 list of Apprenticeship Employers in the United Kingdom. Six apprentices started working with the housing group in September 2011 and at the end of the training period they will join the team who are responsible for keeping the structure and exterior of the homes in good repair, helping to maintain heating, sanitation and service installations.

Tags: Housing Group, Incommunities, landlord insurance, National Apprenticeship Week, social landlords
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Property Investor brings Life back to Hampshire High Street

February 9th, 2012

A local landlord has launched a one man campaign to bring back life to a high street in his home town by buying up units and renting them out.

Mark Smith has revitalised Leigh Park in Havant by buying 10 units in the local high street. The main artery of the town had been run down for years, as is the case with many high streets across the UK, however, Mr Smith is having remarkable success in resurrecting Leigh Park. He has steadily purchased properties, and buildings and property insurance, and each time he has found a tenant to make the business pay. At the moment he has business tenants in seven of the ten shops and will shortly see the other three open for business in the hands of new tenants.

Mr Smith revealed the secret of his success was buying at low prices and installing tenants at low rents, he explained: “I purchased them at reasonable prices and I’m able to offer them at about half the price that existing landlords are offering. Landlords need to adapt. Shopkeepers need to adapt. They need to be flexible in their approach. It’s very straightforward really. The local community is very large. We are the second largest housing estate in Europe and I know the communities here. The council has spent a lot of money on infrastructure. If we fill the shops up then people will come.”

Life in the Hampshire town is certainly livelier now and the landlord’s determination to bring the town back to life is certainly bucking a national trend. However, Mr Smith warned that unless the community supported local shops then the businesses would fail in the long run. He and his tenants have provided the public with shops that are needed, they must now play their part and use them.

Tags: buildings and property insurance, Hampshire, Hampshire High Street, Havant, Leigh Park, property insurance
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